CONTRACTOR SELF-REPORTING PROGRAM

The OIG generally will allow a contractor accepted into the Self-Reporting Program the opportunity to conduct an internal investigation which the OIG then will verify in an expedited manner. The steps in this process are as follows.

• Internal Investigation. The contractor determines whether an internal investigation will be conducted. While TVA does not require such an investigation, it generally is in the best interest of the contractor to conduct their own investigation and submit a report describing the results.
• Timely Completion of Report. Contractors choosing to provide the OIG with a written report describing the results of their internal investigation are requested to submit their report within 60 days of the initial disclosure. If the contractor is unable to complete the report within 60 days, the contractor should request an extension of time. The OIG will determine if and on what basis an interim report(s) should be provided.
• Timing of OIG Investigation. As a general rule, TVA OIG does not begin the verification process or conduct its own audit or investigation until it has received the contractor's internal report of investigation. TVA OIG, however, reserves the right to begin its own audit or investigation at any time. Under certain circumstances, the contractor may be asked to discontinue or limit its internal investigation.
• Statute of Limitations. During completion of the contractor's internal investigation, if the government determines that the criminal or civil statute of limitations will expire as to the matter disclosed, or any part thereof, within one year after submission of the contractor's report, the government, at its option, may request the contractor to waive the statute of limitations for a period it deems appropriate. Refusal to waive the statute of limitations will be considered in evaluating the cooperation of the contractor.
• Verification Process. Following receipt of the contractor's internal report, the OIG will begin the verification process. The verification audit and investigation are given sufficiently high priority to allow for its expedited completion. The scope of the verification audit and investigation will focus specifically on the matters disclosed by the contractor and include the quantification of TVA losses. Unrelated fraud allegations developed during the verification process are pursued by the initiation of an independent audit or investigation in accordance with normal procedures unless their relationship to the matter disclosed is so commingled as to prevent their severance. Such developed allegations generally are not treated as part of the voluntary disclosure program.

A contractor may be removed from the program if the contractor ceases to cooperate with the OIG investigation or takes other action inconsistent with the purpose of this program.

For a contractor to qualify for the Self-Reporting Program under which the above incentives could be given, the following conditions would have to be met.

• The OIG had not received or developed information about the activity before it was reported, and the disclosure was not triggered by the contractor's recognition that the underlying facts were about to be reported to the OIG by a third party or otherwise discovered by the government.
• The disclosure was on behalf of the business entity, in contrast to admissions by officials or employees in their personal capacities.
• The contractor took prompt and complete corrective action, including disciplinary action and restitution where appropriate, in response to the matters disclosed.
• The contractor promptly reported the matter after discovery with candor and completeness.
• The contractor provided full, continuing, and complete cooperation to the OIG throughout the investigation, including during any investigation or prosecution of individuals.

A contractor may be removed from the program if the contractor ceases to cooperate with the OIG investigation or takes other action inconsistent with the purpose of this program.

For a contractor to qualify for the Self-Reporting Program under which the above incentives could be given, the following conditions would have to be met.

• Existence of a compliance program prior to commencement of the illegal activity; components of that program should include:
  • Strong written institutional policy against the type of illegal activity which occurred, including enforcement of well-publicized disciplinary standards.
  • Implementation of reasonable safeguards such as training, a fraud assessment program, a hotline, an ombudsman, and a compliance officer.
  • Regular procedures such as compliance and internal audits and investigations to detect, evaluate, and remedy circumstances leading to the illegal activity.
  • Effective mechanism to permit complex or questionable contractual or accounting decisions to be raised to higher managers or those with expertise for review and approval.
• Extent of illegal activities.
• Pervasiveness of illegal activities.
• Level of corporate employee involved in the illegal activity.