a

GAO

United States General Accounting Office

Report to Congressional Committees

March 2002 FINANCIAL AUDIT

Independent and 

Special Counsel 

Expenditures for the 

Six Months Ended 

September 30, 2001

GAO-02-443

Page i GAO-02-443 Independent and Special Counsels

Contents

Letter 1

Auditor’s Report 3

Background 3

Opinion on Statements of Expenditures 4

Consideration of Internal Control 5

Compliance with Laws and Regulations 5

Objectives, Scope, and Methodology 5

Agency Comments 7

Appendixes

Appendix I: Statement of Expenditures for Independent Counsel 

Barrett 10

Appendix II: Statement of Expenditures for Independent Counsel 

Bruce 13

Appendix III: Statement of Expenditures for Indendent Counsel 

Lancaster 16

Appendix IV: Statement of Expenditures for Independent Counsel 

Pearson 19

Appendix V: Statement of Expenditures for Independent Counsel Ray 22

Appendix VI: Statement of Expenditures for Independent Counsel 

Smaltz 26

Appendix VII: Statement of Expenditures for Special Counsel Danforth 29

Abbreviations

AOUSC Administrative Office of the U.S. Courts

FBI Federal Bureau of Investigation

OIC Office of Independent Counsel

OSC Office of Special Counsel
Page ii GAO-02-443 Independent and Special Counsels

Abbreviations

AOUSC Administrative Office of the U.S. Courts

FBI Federal Bureau of Investigation

OIC Office of Independent Counsel

OSC Office of Special Counsel
Page 1 GAO-02-443 Independent and Special Counsels

United States General Accounting Office

Washington, D.C. 20548

A

March 29, 2002 Letr

Congressional Committees

Enclosed is our report on the statements of expenditures of six offices of 

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

ended September 30, 2001. 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 of this report will be made available to 

others upon request. This report will also be available on GAO’s home page 

(www.gao.gov).

If you or your staffs have any questions concerning this report, please 

contact me at (202) 512-9406 or Hodge Herry, assistant director, at (202) 

512-9469. You can also reach us by e-mail at franzelj@gao.gov or 

herryh@gao.gov. Key contributors to this report were Carol Keightley, 

Kwabena Ansong, and Theresa Patrizio.

Jeanette M. Franzel

Acting Director

Financial Management and Assurance
Page 2 GAO-02-443 Independent and Special Counsels
Page 3 GAO-02-443 Independent and Special Counsels

United States General Accounting Office

Washington, D.C. 20548

A

Congressional Committees AudtoRisr’eport

This report presents the results of our audits of expenditures1 reported by 

six offices of independent counsel and one office of special counsel for the 

6 months ended September 30, 2001. 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 the Department of 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 statement 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.

In our audits covering the 6 months ended September 30, 2001, we found 

• the statements of expenditures presented in appendixes I through VII, 

for the offices of independent counsel David M. Barrett, Carol Elder 

Bruce, Ralph I. Lancaster, Daniel S. Pearson, Robert W. Ray, and 

Donald C. Smaltz, and special counsel John C. Danforth, respectively, 

are presented fairly, in all material respects, in conformity with the basis 

of accounting described in note 1 of each counsel’s statement, which is 

principally the cash basis, a comprehensive basis of accounting other 

than U.S. generally accepted accounting principles;

• no material weaknesses in internal control over financial reporting 

(including safeguarding assets) and compliance with laws and 

regulations; and

• no reportable noncompliance with 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)) 

1

The term expenditures as used in this report generally means cash disbursed.
Page 4 GAO-02-443 Independent and Special Counsels

was intended to preserve and promote the accountability and integrity of 

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 from the permanent, indefinite appropriation established to fund 

independent counsel activities. The independent counsel law also 

designates specific responsibilities to the Administrative Office of the U.S. 

Courts (AOUSC) for independent counsels’ administrative support. The 

Department of 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 disclosed these costs in the notes to their 

statements presented in the appendixes to this report.

