Michael Petterson Vice President Finance & Treasury Status of Open Audit Points Finance &Audit Committee Meeting July 16, 2012

2 ERCOT PublicJuly 16, 2012 All audit points expected to be complete by 10/31/12 Committee Brief ICMP: Status of Open Audit Points Totals

3 ERCOT PublicJuly 16, 2012 Audits Completed (last 3 months) Internal Audits Congestion Revenue Rights Processes Annual Report on Fraud Prevention, Monitoring and Testing Identity Management System Audit of Shared Drives Review of Vendors for Compliance with Contract Terms and Conditions Accounts Payable Protocol 1.4 – Confidentiality Compliance Audit Consulting on ERCOT’s Vulnerability Assessments External Audits 2011 Financial Audit (Ernst & Young, LLP) DoE Grant OMB A-133 audit (Ernst and Young) Audits in Progress Internal Audits Change Control / Release Management Cash and Investments Audit of Critical Spreadsheets Review of the Capacity, Demand, and Reserves (CDR) Report and the Seasonal Assessment of Resources Adequacy (SARA) Report Consulting on ERCOT’s Federal Visa and Permanent Residency Program for Foreign Nationals External Audits Nodal Program Audit (Navigant Consulting, LLC) 2012 Type 2 SSAE16 Audit (BrightLine CPAs & Associates, Inc.) Planned Audits (next 3 months) Internal Audits Business Continuity Plan & Disaster Recovery Plan Nodal Protocol 3.10(5) – Consistent Information in Operations Models Credit Quality Assessment Annual Corporate Controls Testing Summary Audit of Project Prioritization Annual Employee and Contractor Ethics Compliance Audit of Renewable Energy Credits (REC) Program Processes and Controls External Audits None Committee Brief: ICMP – Audits

4 ERCOT PublicJuly 16, 2012 Committee Brief: ICMP – Security Assessments Consultation/Analysis Reports Completed (last 3 months) Assessments None Open Consultation/ Analysis Reviews (in progress) Assessments None Planned Consultation/ Analysis Reviews (next 3 months) Assessments None