All Reports

We audited $25 million of costs billed to TVA by a contractor from January 1, 2006, through December 31, 2008, for the administration of TVA's dental benefit plan. Our objective was to determine if the costs billed to TVA were in compliance with the contract terms and conditions. In summary, we found TVA had been overbilled $25,591, including: (1) $17,713 for duplicate claim payments; (2) $832 for claims which exceeded plan limits; and (3) $7,046 for ineligible orthodontic payments.

We performed three agreed-upon procedures which were requested solely to assist TVA management in determining the validity of TVA's Winning Performance (WP) payout awards for the year ended September 30, 2009.

The OIG performed a review of Bolivar Energy Authority (Bolivar), a distributor for TVA power based in Bolivar, Tennessee. Our review of Bolivar found issues involving customer classification and metering that could impact (1) the proper reporting of electric sales, and (2) nondiscrimination in providing electricity to members of the same rate class.

Change is coming to TVA...and much of it is internally driven. Undoubtedly, the coal ash spill at the Kingston plant on December 22, 2008, set some of those changes in motion, but the TVA Board and TVA management have reacted with a commitment to make the changes necessary to make TVA better. Yes, Kingston was an environmental tragedy, but ultimately the TVA that is emerging is likely to be better able to serve the needs of Valley residents. As we have pointed out in our reports on Kingston, this was a disaster that did not need to occur.

We conducted four reviews to determine whether each coal supplier was in compliance with weighing and sampling provisions of the respective contract. We performed tests to verify that shipment weight documentation maintained at each mine supported the amounts used to support invoices to TVA for tonnage shipped. In summary, our reviews found documentation maintained at the respective mine for ten randomly selected shipments agreed with the information provided to TVA regarding tons shipped.

We performed a pre-implementation review of the Enterprise Asset Management (EAM) System, Phase 1 implementation, which provided for supply chain and work management processes. We determined plans and processes in place were adequate after actions were completed to address our concerns, regarding application access controls, system security, system testing, data conversion, and general controls.

The OIG performed a review of the Hickman-Fulton Counties Rural Electric Cooperative Corporation (Hickman-Fulton) which is a distributor for TVA power based in Hickman, Kentucky.

We audited the costs billed to TVA by a contractor for providing (1) modification and supplemental maintenance services at TVA nuclear plants (operating unit work) and (2) construction services for the restart of Browns Ferry Nuclear Plant Unit 1 (BFN U1).

We audited $25 million of costs billed to TVA by a contractor for providing research and development activities.

We audited $2.8 million in subcontractor costs billed to TVA by a contractor for work related to the restart of Browns Ferry Nuclear Plant Unit 1. Our preliminary review of the costs billed by the subcontractors caused us to have concerns that certain costs that were billed may have also been billed to TVA under other contracts.