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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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Yes
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Monthly financial reports are prepared and submitted to the policy making board. |
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Yes
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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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Yes
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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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Yes
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YTD revenues are at a level equal to or above those budgeted. |
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Yes
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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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Yes
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Budget amendments are completed and adopted as necessary. |
| Finances Comment: |
The village council adopted the FY13 budget in September 2012 and a copy of the approved budget was submitted to the Division of Community and Regional Affairs. The village council operates on a federal fiscal year, October to September. The budget includes an income line item of $18,500 as income from resident customers. This amount is based on 100% collection rate: in fact, the collection rate is at 89%.
Monthly financial reports are included in the agenda packets for the regular meetings and referenced in the meeting minutes. The reports compare actual YTD revenues and expenses to the budget. This quarter, revenues are exceeding the expenditures. According to the last received report (February 2013), the utility is current with utility water and wastewater electric bills. This is documented on the reports, by the utility entering a line item journal entry from the utility to the electric company, as both utilities are owned by the village council.
The utility uses waste oil heat for the utility water plant and supplements with regular heating oil as needed. The Village Council had fuel delivered in September 2012 via the barge. The Village Council paid 10 per cent of the shipment with an Alaska Energy Authority loan covering the rest. The Village Council has reserve funds to pay off the loan and fuel supplies are sufficient for winter 2012-2013.
The utility does have a line item for repairs; however there is no evidence of a Repair and Replacement line item with funds that are actually being set aside and are accumulating as necessary in the budget or the monthly financial reports.
The meeting minutes and agenda indicate that the administrator provides a written report every month and the minutes reflect what was reported.
Monthly financial reports indicate revenues and expenses are on track with the FFY13 budget.
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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 utility billing and collection procedures are included in the utility ordinance adopted January 1997. RUBA staff has a copy of the adopted ordinance on file.
The accounts receivable reports indicate that there are no amounts more than 90 days past due. The council is proactive in collection for services and provides a number of services that require current accounts. A random review of accounts receivable files indicated that the utility bills are issued within the first week of each month, as required by the utility's billing procedures.
Staff uses QuickBooks for bookkeeping. Customer invoices and payment for each customer are entered into the accounts receivable program.
The utility bookkeeper uses QuickBooks Pro 2011 for financial recordkeeping, including all payroll records. The bookkeeper is proficient in the use of QuickBooks: all payroll records are up to date through February 2012.
The utility clerk writes a receipt for any income received. A copy of every receipt is kept in a permanent receipt book. At the end of the week, new data from the receipt book is entered into the utility's computerized account system.
All payments are made by check. Every check includes an amount, an expense account and a description of what the payment is for. A copy of paid invoices is kept in the vendor files.
The utility's chart of accounts identifies all asset accounts (undeposited funds, bank accounts, and accounts receivable), all liability accounts (current, long-term and payroll liabilities), and fund balances. Income and expense accounts are identified in a manner that matches the income and expenses line items in the budget.
Bank reconciliations are done regularly and have been completed through February 2013.
The utility requires purchase actions for proposed purchases. All purchasing activities are authorized by the tribal president.
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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: |
On March 15, 2013, RUBA staff received confirmation from the Department of Labor that the tribal council is current with all tax reports and deposits through December 2012. The IRS deemed the village council compliant with federal employment and/or excise tax filing requirements and federal tax deposit requirements through December 2012. There is no recorded notice of federal tax liens according to the lien watch report dated February 2013.
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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: |
The Notice of Insurance is posted in plain view in the village offices. According to the Notice of Insurance, workers compensation insurance is provided by the Alaska National Insurance Company from November 1, 2012 to November 1, 2013. A March 27, 2013 check of the Division of Worker's Comp website confirmed that the policy is in effect indicating renewal of coverage.
A copy of the village council personnel policies is on file with RUBA staff.
Job descriptions are current and expressly outline each employee's required duties. RUBA staff has copies of the job descriptions on file.
The village council does have a written evaluation process. The administrator/council president performs employee evaluations on an annual basis.
The hiring process is described in the utility's personnel policies. A copy of the policy is on file with RUBA staff.
Personnel folders are current and available for all employees.
The utility budget does not include an appropriation for staff training. However funding for training is provided through the village council's general fund.
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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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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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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 utility ordinance identifies the village council as the owner and operator of the utility.
Council meeting minutes confirmed that the council reviews policies and rates on an annual basis and makes changes as needed.
Meeting minutes were provided for the quarter through February 2013 and confirmed that the village council takes an active role in enforcing utility policy. The administrator competently develops and oversees the utility budget, is the utility operator, and provides monthly reports to the governing body.
The bookkeeper has over twenty years experience on the job. She is competent and maintains all of the accounting systems in a professional and timely manner.
The utility is a Small Water System/Treated. According to the Alaska Department of Environmental Conservation website, the utility operators have the required level of training and certification for this system.
The city adopted a utility ordinance in January 1997. RUBA staff has a copy of the signed ordinance on file.
The village has an organizational chart that is updated as needed. The copy of the most current organizational chart is on file.
Regular council meetings are held once a month; special meetings are held as needed. All meetings for the current quarter have been held as scheduled.
The meeting files and minutes through February 2013 confirm that agendas are posted and that meetings are open to the public. While the tribal council is not required to meet the Alaska State Open Meetings Act, they practice the standards required by it.
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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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No
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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: |
According to the Alaska Department of Environmental Conservation website, the primary operator has a WT-Provisional and WD-Provisional certification that expires December 31, 2015 and has the required number of CEU's. The operator holds many other positions in the village and is encouraging other village council personnel to work on being certificated.
The utility has a preventative maintenance plan that was developed by the Remote Maintenance Worker. A copy of the plan is on file with RUBA. The operator uses a checklist to verify that preventive maintenance is performed. A large portion of the system is not functioning to capacity and is in need of repairs. ANTHC is aware of the problems and a project is pending,
The administrator checks the utility on a routine basis.
The utility has a safety manual on file.
The administrator is the operator.
RUBA staff has a copy of the 2011 CCR on file. According to the utility clerk, the CCR was mailed to all residents in June 2012.
The utility has an inventory control list and is on file with RUBA staff.
The water utility is on the SNC list dated January 2013 as the system exceeded Arsenic MCL in 2008 and 2012. Next Arsenic sample is due 2013. To return to compliance, Arsenic concentrations need to be reduced below the MCL. The utility has approval to construct a new raw water intake, new water source, and a new direct filtration treatment plant with coagulant and hypochlorite. The system is currently in communication with ANTHC regarding plans for the new intake. Comments were submitted by Drinking Water Program staff that the current Arsenic removal system filter media may need replacement. The utility has a critical spare parts list on file. To prevent unnecessary outages, critical spare parts are kept in stock at the utility.
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