All Reports

As part of our annual audit plan, we performed an audit of Tennessee Valley Authority’s (TVA) non-power dam control system cybersecurity. Our objective was to determine if the cybersecurity controls of TVA’s non-power dam control system were operating effectively.In summary, we found (1) no clear ownership of the non-power dam control system, (2) vulnerable versions of operating systems and control system software, (3) inappropriate logical and physical access, and (4) internal information technology controls were not operating effectively or had not been designed and implemented.

The Office of the Inspector General conducted a review of the Browns Ferry Nuclear Plant Radiation Protection (BFN RP) organization to identify factors that could impact BFN RP’s organizational effectiveness. During the course of our evaluation, we identified behavioral and operational factors that are negatively impacting BFN RP’s effectiveness and its ability to meet its responsibilities and support Nuclear’s vision and core principles.

In this semiannual period, our audit, evaluation, and investigative activities identified more than $9.3 million in questioned costs, funds put to better use, recoveries, waste, and opportunities for TVA to improve its programs and operations.

Our office, through a partnership with the Pandemic Response Accountability Committee, obtained data from the United States Small Business Administration (SBA) related to their Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans. We scheduled this audit after identifying potential matches between the SBA data and TVA employees. Our audit objective was to determine if TVA’s policies and procedures are effective in assuring outside employment of TVA employees is properly approved.

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for transmission construction services. Our examination objective was to determine if the cost proposal was fairly stated for a planned 5-year, $50 million contract.In our opinion, the company's cost proposal was overstated. Specifically, we found the proposed general liability insurance markup rate was overstated compared to recent actual costs.

The owner of Corrosion Monitoring Services (CMS), a TVA contractor, pleaded guilty to one felony count of Misprision of a Felony, one felony count of Obstruction of Justice and one felony count of Witness Tampering. The charges were related to an allegation that CMS purposefully damaged metal tubes used in an air heating and exchange system at TVA’s former Paradise Fossil Plant in order to repair those tubes under the CMS contract with TVA.

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Voith Hydro, Inc. (Voith) under Contract No. 9000, for hydro modernization, unit rehabilitation, and functional support services in support of TVA's hydro facilities, including Raccoon Mountain Pumped Storage Plant. The contract provided for TVA to compensate Voith for these services on either a fixed price, time and material, and/or target price estimate basis.

The Office of the Inspector General conducted a review of the Allen Integrated Site (Allen) to identify factors that could impact Allen’s organizational effectiveness. During the course of our evaluation, we identified positive behavioral factors, including relationships with team members and business units outside Allen; however, we also identified behavioral concerns with two managers. In addition, we identified operational factors needing improvement related to (1) perceptions of ineffective work management, (2) fire alarm system repairs, and (3) site security and access concerns.

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 (CCR) 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 proposed markup rates for recovery of indirect costs were fairly stated. However, the company's proposed costs for a $248.2 million CCR project were overstated by a net $1.6 million due to inaccuracies in craft pay and benefits.

The Office of the Inspector General conducted an evaluation to determine if the Tennessee Valley Authority (TVA) was effectively managing acquisitions and disposals of real property. We determined TVA effectively managed the real property acquisitions and disposals for the sample of transactions we reviewed.