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STEVE DEGUGLIELMO, CPAPOSITION: Associate, Russell Consulting
Mr. DeGuglielmo is an Associate of RUSSELL CONSULTING and is also a partner in the certified public accounting firm of Fritz DeGuglielmo Trenholm LLC located in Newburyport, Massachusetts. He has concentrated his practice on providing management consulting and auditing services to water and sewer utilities, governmental entities, and federal and state funded organizations. Examples of the services provided clients are as follows:
Utility Consulting Services
As a consultant he has provided management advisory services to utility companies such as accounting for acquisitions of plant and equipment and depreciation reserves to comply with GASB-34, evaluations of internal control systems, bond compliance and review of accounting records and annual budgets. Mr. DeGuglielmo has also performed rate studies, provided expert witness testimony in ratemaking proceedings, and mediated water and sewer rates in a litigation proceeding. A representative sample of specific engagements performed by Mr. DeGuglielmo in the utility industry is summarized as follows:
Town of Ipswich, Massachusetts
Mr. DeGuglielmo was responsible for the accounting aspects of the implementation of GASB # 34 as part of the consulting engagement team of Russell Consulting for the Town of Ipswich. The engagement included the determination and recording of proper costs, accumulation depreciation and annual depreciation expense in the accounting records of the Town of Ipswich as required by GASB #34.
Peace River/Manasota Regional Water Supply Authority
As a utility consultant, Mr. DeGuglielmo provided the Peace River/Manasota Regional Water Supply Authority with accounting and consulting services on an ongoing basis. The Authority was created by State of Florida legislation and charged with the responsibility of regionalizing the water supply in southwest Florida by constructing a pipeline from the Peace River to the counties within the Authority. The Authority includes the counties of Manatee, Sarasota, Charlotte and Desoto. The cost of the project was in excess of $20 million. Mr. DeGuglielmo performed the following specific services for the Authority:
Review of Utility Construction Costs and Accounting Records Monthly financial activity was reviewed for proper recording and classification of construction costs in the fixed asset accounting system. Specific attention was focused on the proper capitalization of construction costs, depreciation and the methodology of recovering these costs from current and future customers. He also reviewed budgets and provided management with guidance on technical matters pertaining to utility operations.
Internal Control Evaluation Evaluated the internal control system of the authority to make recommendations to improve the effectiveness of the financial management accounting and reporting system. The engagement included the study of all facets of recording transactions and accounting for assets to ensure effective controls were in place in the financial management system. Recommendations on developing procedures to improve internal control over financial assets were provided and implemented as a result of the evaluation.
Federal and State Grant Compliance The Authority received federal and state funding for its projects to regionalize the water supply of southwest Florida. Mr. DeGuglielmo was responsible for reviewing the accounting and reporting of costs of construction on government contracts for the Authority. All requests for reimbursements on the contracts were reviewed for compliance with the regulatory requirements of federal and state agencies including the U.S. Environmental Protection Agency and the Southwest Florida Management District.
Bond Compliance In the initial stages of a bond offering, Mr. DeGuglielmo provided technical assistance in developing the accounting process necessary to properly account for and comply with bond covenants as required in the bond document. He also provided technical assistance relating to financial information included in the bond document prior to issuance.
Sarasota County, Florida
Mr. DeGuglielmo was engaged as a rate consultant for Sarasota County, Florida. His responsibilities included preparation of rate cases involving the request for rate increases by private utilities in the County. The rate cases included determination of the utility rate base, contributions in aid of construction, rate design, including conservation considerations, and testifying on behalf of the County in rate hearings. Rate cases included Venice Gardens Utility, a subsidiary of Southern States Utilities, the largest private water utility in the State of Florida. The rate case methodology included determination of rate base, cost of capital and operations and maintenance costs. Conservation rates were designed and implemented as part of the rate making process.
Utility Audit Services
Mr. DeGuglielmo has provided audit services in accordance with generally accepted accounting principles to various public and private water and sewer utilities. The audits involved determination of acquisition costs of assets, proper depreciation reserves, compliance with bond covenants and examination of financial records of the utility. As a result of the audit process a management letter is provided to the board of directors and management outlining deficiencies in the financial management system and recommendations for corrective action. A representative sample of audit engagements performed by Mr. DeGuglielmo is summarized as follows:
Sarasota County, Florida
Mr. DeGuglielmo supervised the performance of the audit of Sarasota County, Florida for several years which included the Sarasota County Utilities Department. The audit included the examination of utility plant in service records and determination of related depreciation reserves, compliance with bond covenants, cost of service and customer revenues and contributions. During the audit periods the utility expanded service requiring additional plant expansions, pipelines and sources of water which were analyzed for proper recording during the audit process.
U.S. Department of Agriculture-Rural Electrification Administration (REA)
Mr. DeGuglielmo performed audits of loans provided by the Rural Electrification Administration, an agency within the U.S. Department of Agriculture, to telephone and electric companies for several years while employed with the agency. The audits included the examination of assets purchased with the funds by the utility companies for proper classification in REA’s uniform system of accounts and to comply with the loan agreement.
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