Independent and Objective Oversight of Ukrainian Assistance Act

Subjects: International Affairs

Summary:  <p><b>Independent and Objective Oversight of Ukrainian Assistance Act</b></p> <p>The bill establishes the Office of the Special Inspector General for Ukrainian Military, Economic, and Humanitarian Aid. </p> <p>The office's duties shall include (1) conducting and coordinating audits and investigations of the handing of funds made available for aid to Ukraine, and (2) monitoring and reviewing contracts and activities involving those funds. </p> <p>The Special Inspector General shall report directly to, and be under the general supervision of, the Secretary of State and Secretary of Defense. </p> <p>Federal agencies may not prevent the office from carrying out any audit or investigation related to aid to Ukraine. However, the office is not authorized to audit or investigate the intelligence community.</p> <p>The office shall terminate 180 days after the date on which there is less than $250 million in unexpended amounts that were made available for the reconstruction of Ukraine. <p> <p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 541 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 541

To provide for the independent and objective conduct and supervision of 
   audits and investigations relating to the programs and operations 
funded with amounts appropriated or otherwise made available to Ukraine 
             for military, economic, and humanitarian aid.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 28, 2023

Mr. Kennedy (for himself, Ms. Sinema, Mrs. Hyde-Smith, and Mr. Cramer) 
introduced the following bill; which was read twice and referred to the 
        Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
To provide for the independent and objective conduct and supervision of 
   audits and investigations relating to the programs and operations 
funded with amounts appropriated or otherwise made available to Ukraine 
             for military, economic, and humanitarian aid.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Independent and 
Objective Oversight of Ukrainian Assistance Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
Sec. 4. Establishment of Office of the Special Inspector General for 
                            Ukrainian Military, Economic, and 
                            Humanitarian Aid.
Sec. 5. Assistant Inspectors General.
Sec. 6. Supervision.
Sec. 7. Duties.
Sec. 8. Powers and authorities.
Sec. 9. Personnel, facilities, and other resources.
Sec. 10. Reports.
Sec. 11. Transparency.
Sec. 12. Authorization of appropriations.
Sec. 13. Termination.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to provide for the independent and objective conduct 
        and supervision of audits and investigations relating to the 
        programs and operations funded with amounts appropriated or 
        otherwise made available to Ukraine for military, economic, and 
        humanitarian aid;
            (2) to provide for the independent and objective leadership 
        and coordination of, and recommendations concerning, policies 
        designed--
                    (A) to promote economic efficiency and 
                effectiveness in the administration of the programs and 
                operations described in paragraph (1); and
                    (B) to prevent and detect waste, fraud, and abuse 
                in such programs and operations; and
            (3) to provide for an independent and objective means of 
        keeping the Secretary of State, the Secretary of Defense, and 
        the heads of other relevant Federal agencies fully and 
        currently informed about--
                    (A) problems and deficiencies relating to the 
                administration of the programs and operations described 
                in paragraph (1); and
                    (B) the necessity for, and the progress toward 
                implementing, corrective action related to such 
                programs.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Amounts appropriated or otherwise made available for 
        the military, economic, and humanitarian aid to ukraine.--The 
        term ``amounts appropriated or otherwise made available for the 
        military, economic, and humanitarian aid for Ukraine'' means 
        amounts appropriated or otherwise made available for any fiscal 
        year--
                    (A) for the Ukraine Security Assistance Initiative;
                    (B) for Foreign Military Financing funding for 
                Ukraine;
                    (C) to the Department of State under the heading 
                ``nonproliferation, anti-terrorism, demining and 
                related programs''; and
                    (D) under titles III and VI of the Ukraine 
                Supplemental Appropriations Act (division N of Public 
                Law 117-103).
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Appropriations of the Senate;
                    (B) the Committee on Armed Services of the Senate;
                    (C) the Committee on Foreign Relations of the 
                Senate;
                    (D) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (E) the Committee on Appropriations of the House of 
                Representatives;
                    (F) the Committee on Armed Services of the House of 
                Representatives;
                    (G) the Committee on Foreign Affairs of the House 
                of Representatives; and
                    (H) the Committee on Oversight and Reform of the 
                House of Representatives.
            (3) Office.--The term ``Office'' means the Office of the 
        Special Inspector General for Ukrainian Military, Economic, and 
        Humanitarian Aid established under section 4(a).
            (4) Special inspector general.--The term ``Special 
        Inspector General'' means the Special Inspector General for 
        Ukrainian Military, Economic, and Humanitarian Aid appointed 
        pursuant to section 4(b).

