All Reports

We performed an interim audit of 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 (BFN) Unit 1. The scope of our review included $492.4 million of craft labor costs billed by the contractor through October 29, 2006, which had not previously been audited including: (1) $214 million for modification and supplemental maintenance services and (2) $278.4 million for the BFN Unit 1 services.

While TVA has taken several actions to better protect social security numbers (SSNs), we found opportunities to further protect or reduce the usage of SSNs that will lower the risk of exposure. TVA's Information Services has several initiatives under way to improve protection of SSNs. We are recommending several actions to further protect SSNs. Management agreed and has initiated corrective actions.

We initiated a special project to determine if (1) TVA's policies, procedures, and practices for handling lost or stolen computer equipment were adequate; (2) those policies, procedures, and practices were followed; and (3) the lost or stolen computers contained sensitive or restricted information. We found:TVA's policies, practices, and procedures for maintaining an accurate inventory of computer equipment were not adequate.

We audited $22.1 million of costs paid by TVA to a contractor for construction and modification services at TVA facilities. In summary, we foundAn estimated $20.8 million billed by the contractor for craft augmentation labor using hourly billing rates was inflated by approximately $619,000 because the contractor's billing rates included (a) overstated payroll tax costs and (b) calculation errors; andThe contractor billed TVA $25,658 for subcontract services it had not incurred.

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.

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.

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