U.S. flag

An official website of the United States government

Dot gov

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Https

Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Back to Business Credit Program

Report Information

Date Issued
Report Number
2022-17346
Report Type
Audit
Description
The Office of the Inspector General included an audit of the Tennessee Valley Authority’s (TVA) Back to Business Credit Program (Program) in our annual audit plan due to reputational and financial risks associated with the Program. Our audit objective was to determine if adequate controls were in place to ensure Back to Business credits were provided to businesses in compliance with Program guidelines. Our audit scope was all $13.1 million in credits issued during the life of the Program (April 2020 through September 2021).We found controls were adequate to ensure the Program credits were accurately calculated in accordance with Program guidance. However, we found some credits were not passed from the local power company to the customer. We also determined the Program did not have controls needed to more appropriately achieve the stated objective. Specifically, the Program did not include controls needed to (1) verify the reduced on-peak demand was due to a reduced level of operations as a result of COVID-19 and (2) specify how/when customers were considered back to prepandemic operating conditions.
Joint Report
Yes
Participating OIG
Tennessee Valley Authority OIG
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View report on Oversight.gov

Recommendations

We recommend the Vice President, Contracts and Rate Strategy, work with TVA’s Regulatory Assurance to ensure all Back to Business Credit Program credits given to local power companies were passed through to the end customers.

We recommend the Vice President, Contracts and Rate Strategy, develop guidance for any future programs to include: (a) methods for validating any customer self-certifications prior to issuance of credits or payments, (b) criteria for both eligibility and when a participant becomes ineligible, (c) procedures to address whether core components of the program, approved by the TVA Board of Directors, are accomplished.

We recommend the Vice President, Contracts and Rate Strategy, consider consulting with the Office of the Inspector General regarding tracking, reporting, and financial controls for new programs or changes to existing programs as recommended by the joint Office of Management and Budget/Pandemic Response Accountability Committee Payment Integrity Alert.