|The City of Galena uses QuickBooks Enterprise Solutions for all of its financial and accounting needs. The in-house accounting staff consists of one person, the receptionist who sends out customer bills and receives payment. A CPA from Anchorage was recently hired, she is a former Mikunda, Cottrell employee.
A collection policy is in place; city ordinance states that all city services will be discontinued for non-payment until payment is made. The city is reinstating a finance charge on delinquent accounts. As of June 14, outstanding customer payments for the last three months total $82,246 and approximately 26 customers have unpaid balances greater than 90 days which is more than the collection/disconnection policy allows.
The accounts payable aging summary report for FY11 shows that the city is keeping current with bills, which is an improvement from the last assessment in 2008 which showed the city as being delinquent with vendors. The city has outstanding debt, primarily a result of the base closure, but successfully received a one percent, 15 year loan, with the Alaska Municipal Bond Bank for a total amount of $2.45 million.
As is standard with all QuickBooks products, an adequate system is in place for tracking, recording, and reporting transactions. A wire bound receipt book is used for all customer payments and the receipt is given to the customer while they are in the office. The receipt book is used to enter payments against the customer balance into QuickBooks; this is a daily occurrence. Day-do-day purchases have been restricted; the city is taking a firm stance on purchases to control expenses. All purchase requests must be approved by the city manager who, along with the clerk, are the only employees with access to city debit cards. The budget vs. actual report shows that expenses are now greater than budgeted, which indicates that the purchases are not being compared to the budget.