Federal Reports

Results of FEC's FY 24 Financial Statement Audit

At the request of the Tennessee Valley Authority’s (TVA) Supply Chain, we examined the cost proposal submitted by a contractor for engineering services in connection with the validation phase of TVA’s Small Modular Reactor and Clinch River Nuclear project. Our examination objective was to determine if the cost proposal was fairly stated for a planned $25 million contract.

In our opinion, the cost proposal was overstated. Specifically, the proposed labor markup and other direct cost rates were overstated compared to recent actual costs. Additionally, (1) the proposed maximum wage ranges were not reflective of contractor’s actual wage ranges and (2) to the draft contract should be revised to clarify language regarding fee and long-term travel. We suggest TVA management (1) negotiate reduced labor markup and other direct cost rates to more accurately reflect the contractor’s recent actual costs, (2) negotiate revisions to the proposed wage ranges to more accurately reflect contractor’s actual wage ranges, and (3) revise the draft contract to clarify TVA’s intent regarding fee and long-term travel.

EAC OIG, through the independent public accounting firm of Allmond & Company, LLC, audited EAC’s financial statements for the fiscal year ended September 30, 2024.

EAC OIG, through the independent public accounting firm of Allmond & Company, LLC, audited EAC's financial statements for fiscal year 2024. The purpose of this letter is to convey information concerning control weaknesses that did not rise to the level of a significant deficiency or material weakness.

Andre Wilburn, a resident of New York, was sentenced in U.S. District Court, Eastern District of New York, on November 14, 2024, to two years of imprisonment, five years of probation, and was ordered to pay restitution in the amount of $468,037 for his participation in an Amtrak ticket fraud scheme. Wilburn and his co-conspirators used stolen credit card information to make unauthorized purchases of Amtrak tickets and then canceled or exchanged those tickets for eVouchers. Subsequently, they sold the fraudulently obtained eVouchers on the internet. Wilburn pleaded guilty on October 24, 2019, to access device fraud and aggravated identity theft for his involvement in the eVoucher scheme.

In addition, Wilburn was sentenced to 30 years of imprisonment and five years of probation on November 14, 2024, for charges of Coercion and Enticement of a minor. Amtrak OIG agents discovered child pornography on Wilburn’s computer during the investigation, including images that showed Wilburn conducting sexual acts on a child. Wilburn pleaded guilty to one count of the charge on August 15, 2022.