CEA Test Module 6 Exam Questions
and Answers
Energy Services Contract - -This is the name given to our contracts with
clients. We are providing them with energy
services through a contract for a certain price or number of years, depending
on the structure. We have 3 different
structures:
1. 80/20 Ministry Contract - this structure is specifically for ministries and
churches. There is a set project price.
The ministry pays 80% of savings until the project price has been met.
2. MUSH Standard Contract - this structure is for school districts that choose
to pay out of fund balance or tax-
exempt financing. The school district pays Ideal Impact up front. We receive
the full project price within 90 days
of the contract signing. If the school district chose tax-exempt financing with
a bank of their choice, they will use
the savings achieved to repay that loan over a certain period of time.
3. MUSH 80/20 Contract - this structure is for school districts that cannot or
will not pay for the project up front
through fund balance or financing. It works very similar to the 80/20 ministry
project. It is usually accompanied
with a Payment Plan Agreement (PPA). See further description below.
-Fund Balance - -Sum of all current money sources ("all money in the bank")
(i.e. checking, savings, everything else. Very
little interest)
-M&O - -Stands for "Maintenance & Operation" budget. All the things the
district uses to operate the school (i.e. salaries,
insurance, and utilities, anything that isn't a bond). The amount is
determined by their tax rate. Our energy services
contracts put money back into a school district's M&O budget.
-Tax-exempt financing - -School districts we partner with can use this type
of financing for our project. The government
can't tax the profits of an individual, bank, or entity trust and the interest
rate is very low. Government Capital is one
financing provider that many school districts have used for tax-exempt
financing.
-80/20 Project - -This is a contract structure unique to Ideal Impact. It is
attractive to a school district because there is no
and Answers
Energy Services Contract - -This is the name given to our contracts with
clients. We are providing them with energy
services through a contract for a certain price or number of years, depending
on the structure. We have 3 different
structures:
1. 80/20 Ministry Contract - this structure is specifically for ministries and
churches. There is a set project price.
The ministry pays 80% of savings until the project price has been met.
2. MUSH Standard Contract - this structure is for school districts that choose
to pay out of fund balance or tax-
exempt financing. The school district pays Ideal Impact up front. We receive
the full project price within 90 days
of the contract signing. If the school district chose tax-exempt financing with
a bank of their choice, they will use
the savings achieved to repay that loan over a certain period of time.
3. MUSH 80/20 Contract - this structure is for school districts that cannot or
will not pay for the project up front
through fund balance or financing. It works very similar to the 80/20 ministry
project. It is usually accompanied
with a Payment Plan Agreement (PPA). See further description below.
-Fund Balance - -Sum of all current money sources ("all money in the bank")
(i.e. checking, savings, everything else. Very
little interest)
-M&O - -Stands for "Maintenance & Operation" budget. All the things the
district uses to operate the school (i.e. salaries,
insurance, and utilities, anything that isn't a bond). The amount is
determined by their tax rate. Our energy services
contracts put money back into a school district's M&O budget.
-Tax-exempt financing - -School districts we partner with can use this type
of financing for our project. The government
can't tax the profits of an individual, bank, or entity trust and the interest
rate is very low. Government Capital is one
financing provider that many school districts have used for tax-exempt
financing.
-80/20 Project - -This is a contract structure unique to Ideal Impact. It is
attractive to a school district because there is no
