Review of TVA VISA Gold Executive Expense Card

Gold Cards are issued to TVA Board members, officers, and other designated employees for travel, entertainment, hospitality, and incidental miscellaneous expenses and these charges are directly billed to TVA. Our review included Gold Card purchases made from October 1, 2004, to August 28, 2006. Of the 272 cardholders with charges during this period, 10 accounted for about 34 percent of all charges. In summary, we found:VISA Gold Executive Expense Cards (Gold Card) are generally being used in accordance with TVA policies and procedures.Policies addressing Gold Card use could be improved.Gold Card expenditures were for various purposes, including travel, meals, hospitality/gifts, economic development, and employee meetings. We noted instances where documented justifications (i.e., purpose, risk to TVA, and benefit to TVA) did not appear adequate to show the potential benefits warranted the expenditures. Management generally agreed with our findings and indicated that modifications would be made to policies and forms to strengthen controls governing Gold Card usage.