Specifications include, but are not limited to: A. Compliance Services 1. Implement Formal Control Framework in Line With COSO: The Authority recognizes the need to formalize and align its control framework over financial reporting with COSO requirements. Formalizing a control framework has the benefits of standardizing expectations on controls performance and providing a holistic approach to identify gaps that expose the Authority to material misstatements, errors, or fraud and opportunities to automate existing control processes (i.e., implementing ERP workflows, configurations, and other automated controls). The work to support the Authority’s successful implementation will require, but is not limited to: • Gap analysis on automated controls and configurations in financial reporting systems as well as tools available to continually assess the effectiveness of automated controls. • Gap analysis for current control framework template’s components and best practices • Creation of tools, templates, and an implementation approach to support on-going COSO compliance (self-testing, deficiency analysis, etc.) • Development of a risk assessment model to apply self-testing of key financial controls for operating effectiveness. • Development of desktop procedures for key accounting processes • Aid in the development of process design documentation (narratives, process flows, etc.) • Evaluation of key risk areas to include in the COSO framework specific to the utility industry, industry’s environment, and utility accounting. • Gap analysis for financial policies related to internal controls over financial reporting. • Creation of training material related to financial compliance. 5 | P a g e • Research and Guidance on FERC, US GAAP and GASB • Guidance on Utility Accounting Practices B. Financial Transactions Structuring and Agreement Review Services 1. Review agreement to the new accounting policies To ensure compliance with accounting and regulatory standards and strengthen our internal controls, the Authority is documenting our accounting policies. The work requested may include, but is not limited to the following: • Providing inputs on the industry standards • Providing guidance on the regulatory standards • Reviewing our policies to see if they comply with applicable standards • Reviewing the impact of implementing the new policies on our financials
