GAO

United States General Accounting Office

Report to Congressional Committees

September 2000 FINANCIAL AUDIT

Independent and 

Special Counsel 

Expenditures for the 

Six Months Ended 

March 31, 2000

GAO/AIMD-00-310

Page 1 GAO/AIMD-00-310 Independent and Special Counsel

Contents

Letter 3

Opinion Letter 5

Appendixes Appendix I: Statement of Expenditures for Independent Counsel 

Adams/Thompson 12

Appendix II: Statement of Expenditures for Independent Counsel 

Barrett 15

Appendix III: Statement of Expenditures for Independent Counsel 

Bruce 18

Appendix IV: Statement of Expenditures for Independent Counsel 

Lancaster 21

Appendix V: Statement of Expenditures for Independent Counsel 

Pearson 24

Appendix VI: Statement of Expenditures for Independent Counsel 

Smaltz 27

Appendix VII: Statement of Expenditures for Independent Counsel 

Starr/Ray 30

Appendix VIII:Statement of Expenditures for Special Counsel

Danforth 34

Abbreviations

ADP automatic data processing

AOUSC Administrative Office of the U.S. Courts

FBI Federal Bureau of Investigation

IRS Internal Revenue Service

OIC Office of Independent Counsel

OSC Office of Special Counsel
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United States General Accounting Office

Washington, D.C. 20548

Accounting and Information

Management Division

B-286132 Letr

September 29, 2000

Congressional Committees

Enclosed is our opinion on the statements of expenditures of seven offices 

of independent counsel and one office of special counsel for the 6 months 

ended March 31, 2000. We are sending copies of this report to the Attorney 

General, the Director of the Administrative Office of the U.S. Courts, the 

independent counsels and special counsel included in our audit, and other 

interested parties. Copies will be made available to others upon request.

David L. Clark

Director, Audit Oversight and Liaison
Page 4 GAO/AIMD-00-310 Independent and Special Counsel
Page 5 GAO/AIMD-00-310 Independent and Special Counsel

United States General Accounting Office

Washington, D.C. 20548

Accounting and Information

Management Division

B-286132 OpnioinLetr

Congressional Committees

This report presents the results of our audits of expenditures1

 reported by 

seven offices of independent counsel and one office of special counsel for 

the 6 months ended March 31, 2000. The Department of Justice and the 

independent counsels are required under 28 U.S.C. 594(d)(2), (h), and 

596(c)(1) (1994) to report on expenditures from a permanent, indefinite 

appropriation established within Justice to fund independent counsel 

activities. We are required under 28 U.S.C. 596(c)(2), to audit the 

statements of expenditures prepared by the independent counsels. We also 

audited the statements of expenditures of Special Counsel John C. 

Danforth, who is authorized by the Department of Justice to fund his 

operations from the permanent, indefinite appropriation.

We found that the statements of expenditures presented in appendixes I 

through VIII, for the offices of independent counsel Arlin M. Adams/Larry 

D. Thompson, David M. Barrett, Carol Elder Bruce, Ralph I. Lancaster, 

Daniel S. Pearson, Donald C. Smaltz, and Kenneth W. Starr/Robert W. Ray, 

and special counsel John C. Danforth, respectively, were fairly presented in 

all material respects. Our consideration of internal controls, which was 

limited for the purpose of determining our procedures for auditing the 

statements of expenditures, disclosed no material weaknesses. Further, our 

audits included limited tests of compliance with laws and regulations that 

disclosed no reportable instances of noncompliance with the laws and 

regulations we tested.

The following sections provide background information, outline each 

conclusion in more detail, and discuss the scope of our audits.

Background The Ethics in Government Act of 1978 amended title 28 of the United States 

Code to authorize the judicial appointment of independent counsels when 

the Attorney General determines that reasonable grounds exist to warrant 

further investigation of high-ranking government officials for certain 

alleged crimes. The independent counsel law (28 U.S.C. 591-599 (1994)) 

was intended to preserve and promote the accountability and integrity of 

1

The term expenditures as used in this report generally means cash disbursed.
B-286132

Page 6 GAO/AIMD-00-310 Independent and Special Counsel

public officials and of the institutions of the federal government. The 

independent counsel law expired on June 30, 1999. Provisions of the law 

allow the independent counsels serving at the expiration date to continue 

investigating pending matters until they determine that the investigations 

of such matters have been completed. Also, the Department of Justice 

determined that the appropriation established by Public Law 100-202 to 

fund expenditures by independent counsels appointed pursuant to 

28 U.S.C. 591-599, or other law, is available to fund the expenditures of John 

C. Danforth, who was appointed as a Special Counsel within the 

Department of Justice by the Attorney General. 

The independent counsel law directs the Department of Justice to pay all 

costs relating to the establishment and operation of independent counsel 

offices and designates specific responsibilities to the Administrative Office 

of the U.S. Courts (AOUSC) for independent counsels’ administrative 

support. Justice periodically disburses lump-sum payments to AOUSC for 

this purpose. 

