Federal Reports

Full-time annual employees are eligible to participate in TVA's Tuition Reimbursement Program (TRP). The use of the program has grown significantly since fiscal year (FY) 2003. Payments to employees increased from about $339,000 in FY 2003 to over $985,000 in FY2006. The objective of our review was to assess compliance with TRP policies and procedures. In summary, we identified opportunities for improvement in TRP program controls. Specifically, we noted:Instances of non-compliance with Business Practice18, "Tuition Reimbursement," related to (1) required documentation for program approvals, (2) evidence of satisfactory completion, (3) approval for cost increases, (4) reimbursements for non-allowable expenses, and (5) the requirement to drop inactive participants.Opportunities to improve controls over the program including (1) requiring all participants to sign service agreements, (2) follow-up on satisfactory course completion when tuition reimbursement is approved prior to completion of coursework, (3) ensuring maximum reimbursements are not exceeded, and (4) clarifying acceptable coursework and active participation. Management generally agreed with our recommendations, and we concur with TVA management's planned actions.

EAC OIG through the independent public accounting firm of Clifton Gunderson LLP, audited $71.9 million in funds received by the Commonwealth of Virginia State Board of Elections under the Help America Vote Act. The objectives of the audit were to determine whether the Commonwealth of Virginia: 1) used payments authorized by Sections 101, 102 and 251 of the Help America Vote Act (HAVA) in accordance with HAVA and applicable requirements; 2) Accurately and properly accounted for property purchased with HAVA payments and for program income; 3) met HAVA requirements for Section 251 funds for an election fund, for a matching contribution, and for maintenance of a basic level of state outlays.

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.

EAC OIG, through the independent public accounting firm of Clifton Gunderson LLP, audited $67 million in funds received by the State of Indiana Election Division under the Help America Vote Act. The objectives of the audit were to determine whether the State of Indiana: 1) Used payments authorized by Sections 101, 102, and 251 of the Help America Vote Act (HAVA) in accordance with HAVA and applicable requirements; 2) Accurately and properly accounted for property purchased with HAVA payments and for program income; 3) Met HAVA requirements for Section 251 funds for an election fund, for a matching contribution, and for maintenance of a base level of state outlays.

EAC OIG audited $137.8 million in funds received by the Ohio Secretary of State under the Help America Vote Act. The objectives of the audit were to determine whether the Office (1) expended HAVA payments in accordance with the Act and related administrative requirements and (2) complied with the HAVA requirements for replacing punch card or lever voting machines, for establishing an election fund, for obtaining a 5 percent match of the funds for activities financed with Section 251 requirements payments from the State, and for maintaining State expenditures for elections at a level not less than expended in fiscal year 2000.

We audited $37.4 million of costs billed by a TVA contractor for providing specialty fire protection systems and determined the contractor had billed TVA an estimated $408,100 of excessive or unsupported costs. Specifically, the contractor billed TVA (1)an estimated $257,400 of extra labor costs because it paid certain local craft employees wage and benefit rates that exceeded rates included in TVA's labor agreements, (2)$87,700 of labor adjustments that were either not in accordance with the contract or were duplicates of adjustments that had already been made, and (3)$63,000 of miscellaneous overpaid and unsupported labor and travel costs. We recommended TVA (1)revise its contract to include specific criteria for paying wage and benefit rates that exceed rates included in TVA's labor agreements, (2)determine if any of the previously billed costs should be recovered, and (3)recover or avoid paying the remaining overbilled costs. Summary Only

To obtain further information, please contact the OIG Office of Counsel at OIGCounsel@oig.treas.gov, (202) 927-0650, or by mail at Office of Treasury Inspector General, 1500 Pennsylvania Avenue, Washington DC 20220.

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