Semiannual Report

October 1, 1995

SEMI19

Semiannual Report

This is our nineteenth semiannual report; it describes our office's accomplishments for the six-month period ending September 30. 1995.During this reporting period, we issued 43 audit reports which identified over $4.3 million in questioned costs and$9 million in funds which could be put to better use. Our auditors emphasized contract-related issues while also reviewing topics as diverse as TVA's procurement process, hazardous wastes, computer network security, and the management of a $15 million fund for disadvantaged businesses. They are also working with our investigators and an outside consultant to identify overpayments in TVA's health care system.Our investigations group completed 147 cases and has over 130 cases under active investigation. During this reporting period. they recovered approximately $940,000, and their work resulted in five indictments and seven convictions. An investigation focusing on coal purchases resulted in an indictment for conspiracy, bribery, illegal gratuities, false statements, and obstruction of justice. We also continued our efforts to identify fraudulent temporary living expenses paid to TVA contractors. These cases resulted in avoided costs and realized or potential recoveries of approximately $375,000 for living expenses that were paid based on fraudulent claims.Based on these results and the strong support of TVA employees and management. Congress, and the Board of Directors, I anticipate even more positive results in the future.Our accomplishments reflect the dedication and skill of the men and women who work here. As always, they are striving to serve as a catalyst for excellence at TVA and to justify our office's reputation as an effective and objective factfinder.Sincerely, George T. Prosser

Yes

Yes (agency-wide)

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