305City Of Anaheim Administrative Regulation
CHAPTER 3 - FINANCE
Subject: Miscellaneous Billing and A.R. 305
Collection Issue Date: May 31, 1994
Revised: May 1999
Sept.17, 2003
September 4, 2019
November 4, 2020
Page (1) of (5)
Purpose:
The purpose of this regulation is to establish a uniform procedure for billing and
collecting miscellaneous claims due the City. This regulation will include the following:
1. To establish a uniform procedure for billing and collecting miscellaneous claims
due to the City.
2. To assure maximum collections in a timely manner of all monies due to the City.
3. To delineate the responsibilities of various City departments.
4. To coordinate collection of miscellaneous delinquent accounts under the City of
Anaheim Finance Department.
Procedures:
Billing Procedure:
1. The preparation of new invoices for miscellaneous billings and the citywide
control of all outstanding miscellaneous invoices is through the Finance
Department computerized accounts receivable system. The Finance Department
will mail the invoices per the administering department's instructions.
2. Billed items which are not included in the miscellaneous category, and are
therefore excluded from this regulation are: billings for licenses, permits,
construction inspections, housing inspections, recreation fees, tenant billings,
library billings, and Utilities Department billings for utility service.
3. Departments are responsible for providing the data necessary for the accounts
receivable system to issue an invoice on a timely basis. The sooner the
information is received and billed, the better the collection results. All
departments that issue miscellaneous invoice billings for goods or services are
responsible for the following:
A. Completing and submitting a "Notice to Bill" (See Attachment A) with the
information that is necessary for the accounts receivable system to issue
an invoice and maximize the collections effort. Providing as much detail
as possible will result in increased collection rates.
City of Anaheim Administrative Regulation 305
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Billing for services, materials, and reimbursements. - It is
the responsibility of the department in which the charges
originate to prepare a "Notice to Bill" form (NTB) (Form
ACC-25) upon ascertaining the correct charges, and
forward it to the Accounting Division, within thirty (30)
days following the date of service.
2. Billing for damages to City property. - It is the
responsibility of the department affecting repairs to
complete an itemized NTB and forward it to the
Accounting Division within thirty (30) days following the
incident.
3. Decisions regarding responsible party. - If there is any
doubt as to whom the responsible party to bill is, all parties
should be billed on one (1) joint billing.
B. The Finance Department will mail all invoices to the parties being billed.
Invoices may be sent to the initiating department, if requested, for the
purpose of attaching supporting documentation.
C. The initiating department will respond promptly to any disputes related to
amounts billed.
D. The initiating department is to exercise the City's rights under the Bad
Check -Punitive Damages Laws (Section 1719 of the California Civil
Code) by sending immediately upon notification of a bad check, the "Bad
Check Letter" (see Attachment B) by certified mail to the maker of such
bad check. Refer to Administrative Regulation 325 — Returned Check
Procedures.
4. Invoices generated by the accounts receivable system are the basis for the
"Outstanding Accounts Receivable" report. This report lists outstanding invoice
amounts, invoice numbers and invoice names by invoice type for all outstanding
accounts receivable. Departments may access this report through the City's
InfoAdvantage Reporting System on demand.
5. In all cases, the department responsible for the program for which an invoice is
issued remains accountable for maintaining those records which support the
validity of the invoice.
City of Anaheim Administrative Regulation 305
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6. The Finance Department is responsible for:
A. Maintaining the computerized accounts receivable system.
B. Establishing customer accounts from information received from
departments.
C. Printing invoices from data that is either keyed into the accounts
receivable system, or provided on Notice to Bill forms by departments.
D. Mailing invoices, including second and final notices, to customers unless
requested to return the printed invoice to a department for enclosures.
E. Providing departments updates of accounts receivable collection status.
Collection Procedure:
Following the issuance of an invoice by the Accounting Division, if payment has not
been received within twenty (20) days, a second notice is sent. If the invoice remains
unpaid fifteen (15) days after second notice is sent, a final notice is sent. If there is no
response within ten (10) days, the following procedure shall be followed:
The Finance Department is responsible for:
1. For invoices $5,000 and over (or the maximum amount permitted to be filed in
small Claims Court) that have all valid billing information, the invoice, a
damage report (if applicable) and all correspondence is copied and forwarded
with a transmittal memo describing the account to the City Attorney's Office for
collection.
2. For invoices under $5,000 (or the maximum amount permitted to be filed in Small
Claims Court), Accounting determines which of the following courses of action to
pursue:
A. Small Claims Court process:
Past due invoices between $3,000 to $5,000 that have all valid
billing information are the primary selection for small claim court
process. Accounting prepares the necessary documentation, files
claims with the Small Claims Office of the Superior Court and
represents the City in Small Claims Court. The department
involved in the claims will secure witnesses and records as
necessary for court appearance.
B. Collection Agency:
Past due invoices that are below $3,000; invoices that are returned
by the post office due to invalid billing information, as well as all
other past due invoices where the Finance Department has
exhausted all means of collection efforts; are referred to the
collection agency to pursue collection.
City of Anaheim Administrative Regulation 305
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C. Franchise Tax Board (FTB) tax intercept:
Annually, Accounting prepares a collection file including those
past due invoices that have sufficient information necessary for
FTB income tax intercept.
