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Home My WebLink AboutIR 7187 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7187 To the Mayor and Members of the City Council May 7, 1987 X Subjed: STATUS REPORT ON ACCOUNTS RECEIVABLE FUNCTION Accounts Receivable(A/R)due to the City reflect a wide variety of transactions ranging from those established to reflect ad valorem taxes due, to those generated to record amounts due for recovery of damages to City property. The larger receivable sources such as those for ad valorem taxes and water and sewer services have had specialized data processing programs developed which facilitate monitoring and control. Smaller receivables or those with infrequent activity are included in the City's n-tiscellaneous receivable processing. For purposes of this report, receivables have been grouped into three categories;Special Billings,Service Billings and Miscellaneous Billings. Special billings include capital projects,Centre-Point sale and the sale of assets to FWrA. Service billings include property tax,water and sewer,sanitation,etc. Miscellaneous billings include all others. The following pie chart reflects the ratio of the three categories to total accounts receivable. $3,434,973 4.39% 25.17% $19,687,829 70.45%4 17 $55,112,127 Miscellaneous Service JE Special Miscellaneous receivable processing begins when any department of the City creates a transaction which results in money being due to the City. The initiating department transmits this information to the Accounting Division. Accounting prepares an A/R.invoice which is assigned a number,recorded in the accounting system and mailed. In the accounting system the receivable information is recorded in a subsidiary record where it is classified according to fund number,receivable type and a unique number assigned to the person or entity owing the money. If payment against a receivable is received in Accounting,then a credit is applied to the account which reduces or"zeroes out" the receivable balance. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7187 p.2 To the Mayor and Members of the City Council May 7, 1987 Subject: STATUS REPORT ON ACCOUNTS RECEIVABLE FUNCTION In researching this process,staff has found that in those instances when the payment for a miscellaneous receivable comes into the department,the amount may be recorded as revenue and not applied to the outstanding receivable. Steps will be taken to correct this procedure. An example of this is the outstanding amount of$122,500 on the books for the Fat Stock Show. Research has shown that the amount was booked as a receivable by Accounting,but the check was given to the department and was turned in as revenue; thus the outstanding balance was never zeroed out Unlike the more sophisticated computer programs designed for the larger receivables,in reports for miscellaneous A/R .,the initiating department is not identified. Thus the status of various receivables cannot be easily monitored. Because accounting priorities in the last few years have been to pay vendors in a more timely manner and ensure that revenue and expenditure data are as current as possible,attention has not been directed to solving this ,,,,± problem. In 1984-85,the Finance Department completed a comprehensive review of the billing and collection of monies due to the City. The study has been the basis for many of the improvements made to the cash management operation during the last two years. Included in the results of the study was identification of the need for a centralized accounts receivable operation. Implementation of such is part of the Finance Department's long- range cash management objectives .,and planning is underway. As requested by the City Council,the following is a listing of the outstanding miscellaneous receivables of more than$1,000. Employee