Semiannual Report

This is our fourth Semiannual Report and it marks the second full year of the Office of the Inspector General's (OIG) operations. The report describes our major activities from October 1, 1987 to March31. 1988.This has been an eventful six months and a productive two years.As of the date of this report, we have closed nearly 90 percent of the employee concerns that. fell within our investigative jurisdiction and were reported to the Quality Technology Company. In addition, since the OIG's inception, TVA management has agreed-with 80 percent of our audit recommendations. To date, these management actions have resulted in more than $126 million in avoided costs.There were also significant accomplishments this reporting period. An OIG-recommended change in TVA's accounting procedures resulted in a $92 million increase in TVA's revenues. On the investigative side,we closed over 450 cases•, referred 74 matters to Federal or Stateprosecutors, and issued over 200 investigative reports. In addition, significant criminal investigations are underway that already have resulted in the recent indictment of over 25 TVA employees.These accomplishments demonstrate the OIG is a catalyst for change within TVA and is striving to promote integrity and efficiency in TVA's programs. We believe our activities will continue to benefit TVA management and employees, the ratepayers, and the taxpayers­ which is what the Board of Directors intended when it established the OIG as an independent ·office within TVA.Throughout the last two years, the TVA Board of Directors, TVA managers and employees, Members of Congress, and the public have strongly supported the OIG. We continue to draw strength and encouragement from this support and will continue to work to justify this trust.Sincerely,Norman A. Zigrossi