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Employee Relocation Allowances

Report Information

Date Issued
Report Number
2022-17348
Report Type
Audit
Description
The Office of the Inspector General included an audit of the Tennessee Valley Authority’s (TVA) employee relocation allowances on our annual audit plan due to the potential reputational and financial risks associated with relocations that do not comply with TVA policies and procedures. Our audit objective was to determine if relocation allowances are paid in accordance with TVA Standard Programs and Processes (SPP) 11.208, Employee Relocation Allowances. Our audit scope included 308 completed employee relocations during calendar years 2019 through 2021, totaling approximately $8.4 million. TVA utilizes a third-party vendor, SIRVA Relocation, LLC, (SIRVA) to interface with the employee and administer the relocation in accordance with TVA’s policies. We found employee relocations were generally paid in accordance with TVA SPP 11.208 and the management review control for payment of these transactions was operating effectively. However, we identified an opportunity to improve the relocation process and instances where program guidance could be clarified. Specifically, we found (1) SIRVA’s review of miscellaneous expense allowance claims was not documented consistently, (2) program guidance for some employee relocations could be improved, (3) program guidance for manager and specialist new hires is unclear, and (4) program guidance for temporary living allowances incorrectly references the Federal Travel Regulation.
Joint Report
Yes
Participating OIG
Tennessee Valley Authority OIG
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0

Recommendations

We recommend the Vice President, Total Rewards, update TVA SPP 11.208 to include guidance for administering relocations for officer and executive employees whose offer letters include language stating TVA will reimburse “actual and reasonable” costs associated with relocation.

We recommend the Vice President, Total Rewards, update TVA SPP 11.208 to include guidance for evaluating and administering subsequent relocations for manager and specialist and officer and executive employees.

We recommend the Vice President, Total Rewards, require SIRVA Relocation, LLC, to document their review of required information when authorizing payment of miscellaneous expense allowance claims.

We recommend the Vice President, Total Rewards, update TVA SPP 11.208 to clarify the relocation allowance benefits available to manager and specialist new hires under the TVA Board of Directors resolution authority and align this guidance with relocation policy documents.

We recommend the Vice President, Total Rewards, update TVA SPP 11.208 to remove reference to the Federal Travel Regulation relating to providing temporary living allowance benefits to relocating employees.