Quarterly Report: 2010, July - September (Q1), Upper Kalskag

Community:
Upper Kalskag 
Staff:
Flora Olrun  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Upper Kalskag 
Population:
244  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
11/6/2009 
Community Sanitation Overview:
The utilities for Upper Kalskag is managed by Alaska Rural Utilities Collaborative. Almost all the homes, school and store have individual wells with potable water and indoor plumbing. A piped gravity sewage system with lift stations, force main and lagoon serves around 60 households and facilities. Some homes lost use of their utilities due to burst pipes and dried up wells. About ten to twelve homes do not have utility services. The landfill is located below Lower Kalskag. Lower Kalskag owns the site for the landfill but Upper Kalskag maintains the site with their heavy equipment. Both communities use the landfill. 
RUBA Status & Activities This Qtr:
Alaska Rural Utilities Collaborative (ARUC) provides full management and operation services to Upper Kalskag's water and sewer system. ARUC has provided RUBA a monthly financial statement ending August, 2009. The monthly report contains FY 2009 Budget. ARUC has no issues with Internal Revenue Service and State of Alaska Employmnet Security Taxes. Upper Kalskag is currently not on the SNC Non-complier List dated August, 2009.  
RUBA Activities for the Coming Qtr:
Monitor ARUC reports and provide assistance when requested.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
27 of 27
Total Score:
54 of 54

Finances

Essential Indicators
Answer Question
Yes All revenues and expenses for the utility are listed in the utility budget.
Yes The utility has adopted a balanced realistic budget.
Yes Monthly financial reports are prepared and submitted to the policy making board.
Yes The utility is current in paying all water/wastewater electric bills.
Yes The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.
Yes The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
Yes The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
Yes YTD revenues are at a level equal to or above those budgeted.
Yes YTD expenditures are at a level equal to or below those budgeted.
Yes A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
Monthly finance and budget reports are prepared by ARUC. The monthly report lists expenses and revenue categories with columns showing 'This Month,' 'Year to Date'and budget. ARUC provided a copy of the monthly statement for Upper Kalskag utility. Fuel for the utilities is bulk and purchsed by ARUC. ARUC has instigated fuel accountability practices.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
Yes The utility bills customers on a regular basis.
Yes An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
Yes An accounts payable system is in place.
Yes The payroll system correctly calculates payroll and keeps records.
Yes A cash receipt system is in place that records incoming money and how it was spent.
Yes The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
Yes A chart of accounts is used that identifies categories in a reasonable, usable manner.
Yes Monthly bank reconciliations have been completed for all utility accounts.
Yes 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
Bills are sent at the end of every month. ARUC strictly enforces the delinquency notice and disconnection of service for non-payment. Payment plans are offered and NSF checks are submitted to a collection agency. Through the MOA, ARUC has the authority to change customer rates.

Tax Problems

Essential Indicators
Answer Question
Yes The utility has a system to accurately calculate, track, and report payroll tax liabilities.
Yes The utility is current on filing tax reports.
Yes The utility is current on making tax deposits.
Yes 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
The IRS deemed the taxpayer in compliance with federal employment tax filings, federal tax deposits and reports and noted that no recorded Notice of Federal Tax Lien has been filed as of September 25, 2009. The State DOL office reports the ARUC is in compliance at this time. This tax information pertains to the management of the utility (ARUC) only.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
Yes The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
Yes The utility has adequate written job descriptions for all positions.
Yes The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
Yes The utility has an adequate written hiring process.
Yes The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
Yes The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
Yes The utility provides training opportunities to staff as needed and available.
Personnel System Comments
The utility has a posted worker's comp policy from Alaska National Insurance Company valid until October 1, 2010. The insurance covers all empyees of ARUC including the operators in Upper Kalskag. Training opportunities are provided when money allows.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
Yes The policy making body is active in policy making of the utility.
Yes The policy making body enforces utility policy.
Yes The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
Yes The utility has an adequately trained operator or operators.
Yes The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.
Sustainable Indicators
Answer Question
Yes The utility has adopted an organizational chart that reflects the current structure.
Yes The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
Upper Kalskag signed a Memorandum of Agreement (MOA) with ARUC to operate the utility. Through the MOA, ARUC has the authority to set rates, ordinances, policies, and procedures for the utility.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
Yes The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
Yes 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.
Yes The utility has a safety manual and holds safety meetings.
Yes Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
Yes The utility is operating at the level of service that was proposed.
Yes The operator provides status reports to the manager on a routine basis.
Yes The utility has completed and distributed its "Consumer Confidence Report".
Yes The utility is not on the "Significant Non-Complier" (SNC) list.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The utility has not suffered any major problems/outage due to management issues. The utility has a large amount of inventory and spare parts on hand and have suffered no loss of service due to lack of parts. With the stable labor force and frequent RMW on-site support, maintenance requirements are minimal. It is however, recommended that a written inventory control and spare parts list be adopted for unforseen repair and maintenance needs.