INUVIK - The town is behind on collecting on debts and needs a senior financial officer to keep the books balanced, said chartered accountant Bob Stewart who presented an otherwise "clean audit" report to council on Feb. 12.

Since Feb. 7, Stewart had been poring over the town's financial records from the last year. He reported to council the town has a million dollar surplus but it could be greater if the town collected more of the money its owed.

Chartered accountant Robert Stewart of Robert Stewart Management Consultants, centre, presented his audit findings to council while his son Bob Stewart, left, a chartered accountant articling student with his company, and Coun. Nick Saturnino, right, look on. - Andrew Rankin/NNSL photo

"You need a senior finance officer on hand to manage the finance staff and make sure those people are following up on their respective duties on a timely and accurate basis," he said. "That's been kind of the gap in this past year since the last senior finance officer left ... If you allow those accounts to be out too long sometimes they become non-collectable."

He said a senior financial officer would know how to bring in maximum funding for the town by way of government grants, for example, which, he added, ultimately benefits residents.

"The better that staff do to get money and spend it wisely, then they can keep things like property tax and utilities down."

Despite the vacant finance position, he said town staff, especially Inuvik's senior administrative officer Sara Brown, has done well managing finances and accessing funding.

"The town has a healthy financial position and has been doing well under the circumstances," he said. While the town continues to try to fill the position through a recruiting agency out of Calgary, Jerry Veltman, the town's former director of finance and senior administrative officer, has agreed to fill the role on a part-time basis, working three weeks at a time with six weeks off in between. He also attended Friday's presentation.

The report was presented at noon Friday and besides Stewart, a colleague, and Veltman, only the mayor, the senior administrative officer and one councillor, Nick Saturnino, were in attendance. Stewart still has to verify third party funding from sources such as governments, before he submits the official audit report to the town, which will contain suggestions on how to "improve internal controls and financial management."

The town would not release the draft audit but will bring the final report to the committee of the whole meeting where councillors will have a chance to discuss the document.

The topic of raising water rates was discussed at the meeting as well. The town's water and sewage service is operating at a deficit of about $60,000 to $70,000. The bylaws which govern water and sewage rates expire at the end of this year. Brown said the town will be looking at setting new rates this year. The town is in the process of budgeting for a $9 million water treatment plant, which is expected to be built in about three years.

But Mayor Denny Rodgers said that doesn't necessarily mean rates will go up.

"We're going to look at that bylaw to see where we are," he said.