SEC. 4. ESTABLISHMENT OF OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR 
              UKRAINIAN MILITARY, ECONOMIC, AND HUMANITARIAN AID.

    (a) In General.--There is hereby established the Office of the 
Special Inspector General for Ukrainian Military, Economic, and 
Humanitarian Aid to carry out the purposes set forth in section 2.
    (b) Appointment of Special Inspector General.--The head of the 
Office shall be the Special Inspector General for Ukrainian Military, 
Economic, and Humanitarian Aid, who shall be appointed by the 
President. The first Special Inspector General shall be appointed not 
later than 30 days after the date of the enactment of this Act.
    (c) Qualifications.--The appointment of the Special Inspector 
General shall be made solely on the basis of integrity and demonstrated 
ability in accounting, auditing, financial analysis, law, management 
analysis, public administration, or investigations.
    (d) Compensation.--The annual rate of basic pay of the Special 
Inspector General shall be the annual rate of basic pay provided for 
positions at level IV of the Executive Schedule under section 5315 of 
title 5, United States Code.
    (e) Prohibition on Political Activities.--For purposes of section 
7324 of title 5, United States Code, the Special Inspector General is 
not an employee who determines policies to be pursued by the United 
States in the nationwide administration of Federal law.
    (f) Removal.--The Special Inspector General shall be removable from 
office in accordance with section 3(b) of the Inspector General Act of 
1978 (5 U.S.C. App.).

SEC. 5. ASSISTANT INSPECTORS GENERAL.

    The Special Inspector General, in accordance with applicable laws 
and regulations governing the civil service, shall appoint--
            (1) an Assistant Inspector General for Auditing, who shall 
        supervise the performance of auditing activities relating to 
        programs and operations supported by amounts appropriated or 
        otherwise made available for military, economic, and 
        humanitarian aid to Ukraine; and
            (2) an Assistant Inspector General for Investigations, who 
        shall supervise the performance of investigative activities 
        relating to the programs and operations described in paragraph 
        (1).

SEC. 6. SUPERVISION.

    (a) In General.--Except as provided in subsection (b), the Special 
Inspector General shall report directly to, and be under the general 
supervision of, the Secretary of State and the Secretary of Defense.
    (b) Independence To Conduct Investigations and Audits.--No officer 
of the Department of Defense, the Department of State, the United 
States Agency for International Development, or any other relevant 
Federal agency may prevent or prohibit the Special Inspector General 
from--
            (1) initiating, carrying out, or completing any audit or 
        investigation related to amounts appropriated or otherwise made 
        available for the military, economic, and humanitarian aid to 
        Ukraine; or
            (2) issuing any subpoena during the course of any such 
        audit or investigation.

SEC. 7. DUTIES.

