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Audit Objective

Determine whether District officials adequately plan and monitor the District’s finances to ensure fiscal stability.

Key Findings

• The Indian Point Nuclear Power Plant (Indian Point) is expected to shut down beginning in 2020 with a potential revenue loss of over 30 percent to the District within five years. District officials have updated their multiyear financial plan but their projections for operating surpluses may be unreasonable.
• Cost saving measures have been implemented and the Board engaged the services of a third-party consultant to prepare a report on the effects of the revenue loss and measures to take. According to District officials, the Board has decided not to take action until factual, reliable information is obtained. Due to this, no additional cost savings measures have been taken.

Key Recommendations

• Update the multiyear financial plan to consider past trends.
• Consider more immediate cost saving measures to ensure fiscal stability.

District officials generally agreed with our recommendations and indicated they planned to initiate corrective action.