Message-ID: <15145772.1075840849745.JavaMail.evans@thyme>
Date: Fri, 14 Sep 2001 08:01:19 -0700 (PDT)
From: laura.luce@enron.com
To: louise.kitchen@enron.com, john.lavorato@enron.com, s..shively@enron.com
Subject: FW: enovate audit
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For your information.

Laura

 -----Original Message-----
From: =09Penman, Gregg =20
Sent:=09Friday, September 14, 2001 9:56 AM
To:=09Tomaski, Richard; Simpson, James; Fascetti, Lee; Rodrigue, Robin; Pik=
ofsky, Lynn; Kimbrough, Jona
Cc:=09Luce, Laura
Subject:=09enovate audit

As most of you are aware, People's internal audit team, with assistance fro=
m an audit consultant specializing in trading operations, has been conducti=
ng an audit of enovate business processes, reporting, and general operation=
s.  The audit has been concluded with the issuance of a formal report to Pe=
ople's senior management as well as a PERC/enovate response to their review=
.  Overall, People's audit team found enovate to be a very well managed ope=
ration with proper controls, appropriate separation of duties and adequate =
reporting. As noted in their report, "...the enovate team has done an outst=
anding job of creating a well-organized and profitable business.  We found =
that enovate's and Enron's staffs were extremely helpful, knowledgeable and=
 willing to assist us during the course of the audit."  Furthermore, "The a=
udit found that the general management of enovate's business processes was =
very good, and exceeded that of many entities that had been in business for=
 several years.  Our review of enovate found the trading activity to be wel=
l monitored with adequate segregation of duties between the trading, manage=
ment and support functions." =20

Everyone deserves credit and should take pride in the overall findings of t=
he audit, particularly given the complexity of enovate and our sometimes li=
mited resources.  Also, thank you for your patience and accommodations of t=
he audit team throughout the process. =20

However, like all audits there are certain items which need to be addressed=
, clarified or improved.  We have set a timeline to address each one of the=
 findings and provide an appropriate response to the audit team.  As such, =
a few of you will be requested to provide additional assistance in the near=
 future.  I will be contacting those individuals separately to discuss the =
necessary follow up.

Thanks - Gregg