During any 6-month period, there may be other significant costs incurred in 

support of the work of the counsels, which are paid from appropriations 

other than the permanent, indefinite appropriation established to fund 

independent counsel activities. These costs arise when a counsel uses 

detailees from other federal agencies, such as the Federal Bureau of 

Investigation (FBI). Independent counsels are not required to reflect such 

costs in their statements of expenditures and neither the independent 

counsels nor special counsel do so. However, to the extent practicable the 

counsels identified and discussed these costs in the notes to their 

statements presented in the appendixes to this report.

These statements and related notes do not include certain expenditures 

related to the investigation by independent counsel Curtis E. von Kann’s 

(formerly Independent Counsel Sealed-1996) office which officially closed 

effective November 30, 1998, and accordingly, no longer prepares financial 

statements. However, $3,513 in expenditures occurred during this period 

for installation of a security system in 1998. 

Opinion on Statements 

of Expenditures

The counsels prepared their statements of expenditures principally on a 

cash basis of accounting, which is a comprehensive basis of accounting 

other than generally accepted accounting principles. The bases of 

accounting are described in note 1 of each counsel’s statement. 
B-286132

Page 7 GAO/AIMD-00-310 Independent and Special Counsel

In our opinion, the statements of expenditures including the accompanying 

notes for the offices of independent counsel Arlin M. Adams/Larry D. 

Thompson, David M. Barrett, Carol Elder Bruce, Ralph I. Lancaster, Daniel 

S. Pearson, Donald C. Smaltz, and Kenneth W. Starr/Robert W. Ray, and for 

the office of special counsel John C. Danforth present fairly, in all material 

respects, the expenditures of these counsels for the 6 months ended March 

31, 2000, on the basis of accounting described in note 1 to each office’s 

statement.

Consideration of 

Internal Control 

Structure

We gained an understanding of internal controls whose objectives are to 

(1) safeguard assets against loss from unauthorized acquisition, use, or 

disposition; (2) assure the execution of transactions in accordance with 

laws governing the use of budget authority and with other laws and 

regulations that have a direct and material effect on the statements of 

expenditures; and (3) properly record, process, and summarize 

transactions to permit the preparation of reliable statements of 

expenditures and to maintain accountability for assets.

The purpose of our consideration of internal controls was to determine our 

procedures for auditing the statements of expenditures and, accordingly, 

we do not express an opinion on internal controls. However, for the 

controls we tested, we found no material weaknesses or other reportable 

conditions in the internal control structure and its operations for the

6-month period ended March 31, 2000. A material weakness is a reportable 

condition in which the design or operation of one or more of the internal 

control components does not reduce to a relatively low level the risk that 

misstatements caused by error or fraud in amounts that would be material 

in relation to the financial statements being audited may occur and not be 

detected within a timely period by employees in the normal course of 

performing their duties. Our internal control work would not necessarily 

identify all material weaknesses. 

Compliance With Laws 

and Regulations

Our tests for compliance with selected provisions of laws and regulations 

disclosed no instances of noncompliance that would be reportable under 

generally accepted government auditing standards. However, the objective 

of our audit was not to provide an opinion on overall compliance with laws 

and regulations. Accordingly, we do not express such an opinion.
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Page 8 GAO/AIMD-00-310 Independent and Special Counsel

Objectives, Scope, and 

Methodology

In order to carry out their financial operations and to ensure accountability, 

independent counsels are responsible for preparing statements of 

expenditures in conformity with the bases of accounting described in the 

accompanying notes. Though not required to do so, the special counsel also 

elected to prepare statements of expenditures. The counsels are also 

responsible for establishing and maintaining an internal control structure 

to provide reasonable assurance that the internal control objectives 

previously mentioned are met, and for complying with applicable laws and 

regulations.

In carrying out our work, we are responsible for obtaining reasonable 

assurance about whether the statements of the counsels are presented 

fairly, in all material respects, in conformity with the bases of accounting 

described in the accompanying notes. Also, we are responsible for 

obtaining a sufficient understanding of internal controls to plan the audits 

and for testing compliance with selected provisions of laws and 

regulations. 

In order to fulfill these responsibilities, for each counsel, we (1) examined, 

on a test basis, evidence supporting the amounts and disclosures in the 

statement of expenditures and notes attached thereto, except items 

indicated as unaudited; (2) assessed the accounting principles used by 

management; (3) evaluated the overall presentation of the statement of 

expenditures; (4) obtained an understanding of the internal control 

structure related to safeguarding assets, compliance with laws and 

regulations (including execution of transactions in accordance with budget 

authority), and financial reporting; (5) tested relevant internal controls 

over safeguarding assets, compliance, and financial reporting; and

(6) tested compliance with certain aspects of selected provisions of 

28 U.S.C. 591-599 (1994), 5 U.S.C. Chapter 55, and regulations relating to 

pay administration.

We limited our internal control testing to those controls necessary to 

achieve the objectives outlined in our statement on internal controls. 

