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

Community:
Glennallen 
Staff:
Kathy Atkinson  
DCRA Regional Office:
 
Gov't Type:
Community Non Profit 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Glennallen Improvement Corporation 
Population:
589  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
10/26/2011 
Community Sanitation Overview:
All year-round homes are fully plumbed. Although most residents have private wells in the Glenallen area, the water is often of poor quality. Glennallen Heights utilizes two wells to serve a piped system, and a local private business delivers water by truck to fill home water tanks. The majority of downtown is connected to a piped sewage system operated by the Glennallen Improvement Corp. The sewage system serves 52 homes and businesses, and is being expanded to the Alaska Bible College and the Glenallen Heights subdivision. Most residences have identified septic tank systems but permafrost and high water tables cause drainage failures. Refuse collection services and the Class 2 permitted landfill are operated by Copper Basin Sanitation in Glennallen. Copper Valley Electric purchases power from the state-owned Solomon Gulch Hydro Facility and owns diesel plants in Glennallen and Valdez. 
RUBA Status & Activities This Qtr:
On May 20, 2011, new RUBA staff (Kathy Atkinson) was assigned to this community. Documents were requested on June 28 and July 7, 2011; and again on September 20 and 30, 2011 There has been no response. 
RUBA Activities for the Coming Qtr:
RUBA remains available by phone, email, and fax to assist the Glennallen Improvement Association.
Scores:
 
Essential Indicators:
14 of 27
Sustainable Indicators:
11 of 26
Total Score:
25 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.
No The utility is current in paying all water/wastewater electric bills.
No 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 only function of the Glennallen Improvement Corporation / Association is the utility service. A profit and loss statement for the year ending 12/31/08 indicates that the utility received excess funds totally $8724. A financial report for January and February, 2009 shows revenue of $11,637 with expenses totaling $32,913.04. The budget report was in a non-standard format with the amount of revenue (Collections)being entered as a positive number and the expenditures being subtracted from the revenue. Year to date revenues and expenditures are available on a separate report. Budget reports are difficult to understand and no annual budget was provided.

Accounting Systems

Essential Indicators
Answer Question
No 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
A contract bookkeeper is responsible for bookkeeping. The utility manager reports that they use Quicken for the utility accounting. Budget reports provided were not in a standard format and were difficult to interpret. A review of the A/R report dated 10/1/08 indicates that A/R totaled $13,332.44 with $5,252.65 being more than 90 days pas due. The majority of these past due amounts are from the non-residential customers in Glennallen. The utility ordinance states 'Non payment by the 30th day of the month will be cause for G.I.C to disconnect the customer's service.'(Sec. N.2).

Tax Problems

Essential Indicators
Answer Question
No The utility has a system to accurately calculate, track, and report payroll tax liabilities.
No The utility is current on filing tax reports.
No The utility is current on making tax deposits.
No 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
No recent IRS verification of tax status is available as the Glennallen Improvement Association needs to provide a signed Authorization to Request Tax Information Status. The ESC statement dated September 28, 2011, says the Glennallen Improvement Association has tax clearance through June 30, 2011.

Personnel System

Essential Indicators
Answer Question
No The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
No The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
No The utility has adequate written job descriptions for all positions.
No The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
No 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.
No 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 corporation manager reported that no progress has been made on personnel policies and procedures. There are only two part-time employees of the Glennallen Improvement Association. Worker's compensation coverage is in effect from 4/18/09 to 4/18/10.

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.
No 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.
No The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The utility has a strong utility ordinance in place but the collections policy is not being followed. The bookkeeping and accounting functions for the utility are contracted out to an individual. The State certified operator database indicates that there is no currently certified operator employed by the Glennallen Improvement Corporation. there are a couple operators that have no employment status. RUBA Staff will contact organization to verify operator's name and certification.

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.
N/A The utility has completed and distributed its "Consumer Confidence Report".
No The utility is not on the "Significant Non-Complier" (SNC) list.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The State certified operator database indicates there is no currently certified operator employed by the Glennallen Improvement Corporation. Operator certification was renewed in 2009. GIC provides piped sewer service to the residents of Glennallen.