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Capacity Indicator: Finances
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Essential Indicators
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Yes
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All revenues and expenses for the utility are listed in the utility budget. |
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Yes
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The utility has adopted a balanced realistic budget. |
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Yes
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Monthly financial reports are prepared and submitted to the policy making board. |
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Yes
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The utility is current in paying all water/wastewater electric bills. |
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Yes
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The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply. |
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Yes
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The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. |
Sustainable Indicators
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No
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The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs. |
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Yes
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YTD revenues are at a level equal to or above those budgeted. |
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Yes
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YTD expenditures are at a level equal to or below those budgeted. |
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Yes
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A monthly manager's report is prepared. |
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Yes
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Budget amendments are completed and adopted as necessary. |
| Finances Comment: |
The city adopted its FY13 budget, that includes the enterprise fund budget, with Ordinance 11-02 on June 30, 2012. The water and sewer budget has an income of $87,526 and expenditures of $81,118. The budget is realistic and has the payroll, and all other normal operating expenditures for a utility enterprise. The city has an accountant on contract from Kodiak that handles utility financial transactions. The accountant provides monthly financial reports to the council generated from QuickBooks. Fuel is bought from Kizhuyak Oil on an as needed basis and has a financial plan to purchase fuel throughout the year. There is a line item for repairs and maintenance on the budget, but there is no separate account for repair and replacement funds. The city has revenues that exceed the expenditures within the budget. The accountant provides monthly reports to the mayor and council. Budget amendments are done as needed. The city accountant and mayor are working on a budget amendment that will be introduced at the next meeting.
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Capacity Indicator: Accounting Systems
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Essential Indicators
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Yes
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The utility has adopted a collection policy and actively follows it. |
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Yes
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The utility bills customers on a regular basis. |
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Yes
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An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. |
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Yes
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An accounts payable system is in place. |
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Yes
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The payroll system correctly calculates payroll and keeps records. |
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Yes
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A cash receipt system is in place that records incoming money and how it was spent. |
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Yes
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The utility has a cash disbursement system that records how money was spent. |
Sustainable Indicators
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Yes
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A chart of accounts is used that identifies categories in a reasonable, usable manner. |
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Yes
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Monthly bank reconciliations have been completed for all utility accounts. |
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Yes
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The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. |
| Accounting Systems Comment: |
In the Port Lions Code of Ordinances is Title 8: City Utilities, Solid Waste and Sewer Disposal that addresses the water and wastewater utility. Within code, the city has Title 8, Chapter 01, Section 220: Consequences of Non-Payment of Service Charges that addresses the collections policy. The city bills customers for water, wastewater and refuse on a single statement on the 24th of each month. The accounts receivable report generated from QuickBooks shows the highest amount due to the city for residential utilities for over 90 days is $797.The accounts payable report generated from QuickBooks shows all accounts the city owes to venders. There are some accounts that are grant funded on the report that show a high balance. The city utilizes QuickBooks 2010 and has an accountant on contract that travels to the city from Kodiak regularly to handle payroll. The city uses a sales book to generate a receipt for customers paying in cash and the receipt is also entered into QuickBooks. QuickBooks is used to record all cash disbursements. The Account Listing is the chart of accounts for the utility and has all bank accounts, accounts receivable, assets, accounts payable, credit cards, liabilities equities, income and expense accounts. The city uses QuickBooks for the bank reconciliations. The city has in the code of ordinances, Title 6, Chapter 05: City Purchasing Agent who is the mayor or the mayors designee.
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Capacity Indicator: Tax Problems
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Essential Indicators
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Yes
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The utility has a system to accurately calculate, track, and report payroll tax liabilities. |
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Yes
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The utility is current on filing tax reports. |
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Yes
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The utility is current on making tax deposits. |
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N/A
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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 Comment: |
The IRS report dated April 5, 2013 shows that the city is compliant with required federal tax deposits and filing and has no record of a lien.
