Quarterly Report: 2010, October - December (Q2), Kwigillingok

Community:
Kwigillingok 
Staff:
Flora Olrun  
DCRA Regional Office:
 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Native Village of Kwigillingok 
Population:
361  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/22/2010 
Community Sanitation Overview:
The village council operates the central watering point and washeteria. Water is derived from snow, ice melt and a lake reservoir and treated. Water haul services are provided by the council from the washeteria. The water is not fit for human consumption. 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 sewage lagoon with the washeteria. Infrastructure improvements are underway to develop a community system. 
RUBA Status & Activities This Qtr:
Kwigillingok did not pass all essential indicators for second quarter 2010 because monthly financial statements for October through December, 2009 have not been submitted to the Bethel regional office. Their fiscal year is the calendar year. A budget for FY09 and financial statements to month ending September 2009 have been submitted to the Bethel regional office. Their worker's compensation insurance coverage with Alaska National Insurance Company is current. The Kwigillingok Washeteria is on the Environmental Protection Agency's Significant Noncompliance List which was dated October 2009. They are compliant with IRS and employment security taxes.  
RUBA Activities for the Coming Qtr:
Kwigillingok has not passed all essential indicators for second quarter of 2010. RUBA staff will continue to work with the Utility Manager on deficient sustainable indicators.
Scores:
 
Essential Indicators:
26 of 27
Sustainable Indicators:
18 of 27
Total Score:
44 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.
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.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
Kwillingok submitted the FY09 budget which uses the calendar year. The budget did not contain an expense line item for chemicals and testing which is due to the fact this system prohibits human consumption of the water and their filtering system is not complete. Based on this information, the water, sewer and laundromat budget for FY09 contained all operating items for the operation of the utilities. The Native Village of Kwigillingok adopts the annual budget, approves amendments, and receives monthly financial statements and progress reports from the utility manager. Both the laundromat and the tribal office building are up to date with electrical bills. Their fuel capacity is 103,000 gallons. When needed, the utility is subsidized from heavy equipment rental income as well as the general fund. Equipment rental income can range between a high of $10,000 a month to zero. They have bobcats, dozers, a front-end loader and a tiller. Other smaller equipment is available for rent like trailers and fuel carts. The budget includes a nominal amount for repair and replacement costs. The last financial statement submitted to the Bethel regional office is for the month ending September09. Because of the lack of current financial information,year-to-date revenues and expenses can not be analyzed. The laundromat budget is part of the Tribal budget and the flush and haul system is under the Kwig Power Company budget. Both are subsidized from unrestricted sources within each budget.

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 utility has a collection policy and actively follows it. When customer past due accounts reach ninety days, they no longer receive services until their outstanding bill is paid in full. A past due list of customers who no longer will receive services until their outstanding bill is paid was provided to RUBA. Customers are billed at the beginning of each month. A service order system is in place which tracks the amount of working hours for the utility operator and provides backup for customer billing. The tribe uses QuickBooks 2008 and it has the capacity to track customer's accounts, accounts payable and accounts receivable, correctly calculate payroll, and do financial reports. A chart of accounts was submitted to the Bethel regional office file for both the tribal and utility accounts. Bank reconciliations are done on a regular basis. A sample purchase order form, which requires prior approval before purchases are made, was also provided to 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
On December 22, 2009 IRS reported that Kwigillingok has filed all required tax reports, is in compliance with deposit requirements and has no outstanding liens against them. Alaska Department of Labor and Workforce Development reported that Kwigillingok has filed all required employment security reports.

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 submitted a current copy of their worker's compensation insurance coverage. The Bethel regional office has a copy of the personnel policy as well as job descriptions for the Tribal Administrator, Primary Laundry Attendant, Utilities Director and Tribal Accountant. 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 does contain 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.
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 utility is operated by the Native Village of Kwigillingok. The council meets regularly each month and is active in policy making for the utility. Although they are not required, the council complies with the Open Meetings Act for each regular meeting they hold. The meetings are advertised three days in advance by posting written flyers throughout the community. The Utility Manager has worked for the Native Village of Kwigillingok since 1983. The bookkeeper transferred from the Yukon Kuskokwim Health Corporation where she worked in payroll. The Laundry Operator has worked for Kwigillingok for approximately two years. The bookkeeper and utility operator attends training sessions when they become available. Utility Ordinance number 2005-10-01 was submitted to the Bethel regional office as was an organizational chart, which is reflective of the current structure. 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.
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.
No 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.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The Native Village of Kwigillingok operates the laundromat. The water supply from the watering point in the laundromat is not safe for human consumption and there are signs posted throughout the community, including private homes. The signs prohibit the use of the water for drinking, and provides instruction on how to boil water to make it safe for human consumption. Community members use rain water and ice for drinking. The tribe provides services to evacuate sewer tanks and haul services. Kwigillingok is on the SNC List dated October, 2009. They may be able to return to compliance by September, 2010. The utility operator worked for the Native Village of Kwigillingok since 1983 and attends training sessions when they are available. The Bethel regional office file contains forms for annual, quarterly and monthly preventative maintenance reports. The utility manager does spot checks to the laundromat 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 week 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 sewage tank evacuation of homes. Because the filtering system is not complete, the water service is limited to use for nonhuman consumption purposes such as for the laundromat. There is no water haul service offered yet. No Consumer Confidence Reports, inventory control or critical spare parts lists were provided.