65-407 C.M.R. ch. 710
SUMMARY: This rule establishes auditing requirements for the accounts of all public utilities.
Each public utility, except as noted below, shall have an annual audit made of its accounts. The audit shall be conducted by a qualified independent certified public accountant in accordance with generally accepted auditing standards. The audit may be conducted for a 12-month period other than a calendar year, provided that the same 12-month period is audited annually.
A. Pursuant to 35-A M.R.S.A. §505 (1) qualified small water utilities (those that are consumer owned with gross annual revenues that do not exceed $250,000) shall not be required to have an annual audit of its accounts except as follows:
1. A qualified small water utility with gross annual revenues of $50,000 or less shall for any year used as a test year for ratemaking purposes cause to be conducted, in accordance with generally accepted auditing standards, an audit of its accounts by an independent certified public accountant licensed to practice in the State;
2. A qualified small water utility with gross annual revenues greater than $50,000:
a. Shall cause to be conducted, in accordance with generally accepted auditing standards, an annual review of its accounts by an independent certified public accountant licensed to practice in the State; and
b. Not less than once every 5 years and for any year used as a test year for ratemaking purposes, shall cause to be conducted, in accordance with generally accepted auditing standards, an audit of its accounts by an independent certified public accountant licensed to practice in the State.
A qualified independent certified public accountant means any person or firm who holds a valid license to practice public accountancy granted by the Maine Board of Accountancy pursuant to 32 M.R.S.A. §12227 et seq.
A copy of the auditor's report, accompanied by the audited financial statements, shall be filed with the Commission not later than the first day of the fourth month following the 12-month period for which the audit was conducted, except that audit reports based on a fiscal year ending December 31 must be filed by the following July 1. Therefore, unless otherwise ordered audit reports must be filed consistent with the following schedule:
January 1 - December 31 July 1 - June 30 October 1 - September 30
July 1 October 1 January 1
The utility shall file with the audited financial statements a cover sheet describing any discrepancies between the audited financial statements and the annual report or reports of the utility covering the same 12-month period as the audit.
Where good cause exists, the Commission may order additional audit requirements as may be appropriate.
For good cause shown, the Commission may waive any of the requirements of this Rule, except those required by statute, provided such waiver will not unduly undermine the purposes of the auditing requirement. The Commission may also subsequently rescind, alter or amend any such waiver for good cause. The Commission delegates to the Directors of Telephone and Water or Electric and Gas Industries the authority to issue, rescind, alter or amend a waiver with respect to any of the requirements of this Rule. This delegation in no way limits the Commission's authority to review the decision of the Directors or to issue, rescind, alter or amend a waiver directly.
The enactment of this Rule or any amendment thereto shall not affect the continuing validity of prior orders or waivers issued by the Commission, unless subsequently rescinded, altered or amended pursuant to this Rule.
STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101, 103, 104, 107, 111, 112, 501, 502, 504 and 505
The amendments in Docket No. 88-157 were approved by the Secretary of State on November 22, 1988 and will be effective on November 27, 1988. The amendments shall apply to the audit of accounts for fiscal years commencing in 1988.
May 4, 1996
March 24, 1999 - converted to MS Word
This rule was approved as to form and legality by the Attorney General on November 15, 2011. It was filed with the Secretary of State on November 16, 2011, and became effective on November 21, 2011 (filing 2011-408)