Meeting Details

COURSE INFORMATION

Course Description: Net utility plant in service is critical to an electric utility. It is the cornerstone of the rate base and is one of the main driving factors for how the Cooperative is financed through both equity and long-term debt. How costs are capitalized and how plant is depreciated will impact the Cooperative’s rate base but also equity through the net margins. The key to understanding the primary asset owned and operated by an electric cooperative is to understand the work order and overall plant accounting system – from establishing a work order, to using clearing accounts for capitalizing and expensing associated costs, to closing out work orders, to creating continuing property records, to depreciating the assets and finally, to retiring the assets. This course is, therefore, designed to provide this detailed level of understanding of the entire work order and plant accounting process, how to know the processes are functioning properly and how to address special problem areas.

Participants learn to:
• Understand and recognize the unique elements of the overall plant accounting and depreciation system
• Understand the complete work order process, including cost determination, record updates, capitalization, plant retirements, and their financial impacts.
• Have a more detailed understanding of the purpose of depreciation, the depreciation rates used and impact of using rates that may be too long or too short
• Know how to identify and correct problems in the work order plant accounting system.

Instructors: TBD, CPA, Audit Partner Bolinger, Segars, Gilbert & Moss LLP

TOPICS TO BE COVERED:

The course will include detailed discussions of the following:
• Overall purpose of work order accounting
• RUS/FERC requirements
• Clearing Accounts – Determining includible costs (direct and indirect) and how costs are spread among general ledger accounts and to specific work orders
• Record Units and Continuing Property Records
• Special areas, such as construction contracts, special equipment, and general plant
• Learn how to record utility plant retirements and the differing gain/loss treatments for transmission, distribution, and general plant
• Knowing when the work order system is not functioning properly
• Early retirement of meters, including the potential for recognition of a loss due to retirement or the acceleration of the annual depreciation rate
• Storm damage cost accounting

Who should attend:
Any cooperative personnel who have a part in the utility plant construction and retirement processes.

Continuing Professional Education Credits
This course is eligible for 7 credits (based on a 50 minute credit hour). Upon request and completion of the entire course, TEC will provide a certificate of completion to participants that may be used to apply for CEUs/CPEs. Registration with the board does not constitute an endorsement by the board as to the quality of the CPE program. There are no prerequisites.