Quarterly Report: 2007, July - September (Q1), Klukwan

Community:
Klukwan 
Staff:
Lawrence Blood  
DCRA Regional Office:
 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Chilkat Indian Village 
Population:
109  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
11/29/2006 
Community Sanitation Overview:
Water is derived from a groundwater infiltration gallery and is stored in a 126,000 gal. tank. Approximately 90% of homes are connected to the piped water and sewer system and are fully plumbed. Due to seasonal water shortages and boil water notices, the village is seeking funding for a new water source and a 200,000-gallon water tank with chlorine treatment. The landfill needs to be expanded or relocated. A recycling center is available. Electricity is provided by Inside Passage Electric Cooperative.  
RUBA Status & Activities This Qtr:
RUBA staff has continued to provide telephonic assistance and participated in a joint teleconference with ANTHC and utility staff. The community has requested a RUBA reassessment and is committed to having the utility ordinance including an updated collections policy and the FY 07 utility budget completed and approved by the Tribal Council prior to October 15, 2006.  
RUBA Activities for the Coming Qtr:
RUBA staff will make a community visit on October 19 and 20, 2006 to perform a RUBA reassessment. The community has committed to having FY 07 budget completed and the utility ordinance approved by the council prior to the site visit. The Administrator also stated that with the recent rate increase and the improved collection rate, the utility is now receiving enough revenues to cover operating cost. RUBA staff will continue to provide telephonic assistance as needed.
Scores:
 
Essential Indicators:
21 of 26
Sustainable Indicators:
17 of 27
Total Score:
38 of 53

Finances

Essential Indicators
Answer Question
No All revenues and expenses for the utility are listed in the utility budget.
No 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.
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.
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.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The community has not adopted a formal written budget for the utility. The manager uses an informal system to control the utility's cash flow. Basically, the utility is living month to month and purchasing supplies and parts as funds become available. While they do not have a system to guide them, they do pay attention to their financial situation and have stayed out of serious financial problems. The community recently increased the utility rate from $30. to $40. per month for water, sewer and garbage. Because the utility is lacking a budget, it is unclear if the recent rate increase will provide sufficient revenues to cover O/M cost. Until recently, the utility operator's wages and payroll taxes have come out of the general fund or have been charged to other grant funds. It appears that present revenues are covering most of the monthly recurring operational costs; however, the utility is unprepared for unforeseen expenses.

Accounting Systems

Essential Indicators
Answer Question
No 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 several collection practices in place but has not adopted a formal collection policy. The tribal council recently approved an ordinance requiring residents to sign a customer service agreement and the utility has implemented a voluntary payroll deduction program. The community is currently using QuickBooks for their accounts receivable, accounts payable, and payroll. The community uses a manual receipt book system to record incoming funds, which is later entered into Quick Books. The same receipt book is used for all funds coming into the community. The QuickBooks program appears to be working well for them with very few problems. The utility uses both purchase orders and request for checks which are reviewed and signed by the manager.

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
Response from an inquiry to the IRS indicated that the utility is in compliance with federal employment tax filing and tax deposit requirements at this time.

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
Chilkat Indian Village has worker's compensation insurance through Alaska National Insurance, effective through 8/26/06. The utility has a well established and implemented personnel system. The community has an adopted personnel policy handbook which is issued to every employee. The utility has a written hiring procedure with a 90 day probationary period for new hires. Job descriptions are updated and the personnel files are very well organized.

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.
No 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
The tribal council is currently working on a draft public services ordinance to meet the conditions for applying to the RCA for a provisional certificate.

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
No 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.
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 consults with the manager on a daily basis, however does not provide any formal O and M reports. The manager stated that the operator was very good about keeping him informed on the condition of the utility. The operator maintains an adequate level of supplies and spare parts for the utility, however does not maintain an inventory control or critical spare parts list.