The New York Power Authority (Authority) is the country's largest state-operated power organization. We reviewed the Authority's management and operating practices to see whether they resulted in reasonable and business-related expenditures, including personal service contracts, discretionary spending and the cost of debt issuance. We found the Authority's management and operating practices generally resulted in appropriate expenditures in all areas examined. The Authority also monitored costs to ensure it was obtaining services and items at a reasonable price. Although discretionary spending generally appeared reasonable and proper, we did identify certain expenditures totaling approximately $340,000 over the two-year audit period where we question if the purpose and/or the amount of such expense represents the best use of public funds. These expenses included amounts the Authority paid to host annual parties and picnics for employees, retirees and their children; for empathetic flowers and other gifts; and for other socially-oriented events. We brought these issues to the attention of Authority officials, who agreed to take steps to minimize these costs in the future.