Quarterly Report: 2012, July - September (Q1), Savoonga

Community:
Savoonga 
Staff:
Leroy Seppilu  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Savoonga 
Population:
712  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
10/26/2011 
Community Sanitation Overview:
The City of Savoonga turned over its financial management control of the water and sewer utility to Alaska Rural Utilities Collaborative (ARUC)about two years ago. The city's water is piped down from a well about a mile south of the community. Most of the homes are connected to the water and sewer utility system. The utility sells treated water to the school. 
RUBA Status & Activities This Qtr:
Alaska Rural Utilities Cooperative (ARUC) provides full management and operation services to the city's water and sewer utility.  
RUBA Activities for the Coming Qtr:
RUBA staff will continue to monitor ARUC reports and provide assistance as requested.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
26 of 27
Total Score:
52 of 53

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.
Yes 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.
Yes The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
Yes The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
Yes YTD revenues are at a level equal to or above those budgeted.
Yes YTD expenditures are at a level equal to or below those budgeted.
Yes A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
ARUC sends monthly financil reports to Savoonga City Council. According to the water and sewer monthly financial reports provided to the city, the collection is about 93%. ARUC provides the community and RUBA staff monthly finance reports comparing year-to-date, monthly, and annually budgeted revenues and expenditures for the utility. Last financials reviewed were August 2011. ARUC pays all of the utility's electric bills in full on a monthly basis and ensures the utility has an adequate supply of fuel for operational purposes.

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.
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
Water and sewer customers are billed regularly from ARUC's Anchorage office. ARUC operates and manages the water and sewer system under an agreement with the city. Excel Spreadsheet is a format used to make financial reports and the reports are very comprehensive and complete. All water and sewer utility employees are paid by ARUC.

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 city's utility is managed by ARUC who is responsible for accurately calculating, tracking, and reporting payroll tax liabilities. On September 23, 2011, RUBA staff received confirmation via email correspondence from the IRS and Department of Labor that ARUC is current with all tax reports and deposits.

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
ARUC has general liability and workers' compensation coverage for the Savoonga Joint Utilities water and sewer utility system. The city itself purchases coverage using funds from Norton Sound Economic Development Corporation's Community Benefits Share Program (currently $100,000 a year).

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 has a memorandum of agreement (MOA) with ARUC to operate its utility. Through the MOA, ARUC has the authority to set rates, ordinances, policies, and procedures for the utility.

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.
Yes The utility has completed and distributed its "Consumer Confidence Report".
No 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
ARUC manages the city's utility operator(s) and has a preventative maintenance plan in place for the utility. RUBA staff verified that as of September 2011, the city is not on the Significant Non-Complier (SNC) list.