|The city of Diomede did not adopt and submit a copy of the approved budget for the fiscal year 2011 to Department of Commerce, Community and Economic Development. The city failed to submit the Community Sharing Revenue application for the fiscal year 2011. However, Diomede Joint Utilities has adopted a separate budget for the fiscal year 2011. The utility manager submits monthly financial reports (MFRs) to the city council. The reports compare actual year-to-date revenues and expenditures. RUBA staff has received a copy of MFR for the month of February 2011. The MFR indicates that the utilities' revenues exceed expenditures by a large margin. According to the most recent Status Report of Diomede Joint Utilities Electric Fund (February 28, 2011), the Fund shows that revenues surpass expenditures. The utility manager indicated that the utility has sufficient fuel to last until this summer when fuel will be delivered. The fuel is barged in once a year. The utility manger reported that the utility has a past due bill of over $100.000 to the Bureau of Indian Affairs fro the fuel credit. However, the city council is aware of the past due amount. The city council is confident that the city will provide sufficient funds to pay off the amount due before next fuel order. The city council will also allocate sufficient funds to purchase fuel for the next year by using money received from the Community Revenue Sharing (FY2011 and FY2012) and Norton Sound Economic Development Corporation (NSEDC) Community Benefit grant. The utility does not have a line item for repair and replacement expenses in the utility budget. According to the utility manager and the city administrator, the manager has provided written managerial report on the utility at the regular monthly meetings. The February 2011 monthly financial report indicates that the utility is on track with the budget and no budget amendments are needed.
The utility manager has very strong knowledge of the utility's finances and makes comprehensive monthly financial reports to the city council. The utility runs and provides local electricity, water treatment, water sales to the local school and a washeteria.