[Code of Federal Regulations] [Title 7, Volume 11] [Revised as of January 1, 2003] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR1767.28] [Page 881-884] TITLE 7--AGRICULTURE CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE PART 1767--ACCOUNTING REQUIREMENTS FOR RUS ELECTRIC BORROWERS--Table of Contents Subpart B--Uniform System of Accounts Sec. 1767.28 Customer accounts expenses. The customer accounts expense accounts identified in this section shall be used by all RUS borrowers. Customer Accounts Expenses (Operation) 901 Supervision 902 Meter Reading Expenses 903 Customer Records and Collection Expenses 904 Uncollectible Accounts 905 Miscellaneous Customer Accounts Expenses Customer Accounts Expenses (Operation) 901 Supervision This account shall include the cost of labor, employee pensions and benefits, social security and other payroll taxes, injuries and damages, and expenses incurred in the general direction and supervision of customer accounting and collecting activities. Direct supervision of a specific activity shall be charged to Account 902, Meter Reading Expenses, or Account 903, Customer Records and Collection Expenses, as appropriate. (See Sec. 1767.17(a).) 902 Meter Reading Expenses This account shall include the cost of labor, employee pensions and benefits, social security and other payroll taxes, injuries and damages, materials used, and expenses incurred in reading customer meters, and determining consumption when performed by employees engaged in reading meters. Items Labor: 1. Addressing forms for obtaining meter readings by mail. 2. Changing and collecting meter charts used for billing purposes. 3. Inspecting time clocks and checking seals when performed by meter readers and the work represents a minor activity incidental to regular meter reading routine. 4. Reading meters, including demand meters, and obtaining load information for billing purposes. Exclude and charge to Account 586, Meter Expenses, or to Account 903, Customer Records and Collection Expenses, as applicable, the cost of obtaining meter readings, first and final, if incidental to the operation of removing or resetting, sealing or locking, and disconnecting or reconnecting meters. 5. Computing consumption from meter reader's book or from reports by mail when done by employees engaged in reading meters. 6. Collecting from prepayment meters when incidental to meter reading. 7. Maintaining record of customers' keys. 8. Computing estimated or average consumption when performed by employees engaged in reading meters. Taxes: 1. Federal and state unemployment. 2. F.I.C.A. Employee Pensions and Benefits: The portion of employee pensions and benefits specifically identifiable with employees' labor costs charged herein or, in the absence of specific employee identification, the portion of employee pensions and benefits, allocated on the more equitable basis of either direct [[Page 882]] labor dollars or direct labor hours, applicable to the labor items detailed above, including: 1. Accruals for or payments to pension funds or to insurance companies for pension purposes. 2. Group and life insurance premiums (credit dividends received). 3. Payments for medical and hospital services and expenses of employees when not the result of occupational injuries. 4. Payments for accident, sickness, hospital, and death benefits or insurance. 5. Payments to employees incapacitated for service or on leave of absence beyond periods normally allowed when not the result of occupational injuries or in excess of statutory awards. 6. Expenses in connection with educational and recreational activities for the benefit of employees. Insurance: 1. Premiums payable to insurance companies for protection against claims from injuries and damages by employees or others, such as public liability, property damages, casualty, employee liability, etc., and amounts credited to Account 228.2, Accumulated Provision for Injuries and Damage, for similar protection. 2. Losses not covered by insurance or reserve accruals on account of injuries or deaths to employees or others and damages to the property of others. 3. Fees and expenses of claim investigators. 4. Payment of awards to claimants for court costs and attorneys' services. 5. Medical and hospital service and expenses for employees as the result of occupational injuries or resulting from claims of others. 6. Compensation payments under workmen's compensation laws. 7. Compensation paid while incapacitated as the result of occupational injuries. (See Account 924, Note A.) 8. Cost of safety, accident prevention, and similar educational activities. Materials and Expenses: 1. Badges, lamps, and uniforms. 2. Demand charts, meter books and binders and forms for recording readings, but not the cost of preparation. 3. Postage and supplies used in obtaining meter readings by mail. 4. Transportation, meals, and incidental expenses. 903 Customer Records and Collection Expenses This account shall include the cost of labor, employee pensions and benefits, social security and other payroll taxes, injuries and damages, materials used, and expenses incurred in work on customer applications, contracts, orders, credit investigations, billing and accounting, collections and complaints. Items Labor: 1. Receiving, preparing, recording, and handling routine orders for service, disconnections, transfers or meter tests initiated by the customer, excluding the cost of carrying out such orders, which is chargeable to the account appropriate for the work called for by such orders. 2. Investigations of customers' credit and keeping of records pertaining thereto, including records of uncollectible accounts written off. 3. Receiving, refunding, or applying customer deposits and maintaining customer deposit, line extension, and other miscellaneous records. 4. Checking consumption shown by meter readers' reports where incidental to preparation of billing date. 5. Preparing address plates and addressing bills and delinquent notices. 6. Preparing billing data. 7. Operating billing and bookkeeping machines. 8. Verifying billing records with contracts or rate schedules. 9. Preparing bills for delivery and mailing or delivering bills. 10. Collecting revenues, including collection from prepayment meters, unless incidental to meter-reading operations. 11. Balancing collections, preparing collections for deposit, and preparing cash reports. 12. Posting collections and other credits or charges to customer accounts and extending unpaid balances. 13. Balancing customer accounts and controls. 14. Preparing, mailing, or delivering delinquent notices and preparing reports of delinquent accounts. 15. Final meter reading of delinquent accounts when done by collectors incidental to regular activities. 16. Disconnecting and reconnecting service because of nonpayment bills. 