Contract Audit

Our audit of $5.9 million of costs billed to TVA by a contractor that conducted various projects and programs from April 1999 through September 2007 found the costs were fairly stated and agreed with the terms of the contract. However, about 20 percent of the payments TVA had made to the contractor were related to a specific project under which TVA acts as an administrator, collecting funds from various federal agencies and disbursing the funds to the contractor. Since the benefits received by TVA for incurring the costs of administering the collection and disbursement of the funds for the project appear negligible, we recommended TVA consider transferring the administration function for the project to the contractor. TVA management and the contractor agreed with the audit recommendation. TVA management and the contractor agreed with the audit findings. Summary Only