Proposed Ordinance to Write Off Uncollectible Accounts - September 2006
Proposed Ordinance to Write Off Uncollectible Accounts
Released September 2006 Download the Full Report here Proposed city Ordinance 06-O-1363 requests a write-off of 115 uncollectible water and sewer accounts receivable, with balances of at least $10,000 each and totaling about $3.26 million. The Department of Watershed Management is planning to implement a new billing and collection system, and they have proposed writing off these accounts. The Finance/Executive Committee Chair requested that our office review the city process for writing off delinquent water and sewer accounts. |
We reviewed a sample of 25 of the 115 accounts proposed for write-off. We used a sampling technique designed to select larger accounts while still obtaining an unbiased sample.
We found the current policy used by the DWM was consistent with previous audit recommendations. All 25 accounts we reviewed for this audit met write-off criteria. Most of the accounts were to too old to collect when the city resumed operation of water and sewer services. The additional efforts required for collection on the accounts we reviewed are unlikely to be cost-effective. We found the DWM’s current collection process and timeline to be reasonable and should reduce future write-offs.
We found the current policy used by the DWM was consistent with previous audit recommendations. All 25 accounts we reviewed for this audit met write-off criteria. Most of the accounts were to too old to collect when the city resumed operation of water and sewer services. The additional efforts required for collection on the accounts we reviewed are unlikely to be cost-effective. We found the DWM’s current collection process and timeline to be reasonable and should reduce future write-offs.