Contract for Quality Control Inspections and Nondestructive Examinations

As part of our annual audit plan, we audited $35.07 million in costs billed to TVA by a contractor for providing quality control inspections and nondestructive examinations under two contracts. In summary, we found TVA had been overbilled $159,662 under one of the contracts, including (1) $136,030 in overstated payroll taxes, insurance, and related performance fees, (2) $18,228 in ineligible labor costs, and (3) $5,404 in duplicate fees. The contractor agreed with our findings and plans to reimburse TVA for the overbilled costs. Summary Only