Had this situation come up yesterday and I'm still wrestling with it. Large manufacturing client in Cleveland, FirstEnergy territory. Found a $47,000 billing error in their favor - meter multiplier was set wrong for 18 months. Client says "just don't mention it in your report, we'll handle it internally." This goes against everything I was taught about CUBA certification. The error needs to be disclosed and corrected, but I also don't want to lose a $200K annual contract. How do you handle these situations where doing the right thing could cost you big?
Client wants me to hide $47K error in their favor - what would you do?
Frank, this is exactly why we have professional standards. You have to disclose it, period. I had a similar situation with TVA a few years back - client owed them $23K and wanted me to bury it. I told them it goes in the report or I walk. They weren't happy but they paid the utility. Your reputation is worth more than any single client. What good is a CUBA certification if you don't follow the ethics?
Terry's right. I've been doing this for 20+ years and seen auditors get blacklisted for this kind of thing. Word gets around fast in this business. Document everything, disclose the error, and let the client decide how to handle it with the utility. If they fire you over doing your job correctly, they weren't the right client anyway.
From Georgia Power's perspective, I can tell you they appreciate auditors who are honest about these things. We've had situations where auditors tried to hide errors and it always comes out eventually. When it does, that auditor never works in our territory again. Do the right thing, Frank.
Had this exact scenario with CL&P two years ago. Client owed $38K on a demand ratchet issue. I disclosed it, they paid it, and actually thanked me later because it would have been worse if the utility found it during their own audit. Sometimes doing the right thing works out better than expected. Your CUBA certification means something - don't compromise it.
Just catching up on this thread. Frank, I hope you did the right thing here. In Kentucky, LG&E has a list of approved auditors and ethics violations will get you removed fast. The short-term money isn't worth the long-term damage to your career. How did this turn out?
Update for everyone - I disclosed the error in my report. Client wasn't happy but they paid PSE&G the back charges. Turns out their CFO actually appreciated the honesty because it showed we were thorough. They kept us on and we've done three more facilities for them since. Sometimes the right thing really is the smart thing too.
Thanks everyone for the advice. I went with disclosure and it worked out. The client kept us and actually referred us to two other companies. My conscience is clear and my business is better for it. This forum really helped me think through the ethics properly.