1 Example of Audit Committee Package Company Source: Protiviti KnowledgeLeader Audit Plan by Division Proposed Plan

2 Example of Audit Committee Package Company Source: Protiviti KnowledgeLeader Audit Plan by Business Risk Area

3 Example of Audit Committee Package Company Source: Protiviti KnowledgeLeader Plan Highlights Company Energy Resources  Continued Gas Risk Management Focus  New Electricity Risk Management Audits  Ongoing Audits at ABC Pipeline and DEF Gas (UK) Company Energy Delivery  Focus on Control and Allocation of Costs  Involvement in Consolidation of Customer Information Systems

4 Example of Audit Committee Package Company Source: Protiviti KnowledgeLeader Plan Highlights Company Power Supply  Focus on Control and Allocation of Costs  New Electricity Wholesale Processing Audit Company Marketing Services  Focus on New Systems and Information Flow  Continued Testing of Billing Processes  Testing of Controls over Outside Service Costs

5 Example of Audit Committee Package Company Source: Protiviti KnowledgeLeader Plan Highlights Support Services  Focus of Disbursements and Cost Control  Review of Performance Management Process  Telecommunications, LAN Security and Other Information Technology Reviews  Ongoing Review of Reengineered Processes  Focus on Gas Supply Purchases, Allocations, Reporting and Margin Generation Activities

6 Example of Audit Committee Package Company Source: Protiviti KnowledgeLeader Proposed Audit Services Plan Audit Name Last Audit Audit Description ENERGY RESOURCES Gas Risk Management Reviews Gas Risk Management Monitoring Gas Physical Contract Compliance 95 - Test risk management controls, transactions and reporting on a quarterly basis. Determine parameters, procedures and controls continue to operate effectively. Test compliance and opportunities with delivery commitments on physical gas contracts. Electricity Risk Management Electricity Trading Actualization Procedures Evaluate sufficiency of procedures and controls relating to electricity trading activities. Test accuracy and completeness of physical and financial trade data. Review actualization and physical gas disbursement procedures. Gas Management System Katy Pipeline Construction Costs ABC Gas Pipeline Balancing Review controls and data integrity within this system. Test propriety of costs allocated to ABC during construction of this pipeline. Review volumetric and exchange balancing controls and procedures. Human Resources/Payroll Platinum System Controls LAN Security - Omaha Evaluate controls and interface between human resources and payroll process. Review general data processing controls. Test security surrounding Local Area Networks residing in A City. DEF Operations XXX Follow-Up Activities External Audit Participation Review gas trading operations. Follow-up on significant opportunities from previously issued audit reports. Participate with financial audit teams in annual audit. APPENDIX 1

7 Example of Audit Committee Package Company Source: Protiviti KnowledgeLeader Proposed Audit Services Plan Audit Name Last Audit Audit Description ENERGY DELIVERY Purchasing/O&M Cost Control FlexiBill Billing Controls Iowa Cost Allocation 93/ Review major contracts, PO’s and purchasing practices, and propriety of costs incurred. Review the recently implemented FlexiBill system. Assist in audit of the Iowa Cost Allocation report for allocations to nonregulated operations. Field Office Reviews CIS Process Flows CIS Consolidation Testing Review controls over cash, time allocation, inventory, security, policy compliance, etc. Process map customer, billing, receipt, etc. processes to evaluate consolidation of CIS systems. Test data and processes in consolidated CIS systems. CIS Implementation Collection Activities Gas Safety Compliance Review CIS consolidation implementation, rollout and training. Test effectiveness of collecting past due accounts through collection agencies. Review compliance prior to PSC audits. CDO NGL - Cheney Plant WMZ NGL - Spivey Plant XRT System Conversions 94 - Test overhead allocation compliance at this non-operated plant. Test to ensure systems being processed in Ourtown are operating effectively. LAN Security - Ourtown LAN Security - Urtown Fixed Asset Tax Reporting Test security surrounding Local Area Networks residing in Ourtown. Test security surrounding Local Area Networks residing in Urtown. Test fixed asset records and update processes to ensure validity of data for tax purposes. UED Follow-Up Activities External Audit Participation - 95 Follow-up on significant opportunities from previously issued audit reports. Participate with financial audit teams in annual audit. APPENDIX 2

