Federal Reports

The Office of the Inspector General (OIG) performed procedures that were requested and agreed to by Tennessee Valley Authority (TVA) management solely to assist management in determining the validity of the Winning Performance/Executive Annual Incentive Plan (WP) Measures for fiscal year (FY) ending September 30, 2020. The WP Measures data provided to the OIG and to which the agreed-upon procedures were applied is the responsibility of TVA management. In summary, procedures applied by the OIG found: • The FY 2020 WP goals for the Enterprise measures were properly approved. There was one change form, approved on February 28, 2020, that affected one measure.• The FY 2020 goals (target) for the corporate multiplier measures were properly approved. • The actual FY to-date results for the Enterprise measures agreed with the underlying support, without exception.• The actual FY to-date results for the corporate multiplier measures agreed with the underlying support, without exception.• The FY 2020 WP payout percentage provided by the Benchmarking and Enterprise Performance organization on November 3, 2020, was mathematically accurate and agreed with the OIG’s recalculation.

What We Looked AtWe contracted with the independent public accounting firm KPMG LLP to audit the Department of Transportation's (DOT) consolidated financial statements as of and for the fiscal years ended September 30, 2020, and September 30, 2019, and provide an opinion on those financial statements, to report on internal control over financial reporting, and to report on compliance with laws and other matters. The contract requires the audit to be performed in accordance with U.S. generally accepted Government auditing standards, Office of Management and Budget audit guidance, and the Government Accountability Office's and Council of the Inspectors General on Integrity and Efficiency's Financial Audit Manual. We performed a quality control review of KPMG's report dated November 13, 2020, and related documentation, and inquired of its representatives.What We FoundOur quality control review disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards.RecommendationsDOT concurred with KPMG's seven recommendations. We agree with KPMG's recommendations and are not making any additional recommendations.