Inspector General Act Amendments of 1988
PL 100-504 (S.908), enacted 10/18/1988

PUBLIC LAW 100-504—OCT. 18, 1988 
102 STAT. 2515 
Public Law 100-504 
100th Congress 
An Act 
To amend the Inspector General Act of 1978 to establish offices of inspector general 
in certain departments, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
TITLE I—INSPECTOR GENERAL ACT 
AMENDMENTS 
SEC. 101. SHORT TITLE. 
This title may be cited as the "Inspector General Act Amend-
ments of 1988". 
SEC. 102. ESTABLISHMENT OF OFFICES OF INSPECTOR GENERAL. 
(a) PURPOSE.—Section 2(1) of the Inspector General Act of 1978 
(Public Law 95-452; 5 U.S.C. App. 3) is amended to read as follows: 
"(1) to conduct and supervise audits and investigations relat-
ing to the programs and operations of the establishments listed 
in section 11(2);". 
(b) TECHNICAL AMENDMENT.—The last clause of section 2 is 
amended by striking out "thereby" and inserting in lieu thereof 
"there". 
(c) ADDITION OF DEPARTMENTS OF ENERGY, HEALTH AND HUMAN 
SERVICES, JUSTICE AND TREASURY, FEDERAL EMERGENCY MANAGE-
MENT AGENCY, NUCLEAR REGULATORY COMMISSION, OFFICE OF 
PERSONNEL MANAGEMENT, AND RAILROAD RETIREMENT BOARD TO 
LIST OF COVERED ESTABLISHMENTS.—Section 11 of such Act is 
amended by striking out paragraphs (1) and (2) and inserting in lieu 
thereof the following: 
"(1) the term 'head of the establishment' means the Secretary 
of Agriculture, (Commerce, Defense, Education, Energy, Health 
and Human Services, Housing and Urban Development, the 
Interior, Labor, State, Transportation, or the Treasury; the 
Attorney General; the Administrator of the Agency for Inter-
national Development, Environmental Protection, General 
Services, National Aeronautics and Space, Small Business, or 
Veterans' Affairs; the Director of the Federal Emergency 
Management Agency, the Office of Personnel Management or 
the United States Information Agency; the Chairman of the 
Nuclear Regulatory Commission or the Railroad Retirement 
Board; as the case may be; 
"(2) the term 'establishment' means the Department of Agri-
culture, Commerce, Defense, Education, Energy, Health and 
Human Services, Housing and Urban Development, the In-
terior, Justice, Labor, State, Transportation, or the Treasury; 
the Agency for International Development, the Environmental 
Protection Agency, the Federal Emergency 
Management 
Oct. 18, 1988 
[S. 908] 
Inspector 
General Act 
Amendments of 
1988. 
Government 
organization and 
employees. 
5 u s e app. 
5 u s e app. 
5 u s e app. 
102 STAT. 2516 
PUBLIC LAW 100-504—OCT. 18, 1988 
Agency, the General Services Administration, the National 
Aeronautics and Space Administration, the Nuclear Regulatory 
Commission, the Office of Personnel Management, the Railroad 
Retirement Board, the Small Business Administration, the 
United States Information Agency, or the Veterans' Adminis-
tration; as the case may be;", 
(d) TRANSFERS OF EXISTING AUDIT AND INVESTIGATION UNITS.— 
5 use app. 
Section 9(aXl) of such Act is amended— 
(1) by striking out subparagraph (I), relating to the Commu-
nity Services Administration; 
(2) by redesignating subparagraphs (E) and (F) as subpara-
graphs (G) and (H), respectively; 
(3) by redesignating subparagraphs (G) and (H) as subpara-
graphs (J) and (K), respectively; 
(4) by redesignating subparagraph (J) as subparagraph (M); 
(5) by redesignating subparagraphs (K) and (L) as subpara-
graphs (O) and (P), respectively; 
(6) by redesignating subparagraphs (M) and (N) as subpara-
graphs (T) and (U), respectively; 
(7) by inserting after subpareigraph (D) the following new 
subparagraphs: 
"(E) of the Department of Energy, the Office of Inspector 
General (as established by section 208 of the Department of 
Energy Organization Act); 
"(F) of the Department of Health and Human Services, 
the Office of Inspector General (as established by title II of 
Public Law 94-505);"; 
(8) by inserting after subparagraph (H) (as redesignated by 
paragraph 
(2) 
of 
this 
subsection) 
the 
following 
new 
subparagraph: 
"(I) of the Department of Justice, the offices of that 
Department referred to as (i) the 'Audit Staff, Justice 
Management Division', (ii) the 'Policy and Procedures 
Branch, Office of the Comptroller, Immigration and Natu-
ralization Service', the 'Office of Professional Responsibil-
ity, Immigration and Naturalization Service', and the 
'Office of Program Inspections, Immigration and Natu-
ralization Service', (iii) the 'Office of Internal Inspection, 
United States Marshals Service', (iv) the 'Financial Audit 
Section, Office of Financial Management, Bureau of Pris-
ons' and the 'Office of Inspections, Bureau of Prisons', and 
(v) from the Drug Enforcement Administration, that por-
tion of the 'Office of Inspections' which is engaged in in-
ternal audit activities, and that portion of the 'Office of 
Planning and Evaluation' which is engaged in program 
review activities;"; 
(9) by inserting after subparagraph (K) (as redesignated by 
paragraph 
(3) 
of 
this 
subsection) 
the 
following 
new 
subparagraph: 
"^j) of the Department of the Treasury, the office of that 
department referred to as the 'Office of Inspector General', 
and, notwithstanding any other provision of law, that por-
tion of each of the offices of that department referred to as 
the 'Office of Internal Affairs, Bureau of Alcohol, Tobacco, 
and Firearms', the 'Office of Internal Affairs, United States 
Customs Service', and the 'Office of Inspections, United 
PUBLIC LAW 100-504—OCT. 18, 1988 
102 STAT. 2517 
States Secret Service' which is engaged in internal audit 
activities;"; 
(10) by inserting after subparagraph (M) (as redesignated by 
paragraph 
(4) 
of 
this 
subsection) 
the 
following 
new 
subparagraph: 
"(N) of the Federal Emergency Management Agency, the 
office of that agency referred to as the 'Office of Inspector 
Genergd';"; and 
(11) by inserting after subparagraph (P) (as redesignated by 
paragraph 
(5) 
of 
this 
subsection) 
the 
following 
new 
subparagraphs: 
"(Q) of the Nuclear Regulatory Commission, the office of 
that commission referred to as the 'Office of Inspector and 
Auditor'; 
"(R) of the Office of Personnel Management, the offices of 
that agency referred to as the 'Office of Inspector General', 
the 'Insurance Audits Division, Retirement and Insurance 
Group', and the 'Analysis and Evaluation 
Division, 
Administration Group'; 
"(S) of the Railroad Retirement Board, the Office of 
Inspector (Jeneral (as established by section 23 of the Rail-
road Retirement Act of 1974);". 
