HomeMy WebLinkAboutN-403 - Accounts Receivable-City Claims for DamagesCITY OF PASCO
ADMINISTRATIVE ORDERS
Administrative Order No. 403
Finance
Subject: Accounts Receivable I City Claims for Damages
Revised 03 /06/17
Approved ~
Initial Effective Date:
September 7 , 2012
The following Administrative Order is effective March 6, 2017, and supersedes Administrative
Order No . 403 dated September 7 , 2012.
I. PURPOSE:
This Administrative Order is intended to foster a common understanding and consistent
use of internal procedures designed to assure timely collection and proper accounting of
all monies due the City as payment for damage to City property or equipment caused by
others.
II. DEPARTMENTS AFFECTED:
All.
Ill. ATTACHMENTS:
Exhibit A -Property Damage Letter
Exhibit B -Insurance Claim Letter
Exhibit C -Claims for Loss or Damage to City Property
IV. POLICY:
1. Any claims for monies owed to the City by another party, as a result of loss or
damage to City property or otherwise, shall be identified by the operating department
responsible for such property, and reported to the Finance Director or designee in the
manner prescribed by this order.
2. Once properly inform ed , the Finance Department shall be responsible for timely
billing, collection and accounting of such amounts owing to the City; provided,
however, the respective operating department shall be responsible for submitting
complete documentation and providing coordination with legal and follow-up if
necessary.
3. In the event that damage to City property/equipment is sustained as a result of action
that is under review by a court , the Finance Director or designee shall provide
information to the Prosecutor to confirm and substantiate the City's claim.
4. This policy is not intended to cover claims occurring as a result of contractual
relationships (for example, construction contracts where the contractor is required to
repair damage, etc.).
V. PROCEDURES:
1. Documentation: as soon as possible after becoming aware of a claim, departments
shall compile information necessary to support the City 's claim for damages,
including as applicable: accident reports, incident reports, repair estimates,
photographs, other party insurance policy information, etc., and forward to the
Finance Director or designee.
2. Claim: the Finance Director or designee shall provide for preparation of a letter
outlining the claim with demand for payment (see sample letter Exhibit A, attached)
and forward the claim information and demand letter(s), attached to "Request for
Billing" form (Administrative Order 402) to the accounts receivable clerk. The
accounts receivable clerk will prepare a City of Pasco invoice and mail it with the
claim.
3. Claim/Insurance Co : When an insurance company is known, the Finance Director or
designee will provide for the preparation of a notice of claim to the insurance
company, with copy to insured (see Exhibit B, attached). The Finance Director or
designee will coordinate with the operating department and the insurance company to
reach a settlement and advise Accounts Receivable of monies due.
4. Tracking: Accounts Receivable shall notify the Finance Director or designee in the
event that payment is not received within 90 days. The Director or designee shall
consult with the City Attorney for cases requiring legal services .
AO No. 403 "Accounts Receivable/City Claims for Damages"
Page 2
Name
Address
City, State Zip
DATE
EXHIBIT A
Administrative Order #403
RE: Claim for Damage
Dear ---
The City of Pasco hereby files its claim for damages as a result of (incident) on (date) in which
the City sustained damages to its (property). The City believes you are liable for the damage.
Please see the attached (estimate, etc.) which outlines the City's cost in repairing/replacing its
property.
The City hereby demands payment in the amount of$ (list amount) within(# of days) days as its
fair compensation for the damage. Please remit payment per the attached invoice. If you have
any questions in this matter, please contact (list name and phone number of director/manager).
Sincerely,
Name
Title
AO No. 403 "Accounts Receivable/City Claims for Damages"
Page 3
Name (insurance company)
Address
City, State Zip
RE: Notice of Claim
Your Insured: -----------------PolicyNo.: ________ _
Dear ---
DATE
EXHIBIT B
Administrative Order #403
Notice is hereby given of the claim of the City of Pasco for damages to its (property) as a result
of (incident) on (date). The City believes your insured is responsible for the damage.
Please contact the undersigned for additional information in resolving this case.
cc: Insured
Sincerely,
Name
Title
AO No. 403 "Accounts Receivable/City Claims for Damages"
Page4
EXHIBIT C
Administrative Order #403
Claims for Loss or Damage to City Property
Per Administrative Order No. 403 "Any claims for monies owed to the City b y another party, as
a result of loss or damage to City property or otherwise, shall be identified by the operating
department responsible for such property. Department shall compile information necessary to
support the City 's claim and return to Finance Director or designee to coordinate timely billing,
collection and accounting of monies owed to the City."
Date Damage Occurred: ------------------
Responsible Party Name:----------------------------
Responsible Party Address:--------------------------
Responsible Party Phone:---------------------------
Address where Damage Occurred:-----------------------
Damage Description:----------------------------
DarnageArnount:$ ____________________________ _
Is Damage the Result of Action under Review by a Court? (If yes, which Court?) _____ _
Check box and attach the documentation to support the claim:
0 Pasco Incident Report 0 Responsible Party Insurance Info
0 Pasco or WSP Accident Report 0 Repair/Replacement Estimate
(on City or vendor letterhead)
0 Photos of Damage 0 Other
Department is responsible for submitting complete documentation and providing
coordination with legal and follow-up if necessary.
Division Manager or Dept. Director Contact Phone Number
AO No. 403 "Accounts Receivable/City Claims for Damages"
Page 5