II

105TH CONGRESS

2D SESSION S. 2167

To amend the Inspector General Act of 1978 (5 U.S.C. App.) to increase

the efficiency and accountability of Offices of Inspector General within

Federal departments, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 11, 1998

Ms. COLLINS (for herself and Mr. GRASSLEY) introduced the following bill;

which was read twice and referred to the Committee on Governmental Affairs

A BILL

To amend the Inspector General Act of 1978 (5 U.S.C.

App.) to increase the efficiency and accountability of

Offices of Inspector General within Federal departments,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Inspector General Act

5 Amendments of 1998’’.

6 SEC. 2. APPOINTMENT AND REMOVAL OF OFFICERS.

7 (a) IN GENERAL.—Section 3(a) of the Inspector Gen8 eral Act of 1978 (5 U.S.C. App.) is amended—
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1 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

2 (2) by adding at the end the following new

3 paragraph:

4 ‘‘(2) Each appointment under this subsection shall be

5 for a term of 9 years. An individual may serve more than

6 1 term.’’.

7 (b) EFFECTIVE DATE.—The amendment made by

8 this section shall take effect on the date of enactment of

9 this Act and shall apply only to an appointment made on

10 or after such date.

11 SEC. 3. EXTERNAL REVIEWS.

12 (a) IN GENERAL.—Section 4 of the Inspector General

13 Act of 1978 (5 U.S.C. App.) is amended by inserting at

14 the end the following:

15 ‘‘(e)(1)(A) Not less than every 3 years an external

16 review shall be conducted of each Office defined under sec17 tions 11(4) and 8G(5).

18 ‘‘(B) The Inspector General of each Office defined

19 under sections 11(4) and 8G(5) shall contract with an en20 tity described under subparagraph (C) for the conduct of

21 the review.

22 ‘‘(C) An entity referred to under subparagraph (B)

23 is—

24 ‘‘(i) the General Accounting Office;
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1 ‘‘(ii) a disinterested Inspector General of an2 other establishment, or designated Federal entity; or

3 ‘‘(iii) an appropriate private entity.

4 ‘‘(D)(i) If an Inspector General contracts with a pri5 vate entity under this subsection, the private entity shall

6 be contracted in accordance with section 303 of the Fed7 eral Property and Administrative Services Act of 1949 (41

8 U.S.C. 253).

9 ‘‘(ii) An Inspector General who contracts with a dis10 interested Inspector General for a review under this sub11 section may not contract to conduct a review under this

12 subsection of the establishment or entity of such disin13 terested Inspector General at any time.

14 ‘‘(2) At a minimum, an external review under this

15 subsection shall evaluate whether the Office of Inspector

16 General properly manages and controls—

17 ‘‘(A) contracts awarded by the Office of Inspec18 tor General, including a determination of whether—

19 ‘‘(i) procedures used to procure contracts

20 are in accordance with applicable laws and reg21 ulations; and

22 ‘‘(ii) costs incurred are reasonable and al23 lowable under the terms of each contract;

24 ‘‘(B) appropriated funds, including a deter25 mination of whether training and travel funds are
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1 expended in accordance with applicable laws and

2 regulations; and

3 ‘‘(C) personnel actions, including a determina4 tion of whether hiring and promotion practices used

5 and performance awards issued are in accordance

6 with applicable laws and regulations.

7 ‘‘(3) Not later than 30 days after the completion of

8 an external review, a report of the results shall be submit9 ted to the head of the establishment and simultaneously

10 to the appropriate committees or subcommittees of Con11 gress.’’.

12 (b) TECHNICAL AND CONFORMING AMENDMENT.—

13 The section heading for section 4 of the Inspector General

14 Act of 1978 (5 U.S.C. App.) is amended to read as follows:

15 ‘‘DUTIES AND RESPONSIBILITIES; REPORT OF CRIMINAL

16 VIOLATIONS TO ATTORNEY GENERAL; EXTERNAL RE17 VIEWS’’.

18 SEC. 4. ANNUAL REPORTS.

19 (a) IN GENERAL.—Section 5(a) of the Inspector Gen20 eral Act of 1978 (5 U.S.C. App.) is amended—

