20040210Audit request attachment.pdf

ACCOUNT DISTRIBUTION KEY
Two Typical Account Distribution Codes
WIO UTILITY MAIN SUB
2860 920
1720 364
LOCA TION
Cll 099
BSO 028
Work Order Number (WO)
A four digit number assigned to each unique project, job or program. Retail Accounting Services
issues work order numbers for each approved AFE for the purpose of accumulating the costs of a
capital or expense project as described on the AFE. Work order numbers are also assigned to
other areas consisting of expense projects, construction , customer billing, suspense items,
research, and maintenance costs. FERC requires work order numbers on construction, removal
sal vage, retirements and other select types of jobs. Beginning in 1993, work orders have been
used to track the non-capital costs of company-wide activities. ALL CAPITAL, OPERATING,
MAINTENANCE, BILLING, SUSPENSE, AND RESEARCH WORK MUST HA VE A
WORK ORDER ASSIGNED TO THEM.
Work Order Type
All work orders are assigned a TYPE on the work order master file. This TYPE does not show
up ,111 the account key, but designates what type of accounts (capital, operating, billing) can he
charged LO the work order. The same work order number may be set up under multiple work
order types The work order types are:
A - Clearing
B - Billing/Other
C - Construction
D - Suspense
K - Other IncomelDeductions
M - Maintenance Expense Projects
P - Operating Expense Projects
R - Removal of Plant
S - Salvage of Plant
X - Retirement of Plant
Utility Code
The utility code designates the utility or allocation factOr used to assign costs. The utility codes
are
ffi:; wwr cJri_OJ1ly_
_"-
T\. WWP Gas 10 C~"'.!J
:,_
o '
/) A2 - WP Natural Gas -1" _- -- 00
Co-o;-to\VWP"El~~~;i~, WWP Gas andWPN~~al G~\ rUt) J-.-r f~~
~(;"~~
to WWP G ~s.-~nd'\VP.Ntifiliar Gas=
---
;:J.-
9 :Cifriifrionto~WWP El~c~c ai1dWWrHJ.iso ~ w /~ r\
-;;:
Utility code 9 is also used on many balance sheet items and has no utility codemeaning
Main Account
The main account is a three digit account that describes the function, work or type of physical
plant. Most main accounts are predefined by FERc.
Sub Account.
Suh Account is a further break down of the main account. Some sub accounts are pre defined by
. FERc. Others sub accounts are defined for business requirements.
Responsibility Area/Responsibility Code (RA/RC)
Responsibility Area represents the organizational unit which incurred the cost.
Location Code
Location represents the physical location where the work is performed. Location codes are
always used when charging to a construction account and certain O&M accounts. Some
locations are derived from the RC, primarily in the administrative areas, when not positively
coded on the transaction.
JTILITY CODES
BACKGROUND
The purpose of utility. codes is to enable the assignment of costs and plant to utility services. This. assignment is used for
internal reporting, regulatory reporting, and rateffiaking.
The utility code is a one digit numeric code immediately preceding the FERC main account in the account distribution. Valid
utility code values are:
Service(s)
WWP Electric
WWP Gas
WP Natural Gas
Common to WWP Electric, WWP Gas, & WP Natural Gas
Common to WWP Gas, & WP Natural Gas
Common to WWP Electric & WWP Gas
Utility cod!'s 0, 1, and 2 are direct assignment codes--they are assigned to a single utility service. Utility codes 7, 8 , and 9 are
alloc:Jted bc:ween utility services.
POLICY
A utility code will be used on all acc~)Unting transactions. Utility code 0 will be used on charges which relate only to WWP
electric service. Utility code 1 will be used on charges relating only to WWP gas service (Washington or Idaho). Utility code
2 will be used on charges .relating only to WP Natural Gas service (Oregon or California). Utility. code 7 will be used for
charges relate9. to activities which support all three services (WWP electric, WWP gas, and WPNG). Utility code 8 will be
;ed for charges related to both WWP gas and WPNG gas services. Utility code 9 will be used for charges related to both
IWP electric and WWP gas services. Utility code 9 will also be used for all balance sheet, clearing, and non-Qperating
accounts. Charges to balance sheet control accounts , clearing accounts, and non-Qperating accounts will not be allocated to
services. A table showing valid utility codes by account range is shown on the nex1 page.
