All Reports

TVA's helicopter fleet consists of seven helicopters that TVA owns and self-insures. Based on our review of FlightWatch1 data and discussions with the Manager of Helicopter Services, TVA's helicopters are used for a variety of missions, including:Inspecting TVA's 17,000 circuit miles of transmission lines in a seven-state region.Aerial photography, laser mapping, and river and environmental surveys. Construction support. Clean air testing. Right-of-way inspections. Transportation of TVA executives.

We determined Procurement has made Purchasing Card Program changes to address control weaknesses identified in our previous report on the program; however, travel and travel-related expenses are still being charged to the purchasing cards.

We determined (1) not all purchasers of hospitality had completed the hospitality training module, (2) some purchases were not charged to the correct cost classification, (3) TVA's Hospitality Policy did not require use of TVA Form 17901, Pre-approval of TVA Hospitality Expenditure, (4) TVA's Hospitality Policy did not address use of a TVA purchasing card for purchasing hospitality, and (5) TVA's pre-approval form did not require assessment of reputation risk. In addition, we found TVA's hospitality spending had decreased by 70% since our 2004 review.

We determined that HED appears to be following the policies and procedures set forth in their tool management policy for the distribution and reclamation of tools at the fossil plant sites. HED procedures and key control activities ensure that HED leased tools are adequately tracked and accounted for. However, the computer inventory tracking system does not accurately reflect HED tools available for lease, and documentation related to the disposal of tools and inventory adjustments could be improved.

Determined the (1) Fiscal Year (FY) 2005 LLRW estimate appeared reasonable when unforeseen incurred LLRW disposal costs were taken into account and (2) the processes, methodology, and assumptions used to develop the FY 2006 disposal estimates were consistent with those used in developing the FY 2005 estimates. In addition, we verified that the LLRW expense and liability accounts were adjusted quarterly in accordance with TVA Nuclear Business Practice 263.

We determined that while TVA's June 2002 proposed COOP appears to address major COOP requirements as stated in Federal Preparedness Circular 65 and provides guidance for the preparation of site-, activity-, or business-unit specific plans, TVA's COOP lacks proper implementation and support. Management agreed with our findings and has taken or plans to take appropriate corrective actions.

We determined that approximately 95 percent of the items selected for review from items in BLN's construction inventory records pertaining to 213 commodities were actually warehoused at BLN. We also noted that the sales price of the inventory will likely be less than the original purchase cost due to the condition of the materials. This report was issued to management for informational purposes only.

We identified no instance where PricewaterhouseCoopers LLP did not comply in all material respects with Government Auditing Standards in its review of TVA's interim financial information for the first quarter of FY 2006.

As a result of our review of the procedures and key control activities used to track and account for tools at Browns Ferry Nuclear Plant (Inspection No. 2005-526I), we performed an inspection to asses the processes and key control activities used to track and account for tools at WBN. TVA Nuclear (TVAN) Business Practice 226 (BP-226), Tool and Equipment Accountability, dated August 27, 2000:<br><br>Established and implemented a plant accountability system for tools and equipment. Strengthened and standardized existing tool and equipment accountability practices.

We reviewed and evaluated the control design and documentation for the time reporting process to determine whether key financial reporting risks were addressed in the control framework. In summary, we determined process control documentation was inadequate in the areas of establishing responsibility for accurate time reporting, and monitoring of time reported, which resulted in inconsistencies in time reporting processes used at TVA sites. TVA management agreed with our findings and initiated corrective actions to improve guidance. Summary Only