title
Resolution to Adjust Accounts Receivable for Uncollectible Accounts
body
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Department: |
Finance |
Meeting Date: |
6/16/2026 |
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Contact Name: |
Martha Wayne |
Public Hearing: |
No |
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Contact Phone: |
910-341-4692 |
Advertising Date/Advertised By: |
N/A |
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Attachments: |
Attachment #1: Resolution; Attachment #2: CFPUA Write-Off List |
PURPOSE:
The purpose of this resolution is to adjust accounts receivable for uncollectible Stormwater and Recycling & 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 Cape Fear Public Utility Authority (“CFPUA”) has identified numerous delinquent utility accounts as uncollectible and, as such, has adjusted the accounts off as uncollectible. There are 837 accounts identified as uncollectible, totaling $125,370, 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. Designating accounts 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 a 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 FY26.
RECOMMENDATION / ACTION REQUESTED:
Passage of the attached resolution is recommended.