MESSAGE FROM THE INSPECTOR GENERAL
I am pleased to present our report for the period April 1, 2016, to September 30, 2016. The role of the Office of the Inspector General (OIG) in identifying potential risks to the Tennessee Valley Authority's (TVA) ability to achieve its mission of providing reliable power at affordable rates, environmental stewardship, and economic development to the Tennessee Valley is imperative to the agency's success.
In the past, the capacity for a business to accomplish its objectives was talked about in terms of goal-setting, strategic execution, and milestone measurement as if the objectives could somehow achieve themselves. But, with evolving insight, we now recognize the behaviors of the more than 10,000 people in TVA's workforce define its effectiveness as much as anything else. This realization is reflected in the highlights of our work throughout this report.
In this semiannual period, our audit, evaluation, and investigative activities identified nearly $15 million in funds TVA could put to better use, questioned costs, recoveries and savings as well as opportunities for TVA to improve its programs and operations. Some of the highlights include:
- An audit finding that improvements are needed in incorporating fraud risk management practices, as identified by the United States (U.S.) Government Accountability Office (GAO), in TVA's organizational culture and structure.
- Four Information Technology (IT) audits including the final report in a series of IT organizational effectiveness audits, a review of controls related to cyber security at a fossil plant as well as controls related to network architecture at a hydro plant, and controls for access to the corporate wireless network.
- Three evaluations to determine whether the work environments for the Nuclear Oversight group and operators at Sequoyah and Browns Ferry nuclear plants were conducive to raising concerns without fear of retaliation as well as four evaluations related to the proposed sale of the Bellefonte Nuclear Plant site, delivered cost of fuel calculations for coal and gas, firearms and ammunition at coal plants, and actions taken to address risks related to ductwork at coal plants.
- Organizational Effectiveness reviews of TVA's Coal and Gas Services, Environmental Permitting and Compliance, Environmental Operations, and Enterprise Project Management Office as well as follow-up reviews of TVA's Cumberland Fossil Plant and Corporate Accounting.
- Investigative results including three indictments, two informations filed, three convictions, and a qui tam resulting in a $2,078,208 payment to TVA.
As always, we appreciate the ability to work with the TVA Board and management in mutual support of TVA's ability to achieve its mission of service for the 9 million people of the Tennessee Valley in increasingly efficient and effective ways.