FINDING OF THE COLLECTIONS BOARD OF REVIEW

Transcription

1 FINDING OF THE COLLECTIONS BOARD OF REVIEW REPORT NO Pursuant to the provisions of Sections through of the Los Angeles Administrative Code, the Collections Board of Review (Board) held a hearing to review, authorize and/or recommend delinquent accounts for write off. The meeting was held on July 27, 2016, in the Controller Conference Room 350B at City Hall East, Los Angeles, California. The Board consists of the following members: Shane Min, Sr. Management Analyst II, representing the City Controller Wai Yee Lau, Revenue Manager, representing the Office of Finance Melissa Krance, Inspector General of Revenue and Collections, representing the Office of the City Administrative Officer The Board s agenda included consideration for removal of various uncollectible accounts receivable from the active accounts of the Los Angeles Departments of Transportation, Housing and Community Investment, Convention and Tourism Development and Public Works - Bureau of Sanitation. The Board may approve write offs of accounts less than $5,000 each as authorized by the City Council (CF ). The Board may recommend write off of accounts $5,000 or more for approval by the City Council. The results of the Board s review are summarized below. Housing and Community Investment Department of Los Angeles (HCIDLA) HCIDLA presented one write off request before the Board as follows: I. March 24, 2016 report requesting write off of 8,066 uncollectible accounts totaling $2,765,737.58, representing amounts less than $5,000. Discussion. These invoices are for service charges related to the Rent Stabilization Ordinance, Systematic Code Enforcement, inspections and investigations. The statute of limitations has passed on these invoices. The department has exhausted all reasonable collection efforts. Board s Decision. The Board has reviewed the uncollectible accounts. The Board agrees that further efforts will be disproportionately costly in relation to the possible outcome and unanimously approved the write off request from HCIDLA to remove from its active accounts receivable the uncollectible amount of $2,765, representing 8,066 accounts less than $5,000. Los Angeles Convention and Tourism Development Department (LACTD) Before the Board were two write-off requests from LACTD as follows: I. May 19, 2016 report requesting write off of 10 uncollectable accounts receivable totaling $14, representing amounts less than $5,000

2 Finding of the Collections Board of Review July 27, 2016 Page 2 of 3 Discussion. LACTD provided the Board with a list of 10 uncollectible accounts under $5,000 with a total of $14, AIG operates the Los Angeles Convention Center on behalf of the LACTD. The outstanding uncollectable amounts are shortfalls due to event cancellation, damage claims and other unforeseeable causes. AIG follows City collection guidelines as the City s fiscal agent but the uncollectable amounts are still provided to the City for write off. The items under consideration are past the statute of limitations and is part of the clean-up of old uncollectable accounts. Board s Decision. The Board has reviewed the list of uncollectible accounts. The Board agreed that additional efforts to collect any sum of the fees could be disproportionately costly in relation to the probable outcome. Therefore, the Board unanimously approved the request from the LACTD to remove from its active accounts receivable the uncollectible accounts of $14, representing 10 accounts less than $5,000 per account. II. May 19, 2016 report requesting write off of 5 uncollectable accounts receivable totaling $277, representing amounts equal to $5,000 or more. Discussion. LACTD provided the Board with a list of 5 accounts equal to $5,000 or more with a total of $277, All 5 accounts have been forwarded to the Office of Finance for collections and returned as uncollectable. Included in these accounts is 1 settled account with an outstanding balance of $84, Board s Decision. The Board agreed that all reasonable efforts have been exhausted in the collection of this account and additional efforts could be disproportionately costly in relation to the probable outcome. Therefore, the Board unanimously recommends that the City Council approve the write off request from LACC to remove from its active accounts receivable, 5 accounts totaling $277, Los Angeles Department of Transportation (LADOT) LADOT presented one write off request before the Board as follows: I. July 25, 2016 report requesting write off of 81,146 uncollectible accounts totaling $11,023, representing invoice amounts less than $5,000. Discussion. These accounts are parking citations issued by LADOT. These citations are from January 2011 to March These citations are processed by Xerox State and Local Solutions (Xerox) and Xerox also acts as the collection agency. Secondary collections are handled through sub contracted third party collection agencies - Harris & Harris, MRS and GC Services. These accounts are not past the statute of limitations but the Department contends that accounts in excess of two years are highly unlikely to be collected. Therefore

3 Finding of the Collections Board of Review July 27, 2016 Page 3 of 3 LADOT requests approval to remove these accounts from their active accounts receivables. Board s Decision. The Board has reviewed the list of uncollectible accounts and the Board unanimously approved the request from the LADOT to remove from its active accounts receivable the uncollectible amount of $11,023, representing 81,146 accounts less than $5,000 per account. Los Angeles Department of Public Works - Bureau of Sanitation (PW-BOS) PW-BOS presented one write off request before the Board as follows: I. July 22, 2016 report requesting write-off of 224 uncollectible accounts totaling $29, representing accounts less than $5,000. Discussion. These invoices were generated by the PW-BOS (IWMD) for industrial wastewater fees. These invoices are over three years old and the statute of limitation for collections has passed on all these invoices. Board s Decision. The Board agreed that additional efforts to collect could be disproportionately costly in relation to the probable outcome. The Board unanimously approves the request from PW-BOS to remove from its active accounts receivable 224 uncollectible accounts totaling $29, representing accounts less than $5,000.

