Federal Reports

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Geosyntec Consultants, Inc. (Geosyntec) to provide coal combustion residual and dam safety engineering services under Contract No. 13125. Our audit objectives were to determine if (1) costs were billed in accordance with the terms of the contract and (2) tasks were issued using the most cost-efficient pricing methodology. Our audit scope included about $11.3 million in costs billed to TVA from February 6, 2018, through June 27, 2022, of which over 97 percent was billed using T&M compensation terms. In summary, we determined:Geosyntec overbilled TVA $317,583, including (1) $304,690 for an ineligible fee applied to T&M labor rates, (2) $10,576 for labor billing rate errors, and (3) a net $2,317 for overbilled other direct costs. We also found the contract's compensation terms did not reference the contract's rate attachment for equipment and specialized computer applications or specify when the rate attachment was to be used.The use of T&M pricing terms on projects caused TVA to pay about $822,869 more than it would have if cost-reimbursable payment terms had been used for those projects. Additionally, if TVA utilized cost-reimbursable pricing for the remaining contract spend, they could potentially avoid $192,362 in future costs.(Summary Only)

The Office of the Inspector General included an audit of the Tennessee Valley Authority’s (TVA) consulting contracts in our annual audit plan due to significant spend* in this area as well as the conflict of interest risks associated with this type of contract. Our audit objective was to determine if proper controls are in place to identify consulting contracts at TVA and limit the risks of conflicts of interest. We found TVA’s controls for identifying consulting contracts and limiting the risks of conflicts of interest were not operating effectively. In addition, we found the organizational conflict of interest (OCI) and Business Ethics and Compliance Requirements clauses that should be included in all TVA contracts are not consistently incorporated into consulting contracts. We also found no guidance for TVA Supply Chain personnel and suppliers that addressed (1) how to identify actual or potential OCIs or (2) how these OCIs are to be mitigated, resolved, or avoided during contract performance.*Our audit identified 129 consultants that were paid approximately $193.4 million for their services between October 1, 2017, and February 28, 2022.

This report presents a summary of the results of our self-initiated audit assessing mail delivery, customer service, and property conditions at three select delivery units in the New Jersey Region of the Atlantic Area. These delivery units included the Belleville Annex in Belleville, the Kearny Main Post Office (MPO) in Kearny, and the Union Post Office in Union. We judgmentally selected these delivery units based on the number of Stop the- Clock (STC) scans occurring at the delivery unit, rather than at the customer’s point of delivery, and indicators for undelivered mail

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Independent Review of 4003(b) Loan Recipient’s Validation Memo – Ovation Travel Group, Inc.