    (a) Oversight of Military, Economic, and Humanitarian Aid to 
Ukraine Provided After February 24, 2022.--The Special Inspector 
General shall conduct, supervise, and coordinate audits and 
investigations of the treatment, handling, and expenditure of amounts 
appropriated or otherwise made available for military, economic, and 
humanitarian aid to Ukraine, and of the programs, operations, and 
contracts carried out utilizing such funds, including--
            (1) the oversight and accounting of the obligation and 
        expenditure of such funds;
            (2) the monitoring and review of reconstruction activities 
        funded by such funds;
            (3) the monitoring and review of contracts funded by such 
        funds;
            (4) the monitoring and review of the transfer of such funds 
        and associated information between and among departments, 
        agencies, and entities of the United States and private and 
        nongovernmental entities;
            (5) the maintenance of records regarding the use of such 
        funds to facilitate future audits and investigations of the use 
        of such funds;
            (6) the monitoring and review of the effectiveness of 
        United States coordination with the Government of Ukraine, 
        major recipients of Ukrainian refugees, partners in the region, 
        and other donor countries;
            (7) the investigation of overpayments (such as duplicate 
        payments or duplicate billing) and any potential unethical or 
        illegal actions of Federal employees, contractors, or 
        affiliated entities; and
            (8) the referral of reports compiled as a result of such 
        investigations, as necessary, to the Department of Justice to 
        ensure further investigations, prosecutions, recovery of funds, 
        or other remedies.
    (b) Other Duties Related to Oversight.--The Special Inspector 
General shall establish, maintain, and oversee such systems, 
procedures, and controls as the Special Inspector General considers 
appropriate to discharge the duties described in subsection (a).
    (c) Consultation.--The Special Inspector General shall consult with 
the appropriate congressional committees before engaging in auditing 
activities outside of Ukraine.
    (d) Duties and Responsibilities Under Inspector General Act of 
1978.--In addition to the duties specified in subsections (a) and (b), 
the Special Inspector General shall have the duties and 
responsibilities of inspectors general under the Inspector General Act 
of 1978 (5 U.S.C. App.).
    (e) Coordination of Efforts.--In carrying out the duties, 
responsibilities, and authorities of the Special Inspector General 
under this Act, the Special Inspector General shall coordinate with, 
and receive cooperation from--
            (1) the Inspector General of the Department of Defense;
            (2) the Inspector General of the Department of State;
            (3) the Inspector General of the United States Agency for 
        International Development; and
            (4) the Inspector General of any other relevant Federal 
        agency.

SEC. 8. POWERS AND AUTHORITIES.

    (a) Authorities Under Inspector General Act of 1978.--
            (1) In general.--Except as provided in paragraph (2), in 
        carrying out the duties specified in section 7, the Special 
        Inspector General shall have the authorities provided under 
        section 6 of the Inspector General Act of 1978, including the 
        authorities under subsection (e) of such section.
            (2) Limitation.--The Special Inspector General is not 
        authorized to audit or investigate the intelligence community 
        (as defined in section 3 of the National Security Act of 1947 
        (50 U.S.C. 3003)).
    (b) Audit Standards.--The Special Inspector General shall carry out 
the duties specified in section 7(a) in accordance with section 4(b)(1) 
of the Inspector General Act of 1978.
    (c) Expedited Hiring Authority.--
            (1) In general.--Subject to paragraph (2), the Special 
        Inspector General may exercise any authority provided to the 
        head of a temporary organization under section 3161 of title 5, 
        United States Code, without regard to whether the Office 
        qualifies as a temporary organization under subsection (a) of 
        that section.
            (2) Limitations.--With respect to the exercise of authority 
        under subsection (b) of section 3161 of title 5, United States 
        Code, as authorized under paragraph (1)--
                    (A) the Special Inspector General may not make any 
                appointment under that subsection on or after the later 
                of--
                            (i) the date that is 180 days after the 
                        date of enactment of this Act; or
                            (ii) the date that is 180 days after the 
                        date on which the Special Inspector General is 
                        confirmed by the Senate;
                    (B) paragraph (2) of that subsection (relating to 
                periods of appointments) shall not apply; and
                    (C) no period of an appointment made under that 
                subsection may extend after the date on which the 
                Office terminates under section 13.
            (3) Reemployment of annuitants.--
                    (A) In general.--Subject to subparagraph (B), if an 
                annuitant receiving an annuity from the Civil Service 
                Retirement and Disability Fund becomes employed in a 
                position in the Office--
                            (i) the annuity of that annuitant shall 
                        continue; and
                            (ii) such reemployed annuitant shall not be 
                        considered to be an employee for the purposes 
                        of chapter 83 or 84 of title 5, United States 
                        Code.
                    (B) Limitations.--Subparagraph (A) shall apply to--
                            (i) not more than 25 employees of the 
                        Office at any particular time, as designated by 
                        the Special Inspector General; and
                            (ii) pay periods beginning after the date 
                        of enactment of this Act.

SEC. 9. PERSONNEL, FACILITIES, AND OTHER RESOURCES.