IMPLEMENT A TION
Direct assignment utility codes (0, 1, or 2) oare to be used whenever possible. Common utility codes (7, 8, or 9) are to be used
when a transaction cannot be directly assigned.
Example: The labor charges for a meter reader in Le\\'iston who reads both electric and gas meters should be charged to
utility 9, account 902. A meter reader in Medford would use utility 2, account 902, since only WPNG gas meters are beingre~
Example: The cost of office supplies in the Finance department in Spokane would be charged to utility code 7, account
921 , since the Finance department supports all three services. The cost of office supplies in the Natural Gas administration area
would be charged to utility code 8, account 921 , since they support both the WWP gas and WPNG gas services.
6/'+/96
Accounts
108
III
114
115
119
01-
310-387
";89-
400
403
404--107
4()~-409
410-411
415-433
440-456
480-496
500-598
. 710-806
60740
808-894
~no
901-905
906-910
911-917
920-976
927-928
979-935
l() 980-9:'\6
Valid UtilitY Codes by FERC Account
Descnntion
Accumulated Devreciation-Electric
Accumulated Amortization
Acquisition Adjustments
Acc;umulated Amort-Acquisition Adi
Accumulated Depreciation-Gas
Balance Sheet Control AccOlmts
Construction Overhead Clearine:
Or~anization & Franchises
Intangible Plant
Production. Transnort & Dic::trib Plant
General Plant
Unbil1ed Revenue
Devreciation E:\:;pense
Amortization EX1)en.c::e
Taxes
Taxes
Non-Operntine: Income & Expense
Electric Revenue
Gas Revenue
Electric Onerntine: E~nse
Gas OveTcHin~ Exvense
PlIrchac::ed Gas E:wenses
Gas Onerati :qJense
Customer Accounts E:qJen.c;es
Custo rvice &nfo E:qJenses
Sales EX1)enses
A&G EXJ)enses
Fra chise & Reg Commission EXDense
A&G EXJ)en.c;es
Cleari g Accou
. .
Valid Utility Codes
*Balance sheet control accounts, non-operating accounts, and clearing accounts will use utility code 9 but will not be
allocated.
(j) W W cie. ~iY\u!.. o..c..c.C:I.J. v
6/4/96
DI~TRIBUTION WORK:TRANSMISSION WORK:
Geo Area Loc. #state Transmission Line Loc. #State
Coeur d' Alene # 901 60kv line IEP - Millwood 249
Coeur d' Alene #2 902 60kv line Diamond Match - Newport 363
Coeur d 'Alene #3-.903 115kv lines (All)299
Sandpoint 930 115kv lines (All)399
Sandpoint 940 230kv line Beacon - Cabinet Gorge 223
Priest River 905 230kv line Beacon - Cabinet Gorge 320
S1. Maries 906 230kv line Beacon - Lolo 253
Kellogg 907 230kv line Beacon - Lolo 350
Wallace 908 230kv line Benewah - Pine Creek 345
ClarkstonlLewiston 922 230kv line Cabinet Gorge - Noxon 334
ClarkstonlLewiston 932 230kv line Cabinet Gorge - Noxon 421
Grangeville 910 230kv line Lolo - Oxbow 331
Kamiah 911 230kv line Hatwai - North Lewiston 360
Craigmont 912 230kv line North Lewiston - Walla Walla 259
Orouno 913 230kv line North Lewiston - Walla Walla 354
Pierce 914 230kv line Noxon - Pine Creek # 333
Pullm::uwv(oscow 923 23 Okv line Noxon - Pine Creek # 420
PullmanJJyfoscow 933 230kv line Noxon - Pine Creek #2 361
Deary 917 230kv line Noxon - Pine Creek #2 428
Genesee 926 230kv line Hot Springs # 1 - Noxon 422
Genesee 936 230kv line Hot Springs #2 - Noxon 423
Tekoa 927 230kv line Beacon - Bell #4 220Tekoa937230kv line Beacon- Bell #5 2~6.WA..alouse 928 230kv line Bell - Wests ide 268lalouse938230kv line Coulee - Westside 268
Garfield 941 230kv line Walla Walla - Wanapum 261
Colfax 942 230kv line North Lewiston - Shawnee 278
Northwest Spokane County 950
Northwest Spokane City 951
Deer Park Spokane County 952
Northeast Spokane County 953 OTHER (Including substation and office work):
