Quarterly Report: 2009, April - June (Q4), South Naknek

Community:
South Naknek 
Staff:
Ralph Andrew  
DCRA Regional Office:
 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
South Naknek Village 
Population:
74  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
8/10/2009 
Community Sanitation Overview:
Individual water wells and septic systems serve the majority of the community; others use the piped water and sewer system. Roughly 30 homes are connected to the piped water and sewer systems. Two permitted landfills are available; one operated by the Bristol Bay Borough and one by a private fish processing company. Power lines cross the Naknek River 5 miles east of Naknek and connect to South Naknek. 
RUBA Status & Activities This Qtr:
A RUBA Assessment of Management Indicators was conducted for South Naknek May 21-23, 2008 at the request of the village council. Since then, the village council and the Alaska Native Tribal Health Consortium Alaska Rural Utility Collaborative (ARUC) reported to RUBA that they jointly signed a contract for ARUC to manage the water/sewer utility. To date, ARUC has provided RUBA a monthly financial report and other documentation. RUBA continues to recommend a RUBA Assessment be conducted and will maintain contact with ARUC. In the interim, RUBA will maintain this report based upon file documentation. RUBA will further update this report upon completion of the Assessment. The details provided in each Assessment category below presents a summary of the most current information made available to RUBA. The village council continues working with the Alaska Native Tribal Health Consortium (ANTHC) to plan upgrades to the public water/sewer system with a focus on improvements to the wastewater system. 
RUBA Activities for the Coming Qtr:
RUBA will maintain contact with the ANTHC Alaska Rural Utility Collaborative and provide assistance upon request. RUBA continues to recommend a RUBA Assessment be conducted and will maintain contact with ARUC.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
23 of 27
Total Score:
50 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.
No YTD revenues are at a level equal to or above those budgeted.
No YTD expenditures are at a level equal to or below those budgeted.
Yes A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
In ARUC budget for federal fiscal year 2009 appears balanced and realistic. ARUC produces monthly finanical reports that include a year to date total for each line item. According to ARUC on July 1, 2009, year to date activity through May 2009 has utility revenue exceeding expenditures by roughly $4,500. Of note, both revenue and expenditures continue falling behind budgeted projections. Budgeted revenue is listed as just over $90,000. The current ordinance notes residential water/sewer monthly rate of $70 per month - an increase over the rate the village council reported to RUBA in 2008 of $45 per month. Septic pumping services are listed in the ordinance starting at $150 per service. In prior quarters the village council reported a sufficient fuel was on hand. The May 2009 report shows no year to date activitiy for electric expenditures.

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 ARUC bills customers consistently. ARUC operates under an agreement with the village council and a water/sewer ordinance that includes a collections policy. Of note, reported collections appears stronger than the prior quarter, suggesting collections efforts are effective since summer season revenue for some rural utilities diminishes temporarily. ARUC maintains a workers compensation policy and uses computerized accounting to monitor and track finances. ARUC maintains accounting records including accounts payable, receivable, and payroll under direction of a utility manager based in their central office in Anchorage. ARUC maintains a chart of accounts, reconciles bank accounts, and utilizes a purchasing system that requires approval prior to purchase.

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
On July 6, 2009, the IRS reported that ARUC, the managing entity for this utility, is compliant with federal tax reporting and deposit requirements. On June 19, 2009 the Alaska Department of Labor (DOL) confirmed ARUC is meeting Alaska ESC tax obligations for the quarter ending March 31, 2009. ARUC uses accounting software to process payroll out of their Anchorage office.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
Yes The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
Yes The utility has adequate written job descriptions for all positions.
Yes The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
Yes The utility has an adequate written hiring process.
Yes The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
Yes 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
Workers compensation insurance coverage, purchased for ANTHC through Alaska National Insurance Company is reportedly current until October 1, 2009. ARUC abides by a comprehensive personnel policy, maintains personnel folders, utilizes a probationary period for new hires, and provides training opportunities to staff. Water operator staffing now appears in the monthly financial report. A prior quarter report did not show salary activity.

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
Yes 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
ARUC oversees water/sewer utility management with the village council through a written, contractual agreement signed by the South Naknek Village Council and ARUC in October 2008. ARUC provided RUBA a water/sewer ordinance reported to have been adopted by South Naknek's village council. ARUC manages customer billing and enforces collections. Utility staff are trainined and receive training opportunities. According to the agreement, ARUC is to meet with an advisory council that includes representation from the community. RUBA requests confirmation that the advisory committee is in fact meeting and being provided operational and financial information as outlined in the ARUC agreement.

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.
Yes 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
In prior quarters, the primarly water operator possessed certification for Water Treatment OIT, Water Distribution OIT according to the Alaska Department of Environmental Conservation operator database. The utility maintains a basic preventative maintenance plan and the primary operator, in May 2008, voiced plans to update the operations manual. The current operations manual includes schedules for critical tasks and parts. An Alaska Department of Environmental Conservation (ADEC) report updated May 2009 indicates the South Naknek water system is on the Significant Non-complier list for failure to complete monitoring for Nitrate. RUBA recommends contact with ADEC to facilitate resolution of the violation. RUBA requests a copy of the 2008 Consumer Confidence Report.