Semiannual Report

This semiannual report describes our office's accomplishments for the six-month period ending March 31, 1996. During this reporting period, we issued 24 audit reports which identified almost $2.6 million in questioned costs and $10.9 million In funds which could be put to better use. our auditors emphasized contract-related Issues while also reviewing topics as diverse as the competitiveness of Tennessee-mined coal, proposed barge unloading facilities, and a chemical cleaning process at a nuclear power plant. In addition, an audit of a contractor's proposal Involving the transmission and power supply program Identified savings of about $7.7 million. our Investigations group completed 117 cases and has 154 cases under active investigation. During this reporting period, they identified potential recoveries of more than $1 million, and their work resulted in 7 Indictments and 12 convictions. Investigations focusing on fraudulent workers' compensation claims resulted in potential long-term savings to TVA of over $4 million. We also continued our efforts to identify fraudulent temporary living expenses paid to TVA contractors. These cases resulted in avoided costs and realized or potential recoveries of approximately $500,000 for living expenses that were paid based on fraudulent or Ineligible claims. We also completed seven special projects, including reviews of the Concerns Resolution Program at a TVA nuclear plant, employee sick leave use, and a relocation services contract. Virtually, all the employees we interviewed indicated they would report nuclear quality and safety Issues to the concerns program, while our report on TVA's $4.5 million relocation services contract described ways TVA could save as much as $850,000. As always, the men and women who work here are striving to serve as a catalyst for excellence at TVA and to justify our office's reputation as an effective and objective factfinder. Sincerely, George T. Prosser