All Reports

The Office of the Inspector General audited the Tennessee Valley Authority’s (TVA) use of remote application and desktop virtualization client due to the risks of (1) potential system intrusion through misconfigurations and (2) continued elevated remote users during the COVID-19 pandemic. We found the configuration management control for TVA’s remote application desktop virtualization client was ineffective. However, we determined compensating access controls were in place to mitigate the risk to an overall acceptable level.

The Office of the Inspector General conducted a review of TVA Police and Emergency Management’s (TVAP&EM) organization to identify factors that could impact TVAP&EM’s organizational effectiveness. During interviews, TVAP&EM personnel revealed positive interactions within and outside TVAP&EM. However, we identified issues that have, or could, affect accomplishment of the TVAP&EM mission, if not addressed.

We are pleased to present our report for the period October 1, 2022, to March 31, 2023. In this semiannual period, our audit, evaluation, and investigative activities identified more than $41.4 million in questioned costs; funds to be put to better use; and recoveries, fees, and fines; and opportunities for TVA to improve its programs and operations.As TVA begins its 91st year, challenges lie ahead as demand increases and TVA strives to have net-zero greenhouse gas emissions by 2050.

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined a company's standard design rates (i.e., indirect cost recovery rates) contained in the BWRX-300 Technology Collaboration Agreement (TCA). Our examination objective was to determine if the company's proposed indirect cost recovery rates were fairly stated.In our opinion, the company's proposed rates for the recovery of its fringe benefits, overhead, and general and administrative costs were fairly stated.

The Office of the Inspector General conducted a review of Transmission Planning and Projects (TPP) organization to identify factors that could impact TPP’s organizational effectiveness. During interviews, TPP personnel revealed positive interactions with team members and business partners provided positive feedback on TPP. However, we identified issues that could negatively impact TPP’s effectiveness, if not addressed.

The Office of the Inspector General conducted an evaluation to determine if hazardous chemicals at Power Operations’ sites were (1) adequately identified and communicated and (2) properly handled and stored. We determined hazardous chemicals at most Power Operations’ sites we visited were not adequately identified or communicated. Specifically, most sites had incomplete hazardous chemical lists or unmarked containers.

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by the Steam Generating Team, LLC (SGT) for steam generator replacement services under Contract No. 11144. Our audit objective was to determine if costs were billed in accordance with the contract's terms.

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for performance of nonnuclear modification and supplemental maintenance services. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned 5-year, $386 million contract.In our opinion, the company's cost proposal was overstated.

Enterprise Risk Management (ERM) provides an enterprise-wide, strategically aligned portfolio view of organizational challenges that provides improved insight about how to more effectively prioritize and manage risks. The Tennessee Valley Authority (TVA) Board of Directors established a formalized ERM program in 1999 to (1) develop a standard framework and (2) promote risk management awareness and techniques to manage risks throughout the company.

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for performance of nonnuclear modification and supplemental maintenance services. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned 5-year, $579 million contract.In our opinion, the company's cost proposal was overstated.