Federal Reports

TVA's helicopter fleet consists of seven helicopters that TVA owns and self-insures. Based on our review of FlightWatch1 data and discussions with the Manager of Helicopter Services, TVA's helicopters are used for a variety of missions, including:Inspecting TVA's 17,000 circuit miles of transmission lines in a seven-state region.Aerial photography, laser mapping, and river and environmental surveys. Construction support. Clean air testing. Right-of-way inspections. Transportation of TVA executives. Economic development activities, such as aerial tours of industrial megasites. The aircraft can also be deployed for certain emergency contingencies such as floods, tornadoes, and ice storms.The objective of our review was to assess (1) the procedures and control activities used to ensure the TVA helicopter fleet is used for valid business purposes and (2) the operational use of the fleet. Our review included policies, procedures, and laws/regulations applicable to TVA helicopters and covered the period of October 1, 2004, through September 30, 2005.We determined that it appears that the TVA Helicopter Fleet was used for valid business purposes. However, there were no documented guidelines identifying proper uses of the helicopter fleet and approval levels needed to obtain flight services. Additionally, there has been no cost benefit study of helicopter fleet usage to ensure it is being used effectively. Management agreed with our findings and has taken or plans to take appropriate corrective actions.

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

We determined Procurement has made Purchasing Card Program changes to address control weaknesses identified in our previous report on the program; however, travel and travel-related expenses are still being charged to the purchasing cards. We also noted (1) weaknesses in supervisory review and approval of purchasing card statements, (2) disallowed and questionable purchasing card transactions, (3) purchasing cards issued without required documentation, and (4) TVA policies and on-line training modules that do not clearly and consistently define acceptable purchasing card use for hospitality expenses. Procurement has stated that subsequent to our review period, actions were taken to address weaknesses in supervisory review and approval of purchasing card statements. Procurement agreed with all but three recommendations and we concur with TVA management's planned actions. However, we noted increased risk associated with not addressing the three recommendations.

We determined (1) not all purchasers of hospitality had completed the hospitality training module, (2) some purchases were not charged to the correct cost classification, (3) TVA's Hospitality Policy did not require use of TVA Form 17901, Pre-approval of TVA Hospitality Expenditure, (4) TVA's Hospitality Policy did not address use of a TVA purchasing card for purchasing hospitality, and (5) TVA's pre-approval form did not require assessment of reputation risk. In addition, we found TVA's hospitality spending had decreased by 70% since our 2004 review. Management generally agreed with our findings and is taking appropriate corrective action.