Federal Reports

This is our tenth semiannual report to Congress. It summarizes our significant activities from October 1, 1990 to March 31, 1991.TVA is continuing to take aggressive steps to improve the way it does business and, since our last report, has reorganized to accomplish its goal of being the very best electric utility in North America and the most productive and effective agency in the federal government. We are sup­ porting this process by working on issues that are important to TVA management and employees and assuring all of our activities support TVA's goals.During this reporting period, we issued 40 audit reports which identified questioned costs of over $6.2 million and $53.5 million in funds that could be put to better use. We are encouraged by TVA management's response to our audit recommendations. Since the office's inception, we have made over 875 audit recommendations and management has made decisions on virtually all of our audit reports.Allegations of fraud continue to constitute a significant percentage of the allegations we investigate. During this six-month period, we completed investigations of workers' compensation fraud that may save TVA more than $6.5 million in avoided long-term disability benefits. We are also assisting TVA's nuclear program by investigating allegations of intimidation and harassment. During this reporting period, we completed 18 investigations of alleged violations of the Energy Reorganization Act and concluded that TVA management did not engage in any misconduct.The cooperation and support of TVA managers and employees make possible many of the results documented in this report. This cooperation and support, coupled with the support of Members of Congress and the public, increase our effectiveness and ability to be a catalyst for positive change at TVA. We continue to draw strength and encouragement from this support and will continue to work to justify this trust.Sincerely,Norman A. Zigrossi

Semiannual Report to Congress

This is our ninth semiannual report to Congress. It summarizes our significant activities from April 1 to September 30, 1990.TVA is continuing to take aggressive steps to improve the way it does business. We are supporting this process by, among other things, working on issues that are important to TVA management and employees and assuring that all of our activities contribute to TVA's goals.Allegations of fraud continue to constitute a significant percentage of the allegations we investigate. While such allegations are not representative of the way TV A or its vendors do business, our investigations have resulted in 6 indictments and 13 convictions during this reporting period. In another area, our continued focus on eliminating workers' compensation fraud may have saved TVA more than $3.4 million over the long term in avoided disability benefits.Our emphasis on pre-award audits-an area in which we provide valuable direct support to TVA management-is continuing to save TVA money and identify opportunities for positive change. We are encouraged by TVA management's response to our audit recommendations. More specifically, since the office's inception, we have made over 750 audit recommendations, and management has made decisions on virtually all of our audit reports.We appreciate the support of TVA management and employees and will continue to work to justify this trust. We want to continue to make a difference and join others in making TVA the very best utility in North America and the most productive and effective agency in the federal government.Sincerely,Norman A. Zigrossi