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Federal Energy Regulatory Commission



Enforcement Audits

 
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Audits



FERC audit staff examines the conduct of regulated entities and the role that audits play in encouraging compliance with Commission requirements. Audits vary in type, scope, and objectives, but primarily focus on materially relevant compliance with Commission requirements, transparency, accountability, operational efficiency and effectiveness, and other areas the Commission deems necessary to accomplish its mission. FERC staff plans, conducts, and reports the results of audits of jurisdictional companies in the wholesale electric power, natural gas pipeline, and oil pipeline industries.

Commencement letters are sent to the entities being audited and publicly posted on the Commission’s online elibrary (eLib). The results of completed audits are also published on the eLib system, along with the order issuing their release and the comments of the audited entity. Through these means, audit staff provides audited entities and the industry with insight into areas of emphasis and concern. In addition, the detail in the scope and methodology section of the public audit reports is designed to enable company compliance staff to replicate procedures DAA employs in its audits and provides companies with the necessary information to evaluate their compliance programs. The most recently completed audits are summarily reported and trends noted in the Annual Report on Enforcement PDF.

Overview of How Audits are Conducted

The Commission prepares an annual audit plan that identifies the audit topics for the upcoming fiscal year. Most audits are planned and prioritized using a risk-based approach. Audit topics and candidates included in the plan come from many sources including, but not limited to:

  • Information from a monitoring activity;
  • Internally developed screens that considers various risk factors;
  • Input from program offices and agency officials;
  • Information gleaned from ongoing and completed audits;
  • Referrals from investigation activity; and
  • Commission orders.
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Outcome of Audits

The audit outcomes are through fiscal year 2017. The Commission’s fiscal year begins October 1 and ends September 30 of the following year. Since 2005, there have been 2259 audits findings. Auditors have made 3,111 recommendations for corrective actions in which jurisdictional companies developed robust compliance plans to implement staff’s recommendations. Staff monitors implementation of all of these recommendations until they are properly implemented. Learn More