Federal Reports

We reviewed TVA's ethics practices and identified industry best practices which TVA could implement including (1) an ethics committee to oversee the ethics initiative, (2) a communication strategy that ensures all employees have ethics information, (3) requiring all employees to complete ethics training, (4) assessing and rewarding ethical conduct,(5) assessing the extent to which employees accept organizational values and policies, and (6) communicating to all employees that ethics standards are a high priority with top management. We provided this information to the President and Chief Operating Officer for his consideration.

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

We audited $33.6 million of costs billed to TVA by a contractor for the administration of TVA's dental benefit program. We questioned $381,392, including (1) unsupported and duplicate claims, (2) claims paid for ineligible individuals, (3) claim payments that exceeded plan limits, and (4) ineligible orthodontic benefits. TVA is negotiating resolution of the overbillings with the contractor. Summary Only

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

We determined TVA had been overbilled $103,007 (out of $10.9 million that had been billed) for services performed at BFN Unit 1 by a subcontractor. The overbilling included (1) unsupported labor hours, (2) ineligible fees that had been applied to travel and relocation costs, and (3) ineligible jury duty hours. TVA is assessing our recommendations. Summary Only

We determined market value payments (MVPs) to distributors for installed water heaters and heat pumps were generally applied correctly and total invoice amounts were generally accurate, including adjustments to applicable invoices. However, (1) the energy right ? Information System (erIS) does not provide the means to document and track adjustments, (2) some MVPs were paid without complete and/or accurate erIS information, (3) no verification occurred to ensure MVPs were made to distributors as approved by CS&M district specialists, and (4) distributors' noncompliance with certain energy right ? Program process/documentation requirements increased TVA's financial risks. Management agreed with the findings and is taking corrective actions.