Quarterly Report: 2012, July - September (Q1), Akiachak

Community:
Akiachak 
Staff:
Fred Broerman  
DCRA Regional Office:
 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Akiachak Native Community 
Population:
644  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
10/26/2011 
Community Sanitation Overview:
The Akiachak Native Community-IRA (ANC) operates the washeteria, water treatment plant, garbage collection, and the honey-bucket haul system. The ANC-IRA council is the policy making body for the utility. A new well, water tank, water treatment plant and a road to the new lagoon have been completed. Currently, 72 homes and the school and teacher's housing units are served by a piped water system. About half of the community residents are not on a piped system, and haul water from the community's watering point. ANC provides container haul (hoppers) for sewage. 
RUBA Status & Activities This Qtr:
Correspondences were emailed to Akiachak Native Community- IRA on July 1, 2010, September 21, 2010, December 21, 2010, March 25, 2011, June 14, 2011 and September 19, 2011 requesting documents needed for verification of RUBA essential indicators. Follow-up phone calls have been made to the tribal office as well. At the time of this writing the tribe has not provided requested information needed to re-evaluate many RUBA indicators. Bethel RUBA staff visited the tribal office on July 21, 2011. The visit consisted of explaining to the IRA's new administrative staff RUBA compliance and how compliance is tied to receiving water and sewer construction grants. Assistance during the trip included working with the assistant business manager and bookkeeper in developing a detailed budget for the tribe that will comply with RUBA standards. From September 12-16, 2011 Bethel staff worked closely with the IRA to secure a State of Alaska Bridge Loan which the tribe needed for prepayment of a Delta Western delivery of heating fuel for the winter. Besides helping to expedite necessary steps to secure the Bridge Loan before Delta Western's latest delivery deadline, Bethel staff drafted a reassignment resolution in which the IRA ratified that commits the their FY 2012 and 2013 Community Revenue Sharing funds to paying off the Bridge Loan the tribe received in 2010 as well as the 2011 loan. The community subsidizes its water and sewer operations through gaming proceeds, but the tribe has not held a State of Alaska Gaming permit since 1990 and continues to hold gaming activities. Since May 2010, billing for the tribe's piped water and sewer system has been handled by Alaska Native Tribal Health Consortium's (ANTHC) Billing Assistance Service which bills about seventy-five residential and commercial customers. 
RUBA Activities for the Coming Qtr:
Bethel staff is willing to work with Akiachak IRA's administrative staff to help the tribe with non compliant RUBA Essential Indicators.
Scores:
 
Essential Indicators:
17 of 27
Sustainable Indicators:
13 of 27
Total Score:
30 of 54

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.
No The utility is current in paying all water/wastewater electric bills.
No 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.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The tribe has not provided the Bethel RUBA office with an adopted budget for FY2011 or FY 2012. Nor has it provided RUBA staff with monthly financial reports since July 2010, or meeting minutes that document that the tribal council has an opportunity to review financial reports. A September 30, 2011 phone conversation with Akiachak Limited (the community's electric utility) indicated that the IRA has not made payments on their water treatment plant and pump stations electric bills for over a year and has a past due amount totaling over $94,000. The community subsidizes its water and sewer operations through gaming proceeds. A September 30, 2011 query of the State of Alaska Gaming Permit data base indicates that the IRA does not have a 2011 gaming permit, nor has it had one since 1990, yet continues to hold gaming activities. This situation, along with significant unpaid federal payroll and gaming taxes from 2009 back to 2003, kept the tribe from receiving a bulk fuel loan from Alaska Energy Authority in 2010 and 2011. On September 16, 2011 Akiachak IRA received a State of Alaska Bridge Loan to pay for their fall bulk fuel delivery. They received 20,000 gallons of heating fuel on September 17, 2011 from Delta Western using a Bridge Loan for payment. The IRA's water treatment plant operator indicated that the delivery should be adequate to cover heating fuel for the winter. A September 15, 2011 correspondence from the Department of Commerce indicated that the tribe has a significant unpaid balance on its 2010 Bridge Loan. On September 16, 2011 the community ratified an assignment resolution that committed remaining FY 2012 CRS funds as well as FY 2013 CRS funds to paying off Bridge Loan obligations. A September 30, 2011 phone conversation with Akiachak Bulk Fuel Tank Farm revealed that the IRA has an outstanding balance of over $35,000 for the tribe's share in the operational and maintenance and renewal and replacement costs of the fuel facility.

