City approves credits to reimburse hospital

Published 1:34 am Tuesday, January 22, 2008

By Staff
Fitness center overbilled because of software fault
By MIKE VOSS
Contributing Editor
Washington’s City Council signed off on a plan to refund $169,225 to Beaufort County Hospital in the form of credit to the hospital’s water and sewer bills.
From January 2005 through August 2007, the city overcharged LifeStyles Medical Fitness Center at Beaufort County Hospital $169,185.56 for water and wastewater treatment. An account audit discovered the billing error, according to city officials.
The city will credit $71,337 to the hospital’s water bills in 12 monthly installments of $5,649 from February through January 2009. A final credit of $3,500 will be given in February 2009. The city will credit $97,880 to the hospital’s wastewater-treatment bills in 12 monthly installments of $7,783 from February through January 2009. A final credit of $4,452 will be given in February 2009.
The credits will mean the city’s water and sewer funds will lose revenue.
Smith’s memorandum indicates the likelihood of increases in water and sewer rates is unlikely this fiscal year.
The council learned of the billing error in late summer of 2007. The reason this error occurred is because the city uses the same software for its water, sewer and electric billing.
The company that provides the city’s billing software was instructed to lock out or eliminate that multiplier field for all water and wastewater accounts.