The Department of Labor and Workforce Development, Employment Security Divisions report from March 18, 2013 states that the city is in compliance with state tax filing and deposits and is not on the January February 2013 Lien Watch.
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Capacity Indicator: Personnel System
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Essential Indicators
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Yes
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The utility has a posted workers compensation insurance policy in effect. |
Sustainable Indicators
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Yes
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The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language. |
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Yes
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The utility has adequate written job descriptions for all positions. |
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Yes
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The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. |
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Yes
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The utility has an adequate written hiring process. |
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Yes
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The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. |
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Yes
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The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations. |
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Yes
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The utility provides training opportunities to staff as needed and available. |
| Personnel System Comment: |
The city has a posted worker's compensation insurance policy in effect and posted on a community bulletin board in the city office. The policy is in effect from July 1, 2012 - July 1, 2013 from AMLJIA. The clerk stated the city has an adopted personnel policy. Employee personnel folders are thorough and complete. The utility's probationary period for new hires is three months.
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Capacity Indicator: Organizational Management
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Essential Indicators
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Yes
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The entity that owns the utility is known; the entity that will operate the utility is set. |
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Yes
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The policy making body is active in policy making of the utility. |
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Yes
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The policy making body enforces utility policy. |
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Yes
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The utility has an adequately trained manager. |
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Yes
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The utility has an adequately trained bookkeeper. |
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Yes
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The utility has an adequately trained operator or operators. |
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Yes
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The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. |
Sustainable Indicators
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No
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The utility has adopted an organizational chart that reflects the current structure. |
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Yes
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The policy making body meets as required. |
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Yes
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The utility complies with the open meeting act for all meetings. |
| Organizational Management Comment: |
In the Port Lions Code of Ordinances is Title 8: City Utilities, Solid Waste and Sewer Disposal that addresses the water and wastewater utility. The policy making body is active and informed in making and enforcing utility policies. The mayor and clerk are knowledgeable about the utility's policies, activities, and financial health. The utility has two certified operators for the water utility. The city is working on the policies and once completed an organizational chart will be drafted. The city meets as required by ordinance and follows the Open Meetings Act by posting meeting notices in three public places 24 hours prior to the meeting.
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Capacity Indicator: Operation of Utility
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Essential Indicators
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Yes
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The utility operator(s) are actively working towards necessary certification. |
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Yes
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The utility has a preventative maintenance plan developed for the existing sanitation facilities. |
Sustainable Indicators
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Yes
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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. |
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No
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The utility has a safety manual and holds safety meetings. |
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Yes
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Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. |
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Yes
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The utility is operating at the level of service that was proposed. |
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Yes
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The operator provides status reports to the manager on a routine basis. |
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Yes
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The utility has completed and distributed its "Consumer Confidence Report". |
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No
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The utility is not on the "Significant Non-Complier" (SNC) list. |
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No
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The utility maintains an inventory control list. |
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No
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The utility maintains a critical spare parts list. |
| Operation of Utility Comment: |
The primary operator is certified in Water Treatment 2 that expires on December 31, 2013; Water Distribution 1 that expires December 31, 2014 and water collection that expires December 31, 2012. There is an alternate that has the Water Treatment 1 and Distribution Provisional certifications that expire on December 31, 2013. The Operations and Maintenance Manual was prepared by the Alaska Native Tribal Health Consortium, Division of Environmental Health and Engineering, Department of Tribal Utility Health in July 2009. Maintenance is in chapter seven of the manual for the water treatment plant. The water operators hold informal safety meetings on a daily basis. Meetings include an overview of the daily operations and possible hazards between operators, but are not recorded. There have been no major problems or outages due to unresolved management issues. The operator provides updates to the council with written reports. The 2010 CCR was generated and distributed to water utility customers and posted in three public places. The water utility is not listed on the current January 2013 SNC List. The utility does not have an inventory control list or a critical spare parts list.
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