HomeMy WebLinkAboutRES 99-388 RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Council hereby approves the adoption of the write-off policy for delinquent
accounts substantially in the form attached hereto as Exhibit "A"
PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of
G��✓l�r, �' , 1999.
- Mayor -
City of Beaumont
Policies and Procedures Manual
Policy Number:
Subject: The Write-off of Delinquent Accounts
Effective Date:
I. POLICY:
It is the policy of the City of Beaumont to write-off delinquent accounts after collection
efforts have been exhausted and the account is considered either uncollectible or the amount
owed is too small to warrant further collection efforts.
II. PURPOSE:
The purpose of the policy is to establish uniform guidelines for writing off uncollectible
accounts for all City receivables that will be consistent and fair.
III. PROCEDURES:
A. Age of Account. When sufficient efforts have been made with no response to the
demands for payment and further pursuit would be unproductive,individual accounts
that are one year old shall be written off.
B. Reactivation of Accounts. If an account becomes collectible after having been
written-off, the receivables of the City shall be adjusted accordingly. The balance
of the account that is legally collectible shall be reinstated and payments shall be
applied to that balance.
C. Purging of Records. The physical records and computer database records shall be
purged according to the City's record retention procedures.
IV. RESPONSIBILITIES:
A. Treasurer's Office
1. Shall have authority to write off accounts when the following circumstances
become evident. The one year rule shall not apply unless otherwise
indicated:
a. Discharged Bankruptcy-an account that has been discharged through
bankruptcy court.
EXHIBIT "A"
b. Deceased - the customer is deceased with no estate.
C. Court Refuses Judgement - the debt could not be substantiated in
court.
d. Medicare Unallowable Charges - the difference between the billed
amount and the amount allowed by Medicare.
e. Medicaid Unallowable Charges - the difference between the billed
amount and the amount allowed by Medicaid or any amounts that are
not collectible from customers who are eligible for Medicaid.
f. Small Business Loans - when uncollectible accounts have been
approved for write-off by the Small Business Loan Committee
according to the loan guidelines.
g. Amount Does Not Warrant Further Effort - when sufficient efforts
have been made with no response to the demands for payment and
further pursuit would not be cost effective:
(1) Balances of$20 or less for an individual account shall be
written off.
(2) Individual accounts which are one year old and have balances
which exceed $20 shall be submitted to the Finance Officer
for approval to be written off.
B. Finance Officer
1. Shall have authority to approve the write-off of any individual account
receivable,other than those involving legal actions,identified as uncollectible
when the balance does not exceed $500.
2. Shall submit recommendations for write-offs to the City Manager for his
approval, when the balance exceeds $500 for an individual account.
C. City Attorney
1. Shall have authority to settle or dismiss any account involving legal actions
when the balance does not exceed $500 for an individual account.
2. Shall submit recommendations to settle or dismiss any individual account
involving legal actions to the City Manager for his approval when balances
exceed$500.
D. City Manager
1. Shall have authority to approve the write-off or settlement of any individual
account receivable identified as uncollectible when the balance does not
exceed $1,000.
2. Shall submit recommendations for write-off or settlement to the City
Council,through the Finance Officer and the City Attorney,when the balance
exceeds $1,000 for an individual account.
E. City Council
1. Retains the final authority to allow write-off or settlement of any individual
account receivable identified as uncollectible when the balance due exceeds
$1,000.