Study Design Matrix Theme I Planning and Capacity Addition

AUDIT OBJECTIVE: 1.1 To ascertain whether annual plans were prepared in accordance with National Electricity Plan and the company undertook transmission system improvements /additions systematically to achieve economy, efficiency and effectiveness . Sub-Objective
1.1.1 To assess whether the percentage of transmission capacity of the State Transmission Utilities (STU) remained same or enhanced over the year.

Audit criteria
Percentage of different grade of transmission lines and SubStations vis--vis previous years percentage

Audit Evidence & Data Collection

Data available from Central Planning and Engineering Department (CP & ED) office of STU and Register maintained for the purpose.

Data Analysis
Detailed calculation of five years Transmission line & Sub-Stations would be prepared year wise. A graph in this regard may be prepared Data of transmission capacity built up may be analyzed for last five years . Analysis of assessment of requirements incorporated in Corporate Plan with reference to National Electricity Policy/ Plan Five years augmentation capacity of transmission lines and Sub-Stations to be shown in a table. To assess whether there was Shortfall/ surplus in actual capacity addition vis-vis planned augmentation and reasons thereof to be analysed Reason behind not keeping the pace with growing demand to be analyzed.

1.1.2 Whether assessment of requirement of transmission lines transformers and SubStations was done with reference to targets set up in NEP. 1.1.3 To assess the augmentation of transmission capacity keeping in view the massive increase planned in generation

Corporate Plan adopted by the Board for the relevant period

Data available from Central Planning and Engineering Department (CP & ED) office of STU and Register maintained for the purpose.

Generation Plan as envisaged in the NEP.

Detail records of CP&ED to be examined

1.1.4 To assess whether overall capacity of the substations was as per generating load 1.1.5 To assess whether close coordination among various agencies was maintained while planning schemes/projects so as to avoid any conflict of interest among various stakeholders.

Sub-stations capacity norms fixed Guidelines issued by the GoI, State Government, CEA/ CPCB/ SPCB and other authorities. Procedures/ clearances prescribed in DPR

Data on overall capacity of substations and capacity required. Records relating to disputes with various agencies DPR/ Plan Document.

Comparison of actual sub-station capacity with the capacity required. Analyze whether synchronisation existed between various agencies. If not, the reasons may be suitably commented.

Theme II Project Management

AUDIT OBJECTIVE: 2.1 To ascertain whether the contracts for the projects were awarded as per Annual Plan ensuring economy and transparency. Sub-Objective Audit criteria Audit Evidence & Data Data Analysis Collection
2.1.1 To ascertain whether the award of contracts was based on a well designed packages (excluding financial bid) . To ascertain whether tenders were finalized within the prescribed time fixed by CEA/State Regulatory Authority/STU Plan from the date of decision. Instructions contained in the NEP, guidelines issued by CVC, provisions of manual with regard to award of contract /works. Time schedule for placement of orders as per guidelines of CEA/ SRA/STU Plan from the date of decision. Contract/works award files To analyze whether the contract was awarded on lump-sum basis or in packages to ensure competitive price. Analyze the reasons for the delay in inviting and finalizing the tenders and ascertain the impact of delay resulting in time and cost overrun.

2.1.2

Files relating to the tenders.

2.1.3

(a) To ascertain whether tendering process was competitive and according to the Tender Transparency Act of the respective State. (b) Whether guidelines of RBI have been observed in contracts with foreign suppliers. To ascertain whether clauses to safeguard the interest of the STU have been incorporated in the agreement . To ascertain whether price escalation allowed due to delayed execution of contract was beyond contractual provisions.

Tender Transparency Act / RBI guidelines / FEMA.

Tender files and DPR

Comparison of contract price with that of the estimated cost calculated on the basis of inflation rate considered by SERC for capital component of the project

2.1.4

Terms & conditions of contract

Tender files & contract

Analyze the instances of payment in violation of terms and conditions of the agreement. Comparison of the terms & conditions of the contracts with escalation allowed to see whether it was justified.

2.1.5

Terms & conditions of contracts .

Agenda notes and minutes of the Board, recommendations of committee, if any, for payment of escalation.

