(3) DEADLINE
FOR
APPOINTMENT.—The ap-
pointment of a Director by the Inspector General 
shall be made not later than 30 days after the date 
of the enactment of this Act. 
(4) BASIC PAY.—The annual rate of basic pay 
of the Director shall be set by the Inspector General, 
subject to the provisions of chapter 51 and sub-
chapter III of chapter 53 or title 5, United States 
Code, governing classification and General Schedule 
pay rates. 
(e) SUPERVISION.—The Director shall report directly 
to, and be under the direct authority and general super-
vision of, the Inspector General. 
(f) DUTIES.— 
(1) IN GENERAL.—It shall be the duty of the 
Special Office to conduct, supervise, and coordinate 
audits and investigations of the treatment, handling, 
and expenditure of Federal funds by any organiza-
tion providing relief, assistance, or reconstruction re-
lated to Hurricane Katrina and of the programs, op-
erations, and contracts carried out utilizing such 
funds, including— 
(A) the oversight and accounting of the ob-
ligation and expenditure of such funds;
(B) the monitoring and review of recon-
struction activities funded by such funds; 
(C) the monitoring and review of contracts 
funded by such funds; 
(D) the monitoring and review of the 
transfer of such funds and associated informa-
tion between and among the affected States, de-
partments, agencies, and entities of the Federal 
Government, and private and nongovernmental 
entities; and 
(E) the maintenance of records on the use 
of such funds to facilitate future audits and in-
vestigations of the use of such funds. 
(2) SYSTEMS, PROCEDURE, AND CONTROLS.— 
The Director, in consultation with the Inspector 
General, shall establish, maintain, and oversee such 
systems, procedures, and controls as shall be consid-
ered appropriate by them to discharge the duty 
under paragraph (1). 
(g) PERSONNEL, FACILITIES, AND
OTHER
RE-
SOURCES.— 
(1) ADDITIONAL
EMPLOYEE.—The Inspector 
General may select, appoint, and employ additional 
employees above authorized levels as may be nec-
essary for carrying out the duties of the Special Of-
fice under this section, but no more than 40 addi-
tional full-time equivalent positions. 
(2) FIELD
OFFICE.—The Inspector General 
may operate field offices in the affected areas as 
may be necessary for the Special Office to carry out 
the duties prescribed in subsection (f). 
(h) REPORTS.— 
(1) IN GENERAL.—Not later than 60 days after 
the date of the enactment of this Act, or the end of 
the first fiscal quarter beginning after the date of 
the enactment of this Act, whichever is later, and 
every fiscal quarter thereafter, the Inspector General 
shall submit to the Congress a report summarizing 
the activities and findings, if any, of the Special Of-
fice during the period after the last report issued/ 
preceding fiscal quarter? note that there will be no 
‘‘last report ’’ before the first report . Each report 
shall include, for the period covered by such report, 
a detailed statement of all obligations, expenditures, 
and revenues associated with relief, reconstruction, 
and rehabilitation activities in the areas affected by 
Hurricane Katrina, including the following: 
(A) Obligations and expenditures of appro-
priated funds.