[Excerpt] This semiannual report covers the activities of the Department of Labor's Office of the Inspector General for the period April 1, 1986 through September 30, 1986. During this semiannual period, audits and investigations continued efforts to improve program management and operations and to detect fraud and abuse within the Department of Labor. Audit initiatives resulted in numerous economy and efficiency findings and recommendations regarding Department Agency operations. Meanwhile, significant investigative cases in FECA, Unemployment Insurance, and CETA contributed to 289 successful prosecutions and $10,339,480 from recoveries, restitutions, settlements, and cost efficiencies. Labor Racketeering continued initiatives to strengthen cooperation with other federal agencies and to upgrade financial investigative capabilities.