United States
Environmental Protection
Agency
Effluent Guidelines Division
WH-552
Washington DC 20460
July 1982
EPA-430-9-82-006
Water and Waste Management
Wastewater Utility Recordkeeping,
Reporting and Management
Information Systems
                     V, Ubrary
                   Soi*h Dearborn Stra*
                           606*4

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     This document is available to the public through the U.S.
Department of Commerce,  National  Technical  Information Service,  Port
Royal  Road, Springfield, Virginia  22161.

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     This Report has been reviewed by the Municipal Operations Branch
 (MOB) of the Environmental Protection Agency  (EPA), and approved for
 publication.  Approval does not signify that  the contents necessarily
 reflect the views and policies of the EPA nor does mention of trade
 names or commercial products constitute endorsement or recommendation
 for use.
This guidance manual was prepared by the MOB of the Office of Hater
Program Operations of the United States Environmental Protection Agency.
Recognition is due to the New England Interstate Water Pollution Control
Commission, Peat, Marwick, Mitchell  & Co. and the Municipal  Finance
Officers Association for their assistance in providing information for
the manual.  Recognition is also due to Myron A. Olstein and Jean B.
Levesque for their timely review and comments.

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                WASTEWATER UTILITY RECORDKEEPING, REPORTING
                                    ANJJ
                      MANAGEMENT INFORMATION SYSTEMS

                                                               PAGE

   I.  Introduction                                                j

      A.    Background                                             1
      B.    Target Audience                                       1
      C.    Objective                                              2
      D.    Overview                                              3

  II.  Facility Management                                         4

      A.    Operations  Management                                 4

           1.   Management Controls                               6

               a.   Monitoring  and  Sampling                      6
               b.   Laboratory                                   5
               c.   Process Control                              6
               d.   Record Keeping  & Reporting                  n

      B.   Maintenance Management                                H

          1.   Asset Management                                 H

          2.   Inventory  and Control                            14

          3.   Records and Monitoring System                    17

      C.   Energy Management                                     20

          1.   Identification and Monitoring of Energy Usage    20

               a.   Baseline Energy and Cost Data               20

     D.   Sludge Management                                     23

          1.   Monitoring                                       23

III.  Support Services  Management                                24

     A.   Purchasing                                            24

          1.   Purchase Order                                   24

               a.   Format                                      25

               b.   Limited Purchase Order                     25

               c.   Purchase  Order Origination                  25
                                   11

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                                                                Page
         2.    Scheduling                                         31
         3.    Inventory Management                               31
              a.    Classification of Inventory                   31
              b.    Inventory Control  and Order Points             33
    B.    Personnel                                                34
         1.    Performance Evaluation                             34
         2.    Safety                                             36
              a.    Accidents                                     36
IV.  Finance  and Accounting                                       39
    A.    Internal  Controls                                       39
         1.    Separate Accounting Duties                         39
         2.    Use  and Control  Prenumbered Forms                  40
         3.    Approval Signature                                 40
         4.    Reconcile Subsidiary Records to Control  Totals     40
    B.    Chart of  Accounts                                       40
         1.    Elements                                           41
              a.    Fund                                          41
              b.    Type of Account                               41
              c.    Organization                                  41
              d.    Activities                                    41
              e.    Objects of Expenditures                       41
              f.    Source of Revenue                             41
              g.    Program or Project                            41
         2.    Coding                                             41
    C.    Accounting Records                                      41
         1.    Source Documents                                   44
         2.    Books of Original Entry                            44
         3.    Books of Final Entry                               45

                                   iii

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                                                                 Page
   D.   Interim Financial Reports                                 45
        1.   The Balance Sheet                                    48
        2.   Statement of Actual and Estimated Revenues           48
        3.   Statement of Actual and Budgeted                     48
             Expenditures and Encumbrances
        4.   Statement of Actual and Budgeted Expenditures        59
             and Encumbrances by Department/Activity
        5.   Cash Flow Analysis                                   59
        6.   Statement of Revenues, Expenses and Changes in       59
             Retained Earnings
        7.   Statement of Change in Financial Position            60
V. Management Information System (MIS)                            63
   A.   MIS Organizational Responsibility                         63
   B.   Report Preparation                                        63
   C.   Operational  Reports                                       64
   D.   Financial  Reports                                         64
   E.   Management Reports                                        64
   F.   Manual vs. Electronic Data Processing                     79
        1.   Defining Alternatives                                79
        2.   Types of Software                                    80
        3.   The Selection Process and System Development         82
                                   IV

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                            LISTS OF EXHIBITS
Exhibit
Number                   Description                             Page
   1                     Management Information System             5
   2                     Sample Laboratory Testing Program         7
   3                     BOD Worksheet                             8
   4                     Daily Laboratory Record/Report            9
   5                     Trend Chart                              10
   6                     Daily Digester Report                    12
   7                     Daily Utility Operating Report           13
   8                     Equipment Record Card                    15
   9                     Inventory Record Card                    18
  10                     Work Order                               19
  11                     Energy Data Collection Form              21
  12                     Energy Profile                           22
  13                     Purchase Order                           26
  14                     Limited Purchase Order                   27
  15                     Request for Quotation                    28
  16                     Vendor List                              29
  17                     Vendor Evaluation Checklist              30
  18                     Purchase Schedule                        32
  19                     Employee Performance Review &            35
                           Evaluation
  20                     Supervisors Accident Report              37
  21                     Monthly Accident Summary                 38
  22                     Sample Account Coding Structure          42
  23                     Sample Utility Chart of Accounts         43
  24                     Balance Sheet                            46

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Exhibit
Number                   Description                             Page
  25                     Statement of Actual  & Estimated          49
                           Revenue
  26                     Summary Statement of Actual  and          51
                           Budgeted Expenditures and
                           Encumbrances
  27                     Statement of Actual  and Budgeted         52
                           Expenditures and Encumbrances
                           by Department/Activity
  28                     Cash Flow Results & Forecast             53
  29                     Statement of Revenues, Expenses, &       55
                           Changes In Retained Earnings
  30                     Statement of Changes in Financial        57
                           Position
  31                     Sample Daily Cash Report                 61
  32                     Investment Record Card                   62
  33                     Plant Performance Report                 65
  34                     Maintenance Activity Report              67
  35                     Energy Cost & Consumption Report         69
  36                     Purchase Order Status Reports            71
  37                     Vendor File Activity Report              73
  38                     Stock Activity Reports                   75
  39                     Employee Profile                         77
  40                     Service  Bureau vs In-house               81
                            Computer  Cost  & Benefits
                            Cost Benefit Analysis
  41                     Cost Benefit  Analysis                    84
  42                     RFP:   Vendor  Proposal  Contents          85
                                      VI

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I.                      Introduction

   A.    Background

             The last twenty-five  years  have  witnessed  an enormous
        increase in the number of  publicly  owned  treatment works
        (POTWs)  throughout the country.   This is  due  principally  to
        grants which have  been the source of  construction funding to
        help clean up our  nation's waterways.  Many wastewater treat-
        ment plants are large, capital intensive, and highly  sophis-
        ticated.   As such, they present  the owners with a range of
        problems,  some of  which have  few precedents.  Solutions to
        these problems demand  timely  and accurate information.

             Wastewater problems can  be  divided roughly into  two
        categories; engineering and management.   The  engineering
        problems  have been dealt with in a  variety of publications
        from both  the public and private sectors.  Management
        problems,  however, have been  largely  ignored.   This has
        contributed to a public perception  of wastewater utility
        managers as lacking proper control, incapable of planning
        effectively, and not wanting  to  resolve problems.  This poor
        public image makes effective  management even  more difficult.
        Many problems with technical  symptoms actually  are rooted in
        poor management practices.  It is only in relatively  recent
        times that wastewater  treatment  has been managed as a
        self-supporting utility.   The three basic management
        objectives for wastewater  utilities are:

             o    To provide quality  wastewater treatment and readily
                  disposable by-products;
             o    To operate wastewater  treatment facilities  and works
                  in an efficient  manner; and
             o    To operate the wastewater treatment function as a
                  self-sustaining  utility.

             The ability to plan,  operate and control a wastewater
        utility efficiently depends on the  type of information
        available  to the utility manager.  Management information is
        usually in the  form of reports prepared from  operating
        statistics or data.  It  is important  to understand
        the  distinction  between  DATA  and management INFORMATION.

             DATA  is  generally comprised of statistics arranged in
        some  logical  manner.

             Management  INFORMATION is a tracking or combination  of
        various data  arranged  in a comparative format.

                                  1

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          As more treatment facilities  become  operational  and
     existing facilities grow older,  the  need  for  better management
     systems becomes increasingly evident.   To meet  this need,  EPA
     has developed a series of Management Assistance Documents.
     This series reflects the established principle  that the
     independent, financially self-supporting, utility organization
     is the best possible framework for a well managed wastewater
     treatment operation.  The various  parts of this document are
     intended to familiarize the municipal  manager with the
     recordkeeping and management information  aspects of self
     supporting utility management.

B.   Target Audience

          This Utility Recordkeeping, Reporting and  Management
     Information Systems document is  designed  for  use by both
     treatment works and municipal  management  personnel.

          Principal users include:

          o    Town/City Managers,
          o    Town/City Financial  Directors,
          o    Utility Directors,
          o    Public Works Directors,
          o    Plant Superintendents, and
          o    Chief Operators.

          Additionally, management consultants can use the guidance
     in evaluating and establishing recordkeeping  and management
     information systems for wastewater utilities.

C.   Objective

          The purpose of this guidance  document is to provide
     guidance for wastewater utility managers  on recordkeeping  and
     management systems.  This information is  essential to managing
     a utility to assure sustained acceptable  performance  at
     minimal cost.
D.
          This document addresses the various aspects of wastewater
     treatment utility management and its information needs.   It
     gives examples of reports and record keeping forms.  It
     addresses the various aspects of record keeping as applied to
     the management of utilities and explains impacts of record-
     keeping on operation.  In addition this document presents an
     approach to the development of appropriate management informa-
     tion systems to meet local needs.  Thus, alternative systems
     are defined, types of software discussed, and selection
     processes presented.

          This document is written to allow an individual with
     general management abilities to both develop and control  the
     development of a management information system.

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E.   Overview
          The five functions of management are:

          o    Planning
          o    Organizing
          o    Staffing
          o    Directing
          o    Controlling

          None of these functions can be properly carried out
     without timely and accurate information for example:

          o    Long range planning cannot be carried out without
               good information regarding the quality of the
               physical plant; financial plans cannot be prepared
               without sound information regarding the utility's
               financial status, etc.

          o    The various activities of the utility cannot be
               organized, or reorganized, without an information
               system that alerts the manager to problems.

          o    Proper staff decisions cannot be made without good
               information regarding the qualifications of the
               present staff.

          o    Directing requires a base of sound historical
               information regarding the utility.

          o    Controlling, more than the other functions, requires
               thorough and timely information to permit an
               evaluation of current position and redirection if
               required.

          This guidance identifies some of the major wastewater
     utility recordkeeping, reporting and management information
     systems used by a properly managed utility.  These systems
     will be discussed separately for the following wastewater
     utility functions:

          Facility Management

          o    Operations Management
               -Monitoring and Sampling
               -Laboratory
               -Process Control
               -Recordkeeping and Reporting

          o    Maintenance Management
               -Asset Management
               -Inventory and Control
               -Records and Monitoring

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              o    Energy Management
              o    Sludge Management

         Support Services

              o    Purchasing
              o    Scheduling
              o    Inventory Management
              o    Personnel
              o    Safety

         Finance and Accounting

              o    Intenal Controls
              o    Chart of Accounts
              o    Accounting Records
              o    Interim Financial Reports
                   -Balance Sheet
                   -Revenue and Expense Statements
                   -Expenditure Tracking
                   -Cash Flow Analysis
                   -Changes in Financial  Position

              In Chapter V, these diverse recordkeeping elements  are
         integrated into a management information system (MIS).
         Exhibit I  shows how these various data  sources are  utilized to
         support the system.


II.   Facility Management

         Wastewater treatment facility management systems  include
    operations,  maintenance,  energy and solids handling.   This chapter
    focuses on preparation of operating reports,  equipment
    identification, parts  inventory and control  systems, and control-
    ling energy  and sludge disposal  costs.

    A.    Operations Management

              Of the  various  utility management  functions, operations
         has  the most direct  and  immediate  impact on the overall
         utility objective,  i.e.,  to reduce  pollutants  in  municipal
         wastewater to  the prescribed effluent quality  level and  to
         dispose of the residuals  in an environmentally safe manner.

              Utility operations  include  supervision, monitoring  and
         control  of the various wastewater activities and  the achieve-
         ment of required  levels of  water quality in an efficient and
         consistent manner.   For each of  these activities  the key
         elements for effective operations management include adequate
         management controls.

