Open Recommendations

We recommend the Executive Vice President, Chief Financial and Strategy Officer, in conjunction with the Vice President, Financial Operations and Performance, ensure economic analyses are (1) performed for all applicable projects and (2) considered in decision making.

We recommend the Executive Vice President, Chief Financial and Strategy Officer, in conjunction with the Vice President, Financial Operations and Performance, provide economic analyses and all known costs to the Tennessee Valley Authority Board when presenting projects for approval.

We recommend the Vice President, Financial Operations and Performance, implement a reverse capital flex list for use in the event of a funding shortfall.

We recommend the Vice President, Financial Operations and Performance, evaluate the control gap to identify solutions to prevent the execution of purchase orders for projects that do not have all required approvals.

Track facilities supply chain personnel vacancies as part of the quality control reviews and take appropriate action.

Develop guidelines that define when facility supply chain management problems require additional interventions and then routinely identify them for network director action.

Ensure facility and network directors work with the Procurement and Logistics Office on a plan to identify resources and milestones to resolve identified supply chain management problems for identified facilities.

Direct the program office to develop a process to provide resources when needed to help networks and facilities resolve persistent supply chain management deficiencies, including those identified in this report.

Continue Procurement and Logistics Office efforts to automate tracking that will accurately capture and monitor all quality control review results, corrective action plans, and implementation of those plans.

Update the Procurement and Logistics Office audits of the quality control program to apply risk-based sampling, evaluate action plan sufficiency and implementation, and use the results to continuously improve quality control review guidance and requirements.

Ensure VSC develops and implements written policies and procedures related to program performance data management, including collecting, documenting, and reporting performance data, and distribute these among the relevant officials and staff.

Ensure VSC implements an adequate accounting system that accurately accounts for federal funds awarded to them, including the ability to account for subaward funds separately.

Remedy $1,940,223 in unsupported costs for subawards 2018/2019-VF-05-32886 and 2021-VF-05-40235.

Ensure remaining subaward funds are accounted for in compliance with the VOCA Guidelines and related costs are allowable and adequately supported.

Ensure VSC develops and implements written policies and procedures to comply with the DOJ Grants Financial Guide and federal award requirements, including financial reporting and maintaining adequate supporting documentation for expenditures

Develop and implement a process designed to enhance the accuracy and timeliness of Contracting Officers reporting contract actions into FPDS-NG.

Coordinate with HOPE to establish written subrecipient monitoring policies and procedures to include: (1) evaluating a subrecipient's risk of non-compliance with award conditions to help ensure the appropriate design of subrecipient monitoring plans, and (2) reviewing subrecipient Single Audit Reports to ensure that any related deficiencies found in those audits are resolved.

Coordinate with HOPE to establish written subrecipient monitoring policies and procedures to include: (1) evaluating a subrecipient's risk of non-compliance with award conditions to help ensure
the appropriate design of subrecipient monitoring plans, and (2) reviewing subrecipient Single Audit Reports to ensure that any related deficiencies found in those audits are resolved.

Remedy the $3,800 in unsupported direct assistance questioned costs.

Coordinate with HOPE to enhance its written policies and procedures to help ensure direct assistance costs are adequately supported.

Conduct refresher training for the PCs regarding documenting and maintaining asset management system records in accordance with NCUA policy and procedures.

Update the accountable property policy to implement a process for the PMO to complete a periodic review of the IT asset inventory to validate that the inventory is documented and maintained in accordance with NCUA policy and procedures.

Complete the PRISM risk assessment review on an annual basis and document the results.

Ensure that the annual risk assessment reviews for all third-party NCUA services are completed.

Document and implement a process to track and complete supply chain risk assessments for all third-party systems and service providers.