All Reports

The Office of the Inspector General conducted an evaluation of Materials and Transportation Management (M&TM) to identify strengths and risks that could impact M&TM's organizational effectiveness. Our evaluation identified strengths within M&TM related to (1) employee teamwork, (2) customer service, and (3) management's support of employees. However, we identified issues that, if left unresolved, could increase the risk that M&TM will be unable to effectively meet its objective in the future.

The OIG audited the overall effectiveness of the Tennessee Valley Authority's (TVA) patch management process for high-risk, end-user desktops and laptops as they are most vulnerable to spear phishing, a very common tactic used in today's environment to infiltrate computer networks and spread malware.

Preventive maintenance (PM) includes tasks carried out on a predetermined interval to reduce the likelihood of a failure. Due to the importance of PM on the reliable operation of assets and as a result of findings identified related to nuclear and coal PM in previous evaluations, we initiated an evaluation of the TVA's transmission PM. The objective of our evaluation was to determine if transmission PM was performed in accordance with established schedules and, if not, what effects the deviations had.

Preventive maintenance (PM) consists of servicing and data collection activities carried out at predetermined intervals and is intended to reduce the likelihood of equipment failures. Due to the importance of PM to the reliable operation of TVA's generating assets and as a result of findings identified related to nuclear and coal PM in previous evaluations, we initiated an evaluation of TVA's gas plant PM to determine if PM had been performed in accordance with established schedules and, if not, what effect the deviations had.

The Office of the Inspector General conducted a review of Compensation and Benefits (C&B) to identify strengths and risks that could impact C&B's organizational effectiveness. Our evaluation identified strengths within C&B related to (1) organizational alignment, (2) teamwork, (3) direct management support, (4) knowledge and experience, and (5) customer service. However, we also identified an employee engagement risk related to a relationship issue with one manager.

The Office of the Inspector General previously conducted an evaluation of Coal and Gas Services (Evaluation Report 2016-15365 issued August 29, 2016) to identify strengths and risks that could impact Coal and Gas Services' organizational effectiveness. Our final report identified several strengths and risks, along with recommendations for addressing those risks. The objective of this follow-up evaluation was to assess management's actions in response to risks and recommendations included in our initial organizational effectiveness evaluation.

TVA has both fixed and variable costs that it must recover. Since fuel and purchased power cost can fluctuate significantly with changes in weather and shifts in global supply and demand, TVA recovers these variable costs through a monthly fuel cost adjustment (FCA). The TVA Act assigns rate setting duties to the TVA Board of Directors (Board). The rates approved by the Board include the formula used to calculate the monthly FCA, which represents approximately one-third of the wholesale rate.

At the request of the Tennessee Valley Authority (TVA) Supply Chain's former Director of Sourcing, we audited costs billed to TVA by ScottMadden, Inc. (ScottMadden) under Contract Nos. 3526, 8579, and 8689. Under the contracts, ScottMadden provided consulting services that included, but were not limited to, financial management and business management services. Our audit scope included about $19.6 million in costs that ScottMadden billed to TVA from January 1, 2012, through December 31, 2015, under the three separate contracts.

The Tennessee Valley Authority (TVA) Act of 1933 and TVA Standard Programs and Processes 04.0, Management of the TVA Supply Chain Process, require that any contract action in excess of $25,000 be competed unless the contract action on a noncompetitive basis is properly justified and approved. To ensure compliance with these requirements, we scheduled an audit to determine if TVA's non-competed contracts are (1) identified in TVA systems and (2) executed in accordance with TVA policies and procedures.