The below PDF contains the current Department Directive outlining official procedures for accounts receivable management, collection efforts, account corrections, bad debt write-offs, and bad debt repayment or forgiveness in PARKS DIRECT. You only need this information if you are working with outstanding customer balances, validating account corrections, preparing write-off documentation, reviewing collection efforts, or responding to questions about current departmental accounts receivable procedures.
Full Text
DEPARTMENT DIRECTIVE
Department of Parks and Recreation
Subject Area: AR & Bad Debt
Number: XXXXXX
TITLE: AR & Bad Debt Write-Offs Issue Date: 7/1/26
Purpose/Policy:
This Department Directive summarizes a process developed by the Management Services Division (MSD) and Financial Management Division (FMD) concerning collection and/or correction efforts for outstanding balances in the Department of Parks and Recreation registration system (currently PARKS DIRECT), as well as the write-off process for revenue deemed to be uncollectible.
Definitions:
Accounts Receivable: Accounts (Households in PARKS DIRECT) in the registration system that have outstanding balances for programs or services that have already been rendered
Bad Debt: Debt that has been deemed uncollectible and has had it’s revenue postings reversed to remove the outstanding balance
Bad Debt Write Off: The process of removing outstanding balances from accounts, reversing their revenue postings and freezing the accounts to prevent future registrations
Material Bad Debt: Debt owed from one account above $1,000.00
Bad Debt Ratio: The ratio of revenue received to Bad Debt accumulated for a given time period
Facility Staff: Facility Managers and Assistant Managers, or staff of equivalent positions for other operations units
Facility Email Groups: Email groups for a facility/unit that include the Facility Staff assigned to that facility/unit (e.g. [email protected])
Household Tickler Text: A notes field available on Households in PARKS DIRECT where details pertaining to that account can be kept
Collection & Correction Procedures:
The Department of Parks and Recreation is responsible for the correction of Accounts Receivable errors related to their programs. Many corrections are made on an ongoing basis as detected at the facility level. Some are not identified until some time has passed. Effective August 1, 2025 monthly reports are sent to Facility Email groups detailing balances owed toward programs at their facility. Facility staff are to use these reports to contact customers and collect payment for the outstanding balances. Facility staff (with assistance from MSD Help Desk Finance team if necessary) should take action in PARKS DIRECT to collect or correct any balances found to be in error, including any necessary withdrawals, cancellations, discounts, or other fee adjustments.
Effective July 1 2026, a semi-annual report of accounts receivable balances older than 90 days will be prepared by the MSD Help Desk Finance manager (delivered in September and March of each year). The report will be disseminated to the respective Division Chiefs of Recreation & Leisure Services (RLS) and Parks and Facilities Management (PFM), as well as FMD Divisional Budget Coordinators, and the FMD Budget Manager. The report will summarize the accounts to be addressed, their status, the amount owed, the facility/accounting unit to which the money is owed, and any documented collection efforts.
Facility Staff are responsible for verifying that the balance is accurate (that classes were attended, the rental took place, no cancellations/refunds are necessary, etc.), then contacting customers to collect the amount due. If payment is not collected, staff should update the Household based on the following criteria:
| Age of Outstanding Balance | Action to be taken: |
|---|---|
| 0-6 months (0-180 days) | Contact customer to explain balance and collect payment. Document contact attempts in Household Tickler field. |
| 6+ months (181+ days) | Contact customer to explain balance and collect payment (in addition to prior contacts). FREEZE Household using the “Owes Balance” Household Feature. Document contact attempts in Household Tickler field. |
Revenue Write-Offs
The criteria for write-offs will be accounts receivable over 12 months old and deemed to be uncollectible. The MSD Help Desk Finance Unit will prepare annual reports (as of June 30th of each year. For example, all debts for FY25 and older would be written off in FY27) to the Deputy Directors setting forth the accounts recommended to be written off.
The criteria for write-offs of accounts receivable deemed to be uncollectible are:
- The account is over 12 months old
- Collection efforts have been made and are well documented
- Certainty that the account is uncollectible
- Agreement and approval of the appropriate Deputy Director
The report must include the name of the patron, the Accounting Unit and GL Code to be adjusted, and a brief description of the justification for the write-off, i.e. uncollectible NSF check, failure to make scheduled payments, etc. These details should also be documented on the customer’s account in the registration system. A procedure must be in place to assure that individuals whose accounts have been written off cannot register for Department programs or services until payment has been made on the outstanding account balance.
For material bad debt (above $1,000 for a single household), a memo will be prepared by the RLS/PFM Division Chief (with input from Facility Staff and FMD Budget Coordinators) giving a brief summary of the debt incurred, collection attempts undertaken, and preventative measures put in place to avoid a similar situation.
A summary of material bad debt as well as justification memos will be sent to the Director of Parks and Recreation for approval prior to the owing balances being written off.
Reporting and Record Retention
After each Bad Debt Write-Off is performed, a report will be sent to Deputy Directors and FMD Budget Coordinators of the accounts that were written off. Records of the accounts written off will also be kept by the MSD Help Desk Finance Unit in the event the customer returns and is ready to pay off the bad debt, or wishes to have it forgiven.
These records will also include a total dollar amount of the write-off, the total revenue received for that period, and a calculation of the Department’s Bad Debt Ratio. This will help ensure the Department’s Bad Debt Ratio remains within an acceptable threshold.
Bad Debt Repayment & Forgiveness
Should a customer return whose bad debt has been written off, they have the option to pay the bad debt before registering for any programs or services, or they may ask to have the bad debt forgiven if they believe it to be in error. Should a customer proceed with either repayment or forgiveness, the MSD Help Desk Finance Team will perform a bad debt reversal, crediting the appropriate revenue account and placing the balance on the customer account. The MSD Help Desk Finance Unit will update the Bad Debt Write-Off records to reflect the repayment.
Bad Debt Forgiveness will be made at the discretion of the RLS/PFM Division Chief after reviewing the account and history of the debt. The MSD Help Desk Finance Unit will update the Bad Debt Write-Off records to reflect the forgiveness.