Subject:
Title
Airport Accounts Receivable write-off.
label
Recommended Action:
Recommended Action
Approve the Airport Accounts Receivable write-off for accounting purposes of $21,982.70.
Body
Strategic Plan:
Deliver First Class Services to the Public and Our Customers
5.2 Be responsible stewards of the public’s resources
Summary:
The item for write-off is for Vision Airlines’ airline landing fees and Passenger Facility Charges (PFC) in the amount of $21,982.70. This debt was referred to the County Attorney for collection in October of 2014. Based on the attorney’s opinion that legal fees would exceed the amount collected, item will be written off.
Background Information:
On April 5, 2005, the Board adopted Resolution No. 05-61 establishing a County-Wide Write-off Policy for Accounting Purposes. The policy delegates the authority for accounts receivable write-offs for accounting purposes of less than $10,000 to the County Administrator. The item attached for approval of the Board is larger than the $10,000, requiring Board approval. The write-off of these accounts does not forgive the debtor of their obligation, but moves the item off the County’s balance sheet. The write-offs are for the period April 1, 2014 to March 31, 2015. During FY 2014, billing revenue for airline landing fees was $838,312.26 and billing revenue for PFC was $2,796,280.74.
Fiscal Impact:
Approval of this action authorizes the write-off of $21,982.70 in uncollectible accounts receivable from the Airport Operating Fund. The write-off does not forgive the debtor of their obligation, but moves the item off the County’s balance sheet. This item does not reduce actual revenues or increase costs.
Staff Member Responsible:
Tom Jewsbury, Director, Airport
Lori Sullivan, Financial Mgmt and Budget Analyst, Office of Management and Budget
Partners:
N/A.
Attachments:
Airport Vision Account CY2014
Resolution No. 05-61