(e) TECHNICAL AND (CONFORMING AMENDMENTS.— 
dXA) Section 208 of the Department of Energy Organization 
Act is repealed. 
42 USC 7138. 
(B) The table of contents in the first section of such Act is 
amended by striking out the item relating to section 208. 
(2) Title II of Public Law 94-505 is repealed. 
42 USC 
(3) Section 23 of the Railroad Retirement Act of 1974 is 3521-3527. 
repealed. 
45USC23iv. 
(4) Any individual who, on the date of enactment of this Act, 
5 USC app. 
is serving as the Inspector (General of the Department of 
Energy, the Department of Health and Human Services, or the 
Railroad Retirement Board, shall continue to serve in such 
position until such individual dies, resigns, or is removed from 
office in accordance with section 3(b) of the Inspector General 
Act of 1978. 
(0 SPECIAL PROVISIONS WITH RESPECT TO THE INSPECTORS GENERAL 
OF THE NUCLEAR REGULATORY (I!OMMISSION, THE DEPARTMENT OF THE 
TREASURY, AND THE DEPARTMENT OF JUSTICE.—The Inspector Gen-
eral Act of 1978 is amended by inserting after section 8A the 
following new sections: 
"SPECIAL PROVISIONS CONCERNING THE NUCLEAR REGULATORY 
COMMISSION 
"SEC. 8B. (a) The CJhairman of the Commission may delegate the 
5 USC app. 
authority specified in the second sentence of section 3(a) to another 
member of the Nuclear Regulatory (Commission, but shall not 
delegate such authority to any other officer or employee of the 
(Commission. 
"(b) Notwithstanding sections 6(a) (7) and (8), the Inspector Gen-
eral of the Nuclear RegalsAory Commission is authorized to select, 
appoint, and employ such officers and employees as may be nec-
essary for carrying out the functions, powers and duties of the Office 
of Inspector Gieneral and to obtain the temporary or intermittent 
services of experts or consultants or an organization thereof, subject 
102 STAT. 2518 
PUBLIC LAW 100-504—OCT. 18, 1988 
to the applicable laws and regulations that govern such selections, 
appointments and employment, and the obtaining of such services, 
within the Nuclear Regulatory Commission. 
Classified 
information. 
5 u s e app. 
Reports. 
SPECIAL PROVISIONS CONCERNING THE DEPARTMENT OF THE TREASURY 
"SEC. 8C. (aXD Notwithstanding the last two sentences of section 
3(a), the Inspector General shall be under the authority, direction, 
and control of the Secretary of the Tresisury with respect to audits 
or investigations, or the issuance of subpenas, which require access 
to sensitive information concerning— 
"(A) ongoing criminal investigations or proceedings; 
"(B) undercover operations; 
"(C) the identity of confidential sources, including protected 
witnesses; 
"(D) deliberations and decisions on policy matters, including 
documented information used as a basis for making policy 
decisions, the disclosure of which could reasonably be expected 
to have a significant influence on the economy or market 
behavior; 
"(E) intelligence or counterintelligence matters; or 
"(F) other matters the disclosure of which would constitute a 
serious threat to national security or to the protection of any 
person or property authorized protection by section 3056 of title 
18, United States Code, section 202 of title 3, United States 
Code, or any provision of the Presidential Protection Assistance 
Act of 1976 (18 U.S.C. 3056 note; Public Law 94-524). 
"(2) With respect to the information described under paragraph 
(1), the Secretary of the Treasury may prohibit the Inspector Gen-
eral from carrying out or completing any audit or investigation, or 
from issuing any subpena, after such Inspector General has decided 
to initiate, carry out, or complete such audit or investigation or to 
issue such subpena, if the Secretary determines that such prohibi-
tion is necessary to prevent the disclosure of any information de-
scribed under paragraph (1) or to prevent significant impairment to 
the national interests of the United States. 
"(3) If the Secretary of the Treasury exercises any power under 
paragraph (1) or (2), the Secretary of the Treasury shall notify the 
Inspector General in writing stating the reasons for such exercise. 
Within 30 days after receipt of any such notice, the Inspector 
General shall transmit a copy of such notice to the Committees on 
Governmental Affairs and Finance of the Senate and the Commit-
tees on Government Operations and Ways and Means of the House 
of Representatives, and to other appropriate committees or sub-
committees of the Congress. 
"(b) In carrying out the duties and responsibilities specified in this 
Act, the Inspector General of the Department of the Treasury shall 
have oversight responsibility for the internal investigations per-
formed by the Office of Internal Affairs of the Bureau of Alcohol, 
Tobacco and Firearms, the Office of Internal Affairs of the United 
States Customs Service, and the Office of Inspections of the United 
States Secret Service, and the internal audits and internal investiga-
tions performed by the Office of Assistant Commissioner (Inspection) 
of the Internal Revenue Service. The head of each such office shall 
promptly report to the Inspector General the significant activities 
being carried out by such office. 
PUBLIC LAW 100-504—OCT. 18, 1988 
102 STAT. 2519 
"(c) Notwithstanding subsection (b), the Inspector General may 
initiate, conduct and supervise such audits and investigations in the 
Department of the Treasury (including the bureaus and services 
referred to in subsection (b)) as the Inspector General considers 
appropriate. 
