December 16, 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 $11,359.79 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 I.H. while she
was a resident at Seven Oaks Home for the Aged; and
(2)the appropriate City officials be authorized and directed to take necessary action to give effect thereto.
Background:
On March 12, 1996, I.H. was admitted to Seven Oaks Home for the Aged, where she resided until her death on December
20, 1996.
At the time of admission, her son, D.W., executed an admission agreement on behalf of the resident in which he agreed to
pay the full monthly accommodation costs as stipulated under the contract. D.W.'s first payment was dishonoured due to
insufficient funds. A letter was immediately forwarded to D.W. advising him of this and requesting a replacement cheque.
A follow up letter and subsequent phone calls went unanswered.
On May 6, 1996, the account was referred to the Legal Department for collection action; at this time, accommodation
arrears of $4,647.26 were outstanding. A letter was forwarded from the Legal Department which also went unanswered.
By August 1996, still no payment had been made to the account of I.H. Arrears were $8,786.39. Homes for the Aged
contacted the Investigations Unit of the Office of the Public Guardian and Trustee, advising them of the case and
requesting their assistance in the suspected financial abuse of I.H. by D.W. The Investigations Unit contacted D.W. in
October 1996 and scheduled a meeting with him which he failed to attend. However, on November 5, 1996, D.W. brought
to Seven Oaks a payment of $2,000.00 towards arrears of $11,967.59. On November 21, 1996, D.W. made a further
payment of $1,000.00 and brought in a letter and a repayment schedule, where he indicated that current accommodation
costs would be paid in full each month, and an additional payment of $300.00 monthly would be made towards the
arrears. This was signed and dated November 20, 1996.
No additional payments were received from D.W. I.H. passed away on December 20, 1996 with arrears owing of
$11,359.79. City Legal Services advised, by memo of December 4, 1998, that their investigation revealed there were no
assets to satisfy a judgment against the estate of I.H. There were indications that D.W., Power-of-Attorney for I.H.,
depleted her assets while she was alive. Two probate searches indicated that no will had been probated and no
administrator appointed. City Legal Services recommended that the outstanding debt 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@toronto.ca
General Manager, Homes for the Aged Division
Commissioner, Community and Neighbourhood Services
