|The City of Galena uses QuickBooks Enterprise Solutions for all of its financial and accounting needs. The accounting staff consists of three staff persons, an A/R clerk, A/P clerk, and a finance director. A collection policy is in city ordinance and states that all city services will be discontinued until payment is made. This appears to be very effective, as the collection rate is quite high. There are a number of customers with a very nominal balance owed ($1-$40) that appear to pay every other month. The collection rate is 84%, but if customers with balances less than $50 are excluded, (doing so would provide a more accurate picture because customers with small balances owed do pay as opposed to those with recurring delinquent accounts) then the collection rate is averaged at 95%.
According to the Accounts Payable Aging Summary report for FY 08 the City has some large outstanding bills. For the periods: 1-30 days $38,000; 31-60 days $107,000; 61-90 days $3,000: and greater than 90 days $395,000 (amounts are all rounded). If any general statement were to be made based on the report, it would be that the total amounts owed are to only a few entities and that the City is not delinquent to a great number of suppliers. It should be noted that RUBA staff has limited access to financial reports and cannot make any conclusions other than those based on the reports provided. Galena uses QuickBooks Enterprise Solutions, which is not compatible with QuickBooks Pro, so further research is not possible.
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-to-day purchase requests go though a chain of command up to the city manager and finance director who has control of city credit cards. RUBA staff does not know if every purchase is compared to the budget prior to approval. For large purchases, approval of the city council is required and council revenue tracking is done with monthly financial reports. At the time of the RUBA assessment, the main bank account was last reconciled on April 30, 2008; city staff told RUBA staff that the contracted CPA will be making monthly visits and reconciliation will be one of his duties. This report will be updated when documentation of this task being completed is received.|