Auditing and Financial Management:
Examination of Financial Statements of Federal Columbia River Power System
EMD-77-10, Dec 23, 1976
The financial statements of the Federal Columbia River Power System were examined in accordance with generally accepted auditing standards. The financial statements were prepared on a cost-accounting basis which included depreciation. Financial results are not presented on a basis designed to show whether power rates are adequate to repay the Federal investment in the system.
A break occurred in the Teton Dam in 1976, causing extensive damage to the project and from the resulting flood. Congress has enacted legislation to pay the costs of claims of non-Federal entities and individuals, and the system will not be required to pay such claims. No decision has been made regarding the future of the Teton Dam project; until that decision is made, the $13.1 million project investment allocated to power is shown as a deferred charge, and the $40.1 million irrigation investment repayable from power revenues is included in repayable irrigation costs.