"(d) If the Inspector General initiates an audit or investigation 
under subsection (c) concerning a bureau or service referred to in 
subsection (b), the Inspector General may provide the head of the 
office of such bureau or service referred to in subsection (b) with 
written notice that the Inspector General has initiated such an audit 
or investigation. If the Inspector General issues a notice under the 
preceding sentence, no other audit or investigation shall be initiated 
into the matter under audit or investigation by the Inspector Gen-
eral and any other audit or investigation of such matter shall cease. 
"(e)(1) The Inspector General shall have access to returns and 
return information, as defined in section 6103(b) of the Internal 
Revenue Code of 1986, only in accordance with the provisions of 
section 6103 of such Code and this Act. 
"(2) Access by the Inspector General to returns and return 
information under section 6103(hXl) of such Code shall be subject to 
the following additional requirements: 
"(A) In order to maintain internal controls over access to 
returns and return information, the Inspector General, or in the 
absence of the Inspector General, the Acting Inspector General, 
the Deputy Inspector General, the Assistant Inspector General 
for Audits, or the Assistant Inspector General for Investiga-
tions, shall provide to the Assistant Commissioner (Inspection) 
of the Internal Revenue Service written notice of the Inspector 
General's intent to access returns and return information. If the 
Inspector General determines that the Inspection Service of the 
Internal Revenue Service should not be made aware of a notice 
of access to returns and return information, such notice shall be 
provided to the Senior Deputy Commissioner of Internal 
Revenue. 
"(B) Such notice shall clearly indicate the specific returns or 
return information being accessed, contain a certification by the 
Inspector General, or in the absence of the Inspector General, 
the Acting Inspector General, the Deputy Inspector General, 
the Assistant Inspector General for Audits, or the Assistant 
Inspector General for Investigations, that the returns or return 
information being accessed are needed for a purpose described 
under section 6103(hXl) of the Internal Revenue Code of 1986, 
and identify those employees of the Office of Inspector General 
of the Department of the Treasury who may receive such 
returns or return information. 
"(C) The Internal Revenue Service shall maintain the same 
system of standardized records or accountings of all requests 
from the Inspector General for inspection or disclosure of re-
turns and return information (including the reasons for and 
dates of such requests), and of returns and return information 
inspected or disclosed pursuant to such requests, as described 
under section 6103(pX3XA) of the Internal Revenue Code of 
1986. Such system of standardized records or accountings shall 
also be available for examination in the same manner as pro-
vided under section 6103(pX3) of the Internal Revenue Code of 
1986. 
102 STAT. 2520 
PUBLIC LAW 100-504—OCT. 18, 1988 
"(D) The Inspector General shall be subject to the same 
safeguards and conditions for receiving returns and return 
information as are described under section 6103(pX4) of the 
Internal Revenue Code of 1986. 
"(f) An audit or investigation conducted by the Inspector General 
shall not affect a final decision of the Secretary of the Treasury or 
his del^ate under section 6406 of the Internal Revenue C!ode of 
1986. 
Reports. 
"(g) Notwithstanding section 4(d), in matters involving chapter 75 
of the Internal Revenue Oxle of 1986, the Inspector General shall 
report expeditiously to the Attorney General only offenses under 
section 7214 of such 0)de, unless the Inspector CJeneral obtains the 
consent of the (Commissioner of Internal Revenue to exercise addi-
tional reporting authority with respect to such chapter. 
Reports. 
"(h) Any report required to be transmitted by the Secretary of the 
Treasury to the appropriate committees or subcommittees of the 
(^longress under section 5(d) shall also be transmitted, within the 
seven-day period specified under such section, to the Committees on 
(Jovemmental Affairs and Finance of the Senate and the Commit-
tees on Grovernment Operations and Ways and Means of the House 
of Representatives. 
Classified 
information. 
5 u s e app. 
SPECIAL PROVISIONS CONCERNING THE DEPARTMENT OF JUSTICE 
"SEC. 8D. (aXD Notwithstanding the last two sentences of section 
3(a), the Inspector CJeneral shall be under the authority, direction, 
and control of the Attorney General with respect to audits or 
investigations, or the issuance of subpenas, which require access to 
sensitive information concerning— 
"(A) ongoing civil or criminsd investigations or proceedings; 
"(B) undercover operations; 
"(C) the identity of confidential sources, including protected 
witnesses; 
"(D) intelligence or counterintelligence matters; or 
"(E) other matters the disclosure of which would constitute a 
serious threat to national security. 
"(2) With respect to the information described under paragraph 
(1), the Attorney General may prohibit the Inspector Genered from 
carrying out or completing any audit or investigation, or from 
issuing any subpena, after such Inspector General has decided to 
initiate, carry out, or complete such audit or investigation or to issue 
such subpena, if the Attorney CJeneral determines that such prohibi-
tion is necessary to prevent the disclosure of any information 
described under paragraph (1) or to prevent the significant impair-
ment to the national interests of the United States. 
"(3) If the Attorney General exercises any power under paragraph 
(1) or (2), the Attorney General shall notify the Inspector (Jeneral in 
writing stating the reasons for such exercise. Within 30 days after 
receipt of any such notice, the Inspector General shall transmit a 
copy of such notice to the (IJommittees on Grovernmental Affairs and 
Judiciary of the Senate and the Committees on (Jovernment Oper-
ations and Judiciary of the House of Representatives, and to other 
appropriate committees or subcommittees of the Congress. 
"(b) In carrying out the duties and responsibilities specified in this 
Act, the Inspector General of the Department of Justice— 
PUBLIC LAW 100-504—OCT. 18, 1988 
102 STAT, 2521 
"(1) may initiate, conduct and supervise such audits and 
investigations in the Department of Justice as the Inspector 
General considers appropriate; 
"(2) shall give particular regard to the activities of the Coun-
sel, Office of Professional Responsibility of the Department and 
the audit, internal investigative, and inspection units outside 
the Office of Inspector General with a view toward avoiding 
duplication and insuring effective coordination and cooperation; 
and 
"(3) shall refer to the Counsel, Office of Professional Respon-
sibility of the Department for investigation, information or 
allegations relating to the conduct of an officer or employee of 
the Department of Justice employed in an attorney, criminal 
investigative, or law enforcement position that is or may be a 
violation of law, regulation, or order of the Department or any 
other applicable standard of conduct, except that no such refer-
ral shall be made if the officer or employee is employed in the 
Office of Professional Responsibility of the Department. 
