RFI 6.5.26 SEPA_AUDIT.pdf

United States Department of Energy Southeastern Power Administration

1166 Athens Tech Road Elberton, Georgia 30635

June 5, 2026

1. INTRODUCTION

Southeastern Power Administration (SEPA) is seeking information from qualified vendors with proven expertise in providing financial audit services to perform the financial audit of the Southeastern Federal Power Program (SeFPP) combined financial statements for fiscal year (FY) 2026. SeFPP includes applicable portions of two U.S. Departments: the Department of Energy (Department), Southeastern Power Administration (Southeastern); and the Department of the U.S. Army Corps of Engineers (Corps). Information gathered in response to this request, will be used in assessing and aiding in the selection process for our final audit vendor selection solicitation.

THIS IS A REQUEST FOR IFORMATION(RFI) NOTICE ONLY. THIS IS NOT A

REQUEST FOR PROPSALS (RFP). NO SOLICITATION IS AVALABLE AT THIS

TIME.

2. PERFORMANCE OBJECTIVE

A. The financial statements that require audit are the consolidated results of operations of Southeastern and expenses and revenues related to power at the Corps. These statements cover those income/expense and balance sheet accounts reflecting elements subject to repayment. Southeastern and the Corps maintain separate accounting systems and are separately managed and financed. Accounting for Southeastern's activities are centralized in Elberton, Georgia. The Corps’ centralized accounting activities are in: Atlanta, Georgia; Savannah, Georgia; Mobile, Alabama; Nashville, Tennessee; and Wilmington, North Carolina.

B. The Contractor shall conduct an audit of and issue an opinion on management's representation of the SeFPP's combined financial statements and schedules in accordance with all applicable requirements, such as: (1) Generally Accepted Auditing Standard (GAAS) issued by the American Institute of Certified Public Accountants (AICPA); (2) the standards applicable to financial audits contained in generally accepted Government Auditing Standards (GAGAS) issued by the Comptroller General of the United States; (3) the current Office of Management and Budget (OMB) Bulletin on Audit Requirements for Federal Financial Statements (as amended); (4) the GAO's Federal Information System Controls Audit Manual; (5) the Office of Inspector General (DOE-OIG) Audit Manual;

and, (6) Federal Energy Regulatory Commission (FERC) accounting requirements. The Contractor should also perform a review of the management overview, performance measures, and other supplemental data in the SeFPP Annual Report package (including minimal review of supporting documentation) for consistency with the audited financial statements and notes per OMB audit requirements and any updates.

C. The financial audits for the Fiscal Year (FY26) ending September 30, 2026, at a minimum, shall include SeFPP principle statements, disclosures, and supporting schedules as follows:

• Balance Sheet;

• Statements of Revenues and Expenses;

• Statement of Changes in Capitalization; and,

• Statement of Cash Flow.

D. The Contractor will also be required to issue reports (management letters) on internal controls over financial reporting and compliance with laws and regulations.

E. Audit services are for a comparative set of financial statements for the current and prior year.

F. In compliance with DOE requirements, the contractor shall provide to the Office of

Inspector General (OIG) and the Contracting Officer’s Representative (COR), a special purpose opinion on Southeastern’s federal basis financial statements, accompanied by a statement of independence. This special purpose opinion, which will be used in the preparation of DOE’s consolidated financial statements, will be based on accounting standards issued by the Federal Accounting Standards Advisory Board (FASAB) OMB Circular A-136. The basis of this presentation differs from SeFPP financial statements, which are prepared in accordance with Generally Accepted Accounting Principles.

G. In conjunction with the special purpose opinion, the Contractor shall verify that the compilation of Southeastern’s Federal Agencies Centralized Trial Balance System (FACTS) submission via the Standard General Ledger (SGL) chart of accounts as maintained by the Department of Treasury (Treasury) agrees with the Department portion of the financial statements under audit and explains any exceptions. Subsequent to the FY-end, this portion of Southeastern's data is electronically transferred by the Department to the Treasury's SGL accounts via the Treasury Inter-Agency System for consolidation into the financial statements of the U.S. Government. The Contractor will be required to trace the statement line items back to the reporting entity's Trial Balance General Ledger accounts.

H. The Contractor shall also assess Southeastern's compliance with the Federal Financial Management Improvement Act of 1996 (FFMIA) in support of the special purpose opinion. The FFMIA requires each agency to implement and maintain financial management systems that "comply substantially with Federal financial management systems requirements, applicable Federal accounting standards, and the United States Government SGL at the transaction level."

I. Southeastern’s financial data becomes part of Department’s consolidated financial statements. As such, the principal auditor of the Department’s consolidated financial statements shall refer to the Contractor’s special purpose opinion in its final report.

J. The Contractor will review Southeastern’s assessment of OMB A-123 Appendix A, which is intended to provide the Department with assurance that Southeastern’s internal controls over financial reporting are appropriately designed and operating effectively.

The Contractor will also test Southeastern’s internal control work under OMB A-123 for the purpose of assessing internal controls in connection with the audit of the financial statements.

