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Council presses staff to clean up Market House accounts receivable, seek consistent vendor enforcement
Summary
Council members and staff spent substantial time on a review of the Market House accounts‑receivable report, expressing concern about long‑outstanding vendor balances, possible past informal arrangements and inconsistent enforcement. Management pledged a written vendor policy, accelerated collections and monthly reporting to council.
Council members used the Oct. 28 meeting to press borough staff for a plan to address long‑standing accounts receivable (AR) tied to Market House vendors.
A council member pointed to several entries on the borough's AR report that show longstanding vendor arrears and said some balances may reflect "side deals" made before current management. The council member asked how management determines whether items listed are truly owed and at what point the borough should stop issuing rental clearances or rental licenses if fees are unpaid. "At what point do we say we write this off? It's uncollectible," the council member said (00:26:42).
Market House management and the borough finance office told council they plan to develop a written, consistent vendor policy to replace ad hoc practices. The Market House manager said she has already begun enforcement with vendors in arrears and has set a November 1 deadline for one vendor to pay or face access suspension. Management described steps to escalate collection action at 30 and 60 days and to meet with vendors to clarify expectations. "This is a priority for the management team. We will take a close look at it," the Market House manager said (00:26:42).
Council and staff also discussed the mechanics of accounting and timing: reports may show a balance on a given statement date that has been partially paid since; staff said they will supply more current reports to council when requested. Bonnie, the borough secretary/treasurer, confirmed she had received an updated AR run before the meeting and will work with managers on weekly or biweekly reporting until the issue is cleaned up (00:22:69).
Council asked staff to bring a proposed vendor policy back to council for review and to present a recommended list of receivables to be written off (if any) for formal council approval. Staff said the governing document is the vendor contract and that enforcement will rely on contract terms, but that a clearer escalation and communication plan would be provided.
What council directed: develop and present a written vendor policy with consistent enforcement steps; provide an updated AR report to council on a regular schedule (staff suggested weekly or monthly updates); and pursue collection actions consistent with the contract and council direction.
Speakers quoted in this article are Market House manager and Bonnie (secretary/treasurer); several council members questioned staff and requested follow up.
