Metro Hall
55 John Street
Station 1113, 11th Floor
Toronto, ON M5V 3C6
Tel: (416) 392-8906
Fax (416) 392-4180
Community and
Neighbourhood Services
Homes for the Aged Division
July 29, 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 $7,725.82 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 F.M. while he was a resident at Kipling Acres Home for the Aged;
and
(2)the appropriate City officials be authorized and directed to take necessary action to give
effect thereto.
Background:
On November 13, 1992, F.M. was admitted as an emergency admission to Kipling Acres
Home for the Aged, where he resided until his discharge on September 3, 1993.
F.M. signed the admission agreement contract on his own behalf, agreeing to redirect his
pension income to Kipling Acres to pay for his accommodation costs.
However, pension cheques were not received at the Home and arrears began to accumulate.
The Home's administration staff met with F.M. to discuss unpaid costs and, at that time,
F.M. authorized letters to redirect his pension income to the Home. When cheques did not
arrive, investigation revealed that F.M. had subsequently redirected his income to an outside
address. Income Security Programs advised that several changes of address were processed
upon request of F.M. F.M. refused to reveal the mailing address and stated that "OHIP
should pay for my cost of care".
Only three cheques were received from F.M. for his accommodation costs during the length
of his stay. The account was referred to the Legal Department for collection as all efforts to
collect by the Home were exhausted. F.M. discharged himself from the Home on September
3, 1993 with arrears owing of $7,725.82.
F.M. responded to the letter from the Legal Department advising them that he had no money
to pay our account. He further indicated that his only source of income was his Old Age
Security and Canada Pension Plan cheques. F.M.'s assertions as to his financial status would
seem to be born out by the fact that he was admitted to Kipling Acres from Seaton House, a
men's hostel. The Legal Department did not proceed to court believing that even if
successful, they would have a paper judgement only, which would be unenforceable. In this
regard, Old Age Security and Canada Pension Plan income cannot be garnisheed.
Furthermore, they advise that they found nothing to indicate that F.M. had any other sources
of income. The Legal Department recommended that we write-off the outstanding arrears.
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
