Federal Reports

We determined:The PRIS backup failure was due to (1)human error and (2)the lack of proper controls which would have detected PRIS was no longer on the master backup schedule which resulted in not having backups performed for PRIS.The PRIS server failure was due to hardware failures and the impact was magnified by human error.The Performance Review & Development data was not adequately secured when regenerated in recovery efforts.TVA management agreed with the findings and has taken or is taking corrective action.

We audited $249million of costs for parts and services for Browns Ferry Nuclear Plant paid by TVA to a contractor from January1, 2000, through May31, 2006. We found the contractor overbilled TVA about $960,000 because the contractor had not always included discounts on prices it billed TVA as required by the contract. TVA management is working with the contractor to determine what impact, if any, a previous verbal agreement regarding the contract discount structure may have on the amount owed to TVA. Summary Only

We audited $58.5million of costs billed to TVA by a contractor for staff augmentation support services during FYs 2005 and 2006. We determined TVA was overbilled about $540,000 for labor costs due to duplicate billings, overpayments of labor hours, and use of incorrect wage rates. We also found the contractor had not maintained documentation to support approximately $340,000 of travel expenses billed to TVA. The contractor and TVA management agreed with our findings, and TVA management is planning to (1)recover the overbilled amount and (2)implement a requirement for the contractor to maintain documentation of travel expenses that are billed to TVA. Summary Only

EAC OIG conducted this audit to determine whether (1) travel was performed in accordance with the Federal Travel Regulation, (2) travel cards were properly controlled and used for only official purposes, and (3) travelers paid their travel card bills in a timely manner.