Agreed-Upon Procedures for TVA Fiscal Year 2019 Performance Measures

The Office of the 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) ending September 30, 2019. 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 FY 2019 WP goals for the enterprise measures were properly approved. One change form was approved on November 9, 2018, and clarified the definition sheet methodology for calculating the goals for one of the measures. However, this change form did not impact the overall measure, weight, and goals of that measure. Another change form was approved on January 22, 2019, and affected one measure. • The FY 2019 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, without exception. • The actual FY to-date results for the corporate multiplier measures agreed with the underlying support, without exception. • The FY 2019 WP payout percentage provided by the Benchmarking and Enterprise Performance organization on November 6, 2019, was mathematically accurate and agreed with the OIG’s recalculation.