3. WORK TASK

To conduct the audit, the Contractor is generally required to perform the following work tasks:

1. Handle administrative and coordination matters;

2. Sufficiently plan the audit;

3. Develop audit programs;

4. Follow up on past audit findings;

5. Evaluate internal controls over financial reporting;

6. Evaluate compliance with laws and regulations;

7. Conduct substantive testwork and statement verification; and,

8. Prepare an audit report, or separate reports, on the financial statements of Southeastern, internal control, and compliance plus a management letter.

More in-depth description for accomplishing the above work tasks will be given in the RFP at the time that goes out

4. ORGANIZATION & BACKGROUND

A. The Southeastern Power Administration was created in 1950 by the Secretary of the

Interior to perform activities assigned to the Secretary by Section 5 of the Flood Control Act of 1944. In 1977, Southeastern was transferred to the newly-created United States Department of Energy. Southeastern, headquartered in Elberton, Georgia, is responsible for marketing electric power and energy generated at reservoirs operated by the Corps.

This power is marketed in ten states: Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Tennessee, and Kentucky. By special delegations, power is also marketed in Illinois.

B. The Southeastern Federal Power Program consists of all activities associated with the production, transmission, and disposition of all Federal power marketed under Section 5 of the Flood Control Act of 1944. The program includes certain accounts of two separate Federal Government Agencies – Southeastern and the Corps. Southeastern and the Corps are separately managed and financed and each maintains its own accounting records.

Southeastern purchases, transmits, and markets power within four separate power systems: Georgia-Alabama-South Carolina; Jim Woodruff; Cumberland Basin; and

Kerr-Philpott. As of September 30, 2025, the four power systems include twenty-two hydroelectric generating projects owned and operated by the Corps. The projects serve multiple purposes, including power, recreation, navigation, and flood control. However, these combined financial statements include only those expenses and net assets that are expected to be recovered through sales of hydroelectric power and other related income.

The objectives of Southeastern are to market electric power and energy generated by the Federal reservoirs and to encourage widespread use of this power at the lowest possible cost to customers. Power rate preference, regarding power sales, is granted to public bodies and cooperatives given that Southeastern does not own transmission facilities and must contract with other facilities to provide transmission of this Federal power.

Southeastern’s responsibilities include the negotiation, preparation, execution, and administration of contracts for the sale of electric power; preparation of repayment studies to set wholesale rates; and activities pertaining to the operation of power facilities to ensure and maintain continuity of electric service to customers.

Costs of multi-purpose Corps projects are allocated to individual purposes through a cost allocation process. The portion of total project costs allocated to power is included in the accompanying combined balance sheet as utility plant and Federal investment. An amount covering Corps employees’ salaries, pensions, and other benefits allocated to power is included in operations and maintenance expenses.

5. SOUTHEASTERN’S SUMMARY FINANCIAL DATA

Summary Financial Data is sent to the Office of Financial Control and Reporting of the Controller's Office at Germantown, MD, where it is entered into the Department’s Standard Accounting and Reporting System (STARS) for consolidation and external reporting to Treasury for other Government-wide reporting.

6. POINTS OF CONTACT

-Juvonna Mattox ; Contracting Officer ; PRIMARY 706.213.3808/Office Juvonna.mattox@sepa.doe.gov

-Tabitha Rambert ; Contracting Officer ; SECONDARY 706.213.3414/Office Tabitha.rambert@sepa.doe.gov

-Charcey Gaines ; Contracting Officer Representative 706.213.3835 Charcey.gaines@sepa.doe.gov

Location: 1166 Athens Tech Road Elberton, GA 30635

7. SUBMISSION DETAILS

All Interested parties, please submit your response to this RFI via email to the Contracting Officers listed in section 7 (Juvonna Mattox & Tabitha Rambert), no later than 12PM Eastern mailto:Juvonna.mattox@sepa.doe.gov mailto:Tabitha.rambert@sepa.doe.gov mailto:Charcey.gaines@sepa.doe.gov

Time on June 22nd . When submitting your response, please inlude a brief description, email subject line: RESPONSE TO RFI, and all relevant contact information. we will contact you in order to setup a time for a conference. Physical (paper) copies of RFI responses are optional.

Physical copies must be delivered to the address identified for the RFI contacts in section 7 before 12:00PM Eastern Time on June 22nd.

8. SUMMARY

THIS IS A REQUEST FOR INFORMATION (RFI) ONLY to identify sources that can provide financial audit services to perform the financial audit of the Southeastern Federal Power Program (SeFPP) combined financial statements for fiscal year (FY) 2026. SeFPP includes applicable portions of two U.S. Departments: the Department of Energy (Department), Southeastern Power Administration (Southeastern); and the Department of the U.S. Army Corps of Engineers (Corps). The information provided in the RFI is subject to change and is not binding on the Government. Southeastern Power Administration has not made a commitment to procure any of the items discussed, and release of this RFI should not be construed as such a commitment or as authorization to incur cost for which reimbursement would be required or sought. All submissions become Government property and will not be returned.

We look forward to receiving your response and appreciate your consideration of this request.

Should you have any questions or require further clarifications, please do not hesitate to contact us.

Thank you for your time and attention.