Audit Assurance and Oversight
The NERC Compliance Operations department is responsible for the development and implementation of a compliance monitoring program to promote the reliability of the bulk power system. To help fulfill its responsibilities, and in accordance with the dictates of FERC, NERC delegated certain responsibilities to qualified Regional Entities to monitor and enforce compliance with NERC Reliability Standards. The Regions, through their respective delegation agreements, are responsible for administering their Regional Entity Compliance Monitoring and Enforcement Program in accordance with the applicable requirements of the NERC Rules of Procedure. Any delegation of these compliance monitoring and enforcement activities to a Regional Entity is subject NERC’s oversight. 
The Regional Entities utilize several methods to carry out their compliance functions, including regularly scheduled compliance audits, spot checks, and self-certifications. Registered entities are subject to audit for compliance with all NERC Reliability Standards applicable to the functions for which it is registered. Registered entities should have a working familiarity with the NERC Rules of Procedure, the Compliance Monitoring and Enforcement Program for their respective Regional Entity, and other regional documents.  Links to each of the Regional Entity websites are located under the “Regional Entity Compliance Programs” portion of the NERC website.   
As outlined in the Rules of Procedure, NERC has responsibility for oversight and monitoring of the Regional Entities, which must be carried out in accordance with the Rules of Procedure and the terms of the Regional Delegation Agreements. NERC seeks to ensure consistency and fairness among the various Regional Entity programs. NERC carries out its oversight and monitoring activities through:
  • Annual reviews of the Regional Entity implementation plans; 
  • Oversight audits on select registered entity audits;
  • Annual assessments of select NERC Reliability Standards for consistency of approach through the  Key Reliability Standard Spot Check (KRSSC) program;
  • Compliance Analysis Reports (CARs); and
  • Compliance Monitoring and Enforcement Program (CMEP) audits of registered entities.