Opinion on Statements 

of Expenditures

The statements of expenditures including the accompanying notes for the 

offices of independent counsel David M. Barrett, Carol Elder Bruce, 

Ralph I. Lancaster, Daniel S. Pearson, Robert W. Ray, and Donald C. Smaltz, 

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 September 30, 2001, on the basis of accounting described in note 1 to 

each office’s statement.
Page 5 GAO-02-443 Independent and Special Counsels

The counsels prepared their statements of expenditures principally on a 

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

other than U.S. generally accepted accounting principles. The bases of 

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

Consideration of 

Internal Control 

In planning and performing our audits, we considered internal control over 

financial reporting and compliance.2

 We did this to determine our 

procedures for auditing the statements of expenditures, not to express an 

opinion on internal control. Accordingly, we do not express an opinion on 

internal control over financial reporting and compliance. However, for the 

controls we tested, we found no material weaknesses in internal control 

over financial reporting (including safeguarding assets) and compliance for 

the 6-month period ended September 30, 2001. A material weakness is a 

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 

errors, fraud, or noncompliance in amounts that would be material to the 

statements of expenditures may occur and not be detected promptly by 

employees in the normal course of performing their duties. Our internal 

control work would not necessarily disclose 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 

U.S. 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.

Objectives, Scope, and 

Methodology

The 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 a statement of expenditures. The counsels are also 

responsible for establishing, maintaining, and assessing internal control to 

provide reasonable assurance that the following internal control objectives 

are met and for complying with applicable laws and regulations.

2

The objectives of internal control are to provide reasonable assurance that management 

objectives regarding financial reporting (including safeguarding assets) and compliance 

with laws and regulations are achieved.
Page 6 GAO-02-443 Independent and Special Counsels

• Financial reporting: Transactions are properly recorded, processed, and 

summarized to permit the preparation of the statements of expenditures 

in conformity with the bases of accounting described in the notes to 

their statements, and assets are safeguarded against loss from 

unauthorized acquisition, use, or disposition.

• Compliance with laws and regulations: Transactions are executed in 

accordance with laws and regulations that could have a direct and 

material effect on the counsels’ statements of expenditures. 

We are responsible for (1) obtaining reasonable assurance about whether 

the counsels’ statements of expenditures are presented fairly, in all material 

respects, in conformity with the basis of accounting described in the notes 

accompanying their statements of expenditures, (2) obtaining a sufficient 

understanding of internal control over financial reporting and compliance 

to plan the audits, and (3) testing compliance with selected provisions of 

laws and regulations that have a direct and material effect on the 

statements. 

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, except for 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 internal control related to financial reporting (including 

safeguarding assets) and compliance with laws and regulations, and 

(5) tested compliance with 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 controls over financial reporting 

and compliance. Because of inherent limitations in internal control, 

misstatements due to error, fraud, losses, or noncompliance 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. In addition, we caution that our 

internal control testing may not be sufficient for other purposes.

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 laws and regulations that we deemed applicable to the 

statements of expenditures. We caution that noncompliance may occur 
Page 7 GAO-02-443 Independent and Special Counsels

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 paid from 

sources other than 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 and the 

Department of Justice, including the FBI. 

We performed our audits in accordance with U.S. generally accepted 

government auditing standards.

Agency Comments We provided drafts of this report to the six offices of independent counsel, 

the office of the special counsel, the Department of Justice, and AOUSC for 

review and comment. These entities agreed with the facts and conclusions 

in our report.

Jeanette M. Franzel

Acting Director

Financial Management and Assurance

March 8, 2002
Page 8 GAO-02-443 Independent and Special Counsels

List of Committees

The Honorable Robert C. Byrd

Chairman

The Honorable Ted Stevens

Ranking Minority Member

Committee on Appropriations

United States Senate

The Honorable Joseph I. Lieberman

Chairman

The Honorable Fred Thompson

Ranking Minority Member

Committee on Governmental Affairs

United States Senate

The Honorable Patrick J. Leahy

Chairman

The Honorable Orrin G. Hatch

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
Page 9 GAO-02-443 Independent and Special Counsels

The Honorable James F. Sensenbrenner

Chairman

The Honorable John Conyers, Jr.

Ranking Minority Member

Committee on the Judiciary 

House of Representatives
Page 10 GAO-02-443 Independent and Special Counsels

Appendix I

Statement of Expenditures for Independent Apendxies

Counsel Barrett ApendxiI

DAVID M. BARRETT

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended September 30, 2001

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

$453,386

40,675

221,070

309,109

 8,241

 4,982

 __80,617

$1,118,080

____________________________________________________

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

Statement of Expenditures for Independent 

Counsel Barrett

Page 11 GAO-02-443 Independent and Special Counsels

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 September 30, 2001. 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 U.S. 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 and witnesses.

Note 3 - Rent, communications, and utilities

Approximately $158,000 in office rent is included in rent, communications, and

utilities.