Because of inherent limitations in any internal control structure, losses, 

noncompliance, or misstatements may nevertheless occur and not be 

detected. We also caution that projecting our evaluation to future periods is 

subject to the risk that controls may become inadequate because of 

changes in conditions or that the degree of compliance with controls may 

deteriorate. 
B-286132

Page 9 GAO/AIMD-00-310 Independent and Special Counsel

We did not test compliance with all laws and regulations applicable to the 

offices of independent and special counsel. We limited our tests of 

compliance to those which we deemed applicable to the statements of 

expenditures. We caution that noncompliance may occur and not be 

detected by these tests and that such testing may not be sufficient for other 

purposes. 

We obtained, but did not audit, information on costs that were not paid 

from the permanent, indefinite appropriation as well as information on 

receipts. We obtained information on these costs and receipts from the 

independent and special counsel offices; the Department of Justice, 

including the FBI; the Department of the Treasury, including the Internal 

Revenue Service; the U.S. Postal Service; and the Office of Inspector 

General for the Department of Agriculture. 

We discussed the results of our work with representatives of the seven 

offices of independent counsel, the office of the special counsel, the 

Department of Justice, and AOUSC, and have incorporated their comments 

where appropriate.

We performed our audits in accordance with generally accepted 

government auditing standards.

David L. Clark

Director, Audit Oversight and Liaison

September 8, 2000
B-286132

Page 10 GAO/AIMD-00-310 Independent and Special Counsel

List of Committees

The Honorable Ted Stevens

Chairman

The Honorable Robert C. Byrd

Ranking Minority Member

Committee on Appropriations

United States Senate

The Honorable Fred Thompson

Chairman

The Honorable Joseph I. Lieberman

Ranking Minority Member

Committee on Governmental Affairs

United States Senate

The Honorable Orrin G. Hatch

Chairman

The Honorable Patrick J. Leahy

Ranking Minority Member

Committee on the Judiciary

United States Senate

The Honorable C. W. Bill Young 

Chairman

The Honorable David R. Obey

Ranking Minority Member

Committee on Appropriations

House of Representatives

The Honorable Dan Burton

Chairman

The Honorable Henry A. Waxman

Ranking Minority Member

Committee on Government Reform

House of Representatives
B-286132

Page 11 GAO/AIMD-00-310 Independent and Special Counsel

The Honorable Henry J. Hyde

Chairman

The Honorable John Conyers, Jr.

Ranking Minority Member

Committee on the Judiciary 

House of Representatives
Page 12 GAO/AIMD-00-310 Independent and Special Counsel

Appendix I

Statement of Expenditures for Independent Apendxies

Counsel Adams/Thompson ApendxiI

ARLIN M. ADAMS/LARRY D. THOMPSON

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended March 31, 2000

Personnel compensation and benefits

Rent, communications, and utilities (note 2)

Contractual services (note 3)

Supplies and materials

Administrative services (note 4)

Total expenditures

$31,790

12,928

17,463

268

9,424

$71,873

____________________________________________________

The accompanying notes are an integral part of this statement.
Appendix I

Statement of Expenditures for Independent 

Counsel Adams/Thompson

Page 13 GAO/AIMD-00-310 Independent and Special Counsel

ARLIN M. ADAMS/LARRY D. THOMPSON

Office of Independent Counsel

Notes to Statement of Expenditures

Note 1 - Accounting policies

Reporting entity: The accompanying statement of expenditures presents the

expenditures of the Office of Independent Counsel-Arlin M. Adams/Larry D.

Thompson (OIC-Adams/Thompson) for the 6 months ended March 31, 2000.

The statement of expenditures includes only expenditures made from the

permanent, indefinite appropriation for the office of independent counsel that are

processed through the Administrative Office of the U.S. Courts (AOUSC) and

the OIC. Mr. Adams was appointed on March 1, 1990, to investigate the

administration of various programs of the Department of Housing and Urban

Development from 1983 to 1989. On May 15, 1995, Mr. Adams resigned his

appointment, effective July 3, 1995, at which time he was succeeded by Larry D.

Thompson as independent counsel. On June 3, 1999, based on information

submitted by the independent counsel, the Court ordered the termination of OICAdams/Thompson, effective that same date, except to the extent necessary to

conclude outstanding financial obligations and to comply with the final audit

requirements of 28 U.S.C. 596 (c). Expenditures during this period relate to

archiving independent counsel records.

Basis of accounting: The accompanying statement of expenditures was

prepared principally on the cash basis of accounting, which is a comprehensive

basis of accounting other than generally accepted accounting principles. Under

this method, except for personnel compensation and benefits, expenditures are

recorded when the funds are disbursed by AOUSC or, for noncash transfers,

when charged by AOUSC. Most personnel compensation and benefits are

recorded at the end of the pay period when earned.

Note 2 - Rent, communications, and utilities

Approximately $11,800 in office rent is included in rent, communications, and

utilities.

Note 3 - Contractual services

Contractual services primarily consist of payments to experts for assistance in

preparing independent counsel records for archiving.
Appendix I

Statement of Expenditures for Independent 

Counsel Adams/Thompson

Page 14 GAO/AIMD-00-310 Independent and Special Counsel

Note 4 - Administrative services

AOUSC receives an administrative fee equal to 3 percent of OIC expenditures

for performing disbursement and accounting functions for OIC-Adams/

Thompson. Payment of these fees generally occurs in the month following the

services. Also included in administrative services are other costs, amounting to

$6,258 incurred by AOUSC in providing administrative guidance and support to

independent counsel offices. These costs were certified by AOUSC, paid from

the independent counsel appropriation, and allocated to the OIC.

