Federal Reports

We determined that HED appears to be following the policies and procedures set forth in their tool management policy for the distribution and reclamation of tools at the fossil plant sites. HED procedures and key control activities ensure that HED leased tools are adequately tracked and accounted for. However, the computer inventory tracking system does not accurately reflect HED tools available for lease, and documentation related to the disposal of tools and inventory adjustments could be improved. Management agreed with our findings and has taken or plans to take appropriate corrective actions.

Determined the (1) Fiscal Year (FY) 2005 LLRW estimate appeared reasonable when unforeseen incurred LLRW disposal costs were taken into account and (2) the processes, methodology, and assumptions used to develop the FY 2006 disposal estimates were consistent with those used in developing the FY 2005 estimates. In addition, we verified that the LLRW expense and liability accounts were adjusted quarterly in accordance with TVA Nuclear Business Practice 263. However, we noted (1) the process and methodology for developing LLRW estimates is not documented and there is a potential lack of cross-training and (2) no physical inventory is currently done at the plants to ensure proper accounting for all LLRW. Management agreed with our findings and has taken or plans to take appropriate corrective actions.

We determined that while TVA's June 2002 proposed COOP appears to address major COOP requirements as stated in Federal Preparedness Circular 65 and provides guidance for the preparation of site-, activity-, or business-unit specific plans, TVA's COOP lacks proper implementation and support. Management agreed with our findings and has taken or plans to take appropriate corrective actions.

This report presents the results of our self-initiated review of U.S. Postal Service actions to safeguard employees from Hurricane Katrina. Our objective was to determine whether employees were safeguarded prior to the landfall of Katrina.

We determined that approximately 95 percent of the items selected for review from items in BLN's construction inventory records pertaining to 213 commodities were actually warehoused at BLN. We also noted that the sales price of the inventory will likely be less than the original purchase cost due to the condition of the materials. This report was issued to management for informational purposes only.