title
Resolution to Adjust Accounts Receivable for Uncollectible Accounts
body
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Department: |
Finance |
Meeting Date: |
6/17/2025 |
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Contact Name: |
Michael Pirsch |
Public Hearing: |
No |
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Contact Phone: |
910-342-2771 |
Advertising Date/Advertised By: |
N/A |
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Attachments: |
Attachment #1: Resolution; Attachment #2: List of Outstanding Miscellaneous Accounts Receivable; Attachment #3: CFPUA Write-Off List |
PURPOSE:
The purpose of this resolution is to adjust accounts receivable for uncollectible Code Enforcement accounts, Fire and Life Safety accounts, Police accounts, Retiree Insurance accounts, Payroll accounts, and Stormwater and Recycling and Trash Services accounts. The adjustment is in accordance with generally accepted accounting principles to accurately reflect accounts receivable balances that have reasonable assurance of collection.
BACKGROUND:
The City Attorney’s office reviewed a list of uncollectible accounts prepared by the
Collections Division. These 375 accounts include Fire and Life Safety, Code Enforcement, Police, Retiree Insurance, Payroll, and Trash Services accounts totaling $126,711. These accounts exceeded the applicable statute of limitations and were determined uncollectible.
The Cape Fear Public Utility Authority has identified numerous delinquent utility accounts as uncollectible, and as such, have adjusted the accounts off as uncollectible. The accounts identified as uncollectible include 868 totaling $152,425 that have solid waste and/or storm water services provided by the City. The totals were adjusted by year of the last activity on the accounts or by bankruptcy.
The City's revenue staff has reviewed the list of Stormwater and Solid Waste accounts, and concurs that the accounts should be adjusted. Adjusting the accounts off as uncollectible does not constitute forgiveness of the debt. The intent is to adjust the City's financial records to accurately reflect accounts receivable balances that have reasonable assurance of collection. The individual accounts to be adjusted are itemized in the attachments to this agenda item.
BUDGET IMPACT:
There is no impact on either the revenue or expenditure budget for FY25.
RECOMMENDATION / ACTION REQUESTED:
Passage of the attached resolution is recommended.