Electric Track

Sun, July 31, 2016

8:00 a.m. - 12:00 p.m.

CFC Pre-conference Workshop

 

E01. KRTA Certification, Phase I
Burton Benkwith, Regional Vice President, CFC
John Grant, Vice President, Events and Training, CFC
Bobbi Jeffries, Regional Vice President, CFC

Since 1975, CFC has produced the Key Ratio Trend Analysis (KRTA), an annual report that tracks the median value of 145 financial and operational ratios for participating distribution cooperatives over the previous five years. To help you get the most out of this annual analytical tool, CFC has developed a three-phase KRTA certification program that will help co-op employees improve their understanding of the KRTA data and process.

During the half day workshop, registrants will gain a basic understanding of KRTA's five peer groupings and 10 categories, how to download KRTA reports from the CFC website, basic ratio definitions, how ratios are calculated and where the underlying data come from.  Upon successful completion of phase 1( including a 1 hour exam), registrants will return to their cooperatives with a solid skill set to analyze KRTA ratios using new    techniques and perspectives, and will be well-positioned for the deeper, analytical dive offered at a later date in Phase 2.

Course Level: Basic
Field of Study: Finance
CPE Hours: 4.8 CPE
Constitution A- Constitution Level

 

1:00 p.m. - 5:00 p.m.

Pre-Conference

 

E02. Fundamentals of the Electric Distribution System

Gary, Pfann, P.E., Director of Executive & Staff Education, NRECA
Constitution C- Constitution Level

As an accountant or consultant, you are involved in recording or auditing transactions that account for all aspects of the electricity sold to the members from the initial service order, to the construction of plant, to billing and collecting. How well do you understand the electric plant distribution system and how electricity is sold and distributed to your members, however? The goal of this pre-conference session is to discuss the electric distribution system from a non-engineering perspective in order to better understand the electric service the co-op provides and how it is provided.

Course Level: Basic
Field of Study: Auditing
CPE Hours: 4.5 CPE

Constitution C- Constitution Level

 

 

 

E03. Preparing, Understanding and Presenting the Form 7
Kim Mikkelsen, President KW consulting

Constitution B – Constitution Level

Electric utility financial reporting and accounting is driven by a uniform system of accounts resulting in industry wide standardization and comparability through the Form 7 This pre-conference session will discuss the importance of the Form 7 in a cradle to grave format, starting with an overview of the Uniform System of Accounts and then progress to preparing the Form 7. The preconference session will then address how to analyze the data obtained in a Form 7 and the conclude with how to present such data to the Board of Directors.
Course Level: Basic
Field of Study: Accounting

CPE Hours: 4.5 CPE


 

 

 

E04. Electric Utility Plant Accounting, Work Orders, Other Plant Accounting Topics & Depreciation
Robert Benson, Retired, Field Accountant, Rural Utilities Service, U.S. Department of Agriculture
Constitution A- Constitution Level

This session is for all employees of utilities who have any part in the utility plant construction and retirement process. It will discuss all aspects of the Work Order Accounting System including - RUS/FERC requirments, the purpose and process (types and includible costs), record units, continuing property records, the basis for depreciation, requirements of RUS Bulleting 183-1, sample depreciation rates, and when & how to use dpreciation studies.
Course Level: Basic
Field of Study: Accounting

CPE Hours: 4.5 CPE

 

 

9:10 a.m. - 10:10 a.m.

Electric Track: Concurrent

 

E05. Financial Forecasting - A Walkthrough of the new CFC Financial Forecasting Model
Johnny Vaughn, Senior Electric Program Analyst, CFC
Marcelo Moraes,Senior Consultant, Financial Advisory Services, CFC
Independence B-E Independence Level

This session will be a high level review from the input side…from preloaded data to what has to be entered, to the new graphs and analysis section. Learn how to spend more time analyzing where your cooperative is heading and less time inputting data.
Course Level: Basic
Field of Study: Finance

CPE Hours: 1 CPE

 

 

 

E06. Is Broadband Right for You?
Mike Burrow, President & CEO NineStar Connect
Scott Hiatt, CPA Chief Financial Officer NineStar Connect
Constitution C-E Constitution Level

What are the factors driving diversification into the broadband business? What business models are being considered? What goals and objectives are important to Boards of Directors? What makes expansion into broadband a viable consideration after cooperatives backed away from diversification in the early 2000s? Our panel of co-op personnel will address these questions through a discussion of the investigation and operating stages of a broadband business.
Course Level: Basic
Field of Study: Finance

