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 $7,005.37 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.C. while
she was a resident at Cummer Lodge 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 16, 1988, M.C. was admitted to Cummer Lodge Home for the Aged where she resided until her death on
December 27, 1996.
At the time of admission, her spouse, R.C., executed an admission agreement on behalf of the resident in which he agreed
to pay the full monthly cost of care as stipulated under the contract. For several years, R.C. made regular monthly
payments for M.C.'s cost of care. In late 1992, the account went into arrears. The Home forwarded letters and made phone
calls to R.C. in an attempt to collect the outstanding arrears. Payments were made, but they were somewhat sporadic.
R.C. experienced failing health in late 1992 and passed away during the first half of 1993. T.D., a friend of R.C. and M.C.,
was then appointed power of attorney for M.C. It took several months for T.D. to take control of M.C.'s monthly income
and assets. On November 1, 1993, T.D. signed an admission agreement contract with the Homes for the Aged, assuming
responsibility to pay for accommodation costs of M.C. from that day forward. At this time, accumulated arrears owing on
behalf of M.C. totalled $7,550.05.
T.D. made only a few payments and, in March 1994, the account was referred to the Legal Department for collection
action. In July 1995, M.C.'s pension cheques were redirected to the Home. The Division continued to pursue the
outstanding amount owed, and T.D. eventually remitted full payment for costs accruing from November 1, 1993.
M.C. passed away on December 27, 1996. After final accounting was completed, outstanding arrears totalled $7,005.37.
An examination of the assets and income of M.C. and her estate confirmed that payment of the final balance of arrears
was not possible. M.C. died intestate, with no spouse or issue or any other next-of-kin. Since the City of Toronto Homes
for the Aged is the only known creditor and we have taken receipt of all known assets of the estate to reduce our loses, we
have determined that the estate of M.C. is insolvent. The arrears owing at this time are $7,005.37.
On April 27, 1998, City Legal Services 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@toronto.ca
General Manager, Homes for the Aged Division
Commissioner, Community and Neighbourhood Services
