Quarterly Report: 2013, April - June (Q4), Igiugig

Community:
Igiugig 
Staff:
Barbara Higgins  
DCRA Regional Office:
 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Igiugig Village 
Population:
45  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
7/24/2013 
Community Sanitation Overview:
Igiugig is a village located within the Lake and Peninsula Borough and is at the south end of Lake Illiamna and at the headwaters of the Kvichak River. Igiugig is home to 65 year round residents, 20 who are school age children attending the Igiugig School which is part of the Lake and Peninsula school district. Igiugig is the hub for seven lodges and was reported to have as many as 15-20 air carriers a day during peak fishing season transporting fishers to and from the lodges. The village council provides a flowing water and sewer system to 13 residences and businesses and 17 homes are on the sewer system that pumps into a two lagoon holding system. The system has two lift stations. In the newer part of the community the homes are on individual water and septic systems and considered too far from town to be placed on the piped system. It was noted by residences of the newer part of town, it takes a great deal of treatment to the water to have good water. The systems are quite elaborate and cost a great deal of electricity and added cost in the filtering systems. There is a local watering point at the pump house in town. The village council owns and operates the washeteria, fuel distribution and sales, provides electricity, a library, has a class 3 landfill, vehicle rentals, a community green house, gravel sales, a building that houses the clinic and a very modern and self contained construction man camp. The village rents the state owned Maintenance/Airport building as the council offices and village maintenance shop. The village has a grocery store, post office, school operated by the Lake and Peninsula Borough and a Russian Orthodox Church and cemetery. The runway is a state owned facility and is 3,000 feet in length. The village council owns various pieces of heavy equipment, a roller, two dump trucks, a loader and grader, a rock crusher, bulldozer, three fuel trucks and a septic pumper trailer that is towed behind a village owned truck. The power plant is owned by the village council and produces electricity that is sold to the community. All the power lines are underground and at the new end of town three wind turbines are on line and feed into the power grid. A community green house is under construction and power for the green house will be generated from the wind turbines. The community water, which is ground water, had higher than allowable levels of arsenic and other metals. An elaborate system was installed by the ANTHC to specifically address and remove the arsenic levels in the current ground water that is piped, to meet required regulations and standards. There were problems in getting the system to operate correctly but has been corrected and is working to the extent and purpose intended. The village council is currently in the design phase through ANTHC for a water/wastewater project. This project will utilize surface water out of the Kvichak River system. The project will be a surface water intake system with a 50,000 gallon water storage tank with a membrane filter  
RUBA Status & Activities This Qtr:
Igiugig remains a progressive community striving to be ecologically responsible as well as planning and providing for sustainability of the culture and infrastructure in the community. Alaska Native Tribal Consortium (ANTHC) is the funding agency for the water/wastewater projects. The current project in the community is a water tank that will have an intake from a surface water source. ANTHC hired a local company as the contractor. The project is funded. Recent fall storms caused the Kvichak River bank to slough nearly to the fencing of the community's bulk fuel farm and Iguigig is looking for potential sources of funding to make the critical repairs. 
RUBA Activities for the Coming Qtr:
RUBA Staff will continue to be available to the tribal office upon request. It is recommended that the utility work on options for the proposed village water improvement projects that would bring the utility into regulatory compliance and meet the proposed level of service. It is recommended the utility review user fees or other sources of revenues that would provide sufficient revenues to cover placing funds into a Repair and Replacement account.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
24 of 27
Total Score:
50 of 53

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 village council adopted the FY13 budget in September 2012 and a copy of the approved budget was submitted to the Division of Community and Regional Affairs. The village council operates on a federal fiscal year, October to September. The budget includes an income line item of $18,500 as income from resident customers. This amount is based on 100% collection rate. Monthly financial reports are included in the agenda packets for the regular meetings and referenced in the meeting minutes. The reports compare actual YTD revenues and expenses to the budget. This quarter, the expenditures are exceeding revenues. According to the last received report (May 2013), the utility is current with electric bills. This is documented on the reports through interdepartmental transfer of funds, as the council owns the electric utility as well. The utility uses waste oil heat for the utility water plant and supplements with regular heating oil as needed. The Village Council is receiving shipment of fuel monthly through Everts Air. The Village Council has reserve funds to pay for fuel supplies, current deliveries are sufficient for summer 2013. The utility does have a line item for repairs; however there is no evidence of a Repair and Replacement line item with funds that are actually being set aside and are accumulating as necessary in the budget or the monthly financial reports. The meeting minutes and agenda indicate that the administrator provides a written report every month and the minutes reflect what was reported. Monthly financial reports indicate revenues and expenses are on track with the FFY13 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 billing and collection procedures are included in the utility ordinance adopted January 1997. RUBA staff has a copy of the adopted ordinance on file. The accounts receivable reports indicate that there are amounts more than 90 days past due. The council is proactive in collection for services and provides a number of services that require current accounts. A random review of accounts receivable files indicated that the utility bills are issued within the first week of each month, as required by the utility's billing procedures. Staff uses QuickBooks for bookkeeping. Customer invoices and payment for each customer are entered into the accounts receivable program. The utility bookkeeper uses QuickBooks Pro 2011 for financial recordkeeping, including all payroll records. The bookkeeper is proficient in the use of QuickBooks: all payroll records are up to date through May 2013. The utility clerk writes a receipt for any income received. A copy of every receipt is kept in a permanent receipt book. At the end of the week, new data from the receipt book is entered into the utility's computerized account system. All payments are made by check. Every check includes an amount, an expense account and a description of what the payment is for. A copy of paid invoices is kept in the vendor files. The utility's chart of accounts identifies all asset accounts (undeposited funds, bank accounts, and accounts receivable), all liability accounts (current, long-term and payroll liabilities), and fund balances. Income and expense accounts are identified in a manner that matches the income and expenses line items in the budget. Bank reconciliations are done regularly and have been completed through May 2013. The utility requires purchase actions for proposed purchases. All purchasing activities are authorized by the tribal president.

