OCA Audit Reports

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Issued: January 2006

SUMMARY

Austin Energy is assessing risks and incorporating the results into its strategic planning process, but there is no formal enterprise risk management program. The current process is highly dependent on the experience and expertise of the AE Leadership Team, many of whom are eligible to retire in the next three years.

AE has risk mitigation programs that are helping the utility achieve its goals of rate stability, reasonable rates, and improving to an “AA” bond rating. However, workforce development issues will continue to be a serious issue for AE. In addition, AE needs to clarify the use of its Repair and Replacement Fund, and needs to set money aside in its Non-Nuclear Decommissioning Fund, rather than recognizing a liability to be paid from the operating fund as costs are incurred.

Our auditors issued four recommendations to address the issues related to AE’s risk mitigation programs. AE has concurred with these recommendations.

Download the entire text of our Austin Energy Risk Mitigation (Size: 252 KB) in Adobe Acrobat. You will need Adobe's Acrobat Reader to view these files. Or request a hard copy of this audit report, No. AU05103, by submitting this audit report request form.

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