Semiannual Report

This report to the TVA Board and to Congress concludes a full year for the newly constituted TVA Board which was sworn in on March 31, 2006. Legislation signed by President Bush in 2004 expanded the Board from three full-time members to nine part-time members with a full-time chief executive officer to run TVA on a day-today basis. As Director Skila Harris recently noted in an address to the TVA OIG, this change amounted to a “reinvention” of the TVA Board. Director Harris noted the differences in her role as one of the previous full-time Board members to her current service with her fellow part-time Board members. She also aptly noted that while most of the new Board members were familiar with independent auditors in private sector corporations, they had not worked before with Inspectors General. As this year concludes a full year of service for the new Board, it seems appropriate to offer some observations about how this new structure has worked thus far. First, I heartily agree with Director Harris’ assessment that the current Board has exhibited a commitment to TVA’s best interests with the level of professionalism they have brought to their work. Secondly, this Board is keenly interested in the OIG providing objective and accurate reports about TVA issues. While it is true, as Director Harris noted, that many of the current Board members have not worked with an Inspector General previously, all of the Board members have demonstrated a respect for the independence of the OIG and concomitantly recognized the service that the OIG can provide to the Board. The OIG is being asked both by the TVA Board and the Chief Executive Officer to assist in assessing complex issues to ultimately make life in the Tennessee Valley better for everyone. Finally, this Board has shown an appreciation for the duty the OIG has to make public findings that identify problems at TVA. With each of these letters that I write to the Board and to Congress, I am sensitive to the self-congratulatory tone they can have. I have been reminded appropriately, however, that our reason for existing is performance. This semiannual report speaks for itself and demonstrates the commitment and professionalism the OIG staff has to making TVA better. Each finding, recommendation, and dollar saved represents the fine efforts of a staff devoted to higher performance. Therefore, it is with great pride that I submit this report to you highlighting the work done by the TVA OIG for the past six months.