Agreed-Upon Procedures For TVA Fiscal Year 2018 Performance Measures

The Office of Inspector General (OIG) performed procedures that were requested and agreed to by Tennessee Valley Authority (TVA) management solely to assist management in determining the validity of the Winning Performance/Executive Annual Incentive Plan (WP) Measures for fiscal year (FY) ended September 30, 2018. The WP Measures data provided to the OIG and to which the agreed-upon procedures were applied is the responsibility of TVA management. In summary, procedures applied by the OIG found: • The FY2018 WP goals for the enterprise measures were properly approved. There were four change forms that clarified the definition sheet formulas for three separate measures. However, these change forms did not impact the measures, weights, and goals of the Enterprise measures. • The FY2018 goals (target) for the corporate multiplier measures were properly approved. • The actual FY to-date results for the enterprise measures agreed with the underlying support. • The actual FY to-date results for the corporate multiplier measures agreed with the underlying support, without exception. • The FY2018 WP payout percentage provided by the Benchmarking and Enterprise Performance organization on November 5, 2018, was mathematically accurate and agreed with the OIG’s recalculation.