All Reports

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Slick Rollers, LLC (Slick Rollers) for coal and limestone handling system support materials and/or services at various TVA fossil plants under Contract No. 14457. Our audit objective was to determine if costs were billed in accordance with the terms and conditions of the contract. Our audit scope included about $10.3 million in costs billed to TVA from August 13, 2019, through December 16, 2021.

The Office of the Inspector General (OIG) performed the procedures, which were requested and agreed to by Tennessee Valley Authority (TVA) management solely to assist management in determining the validity of the Winning Performance/Executive Annual Incentive Plan (WP) Measures for fiscal year (FY) ending September 30, 2022. TVA management is responsible for the WP Measures data provided. In summary, procedures applied by the OIG found: • The FY 2022 WP goals for the Enterprise measures were properly approved.

The Office of the Inspector General conducted a review of the Ackerman Combined Cycle Plant (AKC) to identify factors that could impact AKC’s organizational effectiveness. During our evaluation, plant personnel informed us the culture at the plant was generally positive due to strong engagement between team members and with plant management. However, plant personnel informed us of operational concerns regarding (1) the plants grounding process, (2) work management, and (3) a valve that was not operating properly.

The Tennessee Valley Authority’s (TVA) Enterprise Planning organization engages in long-term generation and capacity planning to support TVA’s mission of providing low-cost, reliable electricity. TVA’s capacity plan is designed to ensure resource adequacy while working to minimize cost to customers and develop a long-term strategy for the TVA power system. Long-term generation planning allows for the optimal use of available resources to meet the future energy needs across TVA’s service area, factoring in operating area and system constraints.

The Office of the Inspector General conducted a review of Kingston Fossil Plant (KIF) organization to identify factors that could impact KIF’s organizational effectiveness. During our evaluation, plant personnel informed us that interactions with management and between coworkers were generally positive, although behavioral concerns regarding one individual were identified. In addition, plant personnel expressed concerns regarding (1) condition of assets, (2) staffing challenges, and (3) communication related to the future of KIF.

Due to risks associated with adopting unproven or immature technologies, the Office of the Inspector General conducted an evaluation to assess the Tennessee Valley Authority’s (TVA) methods for evaluating new technologies. We determined TVA has not established consistent methods for evaluating new technologies. Specifically, we found TVA has not (1) adopted a formal method for evaluating technology readiness or (2) managed technology readiness throughout projects.

The Federal Information Security Modernization Act of 2014 (FISMA) requires each agency’s Inspector General (IG) to conduct an annual independent evaluation to determine the effectiveness of the information security program (ISP) and practices of its respective agency. Our audit objective was to determine the effectiveness of Tennessee Valley Authority’s (TVA) ISP and practices as defined by the Fiscal Year (FY) 2022 Core IG Metrics Implementation Analysis and Guidelines (see Appendix B).

The Office of the Inspector General included an audit of the Tennessee Valley Authority’s (TVA) Back to Business Credit Program (Program) in our annual audit plan due to reputational and financial risks associated with the Program. Our audit objective was to determine if adequate controls were in place to ensure Back to Business credits were provided to businesses in compliance with Program guidelines.

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for coal combustion residual program management services. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned 20-year contract.In our opinion, the company's cost proposal was unsupported and overstated. The company informed us that it did not have financial statements or other actual historical cost documentation to support its proposed costs.

The Office of the Inspector General conducted a review of Bull Run Fossil Plant (BRF) organization to identify factors that could impact BRF’s organizational effectiveness. Additionally, the scope of this evaluation included identifying lessons learned for future coal plant closures. During the course of our evaluation, we identified positive interactions between coworkers and with various levels of plant management.