"(c) Any report required to be transmitted by the Attorney Gen- Reports. 
eral to the appropriate committees or subcommittees of the 
Congress under section 5(d) shall also be transmitted, within the 
seven-day period specified under such section, to the Committees on 
the Judiciary and Governmental Affairs of the Senate and the 
Committees on the Judiciary and Government Operations of the 
House of Representatives.''. 
(g) DISCLOSURE OF TAX RETURNS AND RETURN INFORMATION.— 
Section 5(e)(3) of the Inspector General Act of 1978 is amended by 
5 use app. 
striking out "Nothing" in the first sentence and inserting in lieu 
thereof "Except to the extent and in the manner provided under 
section 6103(f) of the Internal Revenue Code of 1986, nothing". 
(h) TRANSFER OF 20 INVESTIGATION POSITIONS WITHIN THE DEPART- 
5 use app. 
MENT OF JUSTICE.—No later than 90 days after the date of appoint-
ment of the Inspector General of the Department of Justice, the 
Inspector General shall designate 20 full-time investigation posi-
tions which the Attorney General may transfer from the Office of 
Inspector General of the Department of Justice to the Office of 
Professional Responsibility of the Department of Justice for the 
performance of functions described under section 8D0))(3) of the 
Inspector General Act of 1978. Any personnel who are transferred 
pursuant to this subsection, and who, at the time of being so 
transferred, are protected from reduction in classification or com-
pensation under section 9(c) of such Act, shall continue to be so 
protected for 1 year after the date of transfer pursuant to this 
subsection. 
SEC. 103. UNIFORM SALARIES FOR INSPECTORS GENERAL. 
(a) UNIFORM SALARIES.—Section 5315 of title 5, United States 
Code, is amended by adding at the end thereof the following new 
paragraphs: 
"Inspector General, Department of Commerce. 
"Inspector General, Department of the Interior. 
"Inspector General, Department of Justice. 
"Inspector General, Department of the Treasury. 
"Inspector General, Agency for International Development. 
"Inspector General, Environmental Protection Agency. 
"Inspector 
General, 
Federal 
Emergency 
Management 
Agency. 
102 STAT. 2522 
PUBLIC LAW 100-504—OCT. 18, 1988 
"Inspector General, General Services Administration. 
"Inspector 
General, 
National 
Aeronautics 
and Space 
Administration. 
"Inspector General, Nuclear R^ulatory Commission. 
"Inspector General, Ofifice of Personnel Management. 
"Inspector General, Railroad Retirement Board. 
"Inspector General, Small Business Administration.", 
(b) CONFORMING AMENDMENTS.—Section 5316 of such title is 
amended by striking out the paragraphs relating to— 
(1) the Inspector General of the Department of Commerce; 
(2) the Inspector General of the Department of the Interior; 
(3) the Inspector General of the Agency for International 
Development; 
(4) the Inspector General of the Conmiunity Services 
Administration; 
(5) the Inspector General of the Environmental Protection 
Agency, 
(6) the 
Inspector 
General 
of the 
General 
Services 
Administration; 
(7) the Inspector General of the National Aeronautics and 
Space Administration; 
(8) 
the 
Inspector 
General 
of 
the 
Small 
Business 
Administration; 
(9) the Deputy Inspector General of the Department of 
Energy; and 
(10) the Deputy Inspector General of the Department of 
Health and Human Services. 
SEC 104. EXTENSION OF INSPECTOR GENERAL ACT PROTECTIONS AND 
REQUIREMENTS TO CERTAIN DESIGNATED FEDERAL ENTI-
TIES. 
(a) REQUIREMENTS FOR FEDERAL ENTITIES AND DESIGNATED FED-
ERAL ENTITIES.—The Inspector General Act of 1978 (as amended by 
section 102(f) of this title) is further amended by inserting after 
section 8D the following new section: 
"REQUIREMENTS FOR FEDERAL ENTITIES AND DESIGNATED FEDERAL 
ENTITIES 
5 use app. 
"SEC. 8E. (a) Notwithstanding section 11 of this Act, as used in this 
section— 
"(1) the term 'Federal entity' means any Government corpora-
tion (within the meaning of section 103(1) of title 5, United 
States Code), any (government controlled corporation (within 
the meaning of section 103(2) of such title), or any other entity 
in the Executive branch of the (jovernment, or any independent 
r^ulatory agency, but does not include— 
"(A) an establishment (as defined under section 11(2) of 
this Act) or part of an establishment; 
"(B) a designated Federal entity (as defined under para-
graph (2) of this subsection) or part of a designated Federal 
entity; 
"(C) the Executive Office of the President; 
"(D) the (Central Intelligence Agency; 
"(E) the General Accounting Office; or 
"(F) any entity in the judicial or legislative branches of 
the Government, including the Administrative Office of the 
PUBLIC LAW 100-504—OCT. 18, 1988 
102 STAT. 2523 
United States Courts and the Architect of the Capitol and 
any activities under the direction of the Architect of the 
Capitol; 
"(2) the term 'designated Federal entity' means ACTION, 
Amtrak, the Appalachian Regional Commission, the Board of 
Governors of the Federal Reserve System, the Board for Inter-
national 
Broadcasting, 
the 
Commodity 
Futures 
Trading 
Commission, the Consumer Product Safety Commission, the 
Corporation for Public Broadcasting, the Equal Employment 
Opportunity Commission, the Farm Credit Administration, the 
Federal Communications Commission, the Federal Deposit 
Insurance Corporation, the Federal Election Commission, the 
Federal Home Loan Bank Board, the Federal Labor Relations 
Authority, the Federal Maritime Commission, the Federal 
Trade Commission, the Interstate Commerce Commission, the 
Legal Services Corporation, the National Archives and Records 
Administration, the National Credit Union Administration, the 
National Endowment for the Arts, the National Endowment for 
the Humanities, the National Labor Relations Board, the Na-
tional Science Foundation, the Panama Canal Commission, the 
Peace Corps, the Pension Benefit Guaranty Corporation, the 
Securities and Exchange Commission, the Smithsonian Institu-
tion, the Tennessee Valley Authority, the United States 
International Trade Commission, and the United States Postal 
Service; 
"(3) the term 'head of the Federal entity' means any person or 
persons designated by statute £is the head of a Federal entity, 
and if no such designation exists, the chief policjnnaking officer 
or board of a Federal entity as identified in the list published 
pursuant to subsection (h)(1) of this section; 
"(4) the term 'head of the designated Federal entity' means 
any person or persons designated by statute as the head of a 
designated Federal entity and if no such designation exists, the 
chief policymaking officer or board of a designated Federal 
entity as identified in the list published pursuant to subsection 
(h)(1) of this section, except that with respect to the National 
Science Foundation, such term means the National Science 
Board; 
"(5) the term 'Office of Inspector General' means an Office of 
Inspector General of a designated Federal entity; and 
"(6) the term 'Inspector General' means an Inspector General 
of a designated Federal entity. 
