All Reports

We completed agreed-upon procedures to assist the Center for Resource Solutions (CRS) in determining TVA's compliance with the annual reporting requirements of CRS' Green Pricing Accreditation Program for the year ended December 31, 2007. The required information on TVA's renewable energy initiative, "Green Power Switch," was provided to CRS. No exceptions were identified. Summary Only

We reviewed $14.2 million of costs billed to TVA by a contractor for providing right-of-way clearing and restoration services and found:TVA had been overbilled $81,533 including (a) $38,796 in unallowable miscellaneous material costs, (b) $34,776 in duplicate billings for initial clearing costs, and (c) $7,961 in unsupported labor costs. Additionally, we found the contractor had underbilled TVA $5,776 due to various invoicing errors.

A review of trust funds administered by Economic Development (ED) found the majority of the trust funds were inactive, and according to ED management, had been established between 1983 and 1991 for a variety of purposes. ED management said they found no activity in the majority of these trusts. ED had closed approximately 11 inactive trust funds as of July 27, 2007. Our review further found that documentation of these trust agreements was limited.

We audited $16.5 million of costs billed to TVA by a contractor for providing cleaning and removal services using high-powered vacuum and hydro-blasting services to various TVA locations. In summary, we found the contractor had (1) overbilled TVA an estimated $115,617 in unsupported and ineligible costs and (2) performed certain services and fixed price tasks not provided for by the contracts. The contractor agreed it had overbilled TVA for certain questioned costs and disagreed with other questioned overbillings.

We performed a pre-implementation review of security, application testing, and data loading for TVA's Electronic Access Protection System (EAPS). We determined the EAPS security plans and procedures and TVA's plans for application testing and data loading provided adequate controls over security, testing, and data reliability. Summary Only

We reviewed 40 contracts awarded by Procurement during fiscal year 2006 and found: (1) insufficient competition existed in the award of seven of the contracts because only one bid had been received and evaluated; (2) Technical Contract Managers contacted vendors and received pricing quotes prior to Procurement's involvement in five of the contract awards; and (3) with some exceptions, Procurement's contract managers and purchasing agents had appropriate documentation in the contract files.

In 1988, Congress established by law the Office of Inspector General at TVA. A fair question is, to what end? If we were judged on the same basis as private sector business units, how would we stack up? Did we pay our way? And perhaps the most important consideration, have we helped make TVA better? Some might say there is a natural tendency in government to dismiss prior administrations as ineffective and to discount their achievements, that each administration strives to make its distinctive mark and to laud its own achievements. We owe the American public more.

The recent restructuring of the Information Services (IS) operations area mirrors leading practices. In addition, IS' methodologies and tools for conducting information technology projects are above those of its peers.

While IT Security has made strides in establishing the technology infrastructure, we found (1) IT Security lacks a business-level mechanism to provide cross-agency oversight, a strategic TVA-wide approach, and grounding in risk management; (2) coordination and communication with business units were not well defined and could be more effective with increased training, communication, and business unit involvement in security planning; (3) procedures were outdated and did not address issues for all business segments; and (4) performance management was substantially undefined.

TVA entered into a contract with a vendor to provide a fully integrated prescription drug program that would include both retail and mail order prescription drug services. The contractor was required to (1) maintain a Participating Pharmacy Network to provide retail pharmacy services, (2) provide base administrative services including processing and adjudicating TVA's prescription drug claims in accordance with TVA's plan design, (3) issue checks to participating pharmacies and/or claimants on TVA's behalf, and (4) implement and administer health management programs.