All Reports

The Office of the Inspector General conducted a review of the John Sevier Combined Cycle (JSCC) Plant to identify factors that could impact JSCC’s organizational effectiveness. During the course of our evaluation, we identified behaviors that had a positive impact on JSCC. These included positive relationships between team members and management; however, we also identified minimal behavioral risks associated with communication and accountability. In addition, we identified minimal risks to operations that, if unaddressed, could hinder JSCC’s effectiveness.

Due to the importance of switching and clearances being performed safely to avoid injuries and to minimize the possibility of unscheduled outages or equipment damage, we performed an evaluation to determine if switching and clearances, required training, and audits were performed in compliance with Transmission and Power Supply’s switching and clearance procedures. We determined the selected procedural requirements for requesting and tracking of switching and clearances were generally performed in accordance with procedures.

The Office of the Inspector General conducted a review of the Commercial Energy Solutions Fuels and Hedging (F&H) organization to identify factors that could impact F&H’s organizational effectiveness. During the course of our evaluation, we identified behaviors that had a positive impact on F&H. These included relationships with team members and most management. However, we also identified a behavioral risk related to relationships with a manager in one group. In addition, we identified risks to operations that could hinder F&H’s effectiveness.

Due to concerns identified during Evaluation 2020-15743, Sequoyah Nuclear Plant Radiation Protection’s Organizational Effectiveness (report issued December 10, 2020), we performed an evaluation of TVA Nuclear’s handling of potentially contaminated liquids at its nuclear sites. The scope of our evaluation was limited to TVA Nuclear’s process for releasing liquids from Radiologically Controlled Areas (RCA) for unrestricted use. We determined potentially contaminated liquids were released from RCAs at each nuclear site.

In this semiannual period, our audit, evaluation, and investigative activities identified more than $7.1 million in questioned costs, funds put to better use, and recoveries and opportunities for TVA to improve its programs and operations.

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Stantec Consulting Services, Inc. (Stantec) to provide coal combustion residual engineering services under Contract No. 13051. The contract provided for TVA to compensate Stantec for work on either a cost reimbursable, time and material (T&M), unit rate, or fixed price basis. Our audit objectives were to determine if (1) costs were billed in accordance with the terms and conditions of the contract and
(2) tasks were issued using the most cost efficient pricing methodology.

The investigation substantiated that a TVA employee negotiated employment with a contractor for whom he approved invoices; however, he did so with the knowledge and apparent support of TVA management. After becoming an employee of the contractor, he continued to approve invoices for the contractor (now his employer) as he had done while employed by TVA.

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Siemens Energy, Inc. (Siemens) under Contract No. 10092. This contract was a long-term service agreement for the Ackerman Combined Cycle Plant located in Ackerman, Mississippi. Under the contract, Siemens was to provide program management services; scheduled outage services; and supply any program parts, nonprogram parts, miscellaneous hardware, or services as requested by TVA.

Contractor approved temporary living allowance (TLA) for contract employee based on a claim of permanent residence when the residence claimed was actually owned by the contract employee’s father and rented at a low monthly rate that was paid sporadically. The contract between TVA and the contractor explicitly forbids the approval of TLA when the arrangement for the residence claimed is not part of an “arm’s length” transaction. The contractor was aware of its employee’s rental arrangement with his father and, yet, approved the payment of TLA which was subsequently billed to TVA.

We audited $137.7 million of costs billed to the Tennessee Valley Authority by Framatome Inc. under Contract No. 8786 to determine if costs billed to TVA were in compliance with contract's terms. We determined the costs billed by Framatome Inc. generally complied with the contract except for $80,862.(Summary Only)