CPE Hours: 1 CPE

 

 

 

E07. Work Order Considerations - Is your System Working Properly?
Woody Trimble, Senior Manager & Utility Consultant, Jackson Thornton & Co.
Independence Ballroom – Independence Level
This session will focus on and discuss the keys to an efficient work order system. It will also provide examples of the impact to the financial statements of what can happen if too little or too much cost is charge to the clearing accounts. Additionally, we often times wonder at what level a purchase of an asset should be capitalized or expensed. To assist in answering this question, the question of "what makes an effective capitalization policy" will also be addressed.
Course Level: Basic
Field of Study: Specialized Knowledge and Application
s
CPE Hours: 1 CPE

 

 

10:25 a.m. - 11:20 a.m.

Electric Track: Concurrent

 

E08. Financial Management: Understanding and Evaluating Cash Flow
Kim Mikkelsen, President KW Consulting
Independence B-E Independence Level
This session will address components of cash flow, how to review your systems sources/uses of cash, and understanding the impact the decisions made on how sources of cash are utilized will impact a co-op's equity, financing and rate decisions.
Course Level: Basic
Field of Study: Accounting
CPE Hours: 1CPE

 

 

 

E09. Options for Special Equipment
Woody Trimble, Senior Manager & Utility Consultant, Jackson Thornton & Co.Thronton
Constitution C-E – Constitution Level
This session will discuss the pros and cons of different options to account for special equipment.
Course Level: Basic
Field of Study: Specialized Knowledge and Applications

CPE Hours: 1CPE

 

 

12:45 p.m. - 1:45 p.m.

Electric Track: Concurrent

 

E10. Understanding the Role of the Board in Financial Reporting Matters
Terry McMichael, CPA, CGMA, Partner, McNair, McLemore & Middlebrooks, LLP
Independence B-E – Independence Level
This session will focus on understanding the role and responsibilities of the electric cooperative board in financial planning and financial decision making.  Discussion will  include identifying some key financial decisions boards make, key financial documents and ratios important to the board, understanding the basics of allocating and retiring capital credits and the company’s equity policy and understanding ratemaking basics. 
Course Level: Basic
Field of Study: Specialized Knowledge and Applications
CPE Hours: 1 CPE

 

 

 

E11. Inventory Management Decision Making Toolkit - Knowing When to Make a Change
Kate Frank Vice President - Corporate services, South Central Indiana REMC;
Shane Smith PE, Manager of Operation and Engineering; Utilites District of Western Indiana
Constitution C-E – Constitution Level
Inefficient workflow results in increased labor cost, lost time, decreased productivity. Stock-outs result in material shortages which can delay jobs and ultimately lead to unsatisfied members. To address these issues and to identify opportunities for improvement, look at a toolkit that was developed through a leadership development program sponsored by Hoosier Energy and come away with  new ideas on how to improve your Inventory Management
.Course Level: Basic
Field of Study: Accounting
CPE Hours: 1 CPE

 

 

2:10 p.m. - 3:05 p.m.

Electric Track: Concurrent

 

E12. The 85-15 Test: How to Calculate and Avoid Potential Pitfalls
Russ Wasson, CPA, Senior Associate Director - Tax, Finance & Accounting Policy, NRECA
Bill Miller, CPA, Tax Partner, Bolinger, Segars, Gilbert & Moss LLP
Constitution C-E – Constitution Level
In general, electric cooperatives are exempt from federal income taxes under Section 501©(12) of the Internal Revenue Code provided that at least 85% of income is received from members for the sole purpose of meeting losses and expenses. This session will walk-through the requirements of the so-called 85-15 Test by discussing what is and is not member income, distinctions between member income versus member related income, and when income from a member is "non-member" for purposes of the 85-15 Test. We will walk-through a typical calculation and conclude with a discussion of transactions that can potentially cause the cooperative to fail the 85-15 Test depending on how such transactions are structured.
Course Level: Intermediate
Field of Study: Tax

CPE Hours: 1 CPE

 

 

 

