This semiannual report of the Department of Education's Office of Inspector General summarizes the office's activities in auditing and investigating abuses in the use of federal monies in education and in improving the management of federally funded programs. The audits for a 6-month period ending September 30, 1983, are graphed and significant audits highlighted; the resolution of audit reports and the total recovered funds are also noted. A survey of investigations tallies the numbers of cases, indictments, convictions, and restitutions involving Department of Education programs and recounts the results of significant investigations. Major management improvement efforts, which identified problem areas and recommended changes in wasteful or fraudulent procedures, are reviewed for their contributions to the department's internal efficiency. The appendixes include a guideline for the public on eliminating fraud and waste in federal education programs and a 6-month compilation of the audits on Education Department programs. (JW)