HomeMy WebLinkAbout20160823AVU to Staff 95 Attachment A.pdf
BUDGET MANUAL
2016
Staff_PR_095 Attachment A Page 1 of 36
Last Updated: September 2015
Staff_PR_095 Attachment A Page 2 of 36
TABLE OF CONTENTS
SUMMARY OF KEY BUDGET ASSUMPTIONS .... 5
BUDGET ASSUMPTIONS ................................................................................. 5
MULTI-YEAR BUDGET PROCEDURE: ........................................................ 6
2014 BUDGET KEY DATES .............................................................................. 7
BUDGET CONTACT BY ORGANIZATION .................................................. 8
NON-CAPITAL BUDGET ................................ 13
OVERVIEW ........................................................................................................13
Non-Capital Terminology ..................................................................................................... 13
Non-Capital Budget Elements............................................................................................... 14
Credit Policy (Centralized) ................................................................................................... 14
Centralization of Direct Charges Table ............................................................................... 16
Centralization of Loadings Table ......................................................................................... 16
Expenditure Type .................................................................................................................. 16
Spread Code .......................................................................................................................... 17
Expenditure Categories ........................................................................................................ 17
Labor Loadings (Centralized)............................................................................................... 17
Labor Information ................................................................................................................. 18
MAC (Master Activity Code) Table ...................................................................................... 18
FERC Non-Capital Account List .......................................................................................... 22
EXPENSE ............................................................................................................24
Charitable Donations and Corporate Donations ................................................................. 24
Sponsorships ......................................................................................................................... 24
In-Kind Contributions ........................................................................................................... 24
Corporate Dues ..................................................................................................................... 24
Other Dues ............................................................................................................................ 24
General Services (Centralized) ............................................................................................. 25
Information Services/Information Technology (Centralized) ............................................... 25
Material and Stores Loading (Centralized) .......................................................................... 25
Payroll Accrual (Centralized) ............................................................................................... 25
Postage, Couriers & Express Mail (Centralized) ................................................................. 25
Real Estate (Centralized) ...................................................................................................... 26
Small Tools Loading (Centralized) ....................................................................................... 26
Telecommunications (Centralized) ....................................................................................... 26
Training................................................................................................................................. 26
Travel Expense ...................................................................................................................... 26
CLEARING/OVERHEAD/BILLING ..............................................................28
Construction Overheads ....................................................................................................... 28
Facilities (Centralized) ......................................................................................................... 28
Materials ............................................................................................................................... 28
Miscellaneous Deferred Debits (Account 186200) ............................................................... 28
Miscellaneous Billings .......................................................................................................... 28
Incidental Revenues .............................................................................................................. 29
Spokane River Implementation ............................................................................................. 29
Protection, Mitigation, and Enhancements (PM&E) ........................................................... 29
Small Tools............................................................................................................................ 29
Staff_PR_095 Attachment A Page 3 of 36
Non-Billable Subsidiary Support .......................................................................................... 30
Transportation ...................................................................................................................... 30
Vehicle Classes ..................................................................................................................... 31
Transportation Allocation (Centralized) .............................................................................. 31
CAPITAL BUDGET ........................................ 32
Capital Budget Terminology ................................................................................................. 32
ER-BI-Capital Project Request Flowchart ........................................................................... 33
Categories Codes Table ........................................................................................................ 33
Capital FERC Functional Accounts ..................................................................................... 33
AFUDC ................................................................................................................................. 34
CAPITAL CONSTRUCTION ERS ..................................................................34
Electric and Gas Meter Installations .................................................................................... 34
PCB Capital Costs ................................................................................................................ 34
Preliminary Survey and Investigation (PS&I) ...................................................................... 35
Protection, Mitigation & Enhancements (PM&E) ............................................................... 35
NON-CONSTRUCTION ERS ..........................................................................35
TechnologyERs ..................................................................................................................... 35
Facilities ERs ........................................................................................................................ 35
Capital Tools & Testing Equipment and Stores Equipment ERs .......................................... 35
7000 – Transportation .......................................................................................................... 36
Staff_PR_095 Attachment A Page 4 of 36
SUMMARY OF KEY BUDGET ASSUMPTIONS
BUDGET ASSUMPTIONS
Capital Budget: We are targeting approximately a $375 million capital budget for 2016 and $405 million
capital budget each year for 2017-2019.
AFUDC: 7.29%
Sales tax: 8.7% for Spokane, 8.7% for Spokane Public Transportation Benefit Area (PTBA), 8.1% for
unincorporated Spokane County, 6% for all Idaho counties. Please visit the Sales & Use Tax memo posting in the
Tax Info folder on the Outlook Bulletin Boards for specific tax rates.
Construction overhead rates by function for 2016 are estimated to be (please note: Administration & Accounting
rate will be added to the all other rates for a combined loading in the Budget application):
Materials Loading will be 10.0% for the 2016 budget cycle.
Labor Loadings
Benefits loading 60.18%
Payroll Tax loading 8.25%
Incentive N.U. 12.00%
Incentive Union 1.50%
One Leave loading 16.50%
Composite rate 65.51%
Salary and Wage Increase
Bargaining Unit: increase in April
Non-Bargaining Unit: increase in March
Merit increase Full Year Merit increase Full Year
2016 3.0% 2.25% 3.0% 2.5%
2017 3.0% 2.25% 3.0% 2.5%
2018 3.0% 2.25% 3.0% 2.5%
Travel Information
Mileage rate 56.0 cents per mile
Company airplane incremental cost $45/minute
Staff_PR_095 Attachment A Page 5 of 36
MULTI-YEAR BUDGET PROCEDURE:
When entering multiple year budgets some of our more experienced Budgeteers have found the following
procedure to work best to keep the budget year data straight.
CAPITAL:
Enter all of 2016 Capital Projects
Roll your ongoing ERs - BIs to 2017 and enter all of your 2017 Capital Projects
Roll your ongoing ERs - BIs to 2018 and enter all of your 2018 Capital Projects
Enter Long Range (2019 and 2020) Budgets and Transfers
NON-CAPITAL:
Update your Organization’s 2016 Labor Management
Enter your Organization’s 2016 Non-Capital Budget
Roll your Organization’s Labor Management to 2017
Roll your Organization’s Non-Capital Budget to 2017
Update your Organization’s 2017 Labor Management
Enter your Organization’s 2017 Non-Capital Budget
Roll your Organization’s Labor Management to 2018
Roll your Organization’s Non-Capital Budget to 2018
Update your Organization’s 2018 Labor Management
