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HomeMy WebLinkAboutR-20-0079City of Miami q Legislation Resolution: R-20-0079 File Number: 6787 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date: 3/12/2020 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), ESTABLISHING, ACCEPTING, APPROVING, AND ADOPTING CITY OF MIAMI ("CITY") POLICIES AND PROCEDURES FOR WRITE-OFFS OF THE CITY'S ACCOUNTS RECEIVABLE (COLLECTIVELY, "WRITE-OFF POLICY"), ATTACHED AND INCORPORATED AS EXHIBIT "A", PURSUANT TO SECTION 18-542(11)(D) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AND BEST PRACTICES UNDER STATEMENTS OF THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD AND GENERALLY ACCEPTED ACCOUNTING PRINCIPLES; AUTHORIZING AND DIRECTING THE CITY MANAGER TO INSTRUCT THE DIRECTOR OF FINANCE (1) TO IMPLEMENT THE WRITE-OFF POLICY, (2) TO REPORT TO THE CITY COMMISSION ON AN ANNUAL BASIS THE RESULTS OF SUCH IMPLEMENTATION BEGINNING FOR THE FISCAL YEAR COMMENCING AS OF OCTOBER 1, 2018, AND (3) TO CREATE AND MAINTAIN A CITY REGISTRY OF DELINQUENT ACCOUNTS RECEIVABLE FOR CITY CONTRACTORS, VENDORS, SUPPLIERS, PROVIDERS, USERS, PERSONS, AND ENTITIES THAT EXCEED TWENTY-FIVE THOUSAND DOLLARS ($25,000.00) AND HAVE BEEN DELINQUENT FOR GREATER THAN ONE HUNDRED EIGHTY (180) DAYS IN PAYMENTS DUE AND PAYABLE TO THE CITY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Chapter 18, Article IX, Division 2 of the Code of the City of Miami, Florida, as amended ("City Code"), details the City of Miami's ("City") basic financial policies; and WHEREAS, Section 18-542(11) of the City Code provides that the City shall endeavor to maintain formal policies which reflect "best practices" in the areas of debt, cash management and investments, budget development and adjustments, and revenue collection; and WHEREAS, Section 18-542(11)(d) of the City Code further provides that such basic financial policies for revenue collection shall provide for maximum collection and enforcement of existing revenues, monitoring procedures, adequacy levels of subsidy for user fees, and write-offs of uncollectible accounts; and WHEREAS, in accordance with Governmental Accounting Standards Board ("GASB") best practices statements and Generally Accepting Accounting Principles ("GAAP") for municipalities, it is in the City's best interests for the City to establish policies and procedures for write-offs of uncollectible accounts; and WHEREAS, from time to time, the City's Administration determines with the City Attorney's Office that certain efforts to recoup delinquent payments to the City require legal assistance and court processes; however, some delinquent payments are determined not to City of Miami Page 1 of 2 File ID: 6787 (Revision:) Printed On: 3/31/2020 File ID: 6787 Enactment Number: R-20-0079 require legal intervention and court processes and are uncollectible in accordance with GASB and GAAP; and WHEREAS, accordingly, the City's Finance Department provided a proposed Accounts Receivable Write -Off Policies and Procedures (collectively, "Write -Off Policy") to the City's Finance Committee on October 21, 2019 and the Finance Committee has recommended proceeding to City Commission for consideration of the Write -Off Policy, attached and incorporated as Exhibit "A"; and WHEREAS, the City's Department of Finance recommends that the Miami City Commission establish, accept, approve, and adopt the Write -Off Policy, attached and incorporated as Exhibit "A"; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The Write -Off Policy, attached and incorporated as Exhibit "A", is established, accepted, approved, and adopted pursuant to Section 18-542(11)(d) of the City Code and best practices under statements of the GASB and GAAP. Section 3. The City Manager is authorized' and directed to instruct the Director of Finance (1) to implement the Write -Off Policy, (2) to report to the City Commission on an annual basis the results of such implementation beginning for the fiscal year commencing as of October 1, 2018, and (3) to create and maintain a City Registry of Delinquent Accounts Receivable for City contractors, vendors, suppliers, providers, users, persons, and entities that exceed twenty- five thousand dollars ($25,000.00) and have been delinquent for greater than one hundred eighty (180) days in payments due and payable to the City. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: 1 i ria i "ndez, ity Httor ey 3/3/2020 ' The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions. 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. City of Miami Page 2 of 2 File ID: 6787 (Revision:) Printed on: 313112020