|Yakutat Municipal Code Chapter 11.30 discusses collections policies for the community’s water/wastewater utility. Section 11.30.100 permits the borough to shut off water to any premise delinquent on payment for 60 days after the bill is mailed. However, it does not require shut-off, as this is not always an option. Not all customers have shut-off valves, and those that do are not necessarily known to the utility. Rather, section 11.30.130 provides for a delinquency collection policy including small claims court and liens. The billing clerk reports that the bill is sent out by the 15th of each month, and payment is due 30 days after billing. Customers are delinquent as of 60 days after the billing date. At this time, they are notified by either certified letter or phone call. If payment is not made at this point, a further certified letter is sent with a specified time period for payment to be completed. If payment is not complete by this time, the customer is sent to small claims court, and payment is then generally forced through PFD payments or wage garnishments. The collection policy has been successful in ensuring a high collection rate. At this time, most delinquent accounts are customers no longer residing within the community.
The utility utilizes the Abilia accounting system, which tracks all accounts receivable, accounts payable, and payroll.
Accounts receivable is maintained by the billing clerk and assistant billing clerk. Bills are sent out by the assistant billing clerk, and receivables are managed by the billing clerk. Cash is frequently received as payment for utility bills. When a customer pays in cash, the payment is recorded in a duplicate cash receipt book, and the customer is provided with a copy of the receipt. The system is then entered into the accounts receivable system and posted to the appropriate customer account, and all deposits are sent to the bank once per month, as there is no bank within the community.
Payroll is completed semi-monthly. All employees complete a timesheet which is signed by department heads or the manager. The finance director then codes each timesheet to the appropriate department and processes payroll and withholdings.
Accounts payable is maintained by the finance director. When invoices come in, they are placed in a folder and input all at once, including coding. An invoice report is run at the end of the week which is double checked for accuracy. Payments are then posted, checks printed and signed by the borough manager, and copies placed in the appropriate folders. There is no cash disbursement within the borough, other than a $500 petty cash system, which is maintained and reconciled regularly by the finance director.
When utility staff needs to place a work order, a borough work order form is completed and submitted to administrative personnel. The work order must be signed off by the borough manager, and is then submitted to the financial director for finance action. There is an adjoining work order log maintained by the finance director which matches up to a work order form number, and includes information such as date submitted, date completed, department, and task description. The finance director assigns all expenses to the appropriate budget category, and ensures there is sufficient funding in each category to complete the work requested.
Bank reconciliations are completed monthly by the finance director, and evidence was provided as such. The borough is audited annually, and the FY13 audit was a comprehensive single audit, and no findings were identified.|