Status of Open Audit Points

1. Status of Open Audit Points Michael Petterson Vice President Finance & Treasury Finance &Audit Committee Meeting July 16, 2012

2. Committee Brief ICMP: Status of Open Audit Points Totals All audit points expected to be complete by 10/31/12 ERCOT Public

3. Committee Brief: ICMP – Audits 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 ERCOT Public

4. 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 ERCOT Public