LADWP Senior Exam

Delegation

Characteristics of a Good Order:
1. Clear
2. Concise
3. Complete
4. Considerate
5. Reasonable

Order Giving Process:
1. Plan
2. Explain
3. Check (Reflective Listening)
4. Release
5. Follow Up

Supervision

1. Plan

2. Organize

3. Coordinate

4. Direct

5. Control

Plan (Supervision)

set work objectives

determine potential eventualities

select from alternative outcomes

map to time line

evaluate suggestions - ideas

Organize (Supervision)

hiring

training

skill assessment

who is needed to work

Coordinate (Supervision)

interface

combination of work efforts to complete work task

co-workers have to understand how their work impacts others ability to complete work on time

Direct (Supervision)

Giving Orders

Inspire

Delegate

Motiviate

Communicate

Corrective action/discipline

Control (Supervision)

-monitor progress

-measure against standards/schedule

-determine if within tolerance so as not to delay project

-identify and correct mistakes

-revise and approve: get buy-in on schedule so it reflects current plan

Discipline (Guidelines)

1. Verbal and written reprimands should be given in private

2. Corrective in initial stages, and punitive when training and counseling have little or no effect

3. Check with Division and Labor relations if in doubt to appropriate action. Additionally, check disciplinary guidelines.

4. All facts should be had before taking action or recommending one.

5. Avoid sarcasm

6. Don't threaten or show anger

7. Customize this or recommendation for one to the individual and situation

8. Do this or recommend this promptly

9. Criticize the behavior, not the employee

10. Unconditionally accept the employee as a person. assume that the individual is potentially and intrinsically valuable to the organization.

11. Customize the severity to the seriousness of the offense or infraction.

12. Follow-up to ensure employee is correcting behavior

13. Re-establish friendly contact with employee very quickly after

14. Inform employee of unacceptable behavior as soon as it occurs

15. Immediate Supervisor must be directly involved with this over the subordinate

16. Do not transfer an employee to avoid this

17. Do this on continued infractions of rules even when these are minor. Laxity breeds laxity.

Discipline (Purpose)

Purpose is to correct behavior and prevent recurrence.

Employee must know standards of behavior before-hand

Good Listening

1. Stop Talking

2. Put the talker at ease

-inform that they are free to talk

3. Show them that you want to listen

-giving eye contact

4. Remove distractions

5. Empathize with them

- see things from their POV

6. Be patient

7. Hold your temper

8. Go easy on argument and criticism

9. Ask questions

10. Stop Talking

Motivation

1. Treat employees as individuals. Show a personal interest in them.

2. Seek their advice (use their ideas).

3. Offer sincere praise and recognition.

4. Provide growth opportunities through delegation (meaningful work).

5. Review employee performance (employee evaluation).

6. Train employees well.

7. Communicate.

Communication

1. Be concise (use plain english)

-explain simply

2. Know your audience

-think on your feet

-be creative

-improvise

3. tell stories

- talk about problem and how it was over come

4. use visuals to help understanding

-images mean ideas and audience to remember right

5. metaphors and analogies

- computer = bicycle for our minds

6. ask "so what?"

-does idea relate to listener and lives?

Instruction Steps

1. Prepare

2. Present

3. Try Out Performance

4. Follow Up

Prepare (Instruction)

a. put employee at ease

b. find out how much employee already knows about what is to be learned

c. arouse employee's interest as much as possible

d. place employee in the correct position so they can properly see and hear what is being taught

Present (Instruction)

a. tell employee about the operation

b. show the employee the operation

c. demonstrate

- be sure to stress key points

- give how and why of each step

Try Out Performance (Instruction)

a. Have employee perform

b. Have employee explain key points as they go

c. Correct Errors

d. Reinstruct

- continue until you are sure they know what to do

Follow-Up (Instruction)

a. have employee work alone

b. encourage questions

c. check with employee frequently at first and then taper off

Equal Employment Opportunity

Everyone at the department has the right to promote based on merit ability and performance

the purpose of this is to remove discrimination in the work place across all personnel actions and protected classes

make our workplace reflective of the diverse customer base that we have

ensure a comfortable work environment for people to perform their best free from fear of discrimination

Personnel Actions (EEO)

