Quarterly Report: 2012, April - June (Q4), 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:
7/26/2012 
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 wastewater system operated by the Glennallen Improvement Corp. The wastewater 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 15, 2012, RUBA staff made contact with the new manager of the Glennallen Improvement Corporation. The corporation serves as the community's wastewater utility board which manages and operates the piped wastewater treatment system. Anchorage RUBA staff traveled to Glennallen on June 7 to 8 and met the president and new manager of the wastewater utility board to assist with RUBA compliance and filing of past due biennial reports to bring them back into good standing as a nonprofit corporation. The wastewater utility is only meeting about half of its essential and sustainable indicators and hasn't had an assessment since November, 2006. The utility manager gave staff a tour of the utility's office building, lift stations, wastewater lagoon, and the area served. RUBA staff had a discussion with the bookkeeper for the Glennallen wastewater utility regarding assistance she needed to get the accounts in order. She currently uses a combination of Quicken and Excel spreadsheets. Staff gave her the RUBA QuickBooks hotline contact information and suggested she convert the utility's financial accounting system over to QuickBooks and to reenter the data at least for this calendar year. They do not have a current budget. The wastewater utility board hasn't met for at least three years. RUBA staff suggested dates for a visit to Glennallen to assist with setting up and holding a utility board meeting and board election. Board members whose terms have expired need to be reelected, and an board officer vacancy due to the board member's death needs to be filled at the election. This position needs to be filled before the utility board submits their 2012 biennial corporate filing with the state.  
RUBA Activities for the Coming Qtr:
RUBA staff will assist the president and manager of the Glennallen Improvement Corporation to hold an election and encourage them to meet regularly to review the utility's financial records. Staff will work with Glennallen's wastewater utility board members, the bookkeeper and the new manager to assist with RUBA compliance and filing of past due biennial reports to bring them back into good standing as a nonprofit corporation. RUBA remains available by phone, email, and fax to assist the Glennallen Improvement Corporation.
Scores:
 
Essential Indicators:
8 of 27
Sustainable Indicators:
5 of 26
Total Score:
13 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 is the utility service. They do not have a current budget. The wastewater utility board hasn't met for at least 3 years.

Accounting Systems

Essential Indicators
Answer Question
No The utility has adopted a collection policy and actively follows it.
No The utility bills customers on a regular basis.
No An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
No An accounts payable system is in place.
No The payroll system correctly calculates payroll and keeps records.
No A cash receipt system is in place that records incoming money and how it was spent.
No The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
No A chart of accounts is used that identifies categories in a reasonable, usable manner.
No 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 and Excel spreadsheets for the utility accounting, however no current financial reports have been provided to RUBA staff.

Tax Problems

Essential Indicators
Answer Question
No 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.
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
The ESC statement dated June 26, 2012, states that Glennallen Sanitation Utility, a subcontractor, has tax clearance through March 31, 2012. IRS correspondence dated June 6, 2012, says the Glennallen Improvement Corporation is in compliance with all tax filing and reporting requirements from June 1, 2008 to June 1, 2012.

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.
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.
No The utility provides training opportunities to staff as needed and available.
Personnel System Comments
In 2009, the corporation manager reported that no progress has been made on personnel policies and procedures. At the time, there were only two part-time employees of the Glennallen Improvement Corporation; since then, one of them passed away and the other moved out of state. Worker's compensation coverage for the Glennallen Improvement Corporation purchased from Liberty Northwest Insurance is in effect from 11/5/11 to 11/5/12.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
No 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.
No 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.
No 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.

Operation of Utility

Essential Indicators
Answer Question
No 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
No 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.
N/A 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 State certified operator database indicates there is no currently certified operator employed by the Glennallen Improvement Corporation. GIC provides piped wastewater service to the residents of Glennallen.