Federal Reports

Please see the link below for a video discussing the results of this review.

The OIG audited the Area Access Manager (AAM) application to determine the adequacy of: (1) data processing and application controls to ensure data integrity and reliability, (2) logical security controls to ensure only authorized access to system resources and protection of sensitive information, and (3) automated controls for granting physical access to sensitive TVA locations. In summary, we determined logical security controls were generally operating effectively and controls around granting physical access to sensitive TVA locations were operating in accordance with TVA policy. However, we found: (1) electronic copies of completed TVA form 15589, TVA Facility Access Request, which included the requester's social security number, were not stored encrypted, as required by TVA Standard Programs and Processes; (2) the level of access for three system administrators appeared to be greater than what was needed to perform their jobs; and (3) documentation of periodic reviews of the AAM was not maintained. (Note: We found AAM performs limited data processing and does not update any other systems. Therefore, we did not test data processing and application controls.) TVA management (1) corrected the system administrators' level of access during the audit, (2) agreed with our recommendations to secure the electronic copies of completed TVA form 15589 and to maintain documentation of periodic reviews, and (3) has begun or is planning to take action to implement the recommendations. Summary Only

At the request of the Tennessee Valley Authority's (TVA) Supply Chain and Watts Bar Nuclear Plant Unit 2 (WBN2) construction management, we reviewed a contractor's potential rework and damages liability in association with work performed at WBN2. Our objective was to determine the reasonableness of TVA's methodology for identifying and estimating the contractor's rework and damages liability. In summary, we found TVA's methodology could be improved and recommended TVA management take action to improve its processes for identifying and estimating the contractor's rework and damages liability. TVA management agreed with our findings and is taking action to address the recommendations. Summary Only

At the request of the TVA Supply Chain, we reviewed a cost proposal submitted for a planned $30 million contract to provide hydro modernization, unit rehabilitation, and functional support services in support of TVA's hydro facilities. The objective of our review was to determine if the cost proposal was fairly stated. In summary, except for excessive costs included in the proposed markup rates and labor and burden rates, nothing came to our attention that indicated the cost proposal was not fairly stated. We concluded TVA could avoid up to $2.11 million on the planned $30 million contract by negotiating reductions to the labor and burden rates and certain markup rates that correspond to the proposing company's actual 2014 costs and expected future costs. Summary Only

The OIG performed this audit to determine Enterprise Architecture and Planning's (EAP) current effectiveness and actions completed in the implementation of management action plans in response to a previous audit, and TVA IT's 1,000 Days to Success initiative (IT1K). The TVA OIG also assessed the design of the management action plans and IT1K program as well as identified gaps related to any outcomes not met.We found while EAP's operational maturity has improved, actual IT project delivery has been inconsistent. A review of a judgmentally selected sample of recently completed and ongoing projects identified various possible causes for this inconsistency, including:IT resource engagement, including level of involvement and resource availability.Level of IT senior leadership team's project engagement.Project Manager (PM) effectiveness, including the level of authority to acquire resources and the impact of PM turnover on projects.Inconsistent business engagement in IT projects.Inconsistent project processes, including the identification, documentation, testing, and tracking of business and functional requirements. Summary Only

The Internet of Things refers to interconnecting networks of physical objects embedded with digital sensors that can collect, transmit, and act upon a wide variety of data. The Office of Inspector General, in conjunction with IBM, examined how this technology could be applied to create an Internet of Postal Things (IoPT) that could increase efficiency, lower costs, generate revenue, and improve customer service.

The purpose of the investigation was to examine an Antideficiency Act (ADA) violation by the EAC. The investigation determined that EAC officials violated the ADA when they approved a disbursement of about $2.2 million from an expired 2008 appropriations account. The Department of Justice declined to open a criminal investigation of the matter.

Please see the link below for a video discussing the results of this review.

SIGTARP's Quarterly Report to Congress

This report contains classified information that is exempt from disclosure under the Freedom of Information Act. 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.