TVA OIG - Office of the Inspector General

Jill Matthews became the Acting Inspector General on September 21, 2017. Ms. Matthews has been with the TVA OIG since 1986. From 1986 to 2010, she served in various roles ranging from Auditor to Deputy Assistant Inspector General of Audits. In 2010 she assumed the role of Assistant Inspector General of Administration and in 2014, was named the Deputy Inspector General.

Ms. Matthews graduated from Roane State Community College in Harriman, Tennessee in 1984 with an A.S. degree and from the University of Tennessee in December 1985 with a B.S. degree in Business Administration. Ms. Matthews is a Certified Public Accountant and Certified Information Systems Auditor. In 2002 she was named one of the Distinguished Women of TVA.

TVA OIG - Office of the Inspector General

MESSAGE FROM THE ACTING INSPECTOR GENERAL JILL MATTHEWS

Iam pleased to present our report for the period April 1, 2017, to September 30, 2017. In late September 2017, Richard W. Moore resigned as the Inspector General (IG) to become the United States (U.S.) Attorney for the Southern District of Alabama. IG Moore was our first presidentially-appointed IG at Tennessee Valley Authority (TVA) and served for more than 14 years. In this semiannual report, you will find a final message from him as well as a look back on his tenure with our office. We appreciate IG Moore's dedicated service and leadership to our office and the IG community and his passion for striving to make TVA better for the people of the Tennessee Valley. His contributions to our office, the IG community, and TVA will be felt for years to come.

In this semiannual period, our audit, evaluation, and investigative activities identified approximately $26.8 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. Below are highlights of our work this period.

  • A special project performed by a consultant (1) assessed whether TVA's analyses of its April 22, 2016, response to the Nuclear Regulatory Commission Chilled Work Environment Letter were thorough and adequate and (2) reviewed the history of nuclear safety culture issues at TVA for the past several years. The consultant identified concerns with the analyses and long-term sustainability of TVA's planned corrective actions.
  • An evaluation of the calculation for recovery of TVA's largest expense-fuel and purchased power costs-determined TVA did not calculate part of the adjustment in accordance with the TVA Board of Directors (Board)-approved methodology.
  • An evaluation of TVA's transmission system preventive maintenance program could not determine if preventive maintenance had been performed in accordance with established schedules because of data inaccuracies.
  • Two preaward contract examinations of cost proposals submitted by companies to provide civil projects and coal combustion residual program management services identified $17.7 million in potential savings opportunities for TVA.
  • Two compliance audits of contracts with expenditures totaling $43.5 million identified potential overbillings of $4.7 million.
  • An audit of contracts for wind power found TVA's decision to enter into wind generation contracts has not proven to be in TVA's economic interest.
  • An audit of TVA's Internet-accessible Web sites identified opportunities to improve security.
  • Organizational effectiveness evaluations of seven TVA business units identified strengths such as organizational alignment and management support and risks such as management behaviors and performance management, and four follow-up reviews found TVA was generally taking actions to address risks identified in previous evaluations.
  • An investigation led to the federal conviction of an individual for conspiring with others to engage in the development or production of special nuclear material in the People's Republic of China without permission from the U.S. Secretary of Energy.
  • An investigation led to the supervisor of a local utility pleading guilty to embezzlement exceeding $2.9 million.

By the end of this congressional session, two of TVA's Board members, V. Lynn Evans and Dr. Marilyn Brown, will end their distinguished service to TVA. Director Evans has served on the TVA Board since 2013 in various capacities including Chair of the Audit, Risk, and Regulation Committee and as the Chair of the TVA Board. Dr. Brown has been appointed twice to the Board, once in 2010 and in 2013. She has served almost continually on the Nuclear Oversight Committee since it was chartered, serving as the Chair for the last several years. On behalf of the OIG, I want to extend our appreciation for their support of the OIG and service to the people of the Tennessee Valley.

On a personal note, I appreciate the opportunity to serve as the Acting Inspector General, and our office looks forward to continuing our work to provide an independent perspective on risks and improvement opportunities at TVA.

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