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Harvard Electric withholds acceptance of December financials amid CCI receivable concerns, approves banking authority changes
Summary
Commissioners agreed not to accept December financial statements until unresolved receivable accounting with CCI is clarified and approved banking-authority updates were authorized to add new staff signers and credit-card access.
A commissioner moved on Feb. 17 that Harvard Electric not accept the December 2025 financial statements until the board and auditors resolve concerns about receivables billed to CCI (a contract counterparty that has not regularly paid). The board agreed to pause acceptance and asked staff and auditors to investigate and reissue corrected statements if necessary.
"Every month that we set out a bill to CCI ... that active billing created a receivable ... and that receivable is ... bogus and that is not an accurate account," the commissioner said, arguing the receivable may not be collectible and that closing the year without adjustment would misstate results. The same commissioner said, "I won't sign off on the closing of our books for 2025 with that dishonesty," and moved the board to withhold acceptance of the December statements until the issue is resolved. The motion was seconded and the board agreed to revisit the matter between meetings or at the next meeting.
Separately, the board addressed short-term administrative banking changes. The Chair explained banks require broader authorities to allow staff to manage accounts and make operational modifications. He moved to authorize the general manager (Scott), controller (Renee) and Karen to have authority to access and modify banking arrangements and to add Renee as a credit-card signatory on the Peoples Trust account. That motion was seconded and approved by voice vote.
In discussion, commissioners directed staff to consult the utility's attorney and auditors, determine if receivables should be written off or provisioned, and report back with recommended accounting adjustments and next steps. The board also confirmed it will reissue financial statements if required and schedule the audit review to allow thorough examination.
