Date Issued
Report Number
2012-14607
Report Type
Audit
Description
TVA's meter testing was identified as a key internal control in the revenue recognition process after TVA moved from end-use to wholesale billing. The OIG audited the adequacy of TVA's process for testing meters owned and read by TVA. The audit included (1) evaluating whether TVA meter testing policies and procedures met or exceeded identified industry standards, (2) verifying TVA tested the meters within the applicable time limits, in compliance with TVA meter testing policies and procedures, and (3) determining if TVA had procedures in place to identify all meters used to capture data for wholesale billing.In summary, we determined TVA meter testing complied with TVA policies and procedures regarding timeliness and met identified industry standards. However, we noted areas for improvement in TVA's meter testing processes, including (1) verification of meter constants, (2) reconciliation of meter information in TVA systems, and (3) consistency among testing documentation.We recommended TVA (1) formalize its policy for testing and/or documenting meter constants as part of preventative maintenance; (2) develop a procedure for reconciling meter information included in the Maximo, Itron Enterprise Edition, and Lodestar systems; and (3) develop guidelines for acceptable documentation of meter tests, including information, review, and maintenance requirements. TVA management concurred with our recommendations and is taking or has taken action to address these issues.
Joint Report
Yes
Participating OIG
Tennessee Valley Authority OIG
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0