Quarterly Report: 2013, October - December (Q2), Glennallen

Community:
Glennallen 
Staff:
Kathy Atkinson  
DCRA Regional Office:
 
Gov't Type:
Community Non Profit 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Glennallen Improvement Corporation 
Population:
589  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/8/2013 
Community Sanitation Overview:
All year-round homes in the community are fully plumbed. Although most residents have private wells in the Glennallen area, the water is often of poor quality. Glennallen Heights utilizes two wells to serve a piped system, and a local private business delivers water by truck to fill home water tanks. The majority of downtown is connected to a piped wastewater system operated by the Glennallen Improvement Corp. The wastewater system serves 52 homes and businesses, and is being expanded to the Alaska Bible College and the Glenallen Heights subdivision. Those residences not served by the wastewater system have wastewater tank systems but permafrost and high water tables cause drainage failures. Refuse collection services and the Class 2 permitted landfill are operated by Copper Basin Sanitation in Glennallen. Copper Valley Electric purchases power from the state-owned Solomon Gulch Hydro Facility and owns diesel plants in Glennallen and Valdez. 
RUBA Status & Activities This Qtr:
On October 11, Anchorage RUBA staff traveled to Glennallen to attend the wastewater utility board meeting and to assist with financial record-keeping and tax issues. Staff gave the utility board members an update on the status of the Glennallen Improvement Corporation (GIC) which manages and operates the piped wastewater distribution and treatment system. RUBA staff discussed the next steps the board needs to take and the roles and responsibilities of GIC board members and staff.  
RUBA Activities for the Coming Qtr:
RUBA staff recommends the Glennallen Improvement Corporation continue to hold board meetings regularly to address and resolve any outstanding financial issues impacting the utility such as taking action to collect on delinquent accounts. Staff will travel to Glennallen on Junuary 14-16 to work with Glennallen's wastewater utility board members, the bookkeeper and the new manager to assist with RUBA compliance. RUBA remains available by phone, email, and fax to assist the Glennallen Improvement Corporation.
Scores:
 
Essential Indicators:
11 of 26
Sustainable Indicators:
5 of 26
Total Score:
16 of 52

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.
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 only function of the Glennallen Improvement Corporation is the utility service. They do not have a current budget.

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.
No An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
No An accounts payable system is in place.
No The payroll system correctly calculates payroll and keeps records.
No A cash receipt system is in place that records incoming money and how it was spent.
No The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
No A chart of accounts is used that identifies categories in a reasonable, usable manner.
No 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
A contract bookkeeper is responsible for bookkeeping. The former bookkeeper used Quicken and Excel spreadsheets for the utility accounting; she retired in mid-August, 2012. The new bookkeeper is converting this year's financial data to QuickBooks.

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 Glennallen sanitation utility was advised they were behind on the state unemployment tax filing and payment for the third quarter of 2012. The utility has been up-to-date with all unemployment tax filings and deposits in the past. The utility's manager, president, and bookkeeper were notified so they can rectify the omission immediately. IRS correspondence has stated the Glennallen Improvement Corporation is in compliance with all tax filing and reporting requirements.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
No The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
No 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.
No The utility has an adequate written hiring process.
No 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.
No The utility provides training opportunities to staff as needed and available.
Personnel System Comments
Despite efforts in the past to create personnel policies and procedures, there has been no recent progress on this. Workers' compensation coverage for the Glennallen Improvement Corporation was purchased from Liberty Northwest Insurance is in effect from 11/5/12 to 11/5/13.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
No The policy making body is active in policy making of the utility.
No The policy making body enforces utility policy.
Yes The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
No 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.
No The policy making body meets as required.
No The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The utility has a strong utility ordinance in place but the collections policy is not being followed. The bookkeeping and accounting functions for the utility are contracted out to an individual. The State certified operator database indicates that there is no certified operator currently employed by the Glennallen Improvement Corporation.

Operation of Utility

Essential Indicators
Answer Question
No 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.
N/A 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 State certified operator database indicates there is no certified operator currently employed by the Glennallen Improvement Corporation. GIC provides piped wastewater service to the residents of Glennallen.