MANAGEMENT AND PERFORMANCE AUDITS, STUDIES, AND REVIEWS
SAGE Management Consultants, LLC (SAGE) conducts independent and objective assessments of the effectiveness and efficiency of enterprises, departments, and processes, and their compliance with applicable laws and regulations. Past reviews have covered governance, strategic and business planning, organization structure and staffing, generation and power supply, transmission and distribution, customer service, workforce strategy, work management, supply chain, shared services, and financial and administrative services. SAGE partners have conducted management reviews on behalf of executive management, Board and Council governing bodies, inspectors general, and regulatory authorities.
CLIENTELE
SAGE consultants have conducted comprehensive general management reviews of both investor owned and publicly owned enterprises for Public Utility Commissions and Boards and Oversight Agencies, including:
SAGE Management Consultants, LLC (SAGE) conducts independent and objective assessments of the effectiveness and efficiency of enterprises, departments, and processes, and their compliance with applicable laws and regulations. Past reviews have covered governance, strategic and business planning, organization structure and staffing, generation and power supply, transmission and distribution, customer service, workforce strategy, work management, supply chain, shared services, and financial and administrative services. SAGE partners have conducted management reviews on behalf of executive management, Board and Council governing bodies, inspectors general, and regulatory authorities.
CLIENTELE
SAGE consultants have conducted comprehensive general management reviews of both investor owned and publicly owned enterprises for Public Utility Commissions and Boards and Oversight Agencies, including:
|
Public Utility Commissions
Alaska California Connecticut Florida Georgia Guam Illinois Kentucky Maryland Missouri New Jersey New Mexico New York Pennsylvania Texas Vermont Boards and Oversight Agencies Colorado Springs City Council Delaware River Port Authority Inspector General Los Angeles City Controller Lower Colorado River Authority Board Metropolitan District Commission Tacoma City Council |
Investor Owned Utility Subjects of Commission Ordered Audits or Proceedings
Connecticut Light & Power Co. El Paso Electric Company Eon/Louisville Gas & Electric FirstEnergy/Jersey Central Power & Light Central Vermont Public Service National Fuel Gas National Grid/Niagara Mohawk Eon/Louisville Gas & Electric United Illuminating Pacific Gas & Electric Peoples Gas Company Southern California Gas Publicly Owned Enterprises Colorado Springs Utilities Los Angeles Department of Water & Power Lower Colorado River Authority Nebraska Electric G&T Cooperative New York City Water & Wastewater Philadelphia Gas Works Tacoma Public Utilities Emerald Coast Utilities Authority The Metropolitan District Commission California Deaf and Disabled Telecommunications Program |
STAFF
As a consortium model firm, our partners’ wide network of consultants, specialists, and experts is available to each client. Our management review and audit teams are specifically tailored to each case and can include:
SAGE is able to provide a well-managed team of appropriate experts for each review or audit. Examples of SAGE consultants’ management and performance audit, study, and review experience follow:
Strategic Assessment and Industrial, Economic and Administrative Survey
A SAGE consultant was a principle consultant on an engagement to conduct a strategic assessment and industrial, economic and administrative survey of one of the nation’s largest municipal utilities. The utility has full responsibility for meeting the water and electric resource requirements of its service area, and serves a population of 3.8 million people in an area of 465 square miles. The utility’s scope includes power generation, regional water resource supply, transmission and distribution of power and water, and all of the related administrative and business processes. This project was conducted in two phases. The first phase examined the strategic planning processes and identified and prioritized the strategic issues facing the utility. The second phase examined the high priority strategic issues and made recommendations to improve the utility’s response to them. A third engagement examined the revenue requirement to address the challenges.
Management Audit of an Investor Owned Electric Utility
A SAGE consultant was the lead consultant for Transmission and Distribution in a comprehensive management audit of a large electric utility for a state regulatory commission. The audit covered all aspects of T&D performance, including: reliability, customer service, safety, operating costs, capital program planning and management, asset management, and storm response.
Municipal Utility Management Review
A SAGE consulting team conducted a comprehensive management review of a large combination municipal utility serving the third largest city in the state. The management review focused on asset management, policy-making, strategic planning, operational performance, and consolidated shared services. The operational aspects of the review included an assessment of the utility’s development plans, strategic/business plans, and expansion policies and practices, as well as financial and operating performance. The objectives of the study included the determination and quantification of improvements to be made in the operation and performance of the utilities. Specific improvement opportunities relating to workforce planning, organizational effectiveness and succession planning were identified. Extensive use of reliability, rate, and cost performance measures was made to establish performance gaps and identify improvement recommendations.
Transmission and Distribution Management Study
A SAGE consultant conducted in-depth review of the electric transmission and distribution department of a large municipal electric utility. This was a comprehensive study including organization and staffing, asset management, reliability, capital program planning and management, and shared services support.
Power & Water Authority Management Study
SAGE consultants led a Board sponsored project to assist the water and wastewater business unit of a large publicly-owned, combination electric and water/wastewater utility in determining the effectiveness of its management and business processes, internal project controls, and capital planning program. Assisted the client in identifying improvements in its processes, project controls, cost allocation methodologies and the manner by which impact fees are being applied to capital programs. The engagement utilized comparative analysis (both benchmarking and best practices) as tools to identify potential improvements in both process efficiency and effectiveness. Specific assistance was provided to the Authority’s Board of Directors to enhance Board/Management Staff communications and governance as well as clarifying strategic direction.
