Date Issued
Report Number
2025-17559
Report Type
Audit
Description
We performed an audit of the costs billed to the Tennessee Valley Authority (TVA) by Johnson Service Group, Inc. (JSG) under Contract No. TVA‑04012020‑125806 for noncraft staff augmentation services. Our audit objective was to determine if the costs billed to TVA by JSG were in accordance with the contract’s terms. Our audit scope included about $32.5 million in costs billed to TVA from June 26, 2024, to March 11, 2025.
In summary, we determined the costs billed by JSG generally complied with the contract except for a net overbilling of $3,288 in travel costs. We also determined that TVA inadvertently credited an invoice instead of issuing a payment, resulting in an underpayment of $1,700. In addition, TVA’s hiring managers provided approval for costs to be billed by JSG, which were not in accordance with the contract’s terms. Specifically, TVA could have saved $30,765 if TVA hiring managers had not allowed and/or approved reimbursement for (1) travel instead of temporary living allowances (TLA) for temporary assignments at one location exceeding 90 days, (2) excessive TLA rates, and (3) ineligible or excessive travel costs.
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0