Case Study Ten: SOX and Internal Control Project Management Leadership and Resources Provided to an Energy Company

Summary Level

A large public energy company with $6 billion in revenue and multiple subsidiaries was required to document and implement internal controls throughout the company and at various locations for Sarbanes Oxley (SOX) requirements.

Details

A large public energy company with $6 billion in revenue and multiple subsidiaries was required to document and implement internal controls throughout the company and at various locations for SOX requirements. The Company delivers gas and electric service to approximately 2 million customers throughout Delaware, New Jersey, Maryland and the District of Columbia.

We provided SOX project management for the two largest divisions of the Company. We assisted in the execution of all aspects of a detailed SOX implementation project plan including internal controls training, risk assessment and scoping, documentation of processes and controls, remediation efforts with process leaders, and implementation of best practices for monitoring controls. We coordinated efforts among internal audit, accounting, operations, and information technology resources as well as external resources from two of the “Big Four” accounting firms and the Company’s external auditors.

After developing a detailed project plan, management was able to train and coordinate the activities of several hundred employees to efficiently implement a risk assessment process, document business processes to include flowcharts, risks, control activities and monitoring plans in all key areas of the business, including IT and entity level controls (ELC’s). After identifying control weaknesses, remediation plans were implemented and tested to management’s satisfaction. Management was pleased with the efficiency of the project implementation and happy with the results of a greater controlled financial operation with ongoing monitoring.