Deloitte Consulting, LLP (AKA Deloitte & Touche, LLP) - Contract Nos.. 27590 and 57803

We audited $51.2 million in costs billed to TVA by a contractor for financial management and consulting services under two contracts. Our objective was to determine if the costs billed from July 2003 through December 2008 were in compliance with the provisions of the contracts. In summary, we found $4.8 million of costs billed by the contractor were unsupported or not in accordance with the terms of the contracts as follows.$3,328,704 was overbilled because the contractor did not limit its overtime billings as it represented it would in its proposals and in the final terms of one of the contracts. (The overbilling included about $890,000 that occurred from the end of our audit period through March 31, 2010.)$514,669 in labor costs were overbilled due to unapproved job categories or incorrect billing rates, timesheet discrepancies, and unallowable administrative labor.An estimated $51,233 was billed for unallowable or unsupported travel expenses and travel agency fees.$1,020,454 in overbillings occurred because costs had been performed prior to the issuance of a contract work authorization, exceeded the CWA funding limits, or was not authorized under the terms of a CWA.The overbillings itemized above included $108,877 that was included in more than one finding. Accordingly, the net overbilling after removing this duplication was $4,806,183. Summary Only