Date Issued
Report Number
2020-15713
Report Type
Audit
Description
As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by The L.E. Myers Co. (LE Myers) under Contract No. 9070 for construction and modification services for TVA's Transmission and Power Supply Program. The contract provided for TVA to compensate LE Myers for these services on either a cost-reimbursable or fixed price basis. Our audit objective was to determine if costs were billed in accordance with the terms and conditions of Contract No. 9070. Our audit scope included about <br> $35.5 million in cost-reimbursable expenses billed to TVA from September 1, 2018, through December 31, 2019. In summary, we determined LE Myers overbilled TVA $120,152, including (1) a net $93,695 in unsupported and incorrect craft labor charges, (2) $13,955 in unsupported travel costs, and (3) $12,502 in unsupported equipment costs. In addition, we found that (1) LE Myers did not submit an electronic billing file to the TVA Office of Inspector General in the format and frequency provided for in the contract's terms, and (2) TVA did not revise the contract's equipment rate schedule to include a piece of equipment approved for use by TVA's Contract Manager.(Summary Only)
Joint Report
Yes
Participating OIG
Tennessee Valley Authority OIG
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0