4 FORM GEN. 160 CITY OF LOS ANGELES INTER-DEPARTMENTAL CORRESPONDENCE DATE: May 19, 2016 TO: Collections Board of Review 200 North Main Street Room 202, City Hall East Los Angeles, CA Attention: Shane Min, Office of the Controller lections Board of Review CO FROM: DianalvIaflgiogJu, Assistant General Manager Department of Convention and Tourism Development SUBJECT: CANCELLATION OF UNCOLLECTIBLE ACCOUNTS RECEIVABLE TOTALING $291, Attached is a listing of delinquent accounts for the City of Los Angeles Department of Convention and Tourism Development (CTD) - Dept. No. 48, previously known as the Los Angeles Convention Center Department (LACC). The CTD has been unable to collect the amounts due to the City within the Statute of Limitations period (see attached). As such, pursuant to the Division 5, Chapter 11, Article 1 of the Los Angeles Administrative Code, CTD requests that the Collections Board of Review authorize the removal of these accounts in the amount of $206, from the CTD s active accounts receivable list. Additionally, the CTD was able to settle one of the accounts (ICE Association - see attached) and is requesting that the Collections Board of Review authorize the removal of this account in the amount of $84, from the CTD s active accounts receivable list. Accounts over the Statute - Less than $5,000 $ 14, Accounts over the Statute - More than $5, , Settled Account (Principal and Interest) 84, Total Requested Write-off Amount $ 291, Should you require additional information, please contact Tigran Avetisyan at (213) , Extension Attachments DM/ta Exec. Ref: cc: File

5 Los Angeles Department of Convention and Tourism Development (CTD) Write-Off Request Accounts Over the period of the Statute of Limitations of the State of California As of April 30, 2016 Listing - More than $5,000 invoice# Date License Event ID Event Bill-to Account Principal Interest Total /15/ Craft & Hobby Association - Winter Conference & Trade Show:Jan /29/ th Annual Home Remodeling & Decorating ShowrJun /19/ The 34th Annual Home Remodeling & Decorating Show:Oct Craft & Hobby Association $65, $ 50, $115, NEC Group, Inc., a Utah Corporation $16, $ 16, $ 32, NEC Group, Inc., a Utah Corporation 511, $ 10, $ 21, /09/ Entertainment Technology Wortd:Jur> Mindshare Ventures. LLC $6, , $ 22, Total: $99, $ 93, $ 192,270.90

6 Los Angeles Department of Convention and Tourism Development (CTD) Write-Off Request Accounts Over the period of the Statute of Limitations of the State of California As of April 30, 2016 Listing - Less than $5,000 Invoice# Date License Event ID Event Bill-to Account Principal Interest Total /16/ International Glass Show:May International Glass Show, LLC $ $ $ /21/ E3 Expo:Jun UP.COM/ UGO ENTERTAINMENT $ $ $ /08/ Exotic Bridal Expo:Oct Exotic Events $ $ $ 1, /05/ Vive T u Vida:Dec Results Academy(SEE NOTES) $1, $ $ 2, /30/ Teen Party Expo:Mar GEC Events $1, $ 1, $ 2, /19/ El Exito Se Hace No Nace:Jan MMPR Global, Inc. $75.00 $ $ /11/ The Trend Show:Jul Untamed Events $ $ $ /07/ Old School meets New Skool w/dru Hill.Silk, H-Town & French Royalty $ $ $ Trueful:Sep /08/ INFINITI GEM SHOWS, INC:Apr INFINITI GEM SHOWS, INC $1, $ 3, $ 4, /07/ Joshua Fire Conference:Sep Joshua Faith Ministries & Outreach Cht $ $ $ 1, Total: $6, $ 7, $ 14,479.77

7 Los Angeles Department of Convention and Tourism Development (CTD) Write-Off Request May 19, 2016 Settled Accounts As of April 30, 2016 Bill To Account EVENT EVENT DATE INV# EVENT ID INV DATE DUE DATE PR. AMT INT./FEES TOTAL PMT AMT TOTAL WRITE-OFF ICE Association International Congress of Endoscopy 9/12/ /20/2012 9/20/2012 $ 57, $ 37, $ 94, $ 9, $ 84, $ - $ - $ ; $ 57, $ 37, S 94, $ 9, S 84,784.99

8 OFFICE OF FINANCE Citywide Collection Unit CLOSED FILE TRANSMITTAL May 12, 2016 CONVENTION CENTER MIS CELLANEQU 4 8MSC The case listed below was referred to this office for appropriate action: ICE ASSOCIATION C/0: DR. JEROME WAYE INVOICE NO.; ACCOUNT NO.; ( XX ) We are returning your complete file. ( XX ) This office has closed the above referenced case It was determined that the subject claim is uncollectible for the following reason: LEGAL SETTLED IN FULL. AMOUNT CANCELLED; $ ^ K X We recommend that this claim be referred to the Board of Review pursuant to the provision of L.A.M.C. ( ) Sec (x) Sec ( ) We approve compromise of claim pursuant to L.A.A.C. Sect (LAMC or referral not necessary) ( ) File returned from collection agency efforts exhausted ( ) Other: Very truly yours, S\ ) Vj KEMIA THOMAS1 Investigator File No