Federal Reports

We audited $22.2 million of costs billed by a TVA contractor for providing construction and modification services for TVA generating plant switchyards, substations, electrical transmission system, and power control communication facilities. We found overbillings and overpayments of about $58,000 including (1) overbillings for small tools due primarily to the contractors application of a recovery rate to an incorrect cost base, (2) craft wages and benefits that exceeded amounts provided for by TVA's labor agreements, and (3) miscellaneous overpaid and unsupported costs. The contractor and TVA management agreed with our findings except for the overbilled craft wages and benefits. In response to that issue, management stated TVA labor relations had decided certain variances from the labor agreements would be allowed and most of the variances identified in this review were within the guidelines established by labor relations. Summary Only

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EAC OIG audited $39.2 million in funds received by the South Carolina Election Commission under the Help America Vote Act. The objectives of the audit were to determine whether South Carolina (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 appropriating a 5 percent match for requirements payments, and for maintaining stat expenditures for elections at a level not less than expended in fiscal year 2000. Specifically, we audited claimed expenditures from July 1, 2003, through December 31, 2005, and reviewed controls to assess their adequacy over the expenditure of HAVA funds. We also evaluated compliance with certain administrative requirements for the following activities: accumulating financial information reported to EAC on the Financial Status Reports (standard forms number (269); accounting for property; purchasing goods and services; accounting for salaries; charging indirect costs; and spending by counties. We also determined whether South Carolina had complied with the requirements in HAVA applicable to Section 251 requirements payments for: Establishing and maintaining the election fund; appropriating funds equal to five percent of the amount necessary for carrying out activities financed with Section 251 requirements payments; and sustaining the State's level of expenditures for elections.