Homes for the Aged - Uncollectible Accounts
The Community Services Committee recommends the adoption of the following reports from the Commissioner of
Community and Neighbourhood Services:
(i) (May 27, 1999)
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 $15,618.11 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.E. while she
was a resident at Castleview Wychwood Towers; and
(2)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.
Background/History:
On October 31, 1995, E.E. was admitted to Castleview Wychwood Towers Home for the Aged where she resided until her
death on February 4, 1999.
At the time of admission, a friend and pastor, J.C., executed an admission agreement on behalf of the resident, in which he
agreed to pay the full monthly cost of accommodation as stipulated under the contract. Regular payments were made up
until July 1997 when cheques began being returned "not sufficient funds". Letters were forwarded to J.C., and telephone
contact was attempted in an effort to collect the arrears. J.C.'s estranged wife advised the Division that J.C. had returned to
Latvia and provided an e-mail address for him. Several messages were relayed to him there; all went unanswered. Many
payments over the next several months cleared the bank but by March 1998, accommodation arrears had grown to
$7,240.26 and the account was then referred to the Legal Division, as all efforts to collect by the Division were exhausted.
The Legal Division attempted contact with J.C. both through the mail and via e-mail without success. A letter was then
forwarded to the Office of the Public Guardian and Trustee (PGT) requesting their consent to an application under s.22 of
the Substitute Decisions Act, 1992, to have the PGT appointed as the guardian of property for E.E. A reply had not yet been
received when, on February 4, 1999, E.E. passed away.
The Legal Division wrote to the Public Guardian and Trustee requesting them to make a court application to have the PGT
appointed as the administrator of E.E.'s estate. The Office of the Public Guardian and Trustee advised that the PGT would
not be applying to become estate administrator due to the insolvency of E.E.'s estate. Legal Division also learned that J.C.
would not be returning to Canada and verified that neither J.C. nor his wife owned the residence in which J.C.'s wife
resided.
The Legal Division advised that service of court documents in Latvia would be difficult, and even if successful in obtaining
judgment against J.C., it would be unlikely that it would be enforceable in Latvia due to the prohibitive costs. Accordingly,
on May 13, 1999, 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. Staff from the Finance
Department and the Legal Division have been consulted and 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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(ii) (May 27, 1999)
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 $14,832.64 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 R.G. while
she was a resident at Cummer Lodge; and
(2)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.
Background/History:
On December 2, 1993, R.G. was admitted to Cummer Lodge Home for the Aged where she resided until her death on
February 23, 1999.
At the time of admission, her spouse, J.G., executed an admission agreement on behalf of the resident in which he agreed
to pay the full monthly cost of accommodation as stipulated under the contract. In early 1994, the account became
delinquent and numerous letters were forwarded to the spouse in an attempt to collect the arrears. In June 1994, the account
was forwarded to the Legal Division, as all efforts to collect by the Home were exhausted. Arrears owing totalled
$7,765.22.
Legal action was immediately commenced and a Statement of Claim was issued. In May 1995, judgment was obtained in
the amount of $17,991.72 plus costs in the amount of $350.00, plus interest at the rate of 10 percent per annum from May
2, 1995. A Writ of Seizure and Sale was then issued and filed with the Sheriff in these amounts.
R.G.'s pension cheques were redirected to the Home in May 1995, ensuring that arrears did not continue to accumulate.
Subsequent attempts to contact J.G. were not successful. We were advised that J.G. was no longer employed and he had
since moved from his former residence.
In September 1997, the Homes for the Aged received an application for admission for J.G. It was then learned that J.G. had
filed for bankruptcy, had experienced failing health, and the Office of the Public Guardian and Trustee had taken over the
management of his finances. The Homes for the Aged contacted the PGT and advised them of our claim. In September
1998, the Office of the Public Guardian and Trustee remitted payment of $2,955.24 towards the arrears of R.G.
R.G. passed away on February 23, 1999. After final accounting was completed, outstanding arrears totalled $14,832.64.
In May 1999, the Legal Division advised that there were no further steps that could be taken by their division to collect the
outstanding arrears. Given that they had obtained judgment, and considering J.G.'s current health status and his personal
bankruptcy, they advised it would not be useful to conduct a judgment/debtor examination, and recommended that we
proceed to write off this account.
Conclusion:
The account is uncollectible and authorization to write-off the outstanding balance is requested. Staff from the Finance
Department and the Legal Division have been consulted and 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
