TO: Housing Authority Commissioners
FROM: Jennifer Palmer, Executive Director of Housing Authority
REPORT BY: Alex Carrasco, Project Manager
SUBJECT: Acceptance of Account Receivable and Pre-Paid Balance Write-Offs for Napa County Housing Authority
RECOMMENDATION
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Accept and file account receivable and pre-paid balance write-offs for Napa County Housing Authority as of March 31, 2024. (Fiscal Impact: $1,500 Expense; Napa County Housing Authority Fund, Budgeted, Discretionary)
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BACKGROUND
Napa County Housing Authority policy and procedures for Collection Monitoring of Prepaid Lodger Accounts (Section C-Write-off of Pre-Paid Lodger Accounts) and Collection Monitoring of Past Due Accounts (Section C -Past Due Accounts) require staff to make recommendations to the Authority to remove funds from revenue for lodgers who have departed at least 18 months. Staff request Account Receivable Write-off in the amount of $1,472.00 and Pre-Paid Write-off in the amount of $28.00.
The Authority has an Agreement with California Human Development Corporation (CHDC), a nonprofit corporation, to manage the day-to-day activities at the Centers. CHDC has designated employees, who are the Centers’ Managers and a Fiscal Analyst, to be responsible for collection of lodger fees in accordance with the rates and policies established by the Authority’s Board of Directors. The current rate for lodgers is $16.00 per day.
Staff have engaged Napa County Auditor-Controller's Office (ACO) to perform quarterly monitoring over CHDC’s compliance with the Authority’s policies and procedures during fiscal year 2023-2024. Based on the most recent audit (Quarter ending Marcy 31, 2024), the ACO recommended the following write-offs: Accounts Receivable Total Recommended Write off-$1,472.00, and Pre-Paid Balances Total Recommended Write off $28.00.
Accounts Receivable Breakdown By Center
River Ranch - $756
Calistoga - $506
Mondavi - $210
Pre-Paid Breakdown By Center
River Ranch - $14
Mondavi - $14
Calistoga - $0
Staff will record an accounting entry to decrease revenue for approved abandoned accounts and increase a liability account as prescribed by the ACO. CHDC or the contract operator and Authority staff will maintain a list of abandoned accounts for five years. Should a lodger return during the retention period then any pre-paid balance that has not been remitted to the State of California shall be either a reduction to Lodger’s fees if Lodger is staying on property or paid to individual by cash or check.
Requested Action:
Accept and file account receivable and pre-paid balance write-offs for Napa County Housing Authority as of March 31, 2024
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Farmworker Housing Fund |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The Napa County Housing Authority has created a write-off policy to be able to clear the books of old accounts. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
None |
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Consequences if not approved: |
The charges would stay on the books and keep showing up in audit reports. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California
Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.