A report filed by the Tennessee Valley Authority's Office of Inspector General Thursday states TVA's reasons for buying two new fixed-wing aircraft were not justified.
TVA paid $17.7 million for the FWA or fixed-wing aircraft, including $11,211,762 for a Cessna Citation XLS+ jet and $6,457,675 for a King Air 350i turboprop.
The audit, which included flight legs by both aircraft between July 1, 2015 and Feb. 28, 2017, was scheduled to find out three things: if TVA's decision to purchase the aircraft was reasonable compared to aircraft used by other utilities, how the cost and use of the aircraft compared to that of other utilities and industry standards, and whether the use of the aircraft is consistent with applicable federal laws and regulations.
It found the TVA's justifications to purchase the aircraft were not supported by analytical cost, safety, reliability, or time efficiency documentation.
"In addition, the two justifications given were not consistent with how the aircraft have been used since the aircraft were purchased," the report states.
The report also found that the TVA did not comply with federal regulations as well as TVA policies and procedures regarding use of the aircraft.
"Some aircraft usage appeared to be for the personal preference and convenience of TVA's Chief Executive Officer, including flights to/from his second personal residence that is located outside the TVA service area."
The CEO allegedly flew to 19 airports outside the “Valley”, 27 in “Valley”.
The Office of Inspector General made ten recommendations for improvement to TVA management including compliance with law and record keeping.
To read the full audit, click here.
TVA has reviewed and responded to the audit report and issued the following statement on how to improve documentation and record keeping:
“Safely fulfilling our mission across an 80-thousand square mile service area, as well as inspecting TVA facilities and engaging stakeholders outside that area, while maintaining fiscal responsibility requires us to appropriately document the business justifications of our resources, including aircraft,” said Mike Skaggs, TVA Executive Vice President of Operations. “Safety and cost were the key factors used to make the correct decisions on obtaining the aircraft, and we appreciate the OIG’s recommendations that will allow us to better document those decisions."
TVA said its flight scheduling and recordkeeping system contributed to a number of the OIG’s questions and concerns.
"We are currently procuring a new software system to address this shortcoming, and are improving other processes and procedures consistent with the OIG’s recommendations," TVA said in a statement.