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        SUPPORT
 o  PURCHASING
 o  WAREHOUSING & STORES
 o  PERSONNEL
 o   SHORT  &  LONG  RANGE  PLANS
 o   CAPITAL  IMPROVEMENT PROGRAM
 o   GRANTS MANAGEMENT
 o   CONSTRUCTION  MANAGEMENT
                                                 MANAGEfeiT
                                                 INFORMATION
                                                   QVCTuM
                                                   01 o I L_J i
        FINANCE
      ACCOUNTING
o  INTERNAL CONTROLS
o  CHART OF ACCOUNTS
o  ACCOUNTING RECORDS
o  INTERIM FINANCIAL REPORTS
                                                   UTILITY

                                                  MANAGEfOT
                                                                                   FACILITIES
o  OPERATIONS
o  MAINTENANCE
o  ENERGY
o  SLUDGE
                                     X
                                     n:
                                     ii
                                     DO

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1.    Management Controls

          To achieve effective wastewater utility  operations,
     management controls must be  developed to  regulate  the
     processes.  These require consideration of:

     o    Monitoring and Sampling
     o    Laboratory Capabilities
     o    Process Control,  and
     o    Recordkeeping and Reporting.

     a.    Monitoring and Sampling

               A monitoring and sampling  program is the basis
          for all  subsequent conclusions,  decisions and
          actions in process control.  The program scope
          depends on the type  of  treatment processes, the
          location of the facilities, laboratory capabilities
          and the capability of operating  personnel.  Exhibit
          2  is  an example of one  type of  sampling program.

     b.    Laboratory

               Laboratory activities provide the basis for
          process control,  management reporting and for
          regulatory compliance reporting.  Therefore, it is
          important  that standard laboratory procedures,
          including  quality control, and worksheets be
          established  and used.   Exhibits  3 and 4 are examples
          of  laboratory  worksheets and reports.

     c.    Process  Control
              An effective process control program is
         essential if the treatment facility's performance is
         to be optimized.  Two key elements of process
         control are:

         o    A recordkeeping system that permits the
              identification of long-term trends, and
              potential problems before they occur.  This is
              most effectively done by the use of trend
              charts on which key wastewater parameters are
              plotted over time, and

         o    An understanding of past performance to
              identify recurring problems and anticipate them
              in the future,   (see Exhibit 5)

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                           SAMPLE  LABORATORY  TESTING PROGRAM
RAW
SEWAGE
 PRIMARY
 EFFLUENT
SECONDARY
EFFLUENT
CHLORINE
CONTACT TANK
MIXED
LIQUOR
PLANT
EFFLUENT
LEGEND:
    TYPE OF SAMPLE
 C - COMPOSITE SAMPLE
 G - GRAB SAMPLE

* EVERY 4-HOURS
 FREQUENCY
D - DAILY
W - WEEKLY

D2- TWICE DAILY
TYPE OF
SAMPLE
                                                                      FREQUENCY
X
:r
ii
CO

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                                      DAILY  LABORATORY  RECORD/REPORT
00
         GRAB SAMPLE
         TIME
         COLOR
         TEMP.
        PH
        Settleable
        Solids, ml/1.
        Dissolved
        Oxygen, mg/l.
        Residual
        Chlorine, mj/l.
INFL.
        COMPOSITE. 24 hr.
        START/STOP
        COLOR
       _pH_
        Sett. Solids, ml/1.
        TSS, mg/l.
        VSS, mg/l.
        S-DAY B.O.D., mg/l.
        % B.O.O. Removal
        Total Phosphate, mg/l. P
        Ammonia, mg/l N
        Turbidity,  NTU
        Alkalinity, mg/l. as
Prim.Eff.  Trickier    Final
                                                         DATE	
                                                         FLOW:  Max.__
                                                         Weather	
                                                                                                             Min.
                                                         DIGESTER pH.
                                                         ALKALINITY
                                                                                                           Air Temp..
                                                                                                          _ CO2	
                                                                                     _ Total	
                                                                                      Precipitation .
                                                                                     	CH4	
                                                                                      VOLATILE ACIDS
                                                                                     .mg./l. asCaCOa
                                                                                     _mg./l. as HO Ac
Sample
% Solids
%Volatile
PH




























Chemical




Amt. in Storage




Amt. used/24 hr.




Dose, mg/l




                                                                                                          AERATION TANKS
TANK
MLTSS, mg/l
ML VSS, mg/l
6min.
^'"""iSmin.
30mln.
60min.
SVI, ml/g
cent, vol., ml.
cent, factor
PH
sup. turbidity

RSTSS, mg/l
cent, vol., ml.
cent, factor
S. B. D., ft.

1














2














3














Average














Inventory, Ibs. Wasting, gal. Ibs. MCRT
                                                                                                                        X
                                                                                                                        DC
                                                                                                                                                     DO

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                                                 BOD   WORK  SHEET
                                           Date  In

                                           Date  Out
Sample




























(1) Dilution
Bottle
No.




























Factor
Sample
Volume




























300~n
Dilution^
Factor





























Initial
DO (mg/l)





























Final
DO (mg/l)





























SeedP)
Correction





























DO Change (3)
(mg/l)





























BODW
(mg/l)




























	 J
                       Sample  Volume

(2) Seed  Correction  =  DO consumed by seeded blank
PKlnitial DO  -  Final DO)   -   Seed Correction
(4) DO Change  x   Dilution F'tcior
Seed  in Sample
 beed in Blank

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                                                         TREND CHART
                                                        Month of May
                                              Dissolved Oxygen in Aeration Tank
                                                      Composite Average
DISSOLVED
 OXYGEN
 (mg/1)
                 1  2  3  4  5  6  7  8 9 10 11  12  13  14  15  16  17  18  19  20  21  22  23  24 25 26 27 28 29 30

                                       DAYS OF WEEK
                                                                                                                        DO
                                                                                                                        ii
                                                                                                                        -H
                                                                                                                        tn

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          d.    Recordkeeping and  Reporting

                    Recordkeeping and  reporting  of  operating
               conditions are essential  tools  for operators and
               managers to control  the facility  and satisfy
               compliance reporting requirements.

                    Daily logs should  be maintained for  each  unit
               process.  Each shift, as it  begins duty,  and the
               Chief operator should review these logs to  identify
               short-term process problems.   Exhibit 6 is  an
               example of a daily report for a particular  unit
               process.  A summary of  each  unit  process  log should
               be entered in a utility daily report as illustrated
               by Exhibit 7.  This becomes  a permanent record of
               the routine operations  of the facility.

                    Daily reports may  contain  a  wide variety  of
               factual information in  addition to actual operating
               data from the unit process logs.  These data might
               concern equipment  failures,  laboratory results,
               energy consumption, weather  conditions, bypassing of
               operations, complaints  and facility  visitors.
               Monthly and annual reports should be prepared  for
               submission to regulatory agencies and utility
               management.

B.   Maintenance Management

          Maintenance has become  an increasingly significant
     function within wastewater facility management. With the need
     for higher levels of wastewater treatment,  the technologies
     required to achieve these levels  have  become increasingly
     complex.  This has resulted  in the need for a  systematic and
     comprehensive maintenance program not  only  to  keep  the plant
     operating efficiently without interruptions to the  treatment
     process, but also to preserve the substantial  capital
     investment in equipment, structures and control systems.

          The elements of an effective maintenance  program include:

     o    Asset management,
     o    Inventory and control,  and
     o    Records and monitoring  system.

     1.    Asset Management

               Records should be  established and maintained for
          each piece of equipment and  property.  This record  system
          should include:

          o    Equipment description,

                              11

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Remarks -
                                                                    EXHIBIT  6
                           DAILY DIGESTERS REPORT
                                              DATE	19.
urcnM i un
Gas C. F.
Storage
Gas
Production
Meter
Gas To
Engines
Meter
Gas To
Waste
Meter
Temp.
Sec.
Sludge Level
Cover
Pos. Sec.
Cover
Pos. Prim.
Jacket
Water
Temo.
Sludge
Temp.
11-7
NAME




Prim.
Ft.
Ft.
Ft.
In
In
Sec.
In.
In.
In.
Out
Out
7-3
NAME




Prim.
Ft.
Ft.
Ft.
In
In
Sec.
In.
In.
In.
Out
Out
3-11
NAME




Prim.
Ft.
Ft.
Ft.
In
In
Sec.
In.
In.
In.
Out
Out
                                    12

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                                                 EXHIBIT 7
DAILY UTILITY OPERATING REPORT
PLANT
FINAL
INITIAL
TOTAL
INFLUENT FLOW METER




GAS PRODUCED
FINAL
INITIAL
TOTAL
HOUR










0. 0.








DESCRIPTION
SCREENINGS
GRIT
SCUM
USED


CL2 RES.








QUANTITY



CHECKLIST
AIR COMP. SPRAY PUMPS
BLOWERS GAS COP.
GAS LINES HEAT EXCH.
ftETURN SLUDGE


SLUDGE PUMPED


CHLORINE USED
FINAL
INITIAL
TOTAL



BLOWER NO. 1
FINAL
INITIAL
TOTAL
BLOWER
FINAL
INITIAL
TOTAL


NO. 2


AIR TEMP. 	 F
SEWAGE TEMR 	 r
WEATHER:


WASTE SLUDGE


HEAT EXCHANGER
TEMPERATURE
IN OUT
	 r 	 r
SVI
AIR SUPPLIED


DIGESTER
TEMPERATURE
	 F

MLSS

REMARKS: 1ST SHIFT
OPERATOR ;
DATE:

PLANT INFLUENT FLOW METER
FINAL
INITIAL
TOTAL


GAS PRODUCED
FINAL
INITIAL
TOTAL
HOUR










0. 0.








DESCRIPTION
SCREENINGS
GR T
SCUM
USED


CL2 RES.








QUANTITY



CHECKLIST
AIR COMP. SPRAY PUMPS
BLOWERS GAS COMP.
GAS LINES HEAT EXCH.
RETURN SLUDGE


SLUDGE PUMPED


CHLORINE USED
FINAL
INITIAL
TOTAL



BLOWER NO. 1
FINAL
INITIAL
TOTAL


BLOWER NO. 2
FINAL
INITIAL
TOTAL


AIR TEMP. 	 *F
SEWAGE TEMP. 	 *F
WEATHER:


WASTE SLUDGE


HEAT EXCHANGER
TEMPERATURE
IN OUT
	 *F 	 *F
AIR SUPPLIED


DIGESTER
TEMPERATURE
 r

SVI
MLSS

REMARKS: 2ND SHIFT
OPERATOR :
QATE :

          13

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     o    Manufacturer's equipment data (name plate data),
     o    Spare parts and material required to maintain the
          equipment,
     o    Inspection and lubrication records,
     o    Preventive maintenance records, and
     o    Repair records.

          In addition to maintenance information,  the record
     system should include financial data to permit cost
     reporting information, including:

     o    Date of acquisition,
     o    Cost,
     o    Maintenance and repair cost,
     o    Labor hours, and
     o    Useful life.

          The method of monitoring equipment record
     information depends on the size and complexity of the
     facility, the availability of data processing support,
     and the types of management reports to be generated from
     the data.  Exhibit 8 illustrates a relatively simple card
     file system that contains the basic data requirements.

          The most common problem with the asset management
     element of a maintenance program is it is installed but
     not maintained.  It is critical that the equipment
     records be kept completely and routinely up to date.
     This requires the commitment of staff, generally the
     chief mechanic or a record clerk, to record maintenance
     data as maintenance tasks are completed, and  periodic
     reviews by the utility manager to insure that records are
     kept up to date.

2.   Inventory and Control

          A spare parts inventory and control  system is
     essential to:

     o    Assure the availability of necessary spare parts and
          materials for both preventive and corrective
          maintenance,
     o    Maintain optimum quantity levels,
     o    Monitor quality,  and
     o    Minimize the cost of carrying excess parts.

          The items that need to be inventoried and the
          quantities to be maintained depend on the type and
          diversity of equipment, the availability of local
          vendors, lead time for delivery, frequency of use,
          and costs.  The inventory and control  system
          includes the following elements:

     o    Identification of all  inventory items required,

                         14

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EXHIBIT 8
EQUIPMENT
INVENTORY NO. CARD NO.
REFERENCE


MANUFACTURER



DATEOFMANUF:
| DATE PUT INTO SERVICE:
SALES A SERVICE



DATE REPLACED: | LENGTH OF SERVICE
NAMEPLATEDATA-MODEL SERIAL NO. SIZE RPM TYPE


MOTOR DATA- MODEL
H P. VOLTS
INSULATION CLASS
SERIAL NO. FRAME TYPE CODE LETTER
AMPS RPM HERTZ PHASE RATING NEMA DESIGN
SERVICE FACTOR

REMARKS



PARTS DESCRIPTION
DUITg SPARE PARTS
RECOMMENDED INVENTORY RECORD (NO. IN STOCK * DATE)













DATE













i







i

I

i


j



1
j
i
*






;;ii

! ! ! t


I * I ' *
SIDE 2
DESCRIPTION OF REPAIR
PARTS REPAIRED OR REPLACED




TOTAL COST

PARTS TOTAL
COST





BY WHOM




, LABOR TOTAL
MANHOURS





COST





REMARKS




DOWNTIME
DATE | DESCRIPTION OF REPAIR
PARTS REPAIRED OR REPLACED




TOTAL COST PARTS TOTAL
COST





BY WHOM




LABOR TOTAL
DATE | DESCRIPTION OF REPAIR

MANHOURS






COST






REMARKS



DOWNTIME

PARTS REPAIRED OR REPLACED




TOTAL COST PARTS TOTAL
DATE DESCRIPTION OF REPAIR
COST






BY WHOM




LABOR TOTAL

MANHOURS






COST






REMARKS




DOWNTIME

PARTS REPAIRED OR REPLACED COST BY WHOM MANHOUHS COST




TOTAL COST
DATE

| PARTS TOTAL
DESCRIPTION OF REPAIR










LABOR TOTAL

















DOWNTIME

  15

-------
MACHINE NO
                            TYPE MACHINE
                                                            |J|F|M|AJM]J[J]A|S|0|N[D
                             TYPE MACHINE
 YEAR

  19

  t9
  19
            1  3  >  i  t 1
                              MECHANICAL AND ELECTRICAL INSPECTIONS SCHEDULE

                                 'ii*i'isTuTulii tiTiilii a 2124 a a 17 n M]]HH 11 u is hi j> JIHW'II u  HKU it u|| ii i;
                                    OIL CHANGE AND LUBRICATION SCHEDULE
 DATE   WORK ORD
                             DESCRIPTION OF REPAIRS AND REPLACEMENTS
                                                                                                         TOTAL
                                                                                                         COST
                                        PREVENTIVE MAINTENANCE RECORD
                                                                                                                                                                                                                       m
                                                                                                                                                                                                                       X
                                                                                                                                                                                                                       X
                                                                                                                                                                                                                       E5
                                                                                                                                                                                                                       H
                                                                                                                                                                                                                       o>

-------
     o     Classification of  items, and
     o     Control  system.

