Quarterly Report: 2010, October - December (Q2), Akiachak

Community:
Akiachak 
Staff:
Ken Berlin  
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:
2/22/2010 
Community Sanitation Overview:
The Tribal Council operates the washeteria, water treatment plant, garbage collection, and the honey-bucket haul system. The Tribal 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 are served by a piped system; other residents haul water from the community's watering point and IRA provides container haul (hoppers) for sewage. 
RUBA Status & Activities This Qtr:
During this quarter the Akiachak IRA was contacted regarding RUBA requirements. They were also contacted regarding their bulk fuel order. They reported that a bulk fuel loan application is pending. The Tribal staff were contacted regarding Internal Revenue Service (IRS) and Department of Labor ESC deposits that were not filed. Tribal staff state that they have been making efforts to come into RUBA compliance. Verification is still pending.  
RUBA Activities for the Coming Qtr:
Continue to monitor finance and other RUBA essential indicators for compliance. Follow up with Akiachak IRA on 941 filing, gaming license and AEA loan application for bulk fuel ordered.
Scores:
 
Essential Indicators:
22 of 27
Sustainable Indicators:
24 of 27
Total Score:
46 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.
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.
No The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
Yes 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.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
Water and sewer finance reports are up to date to December 2009, Electric bills are up to date and 38,000 gallons of fuel was ordered on 8/27/09. There is a pending Bridge loan to pay for the 34,000 ordered for this fall. On 1/20/10 Mr. George reported that they have brought down their fuel bill by about half, however paying this has resulted in lack of funds for other expenditures. Water and sewer is subsidized at times of low cash flow with Gaming funds. The IRA has a pending Gaming license application.

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 accounting system uses QuickBooks Pro financial software. The organization meets both the essential and sustainable capacity indicators. Homes on piped system are billed at $118 per month. All others not on system are $10 per month. Yupik School District (YSD) signed a new water and sewer contract with ANC effective July 2008 to July 2013 in which the YSD will pay $35,000 per quarter. Collection rate for the piped system is 90% and 82% for honeybucket service. Water and sewer customer listing with accounts receivables is on file. Accounts delinquent more than three months are dealt with by the Manager. The Manager works with a collection agency on this matter.

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
Copies of the last quarterly reports and payroll deposits are on file. IRS reply in September indicates 941's are due for 2008 4th quarter and 2009 1st and 2nd quarter. Recent updates from the IRS Advocate indicates that Federal Tax liens have been filed for tax periods and tax returns outside of the authorization form. Total liens amount to $19,990 according to the statewide lien watch on the DRCA website. ESC reports that deposits have not been made for 5/15/09 to 8/30/09. Staff state that they made these deposits recently and are sending in documentation to the Bethel office. Mr. Lomack, Business Manager was contacted regarding the IRS deposits by fax and phone.

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.
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
Akiachak is coverage with Liberty Northwest was canceled effective 10/13/09 due to non-compliance with audit failure to provide required information and other underwriting reasons. The copy of cancellation notice was not received until 12/15/09. The IRA staff state that this was reinstated and will send a fax copy to the Bethel office. On 1/2010 the workman's comp policy was not yet reinstated.

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 board is active and has all the necessary policies in place and RUBA has copies on file. The utility manager (started 2002) and bookkeeper (started 2004) have years of experience and are competent. Tribal administrator's resume and operator's certification are on file.

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.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
Operators are certified.