Federal Reports

According to Tennessee Valley Authority (TVA) Standard Programs and Processes 26.003, Community Contributions, TVA helps enable a better quality of life in the communities it serves (1) through its work in energy, the environment, and economic development and (2) by supporting educational and community goals. Much of TVA’s giving activity supporting educational and community goals is administered under formally established programs, including the Community Contributions and Community Care Fund programs. In addition, individual TVA organizations may initiate giving-related expenditures outside these programs at their discretion. During calendar years 2022 and 2023, TVA had approximately $30.5 million in expenditures identified as contributions, donations, and grants in TVA’s general ledger.

Due to large dollar expenditures made during calendar years 2022 and 2023, we performed an audit of TVA’s expenditures for contributions, donations, and grants. Our audit objective was to determine if the expenditures were made in compliance with TVA policies and procedures.

We determined Community Contributions program transactions were not consistently reviewed and approved in accordance with TVA Standard Programs and Processes 26.003 requirements. We also determined there is no guidance addressing administration of the Community Care Fund program and contribution-related expenditures made by individual TVA organizations outside TVA’s formal giving programs. In addition, we found instances where unrelated general expenditures made outside of TVA’s formal giving programs were misclassified as contribution-related expenditures in the general ledger.

We audited the Federal Housing Administration (FHA), Office of Asset Sales’ U.S. Department of Housing and Urban Development (HUD)‐Held Vacant Loan Sales (HVLS) program. The audit objective was to assess the extent to which HUD tracks and measures its loan sales’ program success and its achievement of mission outcomes as they relate to the Affordable Housing Action Plan. HUD did not have adequate information to measure its loan sales’ program success as it relates to the affordable housing initiatives. HUD does not require third-party purchasers to report their identifying information, nor does it require them to report their final use of purchased properties, resulting in incomplete program outcome data. There were inconsistencies in the sales outcome reports provided by purchasers to HUD; and purchasers across HVLS sales did not provide sufficient documentation to support their reported uses of the mortgage loans and underlying properties. Postsale reporting is critical because HUD uses it to ensure that purchasers comply with the program requirements. However, because of inadequate measurement information, we were not able to determine HUD’s success rate in achieving mission objectives. With better postsale reporting, HUD can better assess whether the HVLS program outcomes are furthering HUD’s goals to promote affordable housing, expand opportunities for home ownership, and revitalize communities.

This report summarizes EPA Office of Inspector General work and accomplishments from April 1, 2024, through September 30, 2024.