All Reports

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 <br> (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)

The Office of the Inspector General conducted a review of the Johnsonville Combustion Turbine (JCT) organization to identify factors that could impact JCT’s organizational effectiveness. During the course of our evaluation, we identified behaviors that had a positive impact on JCT. These included leadership actions and positive relationships with team members. However, we also identified minimal risks to operations that, if unaddressed, could hinder JCT’s effectiveness. These were related to resource needs, such as specific training and budgetary needs for plant maintenance.

A TVA manager was accused of improperly providing employees with gifts. While no federal ethics standards were implicated, it was determined TVA Standard Programs and Processes 11.418, Employee Recognition and Acknowledgment (TVA SPP-11.418), was not followed.

We audited $212.4 million of costs billed to the Tennessee Valley Authority (TVA) by G&#183;UB&#183;MK Constructors (GUBMK) under Contract No. 11514 to determine if costs billed to TVA were in compliance with contract's terms. We determined the costs billed by GUBMK generally complied with the contract except for $22,545. (Summary Only)

The Office of the Inspector General conducted a review of the Commercial Energy Solutions Pricing, Structuring, Analysis/Contracts (P&C) organization to identify factors that could impact P&Cs organizational effectiveness. During the course of our evaluation, we identified behaviors that had a positive impact on P&C. These included positive interactions with management and team members. However, we also identified behavioral risks in two groups related to accountability and reporting concerns or offering a differing opinion with management.

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