"(b) No later than 180 days after the date of the enactment of this 
Establishment. 
section, there shall be established and maintained in each des-
ignated Federal entity an Office of Inspector General. The head of 
the designated Federal entity shall transfer to such office the offices, 
units, or other components, and the functions, pov/ers, or duties 
thereof, that such head determines are properly related to the 
functions of the Office of Inspector General and would, if so trans-
ferred, further the purposes of this section. There shall not be 
transferred to such office any program operating responsibilities. 
"(c) Except as provided under subsection (f) of this section, the 
Inspector General shall be appointed by the head of the designated 
Federal entity in accordance with the applicable laws and regula-
tions governing appointments within the designated Federal entity. 
"(d) Each Inspector GenersQ shall report to and be under the 
general supervision of the head of the designated Federal entity, but 
102 STAT. 2524 
PUBLIC LAW 100-504—OCT. 18, 1988 
shall not report to, or be subject to supervision by, any other officer 
or employee of such designated Federal entity. The head of the 
designated Federal entity shall not prevent or prohibit the Inspector 
General from initiating, carrying out, or completing any audit or 
investigation, or from issuing any subpena during the course of any 
audit or investigation. 
"(e) If an Inspector General is removed from office or is trans-
ferred to another position or location within a designated Federal 
entity, the head of the designated Federal entity shall promptly 
communicate in writing the reasons for any such removal or trans-
fer to both Houses of the Congress. 
"(fKl) The Chief Postal Inspector of the United States Postal 
Service shall also hold the position of Inspector General of the 
United States Postal Service, and for purposes of this section, shall 
report to, and be under the general supervision of, the Postmaster 
General of the United States Postal Service. The Postmaster Gen-
eral, in consultation with the Governors of the United States Postal 
Service, shall appoint the Chief Postal Inspector. The Postmaster 
General, with the concurrence of the Governors of the United States 
Postal Service, shall have power to remove the Chief Postal Inspec-
tor or transfer the Chief Postal Inspector to another position or 
location within the United States Postal Service. If the Chief Postal 
Inspector is removed or transferred in accordance with this subsec-
tion, the Postmaster General shall promptly notify both Houses of 
the Congress in writing of the reasons for such removal or transfer. 
"(2) For purposes of paragraph (1), the term 'Governors' has the 
same meaning as such term is defined under section 102(3) of title 
39, United States Code. 
"(g)(1) Sections 4, 5, 6 (other than subsections (aX7) and (aX8) 
thereof), and 7 of this Act shall apply to each Inspector General and 
Office of Inspector General of a designated Federal entity and such 
sections shall be applied to each designated Federal entity and head 
of the designated Federal entity (as defined under subsection (a)) by 
substituting— 
"(A) designated Federal entity' for 'establishment'; and 
"(B) 'head of the designated Federal entity* for 'head of the 
establishment'. 
"(2) In addition to the other authorities specified in this Act, an 
Inspector General is authorized to select, appoint, and employ such 
officers and employees as may be necessary for carrying out the 
functions, powers, and duties of the Office of Inspector General and 
to obtain the temporary or intermittent services of experts or 
consultants or an organization thereof, subject to the applicable 
laws and regulations that govern such selections, appointments, and 
employment, and the obtaining of such services, within the des-
ignated Federal entity. 
"(3) Notwithstanding the last sentence of subsection (d) of this 
section, the provisions of subsection (a) of section 8C (other than the 
provisions of subparagraphs (A), (B), (C), and (E) of subsection (aXD) 
shall apply to the Inspector General of the Board of Governors of the 
Federal Reserve System and the Chairman of the Board of Gov-
ernors of the Federal Reserve System in the same manner as such 
provisions apply to the Inspector General of the Department of the 
Treasury and the Secretary of the Treasury, respectively. 
Federal 
"(hXD No later than April 30, 1989, and annually thereafter, the 
Register, 
Director of the Office of Management and Budget, after consultation 
publication. 
^ith the Comptroller General of the United States, shall publish in 
PUBLIC LAW 100-504—OCT. 18, 1988 
102 STAT. 2525 
the Federal Register a list of the Federal entities and designated 
Federal entities and the head of each such entity (as defined under 
subsection (a) of this section). 
"(2) Beginning on October 31, 1989, and on October 31 of each 
Reports. 
succeeding calendar year, the head of each Federal entity (as de-
fined under subsection (a) of this section) shall prepare and transmit 
to the Director of the Office of Management and Budget and to each 
House of the Congress a report which— 
"(A) states whether there has been established in the Federal 
entity an office that meets the requirements of this section; 
"(B) specifies the actions taken by the Federal entity other-
wise to ensure that audits are conducted of its programs and 
operations in accordance with the standards for audit of govern-
mental organizations, programs, activities, and functions issued 
by the Comptroller General of the United States, and includes a 
list of each audit report completed by a Federal or non-Federal 
auditor during the reporting period and a summary of any 
particularly significant findings; and 
"(C) summarizes any matters relating to the personnel, pro-
grams, and operations of the Federal entity referred to prose-
cutive authorities, including a summary description of any 
preliminary investigation conducted by or at the request of the 
Federal entity concerning these matters, and the prosecutions 
and convictions which have resulted.", 
(b) CONFORMING AMENDMENT.—Section 410(b) of title 39, United 
States Code, is amended— 
(1) by striking out "and" at the end of paragraph (6); 
(2) by striking out the period at the end of paragraph (7) and 
inserting in lieu thereof a semicolon; 
(3) by striking out "The" in paragraph (8) and inserting in lieu 
thereof "the"; 
(4) by striking out the period at the end of paragraph (8) and 
inserting in lieu thereof a semicolon and "and"; and 
(5) by adding at the end thereof the following new paragraph: 
"(9) the provisions of section 8E of the Inspector General Act 
of 1978.". 