8 Example of Audit Committee Package Company Source: Protiviti KnowledgeLeader MARKETING SERVICES Audit Name Last Audit Audit Description POWER SUPPLY Purchasing/O&M Cost Control Environmental Compliance Electricity Wholesale Processing 93/ Review major contracts, PO’s and purchasing practices, and propriety of costs incurred. Evaluate sufficiency of environmental compliance program. Review billing and accounting procedures for electricity wholesale transactions. ECA Adjustments MM Energy Center UPS Follow-Up Activities Review accuracy of ECA adjustments in Colorado and Kansas. Test costs allocated to this non-operated power plant by the operator. Follow-up on significant opportunities from previously issued audit reports. External Audit Participation95Participate with financial audit teams in annual audit. UES Billings (FlexiBill) UES Sales Taxes UES Information/Reporting Test propriety and accuracy of billings handled by FlexiBill. Review process to ensure appropriate sales taxes are collected and remitted. Identify UES business information needs and reporting requirements. UMS Margin Incentives Cost Allocation Process Contract Management System Test propriety and realization of margins utilized in incentive compensation computations. Review reasonableness of UMS allocations to regulated and nonregulated businesses. Test controls and data integrity built into this newly enhanced business system. Outside Services/Cost Control Ad Agency Contract Compliance Back Office Review vendor evaluation and contracting processes, and propriety of related costs. Test compliance by significant ad agencies with contract terms. Review infrastructure for sufficiency and ability to absorb additional operations. Data Processing UMS Follow-Up Activities External Audit Participation Test general data processing controls. Follow-up on significant opportunities from previously issued audit reports. Participate with financial audit teams in annual audit. APPENDIX 3 Proposed Audit Services Plan

9 Example of Audit Committee Package Company Source: Protiviti KnowledgeLeader Audit Name Last Audit Audit Description SUPPORT SERVICES Corporate Disbursements Processing Leased Properties 93 - Review with and train accounts payable functions on appropriate processing controls. Review lease monitoring procedures and compliance with leasing arrangements. Performance Management Process Relocation Expenses Workers’ Comp. Claims Testing Evaluate alignment of goal setting, performance tracking and incentive measurement processes. Test compliance with policies and propriety of expenses. Review procedures of third party claims processor for propriety and compliance with contract. Benefits Claims Processing Business Resumption Planning Information Technology 93 - Review claims handling and administration of benefit plan processing. Evaluate sufficiency of critical business resumption procedures. Data Center General Controls Telecommunications Program Change Control Update general controls review to ensure integrity of processing in data center. Determine and evaluate system dial-in and other telecommunication controls. Test adequacy of controls over changes to programs and data files in State A. LAN Security - Corporate Application Development Reengineering and Other 91 - Test security surrounding Local Area Networks residing in Their City. Assist in significant development projects of the Center. Customer Reengineering Projects Materials Reengineering Projects Financial Reengineering Projects Review of controls and procedures for newly designed customer processes. Review of controls and procedures for newly designed materials management processes. Review of controls and procedures for newly designed financial management processes. Risk Evaluation and Planning Follow-Up Activities External Audit Participation 95 - Continually assess risk areas and plan audits to address significant risks. Follow-up on significant opportunities from previously issued audit reports. Participate with financial audit teams in annual audit. APPENDIX 4 Proposed Audit Services Plan

10 Example of Audit Committee Package Company Source: Protiviti KnowledgeLeader Note 1: DDD Power’s audit activities are handled by a separate audit function in British Columbia. Audit Name Last Audit Audit Description SUPPORT SERVICES (cont.) Supply Services Margin Generation Activities Gas Purchases and Allocations - 95 Review 1995 recorded margins to ensure they were generated in a risk-free manner. Test propriety of gas purchasing, cost allocations and contract administration. Gas Cost Reporting Capacity Release/Negative Reserves Plan vs. Actual Cost Review Evaluate the business needs relative to the reporting of gas cost information. Review of negative reserves in nomination process to evaluate supply risks. Analyze actual cost variances versus plan to determine potential regulatory exposures. Fixed Price Irrigation Contracts POWERLink Enhancements TIDBITS System Test propriety of contracts to supply gas to irrigation customers. Review integrity of controls and procedures in POWERLink system enhancements. Review integrity of data and procedures in this new, critical business system. Follow-up Activities External Audit Participation - 95 Follow-up on significant issues from previously issued audit reports. Participate with financial audit teams in annual audit. APPENDIX 5 Proposed Audit Services Plan