Enter your Organization’s 2018 Non-Capital Budget
Currently we are not requiring 2019 and 2020 Non-Capital Budgets to be entered
Staff_PR_095 Attachment A Page 6 of 36
2016 BUDGET KEY DATES
Tentative
2015 Date Description
Early Sep Budget Manual posted to Web
Capital Business Cases reviewed, updated and new cases prepared
Capital Business Cases will be Validated, Scored & Ranked
CPG Reviews Capital Business Cases and Make Funding Decisions
Early Sep Budget Training Sessions for Capital and Non Capital
O&M Budget Memo and Allocation
Early Sep Budget System Open for Capital entry for all years 2016-2020
Non-Capital Budget entry 2016-2018 (Approve capital labor requests by 9/21)
Oct 8 Capital Budget Due – all years
Early Oct Capital Audit Process
Non-Capital Budget Due (for 2016-2018)
Non-Capital Audit Process Completed
Nov 12 Finance Committee approval of Capital Budget
BUDGET APPLICATION CONTACTS:
Primary Budget Application Contacts
Tia Benjamin Ext. 2225 – Capital & Non-Capital
Rosemary Coulson Ext. 2036 - Non-Capital
Other available assistance
Frank Johnson Ext. 8768
Margie Stevens Ext. 8978
Staff_PR_095 Attachment A Page 7 of 36
BUDGET CONTACT BY ORGANIZATION
ORG ORG Name Budget Contact
A01 Native American Relations Resource Accounting
A02 HRIS/Payroll Financial Planning & Analysis
A04 Environmental Affairs Heide Evans Ext. 4993 or Resource Accounting
A07 Production & Generation Neil Thorson Ext. 4776 or Resource Accounting
A08 Relay & Protection Design Steve Carrozzo Ext. 2985
A09 IS/IT Shared Services David Plut Ext. 4177
A50 Director of Ops Wa & Id Julie Lee Ext. 4356
A52 Service Dev and Marketing Financial Planning & Analysis
A56 System Operations Steve Carrozzo Ext. 2985
A57 Energy Del Utility Accounting Amy Parsons Ext. 2080
A81 Medford Construction Neil Thorson Ext. 4776
A82 Roseburg Neil Thorson Ext. 4776
A83 Klamath Falls Neil Thorson Ext. 4776
B02 Benefits Financial Planning & Analysis
B04 Clark Fork License Heide Evans Ext. 4993 or Resource Accounting
B08 Business Process Improvement Julie Lee Ext. 4356
B09 Telecommunications Shop David Plut Ext. 4177
B16 Government Relations Steve Carrozzo Ext. 2985
B50 Spokane Electric Julie Lee Ext. 4356
B51 Gas Engineering Neil Thorson Ext. 4776
B52 Gas Engr Cathodic Protection Neil Thorson Ext. 4776
B53 Pullman Julie Lee Ext. 4356
B54 Gas Compliance Neil Thorson Ext. 4776
B56 Misc Transmission Expense Steve Carrozzo Ext. 2985
C02 Employee Engagement Financial Planning & Analysis
C04 Spokane River License Heide Evans Ext. 4993 or Resource Accounting
C06 Joint Project - CS2 Resource Accounting
C07 Hydro Spokane River Neil Thorson Ext. 4776
C08 Engineering Technical Services Steve Carrozzo Ext. 2985
C09 Security Systems David Plut Ext. 4177
C50 Contact Center Spokane-Hiring & Training Steve Carrozzo Ext. 2985
C51 Electric Distribution Design Steve Carrozzo Ext. 2985
C53 Coeur d'Alene Gas Neil Thorson Ext. 4776
C54 Tax Services Financial Planning & Analysis
C56 System Planning Steve Carrozzo Ext. 2985
C57 Spokane Electric Network Steve Carrozzo Ext. 2985
C83 LaGrande Neil Thorson Ext. 4776
D02 SR VP HR and Corp. Services Financial Planning & Analysis
D08 Energy Del General Mgr Laura Vickers Ext. 2904
D09 SCADA Steve Carrozzo Ext. 2985
Staff_PR_095 Attachment A Page 8 of 36
ORG ORG Name Budget Contact
D50 Meter Reading/Billing Steve Carrozzo Ext. 2985
D51 Vegetation Mgmt Julie Lee Ext. 4356
D52 DSM Policy, Planning and Analysis Mark Baker Ext. 4864 or Neil Thorson Ext. 4776
D53 Clarkston Julie Lee Ext. 4356
D54 Corp & Subsidiary Accounting Adam Munson Ext. 2471
D55 Natural Gas Resources Resource Accounting
D56 Director Transmission Steve Carrozzo Ext. 2985
E01 Executive Administration Financial Planning & Analysis
E02 Corp Organizational Development Financial Planning & Analysis
E07 Generation Engineers Neil Thorson Ext. 4776
E09 Distributed Systems David Plut Ext. 4177
E14 Environmental Compliance Heide Evans Ext. 4993 or Resource Accounting
E50 Contact Center-Spokane Steve Carrozzo Ext. 2985
E51 Asset Management Steve Carrozzo Ext. 2985
E52 Oregon DSM Neil Thorson Ext. 4776
E53 Contact Center-Lewiston Steve Carrozzo Ext. 2985
E54 Accounts Payable Financial Planning & Analysis
E55 Power Supply Resource Accounting
E56 Transmission Services Steve Carrozzo Ext. 2985
F08 Substation Support Neil Thorson Ext. 4776
F50 Contact Center-Credit & Collections Steve Carrozzo Ext. 2985
F52 Energy Solutions Financial Planning & Analysis
F53 AM Lewiston/Clarkston Financial Planning & Analysis
F54 Treasury & Trust Mngmt Serv Financial Planning & Analysis
F55 Financial Planning & Analysis Financial Planning & Analysis
G01 Officer Support Team Financial Planning & Analysis
G02 Employee Safety Financial Planning & Analysis
G08 Director Gas Neil Thorson Ext. 4776
G10 Credit Union Financial Planning & Analysis
G50 Colville Julie Lee Ext. 4356
G51 Dir of Natural Gas Neil Thorson Ext. 4776
G53 AM Coeur d'Alene Financial Planning & Analysis
G54 Finance Administration Financial Planning & Analysis
H02 Occupational Health Financial Planning & Analysis
H04 Hydro Compliance Heide Evans Ext. 4993 or Resource Accounting
H07 Facilities Management Julie Lee Ext. 4356
H08 Energy Del Strategic Projects Julie Lee Ext. 4356
H14 Community Affairs Financial Planning & Analysis
H50 Othello Julie Lee Ext. 4356
H51 Supply Chain Julie Lee Ext. 4356
H53 Kellogg/St Maries Julie Lee Ext. 4356
Staff_PR_095 Attachment A Page 9 of 36
ORG ORG Name Budget Contact
H54 Remittance Services Financial Planning & Analysis
I02 Craft Training Financial Planning & Analysis
I08 Energy Del Ops Support Neil Thorson Ext. 4776
I50 Contact Center IT Steve Carrozzo Ext. 2985
I54 Taxes Other Than Income Financial Planning & Analysis
J01 Executive VP & CFO Financial Planning & Analysis
J02 Public Safety Financial Planning & Analysis
J06 Joint Project-Jackson Prairie Resource Accounting
J08 Gas Construction Quality Control Neil Thorson Ext. 4776
J09 Network Systems David Plut Ext. 4177
J50 Business and Public Affairs Financial Planning & Analysis
J51 Warehousing Julie Lee Ext 4356
J53 Sandpoint/Bonners Ferry Julie Lee Ext. 4356
J54 Internal Auditing Financial Planning & Analysis
K02 Compensation Financial Planning & Analysis
K07 Kettle Falls Neil Thorson Ext. 4776
K08 GIS Editing Steve Carrozzo Ext. 2985
K51 Fleet Management Julie Lee Ext. 4356
K53 Contact Center-CDA Steve Carrozzo Ext. 2985
L02 Smart Grid Workforce Training Financial Planning & Analysis
L07 Hydro Clark Fork River Neil Thorson Ext. 4776
L08 Transmission Design Steve Carrozzo Ext. 2985
L50 Spokane Gas Neil Thorson Ext. 4776
L51 Claims Financial Planning & Analysis
L52 Claims Accrual Financial Planning & Analysis
L53 Coeur d'Alene Julie Lee Ext. 4356
L54 Travel & Flight Operations Julie Lee Ext 4356
M07 Generation Shop Neil Thorson Ext. 4776
M08 Substation Design Steve Carrozzo Ext. 2985
M09 Central Systems David Plut Ext. 4177
M50 Deer Park Julie Lee Ext. 4356
M51 Test & Treat Julie Lee Ext. 4356
M53 AM Spokane Financial Planning & Analysis
M54 Chief Strategy Officer Financial Planning & Analysis
N06 Joint Project-Colstrip Resource Accounting
N08 Drafting & Survey Steve Carrozzo Ext. 2985
N09 IS/IT Administration David Plut Ext. 4177
N50 Dir of Customer Service Steve Carrozzo Ext. 2985
N51 Write Off Accrual Resource Accounting
N52 CSS Replacement Project Laura Vickers Ext. 2904
P01 Legal Expenses Financial Planning & Analysis
Staff_PR_095 Attachment A Page 10 of 36
ORG ORG Name Budget Contact
P07 Contract Construction Neil Thorson Ext. 4776
P08 Distribution Operation Sys Mgmt Steve Carrozzo Ext. 2985
P09 Infrastructure Technology David Plut Ext. 4177
P50 Davenport Julie Lee Ext. 4356
P51 Distribution Dispatch Steve Carrozzo Ext. 2985
P53 AM Moscow/Pullman Financial Planning & Analysis
R09 Communication Systems David Plut Ext. 4177
R11 Rates & Regulations Financial Planning & Analysis
R51 Joint Use Prj - Distribution Steve Carrozzo Ext. 2985
R54 Risk Management Financial Planning & Analysis
R55 Resource Risk Management Financial Planning & Analysis
R56 Insurance Management Financial Planning & Analysis
S01 VP & Counsel Reg/Govt Affairs Financial Planning & Analysis
S04 SPS CYOC Mgmt Oversight Resource Accounting
S08 Strategic Projects Development Julie Lee Ext. 4356
S20 Director of Finance Financial Planning & Analysis
S50 Construction Services Steve Carrozzo Ext. 2985
S51 Supply Chain Loadings Steve Carrozzo Ext. 2985
S54 Corporate Communications Financial Planning & Analysis
T01 President & COO Avista Corp Financial Planning & Analysis
T08 Electrical Engineering Steve Carrozzo Ext. 2985
T51 Operations Project Management Julie Lee Ext. 4356
T52 Demand Side Management Jennifer Smith Ext 2098
U01 Legal Staff Financial Planning & Analysis
U50 Limited Income Financial Planning & Analysis
V01 Sr VP & General Counsel Financial Planning & Analysis
V08 Real Estate Financial Planning & Analysis
V50 AM Oregon Financial Planning & Analysis
W01 Compliance Financial Planning & Analysis
W07 Wind Generation Neil Thorson Ext. 4776
W09 IS/IT Application Support David Plut Ext. 4177
W54 Finance Responsibility Financial Planning & Analysis
W55 Wholesale Exposure Reserve Resource Accounting
X01 CEO Financial Planning & Analysis
X02 HR/Comp/Labor&Emp Relations Financial Planning & Analysis
X08 Substation - Relay Shop Neil Thorson Ext. 4776
X54 Accounting Responsibility Adam Munson Ext. 2471
X55 Misc Deferrals Resource Accounting
X57 Energy Del Acctng Responsibilities Amy Parsons Ext. 2080
Y01 Corporate Secretary Financial Planning & Analysis
Y54 Strategic Corp Development Financial Planning & Analysis
Staff_PR_095 Attachment A Page 11 of 36
ORG ORG Name Budget Contact
Y55 Resource Accounting Resource Accounting
Z08 Electric Meter Shop Steve Carrozzo Ext. 2985
Z09 Postage Centralization Neil Thorson Ext. 4776
Z57 Centralized Credits Amy Parsons Ext. 2080
Z87 Benefits Loaders Adam Munson Ext. 2471
Z88 Transportation Loaders Steve Carrozzo Ext. 2985
Z89 Payroll Accrual Adam Munson Ext. 2471
Z90 Incentive Compensation Adam Munson Ext. 2471
Z91 Other One Leave Adam Munson Ext. 2471
For help with Resource Accounting, contact: Carolyn Groome Ext. 4574
Keri Meister Ext. 2102
Financial Planning & Analysis contacts are listed on page 7 of this manual.