          The  identification of  inventory  items should be
     based on  the  equipment  record system  discussed
     previously, the  maintenance manual, equipment service
     manuals,  and  maintenance staff experience.

          Items  should be  classified  based on  factors such
     things as cost,  usage,  delivery  time, shelf  life and
     impact on plant  operations. Using  this classification,
     quantities  and reorder  policies  should be established.
     Where financial  and/or  management resources  are limited,
     reorder policies should be  developed  to ensure an
     adequate  supply  of the  most critical  spare parts.

          The  inventory control  system should  include the
     following information:

     o     Item identification,
     o     Units  of measure,
     o     Purchasing  lead  time,
     o     Stock  requirements,
     o     Reorder  points,
     o     Quantities  on hand, and
     o     Cost.

     See Exhibit 9 for a sample  inventory  card.

3.   Records and Monitoring  System

          The basis for reporting and monitoring  the
     maintenance program is  the  "work order"  system.   It
     should be used to initiate  all  preventive and corrective
     maintenance activities  where parts  are required, equip-
     ment is out of service, or  a certain  level of labor is
     required.  Routine maintenance  tasks  below certain  time
     requirements  need not be placed on  work  orders  but  should
     be entered  into  the maintenance log and  equipment  record
     system.

          Exhibit 10 is an example  of a  typical work order.
     After work  is completed, work  order information should  be
     transferred to the permanent equipment record system,  the
     inventory control system, and  the management information
     systems recording labor distribution  and  cost data. Work
     orders should be filed  chronologically and by equipment
     item for future  reference.
                         17

-------
                                                                               EXHIBIT  9
   Commodity Class Code:
   Description:
                                  INVENTORY RECORD CARD
Minimum Stock Qty:
Required Lead Time:"
Primary Vendor:  	
Maximum Stock Qty:
Unit of Measure:
Storage Location:
ORDFRFD
Date

P.O. No.

Vendor

Qty




DrTTTTmrn
Date

Qty.

Amt. ($} .





Date

15b
Equip.

UED
Qty.


Amt!


BA;
Date

*ANCE
Qty.

Amt.

   Additional  considerations:
     1.   Seasonal Maintenance Requirements Date
     2.   New Equipment Purchase            Date
     3.   Other:
                      Quantity
                      Quantity
*  See  Exhibit 17 for  examples of Commodity Class  Codes

                                               18

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                                                                       EXHIBIT 10
 SEWER
 WATER
 METER
 =L=CTRIC PROD.
                MAINTENANCE DIVISION WORK ORDER
                                                                     GENERAL OFrlCE
                                                                     STORES
             OATS COMPLETED
  0 36 'S
        PEBFOSMEO
JNIT)
MATERIALS FROM STOCK
                                   UNIT
J4ATFKTAT.S
                                                                    STOCK
	 EMPLOYEE NAME 	





HOURS





EMPLOYEE NAME





HOURS





TRUCK NUMBER



HOURS



TRUCK NUMBER



HOURS



TRUCK NUMBER



HOURS



TRUCK NUMBER



HOURS



     RK
                                                               FOREMAN
  COMPLETION CHECK
                                                               SUPT
                                                   19

-------
               Additional  guidance in development maintenance
          management systems can be found in  -

               "A Planned  Maintenance Management System for
               Municipal Wastewater Treatment Plants,"
               EPA-600/2-73-004.

C.  Energy Management

         Since the energy  crises in the mid  1970's energy
     availability and high energy costs have  become a major concern
     to most wastewater utility managers.  A  critical element of
     efficient plant management is a program  to  plan, monitor and
     control energy usage  and cost without sacrificing  facility
     operations.   To accomplish this, utility managers  should
     develop and  implement a comprehensive energy management
     program.

     1.   Identification and Monitoring of Energy Usage

               To develop  an effective energy management program,
     the utility  manager must have a good understanding of  energy
     usage in  his operation, have developed sufficient  baseline
     data, and have reviewed operating and maintenance  procedures
     to determine the impact on energy management alternatives.
     Also, he  must thoroughly understand the  billing system that is
     being used to assess  energy user charges.

          a.   Baseline Energy and Cost Data

               Baseline data regarding energy consumption,  cost,
               operating procedures and design conditions should be
               developed.   The types of data  that should be
               gathered include:

               o     Energy consumption and cost  data for one or
                    more previous years,  including electric utility
                    billing records, internal electric  metering
                    records, and records  of purchased fuels.
                    Energy consumption should be determined by  unit
                    process.   Exhibit 11  illustrates a  basic data
                    collection form used  for  summarizing
                    consumption and cost  data.   From the available
                    data,  energy consumption  profiles can be
                    established.   They can be developed directly
                    from metering records  or  estimates  using
                    equipment ratings multiplied by overall  average
                    running times and load factors.  A  typical
                    energy profile is shown on Exhibit  12.   Daily
                    operating logs should  be  compared to utility
                    bills  to determine the relationship between the
                             20

-------
                                                             ENERGY DATA FOIIM
ro
YtAH

mi LING PERIOD
or Unit Process












IGfAl
ELECTIIICIIY
KWII












.
$













KW













$













TOTAL $








	



GAS
THERMS













$













OIL
GAL













$













omtn ||
UNITS













$

	









1OIAL
TOTAL $













                                                                                                                                                X
                                                                                                                                                :c
                                                                                                                                                ii
                                                                                                                                                DO

-------
                                                   CONSUMPTION (KILOWATT/HOURS)


                                              H,	1	1	1	1	\	1	1	1	1
TO
ro
to

O
n


I
fd
Pd
                                                                                                   CO
                                                                                                                    X
                                                                                                                    31
                                                                                                                    II
                                                                                                                    CO
                                                                                                                    INS

-------
                         facility's energy usage and peak demand in the
                         operation of various unit processes.  Based on
                         the energy use data, energy conservation
                         options can be identified and evaluated. I/

     D.   Sludge Management

               Sludge management is an especially difficult part of
          utility management.  Sludge management requires planning,
          particularly long range planning, a consistent shortcoming.
          Alternatives tend to be both politically and technically
          difficult to implement; therefore, decisions on long range
          solutions tend to be deferred.

          1.   Monitoring

                    Monitoring and surveillance, particularly at sludge
               disposal sites are essential parts of a sludge management
               program.  The program should be developed not only to
               prevent potential health hazards but also to assure
               proper system operations.  Monitoring should be initiated
               prior to disposal and background levels (particularly for
               heavy metals) clearly defined so that any changes in
               contaminant levels can be identified and assessed.

                    Specific examples of data and recordkeeping are not
               given here because monitoring requirements and practices
               will  vary depending on the exact process, the size of the
               plant and the needs of the local facility.  Estimated
               unit process sampling and testing needs can be found in
               the following guidance.

                    "Sludge Handling and Conditioning,"  EPA
                    430/9-78-002

                    "Estimating Laboratory Needs For Municipal
                    Wastewater Treatment Facilities," EPA 430/9-74-002
I/   For more detailed information on energy use  data,  see  "Energy
     Management Diagnostics,"  Office of Water Program Operations,
     Environmental  Protection  Agency, Washington,  D.C.  1982.
                                   23

-------
III.  Support Services  Management

          Some management support  functions  such as  purchasing and
     personnel  are often  controlled  external  to the  utility.   These  two
     functions generally  represent a large portion of utility expen-
     ditures.   This chapter  addresses  several  support services functions
     including:  purchase  orders, scheduling,  warehousing and spare
     parts,  performance evaluations, labor relations and safety.

     A.    Purchasing

          The  purchasing  activity  supports buying the right material  at
     the best  price in the proper  quantity,  at the proper time and from
     the best  supplier.   Although  the  wastewater utility manager  is
     usually not responsible for all  purchasing activities, he must
     frequently:

          o     Provide requisitions  for purchasing through a central
               purchasing agent; and

          o     Maintain separate records for  purchased goods, vendor
               suppliers  and goods received.

     This section describes  the types  of forms and records which  should
     be  maintained.

          1.    Purchase Order

                    The purchase order is a  key document in an effective
               purchasing system.  The purchase order should be used  to
               control the item count  (number  of goods) and cost  of
               goods received.  At a minimum,  the purchase order  form
               should:

               o    Provide  adequate space for vendor and utility name,
                    vendor and utility address, vendor contact and
                    vendor phone number;
               o    Permit entry of  all items  or commodities ordered
                    with  space for:

                         Commodity (stock item) number or code,
                         Description and quantity ordered,
                         Unit price  and payment terms,
                         Total anticipated price,
                         Scheduled delivery date, and
                         Shipping  terms;

               o    Trace the vendor quotes received;
               o    Identify vendor  selection  process;
               o    Provide  for authorizations and signatures;
               o    Indicate purchase  order copy distribution; and
               o    Contain  a prenumbered reference for control
                    purposes.
                                  24

-------
a.   Format

          Exhibit 13 illustrates a purchase order de-
     signed to support the recommended policies and
     processing for a utility purchasing system.   This
     format permits the purchase order to serve as the:

     o    Request for vendor delivery,
     o    Price agreement,
     o    Vendor tracking system,
     o    Accounting approval for payment, and
     o    Payment voucher.

b.   Limited Purchase Order

          A limited purchase order is an authorization  to
     commit a relatively small expenditure with an
     approved vendor.  Exhibit 14 illustrates a typical
     limited purchase order.

c.   Purchase Order Origination

          The utility manager should initiate purchase
     orders supporting utility purchases.  Because of:

     o    Centralized control of purchase order numbers,
     o    Centralized collection and maintenance of
          records,
               Vendor list,
               Inventory cards,
               Purchase order files,
               Receiving schedules,
               Specification documents,
               Parts lists,

     o    On site availability of records to support
          maintenance activities in the facility, and

     o    Reduced clerical  burden and duplication of work
          in administrative  offices.

          Exhibit 15 illustrates a format for  recording
     request for quotations.  Exhibit 16 illustrates a
     vendor listing and Exhibit  17 illustrates a
     checklist for evaluating vendors.
                     25

-------
                                                                        EXHIBIT  13
                                   PURCHASE ORDER
To: Vendor Name From: Utility Name
Address Address
Attn: Phone Attn: Phone

CQTTTTP -
NoT

Description '


Juanit


'Unit
Price



P.O. #
Order
date / /
Requested Delivery
Date / /

Total
Price


Account So.


AWARD & CONTROL DATA
TYPE OF QUOTE Verbal Written Sealed Bid
Vendor No. Price Description
Verbal Quotes Only
1.
2.
3.
Written and Sealed Bid Quotes Only

Selection
123
Reason:

Completed RFQ Attached Yo(. No ReasOn:
Purchase posted to fixed Asset Records Yes No pann!
Materials and spare parts list Obtained Yes No Reason:

Prep
Appr
ared by Date Approved By
Title
oved for Payment Date Paid Date

Date

Check No.

DISTRIBUTION:    White;  Vendor    Pink:  Utility     Blue: Accounting   Yellow: MIS
                                             26

-------
LIMITED PURCHASE ORDER
                                           EXHIBIT 14


Vendor Name No. 	
Address
Attn: Phone

Quantity Description
1.
2.
3.

Justification
1.
2.
3.
Utility Name
Address
Attn: Phone

Comm. No





'rice





Total (less than $100
.00)

LPO #


Total
Price



1$

Account No:
Account No:
Account No:


Authorized By
Paid By 	
Date
Date
                                        Check No.
DISTRIBUTION:   White: Vendor
     Pink: Utility
     Blue: Accounting
                 27

-------
                                                                                 EXHIBIT 15
                                    REQUEST FOR QUOTATION

                                    THIS  IS NOT AN ORDER
 TO:
         Vendor Name
         Address
    Attn:
                 Phone:
                                           FROM:
                                           Attn:
                                              Utility Name
                                              Address
                                                                Phone:
                                                                          P.O.  Reference
                                                                          No.
 Dear Vendor,

 Please provide a unit  price  quotation  for  the goods and/or services described below.  Keep  the
 attached duplicate  copy and  return  the original  to the above address.  Explain any substitutes
 or modifications to the description completely.  YOUR QUOTATION MUST BE IN OUR OFFICE AT THE
 ABOVE ADDRESS  BY:	(a.m./p.m.)	19	
 Delivery  to  be made  from

 Terms:
                                                      in
          _days from receipt of order.

