According to Tennessee Valley Authority (TVA) Standard Programs and Processes 26.003, Community Contributions, TVA helps enable a better quality of life in the communities it serves (1) through its work in energy, the environment, and economic development and (2) by supporting educational and community goals. Much of TVA’s giving activity supporting educational and community goals is administered under formally established programs, including the Community Contributions and Community Care Fund programs. In addition, individual TVA organizations may initiate giving-related expenditures outside these programs at their discretion. During calendar years 2022 and 2023, TVA had approximately $30.5 million in expenditures identified as contributions, donations, and grants in TVA’s general ledger.
Due to large dollar expenditures made during calendar years 2022 and 2023, we performed an audit of TVA’s expenditures for contributions, donations, and grants. Our audit objective was to determine if the expenditures were made in compliance with TVA policies and procedures.
We determined Community Contributions program transactions were not consistently reviewed and approved in accordance with TVA Standard Programs and Processes 26.003 requirements. We also determined there is no guidance addressing administration of the Community Care Fund program and contribution-related expenditures made by individual TVA organizations outside TVA’s formal giving programs. In addition, we found instances where unrelated general expenditures made outside of TVA’s formal giving programs were misclassified as contribution-related expenditures in the general ledger.
