U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

79–010 

" ! SENATE 115TH CONGRESS

2d Session 

REPORT

2018

115–331 

Calendar No. 563 

GOOD ACCOUNTING OBLIGATION IN 

GOVERNMENT ACT 

R E P O R T 

OF THE

COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

TO ACCOMPANY

S. 2276 

TO REQUIRE AGENCIES TO SUBMIT REPORTS ON OUTSTANDING 

RECOMMENDATIONS IN THE ANNUAL BUDGET JUSTIFICATION 

SUBMITTED TO CONGRESS 

SEPTEMBER 4, 2018.—Ordered to be printed 


E:\Seals\Congress.#13
(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

RON JOHNSON, Wisconsin, Chairman 

JOHN MCCAIN, Arizona 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

JAMES LANKFORD, Oklahoma 

MICHAEL B. ENZI, Wyoming 

JOHN HOEVEN, North Dakota 

STEVE DAINES, Montana 

CLAIRE MCCASKILL, Missouri 

THOMAS R. CARPER, Delaware 

HEIDI HEITKAMP, North Dakota 

GARY C. PETERS, Michigan 

MAGGIE HASSAN, New Hampshire 

KAMALA D. HARRIS, California 

DOUG JONES, Alabama 

CHRISTOPHER R. HIXON, Staff Director 

GABRIELLE D’ADAMO SINGER, Chief Counsel 

DANIEL J. SPINO, Research Assistant 

MARGARET E. DAUM, Minority Staff Director 

CHARLES A. MOSKOWITZ, Minority Senior Legislative Counsel 

KATHERINE C. SYBENGA, Minority Counsel 

LAURA W. KILBRIDE, Chief Clerk 

Calendar No. 563 

115TH CONGRESS SENATE REPORT " ! 2d Session 115–331 

GOOD ACCOUNTING OBLIGATION IN GOVERNMENT ACT 

SEPTEMBER 4, 2018.—Ordered to be printed 

Mr. JOHNSON, from the Committee on Homeland Security and 

Governmental Affairs, submitted the following 

R E P O R T 

[To accompany S. 2276] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Homeland Security and Governmental Affairs, 

to which was referred the bill (S. 2276), to require agencies to submit reports on outstanding recommendations in the annual budget 

justification submitted to Congress, having considered the same, 

reports favorably thereon with an amendment in the nature of a 

substitute and recommends that the bill, as amended, do pass. 

CONTENTS 

Page 

I. Purpose and Summary .................................................................................. 1 

II. Background and Need for the Legislation ................................................... 1 

III. Legislative History ......................................................................................... 3 

IV. Section-by-Section Analysis .......................................................................... 3 

V. Evaluation of Regulatory Impact .................................................................. 4 

VI. Congressional Budget Office Cost Estimate ................................................ 4 

VII. Changes in Existing Law Made by the Bill, as Reported ........................... 5 

I. PURPOSE AND SUMMARY

S. 2276, the Good Accounting Obligation in Government (GAO– 

IG) Act requires Federal agencies to submit reports on outstanding 

recommendations from the Government Accountability Office 

(GAO) and agency’s Office of Inspector General (OIG) in the annual 

budget justification submitted to Congress. 

II. BACKGROUND AND THE NEED FOR LEGISLATION

GAO and OIGs serve as important partners to Congress and Federal agencies. The GAO IG Act looks to strengthen those relationVerDate Sep 11 2014 00:55 Sep 06, 2018 Jkt 079010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR331.XXX SR331
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1Pub. L. No. 67–13 title III. 

2 Id. 

3 U.S. Gov’t Accountability Office, Presidential and Congressional Transition, Priority Recommendations (July 17, 2018), available at https://www.gao.gov/resources/presidential-transition/priority-recommendations. 4Pub. L. No. 95–452. 

5 Id. 

6 Project on Government Oversight, Where Are All the Watchdogs? (2012), available at http:// 

www.pogo.org/tools-and-data/ig-watchdogs/go-igi-20120208-where-are-all-the-watchdogs-inspector-general-vacancies1.html. 7Pub. L. No. 95–452. 

