|The day-to-day business of the community's tribal and city governments is tied closely by a memorandum of agreement and renewed every two years. Because user fees collected from customers of the Native Village of Kwinhagak's water and wastewater utility do not cover expenses incurred in its operation, both tribal and city budgets were reviewed. The Joint Muni-Tribal General Fund FY11 Budget found on the Native Village of Kwinhagak Community Development Site website along with several other financial documents provided by the tribe were used in this assessment. Documents verifying the tribe's adoption of the budget on July 16, 2010 and the city's adoption on August 11, 2010 were also provided. Even though the tribe's water and wastewater department runs at a deficit, significant revenues are given to the IRA council from the city via the memorandum of agreement. The city's sales and fish taxes, Payment In Lieu of Taxes, and Community Revenue Sharing funds are transferred to the tribe to cover the water and wastewater operating deficit.
Minutes from eleven council meetings from July 2010 through January 2011 do not document that council members were provided an opportunity to review monthly financial reports. Monthly financial statements provided by the tribe from FY09 through FY11 show only income and revenue for the water and wastewater utility which operates at a deficit each month. A 'council friendly' monthly financial report format should be used that at least includes columns for the 'budgeted amount', 'year to date', and 'balance' for revenues and expenditures of all departments and grants. A 'current month' column in the monthly report would also be helpful. Another option to satisfy this essential indicator would be to provide council members with a QuickBooks Profit and Loss by Class report for each department, grant and project along with a Profit and Loss, Budget versus Actual report. The monthly report should clearly show the bottom line for each department or grant as well as the tribe/city as a whole. Without monthly financial reports containing this information, it is hard to determine if revenues or expenditures are above or below those budgeted. Meeting minutes should document that council members have had the opportunity to review and accept monthly financial reports.
Correspondence received from Alaska Village Electric Cooperative, Inc. on February 25, 2011 indicated that the IRA council is not current in paying its electric bills. Significant amounts are thirty and sixty days, past due even though payments were made on several of their accounts on February 11, 2011. The tribe made no payments on their accounts between November 3, 2010 and February 11, 2011.
The IRA council staff indicated that 17,820 gallons of heating fuel was delivered on July 10, 2010 and 5,333 gallons was delivered on September 30, 2010. According to the public works director as of March 1, 2011 the tribe had 13,522 gallons of heating fuel on hand which he indicated would be adequate to cover heating needs until their next delivery planned for June of 2011.
Repair and replacement or capital replacement schedules for the water and wastewater department were not included in the FY11 budget or monthly financial reports that were provided. Monthly manager's reports for the water and wastewater department were not contained in council meeting minutes from July 2010 through January 2011, nor was there any mention of amendments to the FY11 budget.