Quarterly Report: 2012, July - September (Q1), Akhiok

Community:
Akhiok 
Staff:
Brice Eningowuk  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Akhiok 
Population:
71  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
10/26/2011 
Community Sanitation Overview:
Water is derived from a dam and reservoir on a small stream, which is treated and stored. Akhiok provides a piped gravity water and sewer system that serves all 25 homes in the community. Electricity is provided by the City of Akhiok. 
RUBA Status & Activities This Qtr:
The fuel watch survey shows the city ordered and paid for $104,500 worth of diesel on August 15, 2011 and the delivery was on September 9, 2011. 
RUBA Activities for the Coming Qtr:
The City of Akhiok is currently meeting all of the essential capacity indicators. RUBA staff is available to provide assistance to help meet any sustainable capacity indicators that are currently not being met.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
16 of 27
Total Score:
43 of 54

Finances

Essential Indicators
Answer Question
Yes All revenues and expenses for the utility are listed in the utility budget.
Yes The utility has adopted a balanced realistic budget.
Yes Monthly financial reports are prepared and submitted to the policy making board.
Yes The utility is current in paying all water/wastewater electric bills.
Yes The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.
Yes The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
No The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
Yes YTD revenues are at a level equal to or above those budgeted.
Yes YTD expenditures are at a level equal to or below those budgeted.
Yes A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The City of Akhiok has adopted a realistic balanced FY11 budget. All revenue and expenses for the water/wastewater utility are listed within the budget. The council has a line item for the subsidy of the water/wastewater utility within the budget. RUBA staff has worked with the vice-mayor to create a manual reporting system and financial reports are being prepared and submitted to the policy making body. The financial reports will compare actual income and expenditures to the budgeted amounts. The city owns the electric generator that supplies electricity to the community and the water treatment plant. The water and wastewater revenues are not sufficient to cover operating expenses; therefore the city subsidizes its water and watsewater utility with a combination of the electric utility revenues and office space rental from the local Native Corporation. The water operator reports verbally to the council.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
Yes The utility bills customers on a regular basis.
Yes An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
Yes An accounts payable system is in place.
Yes The payroll system correctly calculates payroll and keeps records.
Yes A cash receipt system is in place that records incoming money and how it was spent.
Yes The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
Yes A chart of accounts is used that identifies categories in a reasonable, usable manner.
Yes Monthly bank reconciliations have been completed for all utility accounts.
Yes The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts.
Accounting Systems Comments
The city council has an adopted a water/wastewater ordinance that includes sections on billing and collections. The community has been notified as to why the council must enforce collections. The community has been supportive of the policy. RUBA staff assisted the city in creating a manual system that is easy to use and helps get the billing out by the fifth of each month. Customers are charged $30 per month for combined water, wastewater and garbage service. Each monthly invoice shows the date of billing, a description of services, amount due, cost of service, amount paid and total balance due. A manual system is in place for tracking and reporting accounts receivable, accounts payable and payroll. Due to the small size of the community, this manual system for reporting is effective and sufficient. The current system for cash receipts is for staff to write a receipt of payment to the customer, enter the payment on the customer's account ledger and then the mayor or vice mayor makes a deposit to the bank. The city uses a checkbook register to record who checks are written to with payments entered on another ledger that tracks which class or account the funds are expended from. Monthly bank reconciliations are completed manually. Purchases for the utility are discussed by the mayor and vice mayor to confirm if the purchase is necessary and there are funds available in the budget. Major purchases are discussed by the entire council prior to ordering.

Tax Problems

Essential Indicators
Answer Question
Yes The utility has a system to accurately calculate, track, and report payroll tax liabilities.
Yes The utility is current on filing tax reports.
Yes The utility is current on making tax deposits.
Yes If there are any past due tax liabilities or recorded tax liens, a lien release has been issued or a repayment agreement has been signed and repayments are current.
Tax Problems Comments
The IRS report was sent to the IRS on October 3, 2011 and has not processed the request as of 10/4/11. The state ESC report from September 30, 2011 states that the city is in compliance with state tax filing, deposits and is on the July-August 2011 lien watch. State of Alaska, Department of Labor and Workforce Development, Employment Security Division states that the City of Akhiok is compliant with federal tax filing and deposits. The City of Akhiok is on the July-August 2011 Lien Watch, but confirmation from the State ESC has the city as compliant and the lien release needs to be added to the recorders office.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
No The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
No The utility has adequate written job descriptions for all positions.
No The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
No The utility has an adequate written hiring process.
No The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
No The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
Yes The utility provides training opportunities to staff as needed and available.
Personnel System Comments
The City of Akhiok currently has a workers compensation insurance policy through Alaska Municipal League/Joint Insurance Association valid until 7/1/11. The city does not have a personnel policy or current job descriptions for employees; however, the utility has requested RUBA assistance in creating a policy and job descriptions. The utility does not have a written hiring process. Job notices are posted with the job title and description for ten days. Interested applicants apply at the city office. The utility's personnel folders are orderly and contain the employees W-2, I-9 and other pertinent information. The files do not include a copy of the job application and description. Training opportunities to staff are provided as funds allow or opportunities by other sponsors become available.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
Yes The policy making body is active in policy making of the utility.
Yes The policy making body enforces utility policy.
Yes The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
Yes The utility has an adequately trained operator or operators.
Yes The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.
Sustainable Indicators
Answer Question
No The utility has adopted an organizational chart that reflects the current structure.
Yes The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The council strives to hold monthly meeting when a quorum is available. Copies of recent meeting minutes were provided. Although enforcing actions of disconnections has historically been difficult, the community currently understands the importance of the policy and is supporting the city on the policy. A city employee attended a Personnel Management Training in December 2010. The vice-mayor/utility operator attended the Elected Officials Management for Rural Utilities training class in April 2010 as well as an Organizational Management for Rural Utilities training in 2007. The Mayor attended a Financial Management for Rural Utilities training in 2006 and a QuickBooks training in 2008. All trainings were provided by the RUBA program. The current utility operator is trained and holds a Provisional Level 1 certificates in both water treatment and water distribution. The city recently adopted a water/wastewater utility ordinance that is based on the Regulatory Commission of Alaska (RCA)model utility ordinance.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
Yes The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
Yes The manager receives a monthly O&M report from the utility operator and routinely "spot checks" the facilities to see that the maintenance items are being completed.
No The utility has a safety manual and holds safety meetings.
Yes Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
Yes The utility is operating at the level of service that was proposed.
Yes The operator provides status reports to the manager on a routine basis.
Yes The utility has completed and distributed its "Consumer Confidence Report".
No The utility is not on the "Significant Non-Complier" (SNC) list.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The preventative maintenance plan for the existing system is on file. The utility operator is trained and holds Provisional Level 1 certificates in both water treatment and water distribution, which expire on 12/31/2010 The utility operator reports to the council when there is a problem or he can foresee one. The utility does not meet all required drinking water regulations. The city is currently on the SNC list for monitoring violations for Stage 1 Disinfectants and Disinfectant By Products Rule and the Surface Water Treatment Rule. The utility operator and council try to keep needed critical spare parts on hand. There is a written inventory and spare parts list for the plant.