AUDIT OBJECTIVE: 2.2 To ascertain whether the execution of projects were managed economically, effectively & efficiently Sub-Objective Audit criteria Audit Evidence & Data Data Analysis Collection
2.2.1 To ascertain whether the projects from 10th Plan continued to be implemented during 11th Plan Spilled over Projects taken up during the 11th plan DPR & tender for award and execution of project Analyze whether the spilled over projects from 10th plan were omitted or ignored. If so, reasons for the same to be commented with consequence of non-completion of capital projects.

2.2.2 To assess whether the projects have been identified & planned adequately for survey, investigation and obtaining clearances from various agencies.

Time limit anticipated in feasibility report/Plan Document.

Survey & investigation reports and various clearances obtained in respect of the projects undertaken during the review period.

Analyze the survey and investigation report and clearances obtained from various agencies and examine whether there was delay in obtaining these reports. Reasons to be analyzed whether these were avoidable.

2.2.3 To ascertain whether procurement of materials and erection contract was awarded through open tenders as per policy of the STU 2.2.4 To ascertain whether the monitoring was effective to ensure timely commissioning of the Sub-stations and transmission lines to minimise time and cost overrun

Tendering procedures and Policy Tender papers such as notice inviting decision / strategies of the STU tender, comparative statement, selection of contractors. Time schedule for commissioning as per the contract Work execution file, correspondence file and progress reports of each item of work

Comment may be proposed on deviation, if any from the policy/tendering procedures. To analyze the reasons for delay in commissioning of the sub-statiom/ transmission lines and consequential time and cost overrun with a downtime analysis of both controllable and non controllable factors.

2.2.5 To ascertain whether the operational parameters of transmission system were according to the design specifications 2.2.6 To ascertain whether all important works and auxiliary equipments were ready before commissioning of sub-stations.

Design specifications.

Operational performance data of the transmission system Records relating to commissioning of sub-stations and energisation of transmission lines

To analyze the achievement of operational parameters against specifications. To analyze the reasons for delay in commissioning, loss due to nonevacuation of power from generating units on that account.

Time schedule for stabilization of transmission system as prescribed by CEA and terms and conditions of contract

Theme III Financial Management

AUDIT OBJECTIVE: 3.1 To assess whether the funding requirements were realistic, the sources of funds clearly identified and funds were sanctioned/released in time by the funding agency. Sub-Objective
3.1.1 Whether budget for Capital Expenditure has been prepared as per Corporate Plan. To assess physical and financial targets and actual achievement there against in the construction of new transmission lines and Sub-Stations by the Board / STU during the past five years ending March 2011. To assess whether the means of each and every scheme were identified in the project report and envisaged funding arrangement with regard to utilisation at the time of actual execution being cost effective. 3.1.4 To assess whether the funds were sanctioned and released by the financing agency in time so that the projects were completed within the scheduled period. Time schedule for drawal of loan as per agreement of the loan in accordance with the financial targets. Budget allocation of grants for the works during the period. Loan agreement for sanction of fund with different financial agencies. Government order with reference to grants provided for implementation of programme

Audit criteria
Budget Documents

Audit Evidence & Data Collection

Long term and short terms capital Budget for the year 2006-11 to be checked. Progress report of different period such as monthly, quarterly and annually.

Data Analysis
To analyse whether corporate plans prepared was realistic. To analyze whether funding requirement was realistic with reference to physical target. To analyse the physical progress of the work w.r.t to target Whether monitoring was adequate To analyze the comparative chart with reference to sources identified in project report.

3.1.2

Annual planning both physical and financial.

3.1.3

Sources of financial assistance identified in approved DPR.

Costs benefit report/ comparative chart for assessing the cost of funding

Analysis of the agreement regarding time of sanction, withdrawal schedule etc to be made. Different MOUs in respect of grants/ other assistances with the Central/State Government by the STU to be analyzed and scrutinized.

3.1.5 Whether resources were mobilized in time to bridge the gap between requirement and availability. 3.1.6 Whether there was proper coordination & synchronization for transfer of funds for various stages of the project activities 3.1.7 To ascertain whether surplus fund were suitably invested.

