June 9, 1998

 To:Community and Neighbourhood Services Committee

 From:Commissioner, Community and Neighbourhood Services

 Subject:Homes for the Aged - Uncollectible Account

  Purpose:

 To obtain authorization to write-off an uncollectible account.

 Funding Sources, Financial Implications and Impact Statement:

 The cost associated with this bad debt will be accommodated within the Division's operating budget. Based on current funding arrangements, the cost of uncollectible accounts is shared equally with the Province. A total of $5,367.56 in accommodation arrears is outstanding. There will be no further accumulation of arrears; resident is deceased.

 Recommendations:

 It is recommended that:

 (1)authority be given to the Homes for the Aged Division to write-off the arrears accumulated on behalf of M.I.H. while she was a resident at Cummer Lodge; and

 (2)the appropriate City officials be authorized and directed to take necessary action to give effect thereto.

 Background:

 On September 13, 1988, M.I.H. was admitted to Cummer Lodge Home for the Aged, where she resided until her death on September 2, 1995.

 At the time of admission, her son, N.H., executed an admission agreement as guarantor for the resident. Monthly payments were received consistently from September 1988 until February 1995, at which time the account went into arrears. No subsequent payments were received from the guarantor. In May 1995, the account was referred to the Legal Department for collection purposes, as all efforts by the Division to satisfy the account had failed. A demand letter was sent to the guarantor on June 20, 1995; no response was received. Additional letters sent from the Legal Department were returned by Canada Post. The Legal Department made every effort available to locate the guarantor, including a request for a driver's licence search with the Ministry of Transportation and Communications, which came back as "unknown".

 Because N.H. could not be located, the Legal Department was unable to serve a Statement of Claim on N.H. and recommended that the account be written off.

 Conclusion:

 The account is uncollectible and authorization to write-off the outstanding balance is requested. The City Solicitor and the City Treasurer concur with the recommendation to write-off this outstanding debt.

 Contact Name:

 Sandra Pitters, General Manager, Homes for the Aged Division

Tel: 392-8907; Fax: 392-4180; E-mail: sandra_pitters@metrodesk.metrotor.on.ca

General Manager, Homes for the Aged Division

Commissioner, Community and Neighbourhood Services