Federal Reports

The auditors found that the Department’s FY 2014 Closing Package Financial Statements were presented in accordance with generally accepted accounting principles. The report noted the issues identified in the Department’s and FSA’s financial statements and the need for the Department and FSA to mitigate the persistent information technology control deficiencies and their noncompliance with the timing requirements of the Digital Accountability and Transparency Act of 2014.

This audit report, required by the Accountability of Tax Dollars Act of 2002, presented an unmodified (clean) opinion on the Federal Trade Commission (FTC)'s FY 2014 financial statements. The OIG contracted with the independent certified public accounting firm of Brown & Company CPAs, PLLC (Brown & Company) to audit the financial statements of the FTC as of September 30, 2014 and 2013, and for the years then ended. In its audit, Brown & Company found (1) the financial statements are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles; (2) no material weaknesses in the FTC's internal control over financial reporting; and (3) no reportable noncompliance with applicable provisions of laws and regulations. The OIG commended the FTC for the noteworthy accomplishment of attaining an unmodified opinion for the 18th consecutive year.

As part of our annual audit plan, we performed an interim audit of costs billed to the Tennessee Valley Authority (TVA) by Bechtel Power Corporation for providing engineering, procurement, construction, and related services in support of the completion of TVA's Watts Bar Nuclear Plant Unit 2. Our audit included about$520 million in noncraft costs billed to TVA from January 1, 2010, to September 30, 2013, (craft costs will be audited separately). Our objective was to determine if Bechtel billed TVA in accordance with the contract terms and conditions. In summary, we determined Bechtel overbilled TVA an estimated $2,066,495, including:$923,231 in labor and related costs, which included (1) $696,841 in ineligible labor hours and rates billed, (2) $228,490 in ineligible home office labor costs,(3) $24,044 in excessive payroll additive costs, and (4) a net credit of $26,144 in other labor costs.$938,928 in ineligible or unsupported relocation, permanent and temporary assignment, and travel costs, which included (1) $520,370 in relocation costs,(2) $372,048 in permanent and temporary assignment monthly allowances,(3) $23,932 in other temporary assignment costs, and (4) $22,578 in travel costs.$204,336 in ineligible or unsupported affiliate company and subcontractor costs. Summary Only