January 07, 2025
Finance Department
DATE: January 7, 2025
TO: Mayor Martinez and Members of the City Council
FROM: Andrea Miller, Director of Finance
Dave Aleshire, City Attorney
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
Subject: Approval of Write-Off of Uncollectible Accounts Receivables
FINANCIAL IMPACT: Expense of $376,246.42 in FY2024-25 of which $290,524.29 is General Fund
PREVIOUS COUNCIL
ACTION:
November 19, 2019
STATEMENT OF THE
ISSUE:
City staff is requesting City Council to approve the write- off of delinquent and/or uncollectible accounts as per the City’s established policy for reviewing accounts
receivable, assessing their collectability, and writing off accounts for which the likelihood of collection is remote. (Administrative Manual—Policy Statement AP 251)
RECOMMENDED ACTION: ADOPT a resolution authorizing the write-off of delinquent and/or uncollectible accounts receivable in the amount of $376,246.42 – Finance Department (Andrea
Miller 510-620-6790/Mubeen Qader 510-412-
2077/Antonio Banuelos 510-620-6741).
AGENDA
REPORT
January 07, 2025
DISCUSSION:
The Finance Department undertakes extensive collection efforts prior to determining accounts to be deemed uncollectable. Amounts written off are still due to the City of Richmond and will be forwarded to the City’s collection agency.
The Finance Department has a duty to comply with federal regulations and Generally Accepted Accounting Principles (GAAP) ensuring that our City’s assets are presented accurately. The Administrative Manual - Policy Statement AP251 provides guidance for assuring that accounts receivable are not misstated, that delinquent accounts receivable are identified, and that the delinquent accounts are removed from (written off) the books of the City as appropriate. The approval by City Council is pursuant to this policy.
All reasonable collection efforts have been exhausted, and the passage of 90 days has deemed the accounts uncollectible. However, it is important to note that some of these accounts may still eventually be paid to the City. By approving the proposed write-off, the following items can be removed from the City’s financial system. The write-off includes:
GENERAL BILLING INVOICES
$4,598.82 is due for Police Department services.
$300.00 are legal fees due to the General Fund. Original settlement amount of $2,400.00 has not been paid back in full.
$300.00 is due to the General Fund, for July 2020-July 2021 for rent services.
RETURNED CHECKS
$488.00 is due to the Encroachment Fund.
$500.00 is due to the Engineering Fund.
$285,325.47 is due for the General Fund.
$7,478.62 is due to the Marina Bay Landscape & Lighting District Fund. $19,217.97 is due to the Planning & Building Fund. Note that this amount is only for checks returned by the bank and separate from amounts not paid listed below.
$7,170.80 is due to the Rent Control Fund.
$210.00 is due to the Transportation Operations Fund.
BUILDING & PLANNING
$16,602.08 is due for delinquent Planning fees.
$34,054.66 is due for delinquent Building fees.
January 07, 2025
The Administrative Manual - Policy Statement AP251 provides guidance for accounts over 90 days delinquent that are less than or equal to $100.00 and considered to be uncollectible. The Director of Finance shall provide notice to the City Council the total sum of the accounts to be written off, which is $10,866.67.
NEXT STEPS:
Most customers with invoices listed in the attachments have been notified in multiple attempts to collect, with no response. Items will be written off and forwarded to the City’s collection agency after City Council approval.
DOCUMENTS ATTACHED:
Attachment 1 – Outstanding Accounts Receivable by Account and Fund Attachment 2 – Outstanding Accounts Receivable by Year and Fund Attachment 3 – Resolution