Title
Incorporated County of Los Alamos Resolution No. 24-25. A Resolution Removing The Unsecured And Uncollectible Consolidated Omnibus Budget Reconciliation Act (Cobra), Library Services, General Billings, Ambulance Billing, and Environmental Services Accounts From The Accounts Receivable List Of The Incorporated County Of Los Alamos
Recommended Action
I move that Council approve Incorporated County of Los Alamos Resolution No. 24-25; a Resolution Removing the Unsecured And Uncollectible Consolidated Omnibus Budget Reconciliation Act (Cobra), Library Services, General Billings, Ambulance Billing, and Environmental Services Accounts From The Accounts Receivable List Of The Incorporated County Of Los Alamos.
County Manager's Recommendation
The County Manager recommends that Council adopt Incorporated County of Los Alamos Resolution No. 24-25.
Body
Pursuant to NMSA 1978, Section 3-37-7, it is requested that the County Council approve the write-off and removal of these uncollectible accounts. These accounts have been uncollectible for four (4) years or more and all avenues for collection by the County have been exhausted.
The New Mexico Attorney General’s Opinion 70-88 indicated that writing off such uncollectible accounts has no effect on the County’s future right to collection if circumstances change, and if collection is not barred by the applicable statute of limitations.
The amount of write-off for each account was determined from the actual amounts billed from claims through June 30, 2020 utilizing the County’s billing system.
Each year uncollectible accounts receivable for write-off are brought forward.
Alternatives
The alternative is to maintain these amounts as receivables, an asset, on the County's books, with an offsetting contra-asset account, "allowance for uncollectible accounts".
Fiscal and Staff Impact
The amount of receivables shown on the financial statements today, related to these accounts, nets to $0.00. This is because these rece...
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