21 (1) by striking the first sentence and inserting

22 ‘‘Each Inspector General shall, not later than Octo23 ber 31 of each year, prepare annual reports summa24 rizing the activities and accomplishments of the Of25 fice during the immediately preceding 12-month pe26 riod ending September 30.’’;
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1 (2) by striking paragraphs (1) through (12)

2 and inserting the following:

3 ‘‘(1) a summary of the program areas within

4 the establishment identified by the Inspector General

5 as high risk because of vulnerabilities to waste,

6 fraud, abuse, and mismanagement;

7 ‘‘(2) a description of the most significant audits

8 and investigations (administrative, civil, and crimi9 nal) completed during the reporting period;

10 ‘‘(3) a summary of each report made to the

11 head of the establishment under section 6(b)(2) dur12 ing the reporting period;

13 ‘‘(4) a table showing—

14 ‘‘(A)(i) the total number of audit reports

15 issued by the Office of Inspector General; and

16 ‘‘(ii) the financial benefits associated with

17 the reports segregated by category, such as

18 budget reductions, costs avoided, questioned

19 costs, and revenue enhancements; and

20 ‘‘(B) corrective actions taken and program

21 improvements made during the reporting period

22 in response to either an Office of Inspector

23 General audit finding or recommendation (ex24 cluding any recommendation included under
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1 subparagraph (A) with respect to such correc2 tive actions);

3 ‘‘(5) a table showing—

4 ‘‘(A) the judicial and administrative ac5 tions associated with investigations conducted

6 by the Office of Inspector General;

7 ‘‘(B) the number of—

8 ‘‘(i) cases referred for criminal pros9 ecution, civil remedies, or administrative

10 actions;

11 ‘‘(ii) cases presented but declined for

12 prosecution, segregated by criminal and

13 civil;

14 ‘‘(iii) cases accepted for prosecution,

15 segregated by criminal and civil;

16 ‘‘(iv) defendants indicted;

17 ‘‘(v) defendants convicted;

18 ‘‘(vi) defendants acquitted or charges

19 dismissed after indictment;

20 ‘‘(vii) defendants sentenced to terms

21 of imprisonment;

22 ‘‘(viii) defendants sentenced to terms

23 of probation; and
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1 ‘‘(ix) suspensions, disbarments, exclu2 sions, sanctions, or some other similar ad3 ministrative action; and

4 ‘‘(C) the total amount of fines, restitu5 tions, and recoveries;

6 ‘‘(6) a description of the organization and man7 agement structure of the Office of Inspector Gen8 eral, including—

9 ‘‘(A) an organization chart showing the

10 major components of the Office;

11 ‘‘(B) a statistical table showing the num12 ber of authorized full-time equivalent positions

13 segregated by component and by headquarters

14 and field office; and

15 ‘‘(C) the amount of funding received in

16 prior and current fiscal years;

17 ‘‘(7) a table showing—

18 ‘‘(A) the number of contracts, and associ19 ated dollar value, awarded on a noncompetitive

20 basis by the Office of Inspector General; and

21 ‘‘(B) with respect to any individual con22 tract valued over $100,000, awarded on a non23 competitive basis—

24 ‘‘(i) the name of the contractor;

25 ‘‘(ii) all services provided;
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1 ‘‘(iii) the time period of the contract;

2 and

3 ‘‘(iv) the dollar amount of the con4 tract;

5 ‘‘(8)(A) a summary of each audit report issued

6 in previous reporting periods for which no manage7 ment decision has been made by the end of the re8 porting period (including the date and title of each

9 such report);

10 ‘‘(B) an explanation of the reasons such man11 agement decision has not been made; and

12 ‘‘(C) a statement concerning the desired time13 table for achieving a management decision on each

14 such report;’’;

15 (3) by redesignating paragraph (13) as para16 graph (9);

17 (4) in paragraph (9) (as redesignated by para18 graph (3) of this subsection) by striking the period

19 and inserting a semicolon and ‘‘and’’; and

20 (5) by adding at the end the following new

21 paragraph:

22 ‘‘(10) any other information that the Inspector

23 General determines appropriate to include in the an24 nual report.’’.

25 (b) TECHNICAL AND CONFORMING AMENDMENTS.—
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1 (1) Section 4(a)(2) of the Inspector General Act

2 of 1978 (5 U.S.C. App.) is amended by striking

3 ‘‘semiannual’’ and inserting ‘‘annual’’.

