All Reports

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Express Scripts, Inc. (ESI) for pharmacy benefits management services under Contract No. 11023. Our audit objective was to determine if costs were billed in accordance with the terms of the contract.

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by The Steam Generating Team, LLC for steam generator replacement services under Contract No. 11144. Our audit objective was to determine if the craft labor and project closeout costs billed to TVA under Contract No. 11144 for steam generator replacement services were in accordance with the contract's terms. Our audit scope included about $29.2 million in craft labor costs billed to TVA from February 1, 2022, through March 31, 2023.

We are pleased to present our report for the period April 1, 2023, to September 30, 2023. In this semiannual period, our audit, evaluation, and investigative activities identified more than $67.7 million in questioned costs; funds to be put to better use; recoveries, fees, and fines; waste/other monetary loss; and opportunities for TVA to improve its programs and operations.TVA relies on contractors and vendors to access materials, build and maintain assets, and innovate new technology to support and advance operations.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2023 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.

Section 26a of the Tennessee Valley Authority (TVA) Act requires TVA's approval prior to construction, operation, or maintenance of any dam, appurtenant works, or other obstruction affecting navigation, flood control, or public lands or reservations across, along, or in the Tennessee River and its tributaries.

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/Executive Annual Incentive Plan (WP) Measures for fiscal year (FY) ending September 30, 2023. Tennessee Valley Authority management is responsible for the WP Measures data provided. In summary, procedures applied by the OIG found the:• FY 2023 WP goals for the enterprise measures were properly approved.

On August 20, 2020, in response to the coronavirus (COVID-19) pandemic, the Tennessee Valley Authority (TVA) created the Pandemic Relief Credit (PRC) to provide a measure of relief to local power companies (LPCs), industries, businesses, and people of TVA’s seven state service region. Relief was provided in the form of a 2.5 percent credit to LPC and directly served customers’ demand and nonfuel energy charges. In August 2021, TVA extended the 2.5 percent credit through fiscal year (FY) 2022. TVA subsequently extended the 2.5 percent credit through FY 2023.

The Office of the Inspector General conducted a review of TVA’s Technology Portfolio Management (TPfM) organization to identify factors that could impact TPfM’s organizational effectiveness. Interviews with TPfM personnel revealed positive interactions within TPfM. However, we identified issues that included engagement risk in one group that affected morale. We also identified opportunities to improve (1) performance of the Technology and Innovation mission pertaining to role clarity and execution and (2) communication and collaboration with business partners.

Based on our review of Preventive Maintenance (PM) metric data provided by the Tennessee Valley Authority (TVA), we determined PMs were generally being performed within established schedules at TVA’s nuclear plants; however, some metrics indicated performance could be improved.

The Office of the Inspector General conducted a review of the Power Service Shop (PSS) organization to identify factors that could impact PSS’s organizational effectiveness. During our evaluation, PSS personnel commented positively on interactions within and outside of PSS and the safety environment. However, we identified issues that could negatively impact PSS’s effectiveness, if not addressed. These issues include (1) staffing challenges; (2) resource concerns related to tooling, tools, equipment, and trailers; and (3) communication with business partners.