HomeMy WebLinkAbout16.2 Accounts Receivable Collection Process POLICY
Section Policy No. Page
• Financial 16-2 1 of 2
Co l Policy Title Date Resolution
No.
Accounts Receivable Collection Process February 27, 2018 62/18
Purpose:
To establish uniform guidelines for the collection of accounts receivable. The County shall promote and
encourage the timely payment of accounts receivable and pursue delinquent accounts in a prudent and diligent
manner.
Policy Definitions:
Accounts Receivable: An amount owed to Kneehill County that is not being paid immediately at the point of
sale, other than utilities or property taxes.
Policy Guidelines:
1. All invoices are reviewed to ensure that they are complete. Name, address, and contact information
has to be provided from the invoicing source or department at a minimum.
2. Submitted request to invoice that are incomplete will be returned to the originator or clarification will
be obtained by phone.
3. An interest penalty as per Master Rates By-Law will be added to outstanding amounts over thirty days.
In rare exceptions,there may be cases where there may be exemptions as part of another agreement
(Roadata, cost sharing with another municipality, etc),the CAO or Director, may approve the
exemption of penalties.
4. All accounts with a balance owing will be issued a monthly customer statement.
5. Upon 30 days overdue letter#1 will be mailed as a reminder to the customer
6. Upon 60 days overdue letter#2 will be mailed as a second reminder to the customer. Upon 90 days
overdue letter#3 will be mailed as a warning to the customer
7. If an invoice is overdue by 120 days, and after procedures 1 to 7 have been completed, a full account
review by the Director of Corporate Services will be conducted. Options available at the discretion by
the Director of Corporate Services, but are not restricted to one option:
Account will be referred to the collection agency.
ii. Account will be transferred to taxes if applicable (MGA Section 553(1))
iii. The department from which the good or service provided to the customer (who's account
is now 120 overdue) will be notified and further goods or services requested, may be
restricted until paid.
8. At any point after account is overdue by 120 days,the CAO may:
i. Authorize court actions for any account deemed appropriate.
ii. Write off the account(with authorization of Council).
iii. Other appropriate options available as feasible.
P01-ICY
Section Policy No. Page
Financial 16-2 2 of 2
Policy Title Date: Resolution
No.
Accounts Receivable Collection Process February 27, 2018 62/18
9. At least annually, accounts that have been referred to a collection agency and still prove to be
uncollectable shall be written off through the approval of Council. Should the account be collected
within the seven-year period the file remains active,the collected amount will be applied to a general
collection or recovery account.
10. The account holder will continue to be on the restricted services delinquent list until either the account
is paid up or the expiry of the seven-year active collection period. The CAO may exercise judgment
contrary to this if deemed appropriate.
11. An account balance of less than $10.00 at month end can be written off at the Manager of Financial
Services' discretion.The basis will be if it is cost effective to do or as a result of timing differences.
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Jerry Wittstock Al Iloggan,
Reeve bi'O
Approved: January 22, 2001 606/06
Amended: August 26, 2008 397/08
Amended: November 29, 2011 570/11
Amended: February 27, 2018 62/18
Review Date: February 2021