|The city has adopted and actively follows the collections policy outlined in Title 7 of the Coffman Cove Municipal Code. According to that policy, utility accounts more than 45 days delinquent are subject to the following collection actions: assessment of late payment fees, service charges, disconnection from water and sewer service, denial of other city services, e.g. harbor, internet, and garbage, and the account may be referred to a third party collection agency. Customers may appeal any decision resulting in a collection action to the city council at the next regular council meeting.
Utility bills are mailed to customers the first week of each month using an invoice or utility statement, depending on whether there are multiple services being billed or any past due amounts. Payments are then due by the 25th of each month and are considered delinquent after 45 days of nonpayment.
The city is currently using QuickBooks accounting software for their accounts receivable, accounts payable, and payroll. 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. The city administrator and city clerk have approval authority for general purchases. Section 4.04.050 of the city code mandates that purchases of supplies, materials, equipment, or contractual services costing more than two thousand dollars require prior approval of the city council.
Incoming funds and other transactions are recorded using a written receipt logbook system. In that system, city staff provide customers with a written receipt whenever funds are received for city services. The receipts detail the amount received, the date, and the payment's purpose. Payments are then recorded in a logbook and later entered into the QuickBooks accounting system. A comparison of the logbook and QuickBooks entries showed that receipts of payment are properly recorded and transferred each week. Bank reconciliations, however, are not performed regularly.|