_estimated shipping weight	Ibs.
 ITEM
QUAN.
                                DESCRIPTION OF GOODS AND/OR SERVICES
                                   rar
We quote you as noced above:
      Signed:
                                         Title:
                                                                        Date:
                                                28

-------
                                                 VENDOR LIST
Revised
                                                                                      For Quotation Reference
                                                                                    P.O. Number: 	
                                                                                    Date submitted:
Vendor
 RFQ
Vendor Name
Vendor Number
Address
Contact Person
                                                                          Phone
                                                                   Commodities
                                                                                                                         m
                                                                                                                         x

-------
                                  VENDOR EVALUATION CHECKLIST
                                                                                EXHIBIT  17
     Criteria
                          Vendor A:
       Rating
                                                     Vendor B:
                                                           Rating
                                                                              Vendor C:
                                Rating
 1. Lowest Price

 2. Delivery Date

 3. Post Performance

 A. Freight/Delivery

 5. Discount Offered

 6. Multi-Commodity

 7. Type of Commodity
 8. Price Adjustment
     Clause

 9. Variation to
     Specifications
10. Non-Collusion
     Clause
 low   medium   high

first  second   third

 low   average  high

 low   medium   high

 low   medium   high

 low   medium   high

brand  replace- tooled
 name   ment
     yes
             no
 none  slight   substan-
                 tial
                              yes
                                      no
 low   medium   high

first  second   third

 low   average  high

 low   medium   high

 low   medium   high

 low   medium   high

brand  replace- tooled
 name   ment
 low   medium   high

first  second   third

 low   average  high

 low   medium   high

 low   medium   high

 low   medium   high

brand  replace- toolec
 name   ment
                                yes
                                         no
                                                         yes
                                                                  no
                                                     none  slight   substan-
                                                                     tial
                          none  slight   sub-
                                       stantial
                                                         yes
                                                                  no
                                                                                  yes
                                                                                           no
                                                30

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2.   Scheduling

          Planning and scheduling purchases  over a  given
     period of time enhances:

     o    Cost efficiency,
     o    Cash flow planning,
     o    Budgeting capabilities, and
     o    Timely maintenance activities.

          To accomplish this the utility  manager should
     collect 2-3 years of expenditure data showing:

     o    Type of purchase,
     o    Amount,
     o    Date, and
     o    Stock or immediate use item.

          The manager then records this data on a purchase
     schedule as illustrated in Exhibit 18.   Using  current
     year budget data and capital and operating plans  for the
     facility the manager can  then project current  year
     purchase requirements by  month.

3.   Inventory Management

          Timely equipment repair is  critical  to the reliable
     operation of a wastewater utility.  This  function depends
     upon an adequate spare parts inventory.  The utility
     manager's inventory should contain a proper mix and
     quantity of items.

     a.    Classification of Inventory

               To assist the manager  in assessing inventory
          items on hand, a proper inventory  classification
          should be. established.  The following  commodity
          classes represent the goods purchased by  a utility:

          Commodity Class
             Code                     Commodity Description

             100                      Office Supplies
             200                      Chemicals
             300                      Maintenance Supplies
             400                      Laboratory Supplies
             500                      Equipment Parts
             600                      Training Supplies
             700                      Tools
                         31

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  Commodity Class
    100 Office Supplies
        Year 1
             2
             3
    200 Janitorial Supplies
        Year 1
             2
             3

    300 Operating  Supplies
        Year  1
             2
            3

   400  Chemicals
        Year 1
            2
            3

   500 Maintenance Supplies
 UTILITY PURCHASE SCHEDULE

Aug.   sept.   Oct.    Nov.   Dec.   Jan.   Peb.   March   AprU   Hay   June
Total Purchases
      Year 1
           2
           3
                                                                            x
                                                                            :c
                                                                            ii
                                                                            D3
                                                                                                                        00

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          Each class should be subdivided to provide a
     level of detail appropriate to the utility.  For
     example:

           600 Training Supplies

     10 Operations and Maintenance Manuals
     20 Publications
     30 Textbooks
     40 Films
     50 Packaged course materials

          Class 500, equipment parts, should be
     organized by type of equipment to compliment the
     equipment record card (see Exhibit 8).   Each
     equipment record card should include a  recommended
     spare parts inventory.  Warehousing is  responsible
     for assembling the parts required by equipment group
     and identifying interchangeable parts and parts
     substitutions. This may require the assistance of a
     mechanic.

b.   Inventory Control  and Order Points

          Utility management includes the control  of
     inventory and identification of order points.   To
     manage the function properly,  a system  of perpetual
     inventory cards should be maintained.   Exhibit 8 is
     an example of an inventory record card.   This  card
     does not replace an equipment  record card, but does
     indicate which spare parts are required  to  repair a
     specific piece of  equipment.   The inventory card
     provides data regarding on hand quantity and
     required quantity  for parts to repair all  equipment
     using that part.   Minimum stock quantity may  be
     determined by:

     o     Dividing total  number of  parts  or units used
          per year by the total  number of operating days
          in  the year;  the result is the  average quantity
          used per day.

     o     Multiplying the average quantity used per day
          times the number of  days  required from the
          point of order request to the point of
          delivery; the  product is  the required number of
          parts or units  needed during that order period.
                   33

-------
                    o    Multiply the above product times 1.25 for a 25%
                         safety margin (this margin may be increased or
                         decreased depending on the item purchase).

                         The maximum stock quantity indicates the
                    inventory level over which the cost of storing the
                    inventory is excessive and may not be justified.
     B.   Personnel
               Personnel management affects all levels and departments
          of an organization.  This function, if not properly managed,
          can have a far reaching negative impact on the utility.
          Personnel management requires maintenance of personnel
          records.  These records should provide a complete history of
          each staff member from hiring to termination and should
          include:

          o    The application form,
          o    Job descriptions,
          o    Interview notes,
          o    Insurance and tax forms,
          o    Performance evaluations,
          o    Salary history,
          o    Sick leave and vacation history,
          o    Training, and
          o    Notes from an exit interview given at employment
               termination.   I/

          1.   Performance Evaluation

                    The performance of each employee should be reviewed
               at least annually.  This annual  review process involves
               utility management in the employee's career objectives
               and encourages a commitment to effective and efficient
               utility operations consistent with the utility's overall
               objective.  The review should be objective, open, and the
               results should be documented.  Exhibit 19 is a sample
               annual  evaluation form which serves as a minimum bench-
               mark for discussion.   Since this form is subjective,  it
               should  be supplemented with notes on the employees
               performance of tasks and other initiatives  and
               accomplishments.
\J  For detailed information on  staffing  needs,  see  "Estimated  Staffing
    for Municipal  Wastewater Treatment Facilities,"  Office  of Water
    Program Operations,  Environmental  Protection Agency,  Washington,
    D.C.   March, 1973.

                                   34

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                            EXHIBIT 19
EMPLOYEE PERFORMANCE REVIEW AND EVALUATION


Dtrrlesi
DO NOT ALLOW PERSONAL FEELING TO GOVERN YOUR RATING.
which are not typical.
Knowledge
of Work


Effect on
Workers

Promptness


Responsibility

Accuracy


Quantity
Of Work

Initiative

Application

Comments:

Practically
None
D

Often
Breeds
Trouble
D
Always
Tardy

a
Careless
and
Negligent
D
Is highly
Inaccurate
a

Amount of
work unsat-
isfactory
D
Must always
be told what
to do
a
Indifferent
and Lazy
D


Check In block which seems
D


a

a


a

a


D

a

D



Below
Average
D

Sometimes
causes
Dissension
a
Must be
reminded
about
Promptness
D
Not very
reliable
D
Is often
Inaccurate
D

Turns out
just enough
to get by
a
Needs con-
siderable
Supervision
D
Tendency
toward
Indifference
a

Use back of sheet
D


a

a


a

n


a

a

a


for
Do net be Influenced by UNUSUAL SITUATIONS
beit to fit above employee.
Acceptable
Knowledge
a
'No out-
standing
effect on
workers
D
Usually
Prompt

D
Accepts
fteip.
when asked
D
Makes
Occasional
errors
a

Turns out
fair ami.
a
Needs
Direction
and help
in coses
D
Average
application
a

a


a

a


a

a


a

D

a


additional information or
Somewhat
above
Average
D

Belter than
Average
a
Never Late
without
good cause

a
Assume*
Reip.
without
being told
a
Somewhat
above
Average
D
Always
finishes
alloted
amount
D
Needs
little
Supervision
a
Interested
and Diligent
D

remarks.
a


a

a


a

D


a

a

a



Very well
Informed
a
Promotes
cooperation
and Good-
will
D
Almost
never late

a
Accepts
Resp. above
Average
Requirement
D
Rarely
mokes
mistakes
D
Turns out
more than
average
amount
D
Pushes work
thru on own
initiative
D
Puts extra
effort into
work
D


35

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Safety

     Every utility should have a formally recognized
safety program.  A good program will  accomplish three
goals:

o    Reduce the total  cost of operations;
o    Increase productivity; and
o    Provide a feeling of security and well-being for
     personnel.
A successful safety program starts with management's.
commitment of necessary time and resources.

a.   Accidents

          After a new employee has been hired,  the
     manager must ensure that he is given the proper
     training in the work skill  for the job  and in the
     safety program.  This will  greatly reduce  the chance
     of accidents.  If an accident occurs, the  immediate
     supervisor and safety officer should be informed.
     The supervisor should investigate each  accident
     thoroughly and complete an  accident report similar
     to the one shown on Exhibit 20.   Should an employee
     need medical attention, he  should be taken to a
     specified doctor, clinic or hospital.  The accident
     report should show the doctor's  name and diagnosis,
     the cause of the accident,  and what has been done to
     prevent it from happening again.   The information on
     these forms can be used to  prepare a monthly summary
     of all accidents.  A form such as the one  shown on
     Exhibit 21 can be used.  These reports  can be
     reviewed to find ways of decreasing accidents.
                    36

-------
                                                                   EXHIBIT  20
                                                                  No.	
                           SUPERVISOR'S ACCIDENT REPORT
                                                                           A.M.
Name of  Injured	Date of  Injury	Time	P.M.
Department	Division	
Location	 Occupation
Doctor	Hospital	Estimated Lost Time_
Describe the Injury	
Describe fully how accident happened, and what employee was doing when injured;
CAUSES OF ACCTDENT
Unsafe Equipment_     	Unsafe Conditions___	Unsafe Act
Explain the above:     	
What has been done to prevent a recurrence of this type of accident?
Witnesses:
Reported by:
Approved by Dept. Head	
Approved by      Manager_
                                      \;;<>i ' s 3' ( idont rppor*-  form.
                                      37

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                                                                   MONTHLY ACCIDENT.SUMMARY
to
oo
                                                                                           CUMULATIVE THIS YEA!
                 Department S Divisions
                                                                                                                                       x
                                                                                                                                       n:
                                                                                                                                       ii
                                                                                                                                       en
                                                            Montr-.,-/ acci-ier.t. surr.marv  r^rm.

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 IV. Finance and Accounting

          Accounting in publicly owned treatment works (POTWs) is
     important for two significant reasons.  First, accounting can
     provide local officials with a high level of confidence that
     resources are being used properly.  Secondly, accounting reports
     can provide local officials with the information they need to
     evaluate utility performance and set a course for future action.^/
     Complete and timely accounting reports are vital ingredients in
     successful management and policy making.  These reports should
     cover such matters as local financial conditions, actual
     performance against budgeted expenditure and revenue targets, or
     the cost of providing specific types of service. Through sound
     accounting procedures and periodic audits of financial records and
     procedures, assurance is gained that the resources of the utility
     are properly safeguarded.  The purpose of this chapter is to set
     forth some basic accounting procedures and practices, and to show
     the utility manager how he can (through operating statements) match
     actual results of operations with planned or budgeted amounts.

     A.   Internal Controls

               To implement and maintain a sound accounting process
          successfully, accounting functions should be well organized
          and controlled.   Accounting responsibilities, procedures and
          policies should be designed to help prevent:

          o    Misstatement of account balances because of errors (both
               intentional and unintentional) and,

          o    Misappropriation of cash and other resources of the
               utility.

               These objectives are attained through a system of
          internal controls which is established and followed by
          accounting personnel.  Some of the specific characteristics of
          a system of internal controls are described below.

          1.    Separate Accounting Duties

               Whenever possible, accounting procedures should be
               devised so  that no single person handles a particular
               transaction from beginning to end.   Under this approach
               one person  can check the work of the other.
I/  For detailed information on utility planning and budgeting,  see
"Comprehensive Diagnostic Evaluation and Selected Utility Management
Issues", Office of Water Program Operations,  EPA, Washington,  D.C.
1982.
                                   39

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      2.    Use and  Control  Prenumbered  Forms

           All forms used  in the accounting process should have
           preassigned numbers  in a specific sequence.  The forms
           can then be accounted for during the day-to-day
           accounting routine.  Voided  forms should be properly
           cancelled so their whereabouts are known.  This
           prenumbered form control procedure helps assure that
           accounting transactions are  properly recorded in the
           accounting system.