Northeast Spokane City 954
YalIey Spokane County 955 State codes Loc. #
Central Spokane County 956 Washington 028
Central Spokane City 957 Idaho 038
Southwest Spokane County 958 Montana 048
Southwest Spokane City 959 Oregon 068
Colville 960 California 078
Chewelah 961 Common to ORJCA 092Northport962Common to W A/ID 098
Gifford/Inchelium 963 Common to WA/ID/ORJCA 099Othello970
R.i tzvilJe 971
Goldend::tle 973 titDavenport974
Long Lake 975
Odesso./W il bur 976
6/4/96
CAPITAL Vs OPERATING & MAINTENANCE Vs NON-OPERATING
Capital- VS - Expense Determination
Accounting Definition (Regulated)
a. Capital - Ari expenditure is considered to be capital when it meetS the following
tests:
The work is for installing or replacing a defined "Retirement Unit". (If an item is
listed on .a Property Removel Notice (PRN), it is a Retirement Unit.)
Generally if the work is for installing new facilities, it is capital.
b. Expense - An expenditure is considered to be expense when it meets one of the
following:
The cost providesbenetit to only one year.
The cost does nOt meet any of the capitalization criteria (i.e., does not involve the
addition or replacement of a retirement unit or is not installing new f~cilities).
Capital
An Asset. An investment in physical plant such as poles, substations, generating facilities,
vehicles, computer and other equipment. These "investments" are recovered from
customers through depreciation over average lives of respective property. Capital is
defined in terms of economic life (i.e., five years). However, there are some items, such as
minor furniture items that have a $500 cost floor. Items costing less than $500 are
currently expensed.
Operations Expense
Labor and expenses required to operate or support the operations. of the company assets
(i.e., fuel, supervising hydraulic or thermal generating equipment, lubricants, adjusting
suhstation equipment when necessary, customer accounting expenses, meter reading and
administrative labor, insurance, and franchise costs). In other words, costs to provide
service incurred in the daily functioning of the Company.
Maintenance Expense
Labor and expenses required to perform preventative maintenance or repair capitalized
assets (i.e.,repair penstock valves, turbines, and runners; clean insulator or" bushings;
overhaul and repair line cutouts, switches and breakers; repair automobiles, radios, etc.
d,lo
General Ledger & Wark Order System Training
rec::Jver over multiple years year
CAPITAL Ys.EXPENSE
vs.Ys.
- build something new
- replc:.c:e old equipmentwith new
- fix existing plant - cper2.te plant
- turn vc:.1ves
. flip switch
- etc.
wpcl173
08/23/95 12:35 P~I ;)-1
. -
DISTRIBUTION DECISION-TREE
EIGHT-STEP-TEST" ACCOUNT
YES C,j,PITAL
REPLACINO- YES TRANSFMR YES EXPENSE
YES CAPIT AL
E:~PENSE
Mov INO '- YES
EX 1ST ING EXPENSE
CAPIT AL
EXPENSE
NO RE?AIRINO~YES EXPENSE
Non-Operating Expenses
Labor and expenses that do not support the utility company operations. This could be
work in support of subsidiary company operations or expense items that utility
commissions do not allow us to charge our utility customers such as lobbying expenses.
Overhead Costs
Overhead costs are costs that are incurred in support of one or more activities, but not
directly incurred in accomplishing the activities.
Costs are accumulated into a pool and then distributed out to operating & maintenance or
capital projects on a usage basis. The following are the overheads used at WWP.
