Quarterly Report: 2009, January - March (Q3), 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:
5/8/2009 
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. In the interim, RUBA will maintain this report based upon file documentation.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
23 of 27
Total Score:
49 of 53

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 May 4, 2009, year to date utility revenue is exceeding revenue by $3,288.57 for the month ending March 2009, the most current month reported. Of note, both revenue and expenditures continue trailing budget projections. Also of note, salaries, budgeted at $21,921.25, show no year to date activity although reports from the community indicated water operator staff are employed. In prior quarters the village council reported a sufficient fuel was on hand. 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. The utility is current on electric bills according to the February 2009 monthly report. Septic pumping services are listed in the ordinance starting at $150 per service.

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
ARUC provided a water/sewer ordinance to RUBA which contains a collection policy section. ARUC manages utility billing, accounts payable, receivable, and payroll processing. ARUC reconciles all bank accounts monthly and follows a comprehensive personnel and purchasing policy.

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.
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
According to the IRS Taxpayer Advocate Service on December 30, 2008, the ARUC is meeting its federal tax obligations. During the recent quarter, ARUC informed RUBA of contact with IRS concerning resolution of a federal tax matter. On April 7, 2009 the Alaska Department of Labor (DOL) confirmed ARUC is meeting Alaska ESC tax obligations for the quarter ending December 31, 2008. Of note the ARUC monthly financial report for the month ending March 2009 lists no year to date activity for utility salaries.

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
RUBA has confirmed with ARUC that their Alaska National Insurance Company workers compensation coverage is current through October 1, 2009. RUBA is presently in contact with ARUC to confirm which utility employees are covered by the insurance. The ARUC Agreement on file indicates ARUC does not employ village based utility staff but reports indicate ARUC does provide workers compensation insurance. ARUC manages water/sewer utilities in cooperation with their member utilities and maintains a comprehensive personnel policy, hiring process, job decsriptions, and provides training.

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
The village council entered into a contract with ARUC in recent months assigning ARUC a primary role in utility management. 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.

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. RUBA learned the primary operator now serves as the alternate operator. The utility maintains a basic preventative maintenance plan and 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 dated February 11, 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 as the violation is resolved.