travel has not been included since it is a short term receivable. Administrative Regulations require that employee travel be cleared within ten days of return of trip. Insufficient checks are listed by departmental total and include amounts under$1,000. If the Council should require additional information concerning these receivables,the staff will be pleased to provide it. Douglas Harman City Manager Attachments -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS Attachment 1A City Receivables 4-2-87 Item by Fund Amount Coyonerits General Fund Edison Wholesale Jewelry 2,620.00 Loading Zone Substandard Housing Liens 342,492.55 Amount Fully Reserved Radio Station Hotline 10,302.96 Telephone Service Conection to Police,Fire and Ambulance FTWorth Ail Center 2,363.00 Elevator Service FTWorth Museum of Scisnos/Hlst 11360.00 Elevator Service W.Scott Theater 2,193.00 Elevator Service Wood Cutting Lions 451,628.42 Amount Fully Reserved Trinity Housing Finance Corp. 10,400.00 Researching Currently EPA - Dead Animal Pick-up 2,871.75 Dead Animal Pick-up Charges Architectural Utilities Co. 2,426.00 Parking Mew Rentals AT&T Communications 2.852.00 Parking Motor Rentals City/County Jail 33,834.48 Billing for share of Utilities; Water, Gas, Electricity D/FW Regional Airport Board 5,205.00 Legal Services and billings under Contract 10190 Daniel Ambulance 6,792.37 Billings for telephone service at Fire Stations Dawson,Michael 2,149.23 Adult Probation; Restitution for criminal offense Day Care Association 1.617.68 Floor space rental at Multi-Purpose Centers Fort Worth Airline rickets 2,890.00 Cost of rokets not charged to Departmental budgets Fort Worth ISD 2154,354.04 Tax Collection Fees charged Harrison, Elalne 3,696.00 Currently being researched KTVT Television 1,345.97 News Release Circuit charges Ridgmar Associates 5,710.74 Currently being researched Senior Citizens 4,093.00 Currently being researched Tarrant County 231,486.06 Monthly billings for Public Health Services Tarrant County Law Library 23,370.00 Monthly Invoicing for services Tarrant County Islamic Center 2,216.00 Wrong Vendor, recouping Ve paid Terra-KO, Inc. 11000.00 Currently being researched Texas Highway Dept -20,903.54 Currently being researched Texas Electric Service 1.467.96 Currently being researched WRAP Radio 2,186.71 Currently being researched WRMC Insurance .2,028.00 Currently being researched William, John Woodrow 1,500.00 Adult Probation, Restitution for Criminal Offense Mineral Wells Water Dept 2,960.00 Currently being researched Spring Valley Estates 1"I50.00 Currently being researched Hemy C. Beck Construction 1,900.46 Light and SOW Damage billings Alvin R. Brown 1,209.76 Light and Signal Damage billings James A.Downs 1,003.37 Light and Signal Damage billings Eon service 1,395.08 Light and SOW Damage billings Raymond Harris 1,035.09 Light and Signal Damage billings Jerry Don Hill 1,018.67 Light and Signal Damage billings Fra" Oyervides 1,114.74 Light and Signal Damage billings John Win.Persons 1,099.11 Light and SOW Damage billings Goo.F.Pittman 6,864.94 Light and Signal Damage billings Lorenzo Watts 2.242.37 Light and Signal Damage billings R.E. Williams 111 1,423.16 Light and Signal Damage billings NSF-Housing& Human Services 1,537.66 Non-SuMcleft Funds Chocks NSF-Development 7,978.37 Non-Sufficient Funds Checks NSF-Finance 87,061.03 Non-Sufficient Funds Chocks NSF-Personnel 1,678.32 Non-Sufficient Funds Chocks NSF-T&PW 4,480.00 Non-Sufficient Funds Chocks NSF-Public Events 1,197.84 Non-Sufficient Funds Chocks NSF-Cltran 24,033.85 Non-Sufficient Funds Chocks NSF-Municipal Court 6,022.89 Non-Sufficient Funds Chocks NSF-Health 6,318.92 Non-Sufficient Funds Chocks NSF-Water/Sower 4.003.12 Non-Sufficient Funds Chocks NSF-Park1liFtecreation 9,343.76 Non-Sufficient Funds Chocks NSF-Library 1,565.55 Non-Sufficient Funds Chocks