|The utility bookkeeper uses QuickBooks Pro 2011 for financial recordkeeping, including all payroll records. The bookkeeper is proficient in the use of QuickBooks: payroll records are known to be up to date through February 2013. The utility clerk writes a receipt for any income received. A copy of every receipt is kept in a permanent receipt book. At the end of the day, 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. Copies of paid invoices are 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 are know to have been completed through February 2013.
The utility does not require purchase orders for proposed purchases. There is a verbal understanding that all purchases that exceed $1,000 require the approval of the mayor.