All Reports

As part of our annual audit plan, we audited the tool controls at Sequoyah Nuclear Plant (SQN). Our audit objective was to determine if SQN is in compliance with the Tennessee Valley Authority’s (TVA) Nuclear Power Group Business Practice 226 (BP-226), Tool and Equipment Accountability. In summary, we determined SQN is not in compliance with BP-226.

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for civil projects and coal combustion residual program management work at TVA's steam electric power plants. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned <br> $10 million contract.In our opinion, the company's cost proposal was understated.

The Office of the Inspector General audited TVA’s internal controls in place to prevent, detect, and report unauthorized access and disclosure of human resource (HR) system Personally Identifiable Information (PII). We found TVA has weaknesses in its internal controls to prevent and detect unauthorized access and disclosure of HR system PII. TVA management agreed with our recommendations for improving the internal controls.

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by GE Mobile Water, Inc. (GE) for providing water processing services, chemicals, and other related products and services under Contract No. 75130. Our audit included approximately $40.898 million in costs billed to TVA from January 1, 2014, to <br> April 30, 2018. Our audit objective was to determine if GE billed TVA in accordance with the contract terms.In summary, we determined GE generally billed TVA in accordance with the contract terms.

The Federal Information Security Modernization Act of 2014 (FISMA) requires each agency’s Inspector General (IG) to conduct an annual independent evaluation to determine the effectiveness of the information security program (ISP) and practices of its respective agency. Our objective was to evaluate the Tennessee Valley Authority’s (TVA) ISP and agency practices for ensuring compliance with FISMA and applicable standards, including guidelines issued by Office of Management and Budget (OMB) and National Institute of Standards and Technology.

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the labor and labor markup rates included in a contract TVA has with a contractor. Our examination objective was to determine if the contract's labor and labor markup rates were fairly stated for the five-year, $100 million contract.In our opinion, the contract's labor markup rates were overstated. We estimated TVA could save $1.4 million by negotiating reductions to the labor markup rates to more accurately reflect the contractor's recent historical costs.

We performed an evaluation to determine whether demolition and decontamination activities at Widows Creek Fossil Plant (WCF) (1) adhered to safety principles found in the TVA Decommissioning, Deactivation, Decontamination, and Demolition (D4) Program Guide and (2) complied with selected safety criteria established in Brandenburg’s Health and Safety Plan (HASP) for WCF. We determined TVA and Brandenburg met selected safety requirements established in TVA’s D4 Program Guide and Brandenburg’s HASP for WCF.

The TVA Office of the Inspector General (OIG) meets a legal requirement to report to Congress on the office's results twice a year through its Semiannual Report to Congress (SAR). In this semiannual period, the TVA OIG audit, evaluation and investigative work identified approximately $64 million in funds TVA could put to better use, questioned costs, and recoveries and savings.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2018 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.

The Office of the Inspector General audited TVA’s controls in place to prevent, detect, and respond to ransomware incidents. In summary, we found TVA management generally has appropriate controls in place to prevent, detect, and respond to a ransomware incident. However, for one selected system, we found inappropriate administrative access. To strengthen access controls, TVA currently has an ongoing project to identify, track, and monitor administrative accounts, which is expected to be complete in 2020.