Upload
rudolph-robertson
View
218
Download
0
Tags:
Embed Size (px)
Citation preview
Finance & Audit Committee Meeting
December 13, 2005
2
Audit Report Acceptance - Sean Barry
3
Committee Briefs
ICMP – Cheryl Moseley
Audit Point Status – Cheryl Moseley
Credit Stats – Cheryl Yager
PMO Update – (included here but not on this month’s agenda)
4
ICMP & Audit Point Status – Cheryl Moseley
5
Completion Status By Audit
0
25
50
75
100
125
150
175
200
225
250
275
300
Feb 08 Feb 21 Mar 30 Apr-30 May 31 Jun 30 Jul 18 Aug 15 Sep 14 Oct 17 Nov 07 Dec 06Reporting Date
# of
Aud
its
CAN Audit D&T Internal Controls Internal Audits Ernst & YoungPwC D&T Lawson/Fixed Assets Remaining Verified
288
53 to complete
6
Projected Audit Point Progress
0
10
20
30
40
50
60
70
Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06
# of R
emain
ing
Audi
t Poi
nts
# Remaining 59 58 53 23 22 21 9 9 6 2 2 1 1 0 0
Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06
7
Actionable Internal Control Gaps - Status
CHANGES FROM PRIOR REPORT on 11/07/05 - Increase/(Decrease):
Treasury Revenue
Corporate Govern-
anceFinancial Reporting
Capital Projects IT Payroll HR
Contract Mgmt
Fixed Assets
Accounts Payable
Procure- ment Total
Complete - Non Key - - - - - - - - - - - - - Complete - Key 1 - 5 - 1 - - - - - 5 - 12 Execution - Non Key - - - - - - - - - - 3 - 3 Execution - Key (1) - (5) - - - - - 2 - 19 - 15 Planning - Non Key - - - - - - - - - - (3) - (3) Planning - Key - - - - (1) - - - (2) - (24) - (27)
Status of 217 D&T Actionable Internal Control Gapsby Business Process as of 12/06/05
0
10
20
30
40
50
60
70
80
# o
f A
cti
on
ab
le G
ap
s
Planning - Key Planning - Non Key Execution - Key Execution - Non Key Complete - Key Complete - Non Key
Complete - Non Key 3
Complete - Key 2 5 1 1 1 6 3
Execution - Non Key 1 1 5 13 13 7 3 3
Execution - Key 2 6 5 1 3 21 17 24 69
Planning - Non Key
Planning - Key 1
Treasury RevenueCorporate
GovernanceFinancial Reporting
Capital Projects
IT Payroll HR Contract Mgmt Fixed AssetsAccounts Payable
Procurement
1%2%
6% 7%10%
35%
3%1%
4% 5%
11%
15%
% = % of Total
8
Credit Stats – Cheryl Yager
9
PMO Update
10
2005 YTD Project Performance
Project Process Improvements In 2005 7 completed, 47 YTD 5 in Initiation 20 in Planning 43 in Execution
PM Staff Completing PMP Certification Reviewing Prioritization Criteria with PRS & TAC Planning 2006 Program Portfolios PMO Process Improvements Being Implemented
Project Activity Project Performance
05
1015202530354045
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Completed Initiation Planning Execution
0%
20%
40%
60%
80%
100%
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
On Time On Budget Deliverables
Fourth Quarter Results (to 11/30)
11
Projected Completions to Year End
Completed Initiation Planning Execution Total Active
IO 7 3 8 7 18
CO 0 0 2 6 8
MO 8 0 2 10 12
RO 5 0 5 3 8
SO 27 2 3 17 22
Totals 47 5 20 43 68
PMO Stats through 11/30/05
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Projected Total Total Portfolio
Jan - Mar Apr - Jun Jul-Sept Oct-Nov Dec Year End All Projects
Completed 14 7 19 7 11 58 110
On-Time 71% 100% 47% 86% 91% 72% 75%
On-Budget 86% 100% 95% 100% 100% 95% 93%
Deliverables 100% 95% 95% 100% 100% 97% 97%
12
Large Project Update- PR-30183 (EMMS Release 4)
Scope EMMS Release 4 Execution
Budget Approved Budget $ 8,138,453 Actual/Forecast $ 8,135,075
— 2003 Actual $ 37,815— 2004 Actual $ 4,942,983— 2005 Actual/Forecast $ 3,053,122— 2006 Forecast $ 101,155
Market Deliverables Delivered on October 05, 2005— RPRS Market Redesign (Currently in Monitor Mode)— AS Simultaneous Procurement— Fleet Deployment of OOM and VDI— Resource Plan Improvement (R3 carryover)— Unit Specific Bid Limits— MOMS Sync with Release 4— OOME Participation in providing AS
EMS Deliverables Migrated to production on June 14, 2005— Improvements to VSA/DSA— EMS Archive comparison tool— Special Protection Schemes
Schedule Project end being extended to June 30, 2006
13
PR-30183 (EMMS Release 4) Status
Project changes to timeline
Extend Task Order 22 term to June 30, 2006 in support of Replacement Reserve System (RPRS) “Go Live” schedule for Q1/Q2 2006 with no additional funding required
Extend project end date to June 30, 2006 to support the 90 day warranty period associated with RPRS
14
Projects Completed 4th Quarter
Projects Completed in October PR-40093 RMR Automation PR-50010 Lodestar Enhancements
PRR420 Modified Competitive Solution for Settlements
PR-40075 Lodestar Enhancements PRR 488 and PRR 572 Weather Responsiveness Determination and Reporting
PR-50143 IPC Line Networking Upgrade
Projects Completed in November PR-40090_01 OTS Center PR-40108 Disclosure of Local
Congestion PR-50121_03 Market Information
Distribution
15
PR-40090_01 Operator Training Simulator (OTS) Center
