|The utility billing and collection procedures are included in the utility ordinance adopted January 2004. According to the accounts receivable aging summary, there is a large amount past due of greater than 90 days. The utility states that they have taken steps to collect delinquent accounts; a disconnection of service policy is in place and said to be enforced. Payment agreements are in place for the delinquent accounts and were made available to RUBA staff. Review of the A/R does not reflect the utility is following policies. The review of accounts receivable aging summary indicates that the utility is not issuing monthly bills as required by the utility's billing procedures. QuickBooks accounting software is used to record customer invoices and payments in the accounts receivable program. QuickBooks is also used for tracking accounts payable; however, invoices are not being entered when received, and payments are not entered when made. The utility finance officer uses QuickBooks 2012 for financial record keeping, including all payroll records. The bookkeeper has received training in the use of QuickBooks through classes sponsored by the RUBA program.
The city clerk writes a receipt for any income received. A copy of every receipt is kept in sequentially numbered permanent receipt books. It does not appear that 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 the payment. The data for every check written is recorded in the check register. A copy of paid invoices is kept in the vendor files. The utility's chart of accounts identifies all asset accounts (un-deposited 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 have not been completed on all accounts. The utility adopted a purchasing policy in 2002. The policy requires approval from the administrator for purchases. There is a verbal understanding by staff that up to $5,000 will receive approval by the administrator: any purchases in excess will require council's approval.