Write-Off Policy for Fines under the Provincial Offences Act Deemed Uncollectible

This review was undertaken through consultation with Legal Services, Accounting Services, and Revenue Services. The result of this work is the revised POA write-off policy recommended in this report. The revised policy is in compliance with Public Sector Accounting Standards PS 1201.53 and 1201.54, which stipulate that valuation allowances for financial assets, such as the Allowance for Doubtful Revenue Receivables, are used to reflect any outstanding receivable amounts at their net recoverable value. It is also consistent with the write-off directive and operating guideline issued by the Ministry of the Attorney General in February 2008. To improve the collection of defaulted POA fines, Court Services will be requesting capital funding through the 2020 Budget process for a new information technology system. This request is consistent with Auditor General Recommendation number 8. The revised policy establishes a single set of write-off eligibility criteria for offences under Parts I, II, and III of the POA. This is different from the current policy which has one set of criteria for offences under Parts I and III and another set of criteria for offences under Part II. The revised policy is reflective of Court Services' experience collecting defaulted POA fines and best practices in other Ontario municipalities.

the person convicted and who owes the unpaid amount(s) has been deceased for two years and collection from an estate is impractical or has been unsuccessful; or b. the person convicted and who owes the unpaid amount(s) no longer resides in the Province of Ontario and the fine(s) is for an offence for which there is no mechanism for interprovincial enforcement; or c. the City's primary collection methods, including but not limited to, civil enforcement, tax-rolling, collection agencies, and licence suspension and plate denial, have been, or are likely to be, unsuccessful, as determined by the Controller; or d. where supporting documentation providing proof of the conviction and/or payment to satisfy the amount owed cannot be located, a sworn affidavit is filed with the City by the defendant attesting to the fact they have, in fact, previously paid for the fine(s) and that they do not have in their possession the required documentation to prove such a claim; or e. the operating entity, business, or organization convicted and that owes the unpaid amount(s) has claimed bankruptcy and the City Solicitor has confirmed that civil efforts to collect the amount owing have been unsuccessful or that civil efforts to collect the amount owing are not recommended given that it would likely not result in the successful recovery of the amount owing to the City; or f. the operating entity, business, or organization convicted and that owes the unpaid amount(s) is no longer in operation and has no assets against which the City can pursue a claim, making collection from the defunct entity impractical; or g. the individual or corporation convicted and who owes the unpaid amount(s) cannot be located; or h. a court order or a provincial or federal directive determines the fine is no longer payable or collectible or requires that collection efforts must cease. 2. City Council authorize the Controller or their designate to annually provide the Ministry of the Attorney General with information regarding the total value of all fines deemed uncollectible and written off during the previous municipal fiscal year as part of the Annual Performance and Progress Report to be submitted to the Ministry no later than June 30th of each year.