Federal Reports

Semiannual Report to Congress

Winning Performance is the process TVA uses to manage its performance. It is a single, integrated process that includes strategic planning, operational planning and budgeting, performance monitoring and reporting, and employee development and compensation. We performed procedures agreed-upon by management to assist in determining the validity of the fiscal year 2005 payout. In summary we found (1) changes to the FY 2005 goals were properly approved with one exception which will not impact the payouts, (2) actual year-to-date inputs for each indicator agreed with the respective reason for improvement sheet with one exception which will not impact the payouts, (3) actual inputs for the eight TVA-wide metrics agreed with the underlying support provided by the Strategic Business Units, and (4) the payout percentages were mathematically accurate after noted exceptions were corrected. Summary Only

The enclosed report presents the results of the audit of the Commission’s financial statements for the fiscal year

The Office of the Inspector General was requested by the Vice President, BFN Unit 1 Restart, to review tool management associated with the restart project. TVA is providing all necessary tools for the BFN Unit 1 Restart. Work is primarily being completed by engineering and modification contractors, 1,500 of which are craft laborers who have tool needs/requirements. We assessed the processes and key control activities used to track and account for tools purchased for the BFN Unit 1 Restart and on-going BFN operations. We found a significant lack of tool accountability/tracking resulting from (1) noncompliance with TVA Nuclear Business Practice 226, Tool and Equipment Accountability, prescribed processes and key control activities and (2) other process/control weaknesses. Management agreed with our findings and plans to initiate corrective actions.

We reviewed a contractor's material cost adjustments and profit sharing calculations and determined the contractor (1) had understated the material cost adjustment due TVA by $5,933 and (2) could not provide verifiable documentation of the material weights used in its catalyst production. TVA management agreed with our findings and is taking action to recover the amount owed to TVA. Additionally, since the contractor could not provide verifiable documentation of its material weights, TVA is negotiating a contract change to limit future cost adjustments to the contractor's preferred customer price. Summary Only