All Reports

As part of our annual audit plan, we performed an audit of physical access to Tennessee Valley Authority’s (TVA) substations. Our audit objective was to determine if substations had appropriate physical access controls. Our scope included substations that contain devices with TVA network connectivity.We found substations had overall appropriate physical access controls. However, we identified control weaknesses in TVA’s annual access review process and management of one of the physical access controls.

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Baker's Construction Services, Inc. (BCS) for field labor support services provided for TVA's civil construction organization under Contract No. 14743. Our audit objective was to determine if costs were billed in compliance with the contract's terms.

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Fisher Contracting Company (Fisher) under Contract No. 13155 for coal combustion residual construction services. Our audit objectives were to determine if (1) costs were billed in accordance with the terms of the contract and (2) tasks were issued using the most cost efficient pricing methodology. Our audit scope included about $47.9 million in costs billed to TVA from February 12, 2018, through February 28, 2022.

The Office of the Inspector General included an audit of the Tennessee Valley Authority’s (TVA) employee relocation allowances on our annual audit plan due to the potential reputational and financial risks associated with relocations that do not comply with TVA policies and procedures. Our audit objective was to determine if relocation allowances are paid in accordance with TVA Standard Programs and Processes (SPP) 11.208, Employee Relocation Allowances.

The Office of the Inspector General included an audit of the Tennessee Valley Authority’s (TVA) consulting contracts in our annual audit plan due to significant spend* in this area as well as the conflict of interest risks associated with this type of contract. Our audit objective was to determine if proper controls are in place to identify consulting contracts at TVA and limit the risks of conflicts of interest. We found TVA’s controls for identifying consulting contracts and limiting the risks of conflicts of interest were not operating effectively.

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Geosyntec Consultants, Inc. (Geosyntec) to provide coal combustion residual and dam safety engineering services under Contract No. 13125. Our audit objectives were to determine if (1) costs were billed in accordance with the terms of the contract and (2) tasks were issued using the most cost-efficient pricing methodology.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2022 financial statements performed by Ernst and Young LLP (EY) to assure their work complied with Government Auditing Standards. Our review of EY's work disclosed no instance in which the firm did not comply in all material respects with Government Auditing Standards.

We are pleased to present our report for the period April 1, 2022, to September 30, 2022. The information in this report shows firsthand the dedication and professionalism of the TVA OIG team and our understanding of the importance of providing independent oversight of TVA.

The Tennessee Valley Authority’s (TVA) Economic Development (ED) organization is primarily responsible for helping to maintain TVA’s industrial and manufacturing base, locate desirable companies to the Valley, and improve the competitiveness of Valley communities. TVA ED offers incentive programs and services to new and existing customers in the valley.

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.