4 (2) Section 5 of the Inspector General Act of

5 1978 (5 U.S.C. App.) is amended—

6 (A) in subsection (b)—

7 (i) by striking ‘‘Semiannual’’ and in8 serting ‘‘Annual’’; and

9 (ii) by striking ‘‘April 30 and’’; and

10 (B) in subsection (c)—

11 (i) in the first sentence by striking

12 ‘‘semiannual’’ and inserting ‘‘annual’’; and

13 (ii) in the second sentence by striking

14 ‘‘semiannual’’ and inserting ‘‘annual’’.

15 (3) Section 8(f) of the Inspector General Act of

16 1978 (5 U.S.C. App.) is amended by striking ‘‘semi17 annual’’ and inserting ‘‘annual’’.

18 (4) Section 8A(c) of the Inspector General Act

19 of 1978 (5 U.S.C. App.) is amended by striking

20 ‘‘semiannual’’ and inserting ‘‘annual’’.

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

22 SCHEDULE.

23 (a) LEVEL IV POSITIONS.—Section 5315 of title 5,

24 United States Code, is amended by striking each item re25 lating to the following positions:
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1 (1) Inspector General, Department of Edu2 cation.

3 (2) Inspector General, Department of Energy.

4 (3) Inspector General, Department of Health

5 and Human Services.

6 (4) Inspector General, Department of Agri7 culture.

8 (5) Inspector General, Department of Housing

9 and Urban Development.

10 (6) Inspector General, Department of Labor.

11 (7) Inspector General, Department of Trans12 portation.

13 (8) Inspector General, Department of Veterans

14 Affairs.

15 (9) Inspector General, Department of Defense.

16 (10) Inspector General, United States Informa17 tion Agency.

18 (11) Inspector General, Department of State.

19 (12) Inspector General, Department of Com20 merce.

21 (13) Inspector General, Department of the In22 terior.

23 (14) Inspector General, Department of Justice.

24 (15) Inspector General, Department of the

25 Treasury.
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1 (16) Inspector General, Agency for Inter2 national Development.

3 (17) Inspector General, Environmental Protec4 tion Agency.

5 (18) Inspector General, Federal Emergency

6 Management Agency.

7 (19) Inspector General, General Services Ad8 ministration.

9 (20) Inspector General, National Aeronautics

10 and Space Administration.

11 (21) Inspector General, Nuclear Regulatory

12 Commission.

13 (22) Inspector General, Office of Personnel

14 Management.

15 (23) Inspector General, Railroad Retirement

16 Board.

17 (24) Inspector General, Small Business Admin18 istration.

19 (25) Inspector General, Federal Deposit Insur20 ance Corporation.

21 (26) Inspector General, Resolution Trust Cor22 poration.

23 (27) Inspector General, Central Intelligence

24 Agency.
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1 (28) Inspector General, Social Security Admin2 istration.

3 (29) Inspector General, United States Postal

4 Service.

5 (b) LEVEL III POSITIONS.—Section 5314 of title 5,

6 United States Code, is amended by adding at the end the

7 following:

8 ‘‘Inspector General, Department of Education.

9 ‘‘Inspector General, Department of Energy.

10 ‘‘Inspector General, Department of Health and

11 Human Services.

12 ‘‘Inspector General, Department of Agriculture.

13 ‘‘Inspector General, Department of Housing

14 and Urban Development.

15 ‘‘Inspector General, Department of Labor.

16 ‘‘Inspector General, Department of Transpor17 tation.

18 ‘‘Inspector General, Department of Veterans

19 Affairs.

20 ‘‘Inspector General, Department of Defense.

21 ‘‘Inspector General, Department of State.

22 ‘‘Inspector General, Department of Commerce.

23 ‘‘Inspector General, Department of the Interior.

24 ‘‘Inspector General, Department of Justice.
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1 ‘‘Inspector General, Department of the Treas2 ury.

