Agenda Item Name:
Title
Removal of Uncollectible Accounts From the Financial Statements
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Presenter:
Catheia Love, 3523743605
Description:
Request the Board to adopt the resolution authorizing the removal of uncollectible accounts from the financial statements.
Recommended Action:
Recommended Action
All of the receivable accounts have allowances for doubtful accounts. The receivable accounts and correlating allowances will be written down by a total amount of $5,180,184.73. A breakdown of this amount by fund and type is provided in the following attachments: (1) by fund: Write-off Summary: (2) by type: see Exhibit A which is the last page of the attached Resolution.
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Prior Board Motions:
N/A
Fiscal Consideration:
Fiscal Consideration
The referenced write-offs are as follows:
General Fund (001) - $5,146,673.19
Hazardous Materials (178) - $33,349.30
Santa Fe Hills (235) - $162.24
Total - $5,180,184.73
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Background:
The County’s independent auditors have recommended that we remove uncollectible accounts from the general ledger on an annual basis. Each year, an estimated amount of bad debt is recorded as a reduction in the Accounts Receivable balance. We are proposing the removal of uncollectible accounts in the General Fund 001, Hazardous Material Fund 178 and Santa Fe Hills Fund 235. The net result of this action is shown in the Write-off Summary attachment.