E13. Load Forecasts and Impact on Your Co-op's Budget
Natasha Henderson, Manager of Strategic Planning, Golden Spread Electric Cooperative, Inc.
Independence Ballroom – Independence Level
Uncover the connections between the Distribution Load Forecast  and the role it plays in the cooperative construction work plan, power costs, capital growth, and ultimately the rates charged to your membership.  This session will look at the Load Forecast in a situation where the G&T is central in developing the load forecast for its individual cooperative members.
Course Level: Overview
Field of Study: Economics

CPE Hours: 1 CPE

 

 

 

E14. Preparing Yourself for Advancement within the Electric Co-op Industry
Dan Brewer, Executive Search Consultant, NRECA
Independence B-E – Independence Level
Positioning yourself to be a top candidate for promotion doesn’t happen overnight. It’s the result of combining a track record of performance with demonstrated evidence of the core leadership skills required for success. This session is to discuss the factors that Electric Co-Op Boards, C-suite executives and other management use to make promotion and placement decisions and help you evaluate how you are viewed in terms of these skills.
Course Level: Basic
Field of Study: Personal Development
CPE Hours: 1 CPE

 

 

3:20 p.m. - 4:15 p.m.

Electric Track

 

E15. Audit Quality - What You Need to know When Selecting Your Auditor
James Brackens, Jr., CPA, CGMA, VP - Ethics and Practice Quality; American Institute of Certified Public Accountants.
When evaluating audit services proposals, how do you determine the quality of the firm the Board of Directors will hire to conduct the annual financial statement audit? What steps is the American Institute of Certified Public Accountants (AICPA) taking in the area of audit quality? To address these questions, Mr. James Brackens will discuss the AICPA's audit quality initiative the peer review systems and the role of partner rotation. He will also address issues relevant to co-op personnel and the CPA in public practice.
Course Level: Overview
Field of Study: Auditing
CPE Hours: 1 CPE

Tue., Aug. 2, 2016

9:15 a.m. - 10:10 a.m.

Electric Track: Concurrent

 

E16. RUS Accounting & Loan Program Update
Diana Alger, CPA, Chief Technical Accounting and Auditing Staff, Rural Utilities Service, U.S. Department of Agriculture
Constitution B – Constitution Level
This session will include discussion on the industry wide accounting and auditing policies of the RUS, peer review requirements for auditors of RUS borrowers, and overall update of grants and loans available to electric co-ops.
Course Level: Overview
Field of Study: Accounting
CPE Hours: 1 CPE

 

 

 

E17. Financing Community Solar: What Questions Should You Be Asking?
Krishna Murthy, Vice President - Industry & Energy Analysis, CFC;
Andrew Cotter, Program Manager of Renewables, NRECA
Constitution C-E – Constitution Level
Ownership or Power Purchase Agreement? Can we take advantages of tax incentives? There are key questions that finance managers should get on the table early.  There are numerous strategies and ownership models that any co-op can pursue. This session will arm you with key questions that will help your co-op efficiently narrow down the best options for financing and structuring a community solar program.  Andrew Cotter of NRECA and Krishna Murthy of CFC will walk through these questions and provide a run-down of tools for finance and project managers looking to develop a financial forecast and an economic evaluation of a community solar project.
Course Level: Intermediate
Field of Study: Finance
CPE Hours: 1 CPE

 

 

 

E18. Internal Controls and the Electric Co-op: The Role of Risk Assesment
Heidi Lee, Principal, Jackson-Thornton & Co.
Peggy Boldissar, CPA, MBA, Ph.D. Manager Financial Accounting, Lee County Electric Cooperative
Independence B-E – Independence Level
A direct relationship exists between the degree of risk that a material weakness could exist in a particular area of a company's internal controls and the amount of attention that should be devoted to that area---more attention should be placed on areas of highest risk.  This session will include a panel discussion on understanding the complexities and requirements of the risk assessment process, including gathering the information needed to assess risk, evaluating that information, designing further internal control review procedures, and evaluating the results.
Course Level: Basic
Field of Study: Management Advisory Services
CPE Hours: 1 CPE

 

 

10:25 a.m. - 11:20 a.m.

