Quarterly Report: 2012, April - June (Q4), Ekwok

Community:
Ekwok 
Staff:
Robert Madeson  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Ekwok 
Population:
108  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
7/26/2012 
Community Sanitation Overview:
Individual wells provide water for the majority of the community. Approximately 20 HUD homes have individual wells and are connected to a piped septic system. The City operates a piped sewage system with sewage lift station, which connects to a portion of the community, roughly 16 residences. The remaining homes use septic systems or a flush/haul system. The city operates a sewage pumper. Roughly thirty six of 42 homes have complete plumbing. Landfill services are available at no charge. AVEC has operation of the cities electric utility.  
RUBA Status & Activities This Qtr:
On April 10, RUBA staff traveled to the City of Ekwok at the request of the City Council to provide assistance with FY11 and FY12 certified financial statements, review past financial transactions and payroll from FY10 through FY12 for the City of Ekwok. On June 24 RUBA staff returned to Ekwok to work with the city clerk on how to process payroll. RUBA staff trained the clerk on processing 941s, state ESC taxes and filing. RUBA staff also provided training on how to prepare and read monthly financial statements. RUBA staff provided templates for payroll journals, budget, fuel logs, and a receipts journal template.  
RUBA Activities for the Coming Qtr:
RUBA staff will continue to offer assistance for the community of Ekwok. RUBA staff will continue to work closely with Ekwok and Village Safe Water on meeting the requirements for their wastewater project.
Scores:
 
Essential Indicators:
22 of 24
Sustainable Indicators:
14 of 27
Total Score:
36 of 51

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.
Yes 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.
Yes A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
RUBA staff provided assistance in developing a budget for FY13. The budget is realistic. Current budget includes payments for their Bulk Fuel Loan. 30 percent of community revenue sharingSince AVEC took over the electrical utility, the city is looking for other sources of income to include gravel sales and equipment rentals.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
No 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.
No 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
RUBA staff has trained the city clerk on managing payroll, accounts receivables, bank reconciliation, and cash receipts systems. RUBA staff provided EXCEL templates to manage these areas. Currently the acting city manager has been managing these areas until the city clerk has been trained.

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 3/19/12, the Tax Advocate deemed Ekwok non-compliant. On 3/19/12, the Tax Advocate deemed Ekwok non-compliant. Ekwok owes $2,748.77 in back taxes. On 6/12/12 Alaska Department of Labor (DOL) deemed Ekwok non-compliant. Payments were made, the ESC documents were not filed, the ESC report was mailed in during RUBA staff onsite visit on June 27. Ekwok is not listed in The Small Community Tax Lien List.

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.
No 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.
No The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
No The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
No The utility provides training opportunities to staff as needed and available.
Personnel System Comments
The Division of Worker's Compensation web-site verifies current coverage on 07/03/12. The city clerk is in the process of updating personnel files to include I9s, job descriptions, pay rates, letter of acceptance.

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.
N/A 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 council serves as the utility board and operates under a water/wastewater ordinance. The city council is the active policy making body, the city clerk ensures compliance of the open meetings act. RUBA staff is training the city clerk in the responsibilities of the city clerk, financial management, and organizational management. The city clerk attended RUBA sponsored Clerks Training.

Operation of Utility

Essential Indicators
Answer Question
N/A 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
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.
Yes The utility has a safety manual and holds safety meetings.
No 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.
No The operator provides status reports to the manager on a routine basis.
Yes 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 city is not listed on the Significant Non-Complier (SNC) list. The city is not required to have a certified water operator or wastewater operator at this time. RUBA recommends safety meetings be held no less than monthly. RUBA recommends the city stock and maintain a more comprehensive inventory and critical spare parts list including spare tires for the septic pumper.