Semiannual Report

This is our sixteenth semiannual report. During this reporting period, we continued to review our operations to ensure they are consistent with TVA's three strategic goals-put employees first, establish environmental leadership, and maintain competitive rates.To achieve these goals, we are working more collaboratively with management while conducting independent and objective audits, investigations, and inspections which support TVA's ongoing improvement initiatives.We are focusing on TVA's contracting processes, major contractors, and key business operations, as well as emphasizing more complex and high impact investigations.During the last 6 months. we issued 31 audit reports which identified $2 million in funds that could be put to better use and $6 million in questioned costs. Our Inspections unit issued 18 reports which identified between $3 and $5 million in potential savings. Our investigators completed more than 100 investigations which generated more than $1 million in benefits and resulted in 9 individuals being referred to prosecutors for criminal prosecution.Based on these positive results and the strong support of TVA employees and management. Congress, and the Board, I anticipate even better results in the future. Rest assured, we will continue to serve as a catalyst for excellence within TVA by objectively and independently pursuing the facts wherever they may lead.On a personal note, this has been an eventful year. On April 1, I became TVA's third Inspector General. While much of the credit for the successes highlighted in this report belongs to my predecessor-William L. Hinshaw, 11-1 am eager to build upon the high morale, innovative atmosphere, open communications, and good working relationships that are his legacy to this office. As always, I and the men and women of this office will continue to work to justify the trust and responsibilities placed upon us. Sincerely, George T. Prosser