|Akiachak's FY10 budget and monthly financial statements do not include the following expenses: past due electric bill to Akiachak Limited, past due accounts to Crowley Petroleum Distribution for their 2009 fuel purchase, projected fuel costs, amounts for back taxes to IRS, accounts payable for back gaming fees (2006-2009), and payments to Akiachak Bulk Fuel Tank Farm for its share in the farm's operational and maintenance and renewal and replacement costs.
The business manager and accountant indicated that verbal and written financial reports are submitted at their tribal meetings, but minutes from the December 2009 tribal meeting fail to mention a financial report. Hard copies of the December 2009 and January 2010 monthly financial reports were provided to RUBA and are on file. The financial reports do not provide adequate detail to determine if the utility can be run without a deficit.
The tribal council should be provided with monthly financial statements that give a complete picture of the tribe's revenues and obligations. The council's review of the monthly financial reports should be consistently documented in the minutes of tribal meetings and a copy of the reports should be forwarded to RUBA's Bethel office.
RUBA staff contacted Akiachak Limited (the community's electric company) on March 5, 2010 and was informed that a payment was made to their account on January 26, 2010, however, their remaining balance was four times the amount of the average monthly bill. Monthly expenses for electricity for the water and wastewater plant are 50-60% of the tribe's total bill. Part of the delinquency is due to the refusal to pay waste heat charges for the water treatment plant despite having a contract to do so.
The administrator informed RUBA staff that ANC had 30,000 gallons of bulk fuel available which he projected would last until September of 2010. Bethel RUBA staff contacted Crowley Petroleum Distribution on March 5, 2010 and was informed that ANC had a substantial past due balance and was accruing significant late charges on the account. Crowley also indicated that they had not been contacted regarding the outstanding bill.
The tribal business manager informed RUBA staff that ANC did not qualify for a bulk fuel loan from Alaska Energy Authority because AN does not have a current State of Alaska gaming permit. RUBA staff contacted the Department of Revenue regarding this matter and was informed that the tribe has not had a gaming permit since 2006 and is responsible for paying state gaming fees for the years they continued gaming without a permit. The tribe has contacted the Department of Revenue and is attempting to get into compliance.
There is also a significant outstanding balance to the Akiachak Bulk Fuel Tank Farm for ANC's share in the operational and maintenance and renewal and replacement costs of the fuel facility. |