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RCC provides a wide range of business process and data solutions among its services. RCC’s unique ability to combine functional expertise with technical knowledge adds immediate value to the customer’s software systems and business processes.

Click on some of RCC’s most popular services that are listed below to find out more:

TAX ACCOUNTING AND COMPLIANCE
Tax departments of asset-intensive corporations are continuously asked to do more with less in an ever changing compliance and regulatory environment.

The tax department bears responsibility for computing and defending one of the single largest expense items on the income statement – income taxes. Rate-regulated and asset- intensive businesses carry the additional burden of supporting one of the largest liabilities on the balance sheet – accumulated deferred income taxes – and providing support for a rate-base deferred tax calculation. The need to meet the requirements of multiple bodies – including the IRS, state departments of revenue, federal regulatory agencies, and state regulatory commissions – means that tax departments are challenged by competing external deadlines. Requests from financial reporting, planning, information technology, and other internal groups add to the burden of tracking the capital asset lifecycle for tax purposes. By partnering with RCC, tax departments can meet these challenges more efficiently and effectively.

Tax Depreciation: The single largest deduction on the tax return requires the greatest level of time and effort. RCC’s consultants assist asset-intensive companies with their tax depreciation calculations to support budget estimates, return filings, and forecasts for planning and regulatory purposes. RCC also helps with changes in methods of tax accounting, which can result in significant impacts to foregone and future depreciation. Deferred Income Taxes: Rate-regulated utilities are required to track accumulated deferred income taxes under ASC 740 (FASB 109) as well as ASC 980 (FASB 71 / APB 11). RCC’s consultants leverage industry leading solutions to assist with reconciling accumulated deferred income tax balances for plant and non-plant temporary differences. Additionally, RCC assists with supporting property and non-property regulatory assets and liabilities and leveraging technology solutions to properly track the movement of flow through and excess deferred income taxes.

Tax Provision: Accurate and timely tracking of current and deferred tax expense including permanent and temporary differences and their impact to the effective tax rate is typically the last calculation in the month-end closing cycle. Tax departments are asked to close their books within an ever dwindling time-frame, while upstream closing delays and re-opens shorten the window further. RCC provides expert technical and functional guidance, resulting in streamlined closings, full Schedule M Item automation, and greater reporting transparency throughout the organization.

Tax Basis Balance Sheets: Internal management and external auditors are increasingly requiring that companies provide support for their cumulative tax basis. RCC provides a comprehensive Tax Basis Balance Sheet (TBBS) solution utilizing double-sided journal entry logic to account for all book-tax differences including current year Schedule M items and prior period adjustments.

Tax Data Cleanup and System Configuration: Mergers, changing technology, employee turnover, and non “tax friendly” system implementations often leave tax departments with systems that are ineffective and unreliable. Tax departments may find themselves computing provision and fixed asset data on spreadsheets in order to overcome the limitations of data or system configuration. As systems experts, RCC consultants are able to cleanse data and work closely with tax, fixed asset, and IT departments to implement best practice system configuration.

Audit Remediation: Tax departments will occasionally be tasked with clearing existing audit deficiencies. RCC specializes in identifying the root causes of deficiencies while working with tax departments to correct data and processes in order to help prevent a future failure in controls. Additionally, RCC provides training on best practice system strategies and controls.

FIXED ASSET ACCOUNTING
New departmental challenges arise every single day related to massive capital activity to replace aging infrastructure, increasingly complex regulatory requirements, knowledge loss due to a retiring workforce, active M&A and divestiture environments, and the list goes on. As the governing body of the capital asset lifecycle, fixed asset departments are required to comprehend the impact of these new challenges, while continuing to account for capital spending and fixed asset activity in an operationally efficient manner. The good news is that fixed asset departments are up for the challenge, and with the experienced assistance of RCC, innovative and leading practice solutions can be implemented quickly. Below is a list of challenges that RCC has recently helped customers solve:

Month-End Process Support and Optimization: Wash, Rinse, Dry, Repeat… or rather Run, Reconcile, Remediate, Repeat. Month-end close is always around the corner. Break the cycle of the department-absorbing month-end process by analyzing and resolving root-cause issues that create out of balances, calculation discrepancies and surprises, poor system performance, delayed notifications on critical data updates, and top-side journal entries. In addition, RCC can alleviate your staffing shortages during critical times with expert closing support services.

Plant Closing Backlog Mitigation: Placing construction work-in-progress (CWIP) in-service in a timely manner is perhaps the most significant impact a fixed asset department can have on financial reporting. Ensure that your department has the proper controls, notifications, systems, and processes in place to mitigate any potential closing backlog.

Calculations of Tax Repairs and Other Tax Basis Adjustments: The need for inter-departmental communication between Fixed Asset and Tax departments is at an all-time high. The issuance of the final tangible property repair regulations (for many RCC clients), requires that new solutions are implemented to track new “tax” requirements on capital dollars throughout the entire asset lifecycle. RCC helps ensure that the most long-term value is realized from your tax repairs solution by considering all up-stream and down-stream system and process design implications.

