Quarterly Report: 2007, January - March (Q3), Klukwan

Community:
Klukwan 
Staff:
Lawrence Blood  
DCRA Regional Office:
 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Chilkat Indian Village 
Population:
109  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/1/2007 
Community Sanitation Overview:
Water is derived from a groundwater infiltration gallery and is stored in a 126,000 gal. tank. Approximately 90% of homes are connected to the piped water and sewer system and are fully plumbed. Due to seasonal water shortages and boil water notices, the village is seeking funding for a new water source and a 200,000-gallon water tank with chlorine treatment. The landfill needs to be expanded or relocated. A recycling center is available. Inside Passage Electric Cooperative provides electricity.  
RUBA Status & Activities This Qtr:
An Assessment of Management Capacity Indicators for the Chilkat Indian Village was conducted on 10/20/06. This report was completed in anticipation of a Village Safe Water (VSW) funded water system upgrade going to construction sometime this year and as a reassessment to gauge improvements since a preceding assessment. The utility has made significant progress since the Assessment of Management Capacity Indicators that was completed May 19, 2006. In the latest assessment, the utility satisfactorily met all essential indicators and made additional progress towards achieving many sustainable indicators. During the last quarter, the utility completed their FY 07 utility budget and finalized the utility ordinance including an updated collections policy. The Tribal Manager reported that the utility has also completed an inventory control list, critical spare parts list and the manager is now receiving monthly operation and maintenance reports from the operator. The manager also reports that the council is now making budget amendments as necessary. RUBA staff is waiting on supporting documents from the community before changing the sustainable indicator entries on the quarterly report. 
RUBA Activities for the Coming Qtr:
RUBA staff will continue to provide telephonic assistance as needed to support the community in their progress towards meeting the sustainable indicators.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
22 of 27
Total Score:
48 of 53

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.
No 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.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The Tribal Council recently adopted the utility's first formal written budget on October 20, 2006. The utility budget is based on the calendar year and has revenue projections equal to expenditures. Prior to this budget, the manager had used an informal system to control the utility's cash flow. The current budget has balanced revenue and expenditure projections, however after ending the 3rd quarter, revenue is approximately 70% YTD and expenditures are at only 58% YTD. This budget will provide a good baseline for the governing body and manager to refine their projections for next year's budget. The community recently increased the utility rate from $30.00 to $40.00 per month for water, sewer and garbage service. A customer recognition program has been started to encourage their customers to pay on time. At present, revenues cover all of the utility's monthly recurring operational costs and the utility has budgeted $1000.00 for repair and maintenance. The manager has recently started preparing written financial reports, which compare actual revenue and expenditures to budgeted projections. The community has no bulk fuel storage facility. They purchase fuel from a vendor in Haines, with which they have a 'keep full' contract.

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
The governing body recently adopted a collections policy by adopting their finalized utility ordinance. The utility has incorporated several new collection practices, which have improved their collection rate. The utility is trying to enforce their collections policy through the use of some innovative collections methods before resorting to disconnecting service on delinquent accounts. The utility bills on a regular basis; however, the bills only reflect the current month billing. Past due amounts are not shown on the bills. Tribal government facilities are not currently being billed for utility services. The manager explained that in the past, the tribal government facilities were charged for water, sewer and garbage services. During their last audit, it was recommended by the auditors that it was not proper for the utility to charge the tribal government facilities for services. The community is currently using QuickBooks for their accounts receivable, accounts payable, and payroll. The community uses a manual receipt book system to record incoming funds, which is later entered into QuickBooks. The same receipt book is used for all funds coming into the community. The QuickBooks program appears to be working well for them with very few problems. The utility uses both purchase orders and request for checks, which are reviewed and signed by the manager.

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
Response from an inquiry to the IRS indicated that the utility is in compliance with federal employment tax filing and tax deposit requirements at this time.

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
Chilkat Indian Village has workers compensation insurance through Alaska National Insurance, effective through 8/26/07. Chilkat Indian Village has a well established and implemented personnel management system. The community has an adopted personnel policy handbook which is issued to every employee. The utility has a written hiring procedure with a 90 day probationary period for new hires. Job descriptions are updated and the personnel files are very well organized. The community appears to be providing adequate training opportunities to staff.

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
The Tribal Council recently completed and adopted a public services ordinance to meet the conditions for applying to the RCA for a provisional certificate. The utility operator, Charlie Spud, has the following certificates: Water Treatment OIT Exp. 12/31/07 Wastewater Collection OIT Exp. 12/31/08 Wastewater Treatment OIT Exp. 12/31/08 Water Distribution 1 Exp. 12/31/07 The Tribal Council has adopted an organizational chart which they plan on including as part of the business plan for sanitation utilities.

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
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.
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.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The utility operator consults with the manager on a daily basis, however does not provide any formal operation and maintenance reports. The manager stated that the operator was very good about keeping him informed on the condition of the utility. The operator maintains an adequate level of supplies and spare parts for the utility, however does not maintain an inventory control or critical spare parts list. The water utility completes and distributes its Community Confidence Report (CCR) and is not on the Significant Non-Compliance List.