December 9, 1999
To: Community 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.
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 $11,551.63 in
accommodation arrears is outstanding. There will be no further accumulation of arrears; resident is deceased. The Chief
Financial Officer and Treasurer has reviewed this report and concurs with the financial impact statement.
Recommendations:
It is recommended that:
(1) authority be given to the Homes for the Aged Division to write-off arrears of $11,551.63, which accumulated on behalf
of B.S. 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 26, 1992, B.S. was admitted to Cummer Lodge Home for the Aged, where she resided until her death on
October 16, 1997. At the time of admission, her daughter, S.B., executed an admission agreement as guarantor, in which
she agreed to pay the full monthly cost of accommodation as stipulated under the contract.
In October 1992, B.S. was transferred to a semi-private room in the Special Care Unit, and charges for preferred
accommodation commenced. By mid-1993, payments received from S.B. were returned "NSF", and by November, regular
payments became sporadic. Collection letters resulted in a $5,000.00 payment in March 1994; however, regular monthly
payments had ceased. From May through to August 1994, Home staff telephoned, corresponded and had meetings with
S.B., receiving promises that payments would be submitted. None were received. By August 1994, arrears in the amount of
$9,551.67 had accumulated and the account was referred to Legal Services for collection action. A demand letter was sent
from Legal to S.B. requesting payment. No payment was made. Home staff subsequently learned that S.B. and her husband
had both been out of work for a period of time, during which they lived off the pension income of B.S.
In April 1995, the resident's pension cheques were redirected to the Home for payment of S.B.'s accommodation costs to
prevent further accumulation of arrears. Legal Services continued to pursue the collection of the outstanding arrears,
including making an offer to settle, but were not successful. On October 16, 1997, B.S. passed away at Cummer Lodge,
and a claim against the estate of the late B.S. in the amount of $11,551.63 was issued. We were advised that the estate was
insolvent. In October 1999, Legal Services advised Homes for the Aged that no further legal action should be taken and
recommended that the outstanding arrears be written off.
Conclusions:
The account is uncollectible and authorization to write-off the outstanding balance is requested. Staff from Legal Services
have been consulted and concur with the recommendation to write-off this outstanding debt.
Contact:
Sandra Pitters, General Manager, Homes for the Aged
Tel: 392-8907; Fax: 392-4180; E-mail: SPitters@toronto.ca
Sandra Pitters
General Manager, Homes for the Aged
Shirley Hoy
Commissioner, Community and Neighbourhood Services
