Federal Reports

Semiannual Report to Congress

This is our eighth semiannual report to Congress. It summarizes our significant audit and investigative activities from October 1, 1989 to March 31, 1990. This report also reflects the new reporting requirements of the Inspector General Act Amendments of 1988.TVA is taking aggressive steps to constantly improve the way it does business, and we are commit­ ted to assist this process by, among other things, working cooperatively with TVA management and assuring that our activities contribute to TVA's overall goals.During this reporting period, some of our more noteworthy contributions to TVA's efficient operation included (1) our timely completion of pre-award audits, which collectively identified more than$16 million which could be put to better use; (2) our continued identification of workers' compensation fraud; and (3) our investigation of alleged intimidation and harassment in TVA's Nuclear Power program.We are pleased to report that TVA management has been responsive to our audit recommendations and investigative findings and has taken administrative and disciplinary actions and implemented policy and procedures which saved TVA millions of dollars and increased its efficiency.We are committed to helping TVA achieve its overall mission and will continue to do our part to detect and eliminate fraud, waste, and inefficient or unnecessary operations. We are encouraged by TV A management's strong support, responsiveness, and cooperation and believe their actions materially contribute to the success of our activities.Sincerely,Norman A. Zigrossi

Semiannual Report to Congress

This is our seventh semiannual report to Congress. It summarizes our major activities and accomplishments from April 1, 1989 to September 30, 1989.During this reporting period, we issued 31 final audit reports, 131 investigative reports, and 6 project reports to TVA management. These investigations and audits have demonstrated their cost-savings potential. For example, one investigative project--involving over 650 interviews--has resulted in TV A management's withholding over $4.3 million from TVA contractors. Other investigations involving workers' compensation benefits may have saved TVA more than $2.5 million over the long term in avoided disability benefits costs.Our auditors are also working to save TVA money. Their reports have identified almost $4 million in questioned costs and about $27 million in funds that could be put to better use. For example, we conducted five preaward audits which questioned $2.5 million of the contractors' proposed costs. We also completed two audits in support of litigation with TVA contractors which questioned over$3 million of the $5 million in claimed damages. TVA subsequently settled these lawsuits out of court and agreed to pay only $260,000 of the $5 million claimed.In pursuit of our goal to improve TVA, we have also identified instances of questionable conduct and needed improvements. However, the shortcomings identified in this report should not be viewed as characteristic of TVA. To the contrary, a significant number of our conclusions are favorable to TVA management and employees. For example, during this reporting period, approximately two-thirds of the allegations we investigated were not substantiated.The support of TVA managers and employees makes possible many of the results documented in this report, and we are pleased to report this support is strong and continuing to increase. We draw strength and encouragement from this support and will continue to work to justify this trust.Sincerely,Norman A. Zigrossi