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NEGC Audit

Project DPU-08-35

Transactional Testing

Work Plan Tasks 3.06A

Source of testing is Company responses to Data Requests RBR-01-040 and Exhibit NEGC-JMS-5

Object of the test is to review work order documentation and process and adherence to SOP 98-1 for Software





Work Order Number and Description



Steps

Work order

Package

1 Does work order package contain the following

1A The project approval documentation

1B Any change order documentation

1C ` Run of charges that detail what the costs booked were

1D The project description and estiamated cost

1E Project justification

1F Were sketches or one line diagrams included in the workorder package

1G Was the project in the original approved capital budget

1H Was copies of invoices included in workorder package?

Workorder

closing

2 Is the FERC account that the workorder was closed to proper?

2A Was the workorder closed In a reasonable time frame

2B Did the engineer supply documentation that the workorder was ready for service

2C Was the workorder unitized in a timely manner

2D Was AFUDC stopped and depreciation started timely after the project was ready for service

2E Was the proper Depreciation rate applied based on the FERC account

2F Was the actual project completion date in line with actual

2G Were retirements, if applicable, performed timely

2H Was cost of removal and salvage, if applicable, properly charged.



CWIP

3 Construction

3A Was AFUDC properly applied

3B Were overheads properly applied

3C Were charges properly supported



4 Was SOP-98-1 properly applied for software projects?

8-1 for Software









dy for service



ct was ready for service

NEGC Audit

Project DPU-08-35

Transactional Testing

Work Plan Tasks 3.06A

Source of testing is Company responses to Data Requests RBR-01-040 and Exhibit NEGC-JMS-5

Object of the test is to review work order documentation and process and adherence to SOP 98-1 for Software



Project Name Purpose Budget Actual



Harris Farm Regulator Station (NEGC-JMS-5) New Station reauired to boost pressure on the system $ 92,342 $ 89,036

FERC 376/378









Washingon St. Regulator Station (NEGC-JMS-2) Upgrade of old regulator station near Fisher to increase capacity $ 100,000 $ 98,943

FERC 378









GIS (NEGC-JMS-2) Computerized Mapping (FERC 303) $ 1,500,000 $ 1,452,403









NewHall St (NEGC-JMS-2) System Improvement Project (FERC 376/378) $172,146 $ 364,378





Conclusion: All steps were properly performed except for 3A and 4. The software project was off the shelf and therefore, SOP 98-1 does not apply and no AFUDC is booked on projects the duration of which was less than 30 days.

No exceptions were found. Except for the GIS project all others were approved under a blanket workorder process. This is typical for the company since >95% are uniform in nature and blankets



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