HomeMy WebLinkAbout13 Financial Reports Variances Agenda Item # 13
,UCKEE ;
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WORKSHOP
To: Board of Directors
From: Bob Mescher
Date: August 05, 2009
Subject: Comparison of the Treasurer's Report Financial Statements to the
Budget Report
1. WHY THIS MATTER IS BEFORE THE BOARD
The Board requested an explanation of the variances between financial reports
presented at the July 15, 2009 Board Meeting.
2. HISTORY
Staff prepares various financial reports for different purposes.
The Balance Sheets and Statements of Revenues, Expenses and Changes in Fund
Equity are snapshots of the District's financial position as of a certain date. The
statements are formatted in accordance with Generally Accepted Accounting
Principles (GAAP) and include all sources of funding (the General Fund, designated
funds, and restricted funds.) The Operating Budget Report compares the current year-
to-date operating income to the budget and shows the remaining budget balances
available for the remainder of the year. This is consistent with the traditional format of
the approved budget as presented to the Board, not GAAP style reporting. The
Operating Budget Report excludes balance sheet information, non-operating revenue
and expenses, non-cash transactions (such as depreciation), and designated fund
and restricted fund transactions.
The Balance Sheets state the balances of the assets, liabilities and equity (net assets)
as of a single point in time and for the prior year.
The Statements of Revenues, Expenses and Changes in Fund Equity report the year-
to-date revenue and expenses, and also the equity balance as of a certain date and
for the prior year. The reported revenues are conservatively stated in the Statements
of Revenues, Expenses and Changes in Fund Equity throughout the year and include
only revenue as it is billed, until year-end. (In any month, a portion of the electric and
water used by customers is not billed until the following month. This is called "unbilled
revenue.") At the end of the year, unbilled December revenue is estimated and
accrued based on actual bills generated the following month.
The Operating Budget Report reports not only the operating results, but lists the
budget balances available for the remainder of the year. It is a useful tool to identify
the need to make adjustments, such as changes in capital project spending, changes
in customer rates, or shifting funds from budgeted operating expenses to capital
projects. To make these decisions, it is necessary to include unbilled revenue.
Based upon the results of the June 30, 2009 Operating Budget Report, no
adjustments were necessary.
3. NEW INFORMATION
Attached is a reconciliation of the Statements of Revenues, Expenses and Changes in
Fund Equity (Treasurer's Report) and the Operating Budget Report (Budget Report),
for Electric and Water separately. Here are the explanations of the differences in
revenue and expenses:
1. The Budget Report Revenue includes estimated unbilled revenue.
2. The Budget Report Electric Miscellaneous Revenue includes (A) $10,183
estimated unbilled revenue, but excludes (B) $76,830 Solar Initiative Revenue
that is restricted and (C) <$94,222> WAPA Purchase Power Debit that is
reclassified as power purchase expense.
3. The Budget Report Power Purchases Expense is including the reclassified
$94,222 from note #2 above.
4. The Budget Report Distribution Maintenance excludes deferred maintenance
expense because it is a non-cash expense.
5. The Budget Report excludes depreciation expense because it is a non-cash
expense.
6. The Budget Report Water Miscellaneous Revenue excludes Donner Lake and
Glenshire surcharges that are designated or restricted.
4. FISCAL IMPACT
There is no fiscal impact associated with this workshop.
5. RECOMMENDATION
Review report and provide comments.
Mary Chap n Michael D. Holley
Administrative Services Manager General Manager
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Electric Statements of Revenues, Expenses and Changes in Fund Equity
Period ended June 30, 2009
Treasurer's Report Budget Report Variance
Operating revenues:
Residential sales 5,364,007.60 6,416,975.00 1,052,967.40
Commercial sales 1,724,067.41 2,026,832.00 302,764.59
Large commercial sales 857,763.80 1,031,646.00 173,882.20
Sale to public authorities 1,335,792.33 1,508,704.00 172,911.67
Interdepartmental sales 527,464.06 603,189.00 75,724.94
Total Energy Sales 9,809,095.20 11,587,346.00 1,778,250.80
Standby fees - - -
Misc operating revenue 106,435.21 134,010.00 27,574.79 2
Misc rents 5,485.00 5,485.00 -
Interdepartmental rent 174,327.96 174,328.00 0.04
Total operating revenues 10,095,343.37 11,901,169.00 1,805,825.63
Operating expenses:
Power purchases 5,107,994.33 5,202,216.00 94,221.67 s
Distribution operations 1,348,702.36 1,348,702.00 (0.36)
Distribution maintenance 182,798.61 151,029.00 (31,769.61) 4
Administrative and general 1,034,760.73 1,034,761.00 0.27
Consumer services 794,512.55 794,513.00 0.45
Depreciation 808,510.94 - (808,510.94) 5
Total operating expenses 9,277,279.52 8,531,221.00 (746,058.52)
Net operating income/(loss) 818,063.85 3,369,948.00 2,551,884.15
Non-operating revenues/(expenses)
Income from investments 91,029.28
Interest expense (357,532.26)
Gain/(loss) on sale of assets 2,266.25
Net non-operating revenues/(expenses) (264,236.73) The Budget Report excludes
Net income/ (loss) $ 553,827.12 non-operating revenues and
expenses, capital contributions, and
Capital contributions 1,918,780.46
changes in net assets.
Net change in net assets 2,472,607.58
Net assets, beginning of year 32,880,678.49
Net assets, end of year $ 35,353,286.07
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Water Statements of Revenues, Expenses and Changes in Fund Equity
Period ended June 30, 2009
Treasurer's Report Budget Report Variance
Operating revenues:
Residential sales 3,747,143.87 4,282,168.00 535,024.13
Commercial sales 363,729.46 415,144.00 51,414.54
Interdepartmental sales 742.26 742.00 (0.26)
Total water sales 4,111,615.59 4,698,054.00 586,438.41
Standby fees - - -
Misc operating revenue 590,405.68 464,783.00 (125,622.68) 6
Misc rents 16,778.88 16,779.00 0.12
Hydrant revenue 57,757.98 66,198.00 8,440.02
Total operating revenues 4,776,558.13 5,245,814.00 469,255.87
Operating expenses:
Power purchases 615,761.89 615,762.00 0.11
Distribution operations 1,063,615.58 1,063,615.00 (0.58)
Distribution maintenance 471,665.81 471,666.00 0.19
Administrative and general 598,685.05 598,685.00 (0.05)
Interdepartmental rent 174,327.96 174,328.00 0.04
Consumer services 236,129.79 236,130.00 0.21
Depreciation 1,518,559.04 - (1,518,559.04) 5
Total operating expenses 4,678,745.12 3,160,186.00 (1,518,559.12)
Net operating income/(loss) 97,813.01 2,085,628.00 1,987,814.99
Non-operating revenues/(expenses)
Income from investments 104,436.30
Interest expense (790,678.53)
CFD Admin Exp Reimb -
Gain/(loss) on sale of assets 3,211.50
Net non-operating revenues/(expenses) (683,030.73) The Budget Report excludes
non-operating revenues and
Net income/ (loss) $ (585,217.72) expenses, capital contributions, and
changes in net assets.
Capital contributions 5,191,495.95
Net change in net assets 4,606,278.23
Net assets, beginning of year 57,596,101.44
Net assets, end of year $ 62,202,379.67