SEC. 105. RULE OF CONSTRUCTION OF SPECIAL PROVISIONS. 
The Inspector General Act of 1978 (as amended by sections 102(f) 
and 104 of this title) is further amended by inserting after section 8E 
the following new section: 
"RULE OF CONSTRUCTION OF SPECIAL PROVISIONS 
"SEC. 8F. The special provisions under section 8, 8A, 8B, 8C, or 8D 5 use app. 
of this Act relate only to the establishment named in such section 
and no inference shall be drawn from the presence or absence of a 
provision in any such section with respect to an establishment not 
named in such section or with respect to a designated Federal entity 
as defined under section 8E(a).". 
SEC. 106. PROVISIONS TO ENSURE UNIFORMITY AND RELIABILITY OF 
REPORTS. 
(a) REPORT INFORMATION REQUIRED ON AUDITS.—Section 5(a) of the 
Inspector General Act of 1978 is amended by striking out "and" at 
5 USC app. 
the end of paragraph (5) and by striking out paragraph (6) and 
inserting in lieu thereof: 
102 STAT. 2526 
PUBLIC LAW 100-504—OCT. 18, 1988 
"(6) a listing, subdivided according to subject matter, of each 
audit report issued by the Office during the reporting period 
and for each audit report, where applicable, the total dollar 
value of questioned costs (including a separate category for the 
dollar value of unsupported costs) and the dollar value of rec-
ommendations that funds be put to better use; 
"(7) a summary of each particularly significant report; 
"(8) statistical tables showing the total number of audit re-
ports and the total dollar value of questioned costs (including a 
separate category for the dollar value of unsupported costs), for 
audit reports— 
"(A) for which no management decision had been made 
by the commencement of the reporting period; 
"(B) which were issued during the reporting period; 
"(C) for which a management decision was made during 
the reporting period, including— 
"(i) the dollar value of disallowed costs; and 
"(ii) the dollar value of costs not disallowed; and 
"(D) for which no management decision has been made by 
the end of the reporting period; 
"(9) statistical tables showing the total number of audit re-
ports and the dollar value of recommendations that funds be 
put to better use by management, for audit reports— 
"(A) for which no management decision had been made 
by the commencement of the reporting period; 
"(B) which were issued during the reporting period; 
"(C) for which a management decision was made during 
the reporting period, including— 
"(i) the dollar value of recommendations that were 
agreed to by management; and 
"(ii) the dollar value of recommendations that were 
not agreed to by management; and 
"(D) for which no management decision has been made by 
the end of the reporting period; 
"(10) a summary of each audit report issued before the 
commencement of the reporting period for which no manage-
ment decision has been made by the end of the reporting period 
(including the date and title of each such report), an expla-
nation of the reasons such management decision has not been 
made, and a statement concerning the desired timetable for 
achieving a management decision on each such report; 
"(11) a description and explanation of the reasons for any 
significant revised management decision made during the 
reporting period; and 
"(12) information concerning any significant management 
decision with which the Inspector General is in disagreement.". 
5 use app. 
(b) REPORT ON FINAL ACTION.—Section 5(b) of such Act is amended 
by striking out "head of the establishment containing any comments 
such head deems appropriate." and inserting in lieu thereof the 
following: "head of the establishment containing— 
"(1) any comments such head determines appropriate; 
"(2) statistical tables showing the total number of audit 
reports and the dollar value of disallowed costs, for audit 
reports— 
"(A) for which final action had not been taken by the 
commencement of the reporting period; 
PUBLIC LAW 100-504—OCT. 18, 1988 
102 STAT. 2527 
"(B) on which management decisions were made during 
the reporting period; 
"(C) for which final action was taken during the reporting 
period, including— 
"(i) the dollar value of disallowed costs that were 
recovered by management through collection, offset, 
property in lieu of cash, or otherwise; and 
"(ii) the dollar value of disallowed costs that were 
written off by management; and 
"(D) for which no fin^ action has been taken by the end 
of the reporting period; 
"(3) statistical tables showing the total number of audit re-
ports and the dollar value of recommendations that funds be 
put to better use by management agreed to in a management 
decision, for audit reports— 
"(A) for which final action had not been taken by the 
conunencement of the reporting period; 
"(B) on which management decisions were made during 
the reporting period; 
"(C) for which final action was taken during the reporting 
period, including— 
"(i) the dollar value of recommendations that were 
actually completed; and 
"(ii) the dollar value of recommendations that 
management has subsequently concluded should not or 
could not be implemented or completed; and 
"(D) for which no final action has been taken by the end 
of the reporting period; and 
"(4) a statement with respect to audit reports on which 
management decisions have been made but final action has not 
been taken, other than audit reports on which a management 
decision was made within the preceding year, containing— 
"(A) a list of such audit reports and the date each such 
report was issued; 
(B) the dollar value of disallowed costs for each report; 
"(C) the dollar value of recommendations that funds be 
put to better use agreed to by management for each report; 
and 
"(D) an explanation of the reasons final action has not 
been taken with respect to each such audit report, 
except that such statement may exclude such audit reports that 
are under formal administrative or judicial appeal or upon 
which management of an establishment has agreed to pursue a 
l^islative solution, but shall identify the number of reports in 
each cat^ory so excluded.", 
(c) ISSUANCE OF REPORT ON FINAL ACTION.—Section 5(c) of such 
Public 
Act is amended by adding at the end thereof the following new |P|°^™^*^°"-
sentence: "Within 60 days after the transmission of the semiannual 
^^P" 
reports of each establishment head to the Congress, the head of each 
establishment shall make copies of such report available to the 
public upon request and at a reasonable cost.". 