    (a) Personnel.--The Special Inspector General may select, appoint, 
and employ such officers and employees as may be necessary for carrying 
out the duties of the Special Inspector General, subject to the 
provisions of--
            (1) chapter 33 of title 5, United States Code, governing 
        appointments in the competitive service; and
            (2) chapter 51 and subchapter III of chapter 53 of such 
        title, relating to classification and General Schedule pay 
        rates.
    (b) Employment of Experts and Consultants.--The Special Inspector 
General may obtain the services of experts and consultants in 
accordance with section 3109 of title 5, United States Code, at daily 
rates not to exceed the equivalent rate prescribed for grade GS-15 of 
the General Schedule under section 5332 of such title.
    (c) Contracting Authority.--To the extent and in such amounts as 
may be provided in advance by appropriations Acts, the Special 
Inspector General may--
            (1) enter into contracts and other arrangements for audits, 
        studies, analyses, and other services with public agencies and 
        with private persons; and
            (2) make such payments as may be necessary to carry out the 
        duties of the Special Inspector General.
    (d) Resources.--The Secretary of State or the Secretary of Defense, 
as appropriate, shall provide the Special Inspector General with--
            (1) appropriate and adequate office space at appropriate 
        locations of the Department of State or the Department of 
        Defense, as appropriate, in Ukraine or in European partner 
        countries;
            (2) such equipment, office supplies, and communications 
        facilities and services as may be necessary for the operation 
        of such offices; and
            (3) necessary maintenance services for such offices and the 
        equipment and facilities located in such offices.
    (e) Assistance From Federal Agencies.--
            (1) In general.--Upon request of the Special Inspector 
        General for information or assistance from any department, 
        agency, or other entity of the Federal Government, the head of 
        such entity shall, to the extent practicable and not in 
        contravention of any existing law, furnish such information or 
        assistance to the Special Inspector General or an authorized 
        designee.
            (2) Reporting of refused assistance.--Whenever information 
        or assistance requested by the Special Inspector General is, in 
        the judgment of the Special Inspector General, unreasonably 
        refused or not provided, the Special Inspector General shall 
        immediately report the circumstances to--
                    (A) the Secretary of State or the Secretary of 
                Defense, as appropriate; and
                    (B) the appropriate congressional committees.

SEC. 10. REPORTS.

    (a) Quarterly Reports.--Not later than 30 days after the end of 
each quarter of each fiscal year, the Special Inspector General shall 
submit to the appropriate congressional committees, the Secretary of 
State, and the Secretary of Defense a report that--
            (1) summarizes, for the applicable quarter, and to the 
        extent possible, for the period from the end of such quarter to 
        the date on which the report is submitted, the activities 
        during such period of the Special Inspector General and the 
        activities under programs and operations funded with amounts 
        appropriated or otherwise made available for military, 
        economic, and humanitarian aid to Ukraine; and
            (2) includes, for applicable quarter, a detailed statement 
        of all obligations, expenditures, and revenues associated with 
        military, economic, and humanitarian activities in Ukraine, 
        including--
                    (A) obligations and expenditures of appropriated 
                funds;
                    (B) a project-by-project and program-by-program 
                accounting of the costs incurred to date for military, 
                economic, and humanitarian aid to Ukraine, including an 
                estimate of the costs to be incurred by the Department 
                of Defense, the Department of State, the United States 
                Agency for International Development, and other 
                relevant Federal agencies to complete each project and 
                each program;
                    (C) revenues attributable to, or consisting of, 
                funds provided by foreign nations or international 
                organizations to programs and projects funded by any 
                Federal department or agency and any obligations or 
                expenditures of such revenues;
                    (D) revenues attributable to, or consisting of, 
                foreign assets seized or frozen that contribute to 
                programs and projects funded by any Federal department 
                or agency and any obligations or expenditures of such 
                revenues;
                    (E) operating expenses of entities receiving 
                amounts appropriated or otherwise made available for 
                military, economic, and humanitarian aid to Ukraine; 
                and
                    (F) for any contract, grant, agreement, or other 
                funding mechanism described in subsection (b)--
                            (i) the dollar amount of the contract, 
                        grant, agreement, or other funding mechanism;
                            (ii) a brief discussion of the scope of the 
                        contract, grant, agreement, or other funding 
                        mechanism;
                            (iii) a discussion of how the Federal 
                        department or agency involved in the contract, 
                        grant, agreement, or other funding mechanism 
                        identified, and solicited offers from, 
                        potential individuals or entities to perform 
                        the contract, grant, agreement, or other 
                        funding mechanism, including a list of the 
                        potential individuals or entities that were 
                        issued solicitations for the offers; and
                            (iv) the justification and approval 
                        documents on which the determination to use 
                        procedures other than procedures that provide 
                        for full and open competition was based.
    (b) Covered Contracts, Grants, Agreements, and Funding 
Mechanisms.--A contract, grant, agreement, or other funding mechanism 
described in this subsection is any major contract, grant, agreement, 
or other funding mechanism that is entered into by any Federal 
department or agency that involves the use of amounts appropriated or 
otherwise made available for the military, economic, or humanitarian 
aid to Ukraine with any public or private sector entity--
            (1) to build or rebuild the physical infrastructure of 
        Ukraine;
            (2) to establish or reestablish a political or societal 
        institution of Ukraine;
            (3) to provide products or services to the people of 
        Ukraine; or
            (4) to provide security assistance to Ukraine.
    (c) Public Availability.--The Special Inspector General shall 
publish each report submitted pursuant to subsection (a) on a publicly 
available internet website in English, Ukrainian, and Russian.
    (d) Form.--Each report required under subsection (a) shall be 
submitted in unclassified form, but may include a classified annex if 
the Special Inspector General determines that a classified annex is 
necessary.
    (e) Submission of Comments to Congress.--During the 30-day period 
beginning on the date a report is received pursuant to subsection (a), 
the Secretary of State and the Secretary of Defense may submit comments 
to the appropriate congressional committees, in unclassified form, 
regarding any matters covered by the report that the Secretary of State 
or the Secretary of Defense considers appropriate. Such comments may 
include a classified annex if the Secretary of State or the Secretary 
of Defense considers such annex to be necessary.
    (f) Rule of Construction.--Nothing in this section may be construed 
to authorize the public disclosure of information that is--
            (1) specifically prohibited from disclosure by any other 
        provision of law;
            (2) specifically required by Executive order to be 
        protected from disclosure in the interest of defense or 
        national security or in the conduct of foreign affairs; or
            (3) a part of an ongoing criminal investigation.

