|The Chilkat Indian Village of Klukwan follows the calendar year. RUBA staff have not received updated FY13 budget information or updated quarterly information.They did not draft or adopt a FY12 budget. Without a current budget, it is not possible to adequately compare year-to-date revenues and expenditures, nor for the village council to ensure finances are in line and appropriate.
The village's FY11 budget outlined sufficient and realistic expenditures for the water utility, including repair and maintenance costs. However, revenues were not sufficient to cover expenditures. According to the FY11 Profit and Loss report, the water utility ran a deficit of $6,748. In FY11, the village received $36,020 in Community Revenue Sharing. This was sufficient to subsidize the water utility deficit. In FY12 the village received $37,114, and in FY13 the village will receive $52,643. With the use of Community Revenue Sharing as a subsidy source, the utility is able to cover all operating expenses and basic repair and replacement costs. Thus far in 2012, according to the accrual-basis profit and loss reports, the water utility is netting positive. However, the village's water utility collection rate as of June 2012 was 55 percent with a delinquency rate of 45 percent. Many customers paid off delinquent accounts after receiving PFD payments, thus the delinquency rate is now likely much lower than 45 percent. However, the utility is still not collecting enough user fees to cover operating expenses. In recent years, Community Revenue Sharing has been sufficient to subsidize the cost of the water utility.
The village council requests financial reports periodically, though this is not currently a regular practice. When requested, accrual-basis year-to-date profit and loss and balance sheets, along with a manager's report, may be provided to the council. The village undertakes full audits every year, due to receiving state and federal funds exceeding $500,000. Currently, most of these funds are in the form of various grants for specific projects. The village accountant takes all recommendations made in audit results and makes changes as necessary. The water utility receives its electricity from Island Power Electic Cooperative (IPEC), which bills on a monthly basis. The village provided evidence of payment, and reports having sufficient money on hand to purchase fuel as needed from nearby Haines.|