Planning for mobilization of financial resources

Consent letter from financial institutions for financing the shortfall in mobilization of resources. Periodical financial and physical progress reports

To analyze the reasons for delay in mobilization of resources resulting in availing of term loans at higher rates of interest, if any. Analyze the financial and physical progress reports to ascertain the actual achievement under both the categories and ascertain the reasons for shortfall Comment on delayed investment due to management indecision Fund kept idle without investment, which leads to loss of interest. To analyse whether investments made were at competitive rates.

Mechanism prescribed to monitor transfer and tilization of funds.

Term deposit should be with scheduled commercial banks. DPE Guidelines Investment Policy of the STU

Cash flow position of the STU Investment decisions.

3.1.8 Whether funds allotted for a particular project were utilized for the same.

Allocation of funds

Sources and utilization of funds

Analyse the reasons for diversion of funds and comment

AUDIT OBJECTIVE: 3.2 To ascertain whether the funds relating to Accelerated Power Development Reform Programme (APDRP) / Restructured APDRP were utilised optimally. Sub-Objective
3.2.1 To ascertain whether the total funds sanctioned for APDRP/RAPDRP scheme was spent by the STU.

Audit criteria
Sanction orders.

Audit Evidence & Data Collection

Funds sanctioned versus actual utilization.

Data Analysis
Comments on diversion of funds/ unspent balances to be made, if any.

3.2.2 To ascertain whether the STU suffered loss of revenue due to high Transmission components loss. 3.2.3 To ascertain whether the meters were installed as per plan.

Terms and conditions of scheme.

Actual loss incurred versus loss targeted as per scheme. Number of meter installed vis--vis planned

Computation of differential transmission loss and consequential loss of revenue. Managements failure for metering of feeders.

Plan for metering by the STU.

AUDIT OBJECTIVE: 3.3 To assess whether all claims including energy bills were properly raised and recovered promptly in an effective manner Sub-Objective Audit criteria Audit Evidence & Data Data Analysis Collection
3.3.1 Whether energy bills were raised by STU promptly on distribution companies/ Power purchasers Due dates of raising energy bills Energy bills To analyse whether there were slippages in raising the bills including non-billing. If yes, suitable comments may be made on non-realisation of revenue and loss of interest. Computation of outstanding amount and its age wise analysis including loss of saving of interest on drawal of cash credit/overdraft.

3.3.2 To assess whether there was timely recovery of wheeling charges.

Norms of wheeling charges.

Claim bills for unit sold and actual receipts.

Theme IV Operational Performance

AUDIT OBJECTIVE: 4.1 To assess whether the transmission system performed efficiently to meet the standards of stability and reliability by ensuring timely upgradation, repair and maintenance of the system equipments. Sub-Objective
4.1.1 To ascertain whether the STU sustained any loss due to delay in commissioning of lines and/or sub-stations.

Audit criteria
Terms and conditions of contracts.

Audit Evidence & Data Collection

Data relating to time overrun and loss of revenue.

Data Analysis
Computation of loss of revenue may be made.

4.1.2

To see whether the STU sustained any financial loss on account of delay due to lack of synchronization of commissioning schedule of transmission lines and substations.

Project Report. Monitoring cell identified for proper monitoring and remedial action.

Data relating to time overrun and loss of revenue.

Computation of loss of revenue may be made due to lack of synchronization of commissioning schedule. Whether the entire periodical reports as prescribed by the CEA / Board of the company prepared.

4.1.3

To ascertain whether the STU incurred excess transmission loss than the norms.

Transmission loss norms.

Details of excess transmission loss.

Comparison of actual with norms for transmission loss may be made. Whether STU was able to reduce the Transmission loss conforming to objective of taking up new/upgradation of transmission systems.

4.1.4

Did the Company fix any norms for back Norms fixed by SERC, if any supply in power consumption for its own use? To ascertain whether energy efficient transformers were purchased by the STU as per CEA guidelines? Directions/ Norms fixed by CEA in this regard

4.1.5

Registers of complaints received and Analyse the back supply (auxiliary works attended consumption) requirement of substations and switch yard to ensure whether they were within the prescribed norms. Records relating to purchase of To analyse whether the purchase of transformers transformers were in accordance with the CEA directions/ norms for purchase of energy efficient transformers and comment on any non-compliance. Electricity actually supplied. Computation of restricted load supplied through lines may be made.

