Federal Reports

The Department of the Treasury, Office of Inspector General participated in the design of the 2014 Council of the Inspectors General on Integrity and Efficiency Guide for Conducting Peer Reviews of Audit Organizations of Federal Offices of Inspector General.

The Office of the Inspector General included a review of Revenue Billing's invoice preparation process for local power companies (LPC) on its annual audit plan because of the significance of this source of revenue to TVA. We audited the invoice preparation process for the period April 1, 2011, through July 31, 2013, to determine if: (1) wholesale invoices were calculated correctly, (2) controls to prevent/detect invoice errors were adequate, and (3) Oracle Utilities had appropriate/adequate information technology general and application level controls.Our audit of the invoice preparation process for LPCs during the period, found: (1) wholesale invoices were calculated correctly, (2) controls to prevent/detect invoice errors were adequate, and (3) Oracle Utilities had appropriate/adequate IT general and application level controls. However, we identified minor issues where changes could strengthen and/or improve the revenue billing process and decrease the likelihood of errors or adjustments.

Presentation

The Office of the Inspector General audited costs billed to the Tennessee Valley Authority (TVA) by Bechtel Power Corporation for services provided by Bartlett Holdings, Inc. Bartlett was to furnish qualified personnel to Bechtel on a seconded basis for the Watts Bar Nuclear Plant Unit 2 construction completion project. Our audit included approximately $121.4 million in payments made by TVA for services provided under the subcontract from January 1, 2010, through September 30, 2013. Our objective was to determine if the costs billed to TVA were in accordance with the provisions of TVA's contract with Bechtel and Bechtel's agreement with Bartlett.In summary, we determined TVA was overbilled $1,547,434 for costs and fees billed under the contract associated with the Bechtel-Bartlett subcontract. The overbilling included (1) $1,484,582 in excessive payroll tax and insurance costs and related fee, (2) $60,287 in ineligible temporary living allowance costs, and (3) $2,565 in excessive labor costs and related fee. We recommended TVA management take action to recover $1,547,434 in overbilled costs from Bechtel and ensure payroll tax and insurance reconciliations are performed on an annual basis. Summary Only

The Office of the Inspector General performed this review as part of its ongoing effort to provide oversight of the Kingston Recovery Project to determine if TVA is meeting its commitments for the Kingston Recovery Project.Our review found TVA has met or is meeting its commitments for the Kingston Recovery Project. Community leaders and regulatory personnel interviewed were satisfied with TVA's actions to meet its commitments.In order to address these commitments, TVA has taken a number of steps. Specifically, TVA has cleaned up the ash spill and restored the area, protected public health and safety, kept the public and stakeholders informed and involved in the process, and helped with the economic development of Roane County. Some community leaders believe TVA has worked to make the area better than it was before the spill.

Our audit sought to determine whether the Ohio Department of Education (the Ohio SEA) accurately and completely reported RTT grant performance data to the Department, ensured that it and its participating LEAs and charter schools would have the capacity to deliver and sustain results described in its RTT grant application after all Federal funds had been expended, and whether they spent RTT funds only on allowable activities and in accordance with program requirements and the Ohio SEA’s approved grant application. We examined two of the six educational topic areas on which the Ohio SEA spent RTT funds—data systems to support instruction and its Great Teachers and Leaders programs—and two of its LEAs—the Lorain City Schools and the Toledo Public Schools. We found that although the Ohio SEA reported all required performance data for the two areas reviewed and ensured that it and the two LEAs had the capacity to deliver and sustain results, it did not always report accurate data and did not ensure that the LEAs spent RTT funds on allowable activities and in accordance with program requirements and the Ohio SEA’s approved grant application.

This report was withdrawn and reissued as OIG-SBLF-14-013R on June 26, 2015, to reflect changes made on pages 2, 3, 5, and 8. The changes correct the number and total dollar amount of State Small Business Credit Initiative obligated or spent loans we reviewed. These corrections do not affect the findings, conclusions, and recommendations as reported.

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

Objective: To determine the appropriateness of continued benefit payments to individuals who, according to California Department of Public Health vital statistics data files, died in California between January 1980 and December 1987.