All Reports

The Office of the Inspector General determined that the Tennessee Valley Authority's (TVA) implementation of a grid access charge was revenue neutral because it resulted in an immaterial change in revenue to TVA. We determined TVA collected about $2 million less in revenue from the local power companies that implemented the grid access charge in fiscal year 2019.

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Morsey Constructors, LLC (Morsey) for general construction and modification services performed under Contract No. 9275. Our audit included approximately $8.3 million in costs billed to TVA during calendar years 2014 through 2018.

The Office of the Inspector General conducted a review of the Financial Operations and Performance (FO&P) organization to identify factors that could impact FO&P’s organizational effectiveness. Our report identified behaviors that positively affected FO&P. These included leadership actions and other drivers of engagement, such as positive relationships with team members and the use of an employee-driven recognition program. We also identified risks to operations that, although minimal, if left unaddressed, could hinder FO&P’s effectiveness.

This investigation addressed an allegation that a contract employee and his employer submitted mileage reimbursement expenses in the amount of $23,431.82 that were not allowed under their contract with the Tennessee Valley Authority (TVA). These travel expenses were submitted for the employee’s travel to and from TVA’s Watts Bar Nuclear Site between February 2017 and April 2019.

This investigation addressed an allegation that a contract employee and his employer submitted mileage reimbursement expenses in the amount of $34,173.15 that were not allowed under their contract with the Tennessee Valley Authority (TVA). These travel expenses were submitted for the employee’s travel to and from TVA’s Sequoyah Nuclear Site between August 2016 and June 2019.

In this semiannual period, our audit, evaluation, and investigative activities identified more than $2 million in questioned costs, funds to be put to better use, recoveries, fees, waste/other monetary loss, and shared opportunities for TVA to improve its programs and operations.

The Office of the Inspector General conducted a review of Hydro Generation (Hydro) to identify operational and cultural strengths and risks that could impact the organizational effectiveness of Hydro as a whole. Our review was based on the results of our prior evaluations in the five Hydro areas and additional interviews and data analyses conducted in this evaluation. Our report identified strengths within Hydro related to (1) organizational alignment, (2) positive interactions within and outside of Hydro, (3) effective leadership, and (4) positive ethical culture.

This investigation was initiated after concerns were reported to the Office of the Inspector General that the duties of a managed-task contract employee working at TVA placed him in a position to direct TVA contracts to his company. While it was determined that, as a contractor, criminal conflict of interest statutes did not apply to this contract employee, the OIG made several recommendations to address this situation.

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by National Emergency Assistance Inc., (NEA) under Contract <br> No. 11992. NEA provided assistance to state and local governments under the authority of the Disaster Relief and Emergency Assistance Act. Our audit included approximately <br> $27.5 million in costs paid by TVA from October 25, 2016, to September 24, 2019. Our audit objective was to determine if the costs were billed in accordance with the terms and conditions of the contract.

The Office of the Inspector General audited TVA’s Insider Threat Program (ITP) to determine if TVA had a program established to address insider threats that was consistent with best practices. We found several areas where TVA’s ITP was consistent with best practices. Additionally, we found TVA had designated a senior official charged with overseeing classified information sharing and safeguarding efforts of the agency. Although TVA had not yet implemented its planned ITP, we determined TVA’s program will be at a proactive maturity level upon its planned implementation.