All Reports

The Office of the Inspector General conducted a review of the Hydro Dispatch Control Center (HDCC) to identify operational and cultural strengths and risks that could impact HDCC’s organizational effectiveness. Our report identified strengths within HDCC related to (1) organizational alignment, (2) positive interactions within and outside of HDCC, (3) effective leadership, and (4) positive ethical culture. However, we also identified risks that could impact HDCC’s ability to meet its responsibilities in support of Power Operations’ mission.

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Enercon Services, Inc. (Enercon) for engineering services under Contract No. 7757. The contract provided for TVA to compensate Enercon for work on either a cost reimbursable or fixed price basis. Our audit objectives were to determine if (1) costs were billed in accordance with the terms and conditions of the contract and (2) tasks were issued using the most cost efficient pricing methodology.

We performed an audit of costs billed to the Tennessee Valley Authority (TVA) by a company for the supply of natural gas to TVA's combined cycle or combustion turbine generation plants. Our audit included approximately $205 million in costs billed to TVA for gas delivered from June 1, 2017, to May 31, 2019.

We performed an audit of craft labor costs billed to the Tennessee Valley Authority (TVA) by Day & Zimmermann NPS, Inc. (DZ) under Contract No. 11515. Under the contract, DZ was to provide the services of qualified craft, noncraft, or staff augmented personnel to perform modification, outage, supplemental maintenance, or technical support at TVA Nuclear Power Group generating sites. Our audit included approximately $19.2 million in craft labor costs billed to TVA for work performed at Watts Bar Nuclear Plant from June 1, 2018, to November 30, 2018.

The Tennessee Valley Authority Office of the Inspector General meets its legal requirement to report to Congress on its results twice a year through its Semiannual Report to Congress.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2019 financial statements performed by Ernst and Young LLP (EY) to assure their work complied with Government Auditing Standards. Our review of EY's work disclosed no instance in which the firm did not comply in all material respects with Government Auditing Standards.

The Office of the Inspector General (OIG) performed procedures that were requested and agreed to by Tennessee Valley Authority (TVA) management solely to assist management in determining the validity of the Winning Performance/Executive Annual Incentive Plan (WP) Measures for fiscal year (FY) ending September 30, 2019. The WP Measures data provided to the OIG and to which the agreed-upon procedures were applied is the responsibility of TVA management. In summary, procedures applied by the OIG found: • The FY 2019 WP goals for the enterprise measures were properly approved.

The Office of the Inspector General (OIG) contracted with ATC Group Services LLC (ATC) to conduct a review of groundwater monitoring activities at Shawnee Fossil Plant to determine the quality of the program and adherence to regulatory standards. ATC stated that in their opinion, monitoring activities performed at Shawnee Fossil Plant are in adherence with guidelines for the Environmental Protection Agency. Furthermore, ATC stated the work performed appears to be of high quality and does not likely result in any discrepancies for the program.

The Office of the Inspector General previously conducted an evaluation of Sequoyah Nuclear Plant (SQN) Site Security (Evaluation 2018-15550, issued September 24, 2018) to identify strengths and risks that could affect SQN Site Security’s organizational effectiveness. Our report identified several strengths and risks along with recommendations for addressing those risks. In response to that report, Tennessee Valley Authority management provided their management decision.

The Office of the Inspector General previously conducted an evaluation of Human Resources (Evaluation Report 2016-15445-05, issued September 26, 2017) to identify operational and cultural strengths and areas for improvement that could impact Human Resources’ organizational effectiveness. Our report identified several operational and cultural areas for improvement and included recommendations for addressing those areas.