|The utility billing and collection procedures are included in the utility ordinance, adopted in June 2008. According to the March 2012 accounts receivable report, there are past due accounts over 90 days. The utility has steps inplace to collect on delinquent accounts. Payment agreements are in place for delinquent accounts and were made available to RUBA staff. A random review of accounts receivable files indicates that the utility bills are issued within the first six business days of each month as required by the utility's billing procedures. Staff uses QuickBooks for bookkeeping. Customer invoices and payments for each customer are entered into the accounts receivable program. Staff uses QuickBooks for tracking accounts payable. Invoices are entered when received and payments are entered when made. The utility finance officer uses QuickBooks 2011 for financial record keeping, including all payroll records. The bookkeeper is proficient in the use of QuickBooks; all payroll records are up-to-date. The city clerk writes a receipt for any income received. A copy of every receipt is kept in sequentially numbered permanent receipt books. Once a week, new data from the receipt book is entered into the utility's computerized accounting system. All payments are made by check. Every check includes an amount, an expense account and a description of what the payment is for. The data for every check written is recorded in a check register. A copy of paid invoices is kept in the vendor files.
The utility's chart of accounts identifies all asset accounts (undeposited funds, bank accounts, and accounts receivable) all liability accounts (current, long-term and payroll liabilities), and fund balances. Income and expense accounts are identified in a manner that matches the income and expense line items in the budget. Bank reconciliations have been completed through February 2012. The utility adopted a purchasing policy in 2002. The policy requires approval from the mayor for purchases. Of note a Resolution was passed during this reporting period setting a purchase limit and purchasing agent for the city. |