Federal Reports

We performed an audit of the Tennessee Valley Authority’s (TVA) Contract No. 15387 with a company to provide a broad range of engineering, design, and construction management support when and as requested by TVA.  The objective of our audit was to determine if the costs billed to TVA were in accordance with the contract’s terms.  Our audit scope included approximately $33.2 million in costs billed to TVA between January 1, 2024, and March 31, 2025. 

In summary, we determined the company overbilled TVA an estimated $33,595, including (1) 14,079 in unsupported and overbilled travel and temporary living allowance costs, (2) $13,764 in invoice and payment errors, (3) a net $3,632 in performance fee credits, and (4) $2,120 in labor costs.  In addition, we identified opportunities for TVA to improve the administration of the contract.  Specifically, (1) the contract was unclear on how the company was to bill temporary employees it received from staffing agencies and (2) TVA did not evaluate fee for all tasks greater than $50,000, as required by the contract.   

This report contains the results of our assessment of the effectiveness of the Consumer Product Safety Commission’s (CPSC) internal control over the pre-dissemination review (PDR) of scientific information, and the CPSC’s compliance with relevant laws and regulations regarding the PDR of scientific information.  We determined that the CPSC had inadequate policies and procedures for identifying the type of influential information that might require peer review and inadequate internal controls over the PDR process in general.  Current agency management generally concurred with our findings and recommendations and have reported that they have already taken initial corrective action regarding some of the issues raised in our report.