July 1, 2014
Southwestern Federal Power System’s Fiscal Year 2013 Financial Statement Audit
We contracted with the independent public accounting firm of KPMG LLP (KPMG) to conduct the audit of Southwestern Federal Power System’s financial statements and report on applicable internal controls and compliance with laws and regulations. KPMG concluded that the combined financial statements present fairly, in all material respects, the respective financial position of SWFPS as of September 30, 2013 and 2012, and the results of its operations and its cash flow for the years then ended, in conformity with the U.S. generally accepted accounting principles.
The audit identified one internal control deficiency over Accounting for Utility Plant in which depreciation for additions and betterments to existing plant in service was not recorded in accordance with accounting policies. Additionally, an internal control deficiency over Accrued Expenses was identified in which expenses for goods and services received were not properly accrued. U.S. Army Corps of Engineers management agreed with the findings and recommendations and agreed to take the necessary corrective actions.
Topic: Financial Statement