---
title: "RRS — Utilities and interest"
sidebarTitle: "RRS utilities and interest"
description: "The Blue Note sponsor fee accrual, accrued utilities schedule, accrued interest, and CONA loan tracking for Rackson Restaurants (E01)."
icon: "bolt"
---

> **For AI agents:** the complete documentation index is at [llms.txt](/llms.txt). Append `.md` to any page URL for its markdown version.

Four workpapers covering the RRS accrued expenses and the CONA debt facility.

<Info>
  **Source:** `Rackson_Workpaper_Instructions.docx` — Part I, Utilities & Interest.
</Info>

## 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.

<Steps>
  <Step title="Post the period accrual">
    DR Blue Note Sponsorship Expense / CR **24000** for $48,077.
  </Step>
  <Step title="Record the lump-sum payments">
    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.
  </Step>
  <Step title="Confirm the running balance">
    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.
  </Step>
  <Step title="Tie to the GL">
    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.
  </Step>
</Steps>

<Note>
  **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.
</Note>

<Warning>
  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.
</Warning>

## 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.

<Steps>
  <Step title="Receive the accrual from the client">
    Chee sends over the accrued utilities at period end for PBI to import and adjust in Intacct.
  </Step>
  <Step title="Post the three utility imports">
    | 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** |
  </Step>
  <Step title="Update the Recon tab">
    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.
  </Step>
  <Step title="Tie the balance by location">
    The **BALANCE** column carries forward. Confirm it agrees to the Intacct GL balance for acct 24100 by location.
  </Step>
  <Step title="Confirm reversal dates">
    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.**
  </Step>
</Steps>

**Files:** `IMPORT_Gas_Utility_Accrual_P5.csv` · `IMPORT_Water_Utility_Accrual_P5.csv` · `IMPORT_Electric_Utility_P5.csv`

<Note>
  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.
</Note>

## 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.

<Steps>
  <Step title="Update the period end date">
    On the **24700** tab, update the Period End date in cell **B2** — formatted as a date, not a serial number.
  </Step>
  <Step title="Update each loan's last payment date">
    Set the Last Payment Date for each loan to the most recent payment date on the CONA loan statement.
  </Step>
  <Step title="Confirm the accrued days">
    The Accrued Days column is days from last payment to period end. Illustrative: CONA term loan 6 days; DDTL #677 and SWAP 24 days.
  </Step>
  <Step title="Post the net adjustment">
    The workpaper calculates accrued interest as:

    ```text
    (Last Payment Amount ÷ Days in Statement Period) × Accrued Days
    ```

    Confirm 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.
  </Step>
  <Step title="Cross-check the rates">
    Cross-reference the 28015/28020 CONA Loan Tracking workpaper to ensure the interest rates used are current.
  </Step>
</Steps>

**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 |

<Steps>
  <Step title="Enter each payment">
    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.
  </Step>
  <Step title="Confirm the rate">
    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.**
  </Step>
  <Step title="Reconcile to the statement">
    Reconcile the loan balance per the workpaper to the CONA loan statement for the period.
  </Step>
  <Step title="Handle the SWAP">
    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.**
  </Step>
  <Step title="Tie to the GL">
    Confirm the GL balance for accts **28015** (Term Loan) and **28020** (DDTLs) agrees to the workpaper loan balances after applying the period principal payment.
  </Step>
</Steps>

**Files:** `18300_Interest_Rate_Swap_-_CONA_P5.pdf`

<Warning>
  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](/internal/customers/rackson/debt-schedules).
</Warning>

## Related

- [Debt schedules](/internal/customers/rackson/debt-schedules) — the full CONA, Simmons, and Saxonwald picture
- [Debt and notes review](/internal/customers/rackson/review-process/debt-and-notes) — the reviewer's checklist
- [Accrued expenses and occupancy review](/internal/customers/rackson/review-process/accrued-expenses) — utilities, property tax, percentage rent, and the sponsor fee