Trans-Union Interstate Pipeline, L.P.
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`May 20, 2019
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`Ms. Kimberly D. Bose, Secretary
`Federal Energy Regulatory Commission
`888 First Street NE
`Washington, DC 20426
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`RE:
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`Trans-Union Interstate Pipeline, L.P.
`FERC Form No. 2 CPA Certification
`Docket No. ZZ19-_____
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`Dear Ms. Bose:
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`Trans-Union Intestate Pipeline, L.P. submits the attached FERC Form No. 2 CPA Certification for
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`calendar year 2018. If you have any questions, please feel free to contact me at (346) 241-3574.
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`Very truly yours,
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`Bryan Escobedo
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`Bryan Escobedo
`FERC Regulatory Analyst
`bescobedo@americanmidstream.com
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`2103 CityWest Blvd. Building #4, Suite 800, Houston, TX 77042 • Office: (346) 241-3400 • Fax: (713) 278-8870
`www.americanmidstream.com
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`Report of Independent Auditors
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`To the Managementof Trans-UnionInterstate Pipeline, L.P.
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`Wehave audited the accompanyingfinancial statements of Trans-Union Interstate Pipeline, L.P., which
`comprise the balance sheets as of December 31, 2018 and 2017, and the related statements of income,of
`accumulated comprehensive income and hedgingactivities, of retained earnings andof cash flows for the
`years then ended, included on pages 110 through 120a and 122.2 through 122.7 of the accompanying
`Federal Energy Regulatory Commission Form 2.
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`Management’s Responsibilityfor the Financial Statements
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`Managementis responsible for the preparation andfair presentation of the financial statementsin
`accordancewith the accounting requirements of the Federal Energy Regulatory Commissionas set forth in
`its applicable Uniform System of Accounts and published accountingreleases, as further described in Note
`2. Managementis also responsible for the design, implementation and maintenanceof internal control
`relevant to the preparation andfair presentationof financial statementsthat are free from material
`misstatement, whether dueto fraud orerror.
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`Auditors’ Responsibility
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`Ourresponsibility is to express an opinion on the financial statements based on our audits. We conducted
`our audits in accordance with auditing standards generally accepted in the United States of America.
`Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
`the financial statements are free from material misstatement.
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`An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in
`the financial statements. The procedures selected depend on our judgment, including the assessmentof
`the risks of material misstatementof the financial statements, whether due to fraud or error. In making
`those risk assessments, we considerinternal control relevant to the Company's preparation and fair
`presentation of the financial statements in order to design audit proceduresthat are appropriate in the
`circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Company's
`internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
`appropriateness of accounting policies used and the reasonablenessofsignificant accounting estimates
`made by management,as well as evaluating the overall presentation ofthe financial statements. We
`believe that the audit evidence we have obtainedis sufficient and appropriate to providea basis for our
`qualified audit opinion.
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`Basisfor Qualified Opinion
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`As discussed in Note2, in conjunction with preparing the FERC Form2filing for 2017, it was determined
`that the Companyhaderrorsrelated to an understatementofutility plant accumulated depreciation by
`$18,111,876 and an understatementof deferred incometax liabilities by $8,210,516 in its prior period
`financial statements. These cumulative errors resulted in an overstatement of retained earnings by
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`$26,322,392 at December31, 2016. These errors were corrected in the accompanying 2017 financial
`statements through an adjustmentof $26,322,392 to retained earnings (FERC account no. 439 impacting
`statement of retained earningsline 5). By recording this correction in 2017, the 2017 financial statements
`are materially misstated.
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`Qualified Opinion
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`In our opinion,exceptfor the effects on the 2017 financial statements of the matters described in the Basis
`for Qualified Opinionsection, the financial statementsreferred to above present fairly, in all material
`respects,the financial position of Trans-UnionInterstate Pipeline, L.P. as of December 31, 2018 and 2017,
`and the results of its operations andits cash flows for the year then ended in accordancewith the
`accounting requirementsof the Federal Energy Regulatory Commissionasset forth inits applicable
`Uniform System of Accounts and published accountingreleases, as further described in Note 2.
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`Basis ofAccounting
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`As described in Note 2 to the financial statements, the financial statements are prepared by Trans-Union
`Interstate Pipeline, L. P. on the basis of the accounting requirements of the Federal Energy Regulatory
`Commissionas set forth in its applicable Uniform System of Accounts and published accounting releases,
`whichis a basis of accounting other than accountingprinciples generally accepted in the United States of
`America, to meetthe requirements of the Federal Energy Regulatory Commission. Our opinion is not
`modified with respect to this matter.
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`Restriction of Use
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`This reportis intendedsolely for the information and use of Managementof Trans-UnionInterstate
`Pipeline, L. P. and for filing with the Federal Energy Regulatory Commission andis not intended to be and
`should not be used by anyone otherthan these specified parties or for any other purpose.
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`JucanseXiharattaypiosLLP
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`May18, 2019
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