      3.    Approval Signature

           A responsible official should sign off on certain
           accounting transactions including:

           o    Issuing of purchase orders;
           o    Approving of invoices and payrolls for payment;
           o    Signing checks;
           o    Depositing cash; and
           o    Recording journal entries

               This approval  process fixes final  responsibility for
           these accounting transactions.

     4.    Reconcile Subsidiary Records to Control Totals

          Totals of subsidiary records should  be  reconciled to
          control totals regularly.   Differences  must be checked
          out and resolved.  Key functional  areas include cash,
          accounts receivable, and accounts  payable.

B.   Chart of Accounts

     The chart of accounts provides  the means  by  which  all
     accounting  transactions  are classified  and recorded.   The
     chart of accounts  also provides  the framework  within which
     information in accounting records is  extracted,  summarized and
     reported.   Accordingly the chart of accounts should allow the
     classification of  information  in a way  which:

     o    Facilitates control  of utility assets and liabilities;
          and
     o    Is  useful  to  those who  receive financial  reports
          including internal management, elected  officials,
          investors, and  the public.

     To accomplish  these  objectives,  information  should  be
     classified  in  the  same format and  level of detail  in  the  chart
     of accounts  as  in  the budget.
                              40

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     1.    Elements
          a.    Fund:   An  independent fiscal and accounting entity
               with a  self-balancing set of accounts recording cash
               and/or  other  resources  together with all related
               liabilities,  obligations, reserves, and equities
               which are  separated  for the purpose of carrying on
               specific activities  or  attaining certain objectives.

          b.    Type of Account:   (Asset, liability, revenue,
               expenditure).

          c.    Organization:   The department  and any departmental
               subdivisions  responsible for a particular
               expenditure.

          d.    Activities:   The  specific services or administrative
               functions  performed.

          e.    Objects of Expenditure: The specific category of
               cost designed to  provide detail on the types of
               commodities or services purchased by utilities.

          f.    Source  of  Revenue:   The type of revenue received.
          g.    Program or Project:   A special  classification  which
               can be used to identify major capital  outlay or
               Federal  projects.

     2.    Coding

               A set of codes must  be established to  identify each
          element in the chart of accounts.   The number of elements
          included in each classification will  depend on the
          reporting needs of the  utility.  See Exhibit 22 for
          possible coding.  The coding scheme for the chart of
          accounts should provide codes for all  elements currently
          in  the structure and make provision for adding new
          elements or adjusting existing elements.  See Exhibit 23
          for a simplified chart  of accounts.

C.    Accounting Records

          Every financial transaction of the municipality should be
     recorded in the accounting records.

          These records consist of:

          o    Source documents,
          o    Books of original  entry, and
          o    Books of final entry.
                                41

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                                                                                     EXHIBIT  22
                                          SAMPLE ACCOUNT CODING STRUCTURE
 FUND
 10  General
 20  Special Revenue
 30  Capital ProjecU
 40  Enterprise
 41  Wastewater Enterprise
 SO  Internal Service
 60  Special Assessment
 70  Debt Service
 80  Trust and Agency
     ORGANIZATION
10  General Government
20  Police
30  Public Works
31  Wastewater Utility
40  Fire
SO  Library
60  Health
70  Parks
   ACTIVITY*
100  Collection
200  Pumping
300  Treatment
    MAJOR OBJECTS
100  Personal Services
200  Operating Expenses
300  Maintenance Expense
310  Preliminary   400  Capital Outlay
320  Primary
330  Secondary
340  Tertiary
350  Sludge
400  General
500 Laboratory
    REVENUE  SOURCES
 10  Taxes
 11  General Property
 20  User Charges
 21  Sewer User Charges
 30  Intergovernmental
 40  License Permits
 SO  Departmental Billings
60  Rent
70  Miscellaneous
Wastewater Only
                                                            42

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                                                             EXHIBIT 23
                        SAMPLE UTILITY CHART OF ACCOUNTS
                              WASTEWATER  TREATMENT


  BALANCE SHEET ACCOUNTS    ACTIVITY   REVENUE ACCOUNTS          EXPENSE ACCOUNTS

Assets                     Collection  General Property Tax      Personal Services
  Cash                     Pump        User Charges              Operating
  Accounts Receivable         Stations Septage Disposal          Maintenance
  Due from other Funds     Treatment   Interest on Investments   Capital Outlay
  Prepaid Expenses         Laboratory  Rent
  Materials and Supplies   General     Sale of Equipment
  Restricted Assets                    Intergovernmental
  Equipment                            Department Billings
  Utility Plant                        Sewer Availability Charges
  Construction in Progress             Connection Fees
                                       Development Fees
Liabilities                            Special Assessments
  Accounts Payable
  Due to other Funds
  Notes Payable
  Bonds Payable
  Customer Deposits
  Accrued Liabilities
Fund Equity
  Contributions
  Retained Earnings
  Reserves
                                          43

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          1.   Source Document

                    The details of financial and other transactions are
               usually described on documents from parties outside the
               utility and prepared within.  A purchase of goods or
               services, for example, may involve:

               o    Internal documents; and

                         Purchase requisition,
                         Purchase order,
                         Receiving report, and
                         Check

               o    External documents.

                         Vendor packing slip/shipping documents; and,
                         Vendor invoices.

     These source documents should provide the details of the
transaction.  The accounting information is recorded in one of the books
of original  entry and the source documents are then filed.   Examples of
source documents are deposit slips, receipts for cash received, utility
bills, notes payable and payroll checks.

          2.   Books of Original Entry

               Books of original entry are internal accounting registers
               or journals in which accounting information  is recorded
               from the source documents.  Book of original  entry
               include:

               o    Cash Receipts Journal.   Cash received by the utility
                    is recorded in this journal,

               o    Cash Disbursement Journal.   Payments  made by
                    the utility are recorded in this journal.

               o    Payroll  Journal.   Payroll  checks issued are recorded
                    here.

               o    Purchase Journal.   Purchase orders issued are
                    recorded in this  journal.

               o    Revenue  Journal.   Bills issued are recorded in the
                    revenue  journal.   and,

               o    General  Journal.   Journal  entries are recorded here.
                                     44

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     3.   Books of Final Entry

               Books of final entry are the principal accounting
          records from which financial and management reports are
          prepared.  These books should classify information in the
          same manner as the budget and chart of accounts.  The
          information in these books is posted from the books of
          original entry.  The principal books of final entry are:

          o    General Ledger.  The general ledger is a
               comprehensive record of the financial  activity of
               the utility.  It contains the current balance
               (deficits and credits) for each general  ledger
               account in the chart of accounts;

          o    Operating Ledgers.  These ledgers maintain detailed
               accounting for revenues, appropriations, operating
               budgets, encumbrances and expenditures.   These are
               used primarily in the larger utilities.   Specific
               ledgers might include;

                    Revenue Ledger, and
                    Budget and Expenditures Ledger.

          o    Payable Ledgers.  These contain balances for
               individuals or businesses the utility owes money.
               They form subsidiaries to various liability
               accounts; and

                    Ledgers                  Liability Account

               Account Payable Ledger      Accounts Payable
               Bond Payable Ledger         Bonds Outstanding

          o    Receivable Ledgers.  These record amounts for each
               individual or business that owes the utility money.

                    Ledgers                  Control  Account

               Accounts Receivable Ledger  Accounts Receivable
               Special Levies Ledger       Special  Levies Due

D.    Interim Financial Reports

          Interim financial reports are prepared primarily for
     internal  use by management and the governing body in the
     process of planning and control.  These interim reports must
     be complete, accurate, clear and timely.   Basic  interim
     reports are:

     o    The Balance Sheet (see Exhibit 24);
                                45

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                                          SAMPLE BALANCE SHEET
            ASSETS
   LIABILITIES AND FUND EQUITY
Cash
Investments
Accounts Receivable
Due from other Funds
Prepaid Expenses
Materials and Supplies
Restricted Assets
Equipment
  less Accumulated Depreciation
Utility Plant
  less Accumulated Depreciation
Contruction in Progress
Liabilities
  Accounts Payable
  Due to Other Funds
  Notes Payable
  Bonds Payable
  Customer Deposits
  Accrued Liabilities
    Total Liabilities

Fund Equity
  Contributions
  Retained Earnings
  Reserves
    Total Fund Equity
TOTAL ASSETS
TOTAL LIABILITIES AND FUND EQUITY
                                                                                                              x
                                                                                                              :E
                                                                                                              ii
                                                                                                              CO

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                                                           BALANCE SHEET
               Use
    Description
                                                                     Key  Data Elements
                                 Data Element Source
Utility manager, municipal
officials and third parties
use this report to understand
the financial position of
the utility at a specific
point in time, typically at
the end of a fiscal year.

This report, in conjunction
with the statement of revenues,
expenses and changes in
retained earnings and the
statement of changes in
financed position are used
by bankers and investors
for bonding and investment
decisions.
The Balance Sheet(Statement
of Financial Position) is one
of three major financial
reports.  It reports the
balance of all general ledger
asset, liability and fund
equity accounts.

Net income for the year is
normally added to retained
earnings (losses are subtracted).

Annual depreciation is added
to the accumulated depreciation
by asset category  (Equipment
and plant).
1.   Asset Accounts

2.   Liability Accounts

3.   Fund  Equity Accounts
1.  General Ledger

2.  Fixed Asset Records

3.  Net  Income or Loss
                                                                                                                        x
                                                                                                                        re
                                                                                                                        ii
                                                                                                                        CD

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o    The Statement of Actual and Estimated Revenues
     (see Exhibit 25);

o    Summary Statement of Actual and Budgeted Expenditures and
     Encumbrances (see Exhibit 26);

o    Statement of Actual  and Budgeted Expenditures and
     Encumbrances, by Department/Activity (see Exhibit 27);

o    Cash Flow Results and Forecast (see Exhibit 28);

o    The Statement of Revenues, Expenses and Changes in
     Retained Earnings (see Exhibit 29); and

o    The Statement of Changes in Financial  Position (see
     Exhibit 30).

     1.    The Balance Sheet

               The Balance Sheet shows the financial  position
          of the utility  at a particular date, usually month
          end or year end.  It reports the assets,
          liabilities, reserves and fund balances.

     2.    Statement of Actual  and Estimated Revenues

               The Statement of Actual  and Estimated Revenues
          is an analysis  of the revenues of the current month
          and an analysis of the cumulative revenues to the
          date of the report.   It also indicates the balance
          yet to be received to meet the annual  estimate.   The
          comparison of the actual  revenues with the estimate
          is important to the planning of future budget
          estimates.   It  shows the  accuracy of revenue
          estimates and provides an early indication  of cases
          where revenue may exceed  or fall  short of
          expectations.   This  information allows officials  to
          alter their planned  courses of action accordingly.

     3.    Statement of Actual  and Budgeted  Expenditures and
          Encumbrances

               This statement  is used to control  expenditures
          and allows:

          o     Comparison of expenditures for  the month with
               the budget for  the month;

          o     Comparison of year-to-date expenditures to the
               budget;
                        48

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UD
 Hevenue Sources

 User Charges

 General Property Taxes

 Federal Grants

 State Grants

 Septic Tank Disposal Fees

 Interest Revenue

 Rents

 Sewer Availability Charges

 Connection Fees

 Development Fees

Special Assessments

Other

Total Revenue
                                            STATEMENT OF ACTUAL AND ESTIMATED REVENUES
                                                         WASTEWATER  TREATMENT
                                                   Current Month
                                            Estimated    Actual
 Over
(Under)
  Total
Estimated
                                                                                                 Year To Date
                                                                                       Estimated   Actual
 Over
(Under)
 Balance to
Be Collected
                                                                                                                                         x
                                                                                                                                         3:
                                                                                                                                         ii
                                                                                                                                         DO
                                                                                                                                         ro
                                                                                                                                         01

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                                            STATEMENT OF ACTUAL AND  ESTIMATED  REVENUES
             Use
      Description
                                                                    Key Data Elements
                                                              Data Element Source
 Utility manager uses  this
 report to  identify  by
 revenue account,  the
 current month  and year
 to date:

 . Estimated  (budgeted)
   revenue

 . Actual receipts collected

  Variances

 . Balances to  be  collected

 This  report  is important to
 analyze cash collected  from
 various revenue sources.
Monthly status-report of
current month and year to
date cash collected com-
pared to revenue budgeted
by revenue source.  All
revenue sources (except
bonds) are recorded on
this report, operating
and capital revenue
sources.

