To amend the Inspector General Act of 1978 to increase the efficiency and accountability of Offices of Inspector General within Federal departments, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Inspector General Act Amendments of 
2001''.

SEC. 2. PROHIBITION OF CASH BONUS OR AWARDS.

    Section 3 of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended by adding at the end the following:
    ``(e) An Inspector General (as defined under section 8G(a)(6) or 
11(3)) may not receive any cash award or cash bonus, including any cash 
award under chapter 45 of title 5, United States Code.''.

SEC. 3. EXTERNAL REVIEWS.

    (a) In General.--Section 4 of the Inspector General Act of 1978 (5 
U.S.C. App.) is amended by adding at the end the following:
    ``(e)(1)(A) Not less than every 3 years an external review shall be 
conducted of each Office (as defined under section 8G(a)(5) or 11(4)).
    ``(B) The Inspector General of each Office as defined under section 
8G(a)(5) or 11(4) shall arrange with the General Accounting Office or 
an appropriate private entity for the conduct of the review.
    ``(C) If an Inspector General contracts with a private entity for a 
review under this subsection, the private entity shall be contracted in 
accordance with section 303 of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253).
    ``(2) At a minimum, an external review under this subsection shall 
evaluate whether the Office properly manages and controls--
            ``(A) contracts awarded by the Office, including a 
        determination of whether--
                    ``(i) procedures used to procure contracts are in 
                accordance with applicable laws and regulations; and
                    ``(ii) costs incurred are reasonable and allowable 
                under the terms of each contract;
            ``(B) appropriated funds, including a determination of 
        whether training and travel funds are expended in accordance 
        with applicable laws and regulations; and
            ``(C) personnel actions, including a determination of 
        whether hiring and promotion practices used and performance 
        awards issued are in accordance with applicable laws and 
        regulations.
    ``(3) Not later than 30 calendar days after the completion of an 
external review, a report of the results shall be submitted to the head 
of the establishment and simultaneously to the appropriate committees 
or subcommittees of the Congress.''.
    (b) Technical and Conforming Amendment.--The section heading for 
section 4 of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended to read as follows:

    ``duties and responsibilities; report of criminal violations to 
                 attorney general; external reviews''.

SEC. 4. ANNUAL REPORTS.