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 tribe's accounting is done with QuickBooks Pro and they operate on a calendar fiscal year. An example of the IRA's water and sewer billing statement as well as their collections policy have been provided and are on file at the Bethel regional office. Billing for Akiachak's piped water and sewer services has been handled by Alaska Native Tribal Health Consortium's (ANTHC) Billing Assistance Service since May of 2010. An August 2011 financial summary from ANTHC indicates that the tribe has a ninety-nine percent year-to-date collection rate for piped customers in FY 2011. An accounts receivable aging report for the tribe's non-piped customers showing the status of commercial and residential accounts for 30, 60, and 90 days was requested on a September 19, 2011. However, an aging report has not been submitted to the Bethel regional office. Therefore, it could not be determined if the tribe enforces its collection policy or if they have an accounts receivable system in place which tracks non-piped customers and reports past due accounts and amounts.

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.
No The utility is current on making tax deposits.
No 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 tribe did not fill out and submit an Authorization to Request Federal Tax Information form to the Bethel RUBA office that was emailed to them on September 19, 2011. Therefore, it could not be determined if the tribe is current on its federal tax filings and payments for 2010 and 2011. However, the tribe has significant delinquent federal 941, 11C and 730 taxes and is listed on the July-August 2011 LIEN WATCH: A Review of Small Community Liens for tax years 2003-2009. As of this writing the tribe does not have a State of Alaska gaming permit and is not current on the fees owed to the Department of Revenue for gaming activities conducted without a permit from 2006 through 2011. A September 22, 2011 email correspondence from the State of Alaska's Department of Labor office in Anchorage indicates that the IRA is in compliance with their Employment Security Compensation payments.

Personnel System

Essential Indicators
Answer Question
No 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
A September 30, 2011 query done on the Department of Labor's Worker's Compensation employer database indicates that the tribal council does not have worker's compensation insurance for its employees. A June 20, 2011 phone conversation with the tribe's former insurance carrier and personnel at State of Alaska Department of Labor indicated that the tribe has not had worker's compensation insurance since June 15, 2010.

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
Akiachak Native Community Water and Sewer Ordinance as well as Akiachak Piped Water and Sewer System Business Plan are in RUBA files. The business plan was completed in January of 2005 and contains the business managers resume on page 33 and a utility organization chart on page 4. During this first quarter of 2011 the tribe's long time accountant and bookkeeper resigned. Besides a new accountant and bookkeeper, a new executive director and business manager have been hired. However, documents necessary for RUBA compliance have not been provided. The IRA needs to provide a new organization chart with verification that it has been adopted by the tribal council. As of September 29, 2011 the State of Alaska's Certified Water/Wastewater Operator Database indicated that Akiachak's lead water and sewer operator has an Operator in Training (OIT) certificate for water treatment and water distribution both due to expire on December 31, 2011. The operator's certification needs to be upgraded to the new provisional level certificate. The tribe's assistant water and sewer operator has water treatment and distributional provisional certificates which expire on December 31, 2013. Both operators need to take the level II test for operating the community's Class II water treatment facility.

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.
No The utility is operating at the level of service that was proposed.
No 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
A preventative maintenance plan for Akiachaks water treatment plant is on file at the Bethel regional office. The facility has capacity to service seventy more residences. Akiachak' water treatment plant's 2010 Consumer Confidence Report (CCR) and accompanying certification form indicating the CCR has been posted and distributed in the community was signed by a water plant operator on September 21, 2011. Both forms are electronically filed at the Bethel regional office. The water plant is not on the July 2011 Significant Non-Complier' (SNC) list.