Michael PettersonVice President Finance & Treasury

Status of Open Audit Points

Finance &Audit Committee MeetingJuly 16, 2012

2 ERCOT PublicJuly 16, 2012

All audit points expected to be complete by 10/31/12

Committee Brief ICMP: Status of Open Audit Points

Totals

3 ERCOT PublicJuly 16, 2012

Audits Completed(last 3 months)

Internal Audits• Congestion Revenue Rights

Processes• Annual Report on Fraud

Prevention, Monitoring and Testing

• Identity Management System

• Audit of Shared Drives• Review of Vendors for

Compliance with Contract Terms and Conditions

• Accounts Payable• Protocol 1.4 – Confidentiality

Compliance Audit• Consulting on ERCOT’s

Vulnerability Assessments

External Audits• 2011 Financial Audit (Ernst

& Young, LLP)• DoE Grant OMB A-133 audit

(Ernst and Young)

Audits in Progress

Internal Audits• Change Control / Release

Management• Cash and Investments• Audit of Critical Spreadsheets• Review of the Capacity, Demand,

and Reserves (CDR) Report and the Seasonal Assessment of Resources Adequacy (SARA) Report

• Consulting on ERCOT’s Federal Visa and Permanent Residency Program for Foreign Nationals

External Audits• Nodal Program Audit (Navigant

Consulting, LLC)• 2012 Type 2 SSAE16 Audit

(BrightLine CPAs & Associates, Inc.)

Planned Audits(next 3 months)

Internal Audits• Business Continuity Plan &

Disaster Recovery Plan• Nodal Protocol 3.10(5) –

Consistent Information in Operations Models

• Credit Quality Assessment• Annual Corporate Controls

Testing Summary• Audit of Project

Prioritization• Annual Employee and

Contractor Ethics Compliance

• Audit of Renewable Energy Credits (REC) Program Processes and Controls

External Audits• None

Committee Brief: ICMP – Audits

4 ERCOT PublicJuly 16, 2012

Committee Brief: ICMP – Security Assessments

Consultation/Analysis Reports Completed

(last 3 months)

Assessments• None

Open Consultation/ Analysis Reviews

(in progress)

Assessments• None

Planned Consultation/ Analysis Reviews

(next 3 months)

Assessments• None