Quarterly Report: 2014, April - June (Q4), Kwigillingok

Community:
Kwigillingok 
Staff:
Ken Berlin  
DCRA Regional Office:
Bethel regional office 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
Yes 
Agreement Date:
5/22/2008 
Entity:
Native Village of Kwigillingok 
Population:
349 2013 Department of Labor Estimate 
Assessment Status:
Assessment Completed 
Assessment Date:
12/28/2010 
Exp Date:
5/22/2010 
Last Updated:
7/8/2014 
Community Sanitation Overview:
The village council operates the central watering point and washeteria. A new water treatment plant is completed and producting potable water now. Water is derived from snow, ice melt and rain from a new man made lake reservoir and treated. They also have a wastewater lagoon. A new land fill site is being worked on and should be completed soon. About fifty percent of the residents are on the flush haul system, the remainder use honeybuckets. Honeybuckets are disposed by residents at private pits. The school operates its own surface water treatment facility but shares the wastewater lagoon with the washeteria.  
RUBA Status & Activities This Qtr:
RUBA staff traveled to Kwigillingok on April 8-9, 2014 to assist the administrator with CY14 budget and present the community's RUBA report to Kwigillingok IRA Council, which operates the community‚Äôs central watering point and washeteria. The tribal council meeting was postponed due to no quorum. Upon arrival, RUBA staff worked with the tribal administrative and finance staff on developing draft budgets for CY14 using the actual revenues and expenditures for CY13 January to December QuickBooks finance report. This process took longer because the administrator was recently hired and had a hard time comprehending how the QuickBooks Profit and Loss, Budget vs. Actuals was set up. RUBA staff also went over and explained the city budget manual and how it could be used by the administrator in putting together a draft budget for the tribal council. Some of the tribal department draft budgets were already completed and RUBA staff recieved copies of the draft budgets. RUBA staff also toured the water treatment plant and the washeteria. The following day, RUBA staff worked with the admininstrator and the finance staff and reviewed some the draft budgets the administrator developed. But based on the CY13 actuals the draft budgets were not realistic. RUBA staff went over the water and wastewater haul draft budget and pointed out where some of the expenditure categories were missing from the draft budget. RUBA staff had to explain how a realistic budget can be developed using the actuals revenues and expenditures from CY13. The administrator said he now has a better understanding how to develop more realistic budgets by using this method. The administrator admitted that he did not have a real understanding of how to develop a realistic overall organizational budget before but now he has a better understanding and he will work on the draft CY14 budgets. RUBA staff also met with the administrator and the bookkeeper concerning organizational structure of the Kwigillingok IRA Council. Following the on-site visit, RUBA staff send the administration and finance staff of the Native Village of Kwigillingok samples of budgets, budget manual, financial reporting formats and instructions. The Native Village of Kwigillingok council bookkeeper currently provides finance reports using the QuickBooks Profit and Loss, Budget vs. Actuals to the council members. But the reports are long and hard to read and comprehend to the council members and they requested a more simple finance report. The financial reporting formats sent to the Native Village of Kwigillingok were developed by RUBA staff in the Bethel office. 
RUBA Activities for the Coming Qtr:
Assist with development of a CY14 budget.
Scores:
 
Essential Indicators:
20 of 26
Sustainable Indicators:
21 of 27
Total Score:
41 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.
No 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.
Yes A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The CY14 budget is not completed but the administration and finance staff are working on it. The finance reports are up to date to December 2013 with meeting minutes. Without the CY14 and current finance reports RUBA could not verify if the water and wastewater utility is financially sound. The utility's electric billing statements were not provided. Fuel is bought from a local vendor. The new washeteria is subsidized from general fund accounts, mainly from equipment rental. The flush haul system is subsidized from Kwigillingok Power Company. A new water treatment plant is completed and conveyed to the Kwigillingok IRA Council. The current flush and haul rates are low and are being reviewed by staff to raise rates to cover operation and maintenance costs. A new business plan is being created for the new water treatment plant and washeteria. A rate study for the flush haul system is being considered for next quarter.

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
Kwigillingok IRA Council has a collection policy, but it needs to be updated. Customers are billed every month. Accounts receivables, accounts payables, payroll system, cash receipts and cash disbursement system are computerized in QuickBooks Pro 2012. The flush haul system is managed by the Kwigillingok IRA Council and the Kwigillingok Power Company is managed by an advisory board. The washeteria is managed by the tribal administrator. A chart of accounts is on file. Accounts are reconciled every month. A purchase order system is in place.

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 IRS confirmed compliance on June 30, 2014. Alaska Department of Labor and Workforce Development reported that Kwigillingok has filed all required employment security reports on June 25, 2014. March-April 2014 Lien Watch indicates no liens against the community.

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
Kwigillingok IRA workers compensation insurance coverage is valid as of March, 2013 with Alaska National Insurance Company. The Bethel regional office has a copy of the personnel policy, which includes job descriptions. This personnel policy is currently being updated. All staff are evaluated each year. The utilities director emphasized that the operators are on a performance based evaluation and their hours are based on their workload. The utility personnel files are complete and contain I-9s. The personnel policy contains provisions for an employee probation period, which is followed. When training opportunities become available for employees, they are allowed to attend.

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.
No 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 utility is operated by the Kwigillingok IRA Council. The council meets regularly each month and is active in policy making for the utility. The council complies with the Open Meetings Act for each regular meeting they hold. The meetings are posted three days in advance with written flyers throughout the community. The utility manager has worked for the Kwigillingok IRA Council was hired in mid 2013. The bookkeeper has been working for the IRA Council since 2004. A new water treatment operator was hired recently and is currently being trained on the job by ANTHC. The water operator is certified Small Water System Treated and Water Treatment Provisional . . The bookkeeper and utility manager attend training sessions when they become available. Utility Ordinance number 2005-10-01 was submitted to the Bethel regional office, as was an organizational chart. These documents are in the community file.

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.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The Kwigillingok IRA Council operates the new washeteria. Community members use rain water and ice for drinking water. The tribe provides services to empty wastewater tanks and water haul services. The utility operator is certified Small Water System Treated and Water Treatment Provisional . The preventative maintenance plan for the new water treatment plant and the new washeteria is outlined in the operations and maintenance manual. The utility manager does spot checks to the washeteria and verbally receives information on maintenance and other issues which is written and presented to the council at their monthly meetings. The utility manager stated he holds safety meetings once a month but did not submit a written safety manual. The utility has not suffered any major problems or outages due to management issues to date. The utility ordinance states that the primary service shall be to provide water haul service and wastewater tank evacuation of homes. No inventory control or critical spare parts lists were provided, but the ANTHC engineer told administrative staff the new systems will come with both. The CCR report is on file and the April 2014 SNC listing did not include Kwigillingok.