Semiannual Report

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