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ANR Rate and Recharge Step by Step

Step 12: Annual Review - Is Rate Covering Cost?

Annual Review

Review Rate Account Ledgers

At the end of the year, use your financial reporting system and the Annual Break-Even Checklist below to perform a break-even analysis and a subsidized vs unsubsidized analysis in your rate account.

Annual Break-Even Checklist


  1. Have all costs associated with rate activity been posted correctly?
  2. Have all customers been billed and income received?
  3. Compare Budget for rate to actual costs and income received?-Is  final balance within 5% of  budgeted anticipated income?

 

Perform Trend Analysis

At the end of the year, use your financial reporting system and the Trend Analysis Checklist below to perform a trend analysis in your rate account.

 

Annual Trend Analysis Checklist

  1. How much is rate fluctuating?
  2. Is the Rate covering costs?
  3. Are costs increasing or decreasing?
  4. Are customers paying in a timely manner?

 

 

What are your analysis results?

Were only allowable costs included in Rate?

No-Plan for a New or Modified Rate

Yes- Continue

 

Did separate services carry unique rates? (were the rates fair)?

No-Plan for a New or Modified Rate

Yes-Continue


Did the final rate balance fall within 5% of  the anticipated budget

Yes- Develop Existing Rate

No- Plan for a New or Modified Rate