The Rural Utilities Service (RUS), a division of the United States Department of Agriculture (USDA), has oversight of rural utilities and the loan covenants that dictate federal loans for grid expansion to businesses and residences. In order to qualify for such vital funds, RUS-regulated utilities must comply with specific account tracking.
Compliance has historically been challenging for many resource-constrained utility companies and cooperatives. HPC’s Utility Financials Accelerator eliminates many of the obstacles to efficient, accurate filing of RUS reports. Read a case study illustrating how HPC America helped Navajo Tribal Utility Authority comply with RUS regulations.
Key Challenges of RUS Compliance
- Submitting Forms 7 and 12 in an accurate and timely manner
- Passing PASD audits
- Maintaining a status of good standing
- Meeting expectations of tax payers and local governments
- Complying with loan covenants for RUS borrowers
- Setting utility rates properly, based on functional accounts
- Presenting financial statements to executive management in a proper format, by functional classification
- Responding accurately to member companies’ inquiries about what you are selling
- Costs can be disallowed by RUS or loans called back for non-compliance
- Cross-subsidization between customer classes gives rise to intervenor claims of unfairness
How HPC Utility Financials Accelerator Helps
- Satisfies the needs of RUS regulators by following prescribed accounting manuals
- Reduces risk of penalties or loan recalls
- Helps maintain status of good standing
- Provides critical data required for unbundling your rate structure
- Facilitates reporting to management
- Refines granularity of data to fully functionalize accounts for operations and maintenance
To discuss your organization’s RUS reporting needs, please contact us online or call (925) 831-4765.