3 ‘‘Inspector General, Agency for International

4 Development.

5 ‘‘Inspector General, Corporation for Community

6 and National Service.

7 ‘‘Inspector General, Environmental Protection

8 Agency.

9 ‘‘Inspector General, Federal Emergency Man10 agement Agency.

11 ‘‘Inspector General, General Services Adminis12 tration.

13 ‘‘Inspector General, National Aeronautics and

14 Space Administration.

15 ‘‘Inspector General, Nuclear Regulatory Com16 mission.

17 ‘‘Inspector General, Office of Personnel Man18 agement.

19 ‘‘Inspector General, Railroad Retirement

20 Board.

21 ‘‘Inspector General, Small Business Administra22 tion.

23 ‘‘Inspector General, Federal Deposit Insurance

24 Corporation.
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1 ‘‘Inspector General, Central Intelligence Agen2 cy.

3 ‘‘Inspector General, Social Security Administra4 tion.

5 ‘‘Inspector General, United States Postal Serv6 ice.’’.

7 SEC. 6. OFFICES OF INSPECTOR GENERAL IN CERTAIN DES8 IGNATED FEDERAL ENTITIES.

9 (a) TRANSFER OF FUNCTIONS.—Section 9(a)(1) of

10 the Inspector General Act of 1978 is amended—

11 (1) in subparagraph (V) by striking ‘‘and’’ after

12 the semicolon;

13 (2) in subparagraph (W) by striking ‘‘and’’

14 after the semicolon; and

15 (3) by adding after subparagraph (W) the fol16 lowing:

17 ‘‘(X) of the Office of Inspector General of

18 the Department of Education, the Offices of In19 spector General of the Corporation for Public

20 Broadcasting, National Endowment for the

21 Arts, National Endowment for the Humanities,

22 and the Smithsonian Institution, effective 30

23 days after the date of enactment of the Inspec24 tor General Act Amendments of 1998;
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1 ‘‘(Y) of the Office of Inspector General of

2 the Department of Commerce, the Office of In3 spector General of the National Science Foun4 dation, effective 30 days after the date of enact5 ment of the Inspector General Act Amendments

6 of 1998;

7 ‘‘(Z) of the Office of Inspector General of

8 the General Services Administration, the Office

9 of Inspector General of the National Archives

10 and Records Administration, effective 30 days

11 after the date of enactment of the Inspector

12 General Act Amendments of 1998; and

13 ‘‘(AA) of the Office of Inspector General of

14 the Department of State, the Office of Inspec15 tor General of the Peace Corps, effective 30

16 days after the date of enactment of the Inspec17 tor General Act Amendments of 1998; and’’.

18 (b) ADMINISTRATIVE PROVISIONS.—

19 (1) TERMINATION OF OFFICES.—The Office of

20 Inspector General of each designated Federal entity

21 transferred under subsection (a) is terminated.

22 (2) INCUMBENTS.—The individual who is the

23 Inspector General of a designated Federal entity

24 transferred under subsection (a)—
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1 (A) shall be transferred to the Office of In2 spector General of the applicable establishment;

3 (B) shall be an employee of such Office

4 under the direction of the Inspector General of

5 the applicable establishment; and

6 (C) shall continue to be compensated at

7 not less than the rate provided for before such

8 transfer, for at least 1 year after the date of

9 such transfer.

10 (3) PERSONNEL AND ASSETS.—Section 9 (b)

11 and (c) of the Inspector General Act of 1978 (5

12 U.S.C. App.) shall apply to the transfers made by

13 the amendments under subsection (a) of this section.

14 (c) FORMER DESIGNATED FEDERAL ENTITY.—

15 (1) IN GENERAL.—Section 8G(a)(2) of the In16 spector General Act of 1978 (5 U.S.C. App.) is

17 amended by striking ‘‘the Corporation for Public

18 Broadcasting, the Equal Employment Opportunity

19 Commission, the Farm Credit Administration, the

20 Federal Communications Commission, the Federal

21 Election Commission, the Federal Housing Finance

22 Board, the Federal Labor Relations Authority, the

23 Federal Maritime Commission, the Federal Trade

24 Commission, the Legal Services Corporation, the

25 National Archives and Records Administration, the
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1 National Credit Union Administration, the National

