Federal Reports

This is our fourteenth semiannual report and the second since I became Inspector General. This report also marks the near completion of my first year on the jobIt has been a challenging and eventful year. I have repeatedly been impressed by the dedication and skill of the men and women of this office whose efforts are directed toward making TVA the best utility in North America and the most productive and effective agency in the federal government. We share these goals with all TVA managers and employees and with TVA's many friends and supporters in the Tennessee Valley, Congress, and elsewhere.This reporting period saw significant changes within our office. We created a new operational unit­ Inspections-which will increase our coverage of TVA's activities by conducting focused, quick turnaround reviews of TVA processes, programs, and organizational units. In conjunction with staffing Inspections using current Office of the Inspector General personnel, we reduced the number of departments from four to three for each of the other two units-Audits and Investigations.This period also marked the conclusion of a major joint auditor-investigator project-a review of payments to TVA's employee medical insurance administrator. As a result of this review, TVA reached a settlement under which the administrator paid TVA over $8 million.We also issued 33 audit reports, completed 5 inspections, and closed over 200 investigative cases. These activities resulted in 33 individuals being referred to federal and state prosecutors and identification of nearly $160 million in funds that could be put to better use and over $17.5 million in questioned costs.Based on these positive results and the strong support of TVA managers, employees and Congress, I anticipate even better results in the future. As always, our effectiveness depends in large measure on this support and the dedication and effort of our employees. We will continue to work to justify this trust and be faithful stewards of the responsibilities assigned to us. Sincerely, William L. Hinshaw, II

This Semiannual Report to Congress summarizes the activities of our office for the 6-month period

Semiannual Report to Congress

This is our thirteenth semiannual report and the first since I became Inspector General. While we have achieved significant accomplishments during my first six months on the job, much of the credit should be given to Norman A. Zigrossi, the first Inspector General at TVA, for the development of an excellent, dedicated staff. Mr. Zigrossi created the foundation for excellence on which we hope to expand as we grow to meet new needs and expectations.My initial six months also have been made easy by the support given the Office of the Inspector General (OIG) by Congress, TV A management, employees, and customers. In my discussions with members of Congress and their staff, and TVA managers, employees, and customers, I am impressed that we all share the same commitment to make TVA the best utility in North America and the most productive and effective agency in the federal government. I am committed to working toward those goals by building on the foundation established by Mr. Zigrossi for the OIG to act as a catalyst for excellence throughout TVA.Our accomplishments during this reporting period are numerous. We have made significant efforts to identify and eliminate sexual harassment in the TV A workplace. We have identified more than $6.8 million in questioned costs and funds that can be used more efficiently. In addition, we have taken steps to move our auditors into the future with a dynamic strategic plan and increased use of modern technology. To enhance our program delivery to our customers, we have opened satellite OIG offices in Huntsville, Alabama, and Chattanooga, Tennessee. We are working to implement a total quality philosophy within the OIG and to help TVA instill that philosophy throughout the agency. Through these and other efforts, the OIG anticipates enhanced productivity to assist TV A in its quest for continual improvements.I look forward to the continued positive support and excellent working relationship established between the OIG and Congress, TV A managers, and TV A employees. Many of the results documented in this report are due to that support, and we will continue to work to justify the trust placed in us. Sincerely, William L. Hinshaw, II

This Semiannual Report to Congress summarizes the activities of our office for the 6-month period