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RUS Borrower Accounting (Electric) (Paper-Based)

$315

Overview:

Apply properly and accurately the accounting principles relating to the electric utility industry. Develop a unique working knowledge of the unique accounting requirements arising from the manner in which Rural Utility Service (RUS) borrowers are financed and the nonprofit nature of borrowers organized as cooperatives.

In this independent study paper-based course, you submit assignments to an instructor, who grades them and gives you feedback. The course manual comes with a CD that supplements course content. Take up to one year to complete.

Who Should Attend?

Persons who are now, or who intend to be, office managers, accountants, or bookkeepers in offices of electric utilities that have been financed by RUS. Also directors, managers, CPA firms, lawyers, and engineers, and others interested in RUS accounting procedures.

Prerequisites:

Principles of Accounting I (ACCT1101C), or equivalent. This requirement may be met by at least one year of bookkeeping experience in a telephone company

Additional Information:

Complete course anytime within 1 year of registration date. All course materials are included.

Objectives:

Explain the specific accounting principles and terminology that apply to RUS borrowers

Use correctly appropriate forms, reports, statements, and other documents, as well as the Universal System of Accounts

Detail the accounting and administrative controls, both internal and from RUS

Recognize the accounting procedures for the typical sequence of events that occurs during the organization, pre-loan, original construction, and operating period of an electric utility cooperative

Use the applicable federal regulations and RUS issuances to guide their practice

Syllabus:

Syllabus -- RUS Borrower Accounting (Electric), ACCT2211C, Grad. School, USDA Contents:

Lesson 1: RUS BOOKS OF ACCOUNT AND ACCOUNTING FOR CASH

Lesson Overview
1. Learning Objectives
2. Lesson Assignments
Part I - RUS Books of Account
1. Introduction
2. General Ledger
3. General Journal and Specialized (Fixed) Journals
4. Journal Voucher System
5. General Fund Cash Received Records
6. General Fund Check Register
7. Accounts Payable Register
8. Consumers' Ledger
Part II - Accounting for Cash
1. Introduction
2. Internal Control
3. Receipt of Cash
4. Advances from RUS and Supplemental Lenders
5. Posting Accounts Receivable
6. Reconciling Cash, Accounts Receivable, and Revenue
7. Bank Reconciliations
8. Depositories
9. Voucher Checks and Wire Transfers
10. Cash Accounts
Lesson 1: Problems
Lesson 1: Illustrations

Lesson 2: SYSTEM OF ACCOUNTS and FUNCTIONAL ACCOUNTING

Lesson Overview
1. Learning Objectives
2. Lesson Assignments
A Note about the USoA
1. Background
2. Account Numbers and Titles
3. Discussion of Accounts
Part I - Balance Sheet Accounts
1. 100 Series of Accounts - Assets and Other Debits
  1. Utility Plant
  2. Other Property and Investments
  3. Current and Accrued Assets
  4. Deferred Debits
2. 200 Series of Accounts - Liabilities and Other Credits
  1. Equities and Margins
  2. Long-Term Debt and Other Noncurrent Liabilities
  3. Current and Accrued Liabilities
  4. Deferred Credits
  5. Contributions in Aid of Construction
3. 300 Series of Accounts - Electric Plant Accounts
  1. Intangible Plant
  2. Production Plant
  3. Transmission Plant
  4. Distribution Plant
  5. General Plant
  6. Summary
Part II - Statement of Operations Accounts
1. Operating Revenue Accounts
  1. Sale of Electric Energy
  2. Other Operating Revenue
2. Operation Expense Accounts
  1. Steam Power Generation
  2. Nuclear Power Generation
  3. Hydraulic Power Generation
  4. Other Power Generation
  5. Power Supply Expenses
  6. Transmission Expenses
  7. Distribution Expenses
  8. Customer Accounts Expenses
  9. Sales Expenses
  10. Administrative and General Expenses
3. Maintenance Expense Accounts
  1. Steam Power Generation
  2. Nuclear Power Generation
  3. Hydraulic Power Generation
  4. Other Power Generation
  5. Transmission Expenses
  6. Distribution Expenses
  7. Administrative and General Expenses
4. Other Operating Expense Accounts
5. Other Operating Income and Income Deductions
6. Nonoperating Income and Income Deductions
7. Generation and Transmission Capital
8. Extraordinary Items
Lesson 2: Problems
Lesson 2: Illustrations