Note 5 – Other costs (unaudited)

In September 1999, a special division of the U.S. Court of Appeals for the D.C.

Circuit awarded reimbursement of $229,950 for attorneys’ fees and expenses to

an individual who had been investigated by OIC-Adams/Thompson but not

indicted. The reimbursement was made in March 2000 from the permanent fund

established for the payment of judgments.
Page 15 GAO/AIMD-00-310 Independent and Special Counsel

Appendix II

Statement of Expenditures for Independent 

Counsel Barrett ApendxiI

DAVID M. BARRETT

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended March 31, 2000

Personnel compensation and benefits

Travel (note 2)

Rent, communications, and utilities (note 3)

Contractual services (note 4)

Acquisition of capital assets

Supplies and materials

Administrative services (note 5)

Total expenditures

$778,040

107,338

239,052

190,514

364

3,744

111,514

$1,430,566

____________________________________________________

The accompanying notes are an integral part of this statement.
Appendix II

Statement of Expenditures for Independent 

Counsel Barrett

Page 16 GAO/AIMD-00-310 Independent and Special Counsel

DAVID M. BARRETT

Office of Independent Counsel

Notes to Statement of Expenditures

Note 1 - Accounting policies

Reporting entity: The accompanying statement of expenditures presents the

expenditures of the Office of Independent Counsel-David M. Barrett (OICBarrett) for the 6 months ended March 31, 2000. The statement of expenditures

includes only expenditures made from the permanent, indefinite appropriation for

the office of independent counsel that are processed through the Administrative

Office of the U.S. Courts (AOUSC) and the OIC. Mr. Barrett was appointed on

May 24, 1995, to investigate certain allegations against the Secretary of Housing

and Urban Development.

Basis of accounting: The accompanying statement of expenditures was

prepared principally on the cash basis of accounting, which is a comprehensive

basis of accounting other than generally accepted accounting principles. Under

this method, except for personnel compensation and benefits, expenditures are

recorded when the funds are disbursed by AOUSC or, for noncash transfers,

when charged by AOUSC. Most personnel compensation and benefits are

recorded at the end of the pay period when earned.

Note 2 - Travel

Travel generally includes expenditures for investigation-related travel paid for

OIC-Barrett personnel, detailees from other federal agencies, such as the

Federal Bureau of Investigation (FBI), and witnesses.

Note 3 - Rent, communications, and utilities

Approximately $181,600 in office rent is included in rent, communications, and

utilities.

Note 4 - Contractual services

Contractual services primarily consist of expenditures for investigators and other

specialists in areas of interest to the investigation.
Appendix II

Statement of Expenditures for Independent 

Counsel Barrett

Page 17 GAO/AIMD-00-310 Independent and Special Counsel

Note 5 - Administrative services

AOUSC receives an administrative fee equal to 3 percent of OIC expenditures

for performing disbursement and accounting functions for OIC-Barrett. Payment

of these fees generally occurs in the month following the services. Also included

in administrative services are other costs, amounting to $68,095, incurred by

AOUSC in providing administrative guidance and support to independent

counsel offices. These costs were certified by AOUSC, paid from the

independent counsel appropriation, and allocated to the OIC.
Page 18 GAO/AIMD-00-310 Independent and Special Counsel

Appendix III

Statement of Expenditures for Independent 

Counsel Bruce ApendxiI

CAROL ELDER BRUCE

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended March 31, 2000

Personnel compensation and benefits

Travel (note 2)

Rent, communications, and utilities (note 3)

Contractual services (note 4)

Acquisition of capital assets (note 5)

Supplies and materials

Administrative services (note 6)

Total expenditures

$466,326

12,725

271,142

78,456

4,338

5,025

52,710

$890,722

____________________________________________________

The accompanying notes are an integral part of this statement.
Appendix III

Statement of Expenditures for Independent 

Counsel Bruce

Page 19 GAO/AIMD-00-310 Independent and Special Counsel

CAROL ELDER BRUCE

Office of Independent Counsel

Notes to Statement of Expenditures

Note 1 - Accounting policies

Reporting entity: The accompanying statement of expenditures presents the

expenditures of the Office of Independent Counsel-Carol Elder Bruce (OICBruce) for the 6 months ended March 31, 2000. The statement of expenditures

includes only expenditures made from the permanent, indefinite appropriation for

the office of independent counsel that are processed through the Administrative

Office of the U.S. Courts (AOUSC) and the OIC. Ms. Bruce was appointed on

March 19, 1998, to investigate whether the Secretary of the Interior may have

violated federal criminal law in sworn testimony before a congressional

committee. Ms. Bruce submitted her final report to the Special Division of the

U.S. Court of Appeals for the District of Columbia Circuit on December 30, 1999.