8 U.S. Gov’t Accountability Office, Reports & Testimonies, Recommendations Database (July 

16, 2018), available at https://www.gao.gov/recommendations. 9Staff of S. Comm. On Homeland Sec. & Governmental Affairs, and S. Comm. on the Judiciary, 114th Cong., Empowering Inspectors General: Supporting the IG Community Could Save 

Billions for American Taxpayers (Oct. 17, 2016), available at https://www.hsgac.senate.gov/imo/ 

media/doc/IG%20Open%20Recs%20Staff%20Report_FINAL%20(2).pdf. 10Letter from Danielle Brian, Executive Director, Project on Gov’t Oversight, to Representatives Walker, Bishop, Duncan, Fitzpatrick, and Palmer (June 12, 2018), available at http:// 

ships by requiring Federal agencies to report what actions they 

have taken to address open and unimplemented GAO and OIG recommendations. 

GAO is an independent agency that works for Congress with the 

statutory requirement of securing greater economy and efficiency in 

the business of public service.1 GAO conducts financial audits, program reviews, and other services to help Federal agencies ensure 

efficiency in public expenditures.2 GAO’s recommendations, when 

implemented, often save taxpayer dollars by eliminating areas of 

mismanagement, duplication, and waste.3

The first OIGs were established by Congress by the Inspector 

General Act of 1978.4 OIGs promote efficiency and prevent, detect, 

and report fraud and abuse.5 OIGs are the watchdogs of their respective agencies that review programs, while providing recommendations for improvement.6 OIGs report to Congress on a 

semi-annual basis on the number of recommendations they have 

made to their respective agency that have not been implemented, 

including the impact they may have on an agency’s operations.7

As of July 16, 2018, GAO has 4,832 open recommendations to 

agencies.8 According to a 2016 report issued by majority staffs for 

the Committee and the Senate Committee on the Judiciary, in 2016 

there were 15,222 open and unimplemented OIG recommendations 

which totaled over $87 billion in potential cost savings.9

While both GAO and the OIGs’ report on open and 

unimplemented recommendations, agencies are not required to do 

so. To shine a light on agencies’ failures to act on GAO and OIG 

recommendations, S. 2276 requires agencies to include a listing of 

open, unimplemented GAO and OIG recommendations in each 

agency’s annual budget justification submitted to Congress. Agencies must also provide explanations for not implementing each recommendation. By disclosing open recommendations and being required to explain the lack of implementation in an agency’s budget 

request, agencies will be held more accountable for unimplemented 

recommendations and Congress and the public can more readily 

scrutinize an agency’s funding request in light of unfulfilled efficiency improvements that may yield cost savings. Private watchdog 

the Project on Government Oversight supports the GAO–IG Act, 

stating that the legislation ‘‘could inspire agencies to incorporate 

important recommendations that have languished on the sidelines.’’ 10

3 

www.pogo.org/our-work/letters/2018/pogo-supports-house-bill-stressing-inspector-general-andgao-recommendations.html. 11 U.S. Gov’t Accountability Office, Findings and Recommendations for 60 day Letters (Feb. 

2, 2017) on file with S. Comm. On Homeland Sec. and Governmental Affairs. 

S. 2276 also extends the timeline from 60 days to 180 days for 

agencies to provide statements to Congress on a GAO report pertaining to the agency. This allows agencies more time to plan substantive action in response to GAO’s recommendations and will result in responses that are more useful to congressional committees 

and GAO in following up on agencies’ implementation of the recommendations.11

III. LEGISLATIVE HISTORY

Senator Todd Young (R–IN) introduced S. 2276, the Good Accounting Obligation in Government (GAO–IG) Act, on January 4, 

2018, with Senator Elizabeth Warren (D–MA). The bill was referred to the Committee on Homeland Security and Governmental 

Affairs. 

The Committee considered S. 2276 at a business meeting on 

June 13, 2018. During the business meeting, an amendment in the 

nature of a substitute was offered by Chairman Ron Johnson to 

strike the 60-day requirement for agency statements concerning 

GAO’s work and increase it to 180 days. Both the Johnson substitute amendment and the bill, as amended, were ordered reported 

favorably en bloc by voice vote with Senators Johnson, Portman, 

Lankford, Enzi, McCaskill, Carper, Peters, Hassan, Harris, and 

Jones present. 

IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title 

This section establishes the bill’s short title as the ‘‘Good Accounting Obligation in Government Act’’ or the ‘‘GAO–IG Act.’’ 

Section 2. Reports on outstanding Government Accountability Office 

and Inspector General recommendations 

Subsection (a) establishes that the term ‘‘agency’’ refers to a designated Federal entity defined in section 8G(a)(2) of the Inspector 

General (IG) Act of 1978, as well as an establishment defined in 

section 12(2) of the IG Act of 1978. 

