|The accounting systems seem to be well organized. The utility has a collection policy. The utility does not follow all the specific procedures of the collection policy, because of concern that disconnecting customer service during the winter months may result in operational problems (actual service disconnections are performed in the summer months). Nonetheless, the utility is active in trying to enforce collections. Customers are billed on a regular monthly basis and the utility mails out customer statements each month. The customer statements provide information regarding invoiced items, amounts billed, payments, and balances. The accounts receivable system tracks customers and reports current and past due accounts and amounts in a satisfactory manner: accounts receivable can be sorted by class (departments). The QuickBooks payroll system is used to correctly calculate payroll and maintain payroll records.
All income received is recorded on sequentially numbered receipts in permanent receipt books, and income data is entered into the computerized system on a daily basis: the system identifies the source, amount, and purpose of each income transaction and posts the amounts to the appropriate department and line item. All expenditures are made by check (except for small petty cash expenses) and all checks are recorded in the computerized accounting system, where they are posted to the appropriate department and account.
Bank reconciliations were being completed on a regular basis through March 2009, but without seeing documentation we cannot confirm that they are current. The purchasing system includes the use of purchase orders which must be submitted and approved before purchases are made.|