This report does not
report billings.  Cash
collected is reported
against budgeted
resources.
1.  Revenue Budget

2.  Cash Collected

3.  Revenue Accounts
1.   Cash  Receipts  Journal

2.   Revenue Ledger

3.   General Ledger

4,  Operating Budget
en
o
                                                                                                                        m
                                                                                                                        x
                                                                                                                        on
                                                                                                                        Ql

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                                             EXHIBIT t6
                           Summary Statement of Actual and
                      Budgeted Expenditures and Encumbrances
               For the Month of September, 19xx and Nine Months Ended September 30, 19xx
         Department/
          Function/
           Activity
Wastewater Treatment
Operations
                            Month of September, 19xx
                                                                        Jan. -Sept. 19xx
  19xx
Appropri-
  ation
(Revised)
  (D
                Actual                  Actual
                Under                  Under     Un-
                (Over)                  (Over)   expected   Encum-
Budgeted  Actual  Budgeted Budgeted  Actual  Budgeted Balance   brances
  <2>      (3)     (*)      (5)      (6)      (7)      (8)       (9)
Unemcum-
  bered
 Balance
  (10)
                                                                              $L
    TOTAL

Administration
Operations
Maintenance
Engineering
Inspections
Customer Service
Debt Service
TOTAL

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                                                   EXHIBIT 27
                      Statement of Actual and Budgeted Expenditures
                        and Encumbrances, By Department/Activity
                   For the Month of September, 19xx and Nine Months Ended September 30, 19xx
         Department/
         Object
                     19xx
                   Appropri-
                     ation
                   (Revised)
                      (D
                                    Month of September, 19xx
Budgeted  Actual
  (2)      (3)
 Actual
 Under
 (Over)
Budgeted Budgeted  Actual
  (4)      (5)      (6)
        Jan. - Sept. 19xx

 Actual
 Under     Un-            Unencum-
 (Over)   expected   Encum-    bered
Budgeted Balance   brances   Balance
  (7)      (8)      (9)       (10)
en
ro
Department Name:
 Personal
  Services
 Supplies
 Other Services
  and Charges
 Capital Outlays
TOTAL
                          $
                                                                       $
                                                                                                          x
                                                                                                          n:
                                                                                                          ii
                                                                                                          CO
                                                                                                          tv>

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                            Cash Flow Results and Forecast

                              Results for_	and Forecast through	
Projected for
Results for (Current Month) (Each Projected Month)
Beginning Disburse- Ending Beginning
Fund Balance Receipts ments Balance Balance Receipts
$ $ $ $ $ $
Disburse-
ments
$
(Additional
Projected
Ending Months)
Balance
$ $ $ $
en
oo
     TOTAL-ALL FUNDS
                                                                                           m
                                                                                           x
                                                                                           3:
                                                                                           ti
                                                                                           DO
                                                                                            ro
                                                                                            00

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                                              CASH FLOW RESULTS AND FORECAST
                    Use
                                                     Description
                                       Key Data Elements
                           Data Element Source
       Utility manager uses this report
       to monitor for the current and
       subsequent month(s), by fund:

           -  Beginning and ending balance

           -  Receipts

           -  Disbursements
en
This monthly report summarizes
by fund, the receipts, dis-
bursements and beginning and
ending balances.  It is an
important report when multiple
funds are used to finance
utility operations such as:

  - General

  - Special Assessment

  - Enterprise
1.  Fund Sources

2.  Receipts

3.  Disbursements

4.  Balances
1.  Cash Receipts
       Journal
2.  Cash Receipts
       Journal
3.  Cash Disbursements
       Journal
4.  General Ledger
                                                                                                                          x
                                                                                                                          a:
                                                                                                                          i
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                                                   STATEMENT OF REVENUES,
                                         EXPENSES AND CHANGES IN RETAINED EARNINGS

                                              WASTEWATER TREATMENT UTILITY
                      Operating  Revenues
                           User Chatges
                           Septage Disposal Fees
                              Total Operating Revenues

                      Operating  Expenses
                           Personal Services
                           Operations
                           Maintenance
                           Depreciation
                           Capital Outlay
                           Other
OT                             Total Operating Expenses
en
                              Operating Income

                      NonK)perating Revenues  (Expenses)
                          Operating Grants
                           Interest Revenue
                          Rent
                          Sewer Availability Charges
                          Connection Fees
                          Interest Expense
                              Total Non-Operating Revenues (Expenses)

                              Net Income (Loss)

                      Retained Earnings July 1

                      Retained Earnings June 30

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                                 STATEMENT OF REVENUES, EXPENSES AND  CHANGE IN RETAINED EARNINGS
               Use
   Description
Key Data Elements
    Data Element Source
Utility manager?, municipal
officials, and third parties
use this report to understand
the results of operations
for the period reported,
usually monthly.

This report, in conjuction
with the Balance Sheet and Stat-
ment of Changes in Financial
Position is used by bankers
and investors in their decision
to loan funds to the utility.
This report (also known
as the income statement
or profit and loss
statement) describe  by
operating and non operating
categories, the results of
operations for the period.  It
reports revenues and expenses
and the impact of net income
(loss) in retained earnings.
The final retained earning
(June 30) is then reported on
the Balance Sheet.  This
report is issued monthly.
 1.  Revenues

 2.  Expenses

 3.  Retained Earnings.
1.   Cash Receipts Journal

2.   Cash Disbursements Journal

3.  Calculated Retained

    Earnings.
                                                                                                                           x
                                                                                                                           :r
                                                                                                                           ii
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                                                                                                                            to
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             STATEMENT OF CHANGES IN FINANCIAL POSITION

                     WASTEWATER TREATMENT UTILITY
Sources of Working Capital
    Operations
        Net Income
        Items not Requiring Working Capital
            Depreciation
            Working Capital Provided by Operations
    Cash from Bond Proceeds
    Contributions

                 Total Sources of Working Capital

Uses of Working Capital
    Aquisition of Property, Plant and Equipment
    Retirement of Bonds
    Net Decrease in other Current Liabilities
    Net Increase in other Assets

                 Total Use of Working Capital

                 Net Increase (Decrease) in Working Capital
                                                                                              x
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-------
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     o    See the unexpended balance  of the  appropriation
          for a given period;

     o    See the outstanding encumbrances for a given
          period.  This can be determined by adding the
          unpaid purchase orders and  contracts for the
          utility; and,

     o    See the uncommitted balance of the
          appropriation at a given point in time

4.   Statement of Actual and Budgeted Expenditures and
     Encumbrances by Department/Activity

          This statement shows a detailed listing, by
     object code, of expenditures and encumbrances for
     each department.  It is given to the department head
     to assist in controlling departmental expenditures.

5.   Cash Flow Analysis

          This statement shows the cash position at the
     report date and projects what it will be on certain
     future dates.  These forecast guide utility
     personnel in adjusting expenditures to revenues.
     This statement enables the utility manager to
     anticipate and plan for cash flow problems and
     opportunities such as funding capital improvements
     and adjusting rates.  It also allows the manager to
     maximize interest income through investment of idle
     funds.

          The data for this forecast may come from
     several sources.  The General Ledger for Cash will
     indicate the present balance in each fund.  The
     estimated receipts from billings and miscellaneous
     revenues will come from a study of the previous
     year's records.  Often times the budget documents
     predict income; however, this should be compared to
     actual trends.  The estimated expenditures should
     come from schedules in the annual budget.

6.   The Statement of Revenues. Expenses and Changes  in
     Retained Earnings

          This statement is often referred to as the
     income profit and  loss  statement which shows  how
     much the enterprise earned or lost during  a given
     period.
                         59

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7.   The Statement of Changes in Financial  Position

          This describes the source and use of utility
     working capital.

          These seven  statements reflect the essential
     minimum information that management must know and
     present.   Other  beneficial  financial  reports are:

     o    The  Daily Cash Report.   This  gives the  manager
          an up to the minute view of the cash on hand in
          any  fund.  The Daily Cash Report  is a running
          balance  of each day's receipts, disbursements,
          and  new  balance during the month.   A sample
          format is  shown on  Exhibit 31.  and,

     o    The  Investment Record Card.   To maximize the
          cash available for  investment,  all  incoming
          cash must  be deposited  as  soon  as  possible and
          must remain  on deposit  as  long  as  possible.
          Only cash  that is temporarily  idle  is invested.
          A  readily  available,  easily understood
          investment record is  essential  to  the
          investment program.   See  Exhibit 32  for  a
          sample Investment Record  Card.

               The next  chapter will discuss areas for
          considerations  by the utility manager when
          considering  the acquisition or  use of computers
          to provide them with management information.
                        60

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                              EXHIBIT  31
    Sample Daily Cash Report
           (Governmental Unit)
  DAILY CASH REPORT FOR	
DATE
RECEIPTS
CASH BALANCE
DISBURSEMENTS
             61

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                               EXHIBIT 32
Investment Record Card
      (Governmental Unit)
Fiscal Year
Description of lnv<
DATE ACQUIRED

SECURITY
jstment:

INTEREST RATE DATE RECEIVED SECURITY LOCATION

t.D. NUMBER























TOTAL
COST
























MATURITY
DATE
























FACE AMOUNT
























PROCEEDS

























            62

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V.  Management Information System (MIS)

        Every organization needs reliable and timely information to
   plan, manage and control  its operations.   What was previously a
   relatively simple and low-profile "sewerage operation"  has  now
   become a complex, highly visible and capital  intensive  wastewater
   processing industry.   Given the significance of this rapid
   transformation, the need for increased management planning  and
   control  capabilities  and the related management information systems
   needed to support those planning and control  objectives has become
   increasingly evident.  A properly planned and implemented MIS will
   increase the utility  managers ability to:

   o    Understand and direct daily operations,
   o    Control utility  cost,
   o    Monitor planned  to actual  performance,
   o    Develop alternative approaches  to operations, and
   o    Allocate resources as they are  required.

        The data required to develop this information is defined in
   the various sections  of this chapter.   This data provides the
   source of the MIS.  The elements of  a MIS discussed in  this chapter
   are:

   o    MIS organizational responsibility,
   o    Policies of report preparation,
   o    Operational  reports,
   o    Financial  reports,
   o    Management reports,  and
   o    Manual  versus  electronic data processing.

   A.    MIS Organizational Responsibility

             Responsibility for developing the MIS does not
        necessarily require  the utility manager to write and prepare
        all  the required reports.   The  manager should identify
        required information and delegate the responsibility of report
        preparation  (as  appropriate)  to the  best suited utility and/or
        municipal  employee.   Sections C,  D and E list basic required
        reports.

   B.    Report Preparation

             The reports outlined  in  the  remainder of this section  are
        considered necessary for effective utility management.
        A utility  may  require additional  management information to
        address a  certain function  or meet requirements unique to that
        facility.   Caution should  be  used when management  mandates  the
        preparation  of reports or  requires information, because
                                      63

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      frequently  the effort and expense required may offset the
      value of  the  information.  Therefore in determining whether or
      not  information should be provided, the utility manager should
      consider:

      o    Does the report really serve a purpose?
      o    What will the report tell me?
      o    Will new or different information be developed?
      o    What are the consequences if the report does not exist?
      o    What operation will be simplified or cost saved if the
          information is made available?
      o    Is the same information available elsewhere?
      o    Does the authority exist to put the information to
          practical use?
      o    How often should this information be available?
      o    Who would or should be concerned with this information,
          and why?

C.    Operational Reports
     o    Plant Performance (See Exhibit 33),
     o    Maintenance Activity (See Exhibit 34), and
     o    Energy Cost and Consumption Report (See Exhibit 35).

D.   Financial Reports

     o    Summary Statement of Actual and Budgeted Expenditures and
          Encumbrances  (See Exhibit 26)
     o    Statement of Actual  and Budgeted Expenditures and
          Encumbrances by Department/Activity (See Exhibit 27),
     o    Statement of Actual  and Estimated Revenues (See Exhibit
          25),
     o    Balance Sheet (See Exhibit 24),
     o    Statement of Revenues,  Expenditures and Changes in
          Retained Earnings (See  Exhibit 29),
     o    Statement of Changes in Financial Position (See Exhibit
          30), and
     o    Cash Flow Results and Forecast (See Exhibit 28).

E.   Management Reports

     o    Purchase Order Status (See Exhibit 36),
     o    Vendor File Activity (See Exhibit 37),
     o    Stock Activity (See  Exhibit 38), and
     o    Employee Profile (See Exhibit 39).
                                64

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                                                   EXHIBIT 33

                                     PLANT PERFORMANCE REPORT
  DATE
       DAY
       OF
       (WEEK
RAIN
OR
SNOW
IN.
                    SEWAGt PLOW
                    RATE
                  MAX MIN.
                           TOTAL
                                 RAW
FINAL
                                          TOTAL
                                          SUSPEND
                                          SOLIDS
                                          RAW
         FINAL
         EFF.
                                                    CHLORINATION
                   RESIDUAL
                   MO/1
                                           AJM. I PJM.
                                                     SETTLEABLE
                                                     SOLIDS ml/1
                                                                 RAW
RIM.IFINAI
   EFF.
IM.FII
OF
                                                                                 FH

D.O.
IMA
EFF.
                                                                                              TKN
                                                                                           RAW
                                                                                                FF.
                                                               TOTAL
                                                               NITROGEN
                                                                                                        EFF.
                       TOTAL
                       PHOS-
                       PHORUS
RAWJ'NA
   10
   11
   12
   13
   14
   IS
   IT
   IS
   18
   20
   21
   22
   24
   26
   27
  30
  31
 WEEK
       ODmg/l
      RAW  EFF.
   FECAL
   COLIFORM
   PER 100 ml
                          EFFLUENT TURBITY OTHER OR SPECIAL ANALYSIS
                                                                                   SEPTIC WASTES
               AVE.
                        AVE.
               AVE.
                        AVE.
               AVE.
                        AVE.
               AVE.
                        AVE.
 AVE.
REMARKS: CHLORINE OR POWER OUTAGES. LOST TIME. ACCIDENTS. ETC.
                                                            65

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                                                  PLANT PERFORMANCE REPORT

                                                         (Monthly)
             USE
         DESCRIPTION
      KEY DATA ELEMENTS
                                                                                                         DATA ELEMENT SOURCES
Utility Managers use this
report to:

    Summarize results of
    daily operating records.

