Federal Reports

We reviewed the physical and environmental controls at two of TVA's data centers to determine the adequacy of (1) physical controls to ensure only authorized access to system resources and (2) environmental controls to appropriately protect computing assets from hazards. We determined both data centers' physical access controls and one data center's environmental controls need improvement. TVA management agreed with the findings and initiated or plans to initiate corrective actions needed to implement our recommendations. Summary Only

We reviewed TVA's progress in complying with federal security requirements. We found that TVA's security program structure is adequate to meet federal requirements, and TVA is making substantial progress in correcting significant security deficiencies. Summary Only

We determined TVA was overbilled $56,023 (out of $5.3 million that had been billed) for services performed at BFN Unit 1 by a subcontractor. The overbilling occurred because the subcontractor used a craft labor classification that was not provided for by its subcontract. We also determined the subcontractor had not adjusted its workers compensation insurance costs to actual for the premium years ended July 1, 2003, and July 1, 2004, although its subcontract agreement required it. TVA is assessing our recommendations. Summary Only

We found no instance where TVA's external auditor's reviews of TVA interim financial information for the third quarter of FY 2005 did not comply with Government Auditing Standards in all material respects, including required communications to appropriate parties.