Semiannual Report

This is our eleventh semiannual report to Congress. It highlights m1r activities and accomplishments from April 1 to September 30, 1991. TVA is continuing to improve the way it does business. TVA's total quality initiative is well underway, and TVA has embarked on a program to become a clear leader in quality and efficiency, both in the electric utility industry and federal government. We are supporting this process by focusing on our customers' needs and working on issues that are important to TVA management and employees 3S 1111ell as the public. To help TVA operate more effectively, we are continuing to concentrate our audit activities on TVA's contracting process. More specifically, our contract -related work this reporting period accounted for 84 percent of the audit reports we issued. These 41 contracts-related audits identified over $1?.5 million in questioned costs and $19.8million in funds that could be put to better use. Our investigations have also demonstrated their cost- saving 0otentiai. For example, our investigations of fraudulent workers' compensation claims may ultimately save TVA more than $4.9 million in avoided long- term costs. During the last 6 months, we also referred 54 cases to the Department of Justice for possible prosecution. During this same period. federal prosecutors obtained eight convictions based on our investigations In pursuit of our goal to improve TVA, we also identified instances of questionable conduct and needed improvements. However, the shortcomings identified in this report should not be viewed as characteristic of TVA as a whole. To the contrary, many of our conclusions are favorable to TVA management and employees. For example, during this reporting period over half of the allegations we investigated were not substantiated. The dedication of our staff, coupled with the support of Congress, TVA managers, and employees makes possible many of the results documented in this report. We want to continue to make a difference and join others in making TVA the best utility in North America and the most productive and effective agency in the federal government. Sincerely, Norman A. Zigrossi