Advanced Topics in Utility Accounting
This course covers in more detail some of the topics in the fundamentals course, including work order systems, financial statement accounting, financial planning, cost of service and rate design, activity-based accounting, capital credits, investment strategies, debt portfolio management, internal control procedures, and other similar topics.
Analyzing the Accounts Receivable

This course is designed to provide participants with a clear and concise understanding of accounts receivable for both residential and business customers. The session will follow the accounts receivable transaction from beginning to end, including tips on analyzing and reconciling this account. Participants will review example bills, learn the basics of how they are created and what drives the amounts billed to the member. Internal control issues will be discussed as well as potential fraud hot spots. Participants will gain an understanding of:

  • Service order and connection
  • Bill components
  • Account categories
  • Basic rate design
  • G/L accounts
  • Billing entries
  • Internal controls
  • Revenue analysis
Budgeting and Financial Analysis
This course covers the procedures necessary to prepare annual capital and expense budgets for utilities. The concepts of zero-based budgeting, activity-based budgeting, and extrapolation budgeting will be discussed. For the capital budgeting, commonly used methods to evaluate alternative capital projects will be discussed including present-value (worth) analysis, discounted cash flow, annual cost, payback periods, and cost-benefit ratios. In the expense budget, the use of operating ratios, such as the quick ratio, plant-revenue ratio, equity, TIER and DSC will also be discussed. Actual capital and expense budgets will be utilized in the course and budget spreadsheets will be given to attendees.
Developing a Long-Range Financial Forecast
Financial planning includes both short-range and long-range financial forecasts. Short-range planning is five (5) years or less while long-range forecasts typically cover a ten (10) year period. Financial planning involves the establishment of basic financial goals such as TIER, DSC, equity level, general funds targets, and capitalization rates. Once the base cases are determined, sensitivity cases are run to determine the effects of changing certain key assumptions, such as increasing or decreasing interest rates, TIER, DSC or equity requirements, loss of significant consumers or sales, increases in wholesale power cost, refinancing of long-term debt, increasing/decreasing rates, and establishing subsidiary business units.
Developing Innovative Rates and Pricing
This class goes beyond traditional ratemaking theory to include rate concepts that will be utilized in a deregulated electric market. The rate concepts covered in this course include marginal, incremental, time-of-use, stand-by, and interruptible rates. Other topics include market-based rates versus cost-based rates, stratified rates, short-term rates, firm versus non-firm rates, indexed rates, price hedging strategies, and other similar topics.
Financial Audits: "What They Are And What They Aren't"
This one-day course is designed to provide general managers, directors, and employees in non-financial roles, with an overview of the audit process. The course will seek to help answer: what role do auditors play, what is a financial audit, why do businesses need an audit, who can perform audits, what are the guidelines that must be followed, and who gets the audit report and what are they supposed to do with it. This course is a must for anyone in a management capacity or interested in learning more about the auditing process.
Fraud Prevention: The Key to Saving Your Company Money

This one-day class is designed principally for Accountants of all levels as well as those in Management. The focus of the class will concern a review of common types of fraud, their increased occurrence, an understanding of the prevalence of fraud, and how organizations are responding to this problem. The class will include a discussion of fraud deterrence methods, including techniques to strengthen internal controls to prevent fraud as well as steps and processes used in detecting fraud. Participants will be exposed to the use of various internal control items such as COSO as well as how to investigate internal fraud, and the use of various interviewing techniques. Participants in this program will gain useful insight into:

  • The high cost of fraud
  • Various methodologies for detecting and preventing fraud
  • How to distinguish between perpetrators and the victims
  • Understanding the characteristics and demographics of those who commit fraud
  • Preventing fraud and understanding how to develop a successful fraud prevention program

 
Fundamentals of Utility Accounting
This course covers the fundamentals of utility accounting for new utility accountants and those involved in related jobs that have need to understand how accounting affects other aspects of the business. This course will cover the basics of electric utility operations and terminology, and will cover the following accounting topics: using a prescribed uniform system of accounts, cash versus accrual accounting, work order systems for capitalizing self-constructed plant, the general ledger and subsidiary ledgers, the four accounting cycles (revenue, collections, disbursements, and payroll).
The Emerging Role of the Controller


The ever-changing financial picture of our economy requires individuals in chief financial roles to be more diligent than ever in performing their jobs. This one-day program is designed to provide individuals with the information, skills, and background needed to carry out their jobs more effectively. The course will cover the functions of a controller as well as the importance of interdepartmental relationships and their role in management. Participants will gain insight into the role of planning for sound financial success, how to forecast cash needs, controlling and administering operating budgets, how to establish effective reporting systems, and some of the latest financial computer applications. This course will provide you with:

  • An understanding of the role played in corporate decision making
  • How to overcome varied obstacles in preparing reports and making effective presentations
  • How to avoid the "number" game and instead provide financial insight through predicting trends, etc
  • Skills for motivating your staff and others
  • The skills for maintaining your department in a positive position with management
The Non-Financial Manager's Guide to Utility Financing
This two-day course is designed for managers with little or no financial training or background. The course will present an overview of basic financial management practices for electric utilities, development and administration of operating budgets, planning and financing capital investments, and various aspects of financial reporting.
The Why and How of Work Order Accounting
This one day class delves into the purpose behind work order accounting and its use and accounting authority. The course will cover the initiation of the work orders, accumulating work-in-process, contribution-in-aide of construction, as well as retirements and contracts. Participants will learn about such expenditures as: materials, labor, transportation, and overhead. In addition, the course will provide valuable information on work order close out, unitization, and continuing property records.
Understanding the Ins and Outs of Utility Mergers and Acquisitions

There is an Increasing amount of interest in mergers and acquisitions among utilities across the country. In order to fully understand the impact such a move would have on a utility, it is important to have insight into the benefits to be gained by merging two or more utilities into one utility. This session will look at the advantages of improved efficiency and economies of scale afforded by creating a large business and will include areas of importance in evaluating whether such a move is warranted: staffing, wholesale power contracts, capitalization, rate structures, long-range financial forecasts, operational analysis, and related matters. Also touched upon will be alternatives such as jointly-owned service companies and shared management. This session is an outgrowth of consulting work conducted by Jackson Thornton.