Executive/Council Action Form (ECAF)
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Motion 22-408, removing certain uncollectible accounts from the County's accounting records
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DEPARTMENT: Finance
ORIGINATOR: Teresa Levine
EXECUTIVE RECOMMENDATION: Approved by Ken Klein 09/23/22
PURPOSE: To authorize removal from the financial system of certain accounts receivable deemed uncollectible due to bankruptcy, death, statute of limitations, etc in order to more accurately reflect receivable balances on the financial statements.
BACKGROUND: The County has retained a collection agency to pursue the collection of delinquent accounts receivable. The majority of the listed accounts have previously been pursued through this process. Accounts may be deemed uncollectible for reasons such as bankruptcy, death, statute of limitations of six years per RCW 4.16.040, or for other appropriate reasons. This action does not cancel these debts. It is possible that the debts may still be collected, however, it has been determined that the likelihood of such collection is remote. For optimal performance and manageability of the accounts receivable subsystem, uncollectible accounts should be periodically removed. The majority of the listed accounts have been outstanding for over six years. There will be no further impact on fund balance because all of the listed accounts have already been recorded as bad debt. The history for 2020 and 2021 is included for informational purposes in the Attachment, but this action is to write off 2022 in the amount of $61,384.94
FISCAL IMPLICATIONS:
EXPEND: FUND, AGY, ORG, ACTY, OBJ, AU
CURRENT YR
2ND YR
1ST 6 YRS
TOTAL
REVENUE: FUND, AGY, ORG, REV, SOURCE
CURRENT YR
2ND YR
1ST 6 YRS
TOTAL
DEPARTMENT FISCAL IMPACT NOTES: There is no impact on expenses or revenues, only balance sheet accounts are affected.
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