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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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N/A
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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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N/A
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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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N/A
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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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N/A
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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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N/A
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YTD revenues are at a level equal to or above those budgeted. |
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N/A
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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 Ninilchik Water and Sewer Association currently 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.
All financial documents are projections. The association has approved the projected calendar fiscal year 2012 budget and the manager stated that budgets are available through fiscal year 2014 on hand. VSW and Michael L. Foster and Associates (MLFA) engineers provided the utility with separate operating budget proposals and from the two budget proposals, the utility was able to create the projected budgets. The projected budgets show that revenues to be generated will be sufficient to cover maintenance and operation costs, including repair and replacement costs.
A Homer Electric Association, Inc. bill for the Ninilchik Water and Sewer Association was provided and is current. The bill is for the UV wastewater treatment for the utility. Monthly financial reports with actual figures are not available as the association has not begun to bill customers. Once the system is constructed the bookkeeper, who has attended QuickBooks training, will generate reports using QuickBooks.
The utility manager provides a manager's report and projected financial reports to the utility board at the meetings. The manager's report consists of projected financial reports and correspondence with VSW and RUBA staff regarding the water and sewer project. Financial reports show projected income and expense figures against the proposed budget. Minutes need to be approved that reflect this. It is recommended that the minutes be typed. The association is actively planning for the new system and has gone through various discussions and budget variations that will best serve the community.
YTD revenues and expenditures cannot be generated because the association does not bill for services at this time. The association board can only project these figures. The manager does have a sample bill that needs to be approved by the board and will be utilized once the system is constructed and ready for customer use.
Budget amendments are completed and adopted as figures from the engineer have changed at various times. The association board makes amendments to the proposed budget as needed.
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Capacity Indicator: Accounting Systems
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Essential Indicators
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N/A
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The utility has adopted a collection policy and actively follows it. |
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N/A
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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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N/A
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The payroll system correctly calculates payroll and keeps records. |
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N/A
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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: |
Although the system has not been constructed, the association does have a wastewater and water ordinance that has a Billing and Payment section that defines Delinquent Bills, Administration and Enforcement. Other sections that are listed but not yet defined are Discontinuance, Restoration of Services, Unusual Demands, and other non financial sections.
The utility does not issue bills as the system has not been constructed. However, the utility will utilize QuickBooks to generate customer bills once constructed.
The bookkeeper does have projected accounts receivable in QuickBooks even though no billing has taken place. This is to show the association board what revenues to expect during the budgeting process and help generate realistic projections.
The association accounting system is QuickBooks, which is capable of calculating payroll. Currently there is no need for a payroll system. All bookkeeper / manager / operator time has been voluntary to date as these positions are currently under the same person.
A chart of accounts has been generated with the projected utility assets, incomes and liabilities. Once the system is constructed, the association will use QuickBooks as a cash receipt and disbursement system.
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Capacity Indicator: Tax Problems
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Essential Indicators
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N/A
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The utility has a system to accurately calculate, track, and report payroll tax liabilities. |
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N/A
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The utility is current on filing tax reports. |
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N/A
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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: |
As this is a newly formed association, the board does not have any employees beyond community volunteers. All bookkeeping/manager/operator time has been voluntary.
The Ninilchik Water and Sewer Association has filed for and obtained an Employer Identification Number (EIN) from the IRS. The association plans to utilize QuickBooks for payroll accounting.
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Capacity Indicator: Personnel System
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Essential Indicators
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N/A
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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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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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No
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The utility has an adequate written hiring process. |
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N/A
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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: |
There are no employees, therefore no need for worker's compensation insurance at this time. The association does have a Personnel Policy Manual. Within the manual there is no evaluation process, hiring process, or probationary periods stated within the policies. The manager stated there is a probationary period of 90 days but did not provide documentation.
There is a training section stated in the business plan and the association board has supported training opportunities when possible.
Job descriptions and assignment of duties are listed in the Ninilchik Water and Sewer Utility Business Plan.
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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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N/A
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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 Ninilchik Water and Sewer Association has been incorporated with the State of Alaska and has been given legal authority to operate a water and sewer utility. The association was created to be eligible for a water and wastewater project from VSW for the Old Townsite residents.
The policy making body is active in policy making of the utility planning process. They have held multiple meetings to prepare for the management of the utility once constructed.
The manager / bookkeeper / operator and has attended QuickBooks training and has obtained certification as a Small Water Treatment operator. Also, as manager, the same person has 30 years work experience and is proficient in the duties necessary for a utility manager.
The association has regular scheduled meetings and special meetings that comply with the Open Meetings Act, although as the association is a non-profit, this is not required.
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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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N/A
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The utility has a preventative maintenance plan developed for the existing sanitation facilities. |
Sustainable Indicators
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N/A
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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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N/A
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The utility has a safety manual and holds safety meetings. |
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N/A
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Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. |
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N/A
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The utility is operating at the level of service that was proposed. |
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N/A
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The operator provides status reports to the manager on a routine basis. |
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N/A
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The utility has completed and distributed its "Consumer Confidence Report". |
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N/A
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The utility is not on the "Significant Non-Complier" (SNC) list. |
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N/A
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The utility maintains an inventory control list. |
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N/A
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The utility maintains a critical spare parts list. |
| Operation of Utility Comment: |
The operator has certification in Small Water Treatment T that expired 12/31/12 and will need to be renewed by the June 2013 deadline.
As the system is not constructed to date, there is no preventative maintenance plan. A plan will be created during construction of the system.
There is no current facility to provide an operations and maintenance report.
The manager is also the operator so monthly reports go to the president of the association.
At this time there is no need for safety meetings or CCR reporting. The utility will begin routine water testing once the system is constructed in order to meet all required regulations. There is no inventory or spare parts list at this time. These lists will need to be created once the system is constructed.
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