    (a) In General.--Section 5(a) of the Inspector General Act of 1978 
(5 U.S.C. App.) is amended--
            (1) by striking the first sentence and inserting ``Each 
        Inspector General shall, not later than October 31 of each 
        year, prepare an annual report summarizing the activities and 
        accomplishments of the Office during the immediately preceding 
        12-month period ending September 30.'';
            (2) by striking paragraphs (1) through (12) and inserting 
        the following:
            ``(1) a summary of the program areas within the 
        establishment identified by the Inspector General as high risk 
        because of vulnerabilities to waste, fraud, abuse, and 
        mismanagement;
            ``(2) a description of the most significant audits, 
        investigations (administrative, civil, and criminal), and 
        evaluations and inspections completed during the reporting 
        period;
            ``(3) a summary of each report made to the head of the 
        establishment under section 6(b)(2) during the reporting 
        period;
            ``(4) a table showing--
                    ``(A)(i) the total number of final audit reports 
                issued by the Office of Inspector General; and
                    ``(ii) the financial benefits associated with the 
                reports segregated by category, such as budget 
                reductions, costs avoided, questioned costs, and 
                revenue enhancements; and
                    ``(B) corrective actions taken and program 
                improvements made during the reporting period in 
                response to either an Office of Inspector General audit 
                finding or recommendation (excluding any recommendation 
                included under subparagraph (A) with respect to such 
                corrective actions);
            ``(5) a table showing--
                    ``(A) the judicial and administrative actions 
                associated with investigations conducted by the Office 
                of Inspector General;
                    ``(B) the number of--
                            ``(i) cases referred for criminal 
                        prosecution, civil remedies, or administrative 
                        actions;
                            ``(ii) cases presented but declined for 
                        prosecution, segregated by criminal and civil;
                            ``(iii) cases accepted for prosecution 
                        (both Federal and State), segregated by 
                        criminal and civil;
                            ``(iv) defendants indicted;
                            ``(v) defendants convicted;
                            ``(vi) defendants acquitted or charges 
                        dismissed after indictment;
                            ``(vii) defendants sentenced to terms of 
                        imprisonment;
                            ``(viii) defendants sentenced to terms of 
                        probation; and
                            ``(ix) suspensions, disbarments, 
                        exclusions, sanctions, or some other similar 
                        administrative action; and
                    ``(C) the total amount of fines, restitutions, and 
                recoveries;
            ``(6) a description of the organization and management 
        structure of the Office of Inspector General, including--
                    ``(A) an organization chart showing the major 
                components of the Office;
                    ``(B) a statistical table showing the number of 
                authorized full-time equivalent positions segregated by 
                component and by headquarters and field office; and
                    ``(C) the amount of funding received in prior and 
                current fiscal years;
            ``(7) a table showing--
                    ``(A) the number of contracts, and associated 
                dollar value, awarded on a noncompetitive basis by the 
                Office of Inspector General; and
                    ``(B) with respect to any individual contract 
                valued over $100,000, awarded on a noncompetitive 
                basis--
                            ``(i) the name of the contractor;
                            ``(ii) statement of work;
                            ``(iii) the time period of the contract; 
                        and
                            ``(iv) the dollar amount of the contract;
            ``(8)(A) a summary of each audit report issued in previous 
        reporting periods for which no management decision has been 
        made by the end of the reporting period (including the date and 
        title of each such report);
            ``(B) an explanation of the reasons such management 
        decision has not been made; and
            ``(C) a statement concerning the desired timetable for 
        achieving a management decision on each such report;'';
            (3) by redesignating paragraph (13) as paragraph (9);
            (4) in paragraph (9) (as redesignated by paragraph (3) of 
        this subsection)--
                    (A) by striking ``section 05(b)'' and inserting 
                ``section 804(b)''; and
                    (B) by striking the period and inserting ``; and''; 
                and
            (5) by adding at the end the following new paragraph:
            ``(10) any other information that the Inspector General 
        determines appropriate to include in the annual report.''.
    (b) Semiannual Reports.--Section 5 of the Inspector General Act of 
1978 (5 U.S.C. App.) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following:
    ``(f)(1) Subject to paragraph (4), in addition to any annual report 
required to be furnished and transmitted under subsection (b), an 
Inspector General shall prepare and submit a report described under 
paragraph (2) to--
            ``(A) the applicable congressional committee, if the 
        chairman or ranking member of a congressional committee with 
        appropriate jurisdiction submits a written request to such 
        Inspector General; or
            ``(B) to the Comptroller General of the United States if 
        the Comptroller General submits a written request to such 
        Inspector General.
    ``(2) A report referred to under paragraph (1) shall--
            ``(A) contain the information required for an annual report 
        under subsection (a); and
            ``(B) summarize the activities of the Office during the 6-
        month period ending on March 31 of the calendar year following 
        the date on which the request is made.
    ``(3) A report under this subsection shall be submitted on April 30 
of the calendar year following the date on which the request is made.
    ``(4) An Inspector General shall not be required to submit a report 
under this subsection if the written request for such report is 
submitted to the Inspector General after November 30 of the calendar 
year preceding the date on which the report is otherwise required to be 
submitted to a congressional committee or the Comptroller General.''.
    (c) Submission of Other Reports.--Nothing in the amendments made by 
this section shall be construed to limit an Inspector General from 
submitting any report containing in whole or part information required 
in an annual or semiannual report furnished and transmitted under 
section 5 of the Inspector General Act of 1978 (5 U.S.C. App.) to the 
Congress more frequently than on an annual or semiannual basis.
    (d) Technical and Conforming Amendments.--
            (1) Section 4(a)(2) of the Inspector General Act of 1978 (5 
        U.S.C. App.) is amended by striking ``semiannual'' and 
        inserting ``annual''.
            (2) Section 5 of the Inspector General Act of 1978 (5 
        U.S.C. App.) is amended--
                    (A) in subsection (b)--
                            (i) by striking ``Semiannual'' and 
                        inserting ``Annual''; and
                            (ii) by striking ``April 30 and''; and
                    (B) in subsection (c)--
                            (i) in the first sentence by striking 
                        ``semiannual'' and inserting ``annual''; and
                            (ii) in the second sentence by striking 
                        ``semiannual'' and inserting ``annual''.
            (3) Section 8(f) of the Inspector General Act of 1978 (5 
        U.S.C. App.) is amended by striking ``semiannual'' and 
        inserting ``annual''.

SEC. 5. INSPECTORS GENERAL AT LEVEL III OF EXECUTIVE SCHEDULE.

