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• The account remains unpaid after the lesser of four years or the applicable <br /> period for commencement of a recovery action (statute of limitations); <br /> • The debtor cannot be located, nor any of the debtor's assets; <br /> • The debtor has no assets and there is no expectation they will have any in the <br /> future; <br /> • The debtor has died and there is no known estate or guarantor; <br /> • The debtor is a company which is no longer in business; <br /> • The debt is discharged through legal action (bankruptcy or court judgment); <br /> • The debt has been forgiven by action of the City Council. <br /> II. Preparation of Request for Write-Off of Accounts Receivable <br /> At least annually, each department will identify any accounts receivable for which <br /> it is responsible that meet the criteria for designation as an uncollectible account. <br /> A request for write-off of accounts receivable will be prepared by departmental <br /> staff, signed by the department head, and submitted to the Director of Finance. <br /> The request for write-off of accounts receivable must include an itemized list of <br /> the uncollectible accounts to be written off specifying the following: <br /> • Debtor name; <br /> • Account balance; <br /> • Due date; <br /> • Brief description of receivable type; <br /> • Criteria under which the account was deemed uncollectible; and <br /> • Account number of the receivable in the City's accounting system. <br /> For each uncollectible account, documentation must be attached to the request <br /> to support the uncollectible account designation and substantiate that the <br /> department has followed its collection procedures and exercised due diligence in <br /> its collection efforts. Due diligence documentation could include: <br /> • Invoices, reminder letters, or collection letters (and any documentation that <br /> are returned as undeliverable, no known forwarding address, etc.); <br /> • Information from the California Department of Corporations; <br /> • Referral to the City's collection agency; <br /> • Bankruptcy claim and any related plan or discharge; <br /> • Judgment awarded by a court or settlement agreement; and <br /> • Notice of discontinuation of services. <br /> 2 <br />