Lesson 3: ACCOUNTING FOR CONSTRUCTION COSTS

Lesson Overview
1. Learning Objectives
2. Lesson Assignments
Regulatory Update
Methods of Construction
1. Contract Construction
  1. Procurement Methods
  2. Common Contracting Characteristics
  3. Force Account Construction
Work Order Procedure
1. RUS Bulletin 1767B-2
  1. Conversion to Retirement Units
  2. Financing Eligibility for Certain Costs
Work Order Cost Records
1. Construction Work Order
2. Retirement Work Order
3. Inventory of Work Orders
4. Location Plant Work Order Procedure
5. Blanket Work Orders
6. Special Accounting
7. Unitization by Record Units and Classification by Primary Accounts
Lesson 3: Problems
Lesson 3: Illustrations

Lesson 4: ACCOUNTING PERIOD OF ORGANIZATION AND ORIGINAL CONSTRUCTION

Lesson Overview
1. Lesson Objectives
2. Lesson Assignments
Stages of Development
1. Organization Period
2. Preloan Period
3. Original Construction Period
4. Operating Period
Sequence of Events: Organization, Preloan, and Construction
1. Accounting Procedure
2. For Purposes of Illustration
Lesson 4: Events: Service Electric Cooperative
Lesson 4: Problems
Lesson 4: Illustrations

Lesson 5: THE OPERATING PERIOD

Lesson Overview
1. Lesson Objective
2. Lesson Assignments
Meter Reading, Accounting, and Collecting
1. Consumers' Ledger
2. Meter Reading
3. Revenues
Sequence of Events: Operating Period
Lesson 5: Events: Service Electric Cooperative
Lesson 5: Problems

Lesson 6: THE OPERATING PERIOD - YEAR END

Lesson Overview
1. Lesson Objective
2. Lesson Assignments
Lesson 6: Events: Service Electric Cooperative
Lesson 6: Problems

Lesson 7: THE FINANCIAL AND STATISTICAL REPORT

Overview
1. Learning Objectives
2. Lesson Assignments
A Note About the Internet-Based Data Collection System
1. Manual Reporting
Guides to RUS Reporting Requirements
The Monthly Report
Form 7, Parts A and C
1. Part A. Statement of Operations
2. Part C. Balance Sheet
Form 7 (Other Parts) and Form 7a
Illustration of Completed RUS Form 7
Lesson 7: Problems
Lesson 7: Illustrations

Lesson 8: ANALYSES OF FINANCIAL STATEMENTS

Overview
1. Learning Objectives
2. Lesson Assignments
The Value of Financial Statements
Sample Statements
1. Composite Balance Sheet as of December 31, 20X5
2. Composite Revenues, Expenses, and Patronage Capital
Common Ratios
1. Electric Plant in Service to Operating Revenues
2. Times Interest Earned Ratio (TIER)
3. Debt Service Coverage (DSC)
4. Total Utility Plant to Operating Revenue less Cost of Power, Power Production Expense and Transmission Expense
5. Total Electric Plant to Accumulated Provisions for Depreciation and Amortization
6. Patronage Capital and Operating Margins Plus Net Interest Expense to Electric Plant, Less the Provisions for Depreciation and Amortization
7. Current and Accrued Assets to Current and Accrued Liabilities
8. Defensive Interval Ratio (DIR)
9. Net Worth to Total Assets and Other Debits
10. Net Worth to Long-Term Debt
11. Net Worth to Long-Term Debt Plus Net Worth
12. Net Operating Margins to Total Operating Revenue
13. Total Operating Expenses to Total Operating Revenues
Statement of Cash Flows
1. Direct Method
2. Indirect (or Reconciliation) Method
Lesson 8: Problems

Lesson 9: TECHNICAL CONCEPTS OF RUS ELECTRIC BORROWER ACCOUNTING

Overview
1. Learning Objective
2. Lesson Assignments
Utility Plant
1. Electric Plant Purchased
2. Electric Plant Acquisition Adjustments
3. Electric Plant Sold
4. Capital Gains and Losses
5. Extraordinary Property Losses
6. Donations and Contributions
  1. Customer Advances for Construction
  2. Contributions in Aid of Construction
  3. Consumers' Contribution for Debt Service
  4. Donated Capital
  5. Unclaimed Customer Deposits
  6. Guarantee on Power Contract
7. Reimbursed Costs of Line Relocation
  1. All reimbursements received
  2. Moving a line
  3. Defray maintenance expense
  4. Total amount of the reimbursement
  5. Construction and retirement work orders
Depreciation Accounting
1. Accumulated Provision for Depreciation
2. Depreciation Accounting System
  1. Method
  2. Procedure
  3. Technique
3. Calculation of Composite Depreciation Rates
4. Illustrations of Depreciation Rate Computations and Accounting Procedures
  1. Calculating a composite rate for distribution plant
  2. Calculating a composite rate for transportation equipment
  3. Accounting procedures for the trade-in of a truck with a net book value different from its trade-in value
5. Depreciation Rates
Operation and Maintenance Expenses
1. Examples of Operations and Maintenance
  1. Operations
  2. Maintenance
Minor Items of Property
Automatic Meter Reading Systems
1. Radio-Based Technology
2. Power Line Carrier Communications Systems
Supplemental Lender Transactions
1. Membership Fees
2. Subscriptions
3. Interest Receipts
4. Notes
5. Loan Proceeds
6. Capital Credits
Lesson 9: Problems