Basis of accounting: The accompanying statement of expenditures was

prepared principally on the cash basis of accounting, which is a comprehensive

basis of accounting other than generally accepted accounting principles. Under

this method, expenditures are recorded when the funds are disbursed by

AOUSC or, for noncash transfers, when charged by AOUSC. Most personnel

compensation and benefits are recorded at the end of the pay period when

earned.

Note 2 - Travel

Travel generally includes expenditures for investigation-related travel paid for

OIC-Bruce personnel, detailees from other federal agencies, such as the

Federal Bureau of Investigation (FBI), and witnesses.

Note 3 - Rent, communications, and utilities

Approximately $238,000 in office rent is included in rent, communications, and

utilities.

Note 4 - Contractual services

Contractual services primarily consist of payments for specialists to assist in

writing the final report.
Appendix III

Statement of Expenditures for Independent 

Counsel Bruce

Page 20 GAO/AIMD-00-310 Independent and Special Counsel

Note 5 - Acquisition of capital assets

The capital assets expenditures are for the purchase of furniture. These assets

will remain the property of the federal government at the conclusion of the

investigation.

Note 6 - Administrative services

AOUSC receives an administrative fee equal to 3 percent of OIC expenditures

for performing disbursement and accounting functions for OIC-Bruce. Payment

of these fees generally occurs in the month following the services. Also included

in administrative services are other costs, amounting to $24,538, incurred by

AOUSC in providing administrative guidance and support to independent

counsel offices. These costs were certified by AOUSC, paid from the

independent counsel appropriation, and allocated to the OIC.

Note 7 - Other costs (unaudited)

Certain costs relating to employees assigned to work with the OIC by the FBI

and the Department of Justice were financed through funds appropriated to

these agencies and, accordingly, are not included in the statement of

expenditures. These agencies are not reimbursed for these costs. The

schedule below shows the estimated costs (unaudited) of the assistance

provided to the OIC during the 6-month period, based on information provided

by officials of these agencies.

Costs

(unaudited)

FBI

Other Justice

$11,129

33

$11,162
Page 21 GAO/AIMD-00-310 Independent and Special Counsel

Appendix IV

Statement of Expenditures for Independent 

Counsel Lancaster ApendxiIV

RALPH I. LANCASTER

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended March 31, 2000

Personnel compensation and benefits

Travel (note 2)

Rent, communications, and utilities (note 3)

Contractual services (note 4)

Acquisition of capital assets (note 5)

Supplies and materials

Administrative services (note 6)

Total expenditures

$646,840

77,089

130,798

524,850

3,760

3,958

67,349

$1,454,644

____________________________________________________

The accompanying notes are an integral part of this statement.
Appendix IV

Statement of Expenditures for Independent 

Counsel Lancaster

Page 22 GAO/AIMD-00-310 Independent and Special Counsel

RALPH I. LANCASTER

Office of Independent Counsel

Notes to Statement of Expenditures

Note 1 - Accounting policies

Reporting entity: The accompanying statement of expenditures presents the

expenditures of the Office of Independent Counsel-Ralph I. Lancaster (OICLancaster) for the 6 months ended March 31, 2000. The statement of

expenditures includes only expenditures made from the permanent, indefinite

appropriation for the office of independent counsel that are processed through

the Administrative Office of the U.S. Courts (AOUSC) and the OIC.

Mr. Lancaster was appointed on May 26, 1998, to investigate activities of the

Secretary of Labor regarding a possible undisclosed financial interest in a

company and the solicitation of illegal campaign contributions.

Basis of accounting: The accompanying statement of expenditures was

prepared principally on the cash basis of accounting, which is a comprehensive

basis of accounting other than generally accepted accounting principles. Under

this method, except for personnel compensation and benefits, expenditures are

recorded when the funds are disbursed by AOUSC or, for noncash transfers,

when charged by AOUSC. Most personnel compensation and benefits are

recorded at the end of the pay period when earned.

Note 2 - Travel

Travel generally includes expenditures for investigation-related travel paid for

OIC-Lancaster personnel, detailees from other federal agencies, such as the

Federal Bureau of Investigation (FBI), and witnesses.

Note 3 - Rent, communications, and utilities

Approximately $117,500 in office rent is included in rent, communications, and

utilities.

Note 4 - Contractual services

Contractual services represent expenditures for services of experts and other

specialists in areas of interest to the investigation.
Appendix IV

Statement of Expenditures for Independent 

Counsel Lancaster

Page 23 GAO/AIMD-00-310 Independent and Special Counsel

Note 5 - Acquisition of capital assets

The capital assets expenditures are principally for the purchase of file cabinets.

These assets will remain the property of the federal government at the

conclusion of the investigation.

Note 6 - Administrative services

AOUSC receives an administrative fee equal to 3 percent of OIC expenditures

for performing disbursement and accounting functions for OIC-Lancaster.

Payment of these fees generally occurs in the month following the services.

Also included in administrative services are other costs, amounting to $42,382,

incurred by AOUSC in providing administrative guidance and support to

independent counsel offices. These costs were certified by AOUSC, paid from

the independent counsel appropriation, and allocated to the OIC.

