Accounting Advisory
Accounting standards, information technology changes, and business process inefficiencies add complexity to your business. We draw on our industry experience to provide practical solutions for accounting and business processes.
We provide expertise to clients in these accounting advisory areas:
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If your co-op or utility finds itself in transition or evaluating outsourcing its finance functions, we provide interim or full-time outsourced Controller or CFO services.
Our team will provide an experienced expert in the power and utilities business and many financial software platforms, who will seamlessly transition into maintaining your organization’s general ledger, reconciliations, financial reporting, and provide financial management support to your oversight Board.
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The FERC and RUS Uniform System of Accounts and NARUC accounts for water and wastewater utilities can require interpretations for recording transactions, ultimately impacting cost of service and rate studies.
We use our experience working with power and utilities organizations across the US to recommend accounting for decommissioning, regulatory deferrals, revenue recognition, decoupling, and other complex transactions.
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FASB and GASB accounting standards may not always “fit” the power and utilities accounting model.
We work with your team to determine the proper accounting for transactions and build an accounting bridge when needed between FERC, RUS, NARUC, FASB, and GASB to make sure the recording of transactions meets the transaction’s intent.
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If your utility is considering switching to the FERC Uniform System of Accounts, the process has many moving parts. Key considerations include software issues, historical reporting, business processes, and team training.
Our experience in helping utilities transition to the FERC Uniform System of Accounts allows us to work as your partner in developing a roadmap for the transition, with evaluations done during the project to identify mid-project course corrections.
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Utility plant in service is the foundation of financial reporting, cost of service studies and designing rates for customers. Ineffective or inefficient work order processes lead to incorrect asset valuations, missing asset retirements, and under-funding project costs through bond issues.
We will analyze your work order processes, provide recommendations for changes, and work with you to develop a timeline and milestones for effective changes. Training your team in new processes is also addressed to ensure that anticipated benefits are realized.
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We have worked with utilities to move their historical fixed asset records to a new software platform. The move is an opportune time to evaluate work order operational and accounting processes and consolidate historical data records to verify system assets.
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East coast utility - We analyzed the processes in the utility's work order area, made recommendations for improvements, and assisted them in incorporating new processes in the implementation of a new ERP.
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A Midwest cooperative wished to expand its broadband services in a competitive market. We evaluated the competitive cost structure of broadband services and made recommendations for pricing and marketing of managed network services. We also evaluated business processes and marketing approaches, making recommendations for efficiencies and greater outreach.
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Midwest electric utility - We provided an opinion on accounting for power plant decommissioning costs to include these costs in electric rates.
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California municipal electric utilities - We prepared a cost model for two utilities to evaluate joint costs for outsourced electric distribution maintenance as an aid in their contract negotiations.
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California municipal electric utility - We assisted the utility with implementing the FERC Uniform System of Accounts to help them manage their electric business and set customer rates using industry standards.
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Recent accounting advisory projects include providing insights on FERC treatment of software subscription costs in utility rates and FERC treatment of warranty costs for transmission poles in utility rates.