(d) CONFORMING AMENDMENT; DEFINITIONS.—Section 5 of such Act 
is further amended by adding at the end thereof the following new 
subsection: 
"(f) As used in this section— 
"(1) the term 'questioned cost' means a cost that is questioned 
by the Office because of— 
102 STAT. 2528 
PUBLIC LAW 100-504—OCT. 18, 1988 
"(A) an alleged violation of a provision of a law, regula-
tion, contract, grant, cooperative agreement, or other agree-
ment or document governing the expenditure of funds; 
"(B) a finding that, at the time of the audit, such cost is 
not supported by adequate documentation; or 
"(C) a finding that the expenditure of funds for the 
intended purpose is unnecessary or unreasonable; 
"(2) the term 'unsupported cost' means a cost that is 
questioned by the Office because the Office found that, at the 
time of the audit, such cost is not supported by adequate 
documentation; 
"(3) the term 'disallowed cost' means a questioned cost that 
management, in a management decision, has sustained or 
agreed should not be charged to the Government; 
"(4) the term 'recommendation that funds be put to better 
use' means a recommendation by the Office that funds could be 
used more efficiently if management of an establishment took 
actions to implement and complete the recommendation, 
including— 
"(A) reductions in outlays; 
"(B) deobligation of funds from programs or operations; 
"(C) withdrawal of interest subsidy costs on loans or loan 
guarantees, insurance, or bonds; 
"(D) costs not incurred by implementing recommended 
improvements related to the operations of the establish-
ment, a contractor or grantee; 
"(E) avoidance of unnecessary expenditures noted in 
preaward reviews of contract or grant agreements; or 
"(F) any other savings which are specifically identified; 
"(5) the term 'management decision' means the evaluation by 
the management of an establishment of the findings and rec-
ommendations included in an audit report and the issuance of a 
final decision by management concerning its response to such 
findings and recommendations, including actions concluded to 
be necessary; and 
"(6) the term 'final action' means— 
"(A) the completion of all actions that the management of 
an establishment has concluded, in its management deci-
sion, are necessary with respect to the findings and rec-
ommendations included in an audit report; and 
"(B) in the event that the management of an establish-
ment concludes no action is necessary, final action occurs 
when a management decision has been made.". 
SEC. 107. OATH ADMINISTRATION AUTHORITY. 
5 use app. 
Section 6(a) of the Inspector General Act of 1978 is amended— 
(1) by redesignating paragraphs (5) through (8) as paragraphs 
(6) through (9), respectively, and 
(2) by inserting after paragraph (4) the following new 
paragraph: 
"(5) to administer to or take from any person an oath, 
affirmation, or affidavit, whenever necessary in the perform-
ance of the functions assigned by this Act, which oath, affirma-
tion, or affidavit when administered or taken by or before an 
employee of an Office of Inspector General designated by the 
Inspector General shall have the same force and effect as if 
administered or taken by or before an officer having a seal;". 
PUBLIC LAW 100-504—OCT. 18, 1988 
102 STAT. 2529 
SEC. 108. APPROPRIATION ACCOUNTS. 
Section 1105(a)(25) of title 31, United States Code, is amended to 
read as follows: 
"(25) a separate appropriation account for appropriations for 
each Office of Inspector General of an establishment defined 
under section 11(2) of the Inspector General Act of 1978.". 
SEC. 109. EXTERNAL REVIEWS. 
Section 4(b) of the Inspector General Act of 1978 is amended— 
5 use app. 
(1) by redesignating paragraphs (1), (2), and (3) as subpara-
graphs (A), (B), and (C), respectively; 
(2) by inserting "(1)" after "(b)"; and 
(3) by adding at the end thereof the following: 
"(2) For purposes of determining compliance with paragraph (1)(A) 
with respect to whether internal quality controls are in place and 
operating and whether established audit standards, policies, and 
procedures are being followed by Offices of Inspector General of 
establishments defined under section 11(2), Offices of Inspector Gen-
eral of designated Federal entities defined under section 8E(a)(2), 
and any audit office established within a Federal entity defined 
under section 8E(a)(l), reviews shall be performed exclusively by an 
audit entity in the Federal Government, including the General 
Accounting Office or the Office of Inspector General of each 
establishment defined under section 11(2), or the Office of Inspector 
General of each designated Federal entity defined under section 
8E(a)(2).". 
SEC. 110. TECHNICAL AMENDMENTS. 
(a) SENIOR EXECUTIVE SERVICE POSITIONS.—Section 6 of the Inspec-
tor General Act of 1978 is amended by adding at the end thereof the 
5 use app. 
following: 
"(d) For purposes of the provisions of title 5, United States Code, 
governing the Senior Executive Service, any reference in such provi-
sions to the 'appointing authority' for a member of the Senior 
Executive Service or for a Senior Executive Service position shall, if 
such member or position is or would be within the Office of an 
Inspector General, be deemed to be a reference to such Inspector 
General.". 
(b) 
COAST GUARD OPERATION AS PART OF DEPARTMENT OR 
AGENCY.—Section 8(e) of the Inspector General Act of 1978 is 5 use app. 
amended by inserting before the period at the end thereof the 
following: ", except that, when the Coast Guard operates as a service 
of another department or agency of the Federal Government, a 
member of the Coast Guard shall be deemed to be an employee of 
such department or agency". 
SEC. 111. REPORT ON IMPLEMENTATION. 
5 usC app. 
On October 31, 1989, the head of each designated Federal entity 
(as defined under section 8E(a)(2) of the Inspector General Act of 
1978) shall submit to the Director of the Office of Management and 
Budget and to each House of the Congress a report on the status of 
the implementation by that designated Federal entity of the require-
ments of section 8E of such Act. Such report shall identify any area 
in which implementation is not complete and state the reasons for 
that failure. 
10^ r\ 
Qi 
lOn-^ Q 
iQ . m 9 
102 STAT. 2530 
PUBLIC LAW 100-504—OCT. 18, 1988 
5 use app. 
5 use app. 
