Message-ID: <28793643.1075855892706.JavaMail.evans@thyme> Date: Thu, 11 May 2000 00:55:00 -0700 (PDT) From: brent.price@enron.com To: brenda.herod@enron.com, steve.venturatos@enron.com, lisa.csikos@enron.com, rita.wynne@enron.com, leslie.reeves@enron.com, kristin.albrecht@enron.com, kim.theriot@enron.com, dan.houston@enron.com, stacey.white@enron.com Subject: Houston Gas & Power Controls/Standards Assessment Cc: sally.beck@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: sally.beck@enron.com X-From: Brent A Price X-To: Brenda F Herod, Steve Venturatos, Lisa Csikos, Rita Wynne, Leslie Reeves, Kristin Albrecht, Kim S Theriot, Dan Houston, Stacey W White X-cc: Sally Beck X-bcc: X-Folder: \Sally_Beck_Dec2000\Notes Folders\Price, brent X-Origin: Beck-S X-FileName: sbeck.nsf As you all are aware, there is a heightened awareness throughout the company of the need for establishing global trading control standards and developing a process by which we will track and monitor on a regular basis our success at achieving those standards. I have been asked by Sally to take the lead on meeting this objective. For the last several weeks, I have been involved in an extensive review of the London office controls and procedures for their gas and power trading businesses. We have used the findings of this review to start developing an assessment of controls, standards and measurement methodology for the London office. In order to work towards our goal of developing global trading standards across Enron, we need to perform the same controls and standards assessment for the Houston gas and power businesses (we will assess global products and other commodities traded at a later date). I will be in Houston Tuesday and Wednesday of next week to help facilitate this process. I have scheduled a meeting next Weds., May 17 from 9:00 - 11:30 in EB49C1 so that we may review our controls, define the standards of meeting those control requirements and assess the risk associated with those controls not operating properly. Before that meeting, I would like for all of you to develop for your respective functional responsibilities the following: - a listing of all controls your group is responsible for (i.e. cash collections are timely) - a proposed standard that will ensure each control is being met to its maximum effectiveness (i.e. cash is collected within 30 days of deal date with exceptions noted) - a quantitative measure to allow performance monitoring of each standard (i.e. % of cash collected within 30 days) - a description of current capabilities to calculate, track and report each measurement (i.e. automated A/R aging report) I would urge you to be as detailed as possible in listing your control functions and to solicit feedback from your managers and leads. A lot of work has already been done to identify this information so I would hope time requirements for this will not be extensive. I have attached a worksheet to be completed with the information discussed above. I have also attached a high level summary of proposed gas and power standards to use a guideline but it is certainly not all-inclusive and should be revised as necessary. As discussed above, we will review the controls and standards listings for each functional group in the Weds. meeting and also assess the risk associated with each control. I would like to achieve consensus on gas and power operating standards for Houston by the end of the meeting. Let me know if you have any questions or comments regarding this process. I look forward to seeing you next week.