FW: Update: Recommendations from 9/18 Meeting on Transaction

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X-From: Colwell, Wes </O=ENRON/OU=NA/CN=RECIPIENTS/CN=WCOLWEL<
X-To: Kitchen, Louise </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lkitchen<
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Did you know this? We will look into it.

Wes

-----Original Message-----
From: Hodges, Georganne
Sent: Tuesday, September 25, 2001 10:45 AM
To: Colwell, Wes
Subject: FW: Update: Recommendations from 9/18 Meeting on Transaction Expense Controls / Delegations of Authority

See below
-----Original Message-----
From: Vos, Theresa
Sent: Tuesday, September 25, 2001 9:06 AM
To: Pierce, Jody; Hodges, Georganne
Subject: RE: Update: Recommendations from 9/18 Meeting on Transaction Expense Controls / Delegations of Authority

Are DASH's required before any $$ are spent, or is there a threshhold? I don't think that Jacoby gets DASH's for any of his projects and he has spent over $1MM on 4 of his Florida sites.

theresa

-----Original Message-----
From: Pierce, Jody
Sent: Monday, September 24, 2001 9:27 PM
To: Hodges, Georganne
Cc: Vos, Theresa
Subject: RE: Update: Recommendations from 9/18 Meeting on Transaction Expense Controls / Delegations of Authority

Could be related to the amount spent on the Ft Pierce project that we looked at last week.

Procedures look ok. I thought the developers were already responsible for dollars spent on projects.
I guess the point about Accounting setting up approved budget limits kind of addresses our responsibility when the spent amounts approach the limit. But Theresa & I have had that discussion before. What do we do and who do we notify if we see the total spend approaching or passing the Dashed amount. It shows up on the Cost summarywe give the developer, but should we bring it to the attention of someone other than the developer?

Based on the discussions Thursday & Friday about accounting becoming more involved on the front end, I'd like to think we could be involved in discussions before the final Dash is circulated by underwriting.

-----Original Message-----
From: Hodges, Georganne
Sent: Mon 9/24/2001 8:48 PM
To: Vargas, Hope; Pierce, Jody
Cc:
Subject: FW: Update: Recommendations from 9/18 Meeting on Transaction Expense Controls / Delegations of Authority

Any ideas on what prompted this or comments on the procedures???

-----Original Message-----
From: Colwell, Wes
Sent: Mon 9/24/2001 3:25 PM
To: Hodges, Georganne
Cc:
Subject: FW: Update: Recommendations from 9/18 Meeting on Transaction Expense Controls / Delegations of Authority

We need to put this into action from a tracking point of view. This is a result of an over spent dash. Any comment?

-----Original Message-----
From: Schneider, Chip
Sent: Wednesday, September 19, 2001 9:24 PM
To: Kitchen, Louise; Colwell, Wes; Deffner, Joseph
Cc: Buy, Rick; Gorte, David; Carson, Rick L.
Subject: Update: Recommendations from 9/18 Meeting on Transaction Expense Controls / Delegations of Authority

Below please find a summary of recommendations from a meeting held Tuesday between Chip Schneider, Joe Deffner and Wes Colwell. It is contemplated that these or similar recommendations will be implemented to control capital and other expenditures related to transaction development within the Americas:

Regional Managers within the Americas (East, West, Canada, Mexico, South America) shall be generally accountable for capital expenditures and other expenses associated with transaction development in their respective regions.
The Regional Manager shall designate one Transaction Leader (Director level or higher) for each individual transaction under consideration and shall be accountable to the Regional Manager. The Transaction Leader or Regional Manager shall be the only parties authorized to obligate Enron or its affiliates under any contract or to transfer money.
Legal shall provide copies of all draft documents to Accounting, Global Finance and Underwriting.
The Deal Leader shall be responsible for drafting initial DASH, seeking buy-in from management and establishing a time-table for expenditure approval.
The initial draft of the DASH and economic model shall be provided to Underwriting at least ten business days prior to any movement of money (more time may be necessary if financing or ENE BoD approval is required).
Legal shall provide a final Legal Risk Memorandum to Underwriting prior to circulation of DASH.
Global Finance shall provide a final FASH to Underwriting prior to circulation of DASH.
Underwriting shall be responsible for DASH circulation.
Underwriting shall promptly provide Accounting with fully executed DASH to set approved budget limits.
Accounting shall keep records of all expenditures, maintain responsibility for approved budget compliance and sign-off on all contracts and money transfers prior to execution.

Let me know what further thoughts you have.

Regards,

Chip Schneider
713-853-1789
ECN2864