SEC. 11. TRANSPARENCY.

    (a) Report.--Except as provided in subsection (c), not later than 
60 days after receiving a report pursuant to section 10(a), the 
Secretary of State and the Secretary of Defense shall jointly make 
copies of the report available to the public upon request and at a 
reasonable cost.
    (b) Comments.--Except as provided in subsection (c), not later than 
60 days after submitting comments pursuant to section 10(e), the 
Secretary of State and the Secretary of Defense shall jointly make 
copies of such comments available to the public upon request and at a 
reasonable cost.
    (c) Waiver.--
            (1) Authority.--The President may waive the requirement 
        under subsection (a) or (b) with respect to availability to the 
        public of any element in a report submitted pursuant to section 
        10(a) or any comments submitted pursuant to section 10(e) if 
        the President determines that such waiver is justified for 
        national security reasons.
            (2) Notice of waiver.--The President shall publish a notice 
        of each waiver made under paragraph (1) in the Federal Register 
        not later than the date of the submission to the appropriate 
        congressional committees of a report required under section 
        10(a) or any comments submitted pursuant to section 10(e). Each 
        such report and comments shall specify whether a waiver was 
        made pursuant to paragraph (1) and which elements in the report 
        or the comments were affected by such waiver.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated $20,000,000 
for fiscal year 2024 to carry out this Act.
    (b) Rescission.--Of the amount appropriated under the heading 
``assistance for europe, eurasia, and central asia'' in title III of 
the Department of State, Foreign Operations, and Related Programs 
Appropriations Act, 2023 (division K of Public Law 117-328), 
$20,000,000 is rescinded.

SEC. 13. TERMINATION.

    (a) In General.--The Office shall terminate on the day that is 180 
days after the date on which amounts appropriated or otherwise made 
available for the reconstruction of Ukraine that are unexpended are 
less than $250,000,000.
    (b) Final Report.--Before the termination date referred to in 
subsection (a), the Special Inspector General shall prepare and submit 
to the appropriate congressional committees a final forensic audit 
report on programs and operations funded with amounts appropriated or 
otherwise made available for the military, economic, and humanitarian 
aid to Ukraine.
                                 &lt;all&gt;
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