PRR735

Title:	Incorporating the ERCOT Internal Audit Department and Other Clarifications
Next Group:
Next Step:
Status:	Approved on 12/11/2007
Effective Date:	01/01/2008
Related Issue:	NPRR077

Date	Gov Body		Next Steps
12/11/2007	Board of Directors	Approved
11/01/2007	TAC	Recommended for Approval	Board consideration
10/18/2007	PRS	Recommended for Approval	TAC consideration
09/20/2007	PRS	Recommended for Approval	Impact Analysis review
			Language review

Date	Gov Body	Motion	Result	Against	Abstentions
12/11/2007	Board of Directors	To approve PRR735 as recommended by TAC.	Passed
11/01/2007	TAC	To recommend approval of PRR735 as recommended by PRS.	Passed	0	0
10/18/2007	PRS	To forward the Recommendation Report and Impact Analysis for PRR735 to TAC with the understanding that the ERCOT Board of Directors would consider NPRR077 and PRR735 simultaneously.	Passed	0	0
09/20/2007	PRS	To recommend approval of PRR735 as amended by PRS.	Passed

Status:	Approved
Date Posted:	08/07/2007
Sponsor:	ERCOT Staff
Urgent:	No
Sections:	1.4.2, 1.4.3.2, 1.4.3.1.1, 1.4.4, 1.4.5, 1.4.6
Description:	This PRR incorporates the ERCOT Internal Audit Department into the Protocols, clarifies the audits to be performed, and the treatment of audit results. Responsibility for performing the annual operational or “settlements” audit, otherwise commonly known as the Statement on Auditing Standards (SAS) No. 70 (“SAS 70”), Type II report, will continue to be performed by an external independent certified public accounting firm. Upon approval of this PRR, responsibility for performing the other audits referenced in Protocol Section 1.4, Operational Audit, will transition to the Internal Audit Department.
Reason:	Because ERCOT now has an Internal Audit Department, this section of the Protocols should be revised to account for the responsibilities of this department to perform relevant audits. Protocol Section 1.4, Operational Audit, dates from January of 2001. The Internal Audit Department was created in August of 2003, went through a transition period in 2004-2005, and was not sufficiently staffed with internal ERCOT resources until 2006.