All Reports

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for engineering, design, and construction support services. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned 5-year, $10 million contract.In our opinion, the company's cost proposal was overstated. Specifically, we found: The company's proposed labor markup rates, for recovery of its indirect costs, were overstated compared to recent actual costs.

We audited the Tennessee Valley Authority's (TVA) purchasing card (P-Card) usage to determine if personnel complied with TVA's P-Card policies and procedures. Our audit scope included approximately $79.8 million in transactions occurring from October 1, 2017, through September 30, 2019. Our audit found multiple instances where TVA personnel did not comply with requirements in TVA's P-Card policies and procedures.

In this semiannual period, our audit, evaluation, and investigative activities identified more than $32.8 million in questioned costs, funds put to better use, and recoveries and opportunities for TVA to improve its programs and operations.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2020 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.

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for engineering, design, and construction support services. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned 5-year, $35 million contract.In our opinion, the company's cost proposal was overstated.

Following the 2008 ash spill at Kingston Fossil Plant, TVA’s Office of Inspector General, in conjunction with Marshall Miller & Associates (engineering consultant), performed an inspection that determined there was poor maintenance of coal combustion residual storage facilities, such as not addressing erosion, standing water, and piping issues. Additionally, the inspection found there was no formalized training for personnel who inspected the dikes.

The Office of the Inspector General (OIG) performed procedures that 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, 2020. The WP Measures data provided to the OIG and to which the agreed-upon procedures were applied is the responsibility of TVA management. In summary, procedures applied by the OIG found: • The FY 2020 WP goals for the Enterprise measures were properly approved.

This investigation addressed an allegation that an employee violated federal ethics laws by obtaining outside employment with a TVA contractor while still employed with TVA. The investigation revealed that the employee obtained outside employment only after TVA eliminated his position and he began a 90-severance period during which TVA told him he could pursue employment with any outside company. Furthermore, there was no evidence the employee attempted to influence any official action at TVA during this period.

We audited the Tennessee Valley Authority’s (TVA) travel expenses reimbursed within 50 miles of an official station to determine if they complied with Federal Travel Regulation and TVA policies and procedures.

We audited TVA’s onboarding actions completed for all active IT contractors as of March 26, 2020, including background investigations and cybersecurity awareness training requirements to determine if IT contractors are granted logical access in accordance with TVA policy. TVA Information Technology and TVA Police require contractors have various levels of background investigations completed for logical access to different classifications of information.