New York Power Authority
Internal Controls Over Procurement The New York Power Authority (NYPA) provides about a quarter of the electricity used in New York State, selling electricity to investor-owned utilities, large industrial customers, and government agencies in the New York City area. We examined the adequacy of NYPA’s internal controls over its procurement process. We found that NYPA had developed extensive written policies and procedures and had incorporated the necessary controls to ensure that procurement-related expenditures were authorized and appropriate.
We also followed up on certain matters addressed in our prior audit report 2001-S-64. These matters related to NYPA’s construction of a new power plant in New York City. We found that the plant had been completed and was operational, but the final cost of construction (about $740 million) was nearly twice the amount originally estimated by NYPA when the project was first approved in 1999. We also found that NYPA had implemented our audit recommendation for a fuel strategy plan at the new plant.
For a complete copy of Report 2005-S-28 click here.