GCPUD Press Release

FOR IMMEDIATE RELEASE
October 30, 2006
(number of pages 2)

State Auditors Reveal Federal Finding at Grant PUD
Management was Previously Aware of Issues and Working to Resolution

EPHRATA, WA -- The Washington State Auditor’s Office reported the results of a recent audit of the utility’s 2005 financial records to Grant PUD Commissioners Monday, October 30.

The audit revealed one reported finding where Grant PUD did not comply with federal regulations in the handling of federal grant funds provided by the Department of Energy (DOE) for the Wanapum Dam advanced turbine project. The finding notes two areas where internal controls were lacking in the management of these federal funds.

The first area involved a contract for fish monitoring services funded partially with the federal grant funds. Contract provisions called for 10 percent of the payment to the contractor to be withheld pending receipt of the final report. Grant PUD billed the DOE for its full share of the contract invoice prior to the actual disbursement of the final payment. Grant PUD paid the DOE $3,486.11 in interest due from the date the funds were drawn to the date the funds were actually paid to the contractor.

The second area noted in the finding involved the lack of contract language to ensure that contractors and subcontractors were not suspended or debarred from participating in federally-funded grant programs.

In a separate management letter, the auditor noted an additional three areas where the utility’s internal controls could be improved. These areas include policies and procedures for payroll reporting, internal controls over information technology security and operations, and internal audit procedures.

Grant PUD has taken action to review its procedures and ensure compliance with all federal grant requirements. PUD staff has also taken initiatives to address the other recommendations to improve the utility’s internal controls and operating efficiency.

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Grant County Public Utility District is a Washington state municipal corporation that began electric service in 1942. Owned by the people it serves, Grant PUD generates and sells electricity to Grant County residents and millions of customers throughout Central Washington and the Pacific Northwest. The Priest Rapids Project, comprised of Priest Rapids and Wanapum Dams, produces nearly 2,000 megawatts of clean, renewable and reliable electricity – enough to supply a city the size of Seattle. A leader in science based technology; Grant PUD is committed to finding effective measures for the protection, mitigation and enhancement of salmon, steelhead and other natural and cultural resources.

MEDIA CONTACT:
Rita Bjork
(509) 766-2530 / rbjork@gcpud.org