4.1.6

To ascertain whether non-availability of transmission lines caused non-supply of power.

Planned supply of electricity

4.1.7

To assess whether upgradation led to any additional or partial benefits. To assess whether actual expenditure was commensurate with the STUs projection for repair and maintenance and norm of regulatory commission. To see whether the STU ensured adherence to the maintenance schedule.

Planned benefits

Original capacity vs upgraded capacity of lines and sub-station and benefit accrued. Details of approval of Regulatory Commission and actual expenditure of R&M. Maintenance required as per manual versus actual maintenance done. Details of failed equipments.

Computation of wasteful expenditure without any additional benefit may be made. Comparison of actual expenditure with norms fixed by SERC may be made.

4.1.8

Norms fixed by SERC/STUs

4.1.9

Maintenance Manual. Standard life as per Electricity Act/ manufacturer. System availability as per SLDC.

Comparison of actual versus scheduled maintenance may be done. Comparison of actual service carried out in respect of equipment with service period as per norm. Critical analysis of system disturbance and restoration cost incurred thereon. Analysis of applications versus approval by SERC/STU. Computation of amount to be reimbursed by DISCOMs vis--vis incurred by STU.

4.1.10 To see whether premature failures of major equipments was due to inadequate maintenance. 4.1.11 To see whether any breakdown/ collapse occurred in the system due to inadequate maintenance. 4.1.12 To ascertain whether the STU ensured open access (long term and short term) to the private parties. 4.1.13 To assess whether cost of maintenance of 33/11 kv system lying in the STU premises was got reimbursed from the DISTCOs. 4.1.14 To assess whether low capacity grid substation caused over loading of sub-station leading to restricted supply of power.

Details of breakdown of the system.

Terms and condition of open access regulations. Maintenance cost allowed by SERC to DISCOMs

Applicant for open access and SERC permission given. Details of Sub-stations where 33/11 KV system exist and maintenance thereof.

Load demand.

Data on existing transformer capacity and up-gradation plan available in O&M cell and SLDC.

Computation of differential demand for power and actual power load of transformers may be made

4.1.15 To assess whether non-evacuation of power from generating stations caused idling of lines and sub-stations created for the same.

Designed load capacity of the sub-stations and lines.

Agreement with upcoming industries and firm commitment made by them. Load position of lines and substations in that area. Expenditure incurred for respective lines and sub-stations in power purchase cell and SLDC.

Computation of loss of interest on blockage of capital due to idling of substations/ lines may be made.

AUDIT OBJECTIVE: 4.2 To ascertain whether the STU was successful in evacuation of power generated. Sub-Objective
4.2.1 To ascertain whether the STU was able to completely evacuate the power generated by the generating unit Demand supply management, cost benefit of backing up or transmitting power for sale. To ascertain whether non-availability of the sufficient transmission system at the generating point led to low utilization of generating station

Audit criteria
Generating capacity and plan for purchase of power from various sources. Generating capacity vis--vis transmission capacity Generating capacity and plan for purchase of power from various sources.

Audit Evidence & Data Collection

Details of generation and agreements for purchase of power. MIS Reports of SLDCs.

Data Analysis
Analyse with actual transmission capacity vis--vis generation and purchase of power. Analysis of back up data.

4.2.2

4.2.3

Details of generation and agreements for purchase of power.

Computation of loss due to non/partial evacuation of power.

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Theme V Grid Management

AUDIT OBJECTIVE: 5.1 To ascertain whether the monitoring of the grid operation by the State Load Dispatch Centre (SLDC) was efficient and effective. Sub-Objective
5.1.1 5.1.2 To ascertain whether billing was made to the parties as per ABT system. To see whether such low/high frequency was well managed to avoid payment of Unscheduled Interchange (UI). To ascertain whether the STU availed benefit of getting UI due to such low/high frequency. To see whether low/high voltage was due to deficiencies/ excess of reactive power.

