RRS — Utilities and interest
The Blue Note sponsor fee accrual, accrued utilities schedule, accrued interest, and CONA loan tracking for Rackson Restaurants (E01).
Four workpapers covering the RRS accrued expenses and the CONA debt facility.
Source: Rackson_Workpaper_Instructions.docx — Part I, Utilities & Interest.
24000 — Accrued expenses (Blue Note sponsor fee)
Owner: Jeff / Jonah
Tracks the Blue Note Entertainment / Uncommon Equity (formerly CCV) annual sponsorship fee accrual — $625K/year, $48,077 per period — and the timing of lump-sum payments.
DR Blue Note Sponsorship Expense / CR 24000 for $48,077.
In P3 and P6 of each year, Uncommon Equity makes a lump payment of $141,854 (3 periods' worth). Enter it when received as DR 24000 / CR Cash.
The balance grows by $48,077 each period, and the P3/P6 lump-sum payment clears it. Confirm the cumulative balance by multiplying periods elapsed since the last payment × $48,077.
Confirm the GL balance for acct 24000 agrees to the workpaper. Illustrative: a –$3,567.52 difference recorded in P3 2026 — confirm this was a true-up to actual.
In Intacct this appears as the journal entry "Adjust CCV Mgmt Fee Accrual to Actual" — "CCV" is the shorthand used in the JE description. Use that term when searching journal history.
Both the sponsor fee and the director's fees are billed quarterly, on the same cycle. Confirm with Mike the status of the formal Blue Note accounting setup and whether additional accruals are needed beyond the sponsor fee.
A separate JE, "Credit back adjustment to Q1 & Q2 sponsor fees," shows this fee was reversed/credited back for two quarters during the fiscal year. Confirm the current-year run rate against the client directly rather than assuming Q1/Q2 activity is representative. If the amount changes without a clear reason, stop and get support before advancing the new number as the run rate.
24100 — Accrued utilities schedule
Owner: Betsy
Reconciles the utility accrual liability (acct 24100) by store across gas (71000), electric (71100), and water (71200). Cass Information Systems processes utility bills on Rackson's behalf — accruals reverse when actual bills arrive.
Chee sends over the accrued utilities at period end for PBI to import and adjust in Intacct.
| Import | Accounts | Notes |
|---|---|---|
IMPORT_Gas_Utility_Accrual_P5.csv | 71000 | NRG reclasses |
IMPORT_Water_Utility_Accrual_P5.csv | DR 24100 / CR 71200 | New Castle County Sewer |
IMPORT_Electric_Utility_P5.csv | 71100 / 24100 | Delmarva — this entry carries a reversal date |
For each store row, enter the current period payment (actual Cass bills posted via AP) in the Payment column and the current period RJE (accrual estimate) in the Expense – RJE column.
The BALANCE column carries forward. Confirm it agrees to the Intacct GL balance for acct 24100 by location.
If Cass bills haven't arrived for a location, the accrual estimate stands until the actual bill posts and the prior accrual reverses. Confirm reversal dates are set correctly on any reversing JEs.
Files: IMPORT_Gas_Utility_Accrual_P5.csv · IMPORT_Water_Utility_Accrual_P5.csv · IMPORT_Electric_Utility_P5.csv
Utilities are one of the hardest categories to independently verify on this engagement. Billing periods frequently don't align to a calendar month, and several providers will not grant PBI direct online access even where online access exists for other utility types. Where access exists, statements are pulled directly; otherwise the client (Mike, and increasingly Erica) sends statement screenshots.
The practical approach: rely on client-provided detail for the numbers, and focus PBI's review effort on flagging anything unusual on the P&L rather than rebuilding the utility schedule from source documents each period.
24700 — Accrued interest
Owner: Maureen
Calculates accrued interest for all CONA loans — Term Loan, 4 DDTLs, and the SWAP — based on days elapsed since the last payment through period end.
On the 24700 tab, update the Period End date in cell B2 — formatted as a date, not a serial number.
Set the Last Payment Date for each loan to the most recent payment date on the CONA loan statement.
The Accrued Days column is days from last payment to period end. Illustrative: CONA term loan 6 days; DDTL #677 and SWAP 24 days.
The workpaper calculates accrued interest as:
(Last Payment Amount ÷ Days in Statement Period) × Accrued DaysConfirm the prior period GL balance for acct 24700, then post the current period net adjustment (new accrual less reversal of the prior accrual) to arrive at the ending balance.
Cross-reference the 28015/28020 CONA Loan Tracking workpaper to ensure the interest rates used are current.
Files: 28015-28020_Rackson_CONA_Loan_Tracking_P5.xlsx · 18300_Interest_Rate_Swap_-_CONA_P5.pdf
28015 / 28020 — CONA loan tracking
Owner: Maureen
Full amortization schedule and payment tracking for the CONA Term Loan and all DDTLs. Drives the principal/interest split for each payment.
| Detail | Value |
|---|---|
| Customer # | 70649073 |
| Commitment | B1-4000465232 |
| Loan ID | B1-101604112 |
| Beginning balance | $45,000,000 |
| Principal payments | $281,250/quarter, from 4/1/2025 |
When a loan payment is made to (or received from) CONA, enter the payment date, balance, principal, interest, and total payment in the Term tab row for that date.
SOFR Margin 4.25% + 3-month SOFR (currently ~4.29%) = effective rate ~8.54%. Update the SOFR 3-month rate column when a new rate notice is received.
Reconcile the loan balance per the workpaper to the CONA loan statement for the period.
The Capital One daily mark statement (PDF) as of the statement date shows the NPV at current mark-to-market. Record the SWAP fair value adjustment in Intacct if required — discuss with Mike whether the SWAP is mark-to-market or hedge-accounted.
Confirm the GL balance for accts 28015 (Term Loan) and 28020 (DDTLs) agrees to the workpaper loan balances after applying the period principal payment.
Files: 18300_Interest_Rate_Swap_-_CONA_P5.pdf
For roughly two periods, the principal/interest split on lender statements has diverged from the client's original amortization schedule. Report off the updated, statement-driven schedule — not the original projection. See Debt schedules.
Related
- Debt schedules — the full CONA, Simmons, and Saxonwald picture
- Debt and notes review — the reviewer's checklist
- Accrued expenses and occupancy review — utilities, property tax, percentage rent, and the sponsor fee