Federal Reports

EAC OIG through the independent public accounting firm of Clifton Gunderson LLP, audited $71.9 million in funds received by the Commonwealth of Virginia State Board of Elections under the Help America Vote Act. The objectives of the audit were to determine whether the Commonwealth of Virginia: 1) used payments authorized by Sections 101, 102 and 251 of the Help America Vote Act (HAVA) in accordance with HAVA and applicable requirements; 2) Accurately and properly accounted for property purchased with HAVA payments and for program income; 3) met HAVA requirements for Section 251 funds for an election fund, for a matching contribution, and for maintenance of a basic level of state outlays.

Gold Cards are issued to TVA Board members, officers, and other designated employees for travel, entertainment, hospitality, and incidental miscellaneous expenses and these charges are directly billed to TVA. Our review included Gold Card purchases made from October 1, 2004, to August 28, 2006. Of the 272 cardholders with charges during this period, 10 accounted for about 34 percent of all charges. In summary, we found:VISA Gold Executive Expense Cards (Gold Card) are generally being used in accordance with TVA policies and procedures.Policies addressing Gold Card use could be improved.Gold Card expenditures were for various purposes, including travel, meals, hospitality/gifts, economic development, and employee meetings. We noted instances where documented justifications (i.e., purpose, risk to TVA, and benefit to TVA) did not appear adequate to show the potential benefits warranted the expenditures. Management generally agreed with our findings and indicated that modifications would be made to policies and forms to strengthen controls governing Gold Card usage.

EAC OIG, through the independent public accounting firm of Clifton Gunderson LLP, audited $67 million in funds received by the State of Indiana Election Division under the Help America Vote Act. The objectives of the audit were to determine whether the State of Indiana: 1) Used payments authorized by Sections 101, 102, and 251 of the Help America Vote Act (HAVA) in accordance with HAVA and applicable requirements; 2) Accurately and properly accounted for property purchased with HAVA payments and for program income; 3) Met HAVA requirements for Section 251 funds for an election fund, for a matching contribution, and for maintenance of a base level of state outlays.

EAC OIG audited $137.8 million in funds received by the Ohio Secretary of State under the Help America Vote Act. The objectives of the audit were to determine whether the Office (1) expended HAVA payments in accordance with the Act and related administrative requirements and (2) complied with the HAVA requirements for replacing punch card or lever voting machines, for establishing an election fund, for obtaining a 5 percent match of the funds for activities financed with Section 251 requirements payments from the State, and for maintaining State expenditures for elections at a level not less than expended in fiscal year 2000.

We audited $37.4 million of costs billed by a TVA contractor for providing specialty fire protection systems and determined the contractor had billed TVA an estimated $408,100 of excessive or unsupported costs. Specifically, the contractor billed TVA (1)an estimated $257,400 of extra labor costs because it paid certain local craft employees wage and benefit rates that exceeded rates included in TVA's labor agreements, (2)$87,700 of labor adjustments that were either not in accordance with the contract or were duplicates of adjustments that had already been made, and (3)$63,000 of miscellaneous overpaid and unsupported labor and travel costs. We recommended TVA (1)revise its contract to include specific criteria for paying wage and benefit rates that exceed rates included in TVA's labor agreements, (2)determine if any of the previously billed costs should be recovered, and (3)recover or avoid paying the remaining overbilled costs. Summary Only

To obtain further information, please contact the OIG Office of Counsel at OIGCounsel@oig.treas.gov, (202) 927-0650, or by mail at Office of Treasury Inspector General, 1500 Pennsylvania Avenue, Washington DC 20220.

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 performed a review to determine whether River Systems Operation & Environment (RSO&E) permitting policies and procedures (1) ensure reviews and approvals are conducted consistently and in accordance with applicable requirements and (2) are being followed. Our review included Reservoir Land Records (RSLR) established in RSO&E's Automated Land Information System during the period October 1, 2004, through July 31, 2006. In summary, we found:RSO&E has implemented permitting guidelines which, if followed, should ensure (1) that TVA regulations (18 C.F.R. Part 1304) pertaining to Section 26a of the TVA Act are followed and (2) consistent review and approval of Section 26a applications. However, documentation requirements supporting permitting decisions could be improved.For the 101 RSLR we reviewed, 37 had varying noncompliance issues and an additional 15 had RSLR data entry issues. Management agreed with our findings and has taken or plans to take appropriate corrective action. Some of the corrective actions being considered include (1) revising guidelines to clarify proper record management and Shoreline Management Policy waiver documentation, (2) providing refresher training on processing Section 26a applications, and (3) enhancing the Section 26a electronic data system.