|The City of Adak has adopted a billing and collection policy, including provisions for disconnection of service for nonpayment. A substantial amount of customer debt overdue for greater than 90 days has been a problem and is largely responsible for the city's current overdue accounts payable balance. Management of the electric utility was taken over by TDX Power effective December 1, 2008. Now that the city no longer operates the electric utility, it is unclear whether the old electric utility debt will be collected; however, a resolution authorizing filing of small claims actions for accounts with past due amounts of $7,500 or less was adopted by the council in January, 2009. In addition, the City recently filed a law suit against the facility owner, The Aleut Corporation, to collect over $500,000 in past due utility charges for Adak Seafoods. An aged accounts receivable report dated August 21, 2009 indidates that of the $861,31 in accounts receivable, $766,925 is more than 90 days overdue.
The FY10 budget is cumbersome to follow. The City uses QuickBooks software. QuickBooks could be set up to make it easier to read the budget and budget reports. The Administrator reports that he has hired a CPA to work on getting the City accounting records straightened out. |