20240916AVU to Staff 2 - Attachment A.pdf

ESEV
Internal Audit Department
DATE: July 14, 2022
TO: Ryan Finesilver, Vern Malensky
CC: Kevin Christie, Nicole Hydzik, Dennis Vermillion, Tracy Van Orden
FROM: Amy Boettner
SUBJECT: Demand Side Management (DSM) Review Report
Focus Area
Our Customers
We must hold our customers'interests at the forefront of all our decisions,operating our business by showing that we
are transparent,genuinely care,and are easy to do business with.
Purpose and Scope
The objective of this review is to ensure that the DSM department has appropriate policies and
procedures in place to accurately process qualified customer rebates. Residential and non-
residential rebates issued between January 1, 2021 and March 31, 2022, were included in the
scope of this review.
Procedures
Internal Audit performed the following procedures:
• Interviewed DSM department management in order to determine areas of risk/concern
within the department.
• Obtained an understanding of the various reviews performed by third parties (Cadmus,
ADM and Associates, WA/ID/OR commissions, etc.) and inquired of any material
exceptions/findings from recent reviews.
• Reviewed the DSM Standard Operating Procedures (SOPs) to understand the rebate
qualifications and the procedures for processing rebates.
• Selected 25 residential rebates (including three low-income) and 25 non-residential
rebates (including five site-specific) and performed the following procedures:
o Verified the rebate qualifications were met and the rebate amount paid to the
customer appeared accurate.
o Confirmed all required paperwork, signatures, approvals, etc. were obtained prior
to the customer receiving payment.
This review was conducted in conformance with the International 5tandards for the Professional
Practice of Internal Auditing.

Observation and Recommendation
Observation:
1. One low-income rebate selected for testing was issued for more than the agency support.
The SOPS state that the rebate issued should match the support. In this instance, the rebate
was issued in excess of$13.52.
Recommendation:
The agency has been informed of the over payment. In response, they have put procedures
in place to ensure this does not occur in the future. Due to the minimal amount, no further
follow-up is required.
Conclusion
Internal Audit noted no significant findings, and it appears the DSM department has appropriate
internal controls in place to accurately process qualified customer rebates.