FOR IMMEDIATE RELEASE: May 28, 2003
CONTACT: Mark Funkhouser, City Auditor, (816) 513-3300
Performance audit on accounts receivable released
Today, the City Auditor’s Office released a report on accounts receivable. Receivables are monies owed to the City for services already provided. More than $26 million in accounts receivable are owed to the City for services such as airport charges, fees for using convention facilities and equipment, water and sewer service charges, special assessments, and municipal court fines that have been adjudicated.
The report concluded that City departments do not consistently utilize best practices for billing and collecting accounts receivable. Some departments send bills without due dates; not all departments assess penalties for non-payments; not all departments assess the effectiveness of collection efforts; and Citywide policies for receivables do not exist. Collection efforts for most receivables, however, do include the use of collection agencies or the courts.
The report includes recommendations for improving the billing and collection of accounts receivable including developing Citywide guidelines and establishing a method of identifying all monies owed to the City. Management agreed with the recommendations.
This report can be accessed from the City’s Web site (http://www.kcmo.org) beginning May 29.