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Report File
Date Issued
Submitting OIG
Tennessee Valley Authority OIG
Other Participating OIGs
Tennessee Valley Authority OIG
Agencies Reviewed/Investigated
Tennessee Valley Authority
Report Number
2006-530I
Report Description

October 25, 2006 - Browns Ferry Nuclear Plant (BFN) Materials Inventory Accounting Practices - 2006-530IAt the request of the TVA’s Chief Nuclear Officer and Executive Vice President, we conducted a review of inventory accounting practices at Browns Ferry Nuclear Plant. Specifically, we were requested to determine whether (1) proper accounting practices and TVA policies were followed when returning material and components (i.e., spare parts) to inventory after being removed from installed locations and (2) existing procedures provide adequate guidance on returning spare parts to inventory. In summary, we found:Noncompliance with Generally Accepted Accounting Principles (GAAP) and TVA policies and procedures.TVA policies and procedures do not adequately address (a) how to account for the return of material/components to inventory from installed locations (i.e., spare parts) and (b) the inventory tracking of spare parts.While we found no indication of intent to manipulate the entries to achieve outage performance goals, the circumstances could create an appearance to do so.TVA management agreed with our findings and has initiated or plans to initiate corrective action.

Report Type
Audit
Agency Wide
Yes
Questioned Costs
$0
Funds for Better Use
$0

Tennessee Valley Authority OIG