Federal Reports

Demand Response (DR) programs offer incentives for electric utility customers to reduce their energy use during peak demand which reduces the need for generation and helps offset market purchases during times of peak cost.  TVA is expanding its portfolio and plans to invest more than $1.5 billion in its Energy Efficiency and DR programs from fiscal year (FY) 2024 through FY 2028.  Due to the risk of TVA’s investment not meeting the anticipated reduction in energy needs, we performed an evaluation to determine if TVA's investment in DR programs was delivering intended benefits. 

While the Demand Management (DM) organization increased the DR curtailment capacity, they did not meet the targets for FY 2024 or FY 2025. The curtailment capacity achieved was 27 percent less than planned in FY 2024 and 23 percent less than planned in FY 2025.  We identified two contributing causes for not achieving the DR program targets for curtailment capacity:  (1) the planned increases in DR capacity were set before some new and redesigned programs were completed, which resulted in inaccurate estimates; and (2) there were challenges with implementation and adoption of new and redesigned DR programs that impacted achievement of the goal.  Not achieving the planned curtailment capacity could result in increased cost to TVA.  Planned curtailment capacity is included in TVA’s strategy to meet demand.  If DM does not achieve its goals, TVA could be required to meet the demand with purchased power.  Since DR programs are mainly used when demand and therefore prices are the highest, purchasing the necessary capacity can be costly.

This report presents the results of our audit of selected financial activities and accounting records at U.S. Postal Service Washington, D.C., Headquarters; the Accounting Service Centers in Eagan, MN, and St. Louis, MO; and the St. Louis Accounting Service Center Satellite Office in San Mateo, CA, for the fiscal year ending September 30, 2025. 

Background

The Postal Reorganization Act of 1970 requires annual audits of the U.S. Postal Service’s financial statements. The Postal Accountability and Enhancement Act of 2006 requires the Postal Service to comply with Section 404 of the Sarbanes-Oxley Act. This section requires the Postal Service to report the scope and adequacy of its internal control structure and procedures and assess its effectiveness.

The U.S. Postal Service Board of Governors contracted with an independent public accounting (IPA) firm to express opinions on the Postal Service’s fiscal year 2025 financial statements and internal controls over financial reporting (an integrated audit). The IPA firm maintained overall responsibility for testing and reviewing significant Postal Service accounts, processes, and internal controls.

Why We Did This Report

This audit was performed in accordance with the Chief Financial Officers Act of 1990, as amended by the Accountability of Tax Dollars Act of 2002, which requires the U.S. Chemical Safety and Hazard Investigation Board to prepare, and the Office of Inspector General to audit, the agency’s financial statements each year. The U.S. Environmental Protection Agency OIG, which also serves as the OIG for the CSB, contracted with Allmond & Company LLC to perform the audit of the CSB’s fiscal year 2025 financial statements.
 

Summary of Findings

Allmond & Company rendered an unmodified opinion on the CSB’s fiscal year 2025 financial statements, meaning that the statements were fairly presented and free of material misstatements.