Hyperion Planning - Requirements Document Preparation - 2

Namaste!

welcome back to the "Hyperion Planning - Requirements" blog series.

In earlier blog, we have discussed the Revenue and Expense Planning requirements.

https://padmaja-vemireddy.blogspot.com/2020/02/hyperion-planning-requirements-document.html

In this blog, we are going to continue with the rest of the budget models., Balance Sheet and Cash Flow Statements.

Balance Sheet Modelling

Fixed Assets Requirements

 
Requirement-8:


Total Utility Plants in Service

Description:

Total Utility Plants in Service includes:

•  Buildings
•  Intellectual Property
•  Generation and Transmission Assets
•  Other Fixed Assets

Manual input for Opening Balance to Total Utility Plants in Service as well as the Additions made during the current  period

Calculation:

Net Utility Plant:

Total Utility Plants in Service (Opening Balance + Changes in CWIP + Additions made +   Capitalized Interest)
(+) CWIP
(-) Accumulated Depreciation and Amortization

Note: CWIP is Construction work in progress


Current and Accrued Assets Requirements


Requirement-09:

Cash – Funds and Special Deposits

Description:

Cash Funds and Special Deposits include the Cash on hand, Cash in Construction Funds, Deposits for special purposes and all other Current Assets

• Provision to input the amounts

Requirement-10:

Materials and Other Supplies

Description:

Materials and Other Supplies includes raw materials apart from fuel and any other supplies required for power generation

• Provision for calculation of the value of Materials and Other Supplies

Calculation:

The Opening Balance is increased by the rate of inflation to arrive at the Closing Balance
   

Requirement-11:

Prepayments

Description:

Prepayments are the expenses paid in advance.
These are mostly Property Insurance.
They are recognized as expenses over the period in which the benefit from the expense is derived.

Calculation:

Prepayments = Beginning Balance + Prepaid during the period – Amount Expensed
   

Other Assets Requirement

Requirement-12:

Un-amortized Debt Discount and Extraordinary Property Losses

Description:

Un-amortized Debt Discount includes refinancing costs and other discounts yet to be amortized


Calculation:

Closing Balance = Beginning Balance  + Additional Costs incurred -  Amount Amortized
   


Requirement-13:

Other Deferred Debits and Accumulated Deferred Income Taxes

Description:

Other Deferred Debits are similar to Prepaid Expenses.

• Provision to track the Deferred Debits

Calculation:

Closing Balance = Beginning Balance + Additions – Amount expensed
   

Total Margins and Equity Requirements

Requirement-14:

Long Term Debt

Description:

Long Term Debt is classified as Other Debts.

• Provision to calculate the movement of Long Term debts

Calculations:

Closing Balance of the Long Term Debt = Beginning Balance + Additions – Repayments

Closing Balance = Beginning Balance + Additional Debts incurred - Principal Repayments
           
Net Interest Accrued unpaid = Gross Interest Accrued - Interest Payments (Expensed) - Interest Payments (Capitalized)

   

Current and Accrued Liabilities Requirements

Requirement-15:

Accounts Payable

Description:

Accounts Payable includes all the expenses which are due, but unpaid.

• Provision to calculate Accounts Payable

Calculations:

Accounts payable is calculated as follows

            Closing Balance =
            (+) Beginning Balance
            (+) Operating and Maintenance Expenditure
            (+) Capital Expenditure Payable
            (-) Fuel Cost
            (-) Payroll related Adjustment
            (-) Payment made (This is assumed to be the same as the Beginning Balance)

  

Requirement-16:

Taxes Accrued

Description:

Taxes Accrued comprises Property Taxes and Income Tax.

