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Capacity Indicator: Finances
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Essential Indicators
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Yes
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All revenues and expenses for the utility are listed in the utility budget. |
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Yes
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The utility has adopted a balanced realistic budget. |
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No
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Monthly financial reports are prepared and submitted to the policy making board. |
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No
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The utility is current in paying all water/wastewater electric bills. |
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Yes
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The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply. |
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No
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The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. |
Sustainable Indicators
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No
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The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs. |
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No
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YTD revenues are at a level equal to or above those budgeted. |
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No
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YTD expenditures are at a level equal to or below those budgeted. |
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Yes
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A monthly manager's report is prepared. |
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No
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Budget amendments are completed and adopted as necessary. |
| Finances Comment: |
A budget was adopted and passed for FY13 (July 1 thru June 30). The city filed the monthly finance reports up to April 2012, city staff said the reports were given to the council, but no meeting minutes where the City Council reviewed the reports were provided. City has not provided sufficient finance reports since April 2012 to present. Without the finance reports RUBA cannot justify that the city utility is receiving revenues sufficient to cover operating expenses. The city is thirty days past due on their AVEC billings for February 2013. The administrator reported City has 21,000 gallons of fuel on hand, enough to last until spring. The City Administrator provides verbal reports to the council and these are recorded in the monthly meeting minutes, but did not provide copies of meeting minutes.
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Capacity Indicator: Accounting Systems
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Essential Indicators
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Yes
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The utility has adopted a collection policy and actively follows it. |
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Yes
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The utility bills customers on a regular basis. |
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Yes
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An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. |
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Yes
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An accounts payable system is in place. |
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Yes
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The payroll system correctly calculates payroll and keeps records. |
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Yes
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A cash receipt system is in place that records incoming money and how it was spent. |
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Yes
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The utility has a cash disbursement system that records how money was spent. |
Sustainable Indicators
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Yes
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A chart of accounts is used that identifies categories in a reasonable, usable manner. |
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Yes
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Monthly bank reconciliations have been completed for all utility accounts. |
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Yes
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The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. |
| Accounting Systems Comment: |
The city utility ordinance was effective as of March 2008 and includes a collection policy. The collection policy identifies a grace period of 45 days for past due utility bills. RUBA staff has recommended adjusting the grace period to 30 days.
The city adminsitrator contacted RUBA staff with questions regarding how QuickBooks processes payroll tax liabilities. He reported that due to QuickBooks taking two days to deposit payroll into employee accounts, timesheets are submitted two or three days before the end of the pay period, and employees enter hours for time not yet worked. RUBA staff provided assistance regarding how to enter hours and issue checks, and also provided contact information for the RUBA sponsored QuickBooks Help Line contractor.
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Capacity Indicator: Tax Problems
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Essential Indicators
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Yes
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The utility has a system to accurately calculate, track, and report payroll tax liabilities. |
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No
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The utility is current on filing tax reports. |
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No
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The utility is current on making tax deposits. |
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No
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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 Comment: |
On January 9, 2013 Internal Revenue Service deemed the City noncompliant. The 941 2012/06 and 2012/09 are not filed and there are unpaid tax liabilities from 2012/03 and 2009/12. The State of Alaska Department of Labor deemed the City noncompliant as of March 20, 2013. City is not listed in the January-February 2013 IRS Lien Watch.
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Capacity Indicator: Personnel System
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Essential Indicators
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Yes
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The utility has a posted workers compensation insurance policy in effect. |
Sustainable Indicators
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Yes
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The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language. |
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Yes
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The utility has adequate written job descriptions for all positions. |
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Yes
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The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. |
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Yes
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The utility has an adequate written hiring process. |
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Yes
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The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. |
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Yes
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The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations. |
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Yes
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The utility provides training opportunities to staff as needed and available. |
| Personnel System Comment: |
Alakanuk has workers compensation insurance according to the state division of workers compensation on March 27, 2013. Job openings are posted in at least three public places. There is a probationary period of three months for new hires. The City Administrator provides on the job training for new employees and other training is given when funds are available.
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Capacity Indicator: Organizational Management
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Essential Indicators
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Yes
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The entity that owns the utility is known; the entity that will operate the utility is set. |
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Yes
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The policy making body is active in policy making of the utility. |
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Yes
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The policy making body enforces utility policy. |
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Yes
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The utility has an adequately trained manager. |
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No
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The utility has an adequately trained bookkeeper. |
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Yes
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The utility has an adequately trained operator or operators. |
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Yes
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The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. |
Sustainable Indicators
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Yes
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The utility has adopted an organizational chart that reflects the current structure. |
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Yes
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The policy making body meets as required. |
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Yes
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The utility complies with the open meeting act for all meetings. |
| Organizational Management Comment: |
The city administrator was hired in April 2012 and has gone through financial management for rural utilities, clerk's management for rural utilities, and QuickBooks Premier Edition 2012 training. The city bookkeeper was let go in mid March 2013 and a job opening was posted. The city of Alakanuk provides water/wastewater services and operates a washeteria. The washeteria includes showers and saunas. The city held elections and certified the election results.The city council is active in reviewing and monitoring utility policies.
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Capacity Indicator: Operation of Utility
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Essential Indicators
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Yes
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The utility operator(s) are actively working towards necessary certification. |
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Yes
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The utility has a preventative maintenance plan developed for the existing sanitation facilities. |
Sustainable Indicators
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Yes
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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. |
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No
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The utility has a safety manual and holds safety meetings. |
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Yes
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Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. |
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Yes
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The utility is operating at the level of service that was proposed. |
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Yes
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The operator provides status reports to the manager on a routine basis. |
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Yes
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The utility has completed and distributed its "Consumer Confidence Report". |
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No
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The utility is not on the "Significant Non-Complier" (SNC) list. |
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Yes
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The utility maintains an inventory control list. |
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Yes
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The utility maintains a critical spare parts list. |
| Operation of Utility Comment: |
The Alakanuk Water System did not clear the significant non-complier list on the January 2013 report.
Alakanuk water treatment system is a Class 2 and the wastewater treatment system is Class 1. They have one operator, Kevin Joseph, who is certified as a water operator 1 and wastewater operator 1. He continues to attend training when possible.
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