Note 4 - Contractual services

Contractual services primarily consist of expenditures for investigators, court

reporters, and services of other experts in areas of interest to the investigation.
Appendix I

Statement of Expenditures for Independent 

Counsel Barrett

Page 12 GAO-02-443 Independent and Special Counsels

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 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 13 GAO-02-443 Independent and Special Counsels

Appendix II

Statement of Expenditures for Independent 

Counsel Bruce ApendxiI

CAROL ELDER BRUCE

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended September 30, 2001

Personnel compensation and benefits

Rent, communications, and utilities

Contractual services and supplies (note 2)

Administrative services (note 3)

Total expenditures

$47,514

1,843

4,371

 _5,985

$59,713

____________________________________________________

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

Statement of Expenditures for Independent 

Counsel Bruce

Page 14 GAO-02-443 Independent and Special Counsels

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 September 30, 2001. 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. Ms. Bruce received the order to terminate her office from

the U.S. Court of Appeals for the District of Columbia Circuit effective March 22,

2001.

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 U.S. 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 - Contractual services and supplies

Contractual services primarily consist of payments to experts in preparing

independent counsel records for archiving.

Note 3 - 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 incurred by AOUSC in providing

administrative guidance and support to independent counsel offices. These
Appendix II

Statement of Expenditures for Independent 

Counsel Bruce

Page 15 GAO-02-443 Independent and Special Counsels

costs were certified by AOUSC, paid from the independent counsel

appropriation, and allocated to the OIC.
Page 16 GAO-02-443 Independent and Special Counsels

Appendix III

Statement of Expenditures for Indendent 

Counsel Lancaster ApendxiI

RALPH I. LANCASTER

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended September 30, 2001

Personnel compensation and benefits

Travel (note 2)

Rent, communications, and utilities (note 3)

Contractual services (note 4)

Supplies and materials

Administrative services (note 5)

Total expenditures

$96,453

 691

23,950

44,608

94

 _13,821

$179,617

____________________________________________________

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

Statement of Expenditures for Indendent 

Counsel Lancaster

Page 17 GAO-02-443 Independent and Special Counsels

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 September 30, 2001. 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. Mr. Lancaster

has submitted his final report (sealed) to the Special Division of the U.S. Court of

Appeals for the District of Columbia. Mr. Lancaster received the order to

terminate his office from the U.S. Court of Appeals for the District of Columbia

effective July 11, 2001.

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 U.S. 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.

Note 3 - Rent, communications, and utilities

Approximately $19,800 in office rent is included in rent, communications, and

utilities.
Appendix III

Statement of Expenditures for Indendent 

Counsel Lancaster

Page 18 GAO-02-443 Independent and Special Counsels

Note 4 - Contractual services

Contractual services represent expenditures for maintenance and repair of

equipment and for services of experts and other specialists in areas of interest to

the investigation.

Note 5 - 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 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 19 GAO-02-443 Independent and Special Counsels

Appendix IV

Statement of Expenditures for Independent 

Counsel Pearson ApendxiIV

DANIEL S. PEARSON

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended September 30, 2001

Personnel compensation and benefits

Rent, communications, and utilities (note 2)

Contractual services (note 3)

Administrative services (note 4)

Total expenditures

$71,210

26,673

4,687

 _7,496

$110,066

____________________________________________________

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

Statement of Expenditures for Independent 

Counsel Pearson

Page 20 GAO-02-443 Independent and Special Counsels

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 September 30, 2001. 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 and to respond to issues related to the

investigation.

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 U.S. 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 $24,000 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.
Appendix IV

Statement of Expenditures for Independent 

Counsel Pearson

Page 21 GAO-02-443 Independent and Special Counsels

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.

Also included in administrative services are other costs 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 22 GAO-02-443 Independent and Special Counsels

Appendix V

Statement of Expenditures for Independent 

Counsel Ray ApendxiV

ROBERT W. RAY

Office of Independent Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended September 30, 2001

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 (note 6)

Administrative services (note 7)

Total expenditures

$1,279,071

273,172

518,718

1,349,379

16,648

37,737

 _209,122

$3,683,847

____________________________________________________

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

Statement of Expenditures for Independent 

Counsel Ray

Page 23 GAO-02-443 Independent and Special Counsels

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-Robert W. Ray (OIC-Ray) for

the 6 months ended September 30, 2001. 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.

Kenneth W. Starr (OIC-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 (Whitewater), 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 (commonly referred to as the Lewinsky matter).

