Employee Relocation Allowances

The Office of the Inspector General included an audit of the Tennessee Valley Authority’s (TVA) employee relocation allowances on our annual audit plan due to the potential reputational and financial risks associated with relocations that do not comply with TVA policies and procedures. Our audit objective was to determine if relocation allowances are paid in accordance with TVA Standard Programs and Processes (SPP) 11.208, Employee Relocation Allowances. Our audit scope included 308 completed employee relocations during calendar years 2019 through 2021, totaling approximately $8.4 million. TVA utilizes a third-party vendor, SIRVA Relocation, LLC, (SIRVA) to interface with the employee and administer the relocation in accordance with TVA’s policies. We found employee relocations were generally paid in accordance with TVA SPP 11.208 and the management review control for payment of these transactions was operating effectively. However, we identified an opportunity to improve the relocation process and instances where program guidance could be clarified. Specifically, we found (1) SIRVA’s review of miscellaneous expense allowance claims was not documented consistently, (2) program guidance for some employee relocations could be improved, (3) program guidance for manager and specialist new hires is unclear, and (4) program guidance for temporary living allowances incorrectly references the Federal Travel Regulation.