FERRIDAY — Louisiana state auditors reported concerns over the collectability of more than $200,000 in past bills utility customers owe the Town of Ferriday.

The Louisiana Legislative Auditor recently released Ferriday’s audit and the town’s accounts receivable listing includes a total of $234,257 in customer balances.

This is a concern, auditors noted, because the ledger contains many accounts that are uncollectable or do not exist that the accounts receivable is not accurate for determining revenues.

JCP Management Inc., is contracted by the town to operate the water system, including production, delivery, meter reading and billing. The town accounts for the transactions in the general ledger, which is maintained by private, external CPA.

The state auditor recommends that Ferriday leaders and the JCP officials meet on a monthly basis to review the ledger to determine accounts that should be purged from the system.

The audit lists no corrective action had been taken by Dec. 27, 2016.

The town responded to the auditor’s questions about the billing process when addressing the water plant’s construction.

“We have worked diligently in ensuring that the Town’s utility billing and collection practices are accurate and that all accounts are being monitored. We feel that the Town has employed individuals in vital positions who are capable of ensuring that these procedures are carried out and can be positively reflected in the findings of the Town’s audit.”

As of June 30, 2016, the town served approximately 1,500 utility customers — approximately 1,350 residential and approximately 150 commercial.

The town ended June 30, 2015, with a cash balance of $1,656,371 and by June 30, 2016, the cash balance was up more than $1 million to $2,743,783.

The town budgeted expenditures at $2,728,925 and revenue at $2,554,075. However, actual expenditures were more than budgeted by $19,593 and revenue was $21,043 less than budgeted.

Factoring salary, court fees and reimbursements, former Mayor Gene Allen was paid $61,918.

The five aldermen were paid $5,900 each.