RUBA Community Status Report

Community:

RUBA:

Staff:

Agreement:

DCA Region:

Agreement Date:

Region:

Exp Date:

Govt Type(s):

Borough:

Assessment Date:

Population:

Active Community:

Date Updated:

Community Sanitation Overview:

Individual wells and wastewater tank systems are used by most homes in Port Heiden; 31 of 37 occupied households are fully plumbed. The school operates its own well and treatment system. The city currently provides wastewater pumping services and collects refuse three times a week. The landfill is located 6.5 miles northeast of the community. Fuel is delivered twice a year via barge and stored in city-owned fuel tanks. The electric plant and distribution lines are owned by the city.

RUBA Status
and Activities
this Quarter:

In FY13, the city was awarded the RUBA QuickBooks grant for installation, training and upgrade of their QuickBooks financial accounting system. Two of the three scheduled on-site visits have been completed with one visit left to complete this grant. This quarter RUBA staff has provide assistance with bulk fuel loan applications, W-2 forms, fuel tax questions, ordinances, legislative grant appropriations and questions regarding bonding. RUBA staff also assisted the city with developing their capital improvement projects list. Council members questioned phasing projects, due to the length and cost of projects. Prioritizing projects was an issue that created a great deal of debate among council members and resulted in the city missing the deadline for submission to the borough for submission to the legislature. RUBA staff assisted city staff in contacting their representative who agreed to submit their list into the state CAPSIS system.

Capacity Indicator: Finances

Essential Indicators:

All revenues and expenses for the utility are listed in the utility budget.

The utility has adopted a balanced realistic budget.

Monthly financial reports are prepared and submitted to the policy making board.

The utility is current in paying all water/wastewater electric bills.

The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.

The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.

Sustainable Indicators:

The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.

YTD revenues are at a level equal to or above those budgeted.

YTD expenditures are at a level equal to or below those budgeted.

A monthly manager's report is prepared.

Budget amendments are completed and adopted as necessary.

Comment:

The city has adopted the FY13 city budget. A copy of the budget has been submitted to the Division of Community and Regional Affairs as required for eligibility of community revenue sharing. RUBA staff has not received copies of monthly financial reports for the three previous months. According to the most current invoice from the electric utility, appropriate journal entries are made to reflect payment to the electric utility from the general fund. Heating fuel and gasoline for the city is ordered twice a year and is delivered by barge in the spring and fall. A Bulk Fuel Bridge Loan is secured from the state and is paid back in a timely manner. As monthly finance reports have not been submitted, there is not sufficient information to determine if user fees are sufficient to cover operating cost. It should be noted that the utility only provides service in the summer months as the utility operates wastewater pumping services. The utility does not have a line item for repair and replacement in the budget. The meeting minutes indicate that the administrator provides a verbal report every month, but the minutes do not include any indication of what was reported.

Capacity Indicator: Accounting Systems

Essential Indicators:

The utility has adopted a collection policy and actively follows it.

The utility bills customers on a regular basis.

An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.

An accounts payable system is in place.

The payroll system correctly calculates payroll and keeps records.

A cash receipt system is in place that records incoming money and how it was spent.

The utility has a cash disbursement system that records how money was spent.

Sustainable Indicators:

A chart of accounts is used that identifies categories in a reasonable, usable manner.

Monthly bank reconciliations have been completed for all utility accounts.

The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts.

Comment:

The accounts receivable reports are under review of the QuickBooks grant. The amounts indicate that some past due amounts are more than 90 days past due. Action has been taken to reconcile all accounts receivable balances by the installation of a pay-as-you-go electric metering system that is set up to collect 20 percent of all past due balances of the accounts receivable as the beginning balances are entered into the system. The bookkeeper uses QuickBooks 2011 for financial recordkeeping. Customer invoices are entered into the accounts receivable program. Sales receipts are entered as sales of services are made. The utility bookkeeper is proficient in the use of QuickBooks. It is undetermined if all payroll records are up to date. A copy of every receipt is kept in sequentially numbered permanent receipt books. The utility's chart of accounts identifies all asset accounts (undeposited funds, bank accounts, and accounts receivables), all liability accounts, and fund balances. Income and expense accounts are identified in a manner that matches the income and expense line items in the budget. It is undetermined that monthly bank reconciliations are completed due to lack of reporting. All purchases are approved by the mayor and council.

