Federal Reports

The OIG audited TVA's payments to the Alabama Emergency Management Agency (AEMA) and the Alabama Department of Public Health (ADPH) under two contracts with the State of Alabama. Under the contracts, AEMA and ADPH cooperated in a program to operate and maintain the Radiological Emergency Preparedness (REP) programs for TVA's Browns Ferry and Sequoyah Nuclear plants. Our objective was to determine if the costs paid under the contracts were in compliance with the contract terms. Our audit included $6,601,445 TVA paid to AEMA ($5,666,875) and ADPH ($934,570) for the period October 1, 2007, through September 30, 2013.In summary, we found the current contract's compensation terms should be revised to (1) clarify whether TVA will reimburse costs incurred or pay an annual lump sum to AEMA and ADPH and (2) require AEMA, ADPH, and the five counties, Lauderdale, Lawrence, Limestone, Madison, and Morgan, to provide details to TVA on actual funds spent during a fiscal year in support of the REP program. We also noted the salaries paid to emergency management personnel varied significantly between the five counties.We recommended TVA management take action to revise the contract language to address the two issues noted above. TVA management agreed the contract language needs to be revised in these areas and plans to revise the language accordingly in a new contract with the State of Alabama to be effective October 1, 2014. Summary Only

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