Payroll Loading which includes:
Direct Payroll (P
Benefits (PB)
Payroll Taxes CPT)
Paid Time Off (PL)
Construction Overheads (WL)
Transportation Overheads
Purchasing Loading (ML)
Small Tools Loading (SL) (TS)
Payroll loading is applied to all labor charges that go through the WWP payroll system. This
method allows us to capture TOTAL payroll costs by account number as the costs occur. The rates
that are applied represent an estimated cost of all payroll loadings expected to be inCUlTed
throughout the year. The attached worksheet gives a detailed explanation of how the loadings are
developed.
Construction overheads represent costs of engineering work and other construction related work
that can not be directly assigned to a specific capital project. These costs are accumulated in
construction overhead work orders and charged to specific capital projects on a percentage basis.
For example, when a distribution job is built and it costs $1,000 in direct costs, the job will also he
charged 8.59( in construction overhead for various engineering and related support work.
Transportation overheads represent the costs of the administrative staff that oversees the
transpol1ation department and the costs they incur for various items such as licensing and insurance
for our neet vehicles. These costs are added to the direct costs of maintaining a specific group of
vehicles and charge out rates are established on a per mile/ per houri or fixed distrubution basis. For
example, if you drove a pool car 10 miles to a training class in downtown Spokane, your training
hudget would be charged for 10 miles times 40 cents, or $4.00. Included in that $4.00 is gas, tires,
maintenance and overheads such as insurance, tabs and part of the transportation departments
administrative staff salary.
Purchasing overheads represent the costs of maintaining the purchasing and stores department.
These costs are allocated out to al1 purchases made through the purchasing department on a
percentage basis with a $500 limit on the loading.
Small tools loading is applied to labor dollars charged to a specific set of accounts. When small
tools are purchased, they are charged to the small tools account. When employees charge certain
specific FERC accounts, that labor receives small tools loading in addition to labor loading.
'30
BUDGETED OVERHEADS
1996 RATE 1997 BUDGET
EMPLOYEE BENEFITS 30.00%33.00%
PAYROLL TAXES 50%00%
PAID TIME OFF 17.00%18.00%
STORE~PURCHASE EXP 11.00%11.00%
1001 GEN CONST A&G 25%60%
1002 GEN CONST ENG & SUPR 00%50%
1003 TRANS ENG & SUPR 24.00%20.00%
1004 ELEC DISTRIBUTION 50%10.00%
1005 GAS DISTRIBUTJON 14.00%12.00%
1006 WPNG GAS DISTRIBUTION 21.50%16.00%
1007 18450 WWP SMALL TOOLS 00%50%
1007 18458 WPNG SMALL TOOLS 00%15%
TRANSPORTATION
CLASS 1 WPNG CARS $0.$0.
CLASS 2 AIRPLANE $11.$10.
CLASS 35 WWP CARS $0.$0.
CLASS 45 4X2 PICKUPS $0.$0.
CLASS 46 4X4 PICKUPS $0.40 $0.45
CLASS 47 4X2 SERVICE $0.45 $0.40
CLASS 48 4X4 SERVICE $0.45 $0.
CLASS 55 CREW TRUCKS $27.$27.
CLASS 56 DUAL WHEEL $0.$0.
CLASS 57 DUMP/FLATBED $1.50 $1.
CLASS 58 LINE/DIGGER $22.$27.
CLASS 65 ROAD TRACTORS $0.$0.
CLASS 66 TANDEM DIGGERS $40.$40.
CLASS 67 BUCKET/LADDER $30.$30.
CLASS 68 DOUBLE BUCKET $30.$30.
CLASS 75 CRAWLERS $200.$225.
CLASS 76 TRENCHER/PLOWS/BORES $10.$15.
CLASS 77 A TV'$50.$52.
CLASS 78 SNOWCATS $225.$200.
CLASS 79 CRANES $150.$200.
CLASS 85 COMPRESSORS/CHIPPERS $17.$17.
CLASS 86 SMALL TRAILERS $45.$45.
CLASS 87 LOWBOYSfTRAILERS $0.$0.
8/8/96