Recruiting

Selection

Assignments

Training

Promotions

Discipline

Compensation

Benefits

Firing

Retirement

Protected Classes (EEO)

Race

Color

Religion

National Origin

Sex Age

Marital Status

Veteran Status

Disability

Health Condition

Sexual Orientation

Sexual Identity

Supervisor Responsibilities (EEO)

1. Communicate the Policy

2. Justify Personnel Action

3. Prepare for Promotion

4. Development & Training

5. My Responsibility

Communicate the Policy (Supervisor Responsibilities (EEO))

a. conduct meetings to discuss the affirmative action program

b. be sure information is readily available

c. review aa directives/regulations and inform employees of directives

d. require employees to demonstrate an awareness of and respect for individual differences

e. inform employees of their rights to file discrimination complaints

f. interview employees who are leaving the unit to obtain information on supervisory practices

Justify Personnel Actions (Supervisor Responsibilities (EEO))

a. analyzing the duties and skills, knowledge and abilities required in subordinate positions

b. ask similar questions of all candidates, questions should measure their abilities

c. be sure, that disciplinary actions are documented and are based on job-related criteria reasons (performance)

Prepare for Promotion (Supervisor Responsibilities (EEO))

a. inform employees of their job responsibilities and how their performance will be evaluated

b. advise employees on lines of promotion within and outside of DWP

c. make info on upcoming exams and training opportunities available to all employees

d. encourage employees to aspire for jobs outside of their normal line of promotion

e. assist employees in preparing for exams; such as mock interviews

Training & Development (Supervisor Responsibilities (EEO))

a. familiarize with the abilities, education, experience and goals of each subordinate

b. analyze training needs of employees

c. identify employees with promotional potential and recommend additional training to prepare them for advancement

d. give on the job development and meaningful work

e. rotate employees to different positions

f. encourage employees to take courses during their off duty hours (tuition reimbursement program)

My Responsibilities (Supervisor Responsibilities (EEO))

a. walk the talk

-ZERO tolerance policy

b. take immediate and appropriate action

c. make sure discrimination complaints are handled and fully investigated in a timely manner with discretion and sensitivity

Four States of Mind

1. Rushing,

2. Frustration,

3. Fatigue,

4. Complacency

Four Critical Errors

Part of Safe Start:

1. Mind on Task,

2. Eyes on Task,

3. Line of Fire,

4. Balance, traction & grip

CERT (Critical Error Reduction Techniques)

L - Look at others for the patterns that increase the risk of injury

A - Analyze close calls and small errors

P - Practice Building Habits

S - Self-trigger on your state (or the amount of hazardous energy)

Financial Statement Structure

1. Statements of Net Position

2. Statements of Revenue, Expenses and Changes in Net Position

3. Statements of Cash Flows

** No Income Statement because we are non-profit

Statements of Net Position

This statement includes all of the assets, deferred outflows, liabilities, deferred inflows, and net position using the accrual basis of accounting as well as an indication about which assets can be utilized for general purposes and which assets are restricted as a result of bond covenants and other commitments

Statements of Revenue, Expenses and Changes in Net Position

This statement reports all of the revenue and expenses during the time periods indicated

Statements of Cash Flows

This statement reports the cash provided by and used in:

1. operating activities,

2. non-capital financing activities,

3. capital and related financing activities and

4. investing activities

Capitalize

Related to CWIP

We do this for costs that directly add value, enhance functionality, or extend the useful life of an asset (e.g., building an addition, replacing a roof).

This affects the balance sheet due to the enhancement of the value of the asset and is depreciated over time

Expense

Related to CWIP

We do this for routine repairs, cleaning, maintenance that merely keep an asset in working order without increasing its value OR when a project is cancelled

This affects the income statement (Statements of Revenue, Expenses and Changes in Net Position)

GASB 102

Certain Risk Disclosures

Effective for fiscal years beginning after June 15, 2024

Purpose:

