Federal Reports

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.

We assessed the extent COO organizations were complying with the work management requirements outlined in COO SPP 7.0, COO Work Management. The work management process includes the "establishment of Program elements required to manage work in a safe, reliable, environmentally conscious, and efficient manner." In general, organizations were complying with the requirement to complete a work package. However, (1) most work package documentation was not retained, (2) inconsistencies exist in the development and use of work packages, and (3) multiple computer applications contribute to inconsistencies. The COO agreed with our findings and plans to initiate corrective actions. Summary Only