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

Community:
Akutan 
Staff:
Roberta Eleazer  
DCRA Regional Office:
Anchorage 
Gov't Type:
Second Class City 
Borough:
Aleutians East Borough 
Agreement?
No 
Agreement Date:
 
Entity:
City of Akutan 
Population:
1027 (2012 DCCED certified estimate) 
Assessment Status:
Assessment Completed 
Assessment Date:
1/6/2012 
Exp Date:
 
Last Updated:
12/26/2013 
Community Sanitation Overview:
Water is supplied by a local stream and dam, originally constructed in 1927. Water is treated and piped into all homes. A project is underway to develop two new water catchment dams, and construct a new 125,000-gal. water storage tank and treatment plant. Wastewater is piped to a community wastewater tank, with effluent discharge through an ocean outfall. Refuse is collected three times a week; a new landfill site and incinerator were recently completed. The city recycles aluminum. Trident Seafoods operates its own water, wastewater and electric facilities. Electricity is provided by Akutan Electric Utility, owned and operated by the City of Akutan. The City of Akutan has met all the essential indicators and 26 of 27 of the sustainable indicators.  
RUBA Status & Activities This Qtr:
Anchorage RUBA staff and the finance director, Dianne Woodward has had extensive communications this quarter regarding financial training for the council and the city clerk. However, Ms. Woodard has notified RUBA staff that she is vacating the position and a new finance director has not been hired. City Administrator, Tuna Scanlon set up tentative training dates and an on-site assessment for January 2013. The water utility operator has been in Anchorage most of the quarter with family medical issues and is aware that his water distribution provisional certificate will expire on 12/31/2013.  
RUBA Activities for the Coming Qtr:
Newly assigned RUBA staff will continue to work with the community as requested. Numerous on-site clerk, council, and payroll trainings have been requested by the finance director for the next quarter. RUBA staff will update the RUBA assessment.
Scores:
 
Essential Indicators:
25 of 25
Sustainable Indicators:
25 of 27
Total Score:
50 of 52

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
No 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 City of Akutan approved its FY14 budget, which includes a general fund transfer to the water utility for $72,500. Customers are not charged a monthly fee for water and wastewater; so cable fees, diesel sales and the general fund subsidize the water and wastewater enterprise. The finance director is based in Anchorage and provides monthly financial statements that are submitted to the council. The monthly financial reports have a budget versus actual format and show the remaining amount for each enterprise. Fuel is ordered every six months. There is no line item in the expenditures of the water and wastewater budget that state funds are entered into a repair and replacement account. YTD expenditures and revenues are near the budgeted amounts. The finance director provides monthly financial information to the city administrator and the council. Budget amendments are completed as necessary.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
N/A 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
Collections policies are included in the Akutan Code of Ordinances. The city uses the pre-pay system, AMPY, that incorporates the electric, water and garbage collection fees from city customers. There is an accounts receivable system in place for the city's utilities. The city uses Assyst accounting software for all accounting and payroll transactions. The Anchorage office has direct control of the capital fund accounts and the Akutan city office has direct control of the general fund accounts. The finance director is working to resolve high balances shown on the accounts payable report from the Assyst accounting software. The city is also using the Assyst accounting software to process cash disbursements. The chart of accounts for both the Anchorage office and Akutan office show all assets, liabilities, revenue sources and expense for the city. Assyst is also used to manage monthly bank reconciliations. The Akutan Code of Ordinances outlines purchasing procedure and states that the mayor or the mayor's designee is the purchasing agent for the city.

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 granted tax clearance for the City of Akutan on December 12, 2013. The city is not listed on the Department of Labor's July-August Lien Watch report and received tax clearance through December, 2013.

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
The City of Akutan has a workers compensation policy through AMLJIA. Although the city currently has an employee handbook, a new employee handbook from AMLJIA is under review by the city. Personnel files include all necessary documents. City staff are encouraged to attend trainings.

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 Akutan Code of Ordinances establishes the wastewater and water utility and the city accepts ownership and maintains the utility. The utility manager is the public works director and holds the office of mayor. The bookkeeper is the financial director and is based in Anchorage. There are two certified operators employed by the city. One operator is certified in Small Water Systems Treated and Water Distribution Provisional; which expires on December 31, 2013. RUBA staff received an updated organizational chart for the utility.

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".
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 main water operator has been in Anchorage this quarter with family medical issues. Back-up operator Brett Willis has been filling in. Irregular flights and intermittent hovercraft service between Akun and Akutan Islands have resulted in sample shipment difficulties and the utility is on the October 2013 SNC list. The finance directed stated that the operators are very responsible with taking the water samples. One operator is certified in Small Water System Treated and Water Distribution Provisional; both expire on December 31, 2013. The other operator is certified in Water Distribution Provisional and Water Treatment Provisional; both expire on December 31, 2013. The City is aware of the expiration of the certificates and requested contact information for the Environmental Program Specialist. The city has adopted the Operations and Maintenance Manual for the Water Treatment Plant from the Alaska Native Tribal Health Consortium dated September 2008. The lead operator routinely inspects the water treatment facilities according to the operation and maintenance manual. The public works department has daily safety meetings with the public works director. The lead operator provides verbal updates to the public works director; major issues go to the city council. The utility has an inventory control and critical spare parts list.