Capacity Indicator: Tax Problems

Essential Indicators:

The utility has a system to accurately calculate, track, and report payroll tax liabilities.

The utility is current on filing tax reports.

The utility is current on making tax deposits.

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.

Comment:

The Department of Labor granted tax clearance for the period ending December 30, 2012. The form to request Federal Tax clearance was not provided, The taxpayer is on the lien watch report (February 2013) for a default judgment dating back to 2007.

Capacity Indicator: Personnel System

Essential Indicators:

The utility has a posted workers compensation insurance policy in effect.

Sustainable Indicators:

The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.

The utility has adequate written job descriptions for all positions.

The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.

The utility has an adequate written hiring process.

The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.

The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.

The utility provides training opportunities to staff as needed and available.

Comment:

According to the Notice of Insurance, workers compensation insurance is provided by the Alaska Municipal League Joint Insurance Association (AMLJIA) from July 1, 2012 to June 30, 2013. A check of the Department of Labor and Workforce Development web site on March 27, 2013 confirmed the policy is active. A copy of the personnel policies is on file with RUBA. The evaluation process is described in the utility personnel policies and the council performs employee evaluations on a yearly basis. The city's current hiring policy is not written. Job notices are posted with the job title and description; interested applicants apply at the city office. Personnel folders only hold payroll information. The city's budget includes an appropriation for staff training.

Capacity Indicator: Organizational Management

Essential Indicators:

The entity that owns the utility is known; the entity that will operate the utility is set.

The policy making body is active in policy making of the utility.

The policy making body enforces utility policy.

The utility has an adequately trained manager.

The utility has an adequately trained bookkeeper.

The utility has an adequately trained operator or operators.

The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.

Sustainable Indicators:

The utility has adopted an organizational chart that reflects the current structure.

The policy making body meets as required.

The utility complies with the open meeting act for all meetings.

Comment:

The city is known to operate the service that removes wastewater from holding tanks, however the city does not have the necessary ordinances to give it the authority to operate the utility. There is no one in charge of overseeing the utility. The bookkeeper has three years of experience on the job and has attended a QuickBooks training class sponsored by RUBA. He is competent and maintains all of the accounting systems in a professional manner. The utility has adopted an organization chart and it is on file with RUBA staff. Meeting minutes and agendas for the three previous months were not submitted to confirm that the utility complies with the Open Meetings Act for all meetings.

Capacity Indicator: Operation of Utility

Essential Indicators:

The utility operator(s) are actively working towards necessary certification.

The utility has a preventative maintenance plan developed for the existing sanitation facilities.

Sustainable Indicators:

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.

The utility has a safety manual and holds safety meetings.

Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.

The utility is operating at the level of service that was proposed.

The operator provides status reports to the manager on a routine basis.

The utility has completed and distributed its "Consumer Confidence Report".

The utility is not on the "Significant Non-Complier" (SNC) list.

The utility maintains an inventory control list.

The utility maintains a critical spare parts list.

Comment:

The community currently does not have a piped water or wastewater system. Residents rely on private wells and private waterwater/septic tanks; there has not been a need to meet water quality and operator certification requirements. RUBA staff has not viewed a preventative maintenance plan for the septic pumper equipment.

RUBA Activities for the Coming Quarter:

A RUBA work plan has been developed in an effort to bring the community up to an acceptable management performance standard. Continued RUBA assistance to this community depends on the community meeting a baseline level of progress towards improvement. The council has signed a RUBA assistance agreement that outlines the services RUBA will provide.