    Summarize results of daily
    laboratory analysis.

    Identify variations in
    plant performance.

  .  Report to regulatory
    agencies on compliance.
Monthly plant performance re-
port of physical operations
summarizing the analysis of
key parameters used to monitor
plant efficiency & compliance.
 1.   Rainfall
 2.   Sewage Flow
 3.   Chlorination
 4.   Settlable Solids
 5.   ph
 6.   Total Suspended Solids
 7.   Dissolved Oxygen
 8.   Biochemical Oxygen Demand
 9.   Coliform
10.   Remarks
 1.  Rain Cage
 2.  Flow Meter Records
 3.  Operator Log & Lab Reports
 4.  Laboratory Reports
 5.'Laboratory Reports
 6.  Laboratory Reports
 7.  Laboratory Reports
 8.  Laboratory Reports
 9.  Laboratory Reports
10.  Operator Logs
                                                                                                                              X

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MAINTENANCE ACTIVITY REPORT




         (Weekly)
WORK ORDER
NUMBER
en



DESCRIPTION
TYPE OF
ACTIVITY




REQUESTED
START DATE




ACTUAL
START DATE




SCHEDULED
COMPLETION DATE




ACTUAL
COMPLETION DATE




ESTIMATED
COST




ACTUAL
COST

m
X
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ro
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                                                  MAINTENANCE ACTIVITY REPORT

                                                           (Weekly)
             USE
         DESCRIPTION
 KEY DATA ELEMENTS
                                                                                                         DATA ELEMENT SOURCES
Jtility managers use this
report to:

    Identify types of mainten-
    ance activities being
    performed.

    Identify delays in starting
    or completing scheduled
    maintenance.

    Identify maintenance cost
    by activty and variation
    from cost estimates.
  oo
A weekly status report of main-
tenance activities.

Should contain both scheduled
preventive maintenance and
corrective maintenance activities
Work order number
Type of activity

Requested start date

Actual start date

Scheduled completion date
Actual completion date
Estimated cost
Actual cost
1.  Work order
2.  Work order or main-
    tenance log
3.  Weekly maintenance
    schedule
4.  Work order or main-
    tenance log
5.  Maintenance schedule
6.  Work order
7.  Work order
8.  Work order
                                                                                                                             x
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                                                                                                                             Oi

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                                                  ENERGY COST AND CONSUMPTION REPORT
                      FACILITY OR OPERATING UNIT:
                                                                                          MONTH:
CD
10
u
s
A
G
E
P
R
I
C
E
C
0
S
T
P
E
R
F
0
R
M
A
N
C
E

USAGE (YEAR TO DATE)
BASE YEAR TO DATE
PERCENT ABOVE (BELOW) BASE YEAR
PRICE PER ENERGY UNIT (CURRENT MONTH)
BASE YEAR COST PER ENERGY UNIT
PERCENT ABOVE (BELOW) BASE YEAR
COST (YTD) DOLLARS
BASE YEAR COST (YTD)
PERCENT ABOVE (BELOW) BASE YEAR
USAGE PER 1000 GALLONS OR POUND
OF BOD REMOVED, ETC.
BASE YEAR USAGE PER LOGO GALLONS
PERCENT ABOVE (BELOW) BASE YEAR
COST PER 1000 GALLONS OR POUND
OF BOD REMOVED, ETC.
BASE YEAR COST PER 1000 GALLONS
PERCENT ABOVE (BELOW) BASE YEAR
ELECTRIC















GAS















OIL















OTHER















TOTAL















                                                                                                                                         X
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                                               ENERGY COST AND CONSUMPTION REPORT

                                                           (Monthly)
              USE
         DESCRIPTION
                                                                        KEY DATA ELEMENTS
                                                                        DATA  ELEMENT  SOURCES
Utility managers use this
report to:

    Identify energy usage with
    facility.

    Identify energy cost, both
    unit cost & total cost.

    Evaluate performance
    indicators.

    Evaluate the success of
    energy conservation options
A monthly report that summarizes
energy usage and cost for the
facility.

The report also reports on
performance targets and compares
them with previous years results
to evaluate the success of
energy conservation options.
Energy usage


Base year to day

Price per energy unit

Base year cost

Cost (YTD)

Base year cost
Performance indicators
(usage/1000 gal; $/1000 gal
1.  Utility bills, vendor
    invoices, facility
    recording meters.
2.  Previous monthly energy
    reports.
3.  Utility bills, vendor
    invoices.
4.  Previous energy usage
    reports.
5.  Current & previous
    monthly reports.
6.  Previous montlhly reports,.

7.  Plant performance report,
    utility bills, vendor
    invoices.
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-------
 Report
                For the period
                                                   PURCHASE ORDER STATUS REPOuC
                             Vendor   Volume
 P. 0. Number  Vendor Name   Number   Ordered   Commodity Name
 1)
1099       White Bearing   140       20
                                     30
               1099 Order Total
Month  total       1  P.O.  issued
                                                  1"  Bearing
                                                  2"  Bearing
                                         50
                                         50 units ordered
                                                                                                      Issued to:
                                                              Commodity   Unit    Order   Receipt   Receipt
                                                              Case      Price   Date    Amount     Date     Expense
604
608
$1.33
$1.41
5/11/81
5/11/81
                           10*
                           30
5/27/81
5/27/81
                                                                                                Received 40*
$13.30
 42.30

$55.60*
                                                                      outstanding amount $68.90
                                                                                                     40 units $55.60
2) 1099
          White Bearing   140
                                                                                     5/11/81
3) 1099
   1099
          White Bearing   140       20       1" Bearing
          White Bearing   140       30       2" Bearing
604
608
5/11/81
5/11/81
                                                                                                                              x
                                                                                                                              re
^Partial  shipment/payment

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                                            PURCHASE ORDER STATUS REPORT

                                                 (Prepared Monthly)
Report Use
Description
Key Data Elements
                                                                                                       Data Element Source
 Facility Manager uses this
 report to:

   Identify  and expedite
   overdue orders
   Identify  orders which
   should be blanket or
   stock item orders
   Identify  rapidly in-
j^j  creasing  unit prices for
   -  possible vendor switch
   -  possible replacement
     part buying
   -  possible bulk or joint
     buying
   Identify  chronic late
   delivery  orders & vendors
   Provide data for next
   month or  years purchasing
   planning
                              Monthly status report of
                              open, received unremitted and
                              prior month remittances for
                              ordered items.  Report is in
                              three parts.

                              1.  Sequential list of open
                              and prior month paid, P.O.'s
                              by P.O. number.  All other
                              data is represented

                              2.  Alphabetical  list of
                              vendors with  vendor number and
                              index reference to applicable
                              open P.O.'s.

                              3.  Sequential list of commodities
                              by commodity  number with index
                              reference to  open P.O.'s.


                              Note:  Reports 2  & 3 are designed
                              for Electronic Data Processing
                              Systems.   Index filing of P.O.
                              copies will provide the infor-
                              mation in a manual  information
                              system.
                               1.  Purchase  Order
                                  Number
                               2.  Vendor  Name
                               3.  Vendor  Number
                               4.  Volume  Ordered
                               5.  Commodity or Part
                                  Ordered
                               6.  Commodity Code

                               7.  Unit  Price
                               8.  Order Date
                               9.  Receipt Date

                              10.  Receipt Date

                              11.  Expense Amount
                          1.  Purchase

                          2.  Purchase Order/Vendor File
                          3.  Purchase Order/Vendor List
                          4.  Purchase Order
                          5.  Purchase Order

                          6.  Purchase Order/
                             Commodity List
                          7.  Purchase Order/Quote
                          8.  Purchase Order
                          9.  Purchase Order/Receiving
                             Copy
                         10.  Purchase Order/Receiving
                             Copy
                         11.  Purchase Order/Account-
                             ing  Copy
                                                                                                                       X
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Report //: 	
For the Period
                                         VENDOR FILE ACTIVITY REPORT
                                                                                                     Issued to:
Vendor
Number

 14 D
Vendor Name
White Bearing
               Total YTD
 Vol.
Ordered

  12
   4
  20
  36
Commodity Name

1" Bearing
1" Bearing
1" Bearing
1" Bearing
Commodity
  Code

  604
  604
  604
  604
Order Dates

  2/3/81
  4/1/81
  5/11/81
Unit Price

  1.30
  1.33
  1.33
  1.32
Expense
Amount

 15.60
  5.32
 26.60
 47.52
                                                                                                                           X
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                                                    VENDOR FILE ACTIVITY REPORT
                                                   (Semi-Annually or on Demand)
        Report Use
      Description
 Key Data Elements
 Data Element Source
Facility manager uses this re-
port to:

  Identify orders which should
  be blanket or stock item
  purchases

  Identify opportunities for
  vendor consolidation

  Identify vendor disparities
A semi annual  report which in-
dicates the volume and dollar
amount of purchases from each
vendor.  The report is sorted
alphabetically by vendor with
each commodity volume order
listed and totaled by 6 month
periods.

Note:  Summary cards by vendor
may be maintained if EDP capa-
bilities do not exist.  Utility
management should review each
vendor card in lieu of this
input.
1.   Vendor Number

2.   Vendor Name
3.   Volume Offered
4.   Commodity Name
5.   Commodity Code

6.   Order Date
7.   Unit Price
8.   Expense Amount
1.   Purchase Order/Vendor
    File
2.   Purchase Order
3.   Purchase Order
4.   Purchase Order
5.   Purchase Order/Commo-
    dity List
6.   Purchase Order
7.   Purchase Order/Quote
8.   Purchase Order/
    Accounting Copy
                                                                                                                              X
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                                               STOCK ACTIVITY REPORT
Report # 	                                                                                   Issued  to;
For the Period
Commodity   Re  der                                                                                                Ending
 Number      Point      Commodity Name    Beginning   Balance      Purchases        Units     Balance on Hand      Inventory
                                           Units  _  Unit Cost    Units  Unit Cost Issued    Units     Unit Cost   Balance

  604         22        1" Bearings         4           1.29      20       1.33      19       8                   $ 10.64
                                                                                                                           m
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                                                        STOCK ACTIVITY REPORT

                                                    (Semi-Annually or on Demand)
        Report Use
 Facility manager uses this re-
 port to:

   Identify overstocked and un-
   derstocked items
   Identify items which should
   be on hand in inventory
   rather than order materials
   Identify duplicate stock
   Determine value of inventory
CTl
      Description
A monthly report which shows
the movement of inventory and
stock items from the point of
order through receipt and use.
The report shows balances and
value by commodity, and reorder
point.

Note:  Summary cards by commodity
may be maintained if EDP capa-
bilities do not exist.   Utility
manager should review each card
in lieu of this report.
                                                                           Key Data Elements
 1. Commodity Number

 2. Reorder
 3. Commodity Name
 4. Beginning Balance
    Units
 5. Beginning Balance
    Unit Cost
 6. Purchased Units
 7. Purchased Unit Cost
 8. Issued Units
 9. Balance on Hand Uni
10. Balance on Hand Uni
    Cost
11. Ending Inventory
    Balance
                                                               Data  Element  Source
 1. Purchase Order/Vendor
    File
 2. Inventory Ticket
 3. Purchase Order
 4. Prior Month Report

 5. Prior Month Report

 6. Purchase Order
 7. Purchase Order/Quote
 8. Inventory Ticket
 9. Calculated
10. Calculated
11. Calculated
                                                                                                                              X
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Report // 	
For the Period
EMPLOYEE PROFILE
                                                                                                  Issued to:
         Name
     M.  L. Operator
                               Date of  Hire
               Career Profile
           Date         Classification
                                                                                                      Training
12/9/73 12/9/73
2/8/74
6/30/75



6/30/78

7/30/80

8/1/81







Laborer I
Operator I
Operator II



Operator III

Chief Operator

Superintendent








48
3/1/75

6/12/76

7/18/78

1/5/80

6/30/80

12/31/80

6/30/80

6/30/81

V^UUl. OC:
Sacremento
Certified
Level I
Certified
Level II
Certified
Level III
Certified
Level IV
3 cr hours
Mech Eng
3 cr hours Shop
Mgmt
3 cr hours
Accounting
3 cr hours
Chemistry
                                                                                                                         X
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                                                     EMPLOYEE PROFILE REPORT
                                                   (Semi-Annually or on Demand)
          Report Use
      Description
    Key Data Elements
    Data Element Source
Utility manager uses this
report to:

   Monitor employee develop-
   ment
   Identify management train-
   ees
   Monitor personnel policy
   compliance
   Identify training require-
   ment
   Match job requirements to
   classification level
A semi-annual report prepared
by the utility clerical function
which profiles the training and
career, job development path
of an employee.  Employees are
listed alphabetically with all
historical data included for
the length of the employees tenure.

