Quarterly Report: 2008, April - June (Q4), Nikolai

Community:
Nikolai 
Staff:
Tammy Helms  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Nikolai 
Population:
88  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
7/31/2008 
Community Sanitation Overview:
All 47 households and facilities use individual wells; of these, only 2 units lack plumbing. Thirty-three homes, including 10 new HUD housing units north of the airport, are connected to the piped sewage system. The remaining 15 homes use septic tanks. Funds have been requested for a master plan to rehabilitate the washeteria, develop two new wells, upgrade the landfill and expand the piped sewer system. 
RUBA Status & Activities This Qtr:
On May 12, 2008, RUBA staff traveled to Nikolai to assist city staff with accounting issues related to fuel sales. The City provides heating fuel to residents and receives heating assistance money for customers, which is deposited into the general fund. The customers call the City for delivery of fuel as needed but there is no accounting or tracking of how much fuel a customer is delivered over the year. The majority of the community members receive $1,525 energy assistance which equates to roughly 250 gallons of heating fuel. This amount could easily be burned in a few weeks during the winter, with the customer receiving free fuel for the remainder of the year. The City of Nikolai received $245,302 worth of fuel in September 2007 and still owes $146,736, of which $25,359 is finance charges, because there are insufficient funds to pay for the fuel. RUBA staff recommended that the City immediately begin to account for heating fuel deliveries and to collect for fuel deliveries that exceed heating assistance payments. The City is doing a good job collecting in advance for gas purchases but RUBA recommended that all transactions be recorded in QuickBooks so that meaningful financial reports can be provided to the council. On June 12,2008 RUBA staff returned to Nikolai for a community meeting to discuss sanitation needs and other needs of the Community. The interim City Administrator was unfortunately out of town but three Council members as well as a large number of community members were in attendance. The Nikolai community is facing a possible fuel crisis if the community can not pay last years fuel delivery bill to enable another order fuel for the current year. The City of Nikolai owes $146,736.28 for the 2007 fuel delivery. At the meeting the consensus of the community felt the City Council should obligated the FY09 State Revenue sharing funds for the fuel debt then work to secure a fuel loan to purchase fuel for the current year. It was also acknowledged how crucial it was that the Community commits to seeing the process through otherwise if the community does not receive fuel as well as accurately track and receive payment the generator will not run therefore the various lift stations throughout the community would cease and sewage would become a major issue which would create the community to be in a worse situation than it is now. RUBA staff has helped Nikolai complete a draft version of their FY07 Certified Financial Statement and their FY09 budget for the Council to review as well has forwarded to them a resolution to commit their FY09 State Revenue Sharing to the outstanding bill to Crowley for the fuel delivery last year. A special meeting was posted for June 17, 2008 to discuss the budget and fuel issues. 
RUBA Activities for the Coming Qtr:
RUBA staff has helped Nikolai complete a draft version of their FY07 Certified Financial Statement and their FY09 budget for the Council to review as well has forwarded to them a resolution to commit their FY09 State Revenue Sharing to the outstanding bill to Crowley for the fuel delivery last year. RUBA staff will continue to help Nikolai with the financial reporting process.
Scores:
 
Essential Indicators:
0 of 27
Sustainable Indicators:
0 of 27
Total Score:
0 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.
No The utility is current in paying all water/wastewater electric bills.
No 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
<none>

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.
No An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
No An accounts payable system is in place.
No The payroll system correctly calculates payroll and keeps records.
No A cash receipt system is in place that records incoming money and how it was spent.
No The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
No A chart of accounts is used that identifies categories in a reasonable, usable manner.
No Monthly bank reconciliations have been completed for all utility accounts.
No 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
<none>

Tax Problems

Essential Indicators
Answer Question
No The utility has a system to accurately calculate, track, and report payroll tax liabilities.
No The utility is current on filing tax reports.
No The utility is current on making tax deposits.
No 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
<none>

Personnel System

Essential Indicators
Answer Question
No The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
No 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.
No The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
No 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.
No The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
No The utility provides training opportunities to staff as needed and available.
Personnel System Comments
<none>

Organizational Management

Essential Indicators
Answer Question
No The entity that owns the utility is known; the entity that will operate the utility is set.
No 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.
No The utility has an adequately trained operator or operators.
No 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.
No The policy making body meets as required.
No The utility complies with the open meeting act for all meetings.
Organizational Management Comments
<none>

Operation of Utility

Essential Indicators
Answer Question
No The utility operator(s) are actively working towards necessary certification.
No The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
No 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.
No The utility has a safety manual and holds safety meetings.
No Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
No The utility is operating at the level of service that was proposed.
No The operator provides status reports to the manager on a routine basis.
No The utility has completed and distributed its "Consumer Confidence Report".
No The utility is not on the "Significant Non-Complier" (SNC) list.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
<none>