D. Debtors Agreement:
After personal contact with the debtor, wherein the debtor
acknowledges responsibility for the claim, but is uninsured and
financially unable to pay the claim in full, a debtor's agreement
may be negotiated. (Debtor agrees to make installment payments
on a regular basis.)
E. Miscellaneous:
Unless authorized by the City Charter, ordinance, resolution,
agreement with the City Attorney, the City Manager or a
department head, payment arrangements or time extensions shall
not be granted to any individual or entity, nor shall the amount of
payment, interest or penalty be waived. The Finance Department -
Accounting shall approve or establish payment schedules for
delinquent accounts, refer delinquent accounts to the City
Attorney's Office as necessary, assign the account to a third party
collection agency to pursue collection, and request authority from
the Finance Director/City Treasurer with concurrence from the
City Manager to write-off those accounts deemed uncollectible.
2. Immediately upon receipt of a bankruptcy notice, the administering
department should forward the bankruptcy account to the Finance
Department, along with the Notice of Bankruptcy. The Finance
Department will file a Proof of Claim and make court appearances,
if appropriate.
3. Delinquent accounts involving lengthy or complex negotiations
may be excluded from normal collection activity, providing the
Finance Department is notified to "cease collection activity" via a
memo through the office of the City Manager, or Department
Head, at which point the Finance Department will be relieved of
the responsibility for the collection of that account.
4. In some situations which involve potential third -party liability for
the City, it may not be in the City's best interests to initiate
collection proceedings. In such instances, Risk Management shall
contact Accounting and instruct them (i) not to bill on a certain
matter, or (ii) to delay billing on a certain matter.
City of Anaheim Administrative Regulation 305
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The City Attorney is responsible for:
1. Filing civil complaints on delinquent accounts deemed legally collectible by the
City Attorney's Office and where a good address and attachable assets have been
provided by the Finance Department. For collections between $5,000 (or the
maximum amount permitted to be filed in Small Claims Court) and $10,000, the
City Attorney's Office shall provide direction to the Finance Department and sign
routine complaints, executions and related collection documents for court filing
and processing prepared by the Finance Department.
2. Annually, return to the Finance Department any accounts determined to be
uncollectible and notify the Finance Department — Accounting.
3. Annually, submit a written status report to the Finance Department of all
delinquent accounts in their possession.
Write-off of Uncollectible Claims:
1. When appropriate action is followed as outlined above, for claims remaining
unpaid, and where no collection appears likely, the Finance Department -
Accounting shall periodically prepare a list of unpaid claims and submit copies to
departments and the City Attorney for their approval to be included in the write
off process. The Finance Department - Accounting shall then submit the list to
the Finance Director/City Treasurer, requesting approval to be concurred by the
City Manager to write-off the claims as bad debts.
2. An invoice balance is written off only when all apparent collection efforts have
been exhausted and the amount is determined to be uncollectible by the Finance
Department.
Attachments: Attachment A (Notice to Bill)
Attachment B (Bad Check Letter)
BILL TO:
STREET ADDRESS:
DESCRIPTION:
AUTHORIZED BY:
AGENCY
City of Anaheim
NOTICE TO BILL
CITY, STATE
DATE:
INVOICE AMOUNT
12/03/20
ZIP CODE
CONTACT PERSON:
EXTENSION:
ACCOUNTING DISTRIBUTION 11
ACCOUNTING USE ONLY
N.T.B. RECEIPT DATE
FUND
DEPT
UNIT
OBJECT
REVENUE
SOURCE
BALANCE
SHEET
APPROPRIATION
UNIT
FUNCTION
COST ACCOUNTING ONLY
AMOUNT
PROGRAM
F PHASE
11 ACCOUNTING USE ONLY
INVOICE NO. INVOICE DATE APPROVED BY
ENTERED BY
City of Anaheim
FINANCE DEPARTMENT
AUGUST 1, 2019
1234 MAKEA WAY
ANAHEIM, CA 92805
Dear Sir or Madam:
The City of Anaheim is the payee for your check #9876 written in the amount of $42.00 for
invoice #AB0123. This check was returned from the bank marked "NSF".
The City of Anaheim, through Resolution 2007R-105 adopted June 19, 2007, imposes a Twenty-
five dollar handling fee for all checks not honored by the paying bank. You must pay the City of
Anaheim the full amount of the check, plus our $25.00 handling fee within 10 days after the date
of this letter or you could be sued and held responsible to pay at least all of the following,
(pursuant to California Civil Code 1719):
1. The amount of the check
2. Damages of at least $100.00, or if higher, three times the amount of the
check up to $500.00
3. The cost of mailing this notice
Please remit a cashier's check or money order, made payable to the City of Anaheim. We will
not accept personal checks. If you remit by mail, please mail it to my attention, Finance
Department, 200 S. Anaheim Blvd. Anaheim, CA 92805. If you wish to make payment in
person, you may pay with cash by bringing the payment and this letter to the City of Anaheim,
first floor cashier, 201 S. Anaheim Boulevard. You may wish to contact a lawyer to discuss
your legal rights and responsibilities as soon as possible.
Respectfully,
City of Anaheim
Division of Collections
(714)765-5320
(714)765-5070
200 S. Anaheim Boulevard, Anaheim, CA 92805 TEL (714)765-5195 FAX (714)765-5260