General Accounting

Harmony in Allocating Inter-Departmental Power and Utilities Costs with the Three-Point Formula
FERC | RUS Accounting, Cost of Service and Rates Russ Hissom, CPA FERC | RUS Accounting, Cost of Service and Rates Russ Hissom, CPA

Harmony in Allocating Inter-Departmental Power and Utilities Costs with the Three-Point Formula

Here is the Three-point formula! This article will discuss how using a cost allocation method based strictly on math, and metrics can smooth budget discussions and bring equitable allocations to your business units (doesn't sound exciting, but you'll be glad you read on). Here is the Three-point formula!

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Locked into a Municipal Chart of Accounts, an Electric Utility Needed Some Changes to Make it Work for Financial Management
FERC Accounting, Case Studies Russ Hissom, CPA FERC Accounting, Case Studies Russ Hissom, CPA

Locked into a Municipal Chart of Accounts, an Electric Utility Needed Some Changes to Make it Work for Financial Management

Utilities find that the standard chart of accounts for a municipal general fund doesn’t meet their needs. General fund accounting is based on a flow of funds basis, while utilities use the accrual basis of accounting like a private sector business. The general fund chart of accounts is not a good fit.

Here is one utility’s approach to making the municipal chart of accounts string usable to meet the utility’s reporting and management needs.

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