1. Affects only note disclosures

2. Identifies circumstances when disclosures are required

   1. Concentrations or constraints that make a government vulnerable to a substantial impact

   2. Event(s) related to concentrations or constraints

3. Specifies content of disclosures if required

Disclosures are only required to the current period

GASB 102: Disclosure Requirement

1. When a concentration or constraint

   1. is known to exist prior to issuance of financial statements, and

   2. Makes the reporting unit vulnerable to the risk of a substantial impact; and

2. When an event associated with the concentration or constraint

   1. Has occurred,

   2. Has begun to occur, or

   3. Is more likely than not to occur or begin to occur within 12 months of the date of issuance

Criteria must be applied separately to:

1. The primary government as a whole

   1. Governmental and business-type activities

2. Individual reporting units that report revenue-backed debt

   1. Major governmental fund with revenue-backed debt

   2. Major enterprise fund with revenue-backed debt

   3. Aggregate nonmajor enterprise funds, if any nonmajor enterprise fund reports revenue-backed debt

GASB 102: Content of Disclosure

For each concentration or constraint that meets the criteria,

1. Provide information sufficient to enable users to understand

   1. the nature of the circumstances disclosed, and

   2. The vulnerability to the risk of a substantial impact;

2. Include descriptions of

   1. The concentration or constraint,

   2. Each associated event if it has occurred or begun to occur prior issuance of financial statements, and

   3. Mitigating actions taken prior to issuance of financial statements

Concentration

Part of GASB 102:

A lack of diversity related to a significant inflow or outflow of resources

Examples:

1. Major Employers

2. Major Industries

3. Major suppliers of materials, goods or services

4. Unionized workforce

Constraint

Part of GASB 102

A limitation by an external party or formal action by the government’s highest level of decision making authority

Examples:

1. limits on:

   1. Raising revenue

   2. spending, or

   3. incurring debt

2. Mandated Spending

Substantial Impact

Part of GASB 102

This is an impact greater than what would be considered significant or material

Requires application of professional judgment

GASB 103 (What it is, and problem trying to solve)

Financial Reporting Model Improvements

Effective for fiscal years beginning after June 15, 2025

This updates the original GASB 34 reporting framework after ~25 years. Its purpose is not to change accounting measurement or recognition, but to improve how financial information is presented, explained, and understood.

The standard focuses on:

• Making financial reports more useful and decision-relevant

• Improving clarity and transparency

• Reducing boilerplate disclosures and forcing meaningful analysis

Key idea:
This shifts reporting from “what happened” → to “why it happened.”

GASB 103 (Core Changes)

There are four major changes:

1. MD&A overhaul (most important)

   • Now requires a structured format

   • Emphasis on explaining drivers of change, not just listing numbers

2. Unusual or infrequent items

   • Replaces:

     • Extraordinary items

     • Special items

   • Now simplified into:

     • Unusual

     • Infrequent

3. Proprietary fund reporting improvements

   • Clearer distinction between:

     • Operating vs nonoperating revenues/expenses

   • More consistent classification across entities

4. Budgetary comparison changes

   • More standardized format

   • Some analysis shifts from MD&A → notes

Effective date:

• FY beginning after June 15, 2025 (→ FY 2026 for LADWP)

GASB 103 (MD&A Changes)

MD&A is fundamentally redesigned to require decision-useful analysis, not generic commentary.

Before GASB 103:

• Repetitive, boilerplate language

• Focus on describing amounts and changes

After GASB 103:

• Must explain WHY financial results changed

• Must follow a structured format

• Requires analysis of:

  • Financial position changes

  • Results of operations

  • Budget variances

  • Capital asset and debt activity

Key shift:

• From descriptive → analytical

Example:
Instead of:
“Expenses increased by 8%”

Now:
“Expenses increased by 8% primarily due to higher fuel costs, capital project ramp-up, and labor cost increases.”

GASB 103 (Impact to LADWP)

LADWP is a proprietary (enterprise) entity, so GASB 103 impacts it in practical, operational ways:

1. Operating vs Nonoperating Classification (critical)

   • Operating:

     • Utility service revenue, core operations

   • Nonoperating:

     • Transfers, subsidies, financing-related items

   • Impacts:

     • Reported margins

     • Financial interpretation

     • Rate-setting transparency

2. MD&A becomes data-driven

   • Must explain:

     • Rate changes

     • Demand fluctuations

     • Weather impacts

     • Capital spending

     • Cost drivers (fuel, labor, infrastructure)