Staff_PR_095 Attachment A Page 12 of 36
NON-CAPITAL BUDGET
OVERVIEW
Non-Capital Terminology
Administrative and
General (A&G)
Subset of O&M; accounts 920-935.
Account Key Required fields used for budgeting include Project, Organization, Expenditure type, and Task
(POET).
Billing Account Billing items are recorded into a suspense account, which are then offset when the billing
occurs, netting to zero.
Clearing Account Specific cost accounts for the transportation expense, material and stores expense, and small
tools that are accumulated and cleared to various capital and operating accounts.
Construction Overheads Includes Supervision, Accounting and Engineering labor and expenses.
Customer Payments Refunds, rebates, refund of line extensions, etc.
Equipment Purchase, usage and O&M expense of equipment operated by company. These items are
typically used on more than one project. Includes vehicles, heavy equipment, forklifts, small
tools, etc. (including gasoline, oil, etc.)
Expenditure Type Codes used to distinguish between labor and other expenses.
Jurisdiction An alpha code associated with each project designating jurisdiction.
WA – Washington; ID – Idaho; OR – Oregon; MT – Montana; AN – Allocated North;
AA – Allocated All; ZZ – No Jurisdiction
Master Activity Code (MAC) Method of tracking non-capital activities at a corporate level using project numbers.
Materials Materials, goods, supplies that are used in the processes (such as office supplies) or become a
part of capital facilities (such as pipe, wire, sand and gravel.)
Operating and Maintenance
(O&M)
Costs required to conduct the Company’s ongoing operations and preventive maintenance.
Costs include labor, materials and transportation.
Overhead/Loading Costs Costs that are incurred in support of one or more activities, but not directly incurred in
accomplishing the activities. These costs are spread on a pre-determined basis to direct
activities such as payroll and construction.
ORG A three-digit alpha-numeric number that represents a specific area of responsibility. An
administrative group, section or department that provides a specific function for the Company.
Budgets for and monitors actual costs on a monthly basis.
Project Number An eight-digit number assigned to each approved Capital Project Request by Energy Delivery
Accounting for the purpose of accumulating the costs of a capital project as described on the
Capital Project Request form. A Non-Capital Project Request form is used to request project
numbers to be assigned to other areas consisting of expense projects, customer billing,
suspense items, research, and maintenance costs.
Suspense Project An eight-digit number established to accumulate costs related to a specific project or purpose
for which the ultimate disposition is unknown.
Transportation
Allocation/Clearing
Allocates the costs related to vehicles and power equipment to the activities where they are
used. Operation, maintenance, and repair costs associated with vehicles and power equipment
are accumulated in vehicle class pooling accounts and then allocated from the pools to
activities by applying established allocation rates to actual usage for each activity.
Workforce – Contract Contract labor being used in lieu of using employees. If equipment rental cost cannot be
separated from the equipment operator costs, include the equipment with the labor in this code.
Workforce – Employee An expenditure type that includes full-time labor and casual labor.
Staff_PR_095 Attachment A Page 13 of 36
Non-Capital Budget Elements
For detailed information on accounting guidelines and policies, please refer to the Regulatory Accounting Guidelines
and Policies in the “A. Accounting Guidelines and Policies” folder under Documents on the Budget Website. There
you will find a PowerPoint training presentation on Invoice Coding along with the Regulatory Accounting
Guidelines and Policies Manual.
Account Key
The key fields used for budgeting are made up of four unique parts: Project, Organization (ORG), Expenditure type,
and Task.
For example:
Project Org Expenditure Type Task
09903640 F55 Labor 920000
Organization (ORG)
An ORG represents the Organizational unit whose resource incurred the cost. Always charge your own ORG for
all expenditures.
Master Activity Code (MAC) and Project Number
The Energy Delivery Accounting team issues project numbers for the purpose of accumulating the costs of non-
capital items. Every non-capital project is assigned to a MAC when it is established. Although the MAC is not used
when actual transactions are recorded, it is used during the budgeting process to accumulate costs by activity. If you
have any questions concerning the MACs or project numbers, please call the Project & Fixed Asset Accounting
Team (Janessa ext. 2538, Howard ext. 2936, or Kellee ext. 2893).
Task (FERC Main and Sub Account)
The three-digit Main account is primarily pre-defined by FERC to describe the work being performed. The three-
digit Sub Account is a further breakdown of the main account. Some Sub Accounts are predefined by FERC while
others have been defined by Avista Corp. to meet business requirements.
Credit Policy (Centralized)
All credits that result from the receipt of cash will be credited to a centralized Organization (Corp ORG below) so
that the management team can view funds received in a centralized place and determine the most critical use for
those funds. Credits resulting from non-cash events such as reclasses, corrections, transfers and reversals will
continue to be credited to individual Organizations (Ind. ORG below). Identification of a transaction as cash or non-
cash will depend on the source document used to create the transaction. For example, if the source document for a
transaction is a cash-receipts memo, the credit that results from the transaction will be charged to Z57. Conversely, if
the source document for a transaction is a transfer form, the credit that results from the transaction will be charged to
an individual Organization.
All employees responsible for budgeting to an individual Organization must:
1.) identify the total amount of each cash related credit charged to their Organization
2.) budget the gross amount (not including cash credits) by account to the individual Organization
3.) provide a list of any new credit items, amounts and accounts to the Financial Planning & Analysis Team so
that these credits can be budgeted to Z57
Staff_PR_095 Attachment A Page 14 of 36
Financial Accountability Plan – Credit Project
Credit Examples
WHAT SOURCE WHY HOW CODED CASH/FUNDS
REC’D?
ORG FINANCIALS
CIACs
203-Ciac
204-Ciac Transfer
Contributions must reduce
rate base per FERC
Service Agreements
Yes
Corp.ORG
Capital
Cash Book
Refunds/Rebates
Misc. Revenues
605-Cash Book
Product returned
Unrecorded receivable
Cash Receipts Memo
Cash Receipts Memo
Yes
Yes
Corp. ORG
B/S Acct.
Capital, Expense, O&B
B/S Acct.
Reclasses
Voided Checks
First Install-meters
Equipment Transfers
Transfers
DSM Overheads
Reversals (AFUDC,
etc.)
