Federal Reports

The Office of the Inspector General (OIG) performed the procedures, which were requested and agreed to by Tennessee Valley Authority (TVA) management solely to assist management in determining the validity of the Winning Performance/Executive Annual Incentive Plan (WP) Measures for fiscal year (FY) ending September 30, 2021. TVA management is responsible for the WP Measures data provided. In summary, procedures applied by the OIG found: • The FY 2021 WP goals for the Enterprise measures were properly approved. There was one change form that affected one measure.• The FY 2021 goals (target) for the corporate multiplier measures were properly approved. • The actual FY to-date results for the Enterprise measures agreed with the underlying support, without exception.• The actual FY to-date results for the corporate multiplier measures agreed with the underlying support, without exception.• The FY 2021 WP payout percentage provided by the Benchmarking and Enterprise Performance organization on November 5, 2021, was mathematically accurate and agreed with the Office of the Inspector General’s recalculation.

The OIG contracted with the independent certified public accounting firm, Allmond & Company, LLC (Allmond), to audit the Commission’s financial statements and related footnotes. Allmond found the financial statements present fairly, in all material respects, the financial position of the Commission as of September 30, 2021 and 2020, and its net costs, changes in net position, and budgetary resources for the fiscal year then ended in accordance with generally accepted accounting principles. Allmond also found one material weakness and four significant deficiencies in internal control over financial reporting, and one reportable noncompliance with applicable provisions of laws, regulations, and contracts tested. The report offers 23 recommendations to help the Commission improve its controls over financial management operations and reporting.