Utility Integration and Capital Program Organization Study
SAGE consultants led the consulting team assisting a metropolitan public works department with an organizational assessment. The objectives associated with this engagement were: (1) to determine how the employees and equipment in the wastewater enterprise could be utilized within the public works department to the best advantage of the municipality, and (2) to determine the alternative organizational models and structures that would be appropriate for infrastructure planning and implementation within the context of the total organization including planning, engineering, finance, and construction organizational elements. In addition to extensive interviews and dialoguing with key stakeholders, the engagement also involved a comparative (best practices) analysis of similar public entities.
Comprehensive Management Study of a Metropolitan Water District
The SAGE consultants led a comprehensive management study of all major functional areas and departments for this metropolitan water and wastewater district. The District provides water, wastewater and solid waste services to a population area of approximately 400,000 (over 95,000 metered accounts). The objectives of the study were to determine if the organization was appropriately structured to carry out its mission and to assess the effectiveness of its planning processes (strategic, business and capital planning), business practices, and internal controls as well as to identify new revenue sources. A process-centered approach was used that focused on customer requirements, total system planning and capital project development as well as operations and maintenance effectiveness. The process included executives, management and employees as well as members of the governing body. This process has prepared the organization for effective implementation of the study results, which focused on moving the utility to a process-centered, customer-focused organization.
CONTACT:
Robert L. Rosenkoetter, CPA
Partner
SAGE Management Consultants, LLC
Direct: (678) 867-0784
Email: rosenkoetter@sageconsultants.org
As a consortium model firm, our partners’ wide network of consultants, specialists, and experts is available to each client. Our management review and audit teams are specifically tailored to each case and can include:
- Professional Engineers
- Certified Public Accountants
- Subject Matter Experts in Specialized Fields
- Former Regulatory Staff
- Certified Management Consultants
SAGE is able to provide a well-managed team of appropriate experts for each review or audit. Examples of SAGE consultants’ management and performance audit, study, and review experience follow:
Strategic Assessment and Industrial, Economic and Administrative Survey
A SAGE consultant was a principle consultant on an engagement to conduct a strategic assessment and industrial, economic and administrative survey of one of the nation’s largest municipal utilities. The utility has full responsibility for meeting the water and electric resource requirements of its service area, and serves a population of 3.8 million people in an area of 465 square miles. The utility’s scope includes power generation, regional water resource supply, transmission and distribution of power and water, and all of the related administrative and business processes. This project was conducted in two phases. The first phase examined the strategic planning processes and identified and prioritized the strategic issues facing the utility. The second phase examined the high priority strategic issues and made recommendations to improve the utility’s response to them. A third engagement examined the revenue requirement to address the challenges.
Management Audit of an Investor Owned Electric Utility
A SAGE consultant was the lead consultant for Transmission and Distribution in a comprehensive management audit of a large electric utility for a state regulatory commission. The audit covered all aspects of T&D performance, including: reliability, customer service, safety, operating costs, capital program planning and management, asset management, and storm response.
Municipal Utility Management Review
A SAGE consulting team conducted a comprehensive management review of a large combination municipal utility serving the third largest city in the state. The management review focused on asset management, policy-making, strategic planning, operational performance, and consolidated shared services. The operational aspects of the review included an assessment of the utility’s development plans, strategic/business plans, and expansion policies and practices, as well as financial and operating performance. The objectives of the study included the determination and quantification of improvements to be made in the operation and performance of the utilities. Specific improvement opportunities relating to workforce planning, organizational effectiveness and succession planning were identified. Extensive use of reliability, rate, and cost performance measures was made to establish performance gaps and identify improvement recommendations.
Transmission and Distribution Management Study
A SAGE consultant conducted in-depth review of the electric transmission and distribution department of a large municipal electric utility. This was a comprehensive study including organization and staffing, asset management, reliability, capital program planning and management, and shared services support.
Power & Water Authority Management Study
SAGE consultants led a Board sponsored project to assist the water and wastewater business unit of a large publicly-owned, combination electric and water/wastewater utility in determining the effectiveness of its management and business processes, internal project controls, and capital planning program. Assisted the client in identifying improvements in its processes, project controls, cost allocation methodologies and the manner by which impact fees are being applied to capital programs. The engagement utilized comparative analysis (both benchmarking and best practices) as tools to identify potential improvements in both process efficiency and effectiveness. Specific assistance was provided to the Authority’s Board of Directors to enhance Board/Management Staff communications and governance as well as clarifying strategic direction.
Utility Integration and Capital Program Organization Study
SAGE consultants led the consulting team assisting a metropolitan public works department with an organizational assessment. The objectives associated with this engagement were: (1) to determine how the employees and equipment in the wastewater enterprise could be utilized within the public works department to the best advantage of the municipality, and (2) to determine the alternative organizational models and structures that would be appropriate for infrastructure planning and implementation within the context of the total organization including planning, engineering, finance, and construction organizational elements. In addition to extensive interviews and dialoguing with key stakeholders, the engagement also involved a comparative (best practices) analysis of similar public entities.
Comprehensive Management Study of a Metropolitan Water District
The SAGE consultants led a comprehensive management study of all major functional areas and departments for this metropolitan water and wastewater district. The District provides water, wastewater and solid waste services to a population area of approximately 400,000 (over 95,000 metered accounts). The objectives of the study were to determine if the organization was appropriately structured to carry out its mission and to assess the effectiveness of its planning processes (strategic, business and capital planning), business practices, and internal controls as well as to identify new revenue sources. A process-centered approach was used that focused on customer requirements, total system planning and capital project development as well as operations and maintenance effectiveness. The process included executives, management and employees as well as members of the governing body. This process has prepared the organization for effective implementation of the study results, which focused on moving the utility to a process-centered, customer-focused organization.
CONTACT:
Robert L. Rosenkoetter, CPA
Partner
SAGE Management Consultants, LLC
Direct: (678) 867-0784
Email: rosenkoetter@sageconsultants.org