Semiannual Report

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