All Reports

In completing project number 2009-12883, Survey of TVA's Process for Determining Condition of Assets, with a report dated September 20, 2012, the OIG learned that asset condition assessments performed by the Nuclear Power Group (NPG) had determined some generation assets were in poor condition. As a follow up to our prior work, we performed a review to determine whether TVA was taking action to address NPG systems, components, and programs with poor ratings. Under NPG's health report process, actions were required when ratings were designated red or yellow.

The Non-Nuclear Employee Concerns Program (ECP) is important to the Tennessee Valley Authority's current culture and environment. The OIG conducted a review to determine whether the program was addressing employee concerns in a timely and effective manner.We found improvements in the Non-Nuclear ECP have been made in addressing concerns in a timely manner, but the effectiveness of the program could be improved.

The OIG audited costs billed to the Tennessee Valley Authority (TVA) by AMEC Environment and Infrastructure, Inc., for a broad range of geotechnical services to support engineering design for structures, earthwork, and environmental projects under Contract No. 21705. Our audit included $5.33 million in costs billed between June 1, 2009, and October 23, 2012. Our objective was to determine if the costs billed to TVA were in compliance with the contract terms and conditions.In summary, we determined AMEC overbilled TVA an estimated $100,441.

Due to the importance of reliable nuclear production at TVA, the OIG audited the risk of long term equipment reliability in the Nuclear Power Group (NPG). Our objectives were to assess whether risk mitigation plans and actions were established and properly designed to achieve the desired results and operating as intended, as well as identify opportunities to improve mitigation strategies for reducing long term equipment reliability risk in NPG. Our audit determined the mitigation plans identified were adequately designed to address this risk.

The Tennessee Valley Authority (TVA) contracted with the independent public accounting firm of Ernst & Young LLP (EY) to audit the balance sheet as of September 30, 2013, and the related consolidated statements of operations, comprehensive income (loss), changes in proprietary capital, and cash flows for the year then ended. In addition, the contract called for the review of TVA's fiscal year 2013 interim financial information filed on Form 10-Q with the Securities and Exchange Commission.

The OIG audited the subcontracting process used by URS Energy & Construction, Inc. (URS), under contract numbers 66777 and 72142. Under the contracts, URS was to provide design, engineering, procurement, delivery, installation, and construction management services for TVA's (1) combined cycle combustion turbine or simple cycle combustion turbine projects and (2) various equipment for selective catalytic reduction and dry flue gas desulfurization precipitators.

The OIG evaluated the adequacy of actions taken to mitigate combustible coal dust at TVA coal plants.

The OIG performed four agreed-upon procedures which were requested solely to assist management in determining the validity of the TVA Winning Performance payout awards for the fiscal year (FY) ended September 30, 2013. In summary, we found:The FY 2013 Winning Performance goals were properly approved. One change form for FY 2013 was approved on March 3, 2013; two change forms were approved on June 7, 2013; one change form was approved September 16, 2013: and one was signed but not dated.

At the request of Tennessee Valley Authority's (TVA) Supply Chain and TVA's Senior Vice President, Generation Construction, we audited $66.4 million in costs billed to TVA by Phillips and Jordan, Inc. (P&J), under an Advance Authorization (AA) agreement and Contract No. 78268. The AA agreement and contract provided for P&J to unload and dispose of at least four million tons of coal combustion by-products from the coal combustion by-products spill at TVA's Kingston Fossil Plant in December 2008.