THE MARYLAND-NATIONAL CAPITAL PARK & PLANNING COMMISSION

Department of Finance

PL04-017

June 8, 2004

To: Marye Wells-Harley, Director of Parks and Recreation
Trudyne Morgan Johnson, Executive Director

From: Patricia Colihan Barney, Secretary-Treasurer

Subject: Smartlink – Error Corrections and Write-Offs

The Finance Department and the Department of Parks and Recreation have been working together on procedures to handle account receivable balances and the correction of errors to the Smartlink system.

This memorandum summarizes, subject to your approval, a process developed by Finance staff and Area Operations staff concerning Smartlink corrections and the write-off of revenue deemed to be uncollectible.

Correction of Errors:

The Audit Division has found in the course of their audits instances where account receivable balances were incorrectly deleted from Smartlink by the processing of a “withdrawal”. Audit Division staff and Smartlink staff have jointly addressed this concern and the Smartlink staff have instituted additional internal controls to address the concern. In addition, the Audit Division will review the appropriateness of these procedures in the course of their audits.

The Department of Parks and Recreation is responsible for the correction of Accounts Receivable entered for their programs. Many corrections are made on an ongoing basis as the audits of individual program accounts are conducted. Since some time has passed since the effective date, a quarterly report of Accounts Receivable corrections needs to be made for accounts pending more than 60 days which are entered by the Smartlink manager. After appropriate review by Area Operations Director, they will forward the facility list to Finance for approval. With the exception of the error, the patron involved with Smartlink involved. After appropriate review by Area Operations Director, they will forward the facility list to Finance by the Smartlink manager to the Finance Department for final approval. Other error corrections (pending less than 60 days) can be made by the Smartlink manager.

Revenue Write Offs:

The Prince George’s Planning Board is the final approving authority on material write-offs of accounts receivable deemed to be uncollectible. The criteria for write-offs will be accounts receivable over six months old and deemed to be uncollectible. Department staff would prepare quarterly reports via the Deputy Director and the Director of Parks and Recreation to the Secretary-Treasurer 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 six 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.

Uncollectible accounts should be analyzed and procedures put in place to reduce similar occurrences in the future.

The report must include the name of the patron, the OCA and object 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. Reports will be sent to the Secretary-Treasurer via the Director of Parks and Recreation for approval of the Prince George’s Planning Board if material, prior to the accounts receivable being written off. A procedure must be in place to assure that individuals whose accounts have been written off cannot register for a Commission program until payment has been made on the outstanding account balance.

Review these recommendations and let me know if you have any suggestions. We very much appreciate the assistance of Parks and Recreation staff in developing these proposed guidelines.

cc: Robert Voegtlin Gene Giddens Mike Brett Al Warfield Philip Litman