All Reports

We audited $51.2 million in costs billed to TVA by a contractor for financial management and consulting services under two contracts. Our objective was to determine if the costs billed from July 2003 through December 2008 were in compliance with the provisions of the contracts.

We audited $24.9 million in payments made by TVA from 2007 through 2009 to a contractor for providing engineering, design, and construction support. In summary, we found the contractor overbilled TVA an estimated $39,915, including (1) $26,182 in overbilled labor and fee costs and (2) $13,733 in overbilled direct costs. We recommended TVA management take action to recover the overbilled costs. The contractor agreed with our findings and recommendations.and stated it would issue a credit invoice to TVA. Summary Only

We audited $6.9 million in payments TVA made to a contractor for providing labor, material, and equipment to reclear or provide maintenance for existing transmission line right-of-way areas under two contracts from January 5, 2004, through April 19, 2010. In summary, we found the contractor had overbilled TVA about $1,400 due to miscellaneous billing errors. However, TVA's invoice approvers had found and adjusted most of the errors prior to paying the contractor. Summary Only

This review was the result of broad interest surrounding the safety and condition of TVA dams after the ash spill at the Kingston Fossil Plant. The objectives of this review were to determine if TVA's Dam Safety Program identified and adequately addressed significant risks, was in compliance with TVA policies and procedures as well as applicable laws and regulations, and encompassed all the aspects of a comprehensive dam safety program.

The OIG reviewed TVA's storage and handling of anhydrous ammonia to determine whether (1) TVA's policies and procedures complied with relevant ammonia-related Occupational Safety and Health Administration (OSHA) and other federal regulations, and (2) TVA fossil plants were in compliance with TVA's policies and procedures covering ammonia storage and management.

We are pleased to present our report for the period March 31, 2010, through October 1, 2010. The hard work of our TVA OIG employees resulted in almost $20.5 million in recoveries, fines/penalties, potential savings, questioned costs, or funds which could be put to better use during this reporting period as well as numerous recommendations to improve TVA programs.We continue to monitor the progress TVA is making with both the Kingston coal ash clean-up efforts and TVA's overall record of environmental performance.

OIG reviewed the Dickson Electric System (Dickson), a distributor for TVA power based in Dickson, Tennessee.

As part of our annual audit plan, we reviewed the process for ensuring that counterparty credit analysis is performed and monitored. We identified issues related to the cultural factors affecting the credit risk monitoring process, performance of initial credit analysis, and monitoring of counterparty creditworthiness. Specifically, we determined that Corporate Credit has historically lacked authority to determine which counterparties require a credit analysis and when performance assurance is required.

TVA OIG retained Marshall Miller & Associates, Inc. (Marshall Miller) to conduct a peer review of the Stantec Consulting Services, Inc. (Stantec) stability calculations and construction documents for the Dike C Buttress at the Kingston Fossil Plant (Kingston). Dike C refers to the remaining section of the Kingston coal ash containment that did not fail in the December 22, 2008, spill. It is Marshall Miller's opinion that the planned Dike C Buttress produces stability enhancements that are sufficient based on Stantec's drained slope stability analyses.

Marshall Miller & Associates, Inc. (Marshall Miller) was engaged by the Tennessee Valley Authority (TVA) Office of Inspector General to review the Transportation and Disposal Plans prepared by the Tennessee Valley Authority (TVA) in response to the ash release that occurred on December 22, 2008 at its Kingston Fossil Plant (KIF). Specifically, Marshall Miller was asked to determine if appropriate steps are being taken to minimize the environmental impacts and if regulatory requirements are being met.