All Reports

According to Tennessee Valley Authority (TVA) Standard Programs and Processes 26.003, Community Contributions, TVA helps enable a better quality of life in the communities it serves (1) through its work in energy, the environment, and economic development and (2) by supporting educational and community goals. Much of TVA’s giving activity supporting educational and community goals is administered under formally established programs, including the Community Contributions and Community Care Fund programs.

The Tennessee Valley Authority (TVA) performs an annual cost of service study that, according to Commercial Energy Solutions Standard Programs and Processes 21.7.3, Cost of Service, “is used to estimate the cost to TVA of serving particular classes of customers and to compare that cost to the estimated revenue derived from those classes. The analysis may be used to derive, evaluate, initiate, or justify rate actions.”

At the request of the Tennessee Valley Authority’s (TVA) Supply Chain, we examined the cost proposal submitted by a company for engineering and construction services in connection with the validation phase of TVA’s Small Modular Reactor and Clinch River Nuclear project. Our examination objective was to determine if the company’s cost proposal was fairly stated for a contract with expenditures up to $25 million.

At the request of the Tennessee Valley Authority (TVA) Supply Chain, we examined the contractor’s cost proposal for work in connection with the validation phase of TVA’s Small Modular Reactor and Clinch River Nuclear project. Our examination objective was to determine if the cost proposal was fairly stated for a planned contract with expenditures up to $25 million.

We are pleased to present our report for the period April 1, 2024, to September 30, 2024. In this semiannual period, our audit, evaluation, and investigative activities identified more than $48.4 million in questioned costs; funds put to better use; recoveries, fees, and fines; and opportunities for the Tennessee Valley Authority (TVA) to improve its programs and operations.

Proper practices and procedures can reduce the number of accidents resulting from an inadvertent release of hazardous energy, according to the Occupational Safety and Health Administration. The Tennessee Valley Authority’s Safety Procedure 18.613, Clearance Procedure to Safely Control Hazardous Energy Using Group Tagout, establishes minimum TVA-wide clearance requirements, while Power Operations Standard Programs and Processes 10.015, Coal and Gas Clearance Procedure, governs the clearance process at gas sites.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2024 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.

At the request of the Tennessee Valley Authority’s (TVA) Supply Chain, we examined the cost proposal submitted by a contractor for engineering services in connection with the validation phase of TVA’s Small Modular Reactor and Clinch River Nuclear project. Our examination objective was to determine if the cost proposal was fairly stated for a planned $25 million contract.

The Office of the Inspector General performed an audit to determine if the Tennessee Valley Authority (TVA) has designed and implemented privacy requirements in accordance with the Consolidated Appropriations Act, 2005. Our scope was limited to TVA’s privacy program responsibilities as defined in the Consolidated Appropriations Act, 2005. We determined TVA had privacy policies in alignment with the Consolidated Appropriations Act, 2005.

The Office of the Inspector General (OIG) performed the procedures, which were requested and agreed to by Tennessee Valley Authority management solely to assist management in determining the validity of the Winning Performance (WP)/Executive Annual Incentive Plan (EAIP) Measures for fiscal year (FY) ending September 30, 2024. Tennessee Valley Authority management is responsible for the WP Measures data provided. In summary, procedures applied by the OIG found the:• FY 2024 WP goals for the enterprise measures were properly approved.