Federal Reports

We performed an inspection to assess the reasonableness of travel reimbursements where employees were (1)in travel status for an extended period of time and/or (2)received significant reimbursements. The scope of the inspection included all reimbursements made to employees during FYs 1999-2006. We found many TVA employees who received significant travel reimbursements and traveled to the same location for extended periods in multiple years. We identified the top 100 travelers for each year reviewed based on the number of days spent in travel status in a single location during FYs 1999-2006 and requested justifications from management for the extensive travel. In summary, we found for the 8 years of travel reimbursements reviewed, there were 434 TVA employees identified as a top 100 traveler in a single year for the years reviewed. During this period, the 434 individuals received reimbursements totaling over $9.6million. While the organizations provided explanations, no documentation was provided to support that consideration was given to changing any official duty stations. The lack of specific justification for extended travel for several individuals over several years to one location raises questions about whether there may be untapped cost saving opportunities. Management generally agreed with our findings and recommendations and is taking or plans to take corrective action.

We conducted a review to determine whether the trust funds administered by River Operations and the Office of Environment and Research were administered in accordance with terms of the agreements and applicable laws and regulations. Our scope included all trust funds with balances or activity from October 2005-January 2007. In summary, we found:No policies or procedures applicable to the creation or administration of trust funds existed; andThe majority of the trust funds were basically inactive; trust funds were established with appropriated funds; and the trust funds received limited oversight.Management generally agreed with our findings and recommendations and is taking or plans to take corrective action.

EAC OIG, through the independent public accounting firm of Clifton Gunderson LLP, audited $38.1 million in funds received by the Kentucky State Board of Elections under the Help America Vote Act. The objectives of the audit were to determine whether the state Board of Elections (1) used payments authorized by Sections 101, 102, and 251 of HAVA in accordance with HAVA and applicable requirements; (2) Accurately and properly accounted for property purchased with HAVA payments and for program income; and (3) met HAVA requirements for Section 251 funds for an election fund, for a matching contribution, and for maintenance of a base level of state outlays.

TVA's successful effort to restart Unit 1 at Browns Ferry Nuclear Plant (BFN) provides an opportunity to transfer knowledge to future generation projects to (1) improve project oversight, (2) improve project efficiency and effectiveness, (3) generate cost savings opportunities, and/or (4) reduce TVA's risk of fraud, waste, and abuse. OIG reviews of the BFN Unit 1 Restart project and TVA management's evaluations of the restart activities identified opportunities for improvement in future generation projects. Specifically: The OIG conducted reviews throughout the course of the project focusing on (1) payment of overheads and direct expenses, (2) craft time labor reporting, (3) equipment and tools controls, (4) inventory management and accounting, (5) the restart incentive program, and (6) contract compliance.TVA management identified areas they felt were "hard spots" during the project and developed key project control activities to avoid these issues in the future. Some "hard spots" identified related to (1) staffing and training, (2) self-assessments, (3) development of a comprehensive plan, (4) turnover, and (5) material and equipment availability.

We reviewed control activities and the scale certification process applicable to TVA coal shipments at Calvert City Terminal (CCT). We found the terminal had controls and processes in place for the receiving, blending, weighing, and loading of the coal it handles for TVA. The terminal also appeared to have adhered to the scale certification requirements prescribed by the TVA contract. However, we:Identified one barge shipment where terminal documentation showed the barge being sent to the TVA Colbert Fossil Plant (COF). According to TVA Fuel Supply (FS) personnel, the barge sank in August 2006, en route to COF. As of August10, 2007, FS had not recovered the loss.Found discrepancies with some barge and train shipments that apparently resulted from keying errors on the part of TVA and CCT personnel. This included six train shipments recorded in FuelWorx as received at the wrong terminal. Management generally agreed with our findings and recommendations and is taking or plans to take corrective action.