RES-9256 Establishing Policy for Write Off of Uncollectable AccountsRESOLUTION NO. 9256
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE ESTABLISHING A POLICY
FOR THE WRITE OFF OF UNCOLLECTIBLE
ACCOUNTS.
WHEREAS, the City accrues thousands of account receivables during each fiscal year;
and
WHEREAS, sometimes the City is required to undertake collection efforts through
various means in order to collect these accounts; and
WHEREAS, sometimes these efforts prove unsuccessful either because the debtor
cannot be located, is bankrupt or because the cost of collection efforts greatly exceeds the debt
amount; and
WHEREAS, each fiscal year the City writes off these uncollectible accounts in
accordance with standard accounting practices so as to not overstate its account receivables and
to eliminate the annual cost of screening and maintaining records of these uncollectible
accounts; and
WHEREAS, current City policy permits the Finance Director to write off accounts with
a balance ofless than $75.00, while any write offs exceeding that amount must be approved by
the: City Council; and
WHEREAS, the proposed policy would delegate write off authority to the Finance
Director and City Manager in amounts consistent with their authority to settle claims and
approve contracts and purchases.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange
as follows:
Section I:
Upon a finding by the Finance Director and the City Attorney that all reasonable efforts
to collect amounts owed the City on an account have been exhausted, the Finance Director is
authorized to write off accounts receivable subject to the following additional approvals.
rite offs of accounts $2,000 and less must be approved by the Finance Director.
Write offs of accounts between $2,001 and $30,000 must be approved by the City Manager.
Write offs of accounts over $30,000 must be approved by the City Council.
Sedion II:
Write-off authorization shall be determined by aggregating accounts belonging to
the same person or entity for each fiscal year. In no event shall the Finance Director or
City M:mager be authorized to approve write-offs attributable to any person or entity
which when aggregated for any fiscal year would exceed the amount authorized in Section
I above.Accounts shall be aggregated in accordance with the fiscal year in which the write
off occurs.ADOPTED this 13th day of
June,
2000.
ATTEST:c~Cassandra
J.
Cathc City Clerk of the City of
Onmge I hereby certifY that the foregoing Resolution was duly and regularly adopted by
the City Council of the City of Orange at a regular meeting thereof held on the 13th day of
June,2000, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:COUNCIL MEMBERS: MURPHY, SLATER, COONTZ, SPURGEON,
ALVAREZ COUNCIL MEMBERS:
NONE COUNCIL MEMBERS:
NONE COUNCIL MEMBERS:
NONE Cassandra J.
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