Homes for the Aged - Uncollectible Accounts
The Community and Neighbourhood Services Committee recommends the adoption of the following reports from
the Commissioner of Community and Neighbourhood Services:
(a) December 16, 1998
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 the 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 November21, 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
Chief Financial Officer and 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
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(b) December 16, 1998
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 the 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
Chief Financial Officer and 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
