IT WAS SUBMITTED TO THE CONGRESS TO FULFILL THE REPORTING REQUIREMENTS OF THE INSPECTOR GENERAL ACT OF 1978, PUBLIC LAW 95-452. AS REQUIRED BY THE LEGISLATION, THE REPORT INCLUDES A DESCRIPTION OF SIGNIFICANT INSTANCES OR PATTERNS OF FRAUD, WASTE, OR ABUSE DISCLOSED BY THE AUDIT, INSPECTION, AND INVESTIGATIVE UNITS DURING THE REPORTING PERIOD, ALONG WITH RECOMMENDATIONS FOR CORRECTIVE ACTION; A SUMMARY OF MATTERS REFERRED FOR PROSECUTION AND THE RESULTS OF SUCH PROSECUTIONS; AND A STATISTICAL SUMMARY, BY CATEGORIES OF SUBJECT MATTER, OF AUDIT AND INSPECTION REPORTS COMPLETED DURING THE REPORTING PERIOD. THE FOLLOWING SUPPLEMENTARY INFORMATION IS INCLUDED: A STATISTICAL SUMMARY OF ALL INSTANCES OF POTENTIAL FRAUD FOUND BY AUDIT, INTERNAL REVIEW, AND INSPECTION ORGANIZATIONS; THE CURRENT STATUS OR DISPOSITION OF INCIDENTS OF FRAUD REPORTED IN THE INITIAL SEMIANNUAL REPORT TO CONGRESS; DESCRIPTIONS OF THE MORE SIGNIFICANT AUDIT AND INSPECTION FINDINGS THAT SHOW WAYS FOR MANAGEMENT AND OPERATING OFFICIALS TO IMPROVE THE ECONOMY, EFFICIENCY, OR EFFECTIVENESS OF OPERATIONS; AND A SUMMARY OF PROGRESS MADE ON NEW INITIATIVES TO COMBAT FRAUD AND WASTE. A SUMMARY OF REVIEWS MADE BY AUDIT, INTERNAL REVIEW, INSPECTION AND INVESTIGATIVE ORGANIZATIONS IS ALSO PRESENTED. DETAILS OF SPECIFIC INSTANCES OF FRAUD AND WASTE ARE PRESENTED IN REPORT EXHIBITS. (AUTHOR ABSTRACT MODIFIED--RCB)