Payables
216-1st Install Meters
215-Equip Xfer
225-Transfers
212-DSM Overhead
All meter installs charged to
expense
Jurisdictional transfers
Corrections
Transfer
Corrections
Excel spreadsheet
METS
Transfer form
Excel spreadsheet
Various
No
No
No
No
No
Ind. ORG
Ind. ORG
All
Corp. ORG
Ind. ORG
Expense
Capital
All
Expense
Capital, Expense, O&B
Damage Claims Bills
207-DC Billings
Reimbursement for
Expenditures
Damage Claim bill
form
Yes
Corp. ORG
Capital, Expense, O&B
Miscellaneous Bills
Credit Union
EDS Billings
Orthophotography
Pre-Line School
Apprentice Training
Utility Services
Make-Readies
221 – Misc Billings
Reimbursement for
expenditures (plus a
potential profit)
Miscellaneous Bill
form
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Corp. ORG
Corp. ORG
Corp. ORG
QXX ORG
QXX ORG
QXX ORG
Corp. ORG
O&B
O&B
O&B
Operating Revenue
Operating Revenue
Operating Revenue
O&B
Sales Tickets
Cash Sales
Charge (CSS) Sales
605 – Cash Book
CSSCAE
Sale of goods & services to
employees/customers
Sales Tickets
Sales Tickets
Yes
Yes
Corp. ORG
Corp. ORG
O&B
O&B
Materials Mgmt System
Salvage
Returns/Exchanges
Returns to storeroom of
inventory, scrap or
materials to be refurbished
904 Ticket (S)
904 Ticket (094)
Yes
No
Corp. ORG
Ind. ORG
B/S Acct.
O&B
Subsidiary Billings
106-Sub Billing
Reimburse Corp. for
expenditures on
subsidiary’s behalf
Excel spreadsheet
Yes
Corp. ORG
O&B
Tariffed Activities
DSM
LIRAP
Wind Power
213 – DSM/LIRAP
Exp
213 – DSM/LIRAP
Exp
To reclass program
expenditures to balance
sheet
Excel spreadsheet
Excel spreadsheet
Manual calculation
Yes
Yes
Yes
Corp. ORG
Corp. ORG
Corp. ORG
O&B
O&B
O&B
Accruals
Year-end
Cross-year
Same year
Actual pmt < accrual
Actual pmt > accrual
N/A
To appropriately record
balance sheet items
Excel spreadsheet
Individual request
Individual request
No
No
No
B/S Acct.
B/S Acct.
B/S Acct.
Corp. ORG
Ind. ORG
B/S Acct.
B/S Acct.
B/S Acct.
Capital, Expense, O&B
Capital, Expense, O&B
Centralization
Loadings (ML, PB, PL,
PT, etc)
N/A
Allocation of pooled costs
System
No
ZXX ORGs
Capital, Expense, O&B
Regulatory Items
PM&E
Hamilton St. Bridge
PGE Monetization
484-CF PME ID
460-Hamilton ST
464-PGE Mon
Required by regulatory
agencies
Cash Receipts memo
Yes
Corp. ORG
Clearing Acct
(1845XX)
O&B
O&B
Staff_PR_095 Attachment A Page 15 of 36
Centralization of Direct Charges Table
Type of Cost Types of Cost Outbound Charging Accountability
AFUDC All interest costs associated with CWIP will be
charged to Utility Finance’s Org
All charges will be directly coded to
proper Project number, Task and
centralized Org (J10)
Manager of Financial
Planning & Analysis
Credits All credits for cash related items for both Capital
and Non-capital transactions (examples provided
on previous page)
All charges will be directly coded to
proper Project number, Task and
centralized Org (Z57)
Manager of Project &
Fixed Asset Accounting
Facilities All costs associated with facility maintenance and
operation will be charged to Facilities’ Org
All charges will be directly coded to
proper Project number, Task and
centralized Org (H07)
Manager of Facility
Services
IS/IT (incl’s
Telecom)
All costs associated with technology items will be
charged to IS/IT’s Org. This includes hardware,
software, telephone, and telecommunication
items
All charges will be directly coded to
proper Project number, Task and
centralized Org (B09, P09 or W09)
VP & CIO
Legal All costs associated with legal fees or services
(expenditure type 005) will be charged to Legal’s
ORG
All charges will be directly coded to
proper Project number, Task and
centralized Org (P01)
Sr. VP General Counsel
& Chief Compliance
Officer
Payroll
Accrual
All charges will be directly charged to a central
Org under Corp. Accounting
All charges will be directly coded to
proper Project number, Task and
centralized Org (Z89)
Manager of Corp.
Accounting
Real Estate Costs for permits, easements, land and
improvements will be charged to Real Estate
All charges will be directly coded to
proper Project number, Task and
centralized Org (V08)
Manager of Real Estate
Supply Chain All copy machine leases, maintenance, postage,
graphics and mail services will be charged to
Supply Chain Org
All charges will be directly coded to
proper Project number, Task and
centralized Org (H51, Z09)
Manager of Supply
Chain
Centralization of Loadings Table
Type of Loaders Outbound Charging Accountability
WL –LOADERS Indirect Engineering
77700240 107010 –Admin /Accounting
77700241 107020 – Generation and Prod
77700241 107030 – Electric Transmission
77700241 107040 – Electric Distribution
77700242 107050 – Gas Distribution North
77700242 107060 – Gas Distribution South
The loadings would be charged to appropriate
capital Project number, Task and centralized
Org
Energy Delivery Acctg Mgr (Z81)
Gen & Prod Dir (Z82)
Transmission Eng Mgr (Z83)
Distribution Eng Mgr (Z84)
Gas Eng Mgr (Z85)
OR Opers. Analyst (Z86)
Transportation
The loadings would be charged to appropriate
capital, operating, or maintenance Project
number, Task and centralized Org
Fleet Manager (Z88)
Travel Mgr (L54)
Expenditure Type:
Small Tools Loading
Stores/Material Loading
Materials Tax/Freight Loading
The loadings would be charged to appropriate
capital, operating, or maintenance Project
number, Task and centralized Org S51
Supply Chain Mgr (S51)
Payroll Benefits
Payroll Taxes
One Leave
The loadings would be charged to appropriate
capital, operating, or maintenance Project
number, Task and centralized Org Z87
Corporate Benefits Mgr (Z87)
PM&E (Capital) The loadings would be charged to appropriate
capital, operating, or maintenance Project
number, Task and centralized Org B04
Environmental Affairs Dir (B04)
Expenditure Type
Philosophy: The use of expenditure types will enable the summarization of types of costs that are charged to many
different project/task combinations that occur during the year.
For the non-capital budget process, the only expenditure types used will be Labor, Overtime (OT), and Non-
Labor.
Staff_PR_095 Attachment A Page 16 of 36
Spread Code
01 11 21 31
02 12 22 32
03 13 23 33
04 14 24 34
05 15 25 35
06 16 26 36
07 st 17 27 37
08 18 28 38
09 19 29 39
10 20 30 40
41
Expenditure Categories
Capital
Capital expenditures are incurred to create or purchase an asset that costs $1,000, or more, and has a useful life of
more than one year. The costs are then recognized over the life of the asset in the form of depreciation or
amortization expense. Generally, items that cost less than $1,000 or have a life of less than or equal to one year
should not be capitalized.
Non-capital
Operating & Maintenance (O&M) – Including Administrative & General (A&G)
O&M expenditures are the expenses recognized on the income statement in the period incurred to operate and
maintain or support the operation and maintenance of company operating assets (those that support gas distribution
and electric distribution, transmission and generation). O&M expenses are tracked using Task numbers in the range
from 500xxx through 935xxx. A&G is a term commonly used to refer to the subset of O&M accounts in the range of
920xxx to 935xxx.
Non-Operating (sometimes referred to as Other Income & Deductions)
Non-operating expenditures are the expenses recognized on the income statement in the period incurred that do not
support the primary operating activities of the business (gas distribution and electric distribution, transmission and
generation). The Task number range is 415xxx to 426xxx. These items are not recoverable through rates.
Clearing, Overhead & Billing
Clearing and Overhead items may indirectly impact the income statement. These items are accumulated into pooling
accounts on the balance sheet and then allocated on a predetermined basis as a loading on capital and/or O&M
expenditures. Billing items are recorded into a suspense account, which is then offset when the billing occurs,
netting to zero.
For assistance in determining the classification of an expenditure category, contact the Project & Fixed Asset
Accounting team. (Refer to Budget Contacts section for extensions.)
Labor Loadings (Centralized)
Direct costs will remain in the originating ORG for cost budgeting and variance reporting. The labor loadings, which
include paid time off, payroll benefits, and payroll taxes, will be calculated by the budget application and charged to
the appropriate capital, operating, or maintenance Project and Task numbers in ORG Z87.
See “Summary of Key Budget Assumptions” for details
The Casual Labor calculation takes into consideration the loading for payroll taxes (8.75%), the only loading applied
to Casual and Student employees and overtime labor.
Staff_PR_095 Attachment A Page 17 of 36
Labor Information
Always charge your labor to your own ORG. You will need to budget your labor to the appropriate projects. The
Budget/Forecast/Analysis group will budget paid time off for each ORG based upon each ORG’s historical
percentage of paid time off taken during the year.
When adding new employees into the budget input application, please use 99999 as the employee number.
When adding (not replacing) new staff, be sure to also consider the peripherals that will be needed. Notify other
departments, such as facilities and ET so that they can accommodate any extra expenses associated with additional
staff.