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
On June 21, 2013, RUBA staff received confirmation from the Department of Labor that the tribal council is current with all tax reports and deposits through March 2013. The IRS deemed the village council compliant with federal employment and/or excise tax filing requirements and federal tax deposit requirements through June 2013. There is no recorded notice of federal tax liens according to the lien watch report dated April 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 Notice of Insurance is posted in plain view in the village offices. According to the Notice of Insurance, workers compensation insurance is provided by the Alaska National Insurance Company from November 1, 2012 to November 1, 2013. A June 24, 2013 check of the Division of Worker's Comp website confirmed that the policy is in effect. A copy of the village council personnel policies is on file with RUBA staff. Job descriptions are current and expressly outline each employee's required duties. RUBA staff has copies of the job descriptions on file. The village council does have a written evaluation process. The administrator/council president performs employee evaluations on an annual basis. The hiring process is described in the utility's personnel policies. A copy of the policy is on file with RUBA staff. Personnel folders are current and available for all employees. The utility budget does not include an appropriation for staff training. However funding for training is provided through the village council's general fund.

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 ordinance identifies the village council as the owner and operator of the utility. Council meeting minutes confirmed that the council reviews policies and rates on an annual basis and makes changes as needed. Meeting minutes were provided for the quarter through May 2013 and confirmed that the village council takes an active role in enforcing utility policy. The administrator competently develops and oversees the utility budget, is the utility operator, and provides monthly reports to the governing body. The bookkeeper has over twenty years experience on the job. She is competent and maintains all of the accounting systems in a professional and timely manner. The utility is a Small Water System/Treated. According to the Alaska Department of Environmental Conservation website, the utility operators have the required level of training and certification for this system. The city adopted a utility ordinance in January 1997. RUBA staff has a copy of the signed ordinance on file. The village has an organizational chart that is updated as needed. The copy of the most current organizational chart is on file. Regular council meetings are held once a month; special meetings are held as needed. All meetings for the current quarter have been held as scheduled. The meeting files and minutes through May 2013 confirm that agendas are posted and that meetings are open to the public. While the tribal council is not required to meet the Alaska State Open Meetings Act, they practice the standards required by it.

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.
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.
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
According to the Alaska Department of Environmental Conservation website, the primary operator has a WT-Provisional and WD-Provisional certification that expires December 31, 2015 and has the required number of CEU's. The operator holds many other positions in the village and is encouraging other village council personnel to work on being certificated. The utility has a preventative maintenance plan that was developed by the Remote Maintenance Worker. A copy of the plan is on file with RUBA. The operator uses a checklist to verify that preventive maintenance is performed. A large portion of the system is not functioning to capacity and is in need of repairs. ANTHC is aware of the problems and a project is pending, The administrator checks the utility on a routine basis. The utility has a safety manual on file. The administrator is the operator. RUBA staff has a copy of the 2012 CCR on file. According to the utility clerk, the CCR was mailed to all residents in June 2013. The utility has an inventory control list and is on file with RUBA staff. The water utility is on the SNC list dated April 2013 as the system exceeded Arsenic MCL in 2008 and 2012. Next Arsenic sample is due 2013. To return to compliance, Arsenic concentrations need to be reduced below the MCL. The utility has approval to construct a new raw water intake, new water source, and a new direct filtration treatment plant with coagulant and hypochlorite. The system is currently in communication with ANTHC regarding plans for the new intake. Comments were submitted by Drinking Water Program staff that the current Arsenic removal system filter media may need replacement. The utility has a critical spare parts list on file. To prevent unnecessary outages, critical spare parts are kept in stock at the utility.