Federal Reports

This Semiannual Report to Congress summarizes the activities of our office for the 6-month period

We compared invoiced vendor/terminal weights to TVA delivered weights for both WCF rail and barge coal deliveries. We found (1) significant variances between vendor/terminal invoiced weights and TVA delivered weights, (2) weights were not recorded for many coal shipments, and (3) delivery weight documentation requirements or retention policy did not exist. Management agreed with our findings and plans to initiate corrective actions. OIG Investigations is reviewing selected trend variances to determine if any warrant further inquiry. Summary Only

We reviewed controls pertaining to program and data backup storage and retrieval for TVA's data centers and the physical controls of an offsite storage facility to determine if controls surrounding the backup storage and retrieval process were adequate to ensure ongoing system operations, and if physical and environmental controls were sufficient to protect the off-site facilities from unauthorized access and environmental hazards. We determined that both the (1) storage and retrieval process controls and (2) environmental controls need improvement. Management agreed with our findings and plans to initiate corrective action. Summary Only

We reviewed $615.5 million TVA paid a contractor from 1999 through 2004 for providing modification and supplemental maintenance services for TVA's fossil plants. We questioned $833,655, including (1) payroll taxes and G&A costs where recovery rates for these costs had been applied to non-salary costs, (2) additional G&A costs where craft employees had been classified as nonmanual craft supervisors, and (3) temporary living allowance payments for employees who may not have been eligible to receive the payments because they did not have adequate certifications and documentary evidence of permanent residences. TVA is (1) planning to recover any overbilled costs and (2) assessing our finding regarding the contractor's classification of craft employees as nonmanual craft supervisors. Summary Only

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