Criteria or specific requirement: Procedures should be established to insure a proper recording of accounts payable. Condition: Accounts payable as of the reporting date included duplicate invoices. Effect: Accounts payable and construction in process were overstated by a material amount. Cause: The accounts payable subsidiary was not adequately reviewed. Recommendation: This situation dictates that management establish procedures to ensure an adequate review of the accounts payable subsidiary. Views of responsible officials and planned corrective action: Management agrees with this finding. Management will implement procedures to ensure an adequate review of the accounts payable subsidiary. Management’s response: CFO will review the accounts payable subsidiary each month to ensure no duplicated invoices are recorded. Anticipated completion date: Will take effect immediately. Contact person(s): Michael S. McWaters, Executive Vice President & CEO.