Semiannual Report

This semiannual report describes the accomplishments of our office for the six-month period ending March 31, 1998. During this reporting period, we completed 30 audits which identified almost $1.2 million in questioned costs and more than $2.3million in funds that could be used more effectively. Our auditors conducted performance reviews of TVA operations and contract preaward and compliance audits. Contract-related audits included audits of a watershed development agency and a regional procurement assistance group. We also conducted 13 special projects, which identified over $840,000 in savings. Our investigations group completed 74 investigations, substantiating allegations in over 39 percent of the cases we investigated. During this reporting period, our investigations resulted in over $1.5 million in savings and recoveries, two subjects indicted, and six subjects convicted. Further, as a result of our investigations of alleged misconduct, administrative action was taken against 12 individuals. When the Inspector General Act was enacted during 1978, Congress stressed the need for independent oversight to reduce fraud, waste, and abuse affecting the federal government. The environment in which the government operates today is vastly different from that of 1978, with diminished resources and increasingly difficult challenges and demands. Yet, 20 years later, a need remains for Inspectors General to maintain their independence while, as appropriate, working collaboratively with entities inside and outside of their agencies. Through cooperative efforts, we are able to stretch our dollars, draw upon the expertise of others while sharing our experience, and help TVA meet its goals while continuing our independent oversight role. Sincerely, George T. Prosser