(A) Procedures. These procedures apply to all "accounts receivable" accounts at the Town of Kouts. The office of the Clerk-Treasurer has the primary responsibility for ensuring compliance with these procedures.
(1) Once an account is created, it becomes subject to collection procedures.
(2) The office will review outstanding accounts monthly.
(3) The Town Clerk-Treasurer or his or her designee will determine which accounts are considered uncollectible and write them off annually.
(4) For purposes of this section, debt is deemed as "uncollectible" if it meets any of the following criteria:
(a) Collection procedures have been followed and remain unpaid.
(b) The debtor cannot be located, nor any of the debtor's assets.
(c) The debtor has no assets and there is no expectation they will have any in the future.
(d) The debt is disputed and the office has insufficient documentation to pursue collection efforts.
(e) The debt is discharged in bankruptcy.
(f) The debtor is deceased and there is no known estate or guarantor.
(g) It is determined that it is not cost effective to continue collection efforts.
(B) Policy.
(1) All accounts deemed uncollectible will be reviewed by the Town Utility Department to ensure collection procedures were followed and documented properly. Upon approval of the Town Council, these accounts will then be written-off by the Town Clerk- Treasurer or his or her designee.
(2) Accounts that have had a write-off as having had an uncollectible balance in the past will be flagged by the Utility Department. Any future transactions for those account holders will be denied until the uncollectible balance is paid in full. However, this guideline will not apply if the debt is fully discharged in bankruptcy or if the account was disputed and the office has insufficient documentation to pursue collections.
(Ord. 2021-02, passed 4-12-21)