MG Middle Office Integration Issues and timetable

To all

Tim has delivered the initial microsoft project plan for the MO integration -
this is available to all via the integration project 'office' - i.e. Richard
and Phil.

I summarise the key themes as :-

summary operational risk assessment across all MG entities and functional
groups ( as defined within the DPR )
defining MO organisational structure and fit with Enron's control model -
particularly logistics and co-ordination
interaction with Fin Ops processes
month end consolidation process
SAP implementation
working capital and revenue forecasting
interaction with RAC re VAR / trading limits ( market and credit )
awaiting notice of trading limits
credit counterparty review and set up within GCP
VAR methodology implementation
interaction with IT re systems development/maintenance
AS 400 development timetable and roll out to NY for WANG replacement
MITS/EOL migration
Use of Enlighten in application architecture
defined IT resource requirement
interaction with Legal re Enron Metals name change and related documentation
issues
MO integration planning for settlements and trade accounting

The focus and objectives relating to the above for this week are as follows :-

review of London processes and define boundaries for segregation of duties
implementation ( Action TPP ) - also discuss extension to NY ( SWilson )
review of Wolff activities in Germany ( Action KR/AC )
continuing review of new recycling yards ( project Cook ) in Germany ( Action
AH/RJ )
review interdependencies between MO/Fin Ops/RAC/Systems integration plans (
Action MJ/RS )
document current assessment of operational risk with particular emphasis on
Wolff and Recycling businesses ( Action MJ with KR/AC/AH/RJ/TPP/SW )
Brainstorm month end accounting close and potential earnings election for
consolidation ( Action TPP/MJ/BA/SWood )

Mike