Quarterly Report: 2009, July - September (Q1), 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:
118  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
11/17/2008 
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:
Because of limited revenues, the City of Shageluk reduced their open hours to Mondays, Wednesdays, and Fridays and the council reduced the office staff to the administrator's position. Shageluk has submitted their 2009 budget but has to submit current monthly financial statements. They are not on the Environmental Protection Agency's Significant Non-Compliant List.  
RUBA Activities for the Coming Qtr:
RUBA staff will continue to work with the City of Shageluk to satisfy deficient essential and sustainable indicators.
Scores:
 
Essential Indicators:
25 of 27
Sustainable Indicators:
20 of 27
Total Score:
45 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.
No 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
The FY09 budget is on file. The last monthly financial report on file is for March 31, 2008. Because the monthly financial reports are not up to date, it can not be determined whether or not YTD revenues and expenditures are above or below the budget. Written financial reports and an outline for the manager's narrative report are placed in the meeting packets and given to council members prior to each 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 their outstanding electric bill. Fuel purchased was for 7,000 gallons and is waiting for additional revenues to cover the cost. The purchase is 3,000 gallons less than last summer's purchase of 10,000 gallons.

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
A copy of Shageluk's utility ordinance is on file in the Bethel regional office. The City does not have a water and sewer system in place to serve all residents. The school and the post office are billed on a monthly basis. The system for accounts payable and accounts receivable is in place and is done manually. The payroll system is done manually and has been adequate to meet their record keeping needs and to keep up to date with 941 tax reports. A chart of accounts has been developed and is used to track cash receipts and disbursements. Bank reconciliations are up to date. A purchase order form has been developed for the utility service workers and a copy is contained in the file.

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
According to the last IRS report, the City of Shageluk is missing one 941 report for the third quarter of 2007. IRS has the payment for this quarter but does not have the completed report. A copy of the report has been forwarded to IRS from the City of Shageluk. Otherwise they are in compliance with all other filing and deposit requirements and have no liens. The State of Alaska, Department of Labor stated the City of Shageluk is in compliance with employment security tax requirements.

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.
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.
No 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
Shageluk's workmen's compensation insurance is valid through 7/1/2009. Job descriptions for the utility workers are adequate and contained in the file. Since the new administrator has come on board, there have been no evaluations for the utility staff. Personnel folders are kept up to date with I-9's, 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 entity is known and set and the council is active in policy making for the utility. The school receives sewer service, and evacuation service for the ten private homes that have privies is done on a prepaid basis. The council needs to ensure that the city administrator continues to maintain the billing system for the school. The administrator manages the utility services and maintains the accounting system. The office staff was reduced to the administrator's position and the open hours were reduced from five open days to three. The utility worker is adequately trained and experienced. Shageluk's utility ordinance is on file. An organizational chart that reflects the current structure is posted in the Shageluk office. The city council meets on a monthly basis and complies with the Open Meetings Act.

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 utility operator has a Water Treatment and Distribution Provisional Certificate which expires on 12/31/09. Shageluk's preventative maintenance plan is contained under Chapter 2 of the Operations and Maintenance Manual. A written daily log is kept each day by the utility worker. He uses the forms from the Operations And Maintenance manual. In addition, he gives a monthly verbal report to the city council. Copies of the utility worker's maintenance check list and daily work report are contained in the Bethel regional office file. The 2007 annual water quality report is filed in the Bethel regional office and was prepared by Water Systems Services. A copy of Shageluk's safety policy is located in the Bethel regional office file. The utility is not on the Significant Non-Compliance list. Inventory control and critical spare parts lists are not being maintained.