Temporary service or casual employees who are not on our payroll (Humanix, Kelly, Olsten, Volt, etc.) should not
appear in the labor management section. Costs for these employees should be budgeted in your non-labor accounts.
You will be billed for these services directly from the outside agency.
Outside Agencies: (Not on Avista Corp.’s payroll) Representative costs from these providers are detailed below:
Executive Secretary/Technical Skills $17.51 – $23.46/hr.
Receptionist/Admin Assistant $14.42 - $17.94/hr.
General Clerk $12.36 - $16.56/hr.
Contact Human Resources at Ext. 2340 if you have any questions.
MAC (Master Activity Code) Table
MAC DESCRIPTION
SERVICE/OUTSOURCE ACTIVITIES
001 Investor Relations / Stock Expense / Annual Meeting / Annual Report / Outside Analyst Meetings
002 Board of Director Activities
005 Building Office Maintenance, Services
011 Aircraft Operations & Travel Services
Plane Lease, Travel Department
015 Outsourced Activities
Graphics Department, Postage, Records, Cafeteria Costs, Collections
016 Department Administrative Activities
Administrative Support
017 Real Estate/Right of Way/Contract Services
Joint Use
018 IS/IT Activities
Outside Contract Expenses and IS Avista Labor
Software & SW Licensing Maintenance
Hardware Maintenance
Telecommunication Monthly Usage Charges
Computer Hardware Leases
022 Telecommunication Services
OVERHEAD ACTIVITIES
020 Transportation
021 Small Tools Equipment & Capital Tools Maintenance
Small tools storeroom maintenance
Capital tool maintenance
Staff_PR_095 Attachment A Page 18 of 36
023
024
PUBLIC AFFAIRS/COMMUNICATION ACTIVITIES
030
031
033
ENVIRONMENTAL, LEGISLATIVE AND GOVERNMENT RELATIONS ACTIVITIES
032
051
052
054
Represent the company’s position on various issues
055
CUSTOMER SERVICE, INFORMATION, AND MARKETING ACTIVITIES
071
072
Staff_PR_095 Attachment A Page 19 of 36
073
075
ELEC/GAS DISTRIBUTION, TRANSMISSION, GENERATION AND RESOURCES
201
202
203
204
205
206
–
210
211
215
Staff_PR_095 Attachment A Page 20 of 36
220
245
----------------------------------------------------------------------
HUMAN RESOURCE ACTIVITIES
280
281
291
292
295
FINANCIAL AND CONTROL ACTIVITIES
331
337
341
342
343
PLANNING, ANALYSIS AND REPORTING ACTIVITIES
364
369
Staff_PR_095 Attachment A Page 21 of 36
FERC Non-Capital Account List
The following accounts are used in the budget system. It is not a comprehensive list of all FERC accounts.
ASSETS AND OTHER DEBITS (Other) 182.3 Other reg assets
102 Property purch/sold 183 Preliminary survey and investigation
107 Capital overhead 184 Clearing accounts (fleet, small tools, PME)
163 Stores expense undistributed 186 Miscellaneous deferred debits
LIABILITIES AND OTHER CREDITS (Other)
232.3 Miscellaneous payables 242.6 Conservation
236 Taxes Accrued 242.7 Other (paid time off, low income)
242 Miscellaneous liabilities 242.9 Misc remediation liability
OTHER INCOME AND DEDUCTIONS (Non-Operating)
Other Income Other Income Deductions
417.1 Expenses from non-utility operations 426.1 Dues & donations
421.1 Gain on disposition of property 426.2 Life insurance
426.4 Expenditures for certain civic, political & related act.
426.5 Miscellaneous Income/Deductions
FERC Non-Capital Account List - Operating
ELECTRIC POWER PRODUCTION EXPENSES Other Power Supply Expenses
Steam Power Generation 556 System control and load dispatching
Operation 557 Other expenses
500 Operation supervision and engineering
501 Fuel Consumed / Handling ELECTRIC TRANSMISSION EXPENSES
502 Steam expenses Operation
503 Steam from other sources 560 Operation supervision and engineering
505 Electric expenses 560.3 Grid West
506 Miscellaneous steam power expenses 561 Load dispatching
507 Rents 562 Station expenses
Maintenance 563 Overhead line expenses
510 Maint. Supervision and engineering 566 Miscellaneous transmission expenses
511 Maint. of structures 567 Rents
512 Maint. of boiler plant Maintenance
513 Maint. of electric plant 568 Maint. supervision and engineering
514 Maint. of miscellaneous steam plant 569 Maint. of structures
Hydraulic Power Generation 570 Maint. of station equipment
Operation 571 Maint. of overhead lines
535 Operation supervision and engineering 572 Maint. of underground lines
536 Water for power 573 Maint. of miscellaneous transmission plant
537 Hydraulic expenses ELECTRIC DISTRIBUTION EXPENSES
538 Electric expenses Operation
539 Miscellaneous hydraulic power generation expenses 580 Operation supervision and engineering
540 Rents 582 Station expenses
Maintenance 583 Overhead line expenses
541 Maint. Supervision and engineering 584 Underground line expenses
542 Maint. of structures 585 Street lighting and signal system expenses
543 Maint. of reservoirs, dams and waterways 586 Meter expenses
544 Maint. of electric plant 587 Customer installations expenses
545 Maint. of miscellaneous hydraulic plant 588 Miscellaneous distribution expenses
Other Power Generation 589 Rents
Operation Maintenance
546 Operation supervision and engineering 590 Maint. supervision and engineering
548 Generation expenses 591 Maint. of structures
549 Miscellaneous other power generation expenses 592 Maint. of station equipment
550 Rents 593 Maint. of overhead lines
Maintenance 594 Maint. of underground lines
551 Maint. Supervision and engineering 595 Maint. Of line transformers
552 Maint. of structures 596 Maint. of street lighting and signal systems
553 Maint. of generating and electric plant 597 Maint. of meters
554 Maint. of misc other power generation plant 598 Maint. of miscellaneous distribution plant
Staff_PR_095 Attachment A Page 22 of 36
FERC Non-Capital Account List – Operating (continued)
GAS UNDERGROUND STORAGE EXPENSES CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
Operation Operation
813 Other gas supply expenses 908 Customer assistance expenses
814 Operation supervision and engineering 908.61 LIRAP
824 Other expenses 908.99 DSM amortization
837 Maint. of other equipment 909 Informational and instructional advertising expenses
910 Miscellaneous customer service and informational exp
GAS DISTRIBUTION EXPENSES
Operation SALES EXPENSES
870 Operation supervision and engineering Operation
874 Mains and services expenses 911 Supervision
875 Measuring and regulating station exp – General 912 Demonstrating and selling expenses
876 Measuring and regulating station exp – Industrial 913 Advertising expenses
877 Measuring and regulating station exp – City Gate 916 Miscellaneous sales expenses
878 Meter and house regulator exp
879 Customer installations exp ADMINISTRATIVE AND GENERAL EXPENSES
880 Other expenses Operation
881 Rents 920 Administrative and general salaries
Maintenance 921 Office supplies and expenses
885 Maint. Supervision and engineering 922 Administrative expenses transferred – Credit
887 Maint. of mains 923 Outside services employed
889 Maint. of measuring and reg. Station equip – Gen 924 Property insurance
890 Maint of measuring and reg. Station equip – Industrial 925 Injuries and damages
891 Maint of measuring and reg. Station equip – City Gate 926 Employee pensions and benefits
892 Maint. of services 927 Franchise requirements
893 Maint. of meter and house regulators 928 Regulatory commissions expenses
894 Maint. of other equipment 930.1 General advertising expenses
930.2 Miscellaneous general expenses
CUSTOMER ACCOUNTS EXPENSES 931 Rents
Operation Maintenance
901 Supervision 935 Maintenance of general plant
902 Meter reading expenses 929
903 Customer records and collection expenses 930
903.9 Customer records and collection expenses – A/R Sale 931
904 Uncollectible accounts
905 Miscellaneous customer accounts expenses
Staff_PR_095 Attachment A Page 23 of 36
EXPENSE
For more detailed information on accounting for these items within Oracle please refer to the Regulatory
Accounting Guidelines and Policies in the “A. Accounting Guidelines and Policies” folder under Documents
on the Budget Website.
Charitable Donations and Corporate Donations
Corporate contributions provide financial support to organizations and activities benefiting the various communities
impacted by the company, while supporting business initiatives and fostering relationships with key stakeholders.
Strategic areas of support for the company are programs/activities/organizations supporting education,
economic/community development and low income/elderly citizens. These charges are “below the line” and should
be budgeted to 77700300 426100.
