ERO Enterprise Compliance Auditor Manual & Handbook Florida Reliability Coordinating Council, Inc. Spring Workshop April 8-10, 2014

Transcription

1 ERO Enterprise Compliance Auditor Manual & Handbook Florida Reliability Coordinating Council, Inc. Spring Workshop April 8-10, Presentation Team Andrew Williamson, FRCC Adina Mineo, NERC

2 Agenda Handbook Overview Project Overview Manual and Handbook Format, Style, and Design Questions and Answer Session 2

3 Handbook What is the Auditor Handbook? In addition, what the Auditor Handbook is not Where did the Auditor Handbook come from? Who developed it? Why was it developed? 3

4 Handbook Where did the Auditor Handbook come from? ERO Audit Checklist Regional Entity Executives ERO wide team assembled to develop it. 4

5 5 Handbook Team

6 What the Handbook is: Companion Document to the ERO Auditor Checklist Process guide One Section or Chapter of the Auditor Manual A tool for both the experienced and new auditor A tool to support good audit practices 6

7 What the Handbook is: A section of the Auditor Manual that: Intends to be practical & used as a reference document Serving both new and experienced auditors, and compliance personnel & management Informs Who is responsible for doing its action items What is the audit work & audit work papers When an activity is to be done Implements Consistency of approach & risk assessment 7

8 What the Handbook is NOT: An audit testing document A tool that will tell an auditor how to determine compliance Does not interpret a Reliability Standard Does not limit auditor professional judgment 8

9 Handbook Handbook Overview and Organization Area 01- Pre-Audit 02- Planning 03- Fieldwork 04- Reporting 05- Performance Task Action Item 9

10 Handbook Number Formatting XX - XXXX Area XX - Task XX Action Item XX The first two digits indicate the Area: 01- Pre-Audit 02- Planning 03- Fieldwork 04- Reporting 05- Performance Checklist Alignment: The number formatting currently matches the Checklist to reflect the five Audit Cycle Areas. The middle two digits indicate the Task. Each Area is typically made up of multiple tasks. There are a total 30 tasks across 5 areas in the check list. This provides for expansion of Tasks within each area. Checklist Alignment: The use of a decimal place is replaced with a two digit designate following the dash. The numbering sequence provides for expansion without impacting the number formatting. The last two digits indicate the Action Items. There are a total of 79 Actions within the 30 Tasks, across the five Areas. Again, the numbering sequence allows for expansion if necessary. Checklist Alignment: Bullet points in the Checklist are replaced with a two digit trailer in order to provide a smooth reference to specific Action Items within the Task. 10

11 Project Overview Project Milestones and Accomplishments Next Steps and Key Deliverables Training Approach and Schedule Manual and Handbook Format, Style, and Design 11

12 Milestones and Accomplishments June July Aug Sep Oct Nov Dec Jan 2013 June Drafting team formed September Handbook format and preliminary content presented to compliance auditors December Handbook contents delivered to regional executives 2014 January Drafting team reviews feedback and updates the handbook for final first draft edits 12

13 Next Steps and Deliverables Feb March April May June July Aug Sep Oct Nov Dec March ERO Handbook provided to Compliance Auditors April Post ERO Handbook on the NERC website August Complete training for all Compliance Auditors September All audit engagement use and follow the handbook Industry Perspective Common language to communicate with industry Standardized audit approach across the ERO Enterprise Transparent audit activities 13

14 Handbook Training for Auditors All auditors review Handbook and attend appropriate training Q Q Q Q Q Spring Workshop Webinar 1 Continued rollout in each region Webinar 2 Webinar 3 Webinar 4 Webinar 5 Webinar 6 Webinar 7 Fall Workshop Intro to Handbook video posted Incorporated into online courses and Team Leader training Spring Workshop * February Initial rollout in each region * September 1 st Fully implemented

15 Audit Cycle and Checklist Areas Checklist Area Cycle Color Pre-Audit Planning Audit Cycle Fieldwork Reporting Performance Assessment 15

16 Checklist to Handbook Compliance Audit Check List Area Task Action The Handbook is designed to support the Checklist layout. The Handbook will consist of 5 Areas; 30 Tasks; and 77 Action Items. XX-XXXX Area Each section of the checklist is supported by a page that further explains the Area; Task; and Action Item. Task Action Items 16

17 Handbook Some questions we have heard already: I am a CIP auditor does the Handbook apply to me or is it only an O&P thing? Will the Handbook tell me how to determine compliance? 17

18 Handbook Six key dates in the audit process Entity Reliability Assessment complete (t-tbd) days Entity Audit Notification Package (t-tbd) days Entity Evidence due date (t-tbd) days Start date of audit (t) End date of audit (e) Audit Report submitted (e+tbd) days 18

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20 Handbook Task Flow Production

21 Handbook Task Flow Evaluating the registered entity is the first of Ten Tasks in Entity Evaluation area: ( ) Registered Entity History and Functions ( ) Contractual Obligations ( ) Organizational and Corporate Structure ( ) Regional Entity Enforcement Considerations ( ) NERC Audit Considerations ( ) Registered Entity Research ( ) Registered Entity Subsidiaries & Regional Presence ( ) Entity Profile and Reliability Assessment 21

22 Handbook Action Item Process Flow

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24 Manual What the Auditor Manual is: A larger document that has the Auditor Handbook and Auditor Checklist as the two first components Example of possible future content Sampling Methodology 24

25 Compliance Auditor Tool Kit RSAWs Manual & Handbook Training Tools & Processes Auditor Knowledge and Experience Compliance Activities: 1. When 2. How 3. What Reinforce: 1. Activities 2. Methodology 3. Approach Compliance Design: 1. Templates 2. Requirements Standard Specific Test Plans & Methodology 25

26 Summary What the Auditor Manual is: Companion Document to Auditor Checklist Process guide for steps to complete an audit Predictable Activities and timeline Credible approach based on authoritative documents What the Auditor Manual is not: Testing document to determine compliance 26

27 27 Questions?