Long Island Power Authority

Implementation of the New York State Governmental Accountability, Audit and Internal Control Act

In 1998, the Long Island Power Authority (LIPA) became the primary supplier of electricity on Long Island when it acquired the electrical transmission and distribution system formerly owned by the Long Island Lighting Company. LIPA contracts with a private utility (KeySpan) to suppy power to LIPA, operate LIPA’s transmission and distribution system, and collect payments from LIPA’s customers. We examined LIPA’s system of internal control and found that LIPA needed to improve the practices used in monitoring KeySpan and other contractors. We also found that LIPA needed to develop written procedures for many aspects of its operations. We further determined that a $25 million grant awarded by LIPA to Nassau County for energy efficiency and conservation projects was not awarded in accordance with established procedures, and some of the grant may not have been used for the purposes authorized by the grant award process.

For a complete copy of Report 2000-S-37 click here.
For a copy of the 90-day response click here.