As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Day and Zimmerman NPS, Inc. (DZNPS) for the services of qualified craft, noncraft, or staff augmented personnel to perform modification, outage, supplemental maintenance, and technical support work at TVA nuclear generating sites under Contract No. 11515. Our audit objective was to determine if costs billed to TVA at Sequoyah Nuclear Plant were in compliance with the terms of Contract No. 11515. Our scope included approximately $100 million in costs billed to TVA under Contract No. 11515 (Purchase Contract No. 12567 for Sequoyah Nuclear Plant) from January 1, 2023, to December 31, 2024.
In summary, we determined the costs billed by DZNPS generally complied with the contract except for $56,659 in overbilled costs. Specifically, we determined DZNPS billed TVA (1) $53,961 in ineligible incentives and (2) $2,698 in ineligible labor costs.