Sponsorships
Sporting event sponsorships are considered part of marketing and brand identity efforts and should be budgeted
“below the line” to 77700300 426100.
In-Kind Contributions
In addition to cash contributions, the company also endorses in-kind donations to organizations. All incremental
expenses associated with volunteer activities should be recorded to 77700300 426100. Direct labor costs which are
more than incidental and on a recurring basis, must also be recorded to a 77700300 426100. For example, if you are a
loaned employee or executive, your time must be recorded Below the Line. For any questions regarding in kind
contributions of labor, please contact Adam Munson, Director of Accounting.
Corporate Dues
Corporate memberships are usually made to organizations that are of a national or regional nature, i.e., EEI, AGA,
Western Electric Power Institute, etc. These corporate dues/memberships are budgeted to 09800310 930200
(Electric) and 09900311 930200 (Gas). The lobbying portion of an Organization’s dues or memberships should be
budget “below the line” to 77700300 426400.
Other Dues
Employees are encouraged to participate in community involvement opportunities and in professional organizations
that are of strategic importance to the corporation. Dues in such organizations should be included in the budget only
when participation in these types of activities are considered an essential part of an employee’s job responsibilities
and will provide real benefits to the Company’s customers.
Employee dues for individual memberships in professional organizations should be budgeted as individual expenses
with appropriate expense distributions related to each employee’s job responsibility, i.e. if you charge A&G you
should use one of the following:
02800162 921000 - Admin Activities- WA Common
03800162 921000 - Gas Ops Admin Activity – Idaho
06800161 921000 - Gas Oregon Admin Activity
09800162 921000 - Elect Admin Activity - A and G
09800163 921000 - Admin Activities-Common WA ID
09800166 921000 - Gas Ops No Admin Activity-Admin
09900160 921000 - Gas Ops Admin Activity – Admin
09900162 921000 - Admin Activities-Common to All
Company or Employee dues for memberships in community organizations that provide a benefit to both the
Company and the customers should be budgeted 50% to the Utility (see list above) and 50% “Below the Line” to
77700300 426100. Organizations that fall into this category include organizations that provide Avista employees an
opportunity to meet with Avista customers that otherwise may be inaccessible to them. These opportunities provide
Avista the opportunity to educate its customers on Utility issues such as energy efficiency, customer assistance
programs available, rate activity, etc. and to listen to customer concerns. However, this is not the sole purpose of
Staff_PR_095 Attachment A Page 24 of 36
these organizations, and therefore a sharing is appropriate. Examples include Chamber of Commerce, Rotary, Lyons
Club, etc.
Membership dues for the Spokane Club are budgeted in account 77700300 426100.
EXCEPTION: The lobbying portion of dues or memberships should be budgeted to 77700300 426100. This
accounting treatment is used because these costs are not recoverable for ratemaking purposes.
General Services (Centralized)
Basic graphic services, and mail services will be budgeted and charged to General Services (H51). Paper (for your
printer, copier, and fax machines) ordered through Ricoh Graphics will be budgeted by and charged to H51.
The majority of general printing is charged to a centralized account assigned to supply chain (H51). Specialty paper,
finishing supplies, and /or work that must be performed by an outside printer, will be charged to your department
ORG. In addition, printing jobs performed as a donation on behalf of Avista will be charged to your department
ORG.
Subsidiary/tenant operations (Credit Union, Advantage IQ, Ricoh, and HP) will continue to budget and be charged
back for all services.
Please contact Kristie Condosta (ext. 2447) if you have any questions.
Enterprise Technology (Centralized)
All costs for technology items will be budgeted by and charged to ET’s ORG. Please contact David Plut (ext. 4177)
for questions on charging items to ISIT Orgs.
Please refer to the ET Centralized memo and form located in the Capital Documents folder on the Budget website for
detailed information. Contact the Technology Project Management Office at email address #Corp Technology
Project Management Office with questions.
Material and Stores Loading (Centralized)
Individual ORGs should not budget for the material and stores loading. The loading will be budgeted and charged to
the appropriate capital, operating, or maintenance project and task number, and to Supply Chain Loadings (S51).
This will allow projects to be fully loaded, but will remove the material & stores loading from individual ORG
variance reporting. This applies to both capital and non-capital expenditures.
Please contact Cody Krogh (ext. 2085) or April Spacek (ext. 8537) if you have any questions.
Payroll Accrual (Centralized)
Monthly spreads in the Non-Capital Budget Input Application will not include payroll accruals. Labor will be based
on actual pay dates. The payroll accrual will be budgeted by and charged to Accounting Responsibility (Z89).
Please contact Adam Munson (ext. 2471) if there are any questions.
Postage, Couriers & Express Mail (Centralized)
Postage will be budgeted by and charged to Postage Centralization (Z09). Most courier and express mail charges
are centralized to ORG H51. Services which have been established as part of a regular business operation may be
charged to the sponsoring ORG. Common carrier freight related to materials and equipment shipments may be
charged to the individual ORG.
Actual costs for subsidiary/tenant operations (Credit Union, Ricoh, and HP) will be charged back to those ORGs.
The OR Division should continue to budget for all of their postage needs.
If you have any questions or need further information, please contact Kristie Condosta (ext. 2447).
Staff_PR_095 Attachment A Page 25 of 36
Real Estate (Centralized)
All costs will be budgeted by and charged to Real Estate (V08). This will include charges for easements, land
purchases, land rights, easement maintenance, etc. All charges will be directly coded to proper project and task
numbers, and the centralized ORG (V08).
Small Tools Loading (Centralized)
Small tools loading will be budgeted by and charged to Supply Chain Loadings (S51). This will allow projects to be
fully loaded but will remove the small tool loading from individual ORG variance reporting. Please contact April
Spacek (ext. 8537) or Cody Krogh (ext. 2085) if there are any questions. This applies to both non-capital and
capital expenditures.
Telecommunications (Centralized)
Expenses related to operation of the Company’s telecommunications systems including dedicated circuits, frame
relay, dark fiber, ISP, cable, local service, teleconferencing, fax lines, business lines, long distance, toll-free charges,
wireless, pager, directory advertising, including those services delivered to non-Company locations such as
community centers or employee residences, will be budgeted by and charged to Information Services (R09).
Please contact Walter Roys (ext. 2878) if there are any questions.
Training
All training and development labor and expense is to be charged to MAC 281 with one of the designated projects
(projects xxx0281x) and the task number for training expense related to the activity that the training primarily
supports. Please contact the Project & Fixed Asset Accounting Team (Janessa ext. 2538, Howard ext. 2936, or
Kellee ext. 2893) if you need assistance to identify the correct project and task.
Explanation
Training Use for all training that benefits the corporation (including apprentice training) but is
not required by law or regulation.
Required Training Use for all training that is required by law or regulations, including safety related
skills training.
Safety Meetings Use for regular safety meeting attendance.
What's considered training and development?
In-house workshops and seminars includes leadership training, customer service skills workshops, off-the-job
apprentice training, team-building, facilitation skills, financial skills, safety or compliance related training, etc.
Off-site workshops (local or distant), conferences, seminars and specialized courses includes American Management
Association, Career Track, WSU Conferences, WEPI, AGA or EEI workshops, Conference Board, professional trade
association workshops, and workshops/seminars sponsored by consulting firms.
Travel Expense
Commercial Air Fare:
In order to promote consistency in travel cost estimating, please use the round trip air fares from the following table
for the more commonly traveled destinations. Keep in mind; however, these fares are subject to change. If the
proposed destination is not indicated, please use the Travel website on AVAnet to find other fares. Contact Kristie
Condosta (ext. 2447) for further assistance.
Staff_PR_095 Attachment A Page 26 of 36
Round Trip Airfare: Flight costs as of July 2014 on top 30 destinations in the last 12 months. Prices
are per person and do not include baggage fees or fees charged directly by TSA or the airline.
Spokane To Lowest
Discount
Unrestricted
- Coach Spokane To Lowest
Discount
Unrestricted
- Coach
Company Airplane:
The intent of the airplane pricing policy is to encourage economic utilization and therefore minimize the overall cost
of air travel incurred by the Company.
The corporate aircraft may be scheduled as an alternative to commercial travel when it is the most cost
effective means of travel which is based on an economic cost model which takes into account employee
productivity and other related costs or the importance of the meeting or timing is critical to warrant its use.
Executive approval is required for all scheduling. All costs related to the Company airplane are budgeted
and charged to L54 – Travel and Flight Operations. The usage charges based on the published allocation rate
will be charged to individual organizations to fully load Projects; however they will not be reflected in non-
capital variance reporting.
For more detailed information on accounting for the Corporate Aircraft in Oracle please refer to the
Regulatory Accounting Guidelines and Policies in the “A. Accounting Guidelines and Policies” folder under
Documents on the Budget Website.
