Federal Reports

This report is Sensitive But Unclassified. To obtain further information, please contact the OIG Office of Counsel at OIGCounsel@oig.treas.gov, (202) 927-0650, or by mail at Office of Treasury Inspector General, 1500 Pennsylvania Avenue, Washington DC 20220.

To assist TVA in preparing for compliance in fiscal year 2007 with Section 404 of the Sarbanes Oxley Act of 2002 (SOX 404), we reviewed the documentation and design of certain financial reporting controls determined by the Controller's organization to be in scope for SOX 404 compliance and reporting. In summary, we reviewed 15 processes and made recommendations to management for improvements and obtained information about management's remedial actions planned or taken. Summary Only

We reviewed $5.1 million of cost billed to TVA by a contractor for subcontracted welding services performed at Browns Ferry Nuclear Plant Unit 1. We determined TVA had been billed $295,067 for (1) per diem payments that exceeded contract per diem limits; (2) ineligible and unsupported per diem, relocation, and equipment costs; and (3) ineligible fees. TVA management informed us they agreed with our audit findings and plan to take action to recover the overbilled amounts from the contractor. Summary Only