Note 7 - Other costs (unaudited)

Certain costs relating to employees assigned to work with the OIC by the FBI,

the Department of Justice, and the Internal Revenue Service were financed

through funds appropriated to these agencies and, accordingly, are not included

in the statement of expenditures. These agencies were not reimbursed for these

costs. The schedule below shows the estimated costs (unaudited) of the

assistance provided to the OIC during the 6-month period, based on information

provided by officials of these agencies.

Costs

(unaudited)

FBI

Other Justice

IRS

$90,153

55

85,104

$175,312
Page 24 GAO/AIMD-00-310 Independent and Special Counsel

Appendix V

Statement of Expenditures for Independent 

Counsel Pearson ApendxiV

DANIEL S. PEARSON

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended March 31, 2000

Personnel compensation and benefits

Travel

Rent, communications, and utilities (note 2)

Contractual services (note 3)

Acquisition of capital assets

Supplies and materials

Administrative services (note 4)

Total expenditures

$47,041

1,547

15,946

23,494

168

3,558

12,657

$104,411

____________________________________________________

The accompanying notes are an integral part of this statement.
Appendix V

Statement of Expenditures for Independent 

Counsel Pearson

Page 25 GAO/AIMD-00-310 Independent and Special Counsel

DANIEL S. PEARSON

Office of Independent Counsel

Notes to Statement of Expenditures

Note 1 - Accounting policies

Reporting entity: The accompanying statement of expenditures presents the

expenditures of the Office of Independent Counsel-Daniel S. Pearson (OICPearson) for the 6 months ended March 31, 2000. The statement of

expenditures includes only expenditures made from the permanent, indefinite

appropriation for the office of independent counsel that are processed through

the Administrative Office of the U.S. Courts (AOUSC) and the OIC. Mr. Pearson

was appointed on July 6, 1995, to investigate certain allegations against the

Secretary of Commerce. On April 3, 1996, the Secretary was killed in a plane

crash. Shortly thereafter, the independent counsel closed the investigation of

the Secretary and transferred the investigation related to other parties to the

Department of Justice. Expenditures during this period relate to efforts to

archive the investigative records.

Basis of accounting: The accompanying statement of expenditures was

prepared principally on the cash basis of accounting, which is a comprehensive

basis of accounting other than generally accepted accounting principles. Under

this method, except for personnel compensation and benefits, expenditures are

recorded when the funds are disbursed by AOUSC or, for noncash transfers,

when charged by AOUSC. Most personnel compensation and benefits are

recorded at the end of the pay period when earned.

Note 2 – Rent, communications, and utilities

Approximately $11,800 in office rent is included in rent, communications, and

utilities.

Note 3 – Contractual Services

Contractual services primarily consist of payments to experts in preparing

independent counsel records for archiving.

Note 4 - Administrative services

AOUSC receives an administrative fee equal to 3 percent of OIC expenditures

for performing disbursement and accounting functions for OIC-Pearson.

Payment of these fees generally occurs in the month following the services.
Appendix V

Statement of Expenditures for Independent 

Counsel Pearson

Page 26 GAO/AIMD-00-310 Independent and Special Counsel

Also included in administrative services are other costs, amounting to $6,258,

incurred by AOUSC in providing administrative guidance and support to

independent counsel offices. These costs were certified by AOUSC, paid from

the independent counsel appropriation, and allocated to the OIC.
Page 27 GAO/AIMD-00-310 Independent and Special Counsel

Appendix VI

Statement of Expenditures for Independent 

Counsel Smaltz ApendxiVI

DONALD C. SMALTZ

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended March 31, 2000

Personnel compensation and benefits

Travel (note 2)

Rent, communications, and utilities (note 3)

Contractual services (note 4)

Acquisition of capital assets (note 5)

Supplies and materials

Administrative services (note 6)

Total expenditures

$451,527

39,208

171,768

35,965

5,225

6,373

55,447

$765,513

____________________________________________________

The accompanying notes are an integral part of this statement.
Appendix VI

Statement of Expenditures for Independent 

Counsel Smaltz

Page 28 GAO/AIMD-00-310 Independent and Special Counsel

DONALD C. SMALTZ

Office of Independent Counsel

Notes to Statement of Expenditures

Note 1 - Accounting policies

Reporting entity: The accompanying statement of expenditures presents the

expenditures of the Office of Independent Counsel-Donald C. Smaltz (OICSmaltz) for the 6 months ended March 31, 2000. The statement of expenditures

includes only expenditures made from the permanent, indefinite appropriation for

the office of independent counsel that are processed through the Administrative

Office of the U.S. Courts (AOUSC) and the OIC. Mr. Smaltz was appointed on

September 9, 1994, to investigate activities of a former Secretary of Agriculture.

Basis of accounting: The accompanying statement of expenditures was

prepared principally on the cash basis of accounting, which is a comprehensive

basis of accounting other than generally accepted accounting principles. Under

this method, except for personnel compensation and benefits, expenditures are

recorded when the funds are disbursed by AOUSC or, for noncash transfers,

when charged by AOUSC. Most personnel compensation and benefits are

recorded at the end of the pay period when earned.

