As the province plans for recovery, the town is beginning to slowly bring back services and reopen some public spaces. Provincial emergency orders and the town’s physical distancing by-law remain in effect. We must all continue to follow guidelines from Public Health officials.
This procedure outlines the process and responsibilities for providing centralized accounts receivable services to third parties for materials and services provided by the Town of Oakville (town).
This procedure applies to all departments that provide materials and/or services to external parties which are not paid for prior to, or at the time, the materials and/or services are being delivered. In addition, it applies to all agreements which require the Town to provide an invoice in advance of providing materials and/or services (ex. Sponsorship agreements). This utilization of centralized accounts receivable procedures does not cover the following services: Harbours, Cemeteries, Recreational Programs Registration, Membership Activities, Facility Bookings, and Oakville Centre (see non-centralized section).
The following departments who, through their departmental systems, maintain separate receivables tracking do not have to utilize the centralized accounts receivable for their operational needs:
Departments must ensure the management, collection and record retention of non-centralized receivables is maintained and available for audit. Reconciliation of the balance sheets and proper back up aging must be provided to the Manager, Accounting Operations on a quarterly basis for sign off.
If billings are for services detailed within the annual rates and fees book, fees must match what has been approved. Departments must ensure that HST is charged on applicable services and that the funds are posted to an account within the town’s balance sheet for remittance to the Canada Revenue Agency.
During the year end review, the amounts in the accounts receivable must only be for services performed or delivered in previous/current periods and must not include future services. The exception to this would be amounts owing for future events or sponsorships. In these situations Accounting Operations will determine the appropriate accounting treatment.
Annual review of write-offs must be completed and signed off by the Manager, Accounting Operations.
Aging: is an accounts receivable standard term which tracks unpaid invoices by predetermined milestone dates. These dates are usually 30, 60 and 90 days from date of generation.
Non-centralized accounts receivable: accounts receivable invoicing must be done in CIS by Financial Operations with the exception of those departments who manage their own accounts receivable system.
The following are responsible for:
Preparing timely invoice requisitions to be sent to Accounting Operations and assist, where possible, in collection process.
Accounting Clerk: reviewing invoice requisitions forms, checking account numbers and HST, preparing invoices to be sent to customers, and ensuring revenue account codes are utilized. Filing all invoices and payments received centrally for audit.
Accounting Analyst: following up on overdue accounts, working closely with the collection agency, when necessary, and documenting all collection activity for audit and review.
Manager, Accounting Operations: approving the referral of accounts to collection agency, reviewing all overdue accounts along with the allowance for doubtful accounts, ensuring all liabilities to Canada Revenue Agency are paid in accordance with legislation.
Deputy Treasurer, Director: approving uncollectible accounts to be written off.
Performing periodic reconciliation of the aging to the GL, ensuring that any quarterly aging of receivables are signed off by the Manager, Accounting Operations or designate, and that year end procedures are adhered to.
Procedure Number: F-FOC-001-004
Parent Policy: F-FOC-001
Sub-Section: Financial Operations
Author: Financial Operations, Accounting
Effective Date: 2011 Nov 21
Review by Date: 2021
Last Modified: 2016 Dec 12
Appendix A - Invoice Requisition Form
Stale-dated Credits in Class Accounts Receivable
Recreation & Culture – Outstanding Account Collection Procedure
Records Retention by-law
Year end procedures
Recreation & Culture – Small balance write off
Property Tax – Small balance write off
A-GEN-001-002 Corporate Sponsorship Procedure