Semiannual Report

This report to the TVA Board and to Congress concludes a full year for the newly constituted TVA Boardwhich was sworn in on March 31, 2006. Legislation signed by President Bush in 2004 expanded the Board fromthree full-time members to nine part-time members with a full-time chief executive officer to run TVA on a day-todaybasis. As Director Skila Harris recently noted in an address to the TVA OIG, this change amounted to a“reinvention” of the TVA Board. Director Harris noted the differences in her role as one of the previous full-timeBoard members to her current service with her fellow part-time Board members. She also aptly noted that whilemost of the new Board members were familiar with independent auditors in private sector corporations, they hadnot worked before with Inspectors General.As this year concludes a full year of service for the new Board, it seems appropriate to offer someobservations about how this new structure has worked thus far. First, I heartily agree with Director Harris’assessment that the current Board has exhibited a commitment to TVA’s best interests with the level ofprofessionalism they have brought to their work. Secondly, this Board is keenly interested in the OIG providingobjective and accurate reports about TVA issues. While it is true, as Director Harris noted, that many of thecurrent Board members have not worked with an Inspector General previously, all of the Board members havedemonstrated a respect for the independence of the OIG and concomitantly recognized the service that the OIGcan provide to the Board. The OIG is being asked both by the TVA Board and the Chief Executive Officer toassist in assessing complex issues to ultimately make life in the Tennessee Valley better for everyone. Finally, thisBoard has shown an appreciation for the duty the OIG has to make public findings that identify problems at TVA.With each of these letters that I write to the Board and to Congress, I am sensitive to theself-congratulatory tone they can have. I have been reminded appropriately, however, that our reason for existingis performance. This semiannual report speaks for itself and demonstrates the commitment and professionalismthe OIG staff has to making TVA better. Each finding, recommendation, and dollar saved represents the fineefforts of a staff devoted to higher performance.Therefore, it is with great pride that I submit this report to you highlighting the work done by the TVAOIG for the past six months.