Cass.Mariana lease 350,000.00 Stock Show-Basic Rental 70,000.00 Pro-'80 Stock Show-Maintenance 52,500.00 Pro-'80 Page 1 Attachment IB City Receivables 4-2-87 Due from the Bus System Fund 120,172.69 Settled between funds each year Due from Parking Garage Fund 330,000.00 Repayment Budgeted in Parking Fund Total General Fund 2,495,604.02 Aviation Fund NSF-Aviation 8,574.24 Non-Sufficient Funds Checks Total Aviation Fund 8,574.24 Bus System Fund Due from FWTA 232,500.00 Cleared Annually by Audit Adjustment Total Bus System Fund 232,500.00 Water and Sewer System Fund [CM-Oklahoma City 2,356.00 Currently under research North Richland Hills 8,801.72 Currently under research Azle, W. Settlement Meter 17,347.59 Currently under research Denton County MUD NO.1 4,243.22 Currently under research North Richland Hills Water 2,583.03 Currently under research Trans-Tex Supply Co. -81,252.71 Currently under research Evemhan Sewer Contract 5,875.24 Currently under research Haltom City Sewer contract -12,778.16 Currently under research NSF-Water 35,294.40 Non-Sufficient Funds Checks Total Wafer and Sewer System Fund •17,529.67 Equipment Services Fund Medstar Fuel Billings 22,558.42 Normal Monthly Fuel Billings Insurance Fund Architectual Utilities 1,489.18 Light and Signal Damage Billings Ulia Arequllin 1,273.23 Light and Signal Damage Billings Michael Bennett 1,107.61 tight and Signal Damage Brings Garry L Broadus 1,041.79 Light and Signal Damage Billings Gregory Jo Common 1,292.61 tight and Signal Damage Billings Dal Mac 1,605.87 tight and Signal Damage Billings Rafael Dominquez 11156.65 Light and Signal Damage Brings Domingo Duran Jr. 1,217.21 Light and Signal Damage Brings Edward Waiter Harvey 1,248.64 Light and Signal Damage Billings Cynthia Hernandez 1,255.78 Light and Signal Damage Billings Higgins Back!"SwAoe 1,057.00 Light and Signal Damage Billings Roans Jacob 1,048.27 Light and Signal Damage Billings Darnell A. Jean 1,020.69 Light and Signal Damage 811ings Thomas E.Johnson 1,074.20 Ught and Signal Damage Billings Terry Lee King 1,158.41 Ught and Signal Damage Bilings Richard John Lassiter 1,419.40 Light and Signal Damage Billings John Dale Marchali 1,037.48 Light and Signal Damage Billings Billy James Mlles 1,022.17 Light and Signal Damage Billings Gordon MdW4Blan 1,692.56 Light and Signal Damage Billings Jose Perez 4,665.12 Light and Signal Damage Billings Robert Ceo1 Read 1,298.77 Light and Signal Damage Billings J.L Salinas 1,226.60 Light and Signal Damage Brings Julia Ann Shefchuk 1,093.98 Light and Signal Damage 8111ngs Kevin L Triggs 1,122.69 Light and Signal Damage Billings Michael L Wheeler 1,153.61 Light and Signal Damage Billings Page 2 Attachment 1C City Receivables 4-2-87 Due from to Bus System Fund 4,321.00 Insurance Premium Billing Total Insurance Fund 38.100.52 Tax Distribution Fund NSF-Finanoe 392.939.55 Non-SuMciers Funds Checks Grant Funds HHAP.Cordract •4,058.84 Advances or Advances Pending to Subreciplents MPP Hispanic Chamber of Commerce 10,763.01 Advances or Advances Pending to Subreciplents School Age Child Care YMCA 14,652.16 Advances or Advances Pending to Subrecipients FWEDC Business Assist.Program 12,575.20 Advances or Advances Pending to Subrecipients FWEDC RLF 49.169.57 Advances or Advances Pending to Subreciplents Day Owe Assoc.of FW 23,500.00 Advances or Advances Pending to Subrecipients. YWCA Polytechnic H.S.C.C. 1,578.32 Advances or Advances Pending to Subreciplents HNS Homeownership Program 19,444.04 Advances or Advances Pending to Subreciplents NHS Adrrdn. RLF/Deleffed Pay 138,910.87 Advances or Advances Pending to Subreciplents YO SOY FWISD -1.781.93 Advances or Advances Pending to Subrecipients United Comrn.Ctr NSE YOUTH -2,525.63 Advances or Advances Pending to Subrecipients Total Grant Funds 262,226.77 Total All Miscellaneous Receivables 3,434,973.85 Page 3