Comments on TVA Treasurer Accounts and Records

GAO commented on the bonding of Tennessee Valley Authority (TVA) agent officers and its internal control procedures concerning the handling of undelivered checks. GAO held that TVA: (1) should increase the bonds of its agent officers if they are routinely advanced funds in excess of their current bonds; (2) should obtain an agreement from its indemnity insurance company guaranteeing that it would be responsible for any losses that may occur between the expiration of an agent's bond and the renewal of that bond or steps should be taken to ensure the prompt renewal of bonds; and (3) should not cancel any undelivered checks that remain in TVA's custody beyond 90 days, since it does not have the authority to do so.