Reconciliation of Utility Billings, Collection and Delinquent Accounts in the (Internal Contol Deffiencies: Section D) of the 2014 State Audit for the City of Lorimor

(D) Reconciliation of Utility Billings, Collections and Delinquent Accounts – Utility billings, collections and delinquent accounts were not reconciled throughout the year. In addition, the City does not have a written policy pertaining to write-offs of delinquent utility accounts or in assessing late fees. Also, adjustments to accounts were not approved or supported. Pre-numbered receipts are not issued for all utility collections not accompanied by a prenumbered utility stub.

Recommendation – Procedures should be established to reconcile utility billings, collections and delinquent accounts for each billing period. The City Council or other independent person designated by the City Council should review the reconciliation and monitor delinquent accounts. The review of the reconciliations should be documented by the signature or initials of the reviewer and the date of the review. The City should establish a formal written policy for writing off delinquent accounts and charging late fees. Additionally, all write-offs should be supported and approved by the City Council. For payments received without a prenumbered utility stub, pre-numbered receipts should be issued