|The Chilkat Indian Village of Klukwan follows the calendar year as their fiscal year. Klukwan recently told RUBA staff that they have been recycling their 2011 budget, rather than creating a new budget annually. Without a current and realistic budget, it is not possible to adequately compare year-to-date revenues and expenditures, nor for the village council to ensure finances are in line and appropriate.
The village's FY11 budget outlined sufficient and realistic expenditures for the water utility, including repair and maintenance costs. However, revenues were not sufficient to cover expenditures. According to the FY11 Profit and Loss report, the water utility had a deficit of $6,748. In FY11, the village received $36,020 in Community Revenue Sharing, which was sufficient to subsidize the water utility deficit. With the use of Community Revenue Sharing as a subsidy source, the utility is able to cover all operating expenses and basic repair and replacement costs. According to the accrual-basis profit and loss reports, the water utility is netting positive. However, the village's water utility collection rate as of June 2012 was 55 percent with a delinquency rate of 45 percent. Customers tend to pay off delinquent accounts after receiving PFD payments, thus the delinquency will fluctuate throughout the year but does not stay at the low end of 45 percent. However, the utility is still not collecting enough user fees to cover operating expenses. In recent years, Community Revenue Sharing has been sufficient to subsidize the cost of the water utility.
The village council requests financial reports periodically, though this is not currently a regular practice. When requested, accrual-basis year-to-date profit and loss and balance sheets, along with a manager's report, may be provided to the council. The village undertakes full audits every year, due to receiving state and federal funds exceeding $500,000. Currently, most of these funds are in the form of various grants for specific projects. The annual audit reports should be a good source of information for yearly budgets as the city, and RUBA staff, work to produce more comprehensive budgets in the future. The village accountant takes all recommendations made in audit results and makes changes as necessary. The water utility receives its electricity from Island Power Electic Cooperative (IPEC), which bills on a monthly basis. The village provided evidence of payment, and reports having sufficient money on hand to purchase fuel as needed from nearby Haines.|