THE CORPORATION OF THE CITY OF WINDSOR POLICY

Primary Owner: Finance–Taxation & Financial Policy No.: CS.A4.07
  Projects Approval Date: TBD
Secondary Owner: Accounting Services Approved By: TBD
Subject: ACCOUNTS RECEIVABLE (AR) Effective Date: IMMEDIATE
  COLLECTIONS Procedure Ref.: n/a
Review Date: TBD Pages: 6 Date: TBD
Prepared By: Ari Varsa, Jocelyn De Luna Replaces: Jan 21, 2013 (M20-2013)

  1. PURPOSE

    • 1.1. To establish a reporting structure governing collection activities that enhances the integrity of the collection process and safeguards Corporate assets.

    • 1.2. Establish guidelines and control requirements for:

      • 1.2.1. Consumer and commercial reporting parameters governing usage and observance of the Ontario Consumer Reporting Act.

      • 1.2.2. Collection agency assignment.

      • 1.2.3. Returned cheques / items.

      • 1.2.4. Write-off approvals.

      • 1.2.5. AR adjustment approvals including the waiving of interest, late penalties, overdue charges, cancellations and administrative fees.

      • 1.2.6. Refunds

      • 1.2.7. Legal assignment for both small and large claims.

    • 1.3. To ensure the regular review and follow up of all outstanding accounts receivable.

    • 1.4. To establish procedures for the benchmarking and monitoring of the collection process as a measurement of performance.

  2. SCOPE

    • 2.1. This policy applies to all City of Windsor Finance employees engaged in the collection of accounts receivable or other unsecured debt as assigned, excluding municipal property taxes.

    • 2.2. This Policy also applies to City of Windsor Departments that collect accounts receivable utilizing operating systems that includes: PeopleSoft, Amanda, Med-e-Care, ACTIVE Net, etc.

  3. RESPONSIBILITY

    • 3.1. City Council is responsible to:

      • 3.1.1. Approve all non-collectable accounts receivable write-offs of the Corporation over $150,000 plus any related interest or penalties on a per account basis.

      • 3.1.2. Approve the initiation of legal proceedings for the purposes of collecting accounts receivable over $150,000, where considered appropriate.

      • 3.1.3. Approve AR adjustment of amounts in excess of $150,000 per invoice.

    • 3.2. The Chief Administrative Officer (CAO) is responsible to:

      • 3.2.1. Approve all non-collectable accounts receivable write-offs up to $150,000 plus any related interest or penalties on a per account basis.