    (a) Level IV Positions.--Section 5315 of title 5, United States 
Code, is amended by striking each item relating to the following 
positions:
            (1) Inspector General, Department of Education.
            (2) Inspector General, Department of Energy.
            (3) Inspector General, Department of Health and Human 
        Services.
            (4) Inspector General, Department of Agriculture.
            (5) Inspector General, Department of Housing and Urban 
        Development.
            (6) Inspector General, Department of Labor.
            (7) Inspector General, Department of Transportation.
            (8) Inspector General, Department of Veterans Affairs.
            (9) Inspector General, Department of Defense.
            (10) Inspector General, United States Information Agency.
            (11) Inspector General, Department of State.
            (12) Inspector General, Department of Commerce.
            (13) Inspector General, Department of the Interior.
            (14) Inspector General, Department of Justice.
            (15) Inspector General, Department of the Treasury.
            (16) Inspector General, Agency for International 
        Development.
            (17) Inspector General, Environmental Protection Agency.
            (18) Inspector General, Federal Emergency Management 
        Agency.
            (19) Inspector General, General Services Administration.
            (20) Inspector General, National Aeronautics and Space 
        Administration.
            (21) Inspector General, Nuclear Regulatory Commission.
            (22) Inspector General, Office of Personnel Management.
            (23) Inspector General, Railroad Retirement Board.
            (24) Inspector General, Small Business Administration.
            (25) Inspector General, Federal Deposit Insurance 
        Corporation.
            (26) Inspector General, Resolution Trust Corporation.
            (27) Inspector General, Central Intelligence Agency.
            (28) Inspector General, Social Security Administration.
            (29) Inspector General, United States Postal Service.
    (b) Level III Positions.--Section 5314 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Inspector General, Department of Education.
            ``Inspector General, Department of Energy.
            ``Inspector General, Department of Health and Human 
        Services.
            ``Inspector General, Department of Agriculture.
            ``Inspector General, Department of Housing and Urban 
        Development.
            ``Inspector General, Department of Labor.
            ``Inspector General, Department of Transportation.
            ``Inspector General, Department of Veterans Affairs.
            ``Inspector General, Department of Defense.
            ``Inspector General, Department of State.
            ``Inspector General, Department of Commerce.
            ``Inspector General, Department of the Interior.
            ``Inspector General, Department of Justice.
            ``Inspector General, Department of the Treasury.
            ``Inspector General, Agency for International Development.
            ``Inspector General, Corporation for Community and National 
        Service.
            ``Inspector General, Environmental Protection Agency.
            ``Inspector General, Federal Emergency Management Agency.
            ``Inspector General, General Services Administration.
            ``Inspector General, National Aeronautics and Space 
        Administration.
            ``Inspector General, Nuclear Regulatory Commission.
            ``Inspector General, Office of Personnel Management.
            ``Inspector General, Railroad Retirement Board.
            ``Inspector General, Small Business Administration.
            ``Inspector General, Federal Deposit Insurance Corporation.
            ``Inspector General, Central Intelligence Agency.
            ``Inspector General, Social Security Administration.
            ``Inspector General, United States Postal Service.''.
    (c) Savings Provision.--Nothing in this section shall have the 
effect of reducing the rate of pay of any individual serving as an 
Inspector General on the effective date of this section.

SEC. 6. STUDY AND REPORT ON CONSOLIDATION OF INSPECTOR GENERAL OFFICES.

    (a) Study.--The Comptroller General of the United States shall--
            (1) develop criteria for determining whether the 
        consolidation of Federal Inspector General offices would be 
        cost-efficient and in the public interest; and
            (2) conduct a study of Federal Inspector General offices 
        using the criteria developed under paragraph (1) to determine 
        whether any such offices should be consolidated.
    (b) Report to Congress.--Not later than 180 days after the date of 
enactment of this Act, the Comptroller General shall submit a report to 
the Congress containing recommendations for any legislative action, 
based on the study conducted under subsection (a).

Summary: Inspector General Act Amendments of 2001 - Amends the Inspector General Act of 1978 to prohibit the receipt of any cash award or cash bonus by an Inspector General. Provides for an external review of the Office of Inspector General (Office) for specified Federal agencies at least every three years by the General Accounting Office or a private entity. Changes the semiannual Office activities report to an annual report. Revises required elements of such reports. Sets forth new semiannual Office activities reporting requirements. Changes the rate of pay of specified Inspectors General from Level IV to Level III of the Executive Schedule. Requires the Comptroller General to: (1) develop criteria for determining whether the consolidation of Federal Inspector General offices would be cost-efficient and in the public interest. (2) study the offices using such criteria to determine whether any should be consolidated. And (3) report to Congress recommendations for legislative action based on the study.