Note 2 - Travel

Travel generally includes expenditures for travel paid for OIC-Smaltz personnel

and detailees from other federal agencies, such as the Department of

Agriculture.

Note 3 - Rent, communications, and utilities

Approximately $161,200 in office rent is included in rent, communications, and

utilities.

Note 4 - Contractual services

Contractual services primarily consist of expenditures for services of experts and

other specialists in areas of interest to the investigation.
Appendix VI

Statement of Expenditures for Independent 

Counsel Smaltz

Page 29 GAO/AIMD-00-310 Independent and Special Counsel

Note 5 - Acquisition of capital assets

The capital assets expenditures are principally for law books. These assets

remain the property of the federal government at the conclusion of the

investigation.

Note 6 - Administrative services

AOUSC receives an administrative fee equal to 3 percent of OIC expenditures

for performing disbursement and accounting functions for OIC-Smaltz. Payment

of these fees generally occurs in the month following the services. Also included

in administrative services are other costs, amounting to $34,421, incurred by

AOUSC in providing administrative guidance and support to independent

counsel offices. These costs were certified by AOUSC, paid from the

independent counsel appropriation, and allocated to the OIC.

Note 7 - Other costs (unaudited)

Certain costs relating to employees assigned to work with the OIC by the

Department of Justice and the Inspector General of the Department of

Agriculture were financed through funds appropriated to these agencies and,

accordingly, are not included in the statement of expenditures. These agencies

are not reimbursed for these costs. The schedule below shows the estimated

costs (unaudited) of the assistance provided to the OIC during the 6-month

period, based on information provided by officials of these agencies.

Costs

(unaudited)

Agriculture

Justice

$13,399

11

$13,410

Note 8 - Receipts (unaudited)

As of March 31, 2000, OIC-Smaltz’s convictions and referrals have resulted in

the imposition of $11,597,256 in criminal fines, civil penalties, damages, and

reimbursement of costs. Approximately $9,926,850 of that amount has been

received and deposited into the U.S. Treasury.
Page 30 GAO/AIMD-00-310 Independent and Special Counsel

Appendix VII

Statement of Expenditures for Independent 

Counsel Starr/Ray ApendxiVI

KENNETH W. STARR/ROBERT W. RAY

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended March 31, 2000

Personnel compensation and benefits

Travel (note 2)

Rent, communications, and utilities (note 3)

Contractual services (note 4)

Acquisition of capital assets (note 5)

Supplies and materials

Administrative services (note 6)

Total expenditures

$1,654,339

309,402

559,676

604,208

13,459

40,102

198,292

$3,379,478

____________________________________________________

The accompanying notes are an integral part of this statement.
Appendix VII

Statement of Expenditures for Independent 

Counsel Starr/Ray

Page 31 GAO/AIMD-00-310 Independent and Special Counsel

KENNETH W. STARR/ROBERT W. RAY

Office of Independent Counsel

Notes to Statement of Expenditures

Note 1 - Accounting policies

Reporting entity: The accompanying statement of expenditures presents the

expenditures of the Office of Independent Counsel-Kenneth W. Starr/Robert

W. Ray (OIC-Starr/Ray) for the 6 months ended March 31, 2000. The

statement of expenditures includes only expenditures made from the

permanent, indefinite appropriation for the office of independent counsel that

are processed through the Administrative Office of the U.S. Courts (AOUSC)

and the OIC. Mr. Starr was appointed on August 5, 1994, to assume the

investigation of possible violations of federal criminal law in Re: Madison

Guaranty Savings and Loan Association and other entities, which was begun

by regulatory Independent Counsel Robert B. Fiske, Jr. The U.S. Court of

Appeals subsequently expanded OIC-Starr's jurisdiction to include selected

White House Travel Office and access-to-personnel-file issues on March 22,

1996, and June 21, 1996, respectively. On October 25, 1996, it further

expanded OIC-Starr's jurisdiction to include issues related to statements

made before the Government Reform and Oversight Committee, U.S. House

of Representatives, on June 26, 1996. On January 16, 1998, the Court

expanded OIC-Starr's jurisdiction to include issues related to whether, in a

civil case, certain individuals suborned perjury, obstructed justice, intimidated

witnesses, or otherwise violated federal law in dealing with witnesses,

potential witnesses, attorneys, or others. On October 18, 1999, Mr. Starr

resigned his appointment, and was succeeded by Robert W. Ray as

independent counsel effective the same date. On March 16, 2000, Mr. Ray

submitted to the Special Division of the U.S. Court of Appeals for the District

of Columbia Circuit two final reports on (1) the access-to-personnel-files

issues and (2) the issues related to statements made before the Government

Reform and Oversight Committee. On July 28, 2000, the Court ordered the

public release of the two reports. The remainder of the investigation is

ongoing.

