Federal Reports

In 2016, TVA implemented an individual performance multiplier (IPM) that allows managers to adjust employees’ annual Short-Term Incentive lump-sum payouts based on performance. Since alignment between the multiplier and performance are important to the success of the initiative, we scheduled an evaluation of TVA’s IPM. Our objective was to determine if IPMs were in alignment with performance ratings. We reviewed 5,235 adjustable payouts made in fiscal years 2017 and 2018, and found most of the IPM adjustments were in alignment with overall performance ratings. However, 59 adjustments made in fiscal years 2017 and 2018 fell outside the recommended ranges established in the IPM guideline. We determined some of these happened because the IPM process uses rounded overall performance ratings instead of actual calculated performance ratings.

The Mainframe Applications Re-platform Initiative at the Railroad Retirement Board is Progressing in Accordance with Established Project Goals

The Legacy Systems Modernization Initiatives at the Railroad Retirement Board are Progressing Effectively - Abstract

National Government Services, Inc., did not claim allowable Medicare postretirement benefit costs of $3 million through its Incurred Cost Proposals for calendar years 2007 through 2014.

National Government Services, Inc., claimed unallowable Medicare nonqualified costs of $971,820 through its Incurred Cost Proposals for calendar years 2007 through 2014.

We revised some of our calculations of the Medicare segment pension costs for this final report. We incorporated the ICP audit adjustments because the ICP audit report from the independent accounting firms has been issued in final. The ICP auditors incorporated our pension adjustments from our prior audit for the period of 2007 through 2009. We followed the ICP auditors’ methodology and incorporated the pension adjustments from the ICP audit findings into our own calculations. Therefore, we maintain that our finding and recommendation, as revised, are valid.