Lesson 10: CONTINUING PROPERTY RECORDS

Overview
1. Learning Objectives
2. Lesson Assignments
Plant Records
Definitions
1. Retirement Units
2. Accounting Record Unit
3. Construction Unit
4. Minor Items of Property
5. Special Equipment Items
6. General Equipment Items
7. Mass Units
8. Location Property
Benefits of a CPR System
1. Pricing Retirements
2. Control Purposes
  1. Long-Range Planning
  2. Taxes and Insurance
  3. Utility Regulations
  4. Sale or Transfer
  5. Depreciation Studies
  6. Integrity of Financial Statements
Type of Record Recommended
1. Location Property
2. Special Equipment
3. General Equipment
4. Clearing Land Rights-of-Way
5. Mass Units
  1. Cost record
  2. Identifying record
Selection of Retirement Units and Record Units
1. Retirement Units
2. Accounting Record Units
Minor Items of Property
Installation of the CPR System
Maintenance of the CPR
1. Distribution and Transmission Contract Construction
Force Account (Work Order) Construction
1. Conversion to Record Units
2. Tabulation
3. Standard Costs
4. Unitization and Distribution to Plant Accounts
5. Units Retired
Summary
Lesson 10: Problems
Lesson 10: Illustrations

Lesson 11: BUDGETING, REQUESTING, AND ACCOUNTING FOR LOAN FUNDS FROM RUS

Overview
1. Learning Objectives
2. Lesson Assignments
Loan Budget
1. Purpose 1, Distribution
2. Purpose 2, Transmission
3. Purpose 3, Generation
4. Purpose 4, Headquarters Facilities
5. Purpose 5, Acquisition
6. Purpose 6, All Other
7. Closed Budget
Primary-Budget Purpose Sheets
Financial Requirement and Expenditure Statement (FR&ES)
1. RUS Provided Information
  1. Date Received
  2. Register No.
  3. Effective Date of Adjusted Amounts
  4. Adjusted (under each budget purpose)
  5. Amount Under Stop Order or Conditional Agreement (column 2)
  6. Breakdown of Amounts Under Stop Order or Conditional Agreement as Shown Above
  7. Total Amount of Notes Executed
2. Borrower Provided Information
3. Columns 1 Through 7
  1. Column 1 - Primary Budget Purposes
  2. Column 2 - Consolidated Loan Budget
  3. Column 3 - Amounts approved for Advance
  4. Column 4 - The advance
  5. Column 5 - Total Expenditures to Date
  6. Column 6 - Cash Balance
  7. Column 7 - Advance Now Requested
4. Special Controls
  1. Special Loan Conditions (Conditional Agreement)
  2. Circumstances Arising After Loan Approval (Stop Order)
  3. Total Amount of Notes Executed
  4. Controls on Advances
  5. Amount of Loan
  6. Amount Under Concurrent Loan Control
  7. Advanced to Date
5. Certification
Loan Fund Subsidiary Records
Requirements for Approving Funds for Advance
1. Purpose 1, Distributions
2. Purpose 2, Transmission
3. Purpose 3, Generation
4. Purpose 4, Headquarters Facilities
5. Purpose 5, Acquisitions
6. Purpose 6, All Other
Budgetary Control and Advance of Funds Under Concurrent Loans
1. Consolidated Loan Budget Records
  1. Amounts in Budget - RUS and Other
  2. Entries made by RUS on the Form 605
2. Controls on Advances
  1. Limit on Advances from RUS
  2. Establishing Funds as Approved for Advance
3. Requisitioning and Advancing Funds
  1. General
  2. Requisitions for First 50% of RUS Concurrent Loan Funds
  3. Requisitions for Funds from Supplemental Lenders
  4. Requisitions for the Second 50% of RUS Concurrent Loan Funds
Lesson 11: Problems
Lesson 11: Illustrations

Course Details

CODE:	ACCT2211C
TYPE:	Distance Education
LENGTH:	Up to 1 Year(s)
CREDITS:	2

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> Objectives
> Course Syllabus

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