Electric Track: Concurrent

E19. New Accounting Guidance for Leases - the Electric Perspective
Tom Kandel, CPA, Senior Accountant , Regulatory Affairs, CFC
Constitution B – Constitution Level
FASB's new accounting guidance on leases represents a fundamental change in existing practices which have evolved over the last forty years. Among other things, the new requirements are intended to address concerns regarding the off-balance sheet treatment of lease-related assets and liabilities. Learn about the key features of the new guidance and its implications on electric cooperative accounting, financial reporting and financial metrics.
Course Level: Basic
Field of Study: Accounting
CPE Hours: 1 CPE

 

 

 

E20. The Role of the G&T in Distributive Generation
Michael Henderson, VP & CFO, Arkansas Electric Cooperative Corporation
Independence B-E – Independence Level
Over the years, the technologies for DG improved by becoming more efficient and less costly.  These technical advances, combined with changing consumer needs, and the restructuring of wholesale and retail markets for electric power, have opened even more opportunities for consumers to use DG to meet their own energy needs, as well as for electric utilities to explore possibilities to meet electric system needs with distributed generation. This session will discuss what role the G&T plays in assisting the electric utilities in implementing and providing the most efficient, reliable and economic energy solutions for member and customers.
Course Level: Basic
Field of Study: Accounting
CPE Hours: 1 CPE

 

 

 

E21. Employee Use of Co-op Owned: Vehicles: Policies and Compensation
John Denison, Senior Tax Director, Adams, Jenkins & Cheatham
Constitution C-E – Constitution Level
What are the options for valuing the personal use of co-op provided vehicles? Does it matter if the employee is perpetually on call? Does the type and model of the vehicle matter? What impact does a policy have on the options available to the co-op? These questions and how to draft a comprehensive but effective policy will be addressed.
Course Level: Basic
Field of Study: Specialized Knowledge and Applications
CPE Hours: 1 CPE

 

 

1:00 p.m. - 1:55 p.m.

Electric Track: Concurrent

E22. Managing Payment Risk
Matthew Cammer, Senior Vice President Digital Business Solutions, CoBank
Independence B-E – Independence Level
This session will provide insight into the types of Payment Risk that exist with sending, receiving or processing any form of payment.  Learn tips on how to manage payment risk by utilizing fraud prevention tools and fraud awareness within organizations of all sizes.
Course Level: Overview
Field of Study: Accounting

CPE Hours: 1 CPE

 

 

 

E23. Ratemaking Trends: Stranded Costs and Distributive Generation
Jeff Wertner, The Prime Group
Independence Ballroom – Independence Level
The threat of disruptive forces on the utility industry has been limited however, economic fundamentals and public policies are likely to encourage significant future disruption to the utility business model. Technology innovation and rate structures that encourage cross subsidization of distributed energy resources (DER) and/or behavioral modification by customers must be addressed to effectively manage potential risks through this industry change.  While the regulatory process is expected to allow for recovery of lost revenues in future rate cases, tariff structures in most states call for non-DER customers to pay for (or absorb) lost revenues. As DER penetration increases, this is a cost-recovery structure that can lead to pressure to undo these cross subsidies and may result in utility stranded cost exposure. This session will focus on rate considerations related to these changes, and will focus on how one can be proactive in managing through these changes.
Course Level: Intermediate
Field of Study: Specialized Knowledge and Applications

CPE Hours: 1 CPE

 

 

 

E24. Fair Labor Standards Act - The New DOL Overtime Rules
Frank Cragle III, Attorney Hirschler Fleischer
By the time of the conference, it is anticipated that the Department of Labor (DOL) will have new regulations in place that redefine the definition of a salaried employee to increase the salary level at which over time is required. The proposed change has the potential impact of increasing the Cooperative's exposure to overtime. This session will focus on the current status of the new rules and what you need to know for compliance and other. Other relevant changes in employment law will also be discussed.
Course Level: Basic
Field of Study: Personnel/ HR

CPE Hours: 1 CPE

 

 

2:10 p.m. - 3:05 p.m.

Electric Track: Concurrent

E25. Capital Credit Retirements - Best Practices
Ty Thompson, Vice President and Deputy General Counsel - Director and Member Legal Services, NRECA
Independence Ballroom – Independence Level
The "operation at cost" principle is one of 7 unique principles that set the cooperative form of business apart from others. A co-op's patronage capital system is the cornerstone for operating at cost. Although the timing, method and amount of patronage capital retirements varies among electric co-ops based on goals set by the Board of Directors, there are basic fundamentals to be followed. This session will discuss best practices for retiring patronage capital and demonstrating the benefits of cooperative operation to your members.
Course Level: Intermediate
Field of Study: Finance

CPE Hours: 1 CPE

 

 

 

