Federal Reports

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Day and Zimmerman NPS, Inc. (DZNPS) for the services of qualified craft, noncraft, or staff augmented personnel to perform modification, outage, supplemental maintenance, and technical support work at TVA nuclear generating sites under Contract No. 11515.  Our audit objective was to determine if costs billed to TVA at Sequoyah Nuclear Plant were in compliance with the terms of Contract No. 11515. Our scope included approximately $100 million in costs billed to TVA under Contract No. 11515 (Purchase Contract No. 12567 for Sequoyah Nuclear Plant) from January 1, 2023, to December 31, 2024.

In summary, we determined the costs billed by DZNPS generally complied with the contract except for $56,659 in overbilled costs.  Specifically, we determined DZNPS billed TVA (1) $53,961 in ineligible incentives and (2) $2,698 in ineligible labor costs.

The Consumer Product Safety Improvement Act of 2008 (CPSIA) requires that the Office of Inspector General of the U.S. Consumer Product Safety Commission annually provide to the appropriate congressional committees the findings, conclusions, and recommendations from our reviews and audits performed under subsection 205(a) of the CPSIA as well actions taken with regard to employee complaints under subsection 205(b). The attached report fulfills these requirements for fiscal year 2025.

Review of ARC's cybersecurity and information security program

The OIG conducted a review of Peace Corps operations in Peru from April 2024 through December 2025. Our objective in reviewing the Peace Corps/Peru post was to determine whether its financial and administrative operations were functioning effectively and in compliance with Peace Corps policies and Federal regulations. Following a site visit in June 2024, we found that the post needed to improve its operations in multiple areas. We discussed our initial findings with the Peace Corps/Peru team, who quickly took action to address these findings.
As a result of the post management team’s actions to address our findings, we will not be making additional recommendations. However, we want to emphasize the importance of the areas we have identified and illustrate the proactive actions Peace Corps/Peru has taken, which could benefit other Peace Corps posts in managing their financial and administrative operations.

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