Butkovitz Identifies $5 Million Owed for Police Services

Audit Date: May 30, 2012
Controller: Alan Butkovitz

Executive Summary

For Immediate Release:
May 30, 2012

Contact: Harvey Rice

Butkovitz Identifies $5 Million Owed for Police Services
City Controller’s follow-up report finds 25% decrease in total owed from previous review, but says ‘still significant amount of money on the table to collect’

View Police Receivables Follow-Up Report

PHILADELPHIA – City Controller Alan Butkovitz today released a Philadelphia Police Department Follow-Up Review of Monies Owed the City and found almost $5 million owed for police services by businesses and government agencies. While this is a 25 percent decrease in amounts owed since the Controller’s 2009 report, it’s a significant amount of money the City could be adding to its coffers.

In the Controller’s January 2009 report, it was found that 779 entities owed the City $6.7 million. In the latest report, there are 716 entities recorded as owing the current $5 million. Of the current amount owed, $1.9 million is more than 90 days past due.

“A 25 percent reduction in total amounts owed is a good indicator that collection efforts have improved,” said Butkovitz. “Although, $5 million is still a significant amount of money on the table for the City to collect.”

Total amounts past due for less than three months (90 days) decreased from $4.7 million in 2009 to the $3.1 million currently owed, signaling an improvement in the amount of time the City receives payments for services rendered.

“The longer the City waits to collect for owed services, the less probable it becomes that the City will receive the full payment,” said Butkovitz. “Allowing delinquents to forgo payments for City services is trending cycle in Philadelphia that needs to end immediately.”

The Controller’s follow-up report includes a top 20 list of delinquents with outstanding balances older than 90 days with amounts ranging from $341,329 to $18,549. Nine of the entities on the current list were on the same list in the Controller’s prior report.

To increase revenues owed for police services, the Controller’s report makes the following recommendations:
-the PPD should continue to fully monitor its policy and current system for police services that are provided for recurring delinquents,
-Both the PPD and Managing Director’s Office should coordinate efforts to ensure that all deposits for police services are paid before any services are provided,
-PPD should seek the Law Department to take aggressive action on collecting the outstanding balances, and
-for any government agencies and departments with outstanding balances, funds should be paid and/or transferred from the appropriate accounts so the receivable accounts be adequately managed.