Quarterly Report: 2013, April - June (Q4), Nunapitchuk

Community:
Nunapitchuk 
Staff:
Eli Jacobson  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Nunapitchuk 
Population:
496  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
7/24/2013 
Community Sanitation Overview:
The City of Nunapitchuk operates the washeteria, water treatment plant, garbage collection, landfill/lagoon, and the flush haul system for the community. The utility services provide water deliveries and wastewater haul-out to residential customers connected to the flush haul system. Those not connected to the flush haul utilize the container haul system. Wastewater containers are emptied into one of two wastewater lagoons, one on each side of the river. The city provides piped water to the school. Teacher's housing, located in the old school, has an independent water and wastewater system that still needs improvements. Plans are underway for a piped watering point for the other half of the community located on the other side of the river. There are also plans to close and fill in the old sewage bunkers and lagoon.  
RUBA Status & Activities This Qtr:
On April 24, RUBA staff traveled to Nunapitchuk to conduct a RUBA assessment for the City of Nunapitchuk. The city provides a water/wastewater flush haul utility and a washeteria for the community. RUBA staff met with the city clerk and mayor for two days to complete the assessment. During this time the water operator gave RUBA staff a tour of both water treatment plants. The mayor signed the authorization to request federal tax information and documentation was gathered with the clerk pertaining to the management of the utility. The city has met most of the essential and sustainable indicators. RUBA staff and the clerk discussed the budget and the need for an amendment to make it balanced and realistic. RUBA staff completed the draft report and sent it to the community for a ten day review. On June 4, 2013, the assessment for Nunapitchuk was finalized. The city has five essential indicators remaining to gain RUBA compliance in the areas of Utility Finance, Tax Problems, and Operation of Utility. The city clerk is taking measures to meet these remaining indicators. 
RUBA Activities for the Coming Qtr:
RUBA staff will continue to work with the city on the remaining indicators.
Scores:
 
Essential Indicators:
22 of 26
Sustainable Indicators:
15 of 27
Total Score:
37 of 53

Finances

Essential Indicators
Answer Question
Yes All revenues and expenses for the utility are listed in the utility budget.
No The utility has adopted a balanced realistic budget.
No 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.
Yes YTD expenditures are at a level equal to or below those budgeted.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The City of Nunapitchuk has an adopted FY13 budget. Both the washeteria and water/wastewater utility expenditures exceeded revenues and therefore it is subsidized from the general city budget. However, the city has budgeted $78,000 less revenue than planned expenditures. Additionally, ten months into the fiscal year the actual revenue is $663,410.19. The budgeted revenue for the whole year is $884,309 equaling a difference of $220,898.81. Therefore, the budget is not balanced or realistic. Monthly financial reports are prepared but the meeting minutes do not reflect distribution to the governing body. Alaska Village Electrical Cooperative communicated that the City of Nunapitchuk is current on electric bills, and the utility has a one-year supply of heating fuel. The city does not have a repair and replacement fund established. Year-to-date revenues are below budget, but year-to-date expenditures are also below budget. A monthly manager's report has not been submitted to the council. The council meets on the second and fourth Mondays but necessary amendments to the budget have not been made.

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 of Nunapitchuk has an adopted collection policy. Billing statements are sent to customers on the first of the month. Ledgers are used to track customer accounts and these ledgers are then entered into QuickBooks. All Nunapitchuk vendor files are kept in a file cabinet. The files record how much money is being paid to each vendor monthly. QuickBooks is used for payroll. All incoming and outgoing money is recorded on ledgers and then also entered into QuickBooks. The city's chart of accounts is in QuickBooks. The city clerk reconciles the bank accounts monthly. The city clerk can approve purchase of fuel less than eight gallons for city vehicles. All other purchases require the mayor's approval.

Tax Problems

Essential Indicators
Answer Question
Yes The utility has a system to accurately calculate, track, and report payroll tax liabilities.
No The utility is current on filing tax reports.
Yes The utility is current on making tax deposits.
N/A 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 May 1, 2013, the IRS deemed the City of Nunapitchuk not compliant with federal tax filing requirements. The State Department of Labor verified that the City of Nunapitchuk is current on their Employment Security Contributions account. The City of Nunapitchuk is not in the Lien Watch dated March-April 2013.

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.
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.
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
Nunapitchuk's workers compensation insurance is through the Alaska Municipal League Joint Insurance Association, Inc. for the period from July 1, 2012 through July 1, 2013. A personnel policy has been adopted and is in use. The utility has written job descriptions for all positions. A copy of the city clerk position was provided as a sample. The utility does not have a written hiring process. Personnel folders do not include I-9's, job applications, and letters of acceptance for every employee. The utility has a 90-day probationary period with an evaluation at the end. On-the-job training and additional training opportunities are provided as necessary. Staff are encouraged to pursue further training opportunities.

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 City of Nunapitchuk owns the utility and the city council is the policy making body. The policy is enforced by denying customers service that owe over $100. The city clerk was hired September 2012 and performs managerial duties. The city clerk supervises the bookkeeper and the operator. The operator has been employed since December 2012 and is being sent to training. The ordinances provide the city staff the authority they need for operation. The organizational structure is informally known, but an organizational chart has not been adopted. The policy making body meets the second and fourth Monday of each month, which is open to the public. The city clerk posts meeting notices in eight public places five days in advance.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
No The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
No 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.
No The utility has completed and distributed its "Consumer Confidence Report".
Yes The utility is not on the "Significant Non-Complier" (SNC) list.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The utility's operator is a permanent part-time employee. The operator has been sent to training and has plans for additional training. The utility does not have a written preventative maintenance plan. The city clerk is in daily contact with the utility operator, but does not spot check the facility. The utility does not have a safety manual or hold regular safety meetings. The utility is functioning as intended and no major outages have occurred. The operator provides verbal reports to city clerk. A CCR has not been posted. The city is not on the SNC list dated April 2013. The utility does not have an inventory control, or critical spare parts list.