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DN: TR- 32 -98
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeti ng:
General Purpose and Administration Committee
File#~~ .
Res. #GpA - d.~4~q<i?
Date:
May 4, 1998
By-law #
Report #:
TR-32-98
FILE #: DEV
Subject: FUNERAL HOMES - ACCOUNTS RECEIVABLE
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report TR-32-98 be received;
2. THAT Council authorize that interest charges be applied to invoices with respect to
funeral homes that are outstanding more than 90 days from the date of invoice.
3. THAT Morris Funeral Chapel and Northcutt Elliott Funeral Home be advised of
Council's decision.
BACKGROUND
1.0 Presently the municipality invoices Morris Funeral Chapel and Northcutt Elliott
Funeral Home for burial costs for the municipal owned cemeteries. This
arrangement has been in place for a number of years and recent payment history
shows that invoices are usually paid within 30 - 45 days of the date of the invoice.
1.1 For all municipal accounts receivable, a 1 % interest charge is applied to any
accounts that are outstanding after 30 days per resolution ratified by Council on
September 29, 1997.
806
REPORT NO.: TR- 32-98
PAGE 2
1.2 It has been brought to the Municipality's attention by the Morris Funeral Chapel
(see Attachment A) that funeral accounts receivables are paid on an average of 60 -
90 days and that funds are generally advanced to the municipality well before the
funeral home collects the accounts.
1.3 In light of this in addition to the fact that payments from funeral homes are normally
received on a timely basis it is recommended that the late interest charges only be
applied to funeral home invoices that are outstanding more than 90 days from the
date of invoice.
CONCLUSION
2.0 It is recommended that funeral homes no longer be charged interest on invoices that
are paid within 90 days of the invoice date.
Respectfully submitted,
Reviewed by,
arie Marano, H.BSs., A.M.C.T.,
Treasurer
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W.H. Stockwell,
Chief Administrative Officer.
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27 APRIL 1998
807
PAUL R. MORRIS
President
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PHONE (905) 623-5480
FAX (905) 623-3025 4 Division Street
Bowmanville, Ont., l1C 2Z1
MUNICIPALITY OF CLARINGTON
MARIE MARINO, TREASURER,
TEMPERANCE ST.,
BOWMANVILLE, ONTARIO,
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MU,;rIF.l\ ITY C: C:..ARING raN
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FINAi.CE
Dear Marie,
Special circumstances under the Municipal Act pro\ide for an exemption of late and
interest charges on certain accounts. Funeral service providers collect cemetery revenues
for the Municipality of Clarington and guarantee payment unless the municipality has
been informed to the contrary such as Social Services, which you invoice directly.
Funeral accounts receivable are paid on an average of 60 - 90 days and funeral providers
generally advance revenues to the municipality well before collecting the accounts. I
therefore feel those funeral service providers working for the municipality should be
exempt from late and interest charges relating to our cemetery invoices. The present
system has worked well for a century and is cost effective for the municipality. It would
be most appreciated if the Treasury Department would make a motion to council on our
behalf
Respectfully,
PAUL R. MORRIS,
MORRIS Fln'-tTERAL CHAPEL L TO.
CC: Jim Schell
Councilor Ward 2a
808