All Reports

At the Chief Financial Officer organization's request, we assessed the cost effectiveness of the actual travel expense reimbursement program and the Chief Operating Officer (COO) flat rate reimbursement program. We determined that the COO flat rate method of travel expense reimbursement cost about $115,000 more than the actual expense reimbursement method during a 3-month period that we reviewed.

We found no instance where TVA's external auditors' reviews of TVA interim financial information for the second quarter of FY 2005 did not comply with Government Auditing Standards in all material respects, including required communications to appropriate parties.<br><br>

We reviewed $109.8 million in costs paid by TVA to a contractor for providing engineering services associated with the restart of Browns Ferry Nuclear Plant (BFN) Unit 1. We questioned $2.5 million, including (1) the contractor's inclusion of the labor costs of its affiliate company in its performance base and (2) overcharges for labor and related costs and other direct costs. TVA decided to (1) allow the contractor to include the labor cost of its affiliate in its performance fee base and (2) recover any remaining costs that were not directly billable under the contract.

We determined TVA's contributions totaled $1.261 million and $1.646 million for FYs 2003 and 2004, respectively. TVA's Corporate Contributions organization administered about 51 percent of the contributions in FY 2003 and 36 percent in FY 2004; other TVA organizations administered the remaining contributions.

As reflected in this semiannual report to Congress, the OIG continues to better enable TVA to preparefor expected changes in its business environment.

This semiannual report summarizes the work of the OIG from April 1 through September 30, 2004. The audits, investigations, and inspections highlighted in this report illustrate our continuing commitment to helping TVA promote economy, efficiency, and effectiveness in its programs and operations.During the past six months, our audits, investigations, and inspections continued to add to TVA’s “bottom line.” We identified over $4.8 million in potential savings or recoveries, and TVA used our findings from this and prior reporting periods to save over $7 million.

As we continue to mark the 25th Anniversary of the Inspector General Act, we devote a portion of this report to note the TVA OIG accomplishments over the last 18 years. Reflecting on the contributions we have added to TVA over these many years demonstrates the value of independent reviews of TVA programs and personnel. On our contract audit efforts alone (including preaward audits), our office has identified on average about $30 million annually in savings and potential avoided costs since 1986.

This is my first report to the Board of Directors and to the United States Congress after being nominated by President Bush in February and later confirmed by the United States Senate in May. I am appreciative of the trust and confidence placed in me by the President given what I view as significant challenges for both my office and TVA. President Bush met with the Inspectors General (IGs) in Washington on October 14, 2003, and expressed his support of our efforts to bring about good government in our respective federal agencies.

I am pleased to submit this semiannual report on the accomplishments of the OIG for the six-month period ending March 31, 2003.I have been honored to serve as the Acting Inspector General since January 2002. The OIG staff and I now look forward to serving with a recent presidentially nominated Inspector General.

I am pleased to submit this semiannual report on the accomplishments of the OIG for the six-month period ending September 30, 2002.I am honored to continue serving as the Acting Inspector General. During this reporting period, our efforts ranged from increasing our role in financial-related matters and security reviews to conducting contract audits and integrity investigations.