Federal Reports

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

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