HomeMy WebLinkAbout14 Consideration of Write-Off of Delinquent Accounts ReceivableMQ
TRUC EE D 11 NE
Public Utility District
ACTION
To:
Board of Directors
From:
Robert Mescher
Date:
February 20, 2013
Subject: Consideration of Write -Off of Delinquent Accounts Receivable
1. WHY THIS MATTER IS BEFORE THE BOARD
District Code, Title 3.12.020.1 authorizes the District Treasurer to write-off delinquent
account balances less than 0.17% of the annual amounts billed from the District's
accounts receivable balance. Write-off amounts in excess of 0.17% must be approved
by the Board. The proposed list of write-offs is greater than 0.17% of the year-to-date
FY12 billed accounts receivables.
2. HISTORY
Historically, the District's write-off of delinquent accounts has been very low, due to the
Board's credit and collection policies and staff's efforts to collect delinquent account
balances. The write-offs in the past four years substantially increased due the
economic downturn. 2010 marked the peak of the write-offs, and are now decreasing.
Write -Off History - Past 4 Years
2008 $ 29,276 0.09%
2009 $ 55,606 0.17%
2010 $105,856 0.31 %
2011 $ 85,524 0.25%
3. NEW INFORMATION
Attachment 1 is a proposed list of the semi-annual write-off accounts totaling $34,271
and representing 0.21 % of the amount billed for electric and water services. This list
includes unpaid accounts that closed prior to June 30, 2012 and are now at least six
months old.
The $34,271 along with the prior semi-annual write-off of $27,327 totals $61,598 for
FY12 and is 0.19% of billed sales. Of the $34,271, one fifth is commercial and the
remaining four fifths is residential.
The proposed write-off is less than the amount written off last year as a result of the
District's tightened credit policy and the economic improvement. According to a survey
in 2011, 0.33% was the average write-offs of our neighboring utilities that belong to
National California Power Agency (NCPA).
The accounts that are written off are moved to the Uncollected Accounts file within our
billing system. These accounts have also been transferred to collection services for
further collection. If customers with uncollected accounts apply for service in the
future, their prior accounts will display and unpaid balances can be collected.
4. FISCAL IMPACT
The budgeted provision for the write-off of delinquent accounts receivable for the
second half of FY12 was $68,428. The proposed write-offs total $34,271.
5. RECOMMENDATION
Review this report and approve the write-off list in the amount of $34,271 for
uncollectible accounts that closed prior to June 30, 2012.
Robert Mescher
Administrative Services Manager
Michael D. Holley
General Manager