Quarterly Report: 2010, April - June (Q4), Port Protection

Community:
Port Protection 
Staff:
Lawrence Blood  
DCRA Regional Office:
 
Gov't Type:
Community Non Profit 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Port Protection Community Association 
Population:
66  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
8/17/2010 
Community Sanitation Overview:
The water system consists of a concrete collection basin that intercepts water from Spring Creek and diverts water to a 167,000 gallon water storage tank. The untreated water system is maintained by the Port Protection Community Association. Most homes are fully plumbed. Residents use various wastewater disposal systems including individual septic systems, pit privies, and outfall pipes. There is no central electric system in Port Protection. Electricity is provided by individually owned and maintained generators. 
RUBA Status & Activities This Qtr:
Village Safe Water is currently in the design stage of a water project which includes a water storage tank and upgrades to the water distribution system. The community does not have all the necessary financial and management systems in place to pass the RUBA assessment. RUBA staff has had no contact with the community this quarter. Repeated attempts to contact the community have failed.  
RUBA Activities for the Coming Qtr:
RUBA staff will work with the community to develop a monthly financial report that meets RUBA criteria for the essential indicator, provides adequate financial information and is not overly onerous for the community.
Scores:
 
Essential Indicators:
25 of 26
Sustainable Indicators:
17 of 23
Total Score:
42 of 49

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.
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
The Community Association does not have a written budget. Purchases are considered on a case by case basis and voted upon by the membership at monthly meetings. The Community Association's only source of general fund income is State Community Revenue Sharing funds The water utility has a written budget which is submitted to the RCA as part of annual update for the utility's provisional certification. Being an untreated water system with a volunteer operator, the expenses are very limited. The operational cost for maintaining the water system and monitoring the water quality is typically less than $2,000 per year. The Treasurer provides verbal financial reports at monthly meetings. The public water system is an untreated, gravity feed system. Electricity and fossil fuel is not necessary for the operation of the public water system. The utility receives $4,750 operating revenue from user maintenance fees which is sufficient to cover operating costs and repair and replacement costs The utility offsets the cost of providing water by charging an annual maintenance fee. The fee is $125 for residential and $250 for commercial customers.

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
The utility uses a manual accounting system consisting of a business-type bank register for each bank account. The fields included on the register are designed to record detailed information including: the date a transaction is made, the check number, fields to mark when each check has cleared the bank, a memo line for recording who or what a check was written for, and a field for recording the amount of the check or debit. There is an additional field to record any deposits or credits to the utility account and a final field for carrying a running total balance. Due to the limited cash flow of the utility, the bank registers and the corresponding bank statements provide adequate financial record keeping for the utility. The utility has a billing and collection policy contained in tariff for the public water utility. Water maintenance fees are assessed once a year. On or before January 20th each year, the utility sends out the utility bills. Payment is due upon receipt and utility bills are considered delinquent after 60 days. The utility may charge late fees on delinquent amounts and the water service may be disconnected for continued non-payment. The Treasurer reports that due to the seasonal nature of the community, the collections policy is somewhat flexible on the time of payment but all accounts are strictly enforced by the end of the year. The Treasurer reports a 100% collection rate for annual water system maintenance fees. The Treasurer reports that all bank accounts have been reconciled through August 2009. Normal purchases are discussed and approved by the board of directors at monthly meetings. Large purchases or construction projects are discussed at the annual meeting in October and approved by the association membership.

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 Port Protection Community Association manually calculates payroll liabilities. RUBA staff visually inspected the community's last four 941s (employers quarterly federal tax returns). The Treasurer authorized RUBA staff to obtain federal tax information from the Internal Revenue Service (IRS) and employment security information from the Alaska Department of Labor and Workforce Development (ADOLWD). Based upon the information received, the Port Protection Community Association is deemed compliant with tax reporting and deposits requirements. The community has not received any derogatory correspondence from the Internal Revenue Service (IRS) or from the Alaska Department of Labor and Workforce Development (ADOLWD) within the last year.

Personnel System

Essential Indicators
Answer Question
Yes 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.
N/A The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
N/A 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.
N/A The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
N/A The utility provides training opportunities to staff as needed and available.
Personnel System Comments
The Community Association has no full time employees. Volunteers are used for day-to-day activities such as accounting and the operation of the water system. The Association will employ day labor as needed for manual labor such as repairing the boardwalks. The Associations current coverage for workers compensation insurance was verified through Alaska National Insurance. The policy is effective from 1/1/09 through 12/31/09. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. Copies of the workers compensation policy are posted in accordance with state statute at the community building, Wooden Wheel Trading Post, and the water storage tank. The Treasurer is responsible for maintaining the personal files. She reports that all files contain the necessary documents including I-9 and W-4 forms Due to not having any fulltime or permanent employees, the Community Association does not have a personnel policy or provide any training opportunities or evaluations.

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
No 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 Port Protection Community Association owns and operates the public water system. The Board of Directors is the governing body and meeting minutes verify that it is actively engaged in making decisions on behalf of the utility. The Board meets the first Saturday of each month and holds an annual meeting the first Saturday in October. The Community Association provides meeting notices as required by their by-laws. The utility is managed by a three-person water committee. A member of the water committee makes a verbal mangers report at monthly meetings. The report includes operational information such as water testing results, water tank level, and any problems with the system. Highlights from the manager's verbal report are entered into the meeting minutes for the community association. The utility does not have an organizational chart. The Water Utility has a provisional certification and a water utility tariff on file with the Regulatory Commission of Alaska (RCA). The utility filed its last annual application, system update and income statement with the RCA on February 23, 2009.

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.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The utility has three certified operators at the Small Untreated Water System level. Name Certification Level Expiration Date Dennis Mann Small-U 12/31/2010 Jack Mason Small-U 12/31/2010 Dennis Shervey Small-U 12/31/2010 The utility has a very basic preventative maintenance plan due to the simplicity of the water system. The plan includes yearly tank cleaning and inspection and valve maintenance on the distribution system. The utility does not hold regular safety meetings or have any kind of safety manual. The operator reports that the system is operating at the proposed level of service and there have been no outages due the management issues. The operator reports system problems to the water committee. The utility does not maintain an inventory control or critical spare parts list. The utility maintains some spare parts and tools, but, due to the community's island location and dependence on floatplane air service, the level of critical spare parts may be inadequate to prevent a service outage.