Semiannual Report

This is the second ''Semiannual Report" of the Tennessee Valley Authority Inspector General. It describes the significant audit and investigatory activities of the office during the reporting period from October 1, 1986 to March 31, 1987.During this period, the Office of the Inspector General (OIG) has audited and investigated matters of critical importance to TVA, its employees, the public, and other Governmental officials. The OIG has investigated a number of employee concerns, nearly half of which involved issues raised by employees about TVA 's nuclear program. The OIG has investigated and reported on allegations of harassment, misconduct, and management deficiency. At the request of the Office of Government Ethics, the OIG has also been monitoring the guidelines TVA adopted to help prevent conflicts of interest from occurring in the management of its nuclear program.Our auditors have also evaluated TVA's program for handling employee concerns. They have audited contested claims by contractors seeking millions of dollars from TVA. They are currently reviewing TVA 's policy formulation, nuclear quality assurance, and financial processes. However, one audit remains impaired. The TVA Retirement System (TVARS) Board of Directors continues to object to the OIG conducting a full scope review of the economy, efficiency, and effectiveness of TVARS.The last six months have been a period of learning and growth. OIG managers and employees---many of whom came to TVA from other Federal agencies --have been challenged to learn and appreciate the diversity and scope of TVA 's activities and operations. Other TVA managers and employees have also had an opportunity to learn about the OIG and witness firsthand our effort to make a positive contribution as an independent and objective audit and investigatory organization within TVA.Since the OIG's inception, we have been supported by the TVA Board of Directors, senior TVA managers, TVA employees, members of the Congress, and the public. We draw strength from this continued support and will continue to work to justify the confidence that has been placed in us.Sincerely,Norman A. Zigrossi