Capitalization Policy Guidance and CPR Alignment: Properly refreshing your company’s capitalization policy guidance to include new technologies and aligning that policy to inventory and property unit catalogs ensures that your entire organization will be speaking the same language when it comes to fixed assets. Furthermore, properly reflecting these changes in your EAM, WMS, GIS, and Asset Accounting systems will mitigate data translation discrepancies further enhancing the effectiveness of integration.

Cost of Removal and Retirement Tracking: RCC ensures that proper systems and controls are in place to accurately account for Cost of Removal (“COR”) and retirements in a timely manner. Subsequently, this helps avoid artificially extending the expected lives of assets during depreciation studies, reserve adequacy discrepancies from regulators, and negatively impacting income and property tax calculations.

RATES AND REGULATORY
Rates and regulatory departments are critical to the finance function of a rate-regulated utility. These departments are tasked with supporting the calculation that sets the revenue requirement and rate of return for the business. RCC enables the rates and regulatory function to accurately support the rate filing with ease, and aligns the tax and accounting treatment of fixed assets with the expected regulatory treatment in order to help ensure the realization of the rate of return.

Rate Case Management: Rate cases are complex, resource-intensive proceedings that require effective planning and execution to meet the various deadlines of internal and external stakeholders. RCC provides expertise in working with key internal personnel to develop timelines, issues and strategies to allow for a successful outcome.

Revenue Requirement: The Revenue Requirement is the focal point of a utility’s claim for rate relief. RCC’s experienced consultants work alongside clients’ subject matter experts to facilitate or directly develop the revenue requirement.

Interrogatory Data and Process Support: The discovery process requires coordination and organization among the various business processes that support the overall revenue request of the company. RCC provides its clients with expertise in organizing and responding to the interrogatories served by the parties in a commission proceeding.

Policy and Strategy Development: RCC has the expertise and knowledge to assist in the development of policies and strategies that allow clients to achieve regulatory goals.

Business/Revenue Planning: RCC assists with the analysis, development and evaluation of strategies/tactics for business plan forecasts based on operating budgets, capital budgets, regulatory policy, and other corporate initiatives.

Tariff Rider Mechanism Design: Utilities need to be agile and informed as regulators move toward trackers for the recovery of specific costs. RCC guides companies through the perceived “de-risking” that tariff riders can create.

Income Taxes and Accumulated Deferred Income Taxes: RCC assists with fixed asset and tax accounting support for rate cases. Included with these services are the current and deferred income tax expense calculations for the revenue requirement as well as the incorporation of NOL deferred tax assets and ITC amortization. RCC also assists with the support of normalization history and treatment.

SYSTEM ARCHITECTURE AND IMPLEMENTATION
Data quality related to the capital asset lifecycle is of paramount importance to asset-intensive industries as it is the foundation for critical business decisions and comprises some of the largest line items on the balance sheet and income statement. At RCC, we believe that data quality is a product of actual business processes and systems implementations over time. If business processes and/or systems are architected and implemented without a design that considers holistic impacts to all departments affected by the capital asset lifecycle, then it is only a matter of time before company-wide data quality suffers. The challenge for many rate-regulated companies is that a large number of stakeholders and departments utilize data with varying – and, in some cases, competing – requirements and expectations. RCC specializes in this complex systems implementation environment and has the functional and technical experience and expertise to navigate your company to the best possible solution. RCC’s mix of experienced industry professionals, proven functional implementation leaders, and technical consultants come to the project with the foresight to understand how even seemingly small design considerations impact the broader company.

Complex, Multi System Functional and Technical Design: The majority of RCC clients operate in extremely complex, multi system/multi-stakeholder environments. With various ERP, EAM, WMS, GIS, Scheduling, Asset Accounting, Tax, Regulatory, Budgeting, Data Warehouse, Business Intelligence, and HR systems in use by various Operational Departments, Fixed Asset Accounting, Corporate Accounting, Tax, Regulatory, Financial Reporting, and IT departments. The Cartesian product in the resulting requirements matrix of all these systems and departmental stake holders is… well, let’s just say that we understand why you are reading this document.

Project Management and Change Management Leadership: In a multi-stakeholder environment, strong project leadership is essential to make progress as well as ultimately promote long-term user adoption. All RCC project managers are also functional and system experts with extensive experience and successful track records. RCC project managers have, on average, over 15 years of industry experience providing hands-on project leadership.

Mergers and Acquisitions Assistance: Perhaps one of the most challenging projects RCC clients face are related to M&A activity. RCC has the experience to assist with M&A projects related to small company acquisitions/divestitures, or large company mergers with an accompanying transformative financial system selection and operational efficiency.

RCC is committed to providing leading-practice solutions to all or partial aspects of your system implementation or upgrade project lifecycle including:

  • Requirements Gathering
  • Current-State vs. Future-State Documentation
  • Application Design & Configuration
  • Data Cleansing and Standardization
  • Data Conversions
  • Integration Design & Development
  • Testing Strategy and Execution
  • Training Material Creation & Delivery
  • Long-Term System Support
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