Scope of OTS Center included : Remodel the TCC Blue Building to create a Training CenterFurniture and classroom PCs (moved planned deliverable from 2006 to 2005)Audio Visual Subsystem (moved planned deliverable from 2006 to 2005)
Features and Deliverables: Training Center to house the Operator Training Simulator (OTS) System, Classroom, Engineers, Instructors, Training team and Admin. A glassed-in area behind the consoles in the control room for role players and instructors OTS furniture, Power Monuments, whiteboards, guest chairs PCs for classroom instruction (10 students and 2 instructors)
Current Activity Punch List Fixes Delivery and installation of Audio-Visual Subsystem
December 2004 - September 2005
Planning10 Months
Execution4 Months
September – December 2005
16
PR-40108 Disclosure of Local Congestion
Scope of Disclosure of Local Congestion Project included : Automation of the process to post OOMC, OOME, and RMR information to help mitigate local congestion costs.
Features and Deliverables: The objective of the project is to automate posting of the report to disclose OOMC, OOME, and RMR information both 2 days after the trade day for instructions and 17 days after the trade day with instructions and energy.
o Project initiated due to Market driven PRR515 in 2Q2005o Solution designed in new Enterprise Data Warehouse and Reporting Applicationo Solution uses Portal to post information on ERCOT.como Information is available to public
Current Activity Lessons LearnedClosing out project.
February-June 2005
Planning5 Months
Execution4 Months
July – November 2005
17
PR-50121_03 Market Information Distribution
Scope of PR-50121_03 Market Information Distribution: This project will deliver the infrastructure to replace existing SeeBeyond EAI components
within Report Explorer functionality with TIBCO EAI components. The completion of this project will establish the infrastructure and configuration tools to allow ERCOT to complete a full migration of existing RMC reports to MID in the future.
Features and Deliverables: Deployed the MID system as a replacement to RMC system within Report Explorer functionality
that delivers reports to the Market Implemented a mechanism to migrate the reports published to RMC into the MID system. This
is used to transfer existing reports and to keep the two systems in sync during the cut over period.
Developed a Delivery Strategy plan for the migration of all remaining reports in Report Explorer
Converted the display of Report Explorer content from I-frame solution to direct display via TIBCO integration
Delivered an SOA infrastructure that provides future options to place information on the Portal and how the portal publishes the information
Implemented a new infrastructure with minimal impact to the Market Current Activity
Lessons learned Subsequent phase under O&M will be implemented in Retail Releases to facilitate a phased
approach to migrating all existing RMC reports Currently in the Closing Phase of the project.
Planning18 weeks
Execution20.5 weeks
February 2005 – June 2005 June 2005 – November 2005
18
ABC Project Overview – Mike Petterson
Background on activity-based costing (ABC) at ERCOT
ABC defined
ERCOT management thoughts on ABC Expected benefits Striking a balance Starting small
Next steps Goals and expectations Cross-functional team Competent external assistance Sustainable, relevant, updateable, and actionable system
19
2006 Finance Division Priorities – Steve Byone
Establish a standing enterprise risk management program with supporting governance structure
Achieve steady-state internal control management program
Complete the following audits with un-qualified/clean opinions:
financial statements internal controls benefits
Support Texas nodal implementation
Update management information reporting package and host quarterly business review session with officers
Complete 2007 budget and fee filing process within agreed schedule
Institute BOD compliance reporting framework
Enhance effectiveness of F&A Committee oversight via improved reporting of key information
Develop and communicate credit risk mitigation alternatives to ERCOT stakeholders
Implement quick hit PMO improvements and develop plan to implement long-term improvements from KEMA report
Organize business continuity planning effort
Maintain access to capital markets and liquidity funding sources and prepare for Nodal financing
Restructure procurement and contract administration to eliminate inefficient processes while maintaining desired controls
Review and streamline key policies and approval authorities
20
Future Agenda Items - Steve Byone
Overview of Corporate Policy Framework (Jan or Feb mtg?)
Quarterly Investment performance Review
Preliminary 2005 Budget Variance
Next FA meeting: January 17, 2005
21
Adjourn to Executive Session