Date Issued
Report Number
2026-17611
Report Type
Audit
Description
The Tennessee Valley Authority’s (TVA) Enterprise Risk Management (ERM) business unit focuses on identifying and prioritizing enterprise risks. Annually, ERM leads the preparation of an enterprise risk portfolio, which includes risks across TVA, to aid leadership in strategic and business planning processes. Each business unit includes their specific risks in the portfolio and documents the probability of occurrence, financial impact, and actions to manage the risk. TVA Labor Relations included Lack of Robust Pathways and Pipelines to Support Workforce Readiness and Availability risk in the fiscal year 2025 ERM risk portfolio. The risk description stated, "Failure to take swift and strategic action to develop and execute a comprehensive and holistic workforce strategy could result in our inability to take on new projects, innovate sustainable technology, and continue to deliver on TVA's mission." The actions to address the risk included apprentice recruitment and utilization measures, the establishment of a workforce development team and portal, and an hourly layoff process. Due to the importance of workforce readiness and availability, we conducted an audit to determine if TVA was taking planned actions and measuring the impact of completed actions.
We determined TVA has taken actions to address the workforce readiness risk. TVA Labor Relations has completed 13 of 14 mitigating actions identified for this risk. However, we determined TVA was not effectively measuring the impact of completed actions on the risk’s probability of occurrence and financial impact. In addition, some risk information was not documented accurately.
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0