Review of Employee Recognition Costs Billed by a Contractor

June 13, 2006

2006-010C

Audit

We audited the employee recognition costs billed to TVA by a contractor under two contracts for engineering services provided in support of BFN Unit 1. In summary, we found the contractor had (1) not refunded TVA for $71,406 of unspent funds under one contract and (2) billed TVA $49,093 for employee recognition costs under the second contract. Although the second contract did not provide for TVA to receive a refund, the amounts paid by TVA had been agreed to based on the contractor's representations that it would be incurring employee recognition costs. TVA management plans to pursue recovery of the unspent funds under the two contracts. Summary Only

Yes

Yes (agency-wide)

$0

$0