Ord 1978-053 - Laserfiche WebLink

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I I . 7 Depreciation on Contributions in Aid of Construction - In calculating the depreciation on year end plant in its proforma adjustment Company failed to deduct CIAC. The Company does not accrue depreciation on CIAC on the books. Depreciation expense, therefore, should be decreased $1,544 (41,185 X 3.75%). Rate Case Expenses - The Company did not make any provision for rate case expenses. We have estimated costs of $12,000 and recorrnnend that the amount be spread over a two year period. We have increased expenses by $6,000 to reflect this adjustment. Rent - The Company made an adjustment to increase rent e~)ense by $156 to reflect a normalized amount. However, it failed to adjust for nonrecurring leasehold improvements which would make the adjustment a decrease in rent expense of $637. We have decreased the adjusted operating expenses by $793 ($637 + $156) to reflect this adjustment. Payroll - The Company adjusted payroll for estimated increases to occur in 1978 and 1979 for cost of living, merit and pro- gression increases. After reviewing actual payroll data through October 1978, it appears that the estimate was overstated.. We have, therefore, reduced the payroll adjustment by $1,970. FICA taxes - The Company adjusted FICA taxes to reflect the increase in the rate to 6.05% in 1978 and 6.13% in 1979 and for the payroll increases discussed above. The Company did not adjust for the increases in the FICA base to take place 1978 and 1979 due to the difficulty in quantifying the amount. We have reduced this adjustment to reflect the decrease in the payroll adjustment discussed above. Additionally, only 89.69% of the increase will be applied to operating expenses, the remainder being capitalized or charged to other accounts.