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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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No
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YTD revenues are at a level equal to or above those budgeted. |
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No
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YTD expenditures are at a level equal to or below those budgeted. |
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No
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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 has adopted a balanced realistic budget that lists all the revenues and expenses for the utility, and is in the process of amending the budget to include revenue from the new utility rates.
The new utility rates have 109 residential users being charged $80 per month and Southwestern Schools is charged $850 per month for water/wastewater utility service.
According to the most recent financial report (March 12,2013) YTD revenues are $ 708.00 lower than expected for this point in the fiscal year, however by examining the utilities clerk accounts receivable, collection rate were improved from 60% to 68%
RUBA staff has received copies of meeting minutes and the latest finance reports approved by the council.
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Capacity Indicator: Accounting Systems
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Essential Indicators
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No
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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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No
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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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No
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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: |
QuickBooks is now networked to three computers, the city administrator, utilities manager, and city clerk. The utilities clerk is responsible for entering financial transactions for utility bill payments, in the absence of the utilities clerk; the city clerk will enter utility bill payments. Financial data entry for FY13 is current and up to date. A current financial report was provided for FY13. Financial transactions from the years 2011 and 2012 are currently being entered in QuickBooks. The city now has a separate water/wastewater utility budget in QuickBooks. Current water/wastewater revenues versus expenditures are now provided in their monthly financial statements. A random review of accounts receivables for the past two month indicates that utility bills were issued within three business days of each month as required by the utility's billing procedures
Invoices are entered when paid; new invoices are kept in a file for unpaid water/wastewater utility bills. Payments are made at the end of each week. The utilities clerk maintains a summary record of unpaid bills.
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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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No
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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: |
Staff utilizes QuickBooks accounting software to process payroll. Manokotak owed payroll taxes for quarters 201106 for $543.76, 201109 for $631.88, 201112 for $541.19, 201206 for $393.98, and 201209 for $682.42 totaling $2793.16. On April 24 RUBA staff received confirmation from Wells Fargo showing that check# 1149 for $2793.16 made out to the IRS was cleared on 4/23/13. RUBA staff is waiting on IRS confirmation for form 941 filed for the tax period 201212.
On March 14, 2013 the Alaska Department of Labor (DOL) reported compliance with Alaska ESC tax obligations for the quarter ending December 31, 2012.
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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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No
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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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No
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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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No
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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: |
According to the Notice of Insurance, workers compensation insurance is provided by the Alaska Municipal Joint Insurance from July 1, 2012 to June 30, 2013. A check at the Division of Workers Comp Website confirmed the policy for the city is in effect. Manokotak received an updated personnel policy and job descriptions from AML. RUBA staff has a digital copy on file.
There are no written evaluations on file.
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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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Yes
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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: |
The utility ordinance identifies the city as owner and operator of the utility. The city adopted the utility ordinance in October 2005. RUBA staff has a copy of the ordinance on file. Meeting minutes for the past three months indicate that the city council takes an active role in enforcing the utility policy. Utility Billing is done on a monthly basis. The city is using Cornerstone Credit Services to assist in collecting delinquent accounts. The city administrator has three years experience on the job. She is quite competent and maintains all of the accounting systems in a professional and timely manner.
The utility is a Small Water Untreated System. According to the state website, the utility operator has the required level of training and certification for this system.
The city's organizational organizational chart was developed in 2005; it needs to be updated to reflect changes that have taken place since then.
The meeting files and minutes confirm that agendas are posted and that all meetings are open to the public as required by the Open Meetings Act.
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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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Yes
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The utility is not on the "Significant Non-Complier" (SNC) list. |
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Yes
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The utility maintains an inventory control list. |
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Yes
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The utility maintains a critical spare parts list. |
| Operation of Utility Comment: |
Water operator staff is currently certified through 12/31/2015. An inventory control and critical spare parts list is maintained by the operator. RUBA recommends regular safety meetings. The utility is not listed on the Significant Non-Complier (SNC) list. The city manager receives verbal updates from the operator at least once a week. RUBA staff has a copy of the 2011 CCR on file.
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