Federal Reports

The Office of Inspector General awarded a contract to RSM US, LLP to perform agreed-upon procedures to the Kentucky Commission on Community Volunteerism and Service (KCCVS) grants. KCCVS receives funding from CNCS and the Kentucky General Assembly. KCCVS administered AmeriCorps funds approximating $9.3 million awarded between January 1, 2013 and September 1, 2016 under five grant agreements ($5.4 million under cost-reimbursable awards and $3.9 under fixed-type awards). KCCVS made subgrants to eight organizations (under the cost-reimbursable awards) and was responsible for programmatic and financial oversight. Our AUP review of KCCVS and two of its subgrantees—Northern Kentucky University Research Foundation Kentucky Service Corps and ATEAM/AmeriCorps for Barren County School Board—found questioned costs totaling $851,954 and compliance findings. The majority of the questioned costs result from deficiencies in the procedures used by KCCVS and its subgrantees to conduct the National Service Criminal History Checks for their staff and members. These deficiencies resulted in questioned cost of $758,414. RSM’s testing found the following:Inadequate Program Monitoring• Grantee did not adequately monitor and/or document subgrantees compliance with program requirements• Subgrantees compliance over member matters was lacking and/or not fully documented for end-of-term evaluations, performance interviews, and member service agreements National Service Criminal History Check Findings (NSCHC) • Grantee did not perform NSCHC on grant-funded staff• Subgrantees had incomplete or insufficient member NSCHC and National Sex Offender Public Website checks and supporting documentationMember Service Issues• Members performed unapproved remote service• Members performed service activities that were not in accordance with the subgrant objectivesProgram Income• Subgrantee earned excess program income but did not apply it back to the Federal programSupport for In-Kind Contributions• Subgrantee could not adequately support the in-kind contributions reported for cost share under the grantKCCVS concurred with most of the compliance findings but not the amounts questioned. The Corporation will resolve the reports findings and recommendations.

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At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for civil projects and coal combustion residual program management work at TVA's steam electric power plants. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned $100 million contract.In our opinion, the company's cost proposal was overstated. Specifically, we found the company's proposed costs for a Cumberland Fossil Plant project and proposed unit rates for a Bull Run Fossil Plant project included overstated (1) equipment costs, (2) material costs, (3) workers' compensation insurance costs, and (4) travel costs.We estimated TVA could avoid about $3.75 million on the planned $100 million contract by negotiating appropriate reductions to (1) equipment, materials, workers' compensation, and travel costs in the Cumberland Fossil Plant proposal and (2) unit rates in the Bull Run Fossil Plant proposal.(Summary Only)