17. Receiving, recording, and handling of inquiries, complaints, and requests for investigations from customers, including preparation of necessary orders, but excluding the cost of carrying out such orders, which is chargeable to the account appropriate for the work called for by such orders. 18. Statistical and tabulating work on customer accounts and revenues, but not including special analyses for sales department, rate department, or other general purposes, unless incidental to regular customer accounting routines. 19. Preparing and periodically rewriting meter reading sheets. [[Page 883]] 20. Determining consumption and computing estimated or average consumption when performed by employees other than those engaged in reading meters. Taxes: 1. Federal and state unemployment. 2. F.I.C.A. Employee Pensions and Benefits: The portion of employee pensions and benefits specifically identifiable with employees' labor costs charged herein or, in the absence of specific employee identification, the portion of employee pensions and benefits, allocated on the more equitable basis of either direct labor dollars or direct labor hours, applicable to the labor items detailed above, including: 1. Accruals for or payments to pension funds or to insurance companies for pension purposes. 2. Group and life insurance premiums (credit dividends received). 3. Payments for medical and hospital services and expenses of employees when not the result of occupational injuries. 4. Payments for accident, sickness, hospital, and death benefits or insurance. 5. Payments to employees incapacitated for service or on leave of absence beyond periods normally allowed when not the result of occupational injuries or in excess of statutory awards. 6. Expenses in connection with educational and recreational activities for the benefit of employees. Insurance: 1. Premiums payable to insurance companies for protection against claims from injuries and damages by employees or others, such as public liability, property damages, casualty, employee liability, etc., and amounts credited to Account 228.2, Accumulated Provision for Injuries and Damage, for similar protection. 2. Losses not covered by insurance or reserve accruals on account of injuries or deaths to employees or others and damages to the property of others. 3. Fees and expenses of claim investigators. 4. Payment of awards to claimants for court costs and attorneys' services. 5. Medical and hospital service and expenses for employees as the result of occupational injuries or resulting from claims of others. 6. Compensation payments under workmen's compensation laws. 7. Compensation paid while incapacitated as the result of occupational injuries. (See Account 924, Note A.) 8. Cost of safety, accident prevention, and similar educational activities. Materials and Expenses: 1. Address plates and supplies. 2. Cash overages and shortages. 3. Commissions or fees to others for collecting. 4. Payments to credit organizations for investigations and reports. 5. Postage. 6. Transportation expenses, including transportation of customer bills and meter books under centralized billing procedures. 7. Transportation, meals expenses, and incidental expenses. 8. Bank charges, exchange, and other fees for cashing and depositing customers' checks. 9. Forms for recording orders for services, or removals. 10. Rent of mechanical equipment. Note: The cost of work on meter history and meter location records in chargeable to Account 586, Meter Expenses. 904 Uncollectible Accounts This amount shall be charged with amounts sufficient to provide for losses from uncollectible utility revenues. Concurrent credits shall be made to Account 144, Accumulated Provision for Uncollectible Accounts-- Credit. Losses from uncollectible accounts shall be charged to Account 144. 905 Miscellaneous Customer Accounts Expenses This account shall include the cost of labor, employee pensions and benefits, social security and other payroll taxes, injuries and damages, property insurance, property taxes, materials used, and expenses incurred not provided for in other accounts. Items Labor: 1. General clerical and stenographic work. 2. Miscellaneous labor. Taxes: 1. Federal and state unemployment. 2. F.I.C.A. 3. Property. Employee Pensions and Benefits: The portion of employee pensions and benefits specifically identifiable with employees' labor costs charged herein, or, in the absence of specific employee identification, the portion of employee pensions and benefits, allocated on the more equitable basis of either direct labor dollars or direct labor hours, applicable to the labor items detailed above, including: 1. Accruals for or payments to pension funds or to insurance companies for pension purposes. 2. Group and life insurance premiums (credit dividends received). 3. Payments for medical and hospital services and expenses of employees when not the result of occupational injuries. [[Page 884]] 4. Payments for accident, sickness, hospital, and death benefits or insurance. 5. Payments to employees incapacitated for service or on leave of absence beyond periods normally allowed when not the result of occupational injuries or in excess of statutory awards. 6. Expenses in connection with educational and recreational activities for the benefit of employees. Insurance: 1. Premiums payable to insurance companies for fire, storm, burglary, boiler explosion, lightning, fidelity, riot, and similar insurance. 2. Amounts credited to Account 228.1, Accumulated Provision for Property Insurance, for similar protection. 3. Special costs incurred in procuring insurance. 4. Insurance inspection service. 5. Insurance counsel, brokerage fees, and expenses. 6. Premiums payable to insurance companies for protection against claims from injuries and damages by employees or others, such as public liability, property damages, casualty, employee liability, etc., and amounts credited to Account 228.2, Accumulated Provision for Injuries and Damage, for similar protection. 7. Losses not covered by insurance or reserve accruals on account of injuries or deaths to employees or others and damages to the property of others. 8. Fees and expenses of claim investigators. 9. Payment of awards to claimants for court costs and attorneys' services. 10. Medical and hospital service and expenses for employees as the result of occupational injuries or resulting from claims of others. 11. Compensation payments under workmen's compensation laws. 12. Compensation paid while incapacitated as the result of occupational injuries. (See Account 924, Note A.) 13. Cost of safety, accident prevention, and similar educational activities. Materials and Expenses: 1. Communication service. 2. Miscellaneous office supplies and expenses and stationery and printing other than those specifically provided for in Account 902 and Account 903. [58 FR 59825, Nov. 10, 1993, as amended at 62 FR 42311, Aug. 6, 1997; 62 FR 43201, Aug. 12, 1997]