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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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Yes
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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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No
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A monthly manager's report is prepared. |
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Yes
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Budget amendments are completed and adopted as necessary. |
| Finances Comment: |
The Gambell Water Treatment System adopted the FY13 budget. All revenues and expenditures are listed in the budget. The utility's revenues are $221,520 and expenditures are $196,330, including $10,594 in washeteria expenditures which are part of the overall utility budget, however, the expenditures do not include fuel expense. For many years, the city council has heavily subsidized the utility using the Norton Sound Economic Development Corporation Community Benefit appropriation to subsidize the utility. The city council voted to continue appropriating subsidies to the utility this fiscal year. Last fiscal year, the city council set aside $80,500 for fuel for all city facilities. This year's fuel expense will be approximately the same. The utility has sufficient fuel to last until the next fuel delivery. The utility clerk has not provided monthly financial reports comparing year-to-date revenues and expenditures to those budgeted to the newly established utility board. The utility does not receive sufficient revenues from user fees to cover operating expenses and repair and replacement costs. The city council provides the utility with subsidies to assist it in difficult financial times. The year-to-date revenues are not at the level equal to or above those budgeted and the year-to-date expenditures are not at a level equal to or below those budgeted. The utility clerk, who is also the utility manager, provided the city council with a verbal monthly report on the operation and management of the utility.
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Capacity Indicator: Accounting Systems
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Essential Indicators
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No
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The utility has adopted a collection policy and actively follows it. |
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No
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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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No
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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: |
Gambell Water Treatment System's billing and collection procedures are included in the utility ordinance which was adopted in 1996. According to the utility ordinance the utility board is responsible to review the water and wastewater rates on a periodic basis and the rates should be published in a separate 'Schedule A' page. Nome RUBA staff has a copy of the utility ordinance. The city council has not raised user fees for residential customers, small commercial, large commercial, and the local school as recommended. However, the mayor indicated this quarter that the utility clerk and the utility board will request RUBA staff assistance with rates. RUBA staff cannot confirm whether the utility bills customers on a regular basis. The utility uses QuickBooks for accounting and financial management of utility revenues and expenditures. RUBA staff and the RUBA QuickBooks contractor trained the utility clerk to use the new QuickBooks utility file. The accounts receivable and payable are properly set up and functioning. The utility had unpaid bills last quarter. To its credit, the utility has paid off all taxes owed to the IRS and the State of Alaska. The utility clerk was trained to write a receipt for any income received. A copy of every receipt is kept in a permanent receipt book. The utility clerk was advised to enter the new data from the receipt book into the QuickBooks accounting system each Friday. The utility clerk uses QuickBooks created checks to make payments. The QuickBooks chart of accounts identifies all asset accounts and all liability accounts, as well as fund balances. With the assistance of the QuickBooks contractor, the utility clerk reconciled the bank account; however, monthly bank reconciliations have not been completed in the past.
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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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Yes
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The utility is current on filing tax reports. |
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Yes
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The utility is current on making tax deposits. |
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N/A
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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: |
As of March 28, 2013 the Internal Revenue Service (IRS) reported that Gambell Water Treatment System is in compliance with federal employment tax filing and federal tax deposit requirements. No Notice of Federal Tax Lien against the utility has been recorded. As of March 28, 2013 the utility is compliant with state employment security contributions. The utility staff uses QuickBooks Pro 2012 to calculate, track, and report payroll tax liabilities.
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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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No
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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: |
The utility has general liability and workers compensation coverage. The workers compensation insurance is purchased through Alaska Municipal League Joint Insurance Association (AMLJIA) and is valid until June 30, 2013. The notice of insurance was posted in plain view in the utility clerk's office.
A copy of the city's personnel policy, which also applies to all utility employees, is on file with RUBA staff. The utility follows the personnel policy in the day-to-day management of personnel. Job descriptions are up-to-date and outline each employee's duties. The hiring and evaluation process is described in the personnel policy. The utility maintains personnel files for all employees but does not have a Form I-9 for each employee. The city clerk reported that the city is in the process of updating all employees' files to include the I-9. The city and the utility have a probationary period for new hires that includes orientation, job-training/oversight and evaluation, which is completed after ninety days of a hire. The city and the utility provide training opportunities to staff as funds are available.
The city council has been acting as the utility board until this quarter and has been involved in monitoring and overseeing the operation, maintenance, and management of the utility. The city council and utility staff have not been consistent in enforcing the collection policies as per the utility ordinance. The city council includes the utility in the city council meeting agendas.
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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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No
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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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Yes
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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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No
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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: |
According to Title VI of the city's code of ordinances, all city-owned utility systems are the property of the City of Gambell. The code for a utility board has been written; this quarter a utility board has been established and held its first meeting. According to the utility ordinance, the board administers and enforces all rules and regulations pertaining to the utility. In the recent past, the city council and utility staff have not consistently enforced the utility policies, including the collection of past due accounts. RUBA staff recommended the city council adopt a resolution raising user fees. The mayor indicated that the utility staff will need onsite assistance with this issue.
The utility clerk is the manager of the utility. Although in the past the utility clerk did not always provide monthly management reports to the city council, this quarter the utility clerk participated in the first meeting of the utility board and provided a verbal management and financial report. Several meetings with representatives of the Village Safe Water Program and Alaska Department of Environmental Conservation have been held in the last several months. Both of these agencies have been closely working with the utility clerk, water operator, and members of the city council to move forward with the planned upgrades. The city has an organizational chart that needs to be updated to reflect the current chain of command.
The utility clerk received extensive training in QuickBooks Pro 2012 finance and accounting. The QuickBooks contractor trained the utility clerk in the use of all the necessary bookkeeping functions. After the training, the customers, vendors, employees, and payroll records as well as the accounts recoverable and payable, and all the necessary financial reporting were current. RUBA staff recommended the utility clerk contact the QuickBooks contractor with any question regarding finance and accounting.
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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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Yes
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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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Yes
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The utility is not on the "Significant Non-Complier" (SNC) list. |
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No
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The utility maintains an inventory control list. |
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No
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The utility maintains a critical spare parts list. |
| Operation of Utility Comment: |
The operator holds Level 1 Water Treatment and Water Distribution certificates that expire on December 31, 2014. The operator also holds Wastewater Collection 1 and Wastewater Treatment 1 certificates that expire on December 31, 2013. According to the ADEC website, the utility is classified as a Class 1 in water treatment, a Class 2 in distribution, and Class 1 in wastewater lagoon and wastewater collection. The utility has an assistant water operator who is not certified.
The utility has a preventive maintenance plan that was developed by an engineer. A copy of the plan is on file with Nome RUBA staff. The operator uses checklists to verify that preventive maintenance is performed. The operator submits a written monthly operations and maintenance report to the utility clerk/manager and the city council. However, RUBA staff found that a few operations and maintenance reports were missing or incomplete. In addition, according to the operator, a verbal monthly operations and maintenance report is made to the utility clerk/manager.
The utility has a safety manual on file; the water operator reported that he has safety meetings with the assistant operator and they use Alaska Municipal League Joint Insurance Association (AMLJIA) safety meeting materials. The utility is not included on the most recent Significant Non-Complier list. The utility has an inventory control list, but the list needs to be updated. The utility does not have a critical spare parts list on file. According to the utility operator, the utility has funds to order and replace parts and pumps when necessary.
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