Quarterly Report: 2012, January - March (Q3), Akutan

Community:
Akutan 
Staff:
Brice Eningowuk  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Akutan 
Population:
1027  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/1/2012 
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. Sewage is piped to a community septic 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, sewer and electric facilities. Electricity is provided by Akutan Electric Utility. 
RUBA Status & Activities This Qtr:
On January 9-11, Anchorage RUBA staff advised the city to contact the IRS as there have been conflicting amounts between the IRS Taxpayer Advocate Service and the Federal State and Local Government sections. One states that the city has a credit and one filing due and the other stated that there are two credits and two filings due. RUBA staff contacted the Tax Payer Advocate Service to clear any issues. One of the filing is for the fourth quarter of 2011. RUBA staff notified the city to file both reports. On February 27, Anchorage RUBA staff was contacted in regards to contacting the IRS with IRS issues. The IRS had sent a letter to the city stating that the city owes taxes, but the city has a credit of over $30,000. Contact between the IRS and the city is not efficient as the city is on hold for times ranging 30 minutes to an hour before talking to an agent. Anchorage RUBA staff provided the city with contact information to open a case with the IRS Taxpayer Advocate Service in Anchorage. 
RUBA Activities for the Coming Qtr:
RUBA staff will maintain contact with city staff to maintain RUBA report and provide assistance upon request.
Scores:
 
Essential Indicators:
24 of 25
Sustainable Indicators:
22 of 27
Total Score:
46 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 FY12 budget has the Water/Sewer operating revenues at $150,900 and the operating expenditures at $120,555 for a surplus of $30,345 and was adopted on June 14, 2011 with non-code ordinance 11-04. 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 and the last delivery was August 21, 2011 of 45,000 gallons of diesel. There is no line item in the expenditures of the water and sewer 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
The water and wastewater utility does not charge customers, but Title 9: Utilities, Chapter 20: Sewer and Water Utility, Section 450: Consequences of Non-payment of Service Charges is in the Akutan Code of Ordinances to address if the city chooses to charge for water and wastewater. There is an accounts receivable system in place for the cable, electricity, harbor and dock that the city manages. The city uses Assyst accounting software for all accounting and payroll transactions. The Anchorage city 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. Title 5, Chapter 5 of the Akutan Code of Ordinances has the purchasing procedure and states the mayor or the mayors 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.
No 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 city uses Assyst to calculate, track and report payroll liabilities. A fax from the IRS dated March 21, 2012 states the city is compliant with federal tax filing, deposits, and has no record of a lien. The Department of Labor and Workforce Development, Employment Security Division report from March 13, 2012 states that the city is in compliance with state deposits, the city does have a large amount of credit but the city has not met state filing requirements and is not on the January - February 2012 lien watch.

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 is a member of the Alaska Municipal League / Joint Insurance Association, Inc. (AML/JIA) and has workers compensation current from July 1, 2011 to July 1, 2012. Although the city currently has an employee handbook, a new employee handbook from AML/JIA is under review by the city and to be adopted by the start of the next quarter.

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
No 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
Title 9: Utilities, Chapter 2: Sewer and Water Utility in the Akutan Code of Ordinances establishes the wastewater and water utility and the city accepts the 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 operators employed by the city that are certified. One operator is certified in Small Water System Treated and Water Distribution Provisional and both expire on December 31, 2013. The other operator is certified in Water Distribution Provisional and Water Treatment Provisional that both expire on December 31, 2013.

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.
No 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
One operator is certified in Small Water System Treated and Water Distribution Provisional and both expire on December 31, 2013. The other operator is certified in Water Distribution Provisional and Water Treatment Provisional that both expire on December 31, 2013. 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 O/M 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 CCR for 2009 was distributed, but the 2010 CCR has not been distributed. The utility is not listed on the January 2012 SNC list.