|The City has an adopted collection policy which is contained in Title 10 of the Klawock Municipal Code. The City follows the collection policy and actively pursues delinquent utility accounts. The collection policy is somewhat flexible and contains two discretionary methods for collection of past due accounts. Any customer more than 60 days past due, at the discretion of the city, may either be turned over for collection or the water service will be disconnected. Of the two methods, the community does not favor water service disconnections and will do so only as a last resort. The City uses Ketchikan Credit Bureau Inc. when turning customer accounts over for collections. In addition to the consequences found in the collections policy, the City encourages payment plans and Permanent Fund Dividend (PFD) assignments to avoid collection actions.
The utility bills customers each month. Bills normally go out on or around the 5th of the month. The Administrator acknowledged that bills are periodically delayed due to staff availability to read the water meters prior to the mailing deadline.
The City is currently using accounting software by Cougar Mountain. Cougar Mountain is designed for nonprofit and government entities needing basic general ledger fund accounting. General ledger functionality includes an unlimited number of funds, departments, or grants, as well as inter-fund transfers, fund balancing, and allows multiple grants with varied year ends. A bank reconciliation function is included for reconciling bank statements with actual checks and deposits. The program consists of five integrated modules: General Ledger, Accounts Receivable, Accounts Payable, Inventory, and Order Entry. The City also purchased the Payroll and Purchase Orders modules separately. Each module has standard reports such as income statements, balance sheets, cash requirement and cash flow statements that adequately provide financial information, but are not easily customized without an additional report generating add-on. The General Ledger contains internal controls such as permission settings and audit trails. Accounts Payable Section issues checks, manages vendor information and interfaces with Purchase Orders and General Ledger modules to enable full encumbrance accounting. Accounts receivable module maintains customer account and payment information, documents customer payments and reports past due accounts. Accounts Payable Section issues checks, manages vendor information and prints 1099 and 1096 tax forms. The payroll module automatically posts payroll expenses to the General Ledger and allows direct output printing for 941, W-2, and W-3 forms, and meets payroll reporting requirements for Alaska. The program maintains payroll history for five quarters to allow processing of the current year's payroll before finishing W-2s for the prior year. The company continues to support the software with updates and provides annual IRS Circular E updates for current tax requirements at an extra cost.
The City uses a purchase order system for all purchases and maintains a cash disbursement system to track expenditures. Department heads complete purchase orders which are then submitted for approval. Purchase orders are not always compared with remaining budgeted funds. This has caused a few occasions where purchases have exceeded budgeted amounts.
The Administrator completes monthly bank reconciliations and reports reconciling all bank accounts through February 2009.