Quarterly Report: 2014, January - March (Q3), Kongiganak

Community:
Kongiganak 
Staff:
Ken Berlin  
DCRA Regional Office:
Bethel regional office 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Native Village of Kongiganak 
Population:
456 2013 Department of Labor Estimate 
Assessment Status:
Assessment Completed 
Assessment Date:
8/18/2011 
Exp Date:
 
Last Updated:
4/3/2014 
Community Sanitation Overview:
Treated surface water is hauled from the washeteria. Some people use rain water during the summer and ice in the winter for drinking and other uses. Homes are not plumbed and residents use honeybuckets and bunkers which are emptied and hauled off to the lagoon. The community's washeteria/water treatment plant was built and opened in 2001, and includes a 1.5 million gallon water storage tank. Piped water and wastewater service is provided to the school; no other structures are connected to the system. A watering point at the washeteria provides water at .25 per gallon and a half. Electricity is provided by Puvurnaq Power Plant.  
RUBA Status & Activities This Qtr:
The CY14 budget nor any finance reports have been submitted by Kongiganak. Without the budget and finance reports RUBA could not determine if the utility was receiving revenues sufficient to cover operating expense. The Alaska Department of Labor deemed the tribal council in compliance with tax deposits and reports up to December 2013. IRS deemed Kongiganak Traditional Council compliant to January 13, 20114. No tax liens were reported on the January-February 2014 Lien Watch. Workers compensation insurance coverage is through Liberty Mutual as of March 31, 2014.  
RUBA Activities for the Coming Qtr:
RUBA staff will follow up on the development of the calendar year 2014 budget and monthly finance reports with the Kongiganak Traditional Council. RUBA staff recommended that the new administrator and tribal council members attend DCRA's Utility Management Training classes. The administrator and the assistant bookkeeper need more training in QuickBooks, budgeting, and financial reports. A trip to work on a CY14 budget is planned within the next quarter.
Scores:
 
Essential Indicators:
19 of 26
Sustainable Indicators:
20 of 27
Total Score:
39 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.
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 CY14 budget nor any finance reports have been submitted by Kongiganak. Without the budget and finance reports RUBA could not determine if the utility was receiving revenues sufficient to cover operating expense. An updated organizational chart is on file. The Kongiganak Traditional Council does not collect service fees except from the school which is billed quarterly per school year. They submitted a copy of their last billing that was made to the school. Administrator purchased and received 5000 gallons of HF #1 and use Community Revenue Sharing funds to pay for it. More fuel will be ordered to top off the bulk fuel tank. They are planning to use both Community Revenue Sharing and bulk fuel loan to pay for the fuel. Residents purchase prepaid water from the water treatment plant. They are current on all water/wastewater electric bills.

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
Kongiganak Traditional Council has on file a revised ordinance which stated a fifteen dollar service fee. According to the administrator the fee was discontinued because people dispose of their own honeybuckets at the lagoon site. Prepaid water is purchased from the laundromat. The ordinance specifies handling procedures and the designated site for the honeybuckets. The school is billed for water and wastewater on an annual basis. The accounting system is managed with QuickBooks. Kongiganak Traditional Council submitted a reconciled account listing which contained fund balances for each department.

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 utility uses the QuickBooks to accurately calculate, track, and report payroll tax liabilities. The Alaska Department of Labor deemed the tribal council in compliance with tax deposits and reports up to December 2013. IRS deemed Kongiganak Traditional Council compliant to January 13, 20114. No tax liens were reported on the January-February 2014 Lien Watch.

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.
No 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
Workers compensation insurance coverage is through Liberty Mutual as of March 31, 2014. The Bethel regional office has a copy of the personnel policy, which includes job descriptions. This personnel policy is currently being updated. All staff are evaluated each year. The utilities director emphasized that the operators are on a performance based evaluation and their hours are based on their workload. Spot checking one personnel file contained no I-9s. The personnel policy contains provisions for an employee probation period which is followed. When training opportunities become available for employees, they are allowed to attend.

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.
No 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.
Yes 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 utility ordinance is on file in the Bethel regional office but not being enforced at this time due to no services being provided, except for a piped water and wastewater to the school. The bookkeeper has attended QuickBooks and other trainings. The manager was hired in August 2013 and needs training in administration and finance and utility management. Both operators are not certified but are experienced and both are planning to attend classes to get certification. Kongiganak Traditional Council's organizational chart is filed in the Bethel regional office. Meetings are regularly scheduled every month and are open to the public and comply with the open meeting act.

Operation of Utility

Essential Indicators
Answer Question
Yes 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
Yes 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.
Yes 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.
No The utility has completed and distributed its "Consumer Confidence Report".
Yes The utility is not on the "Significant Non-Complier" (SNC) list.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
Both utility operators are not certified, but the main operator was certified in the past; both have experience and are planning to attend classes to get certifications. The file in the Bethel regional office contains Kongiganak Traditional Council's preventative maintenance plan. The administrator did not specify any spot checks for the utility. The utility's CCR is not on record with DEC. Inventory control lists and critical spare parts list have been provided to the Bethel regional office.