2 Endowment for the Arts, the National Endowment

3 for the Humanities, the National Labor Relations

4 Board, the National Science Foundation, the Pan5 ama Canal Commission, the Peace Corps, the Pen6 sion Benefit Guaranty Corporation, the Securities

7 and Exchange Commission, the Smithsonian Institu8 tion,’’ and inserting ‘‘the Equal Employment Oppor9 tunity Commission, the Farm Credit Administration,

10 the Federal Communications Commission, the Fed11 eral Election Commission, the Federal Housing Fi12 nance Board, the Federal Labor Relations Author13 ity, the Federal Maritime Commission, the Federal

14 Trade Commission, the Legal Services Corporation,

15 the National Credit Union Administration, the Na16 tional Labor Relations Board, the Panama Canal

17 Commission, the Pension Benefit Guaranty Corpora18 tion, the Securities and Exchange Commission,’’.

19 (2) NATIONAL SCIENCE FOUNDATION.—Section

20 8G(a)(4) of the Inspector General Act of 1978 (5

21 U.S.C. App.) is amended by striking ‘‘, except that

22 with respect to the National Science Foundation,

23 such term means the National Science Board’’.
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1 (d) AMENDMENTS RELATING TO SPECIAL PROVI2 SIONS CONCERNING FORMER DESIGNATED FEDERAL EN3 TITIES.—

4 (1) RULE OF CONSTRUCTION OF SPECIAL PRO5 VISIONS.—Section 8H of the Inspector General Act

6 of 1978 (5 U.S.C. App.) is amended—

7 (A) by striking ‘‘SEC. 8H’’ and inserting

8 ‘‘SEC. 8I’’;

9 (B) by striking ‘‘or 8E’’ and inserting

10 ‘‘8E, 8F, or 8G’’; and

11 (C) by striking ‘‘section 8F(a)’’ and insert12 ing ‘‘section 8H(a)’’.

13 (2) REDESIGNATION OF SECTION 8G.—Section

14 8G of the Inspector General Act of 1978 (5 U.S.C.

15 App.) is amended by striking ‘‘SEC. 8G’’ and insert16 ing ‘‘SEC. 8H’’.

17 (3) SPECIAL PROVISIONS CONCERNING FORMER

18 DESIGNATED FEDERAL ENTITIES.—The Inspector

19 General Act of 1978 (5 U.S.C. App.) is amended by

20 inserting after section 8F the following:

21 ‘‘SPECIAL PROVISIONS CONCERNING FORMER

22 DESIGNATED FEDERAL ENTITIES’’

23 ‘‘SEC. 8G. (a) For purposes of this section, the

24 term—
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1 ‘‘(1) ‘establishment’ means any establishment

2 to which an office is transferred under section

3 9(a)(1) (X) through (AA); and

4 ‘‘(2) ‘former designated Federal entity’ means a

5 designated Federal entity from which any office is

6 transferred under section 9(a)(1) (X) through (AA).

7 ‘‘(b) The Office of Inspector General of each estab8 lishment shall perform all duties, responsibilities, and

9 functions of an Office of Inspector General under this Act

10 with respect to each applicable former designated Federal

11 entity.

12 ‘‘(c) The Inspector General of an establishment shall

13 prepare and submit an annual report under section 5 re14 lating to each applicable former designated Federal entity

15 to the head of such former designated Federal entity.

16 ‘‘(d) In the administration of section 5(d) with re17 spect to a former designated Federal entity—

18 ‘‘(1) the Inspector General shall make the re19 quired report to the head of such former designated

20 Federal entity instead of the head of the establish21 ment; and

22 ‘‘(2) the head of such former designated Fed23 eral entity shall make the required transmittal to

24 Congress.
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1 ‘‘(e) The head of each former designated Federal en2 tity shall provide the Office of the Inspector General of

3 the applicable establishment with such office space, equip4 ment, supplies, facilities, and services as may be nec5 essary, in the same manner as provided under section

6 6(c).’’.

7 (e) EFFECTIVE DATE.—The amendments made by

8 this section shall take effect 30 days after the date of en9 actment of this Act.

Æ