Government 
Printing Office 
Inspector 
General Act of 
1988 
44 use 101 note. 
SEC. 112. PAYMENT AUTHORITY SUBJECT TO APPROPRIATIONS. 
Any authority to make payments under this title shall be effective 
only to such extent as provided in appropriations Acts. 
SEC. 113. EFFECTIVE DATE. 
This title and the amendments made by this title shall take effect 
180 days after the date of the enactment of this title, except that 
section 5(a) (6) through (12) of the Inspector General Act of 1978 (as 
amended by section 106(a) of this title) and section 5(b) (1) through 
(4) of the Inspector General Act of 1978 (as amended by section 
106(b) of this title) shall take effect 1 year after the date of the 
enactment of this title. 
TITLE II—GOVERNMENT PRINTING 
OFFICE INSPECTOR GENERAL 
SEC. 201. SHORT TITLE. 
This title may be cited as the "Government Printing Office Inspec-
tor General Act of 1988". 
SEC. 202. OFFICE OF INSPECTOR GENERAL. 
Title 44 of the United States Code is amended by adding at the 
end thereof the following new chapter: 
"CHAPTER 39—GOVERNMENT PRINTING OFFICE: OFFICE 
OF INSPECTOR GENERAL 
"Sec. 
"3901. Purpose and establishment of the Office of Inspector Gteneral. 
"3902. Appointment of Inspector General; supervision; removal. 
"3903. Duties, responsibilities, authority, and reports. 
"§ 3901. Purpose and establishment of the Office of Inspector 
General 
"In order to create an independent and objective office— 
"(1) to conduct and supervise audits and investigations relat-
ing to the Government Printing Office; 
(2) to provide leadership and coordination and recommend 
policies to promote economy, efficiency, and effectiveness; and 
"(3) to provide a means of keeping the Public Printer and the 
Congress fully and currently informed about problems and 
deficiencies relating to the administration and operations of the 
Government Printing Office; 
there is hereby established an Office of Inspector General in the 
Government Printing Office. 
"§ 3902. Appointment of Inspector General; supervision; removal 
"(a) There shall be at the head of the Office of Inspector General, 
an Inspector General who shall be appointed by the Public Printer 
without regard to political affiliation and solely on the basis of 
integrity and demonstrated ability in accounting, auditing, financial 
analysis, law, management analysis, public administration, or inves-
tigations. The Inspector General shall report to, and be under the 
general supervision of, the Public Printer. The Public Printer shall 
have no authority to prevent or prohibit the Inspector General from 
initiating, canying out, or completing any audit or investigation, or 
PUBLIC LAW 100-504—OCT. 18, 1988 
102 STAT. 2531 
from issuing any subpena during the course of any audit or 
investigation. 
"(b) The Inspector General may be removed from office by the 
Public Printer. The Public Printer shall, promptly upon such re-
moval, communicate in writing the reasons for any such removal to 
each House of the Congress. 
"§ 3903. Duties, responsibilities, authority, and reports 
"(a) Sections 4, 5, 6 (other than subsection (a) (7) and (8) thereof), 
and 7 of the Inspector General Act of 1978 (Public Law 95-452; 
5 U.S.C. App. 3) shall apply to the Inspector General of the Govern-
ment Printing Office and the Office of such Inspector General and 
such sections shall be applied to the Government Printing Office 
and the Public Printer by substituting— 
"(1) 'Government Printing Office' for 'establishment'; and 
"(2) 'Public Printer' for 'head of the establishment'. 
"(b) The Inspector General, in carrying out the provisions of this 
chapter, is authorized to select, appoint, and employ such officers 
and employees as may be necessary for carrying out the functions, 
powers, and duties of the Office of Inspector General subject to the 
provisions of this title governing selections, appointments, and 
employment in the Government Printing Office (and any regula-
tions thereunder).". 
SEC. 203. TRANSFER OF OFFICE. 
44 USC 3901 
(a) IN GENERAL.—There is transferred to the Office of Inspector 
General established pursuant to this title, the office of the Gov-
ernment Printing Office referred to as the "Office of Inspector 
General". 
(b) RELATED PROVISIONS.—With respect to such transferred 
office— 
(1) sections 9 (b) and (c) of the Inspector General Act of 1978 
shall apply; and 
(2) all the functions, powers, and duties of the office trans-
ferred by subsection (a) shall lapse. 
(c) PERSONNEL.—Any person who, on the effective date of this title, 
held a position compensated in accordance with the applicable laws 
and regulations that govern selections, appointments, and employ-
ment within the Government Printing Office, and who, without a 
break in service, is appointed in the Office of Inspector General 
established by this title to a position having duties comparable to 
those performed immediately preceding such appointment shall 
continue to be compensated in the new position at not less than the 
rate provided for the previous position, for the duration of service in 
the new position. 
SEC. 204. AMENDMENT TO TABLE OF CHAPTERS. 
The table of chapters for title 44, United States Code, is amended 
by adding at the end thereof the following new item: 
"39. Government Printing Office: Office of Inspector General 
3901". 
SEC. 205. PAYMENT AUTHORITY SUBJECT TO APPROPRIATIONS. 
44 USC 3901 
Any authority to make payments under this title shall be effective 
only to such extent as provided in appropriations Acts. 
102 STAT. 2532 
PUBLIC LAW 100-504—OCT. 18, 1988 
44 u s e 3901 
SEC. 206. EFFECTIVE DATE. 
The provisions of this title and the amendments made by this title 
shall take effect 180 days after the date of the enactment of this 
title. 
Approved October 18, 1988. 
LEGISLATIVE HISTORY—S. 908 (H.R. 4054): 
HOUSE REPORTS: No. 100-771 accompanying H.R. 4054 (Comm. on Government 
Operations) and No. 100-1020 (Comm. of Conference). 
SENATE REPORTS: No. 100-150 (Comm. on Governmental Affairs). 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
Feb. 2, considered and passed Senate. 
July 26, H.R. 4054 considered and passed House; proceedings vacated and 
S. 908, amended, passed in lieu. 
Oct. 4, Senate agreed to conference report. 
Oct. 5, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 24 (1988): 
Oct. 18, Presidential statement.