Follow-up Review of TVA Hospitality Expenses

We determined (1) not all purchasers of hospitality had completed the hospitality training module, (2) some purchases were not charged to the correct cost classification, (3) TVA's Hospitality Policy did not require use of TVA Form 17901, Pre-approval of TVA Hospitality Expenditure, (4) TVA's Hospitality Policy did not address use of a TVA purchasing card for purchasing hospitality, and (5) TVA's pre-approval form did not require assessment of reputation risk. In addition, we found TVA's hospitality spending had decreased by 70% since our 2004 review. Management generally agreed with our findings and is taking appropriate corrective action.