The Southeast Alaska Power Agency (SEAPA) board members met in Petersburg Nov. 13-14 to discuss the results of their annual audit and other business.
Independent auditing company BDO performed this year’s audit, which followed both generally acceptable auditing standards as well as government auditing standards, required because SEAPA received some $5.99 million in state grants of which $1.11 million counted as state expenditures for the fiscal year ending June 2014.
BDO’s Assurance Director Joy Merriner was present via teleconference for the meeting to review the audit. She reported no instances on non-compliance meaning SEAPA had a clean audit.
Merriner did suggest that SEAPA break out grants receivable from other accounts receivable because of the increase in grant activity over prior years. Merriner said the separation would help to track the grants impact and clarify the source of different accounts receivable.
SEAPA was awarded $3 million from the Department of Commerce, Community and Economic Development for the Swan Lake Expansion project and another $2.99 million for design of the Kake-Petersburg Intertie by the Alaska Energy Authority.
The auditor’s report noted that total assets increased by $967,576 over fiscal year 2013. “The growth in current assets reflects higher income from power sales in FY2014 and continued dedication of funds towards new and ongoing capital projects,” according to the report.
Total liabilities decreased by $603,093 compared to fiscal year 2013, which is “primarily attributable to a $700,000 reduction in long-term debt due to principal payment,” according to the auditor’s report. The total liabilities and net position for FY2013 were $157,375,416, up from the prior two fiscal years.
Merriner also noted the expense for SEAPA’s takeover of operating at Tyee from the Thomas Bay Power Authority. The transition cost SEAPA about $400,000, mainly resulting from pension-related liabilities for the employees Merriner said.
The auditor’s report also noted, “the wholesale power rate was maintained at 6.8 cents/kWh (kilowatt hour) in fiscal year 2014, a rate that has held steady for 17 consecutive years and was approved again for fiscal year 2015.”
Also approved at the meeting were the rebates to member communities. Petersburg represented about a quarter of the kWh purchases between the three member communities and will be allocated $212,301. Ketchikan represents about 53 percent of kWh purchases and will receive $462,411. Wrangell represents 22 percent of kWh purchases and will receive a $189,878 rebate.
The board also approved a resolution authorizing SEAPA CEO Trey Acteson to transfer special use permits and cost sharing agreements with the U.S. Forest Service regarding the Kake-Petersburg Intertie project. The permit is requires as a portion of the proposed power line is located on National Forest System lands. SEAPA agreed to assume ownership of the project, signing a memorandum of understand in July 2012.
The next meeting of the SEAPA board will be Jan. 21-22 in Ketchikan.
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