City Offices, Facilities, and the Library and Computer Center will be closed for the Thanksgiving Holiday

City Offices, Facilities, the Library and Computer Center will be closed for the Thanksgiving Holiday starting Thursday, November 24, through Sunday, November 27, 2022

Takoma Park Direct Cash Assistance

Takoma Park Direct Cash Assistance in-person application events on Wednesday, December 7, and Thursday, December 8

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Allowance for Doubtful Accounts Policy

 

In accordance with Generally Accepted Accounting Principles and under the recommendation from its auditor, the City has established an Allowance Policy. The concept of the policy is to provide a consistent method of calculation for adequate provision for doubtful accounts.

Doubtful accounts represent monies owed to the City with a certain risk of collectability. (These were formerly known as “bad debt.”) These accounts include revenue receivables for Property Tax, including Personal Property and Inventory Tax. The allowance provision is based on the aging of the receivable accounts to calculate an equitable “reserve” that acknowledges that some of the receivable balances may not be collected in the future. The City’s Finance Director will make an annual calculation of allowance provision and submit to the City Manager for approval. A review of uncollectible accounts will be considered during the annual budget process and allowance adjustment must be presented via budget amendments for Council consideration. The first allowance provision for Fiscal Year 2020 is in the amount of $19,000 and is included in the budget amendment being considered by the Council this month.

Review the full policy, click here

Finance Sections