Note:  This report is designed
for a manual system.  Each
year can be an extension of the
prior year report and a master
sheet would be kept in each
employee file.
1.  Name
2.  Date of Hire
3.  Career Profile Date of
   Job
4.  Career Profile Type
   Job Status Change
5.  Training Hours
6.  Training Course Title
   or description
1. Personnel File
2. Personnel File
3. Personnel File

4. Personnel File

5. Personnel File
6. Personnel File
  00
                                                                                                                             m
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F.    Management vs Electronic Data Processing

     1.    Defining Alternatives

               The above sections have discussed utility management
          information needs and the types of data which  address
          those needs.   The types of systems used to record  and
          accumulate the information can be ma..ual  or automated  or
          a combination of both.

          o    Manual Data Processing  is typical for the 15-20
               mgd or less utilities.  Some electronic data
               processing (EDP) may exist for such areas as
               billing, acccounting and budgeting but seldomly is
               EDP available for plant operations and maintenance
               systems.  Most utilities are "Forms" oriented and
               month end reports are prepared by lab technicians,
               maintenance supervisors and operators.

          o    Electronic Data Processing (EDP)  is becoming  more
               popular in utility operations and management.  Some
               utilities utilize EDP to control  purchases, record
               and maintain inventories etc.  The intention  of this
               section is to provide insight into alternatives and
               decisions required when considering EDP.

               Basically, there are two types of EDP a utility can
               consider:

                    Inhouse Computer - where the computer,
                    terminals, printers programs and operators are
                    on the premises supporting management needs.  A
                    further breakdown of choices exists  as well,
                    whether to buy packaged or develop inhouse
                    software (programs).

                    oo   Packaged Software - is  generally available
                         in the marketplace from a variety of
                         vendors and depending on the compatability
                         with the inhouse hardware, (computer,
                         terminals, printers, etc.) may provide  the
                         types of data storage,  manipulation and
                         reporting desired.
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          oo   Developed Software - is available from a
               consultant or specialized firm and is
               "tailor made" to the unique requirements
               of the system user (utility management).
          Service Bureau Support - or a service obtained
          from an outside concern.   The service bureau
          generally picks up and processes utility data
          (batch type processing) or provides the utility
          with a computer terminal  and printer to input
          and output their own data direct to/from the
          computer system (on-line type processing).   In
          either case the utility generally "buys time"
          from the service bureau and avoids capital
          expense for hardware and software purchase  and
          large operating expenses with personnel,
          supplies, insurance, security and related
          items.  Exhibit 40 profiles some advantages and
          disadvantages of service bureau versus in-house
          EDP.

Types of Software

     Regardless of the type of EDP service selected
(inhouse or service bureau), the utility should obtain
basic capabilities or program services (subsystems).   The
following is a list of capabilities currently available:

o    Accounting Applications

          General ledger reflects in summary and in
          detail the financial position and results of
          operations of the utility.

          Encumbrance accounting reflects the obligations
          in the form of purchase orders, contracts or
          commitments which are chargeable to an
          appropriation and for which a part of an
          appropriation is reserved.

          Accounts payable reflects liabilities on open
          account owing for goods and services received
          by the utility.

          Accounts receivable reflects unpaid billing
          from residential, commercial and industrial
          users, as well as outstanding miscellaneous
          billings.

          Equipment records is a historical collection of
          the purchase price, description and cost
          history of wastewater works and equipment.
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                           Advantages and Disadvantages of Service Bureaus vs. In-House Computer
         ALTERNATIVE
      In-house computer
CO
                                                            ADVANTAGES
Direct control over data processing operations
Direct control over implementing system changes
and/or modifications
Direct control over processing schedules
Operating costs are relatively fixed varying
based on the number of applications and re-
lated transaction volumes
Ability to add additional applications at
minimal incremental costs.
                                                                                                       DISADVANTAGES
Requires own EDP staff
Substantial initial cost for
hardware/software aquisition
Increased operating costs for
 -space
 -operating supplies
 -insurance
Recurring annual cost for
hardware maintained and soft-
ware licensing
Average life of hardware/soft-
ware is 5-7 years before it
becomes outmoded
Must develop operations,
security and control procedures
      Service  Bureau
                                          Using hardware/software resources without
                                          significant  initial investment
                                          In-house  EDP staff  not  required
                                          Requires  less management to  control per-
                                          formance
                                          No need to develop  data processing operating
                                          standards, security procedures,  control
                                          procedures
                                                  No  control  over data processing
                                                  operations
                                                  No  control  over implementing
                                                  system changes and modifications
                                                  Little control over production
                                                  schedules
                                                  As  number of applications and/
                                                  or  transactions volumes of
                                                  existing applications  increase
                                                  costs could TDecome prohibitive

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     o    Personnel Applications

               Payroll calculates the utility payroll and
               generates checks and registers and data for
               input to the general ledger.

               Employee Profile provides storage of employee
               related data including date of hire,
               compensation and promotion history and training
               experience.

     o    Utility Management Applications

               Unit Process Tracking collects and stores
               various operating data such as influent and
               effluent volumes, process control  measures,
               removal rates, etc.   It provides the ability to
               report periodically by unit process and
               presents comparative trend analysis and related
               management reports.

               Purchasing and Inventory is a purchase order
               driven inventory management system with
               standard parts listing of present and
               historical  volumes and values, reorder points,
               etc.  This application would include purchase
               order status tracking and provide accounting
               data as required.

3.   The Selection Process and System Development

          The evaluation of manual  versus electronic data
     processing is a complex task.   The basis for selection is
     a cost/benefit analysis of operating either system.   This
     analysis is conducted based on the following two
     criteria:

     o    What is the alternative's ability to satisfy user
          management information requirements?
     o    What alternative satisfies the most user
          requirements for the least cost or most benefits?

          As the following paragraphs explain, the
     cost/benefit analysis is very  complex and it is suggested
     a third party (external  to the potential  hardware,
     software vendor and the utility)  be contacted to assist
     in the  many and varied technical  areas.
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      In order to obtain the proper data to perform a
 cost/benefit analysis (as indicated in Exhibit 41), a
 series of steps must be performed; these steps are called
 System Development.

 STEP I:  Define Requirements - The analysis of the
 present system and identification  of new system
 requirements.   This  step includes:

 o    Identification  of system objectives (provide  timely
      accurate  management information);
 o    Definition of analytical  benefits  (labor  savings,
      automation of user charge billing);
 o    Identification  of major source records; inputs and
      reports;  outputs (equipment records fixed asset
      inventory);  and
 o    Description  of  available  hardware  and  software to
      satisfy system  requirements (printers,  terminals,
      central processing).

 STEP II:   Review  Available  Resources  -  Consideration of
 in-house  or  service  bureau.  Major areas to  review
 include:

 o    Sophistication  of utility's data processing
      facilities information  requirements;
 o    Availability of financial  and  personnel resources;
      and
 o    Degree  of existing  computerization.

 STEP  III:  Prepare and Transmit Request  for Proposal
 TRFP)  - This would be  conducted if  the utility had  little
 or no  available computer resources  or if the utility was
 not  able  to  satisfy  the  information requirements as
 defined in Step I with the resources as  outlined in Step
 II.  The  RFP is a tool to solicit proposals from vendors
 for  products to meet the system requirements.  Major
 elements of the RFP are  listed  in Exhibit 42.

 STEP IV:  Define Manual System Cost - Current or proposed
 manual system cost must be identified to provide a
 "benchmark" or comparative cost for analysis.  These cost
 include:

 o    Manpower cost,
o    Equipment cost,
o    Forms cost, and
o    Storage space cost.
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                                                                          EXHIBIT 41
                              COST/BENEFIT ANALYSIS

              Manual vs.  Alternatives of Electronic Data Processing
                                        1982
1983
1984 	198x
EDP Costs:

   Development (start-up)

     Third Party

     Equipment (hardware)

     Other One-Time Costs


   Recurring Costs:

     Personnel

     Supplies

     Fees, etc.


     Total Costs

     Cumulative Total Costs


Manual Cost Savings or Benefits;*

     Personnel

     Rental/Service Bureau Charges

     Sale of Obsoleted Equipment
     Operating Savings

     Total Benefits/Savings

     Cumulative Benefits/Savings


   Discounted Cumulative Costs

   Discounted Cumulative Savings


Net Cumulative Discounted Savings


   *from  improved management information
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                                                                           EXHIBIT 42
                           RFP:  Vendor Proposal Contents


  1.   Hardware description with complete specifications.

  2.   Detailed description of operating system, utility programs, and supported
       programming languages

  3.   Complete pricing - monthly and yearly costs

            Recurring  costs
            Onetime costs

  4.   Growth capabilities of the proposed system


  5.   Vendor services

            Field engineering
            Systems engineering

  6.   References

            Number of systems installed nationally,  locally,  locally within
            your industry
            Three specific local  references  which  can be interviewed

  7.   Description of the installation methodology  the  vendor would  use  to  install
       the new system

            Proposed  delivery time
            Software  development  if required
            Installation  and  conversion assistance

  8.    Software  Development

            Estimated programming costs
            Development time
            If program packages are  to  be used, what is the flexibility of
            modifying and  tailoring  the  programs?
            How  easily can the programs  be upgraded and enhanced as  requirements
            change?

  9.    Personnel and  training requirements

            Proposed  education plan
            Where are  facilities located?
            Assistance in obtaining qualified personnel

10.   Description of  testing and backup facilities

11.   Manufacturer balance sheet

12.   Sign-off, acceptance procedures

13.   Contractual relationships
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 Consider  not only first year expenses, but project the
 cost over a 5  - 7 year time frame.

 STEP V:   Vendor Proposal Evaluation - The selection of a
 vendor is based upon a comprehensive evaluation of the
 information contained in the vendor's proposal, the
 ability to demonstrate hardware and software (when
 appropriate),  and the information obtained from reference
 checks of present users.

     The  following paragraphs contain guidelines for
 conducting this step of computer evaluation and
 selection.

 o    Initial Proposal Review

          The  objectives of the initial proposal review
     are  to determine the degree of compliance with RFP
     instructions, identify missing items of information
     and  to determine the scope of proposed hardware and
     software  configuration in terms of size, potential
     implementation problems and costs.  Review each
     proposal   to determine the scope of the hardware and
     software  configuration proposed.   Eliminate from
     further consideration those vendors who have made an
     unreasonable offer compared to the other offers
     received.

o    Vendor Elimination

          Comprehensive evaluation of vendor is a
     laborious and complex process.   The preceeding
     paragraphs described some techniques for eliminating
     vendors from further consideration.   Additional
     vendors may be eliminated because they cannot meet
     the essential  requirements described in the RFP.

o    Demonstrations

          Vendor demonstrations can  provide valuable
     input to  the review process because they allow the
     evaluators to observe whether or  not a proposed
     feature or capability works as  described in the
     vendor's  proposal.   The following guidelines may  be
     helpful:

          Select the  features  and  capabilities  to be
          demonstrated  based upon  the  contents  of the
          vendors  proposal;
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          Communicate the requirements for a
          demonstration to the vendor in writing to avoid
          misunderstanding;

          Document the expected demonstration results
          prior to the demonstration; and
          Observe the demonstration and document the
          results.

STEP VI:  Define Automated System Costs - A comprehensive
cost analysis for each qualified vendor must be
conducted.  In evaluating the vendors consider both
initial and operating cost for a period of 5 - 7 years as
indicated below:

o    Initial Costs

          Purchase price for hardware and software,
          Supplies,
          Freight,
          Site planning and preparation,
          Training, and
          Field engineering cost to install.

o    Operating Costs

          Personnel (the number of individuals required
          to operate the system may vary for each
          configuration),

          Forms,

          Hardware maintenance,

          Software maintenance, and

          Hardware components (terminals, disk storage,
          etc.).

STEP VII:  Manual Versus Automated System Cost Analysis

     Exhibit 41 illustrates the system selection decision
based on cost of manual versus electronic data
processing.  The 5 - 7 year cost projection should be
discounted or reduced by a reasonable rate of interest
over time to bring all data to present day value.  The
alternative which meets the most requirements for the
least cost should be selected.
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STEP VIII:  Bring Development to Closure

     If a manual system is selected, an implementation
team should be developed.  If an electronic data
processing solution is selected, it is advisable to
retain the services of an experienced management
consultant.

     Listed below are considerations for use in assessing
contract terms between a computer vendor and yourself:

o    Avoid artificial  deadlines in developing schedules;
o    Identify practical due dates where possible;
o    Designate and delegate implementation
     responsibilities;
o    Define, to the extent possible, specific
     deliyerables and when they are due;
o    Specify acceptance criteria and/or conditions under
     which testing occurs;
o    Require all representations to be in writing;
o    Define specific warrantee terms and durations of
     coverages;
o    Specify default conditions and their results;
     Define and agree upon limitations of liability
     and/or recourse;
o    Identify required/available training and other
     related support;
o    Identify the nature and  schedule for delivery of
     documentation;  and
o    Be sure to include both  hardware and software cost
     and provide, if possible, hardware buy-back terms.

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