Quarterly Report: 2013, July - September (Q1), Chistochina

Community:
Chistochina 
Staff:
Kathy Atkinson  
DCRA Regional Office:
 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Cheesh-Na Tribe 
Population:
104  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
10/31/2012 
Community Sanitation Overview:
Almost half of residences have individual wells; the remainder haul untreated water from the Community Center. Sixty percent of residents use individual wastewater tanks; the rest have outhouses or pit privies. About 40 percent of homes are completely plumbed. The old landfill was closed and cleaned up. The refuse transfer facility is located near the airport; Copper Basin Sanitation transfers the refuse to Glennallen. Electricity is provided out of Tok by Alaska Power and Telephone. 
RUBA Status & Activities This Qtr:
On August 30, RUBA staff met with the Cheesh'na Tribal Council president and the consultant who has been training the council's office assistant hired a year ago, to conduct a management capacity assessment in Chistochina; the tribe's bookkeeper participated by telephone. Contingent on RUBA compliance, the tribe has been awarded $2,509,506 by the Village Safe Water program for construction of a new water processing building, community water distribution point, water distribution system, wastewater connection, and a community use septic tank and drain field that will serve the public buildings. The tribe's consultant gave staff a tour of the buildings including the tribal office which houses the health clinic, community hall, community center, maintenance building, and the existing water building and community water distribution point that is in disrepair.  
RUBA Activities for the Coming Qtr:
RUBA staff is available to provide assistance for any essential or sustainable capacity indicators that are not being met.
Scores:
 
Essential Indicators:
19 of 26
Sustainable Indicators:
14 of 27
Total Score:
33 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.
Yes A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The Cheesh'na Tribal Council does not have a constructed utility system. The association has funding allocated through the Village Safe Water (VSW) program, but construction is pending RUBA compliance. The tribal council - the tribe's governing body - will serve as the utility board once the project has been completed. There is no utility budget available to assess because the utility has not been built. Financial reports for programs run by the tribe are prepared and submitted to the tribal council at each meeting by the Chief Financial Officer, but the reports do not compare year-to-date revenues and year-to-date expenditures to annual budgeted amounts. Minutes from the last three council meetings and copies of the Chief Financial Officer's (CFO) financial reports from those meetings were provided; the written reports and verbal presentations by the CFO were reflected in the meeting minutes. Monthly financial reports for the utility with year-to-date revenues and expenditures cannot be generated until the utility has been constructed and the tribal council, acting as the utility board, begins to bill customers. Once the utility has been built and the project's final costs have been determined, the council will need to discuss and decide on utility rates. The tribe receives lease funds monthly for office space so there is considerable revenue that can be used cover or supplement the utility's operating expenses and repair and replacement costs, if needed. However, RUBA staff recommends the utility set the rates at a level sufficient to cover all utility operating costs. The tribal council is actively planning for the new system and has gone through various discussions and budget variations that will best serve the community. The council is current on paying all the electric bills for the community hall, the tribal council office and health clinic. An Alaska Power and Telephone bill was provided and is current. Fuel is delivered on an as-needed basis by Crowley or Fisher Fuel in Glennallen.

Accounting Systems

Essential Indicators
Answer Question
No The utility has adopted a collection policy and actively follows it.
No 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 Cheesh'na Tribal Council has not previously operated a utility. Tribal staff provided a draft of their utility policy that includes procedures for dealing with delinquent accounts, disconnection for nonpayment, and notice and hearing requirements for disconnection. Once the utility has been constructed, the tribal council will adopt final policies and procedures for the utility. The tribe uses Macintosh computers. Accounting has been done with Multi-Ledger by Check Mark software since 1990. Multi-Ledger is a full-feature software package with general ledger, accounts receivable, accounts payable, inventory, payroll, and job-costing capabilities. The tribal administrator and chief financial officer both report they are not interested in changing software. The chart of accounts provided includes accounts for tracking cash, accounts receivable, fixed assets, accounts payable, payroll taxes, accrued leave, loans, fund balances, revenue for each source of funds, salary expense, payroll taxes expense, advertising, supplies, contractual equipment, insurance, travel and utilities. Each different activity is assigned its own account number. The chart of accounts appears organized with revenue and expenses having a sub-category by function to allow for data selection. The only invoices issued are for office space rental. Reconciliations are done monthly for bank accounts on the tenth day of each month. The Cheesh'na Tribal Council uses a check request system. RUBA staff was given a copy of the tribe's forty-two page procurement policy. Under that policy, the administrator has authority to authorize purchases up to $5,000. Any purchase over $5,000 requires tribal council approval.

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
The tribe's Chief Financial Officer is responsible for calculating the tax owed, tracking, and making the required tax payments and filing reports. Correspondence from the Taxpayer Advocate Service and other information provided indicates the tribe is current with federal employment and tax filing requirements through June 30, 2012, and there are no recorded federal tax liens. A letter from the Department of Labor dated August 31, 2012, states the Cheesh'na Tribal Council has paid their unemployment taxes through June 30, 2012.

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 tribe has workers compensation insurance through Alaska National Insurance Company from October 1, 2002 through October 1, 2013 with no lapse in coverage; the policy is posted. The tribe has adequate written job descriptions for all positions and an adequate written hiring process. Tribal staff provided a thirty-seven page personnel policy that described the hiring process. The Cheesh'na Tribal Council exercises Indian Preference under US PL 93-638, Section 7(b) which gives preference for training and employment to members of the tribe before considering any other candidate. Employees receive insurance benefits, accrue annual leave, and are entitled to 12 paid holidays each year. Sick leave is accrued at a rate of eight hours each month for full-time employees. Sick leave for part-time employees is pro-rated. A performance review will be done six months after start of employment. Thereafter, employee performance reviews are conducted annually. Training opportunities for all employees are provided regularly. Tribal staff provided a copy of the I-9, job application and letter of acceptance for one employee as an example of documents kept in their personnel files. The tribe has personnel folders on every employee that contain an application, I-9, copies of personal identification, W-4 form, payroll authorization, training certifications and other pertinent information.

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
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 Cheesh'na Tribal Council is the only form of local government within the community. The tribal council meets quarterly as required by the tribal constitution and more often as the need arises. On the average, the tribal council meets ten times a year. Council meetings are advertised and the public is welcome to attend. Provisions are included on every agenda for hearing public comments. The tribal administrator is responsible for managing all day-to-day operations of the council. A part-time bookkeeper has been employed since 2001. The Cheesh'na Tribal Council has not adopted a utility ordinance but has adopted and enforces other policies such as personnel and follows the requirements of their tribal constitution. An organization chart was provided showing four full-time employees and three part-time employees under the current organizational structure.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
No 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.
No 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.
No The utility has completed and distributed its "Consumer Confidence Report".
No 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
In November 2011, three individuals in Chistochina received Small Water Systems Provisional Level 1 training; two passed the exams and are provisionally certified for water treatment and distribution. Since there is no utility in place, no preventative maintenance plan has been adopted. Once the utility has been built, inventory control and critical spare parts lists should be developed.