An Act to reorganize the executive branch of the Government and increase its economy and efficiency by establishing Offices of Inspector General within the Departments of Agriculture, Commerce, Housing and Urban Development, the Interior, Labor, and Transportation, and within the Community Services Administration, the Environmental Protection Agency, the General Services Administration, the National Aeronautics and Space Administration, the Small Business Administration, and the Veterans' Administration, and for other purposes.
PL 95-452 (H.R.8588), enacted 10/12/1978

PUBLIC LAW 95-452—OCT. 12, 1978 
92 STAT. 1101 
Public Law 95-452 
95th Congress 
An Act 
Oct. 12. 1978 
[H.R. 8588] 
Inspector 
General Act of 
1978. 
5 u s e app. 
Office of 
^ , 
Inspector 
General. 
5 u s e app. 
To reorganize the executive branch of the Government and increase its economy 
and efficiency by establishing Offices of Inspector General within the Depart-
ments of Agriculture, Commerce, Housing and Urban Development, the 
Interior, Labor, and Transportation, and within the Community Services 
Administration, the Environmental Protection Agency, the General Services 
Administration, the National Aeronautics and Space Administration, the Small 
Business Administration, and the Veterans' Administration, and for other 
purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act be 
cited as the "Inspector General Act of 1978". 
PURPOSE; ESTABLISHMENT 
'" 
SEC. 2. In order to create independent and objective units— 
(1) to conduct and supervise audits and investigations relating 
to programs and operations of the Department of Agriculture, 
the Department of Commerce, the Department of Housing and 
Urban Development, the Department of the Interior, the Depart-
ment of Labor, the Department of Transportation, the Com-
munity Services Administration, the Environmental Protection 
Agency, the General Services Administration, the National Aero-
nautics and Space Administration, the Small Business Adminis-
tration, and the Veterans' Administration; 
(2) to provide leadership and coordination and recommend 
policies for activities designed (A) to promote economy, efficiency, 
and effectiveness in the administration of, and (B) to prevent 
and detect fraud and abuse in, such programs and operations; and 
(3) to provide a means for keeping the head of the establishment 
and the Congress fully and currently informed about problems 
and deficiencies relating to the administration of such programs 
and operations and the necessity for and progress of corrective 
action; 
thereby is hereby established in each of such establishments an office 
of Inspector General. 
APPOINTMEXT AXD REMOVAL OF OFFICERS 
SEC. 3. (a) There shall be at the head of each Office an Inspector Gen- 5 USC app. 
eral who shall be appointed by the President, by and with the advice 
and consent of the Senate, without regard to political affiliation and 
solely on the basis of integrity and demonstrated ability in accounting, 
auditing, financial analysis, law, management analysis, public adminis-
tration, or investigations. Each Inspector General shall report to and 
be under the general supervision of the head of the establishment 
involved or, to the extent such authority is delegated, the officer next 
in rank below such head, but shall not report to, or be subject to super-
vision by, any other ofiicer of such establishment. Neither the head of 
the establishment nor the officer next in rank below such head shall pre-
vent 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. 
92 STAT. 1102 
PUBLIC LAW 95-452—OCT. 12, 1978 
(b) An Inspector General may be removed from office by the Presi-
dent. The President shall communicate the reasons for any such 
removal to both Houses of Congress. 
(c) For the purposes of section 7324 of title 5, United States Code, 
no Inspector General shall be considered to be an employee who deter-
mines policies to be pursued by the United States in the nationwide 
administration of Federal laws. 
(d) Each Inspector General shall, in accordance with applicable 
laws and regulations governing the civil service— 
(1) appoint an Assistant Inspector General for Auditing who 
shall have the responsibility for supervising the performance of 
auditing activities relating to programs and operations of the 
establishment, and 
(2) appoint an Assistant Inspector General for Investigations 
•^, ,^i.' 
who shall have the responsibility for supervising the perform-
ance of investigative activities relating to such programs and 
.«<!;, ij^t'-S a 
operations. 
DUTIES AND RESPONSIBILITIES 
5 use app. 
SEC. 4. (a) It shall be the duty and responsibility of each Inspector 
General, with respect to the establishment within which his Office is 
established— 
V 
(1) to provide policy direction for and to conduct, supervise, 
and coordinate audits and investigations relating to the programs 
and operations of such establishment; 
(2) to review existing and proposed legislation and regulations 
relating to programs and operations of such establishment and to 
make recommendations in the semiannual reports required by sec-
tion 5(a) concerning the impact of such legislation or regulations 
on the economy and efficiency in the administration of programs 
and operations administered or financed by such establishment or 
the prevention and detection of fraud and abuse in such programs 
and operations; 
(3) to recommend policies for, and to conduct, supervise, or 
coordinate other activities carried out or financed by such estab-
lishment for the purpose of promoting economy and efficiency in 
the administration of, or preventing and detecting fraud and 
abuse in, its programs and operations; 
(4) to recommend policies for, and to conduct, supervise, or 
coordinate relationships betAveen such establishment and other 
Federal agencies. State and local governmental agencies, and non-
governmental entities with respect to (A) all matters relating to 
..,;. 
* 
the promotion of economy and efficiency in the administration of, 
or the prevention and detection of fraud and abuse in, programs 
and operations administered or financed by such establishment, or 
(B) the identification and prosecution of participants in such 
fraud or abuse; and 
(5) to keep the head of such establishment and the Congress 
fully and currently informed, by means of the reports required by 
section 5 and otherwise, concerning fraud and other serious 
problems, abuses, and deficiencies relating to the administration 
of programs and operations administered or financed by such 
establishment, to recommend corrective action concerning such 
problems, abuses, and deficiencies, and to report on the progress 
made in implementing such corrective action. 
(b) In carrying out the responsibilities specified in subsection (a) 
(1), each Inspector General shall— 
PUBLIC LAW 95-452—OCT. 12, 1978 
92 STAT. 1103 
(1) comply with standards established by the Comptroller Gen-
eral of the United States for audits of Federal establishments, 
organizations, programs, activities, and functions; 
(2) establish guidelines for determining when it shall be appro-
priate to use non-Federal auditors; and 
(3) take appropriate steps to assure that any work performed 
by non-Federal auditors complies with the standards established 
by the Comptroller General as described in paragraph (1). 
(c) In carrying out