Please contact Sue Fleming (ext. 4140) for questions.
Vehicle Mileage Rate:
The standard mileage rates for use by employees, self-employed individuals or other taxpayers in computing the
deductible costs of operating a passenger vehicle for business purposes is currently at 56.0 cents per mile.
Staff_PR_095 Attachment A Page 27 of 36
CLEARING/OVERHEAD/BILLING
Construction Overheads
All construction items that can be identified to a specific project under a specific or blanket ER should be charged
directly to that project number.
Budget for and charge the costs, which directly relate to construction but cannot be charged directly to a specific
construction project number, in one of the following clearing work orders:
PROJECT/TASK INDIRECT ENGINEERING
77700240 107010-ORG Administration & Accounting
77700241 107020-ORG Generation
77700241 107025-ORG Safety Clothing Production
77700241 107030-ORG Electric Transmission
77700241 107035-ORG Safety Clothing Transmission
77700241 107040-ORG Electric Distribution
77700241 107045-ORG Safety Clothing Distribution
77700242 107050-ORG Gas Distribution North
77700242 107060-ORG Gas Distribution South
Please contact the Project & Fixed Asset Accounting Team (Janessa ext. 2538, Howard ext. 2936, or Kellee ext.
2893) if you have any questions.
Facilities (Centralized)
All operating and maintenance expenses incurred to operate and maintain the general office complex and outlying
offices will be budgeted by and charged to Facilities Management (H07). This includes all utility invoices such as
water, sewer, gas and electric bills. This also includes all facility remodeling. If you anticipate any remodeling
needs for 2015, please coordinate with Facilities Management. Contact Marcial Laude (ext. 8454) or Margie
Lundberg (ext. 4596) if you have any questions.
Materials
If your ORG anticipates incurring direct charges in the operation and/or supervision of a storeroom, you should
budget for these charges using 77700233 163000. Labor charges associated with obtaining materials from
storerooms or requisitioning direct purchase via a purchase order should not be budgeted or charged to this
account, they should be budgeted and charged to specific projects or to a Project / Task within the requesting ORG.
All material expenditures should be budgeted and charged to an appropriate operating, maintenance, or capital
account.
Please contact April Spacek (ext. 8537) or Cody Krogh (ext. 2085) if there are any questions.
Miscellaneous Deferred Debits (Account 186200)
The 186200 account is primarily used for charges of which final disposition is uncertain and are unusual or
extraordinary in nature. This type of account is often referred to as a “suspense” account. If charges of this nature
are anticipated, budget the costs using the appropriate suspense account (186200) with your department’s ORG.
If the charges to be budgeted are new, contact Janessa Stromberger (ext 2538). For issuance of new suspense project
numbers contact the Project & Fixed Asset Accounting Team (Janessa ext. 2538, Howard ext. 2936, or Kellee ext.
2893).
Miscellaneous Billings
Costs incurred on company premises (e.g., Credit Union, EDS, Union, etc.) should be budgeted to account 186200
with the appropriate project number and ORG. Credits for reimbursements should be budgeted and accounted for as
indicated in the credit policy.
Staff_PR_095 Attachment A Page 28 of 36
Incidental Revenues
Incidental Revenues are operating revenues and should not be budgeted to individual ORGs.
Profits, above and beyond reimbursable expenses, should never be budgeted as reductions (credits) to expense or
capital accounts.
Spokane River Implementation
A condition of the current 50-year FERC license for Avista’s five hydroelectric developments located along the
Spokane River in northern Idaho and eastern Washington outlines the protection and enhancement of fish, wildlife,
water quality, recreation, cultural and aesthetic resources of the Spokane River.
Costs related to these measures are accounted for in the 1844XX and 1849XX accounts. The charges are then
cleared to a Deferral account or directly to expense accounts for Washington (537200 and 537300). A set amount is
amortized from the Washington Deferral account to the 537200 and 537300 expense accounts. All costs, even those
from other ORG’s, will be charged to these accounts for cost budgeting and variance reporting. The loadings will be
charged to the appropriate capital, operating, or maintenance project and task numbers within ORG C04.
For assistance contact Heide Evans (ext. 4993).
Protection, Mitigation, and Enhancements (PM&E)
The Protection, Mitigation, and Enhancement Measures of the Clark Fork Settlement Agreement outline the
environmental, cultural, public recreation, fishery, wildlife, operational, and related measures which Avista is
required to implement, for the term of 45 years, as a condition of the current FERC license for Avista’s Clark Fork
Project (Cabinet Gorge and Noxon Rapids dams).
Costs related to PM&E’s are accounted for in the 1845XX accounts. The charges are then cleared directly to
expense accounts for Washington (537200 and 537300). All costs, even those from other ORG’s, will be charged to
these accounts for cost budgeting and variance reporting. The loadings will be charged to the appropriate capital,
operating, or maintenance project and task numbers within ORG B04.
For assistance contact Heide Evans (ext. 4993).
Small Tools
Small tools are classified as hand-held or portable tools if:
The unit cost is equal to or less than $1,000
The useful life is equal to or less than one year
The tool is used directly in the repair, maintenance, or installation of equipment or facilities
Examples of charges that are not considered small tools include (but are not limited to):
Building Materials – cement, lumber, sand, gravel, tape, nails, etc.
Communications – cell phones, batteries; two-way radios, modems, accessories
Computer equipment and accessories
Fuel or Freight
Furniture
Labor – See Exception Below
Magazine subscriptions
Medical Supplies – aspirin, Sudafed, etc.
Paper Products – wiping rags, paper towels
Service & Leases – phone bills, fax leases, etc.
Squincher
Transportation Charges – mileage for company vehicles
Vehicle and Mobile Radio Accessories
Please contact April Spacek (ext. 8537) if there are any questions.
Budget:
Staff_PR_095 Attachment A Page 29 of 36
The budget for small tools purchased and issued via the Tool Crib inventory is centralized to ORG J51 using
Project/Task 77700218 184XXX as appropriate for your location.
Departments making direct purchases from suppliers should budget for the small tools account (77700218 184250).
If the purchase is safety related, please use task 184252.
Expenditures:
Any ORG that must make direct purchases (from a supplier) for small tools in the ordinary course of business should
charge 77700218 184XXX as appropriate for your location (or task 184252 if safety related) with your ORG.
Charges will appear on the department’s “Other” budget actual reporting. Material issue transactions from inventory
are centralized to ORG J51.
Departments are expected to purchase via the Spokane Tool Crib whenever possible before acquiring tools from
other sources.
Labor:
Labor can only be charged to small tools with specific authorization by April Spacek (ext. 8537).
Non-Billable Subsidiary Support
Any work to be performed by upper management that provides an oversight function to the subsidiaries and is not
properly billable should be charged to your ORG using Project 77703430 417120. Work that a subsidiary would
have to purchase elsewhere, if it was not provided by Avista Corp., is always billable. Please contact Corporate
Accounting for guidance.
Transportation
Fleet Management will budget for all out-of-pocket charges for servicing, maintenance, and parts (including oil,
filters, tires, etc.) obtained directly from the Spokane maintenance facility. ALL FUEL AND LICENSING WILL BE
BUDGETED BY FLEET MANAGEMENT.
If an individual WA/ID Division ORG anticipates obtaining servicing, maintenance, and parts from outside sources
they will need to budget for them in account 77700200 184100 with your ORG. Please contact Neil Thorson (ext.
4776) for guidance. This also applies to locations with on-site vehicle maintenance facilities who anticipate
obtaining their maintenance and service items from outside sources.
The Oregon Division should budget for all their fleet maintenance needs.
REMEMBER: WHEN CHARGES ARE INCURRED, THEY SHOULD BE CHARGED TO THE APPROPRIATE
PROJECT NUMBER, 1841xx (where “xx” represents the correct vehicle class), and your ORG.
If you have any questions about budgeting for transportation, please contact Neil Thorson (ext. 4776), Debbie
Tolliver (ext. 4617), Greg Loew (ext. 2072) or the Project & Fixed Asset Accounting Team (Howard ext. 2936,
Kellee ext. 2893).