Subsection (b) explains how agencies have to report 

unimplemented GAO recommendations, and OIG recommendations 

with no final actions. It also requires agencies to present a contingency plan for unfulfilled GAO and OIG recommendations that includes a timeline for completion or a justification for not implementing the recommendation. 

Subsection (c) states that each agency shall submit a copy of this 

information to GAO and its OIG. 

Section 3. Timeline for agency statements 

This section increases the amount of time agencies have to provide statements to GAO reports from 60 days to 180 days. 

4 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to the requirements of paragraph 11(b) of rule XXVI of 

the Standing Rules of the Senate, the Committee has considered 

the regulatory impact of this bill and determined that the bill will 

have no regulatory impact within the meaning of the rules. The 

Committee agrees with the Congressional Budget Office’s statement that the bill contains no intergovernmental or private-sector 

mandates as defined in the Unfunded Mandates Reform Act 

(UMRA) and would impose no costs on state, local, or tribal governments. 

VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

JUNE 21, 2018. 

Hon. RON JOHNSON, 

Chairman, Committee on Homeland Security and Governmental Affairs, U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 2276, the GAO–IG Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

KEITH HALL, 

Director. 

Enclosure. 

S. 2276—GAO–IG Act 

S. 2276 would amend federal law to require all agencies to report 

on the status of any Government Accountability Office (GAO) and 

Office of Inspector General (IG) recommendations concerning their 

agencies in annual budget justification documents. That report 

would include information on the status of implementing each recommendation and an explanation of why any recommendations 

have not been implemented. 

GAO spent approximately $600 million dollars in 2017 to investigate how the federal government spends its funds and produced 

more than 1,400 recommendations to improve government operations. In addition, more than 70 federal IGs spend about $2.5 billion a year to detect and deter fraud, waste, and abuse. In fiscal 

year 2016, IGs produced over 5,000 audit, investigation, and evaluation reports. CBO is not aware of any comprehensive information 

on the status of the recommendations those offices issue. However, 

information from GAO and IGs indicates that some agencies track 

which of their recommendations have not been implemented. CBO 

expects, however, that additional administrative work would be 

necessary to report on all open recommendations. 

Based on the type and scope of the necessary work, CBO estimates that implementing the bill would require 15 percent of the 

time of one employee and cost around $20,000 per agency each 

year. That spending would be subject to the availability of appropriated funds and would amount to $5 million over the 2019–2023 

period. 

Enacting S. 2276 could affect direct spending by agencies that 

are not funded through annual appropriations; therefore, pay-asVerDate Sep 11 2014 00:55 Sep 06, 2018 Jkt 079010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\SR331.XXX SR331
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you-go procedures apply. CBO estimates, however, that any net increase in spending by those agencies would be negligible. Enacting 

the bill would not affect revenues. 

CBO estimates that enacting S. 2276 would not increase net direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2029. 

On June 15, 2018, CBO transmitted a cost estimate for H.R. 

5415, the GAO–IG Act as ordered reported by the House Committee on Oversight and Government Reform on May 23, 2018. On 

March 28, 2018, CBO transmitted a cost estimate for S. 2178, the 

Inspector General Recommendation Transparency Act of 2018 as 

ordered reported by the Senate Committee on Homeland Security 

and Governmental Affairs on February 14, 2018. The three pieces 

of legislation are similar and CBO’s estimate of their costs are the 

same. 

S. 2276 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

The CBO staff contact for this estimate is Matthew Pickford. The 

estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows: (existing law proposed to be omitted 

is enclosed in brackets, new matter is printed in italic, and existing 

law in which no change is proposed is shown in roman: 

UNITED STATES CODE 

* * * * * * * 

TITLE 31—MONEY AND FINANCE 

* * * * * * * 

CHAPTER 7—GOVERNMENT ACCOUNTABILITY OFFICE 

* * * * * * * 

Subchapter II—General Duties and Powers 

* * * * * * * 

SEC. 720. AGENCY REPORTS. 

(a) * * * 

(b) When the Comptroller General makes a report that includes 

a recommendation to the head of an agency, the head of the agency 

shall submit a written statement on action taken or planned on the 

recommendation by the head of the agency. The statement shall be 

submitted to— 

(1) the Committee on Homeland Security and Governmental 

Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, the congressional committees with jurisdiction over the agency program or 

6 

activity that is the subject of the recommendation, and the 

Government Accountability Office before the ø61st¿ 181st day 

after the date of the report; and 

(2) the Committees on Appropriations of both Houses of Congress in the first request for appropriations submitted more 

than ø60¿ 180 days after the date of the report. 

* * * * * * * 

Æ