20030911Revised Accounting Process.pdf

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PACIFICORP
PACIFIC POWER UTAH POWER
UTIL_.~~.j c=1"i.SION
VIA ELECTRONIC MAIL and FEDERAL EXPRESS
September 10, 2003
Idaho Public Utilities Commission
472 West Washington
Boise, ill 83702-5983
Attention: Randy Lobb
Re:Docket No. PAC -O2-
Order No. 29265
Dear Randy:
825 NE Mu/tnomah
Portland, Oregon 97232
[phone]
PacifiCorp (d.a. Utah Power & Light Company) hereby submits for filing an original
and five copies ofPacifiCorp s revised accounting process reconciling its property
records and present a plan for implementation of same for Staff review.
Identification and development of improved internal processes to provide timely
notification to Corporate Business Services (CBS) Asset Accounting of all
transactions related to spare equipment necessary for inclusion in company
Continuing Property Records ledger (CPR). Identified processes should include
timely notification to CBS Asset Accounting of all spare equipment additions
replacements, retirements and transfers. Method of notification to CBS Asset
Accounting of all transactions related to spare equipment shall be further identified
and developed.
Process improvements need to be communicated and enforced by responsible areas.
Power Delivery shall perform annual physical inventory reviews at Idaho spare
equipment yards and update SAP Work Management (Work Management).
CBS Asset Accounting shall reconcile from Work Management to the Company
CPR ledger and process required adjusting entries to the CPR ledger.
SPARE EQUIPMENT
1. Needed Improvements
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CASE NO. PAC-02-
ORDER NO. 29265
PacifiCorp
9/10/03
Page 2 of 4
Semi -annual meetings shall be scheduled on an ongoing basis by CBS Asset
Accounting and Power Delivery to discuss current processes, process improvements
and the reconciliation process.
2. Status of Needed Improvements
Key people in CBS Asset Accounting and Power Delivery have been identified and
formal meetings have taken place to discuss the coordination of a physical inventory
review. No formal meetings to discuss on-going process improvements between CBS
Asset Accounting and Power Delivery have taken place but will be scheduled by
October 31 , 2003.
Power Delivery performed a review in July 2003 of the capital spare inventory at the
Company s Rigby and Preston spare equipment yards located in Idaho.
CBS Asset Accounting reconciled the results of the physical inventory review to the
Company s CPR ledger and is in the process of recording necessary adjusting entries
to the CPR ledger.
3. What Next?
Schedule meeting with responsible people in Power Delivery and CBS Asset
Accounting to discuss process improvements and determine methods for
communication of those process improvements - To be completed by October 31
2003.
Power Delivery will continue to perform annual physical inventory reviews of the
Idaho spare equipment yards and update Work Management to reflect the results of
the physical inventory reviews. CBS Asset Accounting intends to reconcile the CPR
ledger to Work Management.
CBS Asset Accounting will report to the Idaho PUC staff every 60 days on the status
of the spare parts reconciliation and any process improvements.
VEHICLES
1. Needed Improvements
Identification and development of improved internal processes to provide timely
notification to CBS Asset Accounting of all transactions related to vehicles/mobile
equipment. Improved processes should include timely notification to CBS Asset
Accounting of all vehicle/mobile equipment additions, replacements, retirements and
CASE NO. PAC-02-
ORDER NO. 29265
PacifiCorp
9/10/03
Page 3 of 4
transfers. Method of notification should include signed and approved Expenditure
Requisitions (ER's), Email notifications to a designated mailbox and appropriate SAP
Work Management (Work Management) reports. ER's and Emails shall be routed to
CBS Asset Accounting as soon as possible for timely recording of transactions to the
Company s Continuing Property Records ledger (CPR).
Process improvements need to be communicated and enforced by responsible areas.
Transport (Power Delivery) shall perform periodic physical inventory reviews and
reconcile those results with Work Management. Transport shall ensure that Work
Management is current and updated with all vehicle/mobile equipment transactions.
CBS Asset Accounting will monthly reconcile the Company s CPR ledger to Work
Management vehicle/mobile equipment reports and record necessary adjustments to
the CPR ledger.
Semi-annual meetings shall be scheduled on an ongoing basis by CBS Asset
Accounting and Transport to discuss current processes, process improvements and the
reconciliation process.
2. Status of Needed Improvements
Key people in CBS Asset Accounting and Transport have been identified and formal
meetings have taken place to discuss needed process improvements concerning the
coordination of a physical inventory review and reconciliation to the CPR ledger.
Frequent on-going discussions have also occurred regarding processes needed to keep
vehicles/mobile equipment in balance with the CPR ledger.
Transport performed a review in July 2003 of all vehicle/mobile equipment inventory.
Significant efforts by CBS Asset Accounting and Transport have included;
identifying unmatched vehicles, creation of new asset numbers in CPR ledger for
vehicles transferred, cross-referencing CPR asset numbers to vehicle numbers in
Work Management and retirement of vehicles sold.
3. What Next?
Continue to monitor and evaluate process improvements implemented by CBS Asset
Accounting and Transport in efforts to keep vehicles/mobile equipment reconciled
monthly.
Transport (Power Delivery) will continue to perform periodic physical inventory
reviews of the vehicle/mobile equipment and update Work Management to reflect the
results of the physical inventory reviews. CBS Asset Accounting intends to reconcile
the CPR ledger to Work Management.
CASE NO. PAC-02-
ORDER NO. 29265
PacifiCorp
9/10/03
Page 4 of 4
CBS Asset Accounting will report to the Idaho PUC staff every 60 days on the status
of the vehicles/mobile equipment reconciliation and any process improvements.
Sincerely,
D. Dou Larson
Vice President, Regulation
cc:Terri Carlock
Alden Holm
Jean Jewell
Joe Leckie