• Provision to calculate the Accrued Taxes at the end of the period
• Provision for entry of Taxed paid
• Provision for entry of Expense Accrued (Taxes)

Calculation:

Beginning Balance  + Total Property tax  -  Property tax payments made + Federal taxes – Taxes paid
   

Requirement-17:

Interest Accrued

Description:

Interest Accrued includes the interest payments which fall due but are unpaid

• Provision to calculate the Interest Accrued at the end of the period
• Provision to input Interest Payments made
• Provision to input the Accrued Interest

Calculation:

Closing Balance = Beginning Balance  + Interest accrued for the period – Interest payments made
   

Requirement-18:

Other Current and Accrued Liabilities

Description:

All Other Current and Accrued Liabilities are contained within this item.

• Provision to input Additions to this account
• Provision to input Deductions to be made from this account

Calculation:

 Closing Balance = Beginning Balance  + Additions during the period – Deductions during the period
   


Requirement-19:

Accumulated Operating Provisions

Description:

Accumulated Operating Provisions are made for operating expenses.

• Provision to calculate Accumulated Operating Provisions
• Provision to input the inflation rate

Calculation:

Closing Balance = Opening Balance + Inflation Rate
   

Cash Flow Modelling

The Cash Flow statement would be prepared using the Indirect Method, where Net Income is the starting point for showing the movement of cash.

Temporary Investments on the Assets side of the Balance Sheet is arrived at using a combination of Direct and Indirect methods.

Requirement-20:

Operating Receipts

Description:

Operating Receipts include the Revenue Receipts from retail, Industrial, and other Sales. It also includes the Gain on Sale of Allowances and Interest Earnings

Provision to calculate Operating Receipts

•         Revenue – Retail
•         Revenue – Industrial
•         Revenue – Other Sales
•         Gain on sale of Allowances
•         Interest Earnings

Calculation:

The Revenue figures are calculated by multiplying the respective Effective Rates by the respective Sales volume.


Requirement-21:

Production Over head and Maintenance (O&M)

Description:

• Production O&M costs are Operations and Maintenance Expenditure paid out in cash
• Provision to calculate Production O&M

Calculation:

Operating Expense-Production-Excluding Fuel + Maintenance Expense-Production



Requirement-22:

Administrative & General

Description:

Administrative & General (A&G) costs include customer service, sales related and administrative expenditure as well as General Plant Maintenance paid out in cash

• Provision to calculate Administrative and General (A&G) Costs

Calculations:

Operating Expense(Customer Service and Information) + Operating Expense(Sales) + Operating Expense(Administrative and General) +  Maintenance Expense -  Site Lease Expense


Requirement-23:

Changes in Working Capital

Description:

The Changes in Working Capital item captures movement in Working Capital during a given  period by calculating the difference between the Opening and Closing Balances of Working Capital items (e.g., Current Assets and Liabilities)

• Provision to calculate Changes in Working Capital.

The Beginning and Closing balances of the following Working Capital Assets and Liabilities:

•             Accounts Receivable
•             Materials, Supplies & Other
•             Prepayments
•             Other Current Assets
•             Accounts Payable
•             Taxes Accrued
•             Other Accruals

Calculations:

Closing Balance – Opening Balance


Note:    Negative number on a liability indicates an outflow



Requirement-24:

Income Taxes from Operations

Description:

Income Taxes from Operations includes Income Taxes paid out in cash.

• Provision to input Income Taxes

Requirement-25:

Other Disbursements

Description:

Other Disbursements includes other miscellaneous payments made in cash

• Provision to input and calculate Other Disbursements

Calculations:

Sum of all the individual expenses


Requirement-26:

Capital Expenditure

Description:

Capital Expenditure includes Generation, Transmission, Buildings and Other Capital Expenses paid out in cash

• Provision to input Capital Expenditure
• All outflows towards Capital Expenditure (Captured as part of Total Utility – Assets)
• All Capital Inflows, if any

Calculations:

All Cash Outflows towards Capital Expenditure – All Capital Inflows

In next blog, we are going to wind up by disusing the rest of the topics.

Those are., Reporting requirements and Security Matrix.

Happy Learning!

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