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EMD-81-54 1 (1981-02-25)

handle is hein.gao/gaobabbom0001 and id is 1 raw text is: -UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 ENERGY AND MINERALS DIVISION B-202060 FEBRUARY 25, 1981 The Honorable John J. Duncan Ili House of Representatives 114467 Dear Mr. Duncan: Subject: Lost Impacts of Reorganizations at the Tennessee Valley Authori j(EMD-81-54) You requested that we review the operating costs of some organizational units within the Tennessee Valley Authority (TVA) and determine whether reorganizations are resulting in higher administrative costs and higher electric power rates. To respond to your request, we reviewed organi- zational changes made by TVA in fiscal years 1979 and 1980 and --identified and selectively evaluated increases in administrative and general expenses and other operat- ing costs for the Office of the General Manager, the Office of the General Counsel, and the Office of Community Development for fiscal years 1979 and 1980; --assessed the effect of increases on power production costs. TVA made several significant organizational changes in fiscal years 1979 and 1980, including a change in February 1979 from 16 to 9 major offices. The following table shows that administrative and general expenses, as well as the overall operating costs of the three offices tested, also increased in fiscal years 1979 and 1980. Although some of the increases can be related to organizational changes, our tests indicate that they are primarily attributable to higher personnel and related costs resulting from workload growth and from new and expanded functions and programs. (005231)

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