Quarterly Report: 2008, January - March (Q3), Shageluk

Community:
Shageluk 
Staff:
Flora Olrun  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Shageluk 
Population:
129  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/7/2008 
Community Sanitation Overview:
Residents haul treated well water and dispose of honey buckets in pit privies or bunkers. Residents are dependent upon the washeteria for bathing, laundry, and water, since no homes are fully plumbed. HUD houses constructed in 1991 use pit privies. The City washeteria/water treatment plant provides water to the city office building, post office and clinic. The school is connected to the sewer pipes. A sanitation master plan has been completed and funds are needed to proceed with the design and engineering of a community system. 
RUBA Status & Activities This Qtr:
An assessment of management capacity was completed in September 2007. FY 2008 budget and finance reports through the end of February, 2008 are on file in the Bethel RUBA office. The City of Shageluk has met all of the essential capacity indicators. RUBA staff received a copy of Shageluk's worker's compensation insurance coverage that is good through 7/1/2008. They are covered by Alaska Municipal League Insurance Association, Inc. The City of Shageluk is not on the Significant Non-Compliant List as of the January 2008 report.  
RUBA Activities for the Coming Qtr:
RUBA staff will be available if requested to assist with sustainable indicators. It is recommended that a chart of accounts is used that identifies categories in a reasonable, usable manner. Reconciliation of utility accounts needs to be completed monthly. Written personnel evaluations for the utility workers that tie the job description to the evaluations need to be completed. A safety manual needs to be located or developed and regular safety meetings held. Inventory control and critical spare parts lists need to be maintained for the utility services. The utility worker needs to use the forms from the operations and maintenance manual for his daily written logs.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
20 of 27
Total Score:
47 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
The FY08 budget is on file. The budget includes a line item for repair and replacement costs. Monthly financial reports are current to the end of December, 2007 and are on file in the Bethel office. The format of the financial statments is as follows: annual budgeted amount for FY08, month-to-date expenditures, year-to-date expenditures and balance. Written financial reports and outline for the administrator's narrative report are placed in the meeting packets and given to the council members prior to each regularly scheduled monthly council meeting. At the meeting, the administrator verbally updates the council on financial and other city issues. The utility is current on meeting payments for all water/wastewater and electric bills. Fuel purchased for FY08 was 10,000 gallons and has been fully paid for. The purchase brings the fuel supply to an adequate level for the utility services.

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
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.
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 City of Shageluk adopted a water and sewer ordinance in 2005 and a copy is on file in the Bethel regional office. The City is converting the manual accounting system to the QuickBooks Pro computer system. Accounts receivables are in the system but accounts payable are still done manually. For the payroll system, QuickBooks has been set up to calculate the net pay for each employee. Processing the checks and the payroll register is done manually. A sample billing copy for sewer services is on file in the Bethel regional office. The City does not have a water and sewer system to serve all residents. A draft chart of accounts has been developed but is not being used. The administrator plans to use the new chart of accounts after she completes the setup of QuickBooks Pro. The file containing the bank statements is not up to date, thus a complete reconciliation for the utility service has not been done since the new administrator came on board. A purchase order form has been developed for the utility service workers and a copy is on file with RUBA.

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
QuickBooks Pro calculates each employee's tax deductions. The payroll journal is kept manually and IRS quarterly reports are up to date. Copies of the last four quarterly IRS tax reports are on file in the Bethel office. The City of Shageluk was declared compliant by IRS on 8/1/07.

Personnel System

Essential Indicators
Answer Question
Yes 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.
Yes 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.
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 personnel policy is completed but has not been adopted to date. RUBA received an updated copy of the City of Shageluk's workers' compensation insurance coverage through Alaska Municipal League Insurance Association, Inc. The City has coverage until 7/1/2008 and a copy of the insurance document is on file in the Bethel regional office. Job descriptions for the utility workers are adequate. Since the new administrator has come on board, there have been no evaluations conducted for the utility staff. Personnel folders are kept up to date with I-9s, job applications and completed personnel action forms. The utility worker is given adequate training opportunities when available.

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 City is enforcing utility policies with the YKHC health clinic, city office building and post office for water/sewer services. The school receives only sewer services and is billed each month. Evacuation services for the ten private homes that have privies are done on a prepaid basis. The bookkeeper position was filled in August, 2007. Both the city administrator and bookkeeper need QuickBooks Pro training. The utility worker is adequately trained and experienced.

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.
No 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 worker enrolled in 'Introduction to Small Water Systems Provisional level I Review and State Certification' class September 17th through the 21st, 2007 in Fairbanks. A preventative maintenance plan is contained in chapter two of the Shageluk Operations and Maintenance Manual. A written daily log is kept each day by the utility worker; however, he needs to use the forms from the operations and maintenance manual. The operator gives a monthly verbal report to the city council each month. The 2006 annual water quality report is on file in the Bethel regional office which was prepared by Water Systems Services. The utility worker has not had any safety meetings and was not able to locate a safety manual. A letter is on file in the Bethel RUBA office from the Department of Environmental Conservation dated September 10, 2007, indicating that the City of Shageluk Water System was taken off the Significant Non-complier List (SNC) for prior stage 1 violations. Inventory control and critical spare parts lists are not being maintained.