Audit criteria
ABT Guidelines. State Grid Code/EREB InterState ABT Guidelines. State Grid Code/REB Inter-State ABT Guidelines. State Grid Code and State Regulatory Commission norms for reactive power. Planned installation of Shunt Capacitors. Planned supply of electricity.

Audit Evidence & Data Collection

Billing particulars (fixed/ variable/UI charges). Year-wise summarised details of high or low frequency, State Grid Code norms and a payment particulars of UI. Year-wise summarise details of high or low frequency, State Grid Code norms and payment particulars of UI. Year-wise summarise details of high or low voltage and quantity of reactive energy supplied and consumed. Quantitative details of Shunt Capacitors and reactive charge and planning thereof. Year wise details of system interruption.

Data Analysis
Examination of implementation of ABT System for billing. Reviewing of UI received and paid.

5.1.3 5.1.4

Analysis of frequency variation as per norms. Review of different factors for attracting UI may be made. Computation of reactive energy charge paid or received may be made.

5.1.5

To see whether suitable reactor/ shunt capacitor was installed to avoid payment of reactive charges. To check whether interruption resulted in loss of wheeling of power.

Examination of implementation of short capacitor may be made. Computation of details of the interruption and loss of wheeling of power may be made.

5.1.6

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5.1.7

To ascertain whether load restriction due to non-availability of transmission capacity was quantifiable. To assess whether under charging of high voltage lines with low voltage caused restricted power flow and high transmission losses.

Load demand.

Year-wise quantitative details of load restriction.

Computation of loss of power may be made.

5.1.8

Power carrying capacity of lines.

Data on actual power flow in the line and designed power flow capacity of the lines available in SLDC and O&M cell and actual transmission loss vis--vis norms of transmission loss.

Computation of loss due to nonwheeling of power through designed capacity.

Theme VI Tariff Policy

AUDIT OBJECTIVE: 6.1 To assess the extent to which the STU had been able to determine tariff through State Electricity Regulatory Commission (SERC) to recover Annual Revenue Requirement (ARR). Sub-Objective
6.1.1 To ascertain whether the STU failed in recovering ARR due to its inefficiency in controlling the expenditure on account of undue delays in completing different projects. To assess whether the STU failed in recovering the cost for non-utilising the full amount as approved by SERC due to its inefficiency.

Audit criteria
Regulatory Commission Guidelines and ARR order.

Audit Evidence & Data Collection

Proposed expenditure by the STU and Regulatory Commissions approval.

Data Analysis
Computation of expenditure not allowed in the ARR.

6.1.2

Regulatory Commission Guidelines and ARR order

Approved expenditure versus actual expenditure.

Computation of expenditure not allowed by SERC.

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6.1.3

To assess whether absence of uniform meters at injecting and receiving end resulted in loss of wheeling charges.

STUs projection for installation of uniform meters.

Category of installation of meter at injecting and receiving grid substation and meter readings.

Computation of less power billed due to difference in meter reading at injecting and receiving end.

Theme VII Monitoring Mechanism

AUDIT OBJECTIVE: 7.1 To ascertain whether there was an effective monitoring mechanism by the STU. Sub-Objective
7.1.1 To assess whether the monitoring by the STU was effective.

Audit criteria
MIS system to review whether the transmission of power is as per available generation, laying down norms of the STU. Monitoring norms of five years plans as instructed by the CEA/Board

Audit Evidence & Data Collection

Progress reports, Maintenance work done for five years.

Data Analysis
Existence of an effective monitoring system and internal control system may be analysed. Existence of an effective monitoring system and internal control system may be analysed.

7.1.2

To ascertain whether a long term plan was in existence in the STU and was being monitored.

Periodical monitoring reports

7.1.3 7.1.4

Whether energy audit reports prepared SERC Directives periodically and losses analysed? Was there a corrective follow-up action taken on energy audit findings? SERC guidelines

Energy Audit statements, and other Scrutinize the energy audit reports to related correspondence verify they were prepared timely and losses analysed. Correspondence with substation and Analyse the energy audit report to action taken reports assess the follow up action taken.

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