COM 0021.000 1996-1998 - Laserfiche WebLink

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CURRENT YEAR'S OBSERVATIONS AND RECOMMENDATIONS A. SEWER ACCOUNTS RECEIVABLES Observation: Collection of past due sewer accounts should be improved. Background: The following table summarizes past due sewer accounts receivable for the past four yeazs: 1988 X 1988 % 1994 % 190.9 % Bimonthly accounts $145,049 26% $154,151 31% $113,526 30% $ 86,911 33% Monthly accounts 56,635 10% 55,708 11% 79,672 2146 48,605 19% Collection status (over siz months past due) 351,718 64% 287,928 584'0 180,824 4946 125,895 48'?0 $ 553,402 100% $ 497,787 100% $ 374,022 100% $ 261,411 100% As illustrated above, collection status accounts have grown over the past four yeazs. The June 30, 1996 past due accounts represent about 20~ of fiscal 1996 sewer fund revenue of $2,723,000. A summary aging of the past due accounts at June 30, 1996 follows: Monthly Bimonthly Collactlon Status Totsl Over 30 days $ 43,062 $ 43,062 Over 60 days 8,482 $ 45,670 54,152 Over 90 days 4,609 4,609 Over 120 days 17,125 17,125 Over 180 days 80,810 $ 351,718 432,528 Penalties 482 1,444 1,926 Total $ 56,635 $145,049 $ 351,718 $ 553,402 Commercial accounts aze billed monthly and residential accounts are billed bimonthly. After three billing cycles (90 days for monthly accounts and 180 days for bimonthly accounts), past due accounts aze referred to either Corporation Counsel (balances exceeding $200) or an outside collection agency (balances less than $200). Such referred accounts aze called collection status accounts. This observation and recommendation has been repeated from last year. The Division has made little progress from last yeaz because of Division personnel turnover. The Division recently requested proposals to contract for collection services, however, proposal responses have not yet been received and/or evaluated. Also, the Division and the Corporation Counsel have begun to schedule meetings with lazger past due accounts. Recommendation: Pursue collection of past due sewer accounts, evaluate the effectiveness of collection procedures, and write off uncollectible balances. -3-