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 $7,544.75 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 E.D. 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 August 21, 1991, E.D. was admitted to Cummer Lodge Home for the Aged, where she resided until her death on
July 21, 1997.
At the time of admission, her son, B.D., executed an admission agreement on behalf of the resident. Shortly after
admission, B.D. failed to remit payment, and in December 1992, the account was referred to the Legal Department, as
the Home's efforts to collect the outstanding arrears were exhausted. At the time, $8,496.91 was owing. The Legal
Department issued a Notice of Claim to B.D., and full payment was received in January 1993. In February 1994, the
accounts of E.D. had arrears owing in the amount of $10,261.30, and once again, the Legal Department was requested to
contact B.D. to collect the balance due. The majority of these arrears were created by a dishonoured cheque received in
September 1993 for $7,610.49. The process of collection was delayed as B.D. had relocated to St. John's, Newfoundland,
making it increasingly difficult to contact him. With the arrears accumulating at the rate of $1,182.27 per month, by the
time B.D. returned to Toronto in July 1994, the accounts of E.D. showed a balance owing in the amount of $14,990.38.
E.D.'s pension cheques were then redirected to the Home, ensuring payment of current arrears. Another claim was issued
against B.D., and in October 1994, a payment of $7,000.00 was received. In March 1997, B.D. filed for bankruptcy. On
July 21, 1997, E.D. passed away. E.D. died intestate with no known assets or income due to the estate. An Estate Court
search in Toronto confirmed that there were no monies available in the estate. On April 20, 1998, the Legal Division
recommended that we proceed to write-off the balance owing.
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