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-topersonnel-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. Further, on June 22, 2000, Mr. Ray

submitted to the court a final report on the White House travel matter. On

October 18, 2000, the court ordered the public release of that report. On

January 19, 2001, Mr. Ray announced the conclusion of all current matters

before the office of independent counsel.
Appendix V

Statement of Expenditures for Independent 

Counsel Ray

Page 24 GAO-02-443 Independent and Special Counsels

On August 21, 2001, the Special Division of the U.S. Court of Appeals for the

District of Columbia Circuit, at the request of the independent counsel, ordered

the termination of the investigative functions of the independent counsel as of

September 30, 2001, except to the extent necessary to conclude any remaining

noninvestigative and nonprosecutorial tasks required by statute. On March 2,

2001, and May 18, 2001, Mr. Ray submitted to the court the final reports on the

Whitewater and Lewinsky matters, respectively. On March 6, 2002, the court

ordered the publication and release of the Lewinsky report. On March 20, 2002,

the court ordered the publication and release of the Whitewater report.

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 U.S. 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-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 $396,200 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 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 automated data processing

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

the conclusion of the investigation.
Appendix V

Statement of Expenditures for Independent 

Counsel Ray

Page 25 GAO-02-443 Independent and Special Counsels

Note 6 - Supplies and materials

The supplies and materials expenditures are primarily for office supplies used in

the archiving of records.

Note 7 - Administrative services

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

for performing disbursement and accounting functions for OIC-Ray. Payment of

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

administrative services are other costs 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 8 - 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 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

$85,930

 __ 284

$86,214
Page 26 GAO-02-443 Independent and Special Counsels

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 September 30, 2001

Personnel compensation and benefits

Travel (note 2)

Rent, communications, and utilities (note 3)

Contractual services (note 4)

Supplies and materials

Administrative services (note 5)

Total expenditures

$297,305

 5,113

98,819

25,394

2,747

 _39,707

$469,085

____________________________________________________

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

Statement of Expenditures for Independent 

Counsel Smaltz

Page 27 GAO-02-443 Independent and Special Counsels

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 September 30, 2001. 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. Mr. Smaltz submitted his final report to the

Special Division of the U.S. Court of Appeals for the District of Columbia

Circuit on January 30, 2001. The report was published on October 25, 2001.

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 U.S. 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.

Note 3 - Rent, communications, and utilities

Approximately $70,300 in office rent is included in rent, communications, and

utilities.
Appendix VI

Statement of Expenditures for Independent 

Counsel Smaltz

Page 28 GAO-02-443 Independent and Special Counsels

Note 4 - Contractual services

Contractual services primarily consist of expenditures for repair and

maintenance of equipment and for services of experts and other specialists

in areas of interest to the investigation.

Note 5 - Administrative services

AOUSC receives an administrative fee equal to 3 percent of OIC

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

services. Also included in administrative services are other costs 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 6 - Receipts (unaudited)

As of September 30, 2001, OIC-Smaltz’s convictions and referrals have

resulted in the imposition of $11,803,082 in criminal fines, civil penalties,

damages, and reimbursement of costs. Approximately $10,905,536 of that

amount has been received and deposited into the U.S. Treasury.
Page 29 GAO-02-443 Independent and Special Counsels

Appendix VII

Statement of Expenditures for Special 

Counsel Danforth ApendxiVI

JOHN C. DANFORTH

Office of Special Counsel

Statement of Expenditures

(Cash basis)

Six Months Ended September 30, 2001

Personnel compensation and benefits

Travel (note 2)

Rent, communications, and utilities (note 3)

Contractual services (note 4)

Supplies and materials

Administrative services (note 5)

Total expenditures

$ 24,787

362

159,844

505,829

282

__1,267

$692,371

____________________________________________________

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

Statement of Expenditures for Special 

Counsel Danforth

Page 30 GAO-02-443 Independent and Special Counsels

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 (OSC-Danforth)

for the 6 months ended September 30, 2001. 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. Mr. Danforth

submitted his final report to the deputy attorney general concerning the 1993

confrontation at the Branch Davidian complex on November 8, 2000.

Mr. Danforth officially closed his office in March 2001.

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 U.S. 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

OSC-Danforth personnel and detailees from other components of the

Department of Justice.

Note 3 - Rent, communications, and utilities

Approximately $132,500 in office rent is included in rent, communications, and

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

Statement of Expenditures for Special 

Counsel Danforth

Page 31 GAO-02-443 Independent and Special Counsels

Note 4 - Contractual services

Contractual services consist primarily of expenditures for contract guard

service, litigation support, automated legal research, and other specialists in

areas of interest to the investigation.

Note 5 - Administrative services

Administrative services represent Department of Justice expenditures for

performing administrative and payroll functions for OSC-Danforth.

(194083)
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