E26. Developing an Effective Line Extension Policy for YOUR System
Larry Feltner, The Prime Group
Constitution C-E – Constitution Level
Line-extension policies encompass several topics that regulators and management commonly grapple with.  Some items that warrant consideration include utility and customer incentives for line extensions, utility cost recovery of incremental cost, rolled-in pricing versus incremental pricing, risk sharing and fairness among stakeholders, the appropriate economic test for utility investments in line extensions, the necessary conditions for subsidization of new customers, and regulatory barriers to utility action.  This session is geared towards a discussion on what to include and what to avoid in your company’s line-extension policy.
Course Level: Basic
Field of Study: Specialized Knowledge and Applications
CPE Hours: 1 CPE

 

 

 

E27. Post Retirement Benefit Obligation Valuation: ASC 715 Disclosure- What has been Promised and How Much will it cost?
Howard Van Houten, Senior Manager, Actuarial Services, NRECA
Independence B-E – Independence Level
During this session we will cover the major assumptions taken in preparing the valuation, these assumptions include but are not limited to: discounts rates, mortality tables, health care cost trends and a few others. We will also review past and proposed changes in standards that may affect your valuation and look at what affect the Affordable Care Act might have.
Course Level: Intermediate
Field of Study: Personnel/HR
CPE Hours: 1 CPE

 

 

3:20 p.m. - 4:15 p.m.

Electric Track: Concurrent

E28. Capital Credits - Managing Equity of a Former Member
Reg Rudolph, General Manager, San Isabel Electric Association
Independence Ballroom – Independence Level
Electric Co-ops have historically conducted special early retirements for estates of natural persons. In light of a changing demographics, desires to more efficiently manage equity of all members (current and former), and managing the effect of unclaimed property laws among other reasons, electric co-ops are now considering other forms of special early retirements of patronage capital. Our panelists will provide case studies of non-traditional discounting and early retirement plans implemented by their respective co-ops.
Course Level: Basic
Field of Study: Finance
CPE Hours: 1 CPE

 

 

 

E29. Internal Audit Procedures for Small and Large Co-ops
Scott McAuliffe CPA, CISA, CFE Partner, Risk Advisory Services, Keiter
Independence B-E – Independence Level
The main objective of an internal audit is to assess and, when necessary, improve the effectiveness of internal business controls, risk-management plans and overall business processes. This session is to discuss assessment techniques, such as what existing documentation should be reviewed and understood by the internal auditor; analysis techniques, such as examples of substantive procedures designed to target random or specific data; and final reporting procedures.Course Level: Basic
Field of Study: Auditing

CPE Hours: 1 CPE

 

 

 

E30. NRECA Benefits Update
Karen Ford, Senior Director, Retirement Plan Operations; NRECA
Laura Schumann, Director, Retirement Product Management; NRECA
Mark Maus, Vice President, Actuarial Services & Chief Actuary; NRECA
Malcolm Slee Of Counsel, Groom Law Group
Constitution C-E – Constitution Level
Join NRECA staff to gain an understanding of how NRECA's major employee benefit plan offerings (within the structure of qualified and non-qualified plans) and how the Plans respond to changes in the rules and regulations. Review the way the Plans coordinate to support members through retirement and further the strategic and budget goals of the participating co-ops. Practical examples will include key controls and plan design choices at the co-op level, as well as an overview of the retirement readiness of plan participants.
Course Level: Overview
Field of Study: Specialized Knowledge and Applications
CPE Hours: 1 CPE

 

 

4:30 p.m. - 5:25 p.m.

Electric Track: Concurrent

E31. Capital Credits - A Q&A Panel Discussion
Ty Thompson, Vice President and Deputy General Counsel - Director and Member Legal Services, NRECA
Independence Ballroom – Independence Level
An open forum on capital credit allocation and retirement issues.
Course Level: Basic
Field of Study: Finance
CPE Hours: 1 CPE

 

 

 

E32. Form W-2 and Form 1099-MISC Round Table Discussion
Constitution C-E – Constitution Level
An open forum on payroll tax and Form 1099-MISC reporting issues and compliance.
Course Level: Basic
Field of Study: Tax
CPE Hours: 1 CPE

 

 

 

E33. Benefits Round Table Discussion
Steve Sanker, Vice President, Financial and Field Services, NRECA
Constitution B- Constitution Level
An open forum discussion on employee benefit issues.
Course Level: Basic
Field of Study: Specialized Knowledge and Applications
CPE Hours: 1 CPE