Basis of accounting: The accompanying statement of expenditures was

prepared principally on the cash basis of accounting, which is a

comprehensive basis of accounting other than generally accepted accounting

principles. Under this method, except for personnel compensation and

benefits, expenditures are recorded when the funds are disbursed by

AOUSC or, for noncash transfers, when charged by AOUSC. Most

personnel compensation and benefits are recorded at the end of the pay

period when earned.
Appendix VII

Statement of Expenditures for Independent 

Counsel Starr/Ray

Page 32 GAO/AIMD-00-310 Independent and Special Counsel

Note 2 - Travel

Travel generally includes expenditures for investigation-related travel paid for

OIC-Starr/Ray personnel, detailees from other federal agencies, such as the

Federal Bureau of Investigation (FBI), contractors, and witnesses.

Note 3 - Rent, communications, and utilities

Approximately $426,000 in office rent is included in rent, communications,

and utilities.

Note 4 - Contractual services

Contractual services primarily consist of expenditures for computer support

and maintenance, office alterations and repairs, and investigators and other

specialists in areas of interest to the investigation.

Note 5 - Acquisition of capital assets

The capital assets expenditures are primarily for ADP equipment. These

assets will remain the property of the federal government at the conclusion of

the investigation.

Note 6 - Administrative services

AOUSC receives an administrative fee equal to 3 percent of OIC

expenditures for performing disbursement and accounting functions for OICStarr/Ray. Payment of these fees generally occurs in the month following the

services. Also included in administrative services are other costs, amounting

to $99,307, incurred by AOUSC in providing administrative guidance and

support to independent counsel offices. These costs were certified by

AOUSC, paid from the independent counsel appropriation, and allocated to

the OIC.

Note 7 - Other costs (unaudited)

Certain costs relating to employees assigned to work with the OIC by the

FBI, the U.S. Marshal Service, and the Department of Justice were financed

through funds appropriated to these agencies and, accordingly, are not

included in the statement of expenditures. These agencies were not

reimbursed for these costs. The schedule below shows the estimated costs

(unaudited) of the assistance provided to the OIC during the 6-month period,

based on information provided by officials of these agencies.
Appendix VII

Statement of Expenditures for Independent 

Counsel Starr/Ray

Page 33 GAO/AIMD-00-310 Independent and Special Counsel

Costs

(unaudited)

Marshal Service

FBI

Other Justice

$89,163

84,378

4,058

$177,599
Page 34 GAO/AIMD-00-310 Independent and Special Counsel

Appendix VIII

Statement of Expenditures for Special 

Counsel Danforth ApendxiVI

JOHN C. DANFORTH

Office of Special Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended March 31, 2000

Personnel compensation and benefits

Travel (note 2)

Rent, communications, and utilities (note 3)

Contractual services (note 4)

Acquisition of capital assets (note 5)

Supplies and materials

Total expenditures

$1,014,353

119,431

370,114

710,880

357,520

17,687

$2,589,985

____________________________________________________

The accompanying notes are an integral part of this statement.
Appendix VIII

Statement of Expenditures for Special 

Counsel Danforth

Page 35 GAO/AIMD-00-310 Independent and Special Counsel

JOHN C. DANFORTH

Office of Special Counsel

Notes to Statement of Expenditures

Note 1 – Accounting policies

Reporting entity: The accompanying statement of expenditures presents the

expenditures of the Office of Special Counsel - John C. Danforth (OSCDanforth) for the 6 months ended March 31, 2000. The statement of

expenditures includes only expenditures made from the permanent, indefinite

appropriation for OSC-Danforth that are processed through the Department of

Justice. On September 9, 1999, the Attorney General appointed John C.

Danforth as a Special Counsel to investigate the government conduct relative to

events at the Branch Davidian complex near Waco, Texas on April 19, 1993.

Basis of accounting: The accompanying statement of expenditures was

prepared principally on the cash basis of accounting, which is a comprehensive

basis of accounting other than generally accepted accounting principles. Under

this method, except for personnel compensation and benefits, expenditures are

recorded when the funds are disbursed by the Department of Justice.

Personnel compensation and benefits are recorded at the end of the pay period

when earned.

Note 2 – Travel

Travel generally includes expenditures for investigation-related travel for OSCDanforth personnel, and detailees from other components of the Department of

Justice.

Note 3 – Rent, communications, and utilities

Approximately $303,000 in office rent is included in rent, communications, and

utilities. This category also includes rental charges for office furniture.

Note 4 – Contractual Services

Contractual services consist primarily of expenditures for litigation support,

investigation services, and other specialists in areas of interest to the

investigation.
Appendix VIII

Statement of Expenditures for Special 

Counsel Danforth

Page 36 GAO/AIMD-00-310 Independent and Special Counsel

Note 5 – Acquisition of capital assets

The capital assets expenditures are primarily for ADP equipment. These

assets will remain the property of the federal government at the conclusion of

the investigation.

Note 6 – Other Costs (Unaudited)

Certain costs relating to employees assigned to work with OSC-Danforth by the

U.S. Postal Service, and the Department of Justice were financed through

funds appropriated to these agencies and, accordingly, are not included in the

statement of expenditures. These agencies were not reimbursed for these

costs. The schedule below shows the estimated costs (unaudited) of the

assistance provided to the OSC-Danforth during the 6-month period, based on

information provided by officials of these agencies

Costs

(unaudited)

Postal Service

Justice

$1,400,000

109,708

$1,509,708

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