Staff_PR_095 Attachment A Page 30 of 36
Vehicle Classes
Vehicle
Class
Description
2 Airplane
32 Hybrid Cars
45 4x2 Pickups, ½ ton – 1 ton Van (Passenger), Suburban
46 4x4 Pickups, ½ ton – 1ton Utility Vehicles (Blazers, Broncos), Suburbans
47 4x2 Service Trucks (Single Rear Wheel), Cargo Vans
48 4x4 Service Trucks (Single Rear Wheel)
56 Service Trucks (Dual Rear Wheel), High Cube, Vans, Flatbeds, Dumps & Tank Trucks (Under 26,000# GVW)
57 Dump and Flatbed (Over 26,000# GVW)
58 Gas Crew Trucks (Over 26,000# GVW), Line Truck (2 axle), Digger Derrick, Pressure Digger Truck
65 Road Tractors
66 Digger Derrick (Tandem Axle)
67 Bucket Trucks (Under 40 ft.), All Ladder Trucks
68 Bucket Trucks (Over 40 ft.), Double Buckets
76 Trenchers, Backhoes, Wheel Loaders, Vibratory Plows, Excavators, Bores
77 ATVs
78 Snowcats
79 Cranes
85 Chippers, Compressors, Welders, Tensioners
86 Trailers (Under 10,000# GVW)
87 Trailers (Over 10,000# GVW), Lowboy Trailers
Transportation Allocation (Centralized)
Individual ORGs should not budget for the transportation allocation. The allocation will be budgeted and charged to
appropriate capital, operating, and maintenance project and task numbers and to ORG Z88. This will allow projects
to be fully allocated, but will remove the transportation allocation from individual ORG variance reporting.
Please contact the Project & Fixed Asset Accounting Team (Janessa ext. 2538, Howard ext. 2936, or Kellee ext.
2893) if you have any questions.
Staff_PR_095 Attachment A Page 31 of 36
CAPITAL BUDGET
Capital Budget Terminology
**
**–project. Multiple BI’s can fall under one ER.
–––––
––
Prior Years’ Project Costs
.
––––
Completed construction work also known as “Plant in Service”. Recorded original
*To access forms: Go to Avanet/Employee Resources/Forms/Finance Forms
**To access ER/BI forms Go to Avanet/Administrative Resources/Budget/Documents/Capital/ERBI Request Form
Staff_PR_095 Attachment A Page 32 of 36
ER-BI-Capital Project Request Flowchart
Categories Codes Table
Category Description
Productivity Out-of-planning process cycle improvements to operating performance and margin
realization through year-round innovation (excluded from annual planning, for in-
year innovation only).
Mandated Projects or programs required by law or regulatory mandate, including obligation to
serve and excluding business-to-business contractual obligations.
Programs Systematic/repetitive multi-year programs designed and managed to sustain an
expected desired level of system performance.
Projects Stand-alone activities that upgrade existing assets or install additional new assets
required for operation of all of Avista's systems and processes.
Capital FERC Functional Accounts
ELECTRIC GAS
Intangible Transmission –Intangible – Transmission
Steam production Distribution –Manufactured gas – Distribution
Hydro production General –Underground storage – General
Other production Other storage plant
ER
1 NNNN-Lib Lake 115kv Transmission
2 NNNN-Electric Rev Blanket
BI
1 XXXXX-Install 115kv Line Position
2 XXXXX-Colville
Project
1 LLLNNNNN-Construction 2 LLLNNNNN-Colville
BI
1 XXXXX-Construct Line
2 XXXXX-Spokane
Project
1 LLLNNNNN-Design & Construct Project 1LLLNNNNN-Obtain Right of Way
2 LLLNNNNNN-Spokane
Capital Project Request
Form
LEGEND
ER - Expenditure Requisition N – number
BI - Budget Item X – alpha-numeric
LLL Three digit location 1 Example of specific ER flow
2 Example of blanket ER flow
Capital Project Request
Form
Capital Project Request
Form
An ER and BI are required for Capital budgeting.
Actual charging requires a Capital Project #. An ER
and BI are necessary for Capital Project set-up.
Staff_PR_095 Attachment A Page 33 of 36
Staff_PR_095 Attachment A.docx
AFUDC
AFUDC (Allowance for funds used during construction) is an amount capitalized relating to the cost of money used
to finance projects during the construction period. For budget year 2016, this amount is 7.29%.
AFUDC IS NOT accrued on the following:
Jobs that can be designed and constructed within a month or less.
Salvage, Retirement, and Removal Accounts.
Construction blanket ERs, which DO NOT require specific work orders and/or are automatically transferred to
Plant-In-Service.
Work orders for the purchase of equipment, vehicles, furniture, etc. are automatically transferred to Plant-In-
Service.
Please keep in mind that all AFUDC will be centralized under one ORG J10. ER sponsors will be required to budget
AFUDC into overall project costs associated with an ER but the budgeted ORG will be J10.
CAPITAL CONSTRUCTION ERS
Electric and Gas Meter Installations
Capitalization of meter installation costs can only occur when a meter is first placed in service. Subsequent
reinstalled meter charges should be expensed.
All meter installation work is to be charged directly to capital. Subsequent installation costs for all electric and gas
meters are recorded by the Project & Fixed Asset Accounting Team.
If you have any questions regarding electric and gas meter accounting, call the Project & Fixed Asset Accounting
Team (Janessa ext. 2538, Howard ext. 2936, or Kellee ext. 2893).
Retired Equipment Costs
Retired and disposed electrical equipment and oil costs are capitalized. Equipment purchased to replace retired oil-
filled equipment should be capitalized.
The following activities and costs are considered capitalized costs of disposal (removal) when associated with a
retired piece of equipment:
Internal and external labor to remove, clean-up, transport, test, package, store equipment, pump fluids and
maintain proper documentation and records.
Disposal costs at State and/or EPA-approved PCB incinerators and landfills
Field testing of oil filled active equipment if removed from service
Salvage costs at state and/or EPA-approved salvage operations
Laboratory testing costs relating to identifying PCBs and proper disposal of equipment containing PCBs
Chemical treatment costs from oil related to disposed equipment
Other costs of disposal of PCBs directly related to the retirement of a specific piece of equipment
Specific system removal projects
Rinsing costs
Infrastructure and handling system improvements, repairs and replacement
If you have any questions regarding PCB accounting, call Darrell Soyars (ext 2860).
Staff_PR_095 Attachment A Page 34 of 36
Staff_PR_095 Attachment A.docx
Preliminary Survey and Investigation (PS&I)
Preliminary survey and investigation charges are for expenditures for preliminary surveys, plans, investigations, etc.,
for the purpose of determining the feasibility of contemplated utility projects that may be approved capital budget
items in future years.
The feasibility costs will be tracked with a suspense project and charged to suspense account (183000). If the project
becomes an approved capital budget item, the costs are then transferred to a capital project. If the project is not
approved the changes are expensed to the appropriate operating accounts.
If you have any questions regarding preliminary survey and investigation coordination or prioritizations contact the
Project & Fixed Asset Accounting Team (Janessa ext. 2538, Howard ext. 2936, or Kellee ext. 2893).
Protection, Mitigation & Enhancements (PM&E)
ER 6103
The Protection, Mitigation, and Enhancement Measures of the Clark Fork Settlement Agreement outline the
environmental, cultural, public recreation, fishery, wildlife, operational, and related measures, which Avista is
required to implement, for the term of 45 years, as a condition of the current FERC license for Avista’s Clark Fork
Project (Cabinet Gorge and Noxon Rapids dams).
B04 will be the only ORG budgeting to these capital accounts. For assistance, please contact Heide Evans (ext.
4993).
Spokane River Implementation
ER6107
A condition of the current 50-year FERC license for Avista’s five hydroelectric developments located
along the Spokane River in northern Idaho and eastern Washington. License conditions are intended to
protect and enhance fish, wildlife, water quality, recreation, cultural and aesthetic resources.
C04 will be the only ORG budgeting to these capital accounts. For assistance, please contact
Heide Evans (ext. 4993).
NON-CONSTRUCTION ERS
Technology ERs
Please refer to the ET Centralized memo and form located in the Capital Documents folder on the Budget website for
detailed information. Contact the Technology Project Management Office at email address #Corp Technology
Project Management Office with questions.
Facilities ERs
Please refer to the Facilities Capital Request Form in the Capital Documents folder on the Budget website for
detailed information. Contact Marcial Laude (ext 8454) or Margie Lundberg (ext 4596) with questions.
Capital Tools & Testing Equipment and Stores Equipment ERs
Please refer to the request forms in the Centralized Budgets folder under Capital Documents on the Budget website
for detailed information. Contact the following individuals for information on standard or specialized tools and
equipment:
Gary Shrope (ext. 4100) Electric Tools, Testing and Lab Equipment
Dan Wisdom (ext 4123) Gas Tools & Equipment
April Spacek (ext. 5837) Stores Equipment
Staff_PR_095 Attachment A Page 35 of 36
Staff_PR_095 Attachment A.docx
7000 – Transportation
Budgeting for company vehicles and power-operated equipment is an ongoing process coordinated by the Fleet
Services department.
Please contact Greg Loew (ext. 2072) for questions related to ER 7000.
Staff_PR_095 Attachment A Page 36 of 36