Resolution 2008-26 STATE OF ILLINOIS )
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COUNTY OF KENDALL )
RESOLUTION NO. 2008-
RESOLUTION APPROVING A
BAD DEBT POLICY
WHEREAS, the City Council of the United City of Yorkville has considered and discussed
establishing a policy concerning bad debts, and
WHEREAS, the City Council has determined that it desires to proceed to establish such a
policy, and
WHEREAS, the text of the Bad Debt Policy the City Council now desires to establish is set
forth on the attached Exhibit "A" which is incorporated herein, and
NOW THEREFORE BE IT RESOLVED by the Mayor and City Council of the United City
of Yorkville that the Bad Debt Policy in the form set forth on Exhibit "A" attached hereto and
incorporated herein is hereby approved.
Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this
ZA day of A.D. 2008.
CITY CLERK
ROBYN SUTCLIFF JOSEPH BESCO
GARY GOLINSKI Q>I- ARDEN JOSEPH PLOCHER
WALTER WERDERICH MARTY MUNNS
ROSE ANN SPEARS
Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this
day of J U ►J , A.D. 2008.
MAYOR
F x c-f rT- A
Bad Debt Policy
The purpose of this policy is to define the procedures for the ability to write off
monies owed to the City within the below mentioned guidelines.
Bad debt is defined as an Accounts receivable(s) that will likely remain
uncollectable and will need to be written off. In summary, it is money owed to
the City that management believes the City will be unable to collect.
An outstanding debt is to be written off as a bad debt expense when it has
fulfilled one of the following criteria:
1) The debtor has been turned over to the collection agency to attempt
to collect on the debt owed;
2) The debt is overdue greater than one year;
3) Efforts made to collect the outstanding debt has been exhausted.
The Finance Director will review and authorize his /her staff to write off
outstanding debt as part of the day to day operations of the Finance
department. An outstanding debt cannot be written off without the written
authorization of the Finance Director.
A quarterly report will be issued to the City Council informing them of the status
of bad debt.
In the event the monies are collected after the original amounts have been
written off to bad debt, the recovered revenue is to be recorded in the
recovery line item of the fund the outstanding debt was written off to.