Quarterly Report: 2012, April - June (Q4), Shaktoolik

Community:
Shaktoolik 
Staff:
Leroy Seppilu  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Shaktoolik 
Population:
214  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
7/26/2012 
Community Sanitation Overview:
Water is pumped three miles from the Togoomenik River to the pumphouse, where it is treated and stored in a 848,000-gallon insulated tank adjacent to the washeteria. A piped water and wastewater collection system services most homes. 75 percent of households have complete plumbing and kitchen facilities. The school is connected to city water, and has received funding to develop a wastewater treatment system to serve the entire community. The city burns refuse in an incinerator. The landfill needs to be relocated; the current site is not permitted. 
RUBA Status & Activities This Qtr:
On May 29, 2012 Nome RUBA staff traveled to Shaktoolik to work with the acting city clerk on financial issues and the FY13 budget. The acting city clerk had inadvertently used checks from a closed bank account to pay for bills, employee payroll, tax liabilities and other vendeors. At RUBA's recommendation, the clerk contacted all vendors and employees to return the checks. RUBA staff then assisted the clerk in re-issuing checks from the active city checks. The IRS office in Fairbanks was also contacted and a new check sent, which included penalties and interest. RUBA staff reviewed and commented on the FY13 budget. after which, the council finalized and adopted. The FY13 Community Revenue Sharing Application had not been submitted and the city almost lost its Community Revenues Sharing funds. RUBA staff assisted the city in submitting the application so funds could be received.  
RUBA Activities for the Coming Qtr:
RUBA staff will travel to community to provide basic payroll and tax liability training. RUBA staff will assist the city clerk to attend basic Quickbooks training sponsored by NSEDC. RUBA staff will provide municipal election training for the city clerk as the city council acts as a utility board and to ensure all procedures are followed.
Scores:
 
Essential Indicators:
25 of 27
Sustainable Indicators:
20 of 27
Total Score:
45 of 54

Finances

Essential Indicators
Answer Question
Yes All revenues and expenses for the utility are listed in the utility budget.
Yes 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.
Yes A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
A sample monthly financial report was shown and reviewed with the new acting city clerk. Once the city fully starts using Quickbooks, RUBA staff will work with the city to implement it. The city is currently participating in Norton Sound Economic Development Corporation's Bulk Fuel Purchasing Program. The city ordered and received 17,000 gallons of diesel at $5.10 a gallon. The city subsidizes the fuel expenses from the Norton Sound Economic Development Corporation's Community Benefits Share Program funds by at least $4,000 a year.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
Yes 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.
No Monthly bank reconciliations have been completed for all utility accounts.
No 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
The city has a water and wastewater ordinance. The city is converting to Quickbooks and will be using the software for the billings as soon a training is provided. Payroll and payroll recordkeeping are already being implemented within Quickbooks. The city also subscribes to Intuit's Quickbooks monthly updates.

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.
Yes 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 city is up-to-date with payroll tax liabilities, filing reports and tax deposits. The acting city clerk inadvertently used a closed bank account's checks to pay for tax liabilities and before she realized she needed to use a toll-free number to electronically pay for the liabilities. RUBA staff had her talk with the IRS agent assigned to Shaktoolik and it was recommended they set up a new account for electronic payments.

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.
Yes 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
The city has workers' compensation coverage through Alaska Municipal League Joint Insurance Association. A newly appointed city clerk abruptly quit and a new acting city clerk was appointed. The city council posted a notice for city clerk job opening and is in the process of hiring a new clerk. The utility has adopted Personnel Policy, which has been reviewed by AMLJIA. The utility has adequate written job descriptions for all positions. The written personnel evaluation process ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job training, and evaluations. The utility provides training opportunities to staff as needed and as funds are available.

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.
Yes 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 city council acts as a utility board. The council places water and wastewater issues on the council meeting agenda in the monthly city council meetings. The entity that owns the utility is known; the entity that will operate the utility is set. The policy making body is active in policy making of the utility and enforces the policies. The utility has an adequately trained manager, bookkeeper and operator. The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open meeting act for all meetings.

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.
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.
Yes 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
According to the April, 2012 Significant Non-Compliant list, the city is not on the list. The utility operator is certified as Provisional 1. The utility has a preventative maintenance plan for the sanitation facility.