Quarterly Report: 2014, April - June (Q4), Kipnuk

Community:
Kipnuk 
Staff:
Ken Berlin  
DCRA Regional Office:
Bethel regional office 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Native Village of Kipnuk 
Population:
656 2013 Department of Labor Estimate 
Assessment Status:
Assessment Completed 
Assessment Date:
2/20/2013 
Exp Date:
 
Last Updated:
6/26/2014 
Community Sanitation Overview:
A new 210,000 gallon water storage tank is filled from a reservoir on a nearby lake; residents haul treated water from several watering points. Honeybuckets are hauled by the village to a sewage lagoon. Homes are not plumbed. Construction has begun on infrastructure improvements, including a new reservoir pumphouse, a water treatment plant and sewage lagoon. The Village Council collects refuse and maintains the Class III permitted landfill. The Kipnuk School needs additional funds to complete its bio-pure sewage treatment plant and increase storage capacity. 
RUBA Status & Activities This Qtr:
The Kipnuk Traditional Council has not adopted a calendar year budget for the last three years and has not drafted or completed finance reports. In early May 2014, RUBA staff received and reviewed the Kipnuk Traditional Council's CY14 budget. The CY14 budgets are separated into departments, operating grants, and other grants by expenditure, but there is no revenue sources listed or summary sheets for the revenues and expenditures. After reviewing the CY14 budget staff send back the budget with recommendations to list all of the revenue sources and also summary sheets for the revenues and expenditures. A sample city budgeting format was included to use as a guide. This will make it easier for staff to determine if the CY14 is balanced or more work needs to be to balance it out. The current bulk fuel loan for the Kipnuk Light Plant is delinquent and the Kipnuk‚Äôs CRS and 50% of the communities PCE reimbursements will be assigned to DCRA to pay off the loan. On May 23, 2014 a loan approval was made for a spring fuel delivery. The technical assistance contractor is planning to visit the community to assist with the process of qualifying the community facilities for PCE reimbursements. Kipnuk Light Plant is owned by the Kipnuk Traditional Council. RUBA staff received an e-mail from the Kipnuk Traditional Council's administrative and finance staff requesting a listing of the state Community Revenue Sharing funds the tribe received since 2007. It appears the amounts entered into QuickBooks were not the correct amounts. Staff provided the tribal staff to contact the Juneau DCRA staff concerning this matter and also provided the link into our website where this type of information is available. RUBA staff received an e-mail from the Kipnuk Traditional Council bookkeeper concerning the QuickBooks system currently used by the tribe. The bookkeeper wanted to split each bank account into it's own company because of the extra work she has to do to make transfers between the accounts after each payroll and 941 EFTPS deposits. Staff recommend not to create more than one company, and that if she split the accounts into different companies within QuickBooks, it would make it harder for her put together finance reports and other related transactions between the accounts. Recommend she contact Turnagain Press for more advise and technical assistance. 
RUBA Activities for the Coming Qtr:
Scores:
 
Essential Indicators:
17 of 27
Sustainable Indicators:
19 of 27
Total Score:
36 of 54

Finances

Essential Indicators
Answer Question
No 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.
No 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.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The Kipnuk Traditional Council has not adopted a calendar year budget for the last three years and has not drafted or completed finance reports. Since the water and wastewater system are just being built there are minimal costs to electricity and heating fuel with the exception of the new washeteria/water treatment plant. The washeteria/water treatment plant electric bill is current. The washeteria/water treatment plant purchases fuel from the local fuel distributor as needed. The utility is subsidized by sales tax, community revenue sharing, harbor fees, and electric utility. The bulk fuel loan for the Kipnuk Light Plant is delinquent but staff are working with DCRA bulk fuel loan staff to pay off the current and apply for a new loan for this spring.

Accounting Systems

Essential Indicators
Answer Question
No 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.
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 tribe has a utility collection policy and billings are sent out monthly to CoWater and the Lower Kuskokwim School District but not for the residential honeybucket haul service. The honeybucket haul system was being billed before but was discontinued; however, Kipnuk Traditional Council is planning to restart billing for the honey bucket haul. The agreement with the Lower Kuskokwim School District on wastewater needs to be updated and set new rates. The accounting system uses QuickBooks Pro. The computer hardware and software operating systems should be upgraded. The cash receipt system is a one book receipt system and it was recommended to change over to the NEBS receipt system. The purchasing and procurement system is located in chapter IV of the Kipnuk Yupik Tribe, Kipnuk Traditional Tribal Council, Administrative Management Systems Manual.

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.
No The utility is current on making tax deposits.
Yes 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
The Kipnuk Traditional Council calculates tracks, reports and pays payroll tax deposits through QuickBooks Pro. The IRS confirmed non-compliance on June 15, 2014 for a minimal amount for 2014/03. Staff is working to correct this issue and make a payment to IRS. State DOL/ESC determined compliance on June 25, 2014. There are no recorded tax liens in the March-April 2014 Lien Watch.

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.
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
The Kipnuk Traditional Council has workers compensation insurance as of June 25, 2014 according to the Division of workers compensation. A Kipnuk Yupik Tribe, Kipnuk Traditional Tribal Council, Administrative Management Systems Manual was adopted in March 2012 by the Kipnuk Traditional Council. A personnel policy is contained in chapter VII of this administrative manual. The performance evaluations, hiring process, probationary, orientation, and training process are all included in this manual.

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.
No The policy making body enforces utility policy.
No The utility has an adequately trained manager.
No 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 Kipnuk Traditional Council owns and operates the washeteria/water treatment plant, water pump house, CoWater systems, and honeybucket bin haul. The Kipnuk Traditional Council is the policy making body for the utility. The Kipnuk Traditional Council is active in making policy for the utility. The Tribal Administrator and Bookkeeper were both hired in September 2013 and need training. The utility has adequately trained operators. The main operator and the back-up operator are not certified and are working towards certification. The tribe has adopted a water utility ordinance that gives it the authority to operate, and it covers most of the aspects needed in a utility ordinance. The utility ordinance needs to be updated and a more detailed collection policy drafted. Kipnuk Traditional Council has an organizational chart that needs to be updated. The Kipnuk Traditional Council meets regularly and all meetings are open to the public and comply with the Open Meeting Act.

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".
Yes 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
The utility operators are working towards necessary certification. The new washeteria/water treatment plant has a preventive maintenance plan and inventory control and spare parts lists within its operational and maintenance manual. The water operators routinely report to the manager on the washeteria/water treatment plant operations and the manager does on-site visits weekly. The Kipnuk Traditional Council utility staff holds safety meetings. Kipnuk's CCR is on file and it is not on the SNC listing for April 2014.