3. Budget vs Actual reporting

   • More structured explanations

   • Stronger linkage between internal accounting (like RCAS) and financial reporting

4. Unusual/Infrequent items

   • Examples at LADWP:

     • Wildfire-related costs

     • Major legal settlements

     • One-time infrastructure events

COGS

This = Beginning Inventory + Purchases - Ending Inventory

Net Income = Revenue - This - Expenses

Debt Service Coverage Ratio

Net Revenue = (Operating Revenue - Operating Expense (Excluding Depreciation Expense)

Change in Net Funds = Net Revenue + Net Nonoperating Revenues + Capital Contributions

Total Debt Service on Bonds = Debt Interest Payments + Principal Payments

This Ratio = Change in Net Funds / Total Debt Service on Bonds

Greater than 1.25 is standard

GASB 87

This specifically deals with Leases:

Water System is a Lessor and Lessee:

Lessor:

1. Term:

   1. 12 Months ≥ , Water System Recognizes Short Term Revenue

   2. All Other, Water System Recognizes Lease Receivable and Deferred Inflows

2. Commencement

   1. Water system measures the receivable at the PV of PMTs expected to be received during the lease term reduced by any provision of estimated uncollectible amounts

      1. IF PV is 100k≥ —> Short Term Lease

      2. All Other —> lease receivable reduced by principal portion of lease payments received

3. Deferred Inflows

   1. Measured as initial amount of lease receivable + any prepaid payments at or before the lease commencement - any incentives paid at or before commencement

      1. Recognized on a straight line basis over remaining term of the lease

4. Discount Rate —> WACC for AA- rated utilities

Lessee:

1. Term:

   1. 12 Months ≥ , Water System Recognizes Expense based on contract

   2. All Other, Water System Recognizes Lease Liability and Intangible Right of Use Lease Asset

2. Commencement

   1. Water system measures the liability at the PV of PMTs expected to be made during the lease term

      1. IF PV is 100k≥ —> Expense of Short Term Lease

      2. All Other —> lease liability reduced by principal portion of lease payments made at or before commencement date

3. Intangible Right of Use Asset

   1. Measured as initial amount of lease liability + any ancillary cost to place the asset in use + lease payments made to the lessor at or before the commencement of the lease term - any incentives received at or before commencement

      1. Amortized on a straight line basis at the shorter of the lease term or useful life of the underlying asset

4. Discount Rate —> WACC for AA- rated utilities

   1. Lease Assets are reported with capital Assets

   2. Lease Liabilities are reported with current liabilities

GASB 101

Covers leave that accumulates and is attributable to services rendered, recognizing a liability when it is "more likely than not" to be used or paid out.

This relates specifically to Compensated Absences

• vacation leave,

• sick leave,

• compensatory time (Accum. OT), and

• personal time off (B Time, newly added to LADWP FS)

GASB 96 (What it is)

This Addresses Subscription-Based Information Technology Arrangements (SBITAs)

It addresses how governments account for:
👉 Software subscriptions (think cloud / SaaS / Workday!)

Before This:

• These were often treated like simple expenses

• Inconsistent treatment across governments

After This:

• Many software subscriptions must be treated like financing arrangements (similar to leases)

Core idea:
If you’re paying over time to use software,
👉 it’s not just an expense — it’s a long-term obligation + asset

GASB 96 (How SBITAs are accounted for)

This follows a lease-style accounting model (similar to GASB 87).

When a contract qualifies (longer than 12 months):

You record:

1. Subscription Liability

   • Present value of future payments

   • Represents what you owe

2. Subscription Asset (Intangible Right-to-Use)

   • Represents your right to use the software

Then over time:

• Liability → reduced as payments are made

• Asset → amortized over subscription term

• Interest expense → recognized

Key shift:
Instead of:
👉 “We pay for software each year”

Now:
👉 “We have a financed right to use software”

GASB 96 (What is a SBITA)

This xtexists when:

• You have a contract to use IT software

• The government does not own the software

• Payments are made over time

Examples:

• Cloud software (ERP, billing systems, analytics tools)

• Hosted platforms

• Long-term software subscriptions

Does NOT include:

• Short-term contracts (≤ 12 months)

• Contracts that transfer ownership

• Pure service contracts (no software access/control)