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Business Meetings and Hospitality

Report Information

Date Issued
Report Number
2020-15691
Report Type
Audit
Description
We audited the Tennessee Valley Authority’s (TVA) business meeting and hospitality expenses to determine if they complied with TVA’s Business Meetings and Hospitality policy and any other applicable TVA guidance. Our audit scope included approximately $6.5 million in business meeting and hospitality expenses occurring from October 1, 2018, through September 30, 2019.Our audit found TVA’s approval process did not ensure expenses complied with the Business Meetings and Hospitality Policy. Specifically, we found expenses were approved for (1) reimbursement and/or payment without the required information and supporting documentation included with the expense voucher, (2) questionable team-building expenditures, and (3) prohibited alcohol expenditures. We also found a lack of guidance for compliance with TVA’s Food Services Policy. Additionally, we found the process for approving large meeting expenses and guidance for the classification of meeting-related expenses could be improved.We made five recommendations to TVA management to strengthen controls around business meetings and hospitality by (1) developing additional guidance to ensure compliance with the Business Meetings and Hospitality Policy and Food Services Policy, and (2) reinforcing the existing Food Services Policy. TVA management provided actions they plan to take to address each of our recommendations.
Joint Report
Yes
Participating OIG
Tennessee Valley Authority OIG
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View report on Oversight.gov

Recommendations

We recommend the Vice President and Controller, Corporate Accounting develop guidance to ensure the appropriate level of approval for expenses when it is not practical or possible for the highest ranking TVA official hosting the event to charge the expenses to his/her TVA corporate card.

We recommend the Vice President and Controller, Corporate Accounting update TVA-SPP-28.300, Food Services, to include documentation retention requirements for waivers obtained from RSA vendors and a requirement to conduct periodic audits for compliance with the RSA and TVA-SPP-28.300, Food Services.

We recommend the Vice President and Controller, Corporate Accounting update TVA-SPP-13.063, Business Meetings & External Relationship Events, to include:Guidance on classification for expenses related to events (e.g., supplies, employee gifts, decorations).Requirements for compliance with the RSA and TVA-SPP-28.300, Food Services, when meetings or events are held onsite.

We recommend the Vice President and Controller, Corporate Accounting reinforce the requirements for compliance with the RSA and TVA-SPP-28.300, Food Services, through training and/or communications to all employees hosting business meetings and external relationship events.

We recommend the Vice President and Controller, Corporate Accounting develop guidance clarifying acceptable expenditures for team-building events.