|The city's chart of accounts is set up through the QuickBooks program. The city has been using QuickBooks since 2007. Utility customers are billed regularly on or before the 20th of each month in accordance with the collection policy. The city clerk inputs the Accounts Payable for the utility customers and cuts checks every Wednesday.
According to the city council minutes dated August 9, 2011, the city introduced an amendment based on a sample amendment for consumer complaints about the utility; the amendment passed at the August 10, 2011 meeting.
The city administrator supplied RUBA staff with eight spreadsheet pages showing the city's transactions by account for the quarter ending December 31, 2012. The cover page summarized the utilities collection rate - the amount billed, the amount collected and the rate of collection for each month in the quarter. The total rate of collection for the quarter ending December 31, 2011 was 104.25 percent which demonstrates the city is actively pursuing and successfully collecting past due accounts and amounts. Customers that have an old debt for utility services are asked to agree in writing to be charged an extra $20 on all their subsequent utility bills until their old debt is paid off.
An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records. A cash receipt system is in place that records incoming money and how it was spent. A chart of accounts is used that identifies categories in a reasonable, usable manner. The administrator provided a chart of accounts and an actual utility bill. Monthly bank reconciliations have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. The mayor approves all purchases.
The city administrator and the city clerk both input data into QuickBooks. In addition, a Certified Public Accountant, Joyce Herr, is paid a regular salary to review all the accounts monthly and sometimes more frequently. The administrator and clerk call the CPA whenever they have a question. The same CPA completed a Certified Financial Statement for the city last year. She keeps her own version of the city's books so she can quickly identify and rectify any discrepancies that may come up in her review of the QuickBook entries the city administrator or clerk makes in the city's QuickBooks program, and to provide direct instruction.
The administrator provided RUBA staff with a chart of accounts, the city's collection policy that was revised in 2006 in the utility ordinance, an aging summary, and a bill statement that showed the proper format that was being used.