Quarterly Report: 2014, October - December (Q2), Kipnuk

Community:
Kipnuk 
Staff:
Ken Berlin  
DCRA Regional Office:
Bethel 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Native Village of Kipnuk 
Population:
688 (2012 Alaska Department of Labor Estimate) 
Assessment Status:
Assessment Completed 
Assessment Date:
2/20/2013 
Exp Date:
 
Last Updated:
12/4/2013 
Community Sanitation Overview:
A new 210,000 gallon water storage tank is filled from a reservoir on a nearby lake; residents haul treated water from several watering points. Honeybuckets are hauled by the village to a sewage lagoon. Homes are not plumbed. Construction has begun on infrastructure improvements, including a new reservoir pumphouse, a water treatment plant and sewage lagoon. The Village Council collects refuse and maintains the Class III permitted landfill. The Kipnuk School needs additional funds to complete its bio-pure sewage treatment plant and increase storage capacity. 
RUBA Status & Activities This Qtr:
Kipnuk has not adopted a 2013 budget nor submitted any finance reports. The Tribe receives electricity in exchange for office space rent from the Tribal owned electric company. The Tribe purchases fuel as needed from a local retailer. RUBA staff worked with staff regarding a tax problem with the IRS which was later resolved. Kipnuk is still on a honey bucket haul system with several CoWater flush and haul systems. The school operates it's own water treatment plant but uses the KTC's sewage lagoon. Kipnuk has a new washeteria and water treatment plant. In July the temporary bookkeeper was hired and she wanted information on how to work on the budget. Staff send her the budgeting manual and instructions. She was only work until the first part of August. Budget was not completed. The administrative and finance staff positions have a high turn over rate. In July both positions were vacant and filled by temporary staff. Both positions were finally filled in September 2013 and both need training.  
RUBA Activities for the Coming Qtr:
-Prepare and pass a balanced realistic CY13 budget. -Prepare and submit monthly financial reports to the policy making body. -Make sure the utility is receiving adequate revenues to cover operating costs. -Update the collection policy and enforce it. -Bill customers on a regular basis. -Pay overdue payroll tax deposits in full and remain current with the tax payments. -get workers compensation insurance. -Enforce the utility policy. -Provide appropriate training for the Administrator and Bookkeeper.
Scores:
 
Essential Indicators:
16 of 26
Sustainable Indicators:
17 of 27
Total Score:
33 of 53

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.
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.
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
The Kipnuk Traditional Council has not adopted a calendar year 2012 or 2013 budget and has not drafted or completed finance reports. Since the water and wastewater system are just being built there are minimal costs to electricity and heating fuel with the exception of the new washeteria/water treatment plant. The washeteria/water treatment plant electric bill is current. The washeteria/water treatment plant purchases fuel from the local fuel distributor as needed. The utility is subsidized by sales tax, community revenue sharing, harbor fees, and electric utility.

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.
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
The tribe has a utility collection policy and billings are sent out monthly to CoWater and the Lower Kuskokwim School District but not for the residential honeybucket haul service. The honeybucket haul system was being billed before but was discontinued; however, Kipnuk Traditional Council is planning to restart billing for the honey bucket haul in February 2013. The agreement with the Lower Kuskokwim School District on wastewater needs to be updated and set new rates. The accounting system uses QuickBooks Pro. The computer hardware and software operating systems should be upgraded. The cash receipt system is a one book receipt system and it was recommended to change over to the NEBS receipt system. The purchasing and procurement system is located in chapter IV of the Kipnuk Yupik Tribe, Kipnuk Traditional Tribal Council, Administrative Management Systems Manual.

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.
N/A 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 Kipnuk Traditional Council calculates tracks, reports and pays payroll tax deposits through QuickBooks Pro. The IRS confirmed compliance on December 13, 2013. State DOL/ESC determined compliance up to September 2013. There are no recorded tax liens in the September-October 2013 Lien Watch.

Personnel System

Essential Indicators
Answer Question
No 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.
No 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.
No 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 Kipnuk Traditional Council does not have workers compensation insurance as of December 17, 2013 according to the Division of workers compensation. A Kipnuk Yupik Tribe, Kipnuk Traditional Tribal Council, Administrative Management Systems Manual was adopted in March 2012 by the Kipnuk Traditional Council. A personnel policy is contained in chapter VII of this administrative manual. The performance evaluations, hiring process, probationary, orientation, and training process are all included in this manual.

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.
No The policy making body enforces utility policy.
No The utility has an adequately trained manager.
No 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
No 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
The Kipnuk Traditional Council owns and operates the washeteria/water treatment plant, water pump house, CoWater systems, and honeybucket bin haul. The Kipnuk Traditional Council is the policy making body for the utility. The Kipnuk Traditional Council is active in making policy for the utility. The Tribal Administrator and Bookkeeper were both hired in September 2013 and need training. The utility has adequately trained operators. The main operator and the back-up operator are not certified and are working towards certification. The tribe has adopted a water utility ordinance that gives it the authority to operate, and it covers most of the aspects needed in a utility ordinance. The utility ordinance needs to be updated and a more detailed collection policy drafted. Kipnuk Traditional Council has an organizational chart that needs to be updated. The Kipnuk Traditional Council meets regularly and all meetings are open to the public and comply with the Open Meeting Act.

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.
No The utility has completed and distributed its "Consumer Confidence Report".
No 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 operators are working towards necessary certification. The new washeteria/water treatment plant has a preventive maintenance plan and inventory control and spare parts lists within its operational and maintenance manual. The water operators routinely report to the manager on the washeteria/water treatment plant operations and the manager does on-site visits weekly. The Kipnuk Traditional Council utility staff holds safety meetings.