by Diane Benjamin
The Trial Balance from 4/30/2012 has an entry to write-off Uncollectible Accounts: (Click to enlarge)
I asked for details since this entry says nothing about why over half a million dollars was deemed uncollectible.
Here’s the response I received:
In regards to item #3, the Finance Dept. has advised that they do not have detail only estimates that are based on review of detail and historical collections.
The total budget is $169,000,000. To be fair, losing $513,723 is a small percent.
On the other hand:
They don’t know where they lost it?
They are estimating losses? They are basing loses on HISTORY?
If the city was run like a business, an exact list of write-offs would be available. People who don’t pay would be banned from doing business with the company unless they did so in CASH. Unpaid accounts would be turned over to a collection agency who get to keep part of what is collected and don’t charge anything unless money is paid. Obviously they aren’t a business.
I questioned that statement yesterday. This morning they clarified it:
The only part this explains is the entries made on 4/30/2012 during the final review. $343,171.10 was transferred from the old accounting program, so the statement doesn’t apply to that amount. Evidently details are too difficult.
Community Development Block Grants are a receivable?