Specifications include, but are not limited to: The auditor selected shall: • Review Case Nos. 12-530-GA-UNC, 13-1890-GA-UNC, 18-298-GA-AIR, et al., 20-99-GA-RDR, 21-620-GA-RDR, 22-620-GA-RDR, 23-620-GA-RDR, 24-620- GA-RDR, 25-620-GA-RDR, 24-832-GA-AIR, et al., and 26-620-GA-RDR. • Review and audit all CEP-related schedules and work papers in the current filing to ensure accuracy of the required CEP formula as filed in Case Nos. 12-530-GA-UNC, 13-1890-GA-UNC, 18-298-GA-AIR, et al., 20-99-GA-RDR, 21- 620-GA-RDR, 22-620-GA-RDR, 23-620-GA-RDR, 24-620-GA-RDR, 25-620-GARDR, and 24-832-GA-AIR, et al. This includes, but is not limited to, PISCC, property tax, depreciation, and incremental revenue. • Read and become familiar with all applicable testimony and work papers. • Determine the total company plant in-service and depreciation reserve for each account and subaccount for the audit period. • Provide a determination as to the accuracy and completeness of Applicant’s CEP plant records and continuing property record. • Ensure CEP plant in-service transactions were properly classified as a capital expenditure. • Identify subaccounts and/or functions for the determination of allocation factors and/or depreciation expense. • Perform physical inspections to confirm the asset’s used and usefulness. o This portion of the audit may be performed in a virtual format. • Identify and assess the necessity, reasonableness, lawfulness, and prudence of the Company’s CEP capital expenditures and assets for the audit period. • Identify and assess the necessity, prudence, and reasonableness of the Company’s policies and practices for CEP plant additions, new construction, plant replacement, and plant retirements for the audit period. • Identify and assess the necessity, reasonableness, lawfulness, and prudence of the principal causes for increases in the Company’s CEP capital expenditures for the audit period. • Identify and assess the reasonableness and prudence of the Company’s costcontainment strategies and practices in the use of outside contractors and the use of internal company labor for CEP capital expenditures and assets for the audit period. • Utilize the auditor’s and/or retained subcontractor’s familiarity and experience with natural gas distribution utility operations and capital spending practices to identify and assess the reasonableness and prudence of any other Company capital spending policies and practices or lack of such practices not specifically identified herein. • Recommend and support specific adjustments to the CEP plant in-service balance based on any findings of lack of necessity, unreasonableness, unlawfulness, or imprudence.
