COM 0623.000 1996-1998 - Laserfiche WebLink

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~ x<Y O/ M. ~ Donna Fay K. Kiyosaki Chief Engineer itephen K Yamashiro Mayor Jim A. Sumada Deputy Chid Engineer re or x• ~II1tTCf>y1 D~ ~tIfUFlti DEPARTMENT OF PUBLIC WORKS 2S Aupuni Street, Room 202 • Hilo, Hawnii 96720-4252 (808)961-8321 • Fax (808)961-8630 November 25, 1997 TO: Connie Kiriu Legislative Auditor FROM: Peter Boucher, Division Chief Wastewater Division SUBJECT: Current Year's Observations and Recommendations of the Draft Financial Audit Report FY ended June 30, 1997 Thank you for the opportunity to comment on the auditor's report concerning Sewer Accounts Receivable. Recommendation: The Director of Public Works should formalize and enforce credit, billing and collection policies and procedures for the department; consider using a private collection agency to collect on its accounts receivable greater than 90 days; and take a more pro-active approach in its collections. The County may also record an allowance for doubtful accounts and write-off uncollectible balances. The Administration is continuing to negotiate with the Department of Water Supply to handle the billing and collection functions. DWS has planned to hire a consultant to evaluate their whole financial system. At such time as the consultants complete their work and DWS implements their new billing system, it is expected that WWD billing would be integrated with DWS. DWS & WWD personnel will continue to discuss plans for the consolidation. On May 10, 1997, the Administration proposed to amend Chapter 21, Hawaii County Code to authorize the shutoff of water service by the Department of Water Supply to enforce the collection of sewer user fees. However, on June 17, 1997 Bill No. 97-98 was deferred by the Finance Committee pending follow up. In the meantime, the Division is already performing as well as possible with the current staff. The workload is constantly increasing and at this time, we are -12-