Engagement Memo—Capital Planning Process (Project Code 008-2022)

We are initiating an audit of the company’s capital planning process. The recent passage of the Infrastructure Investment and Jobs Act and pending influx of federal funds for capital projects highlights the importance of having a well-developed capital planning process. Our objective will be to assess the extent to which the company’s capital planning process supports its strategic financial and operational goals. During the audit, we plan to interview company officials involved in the development and implementation of the annual and other capital planning processes, as well as review documents and data related to these activities. We will work to minimize disruptions to the company by coordinating meetings with staff in advance.

We will perform our work in accordance with generally accepted government auditing standards. Our interactions with the company will be consistent with P/I 2.1.4, which sets forth the relationship between our office and the company. In particular, section 7.0 of the policy discusses coordination between company officials and our Office of Audits. We request that your office arrange an entrance conference for us with the appropriate company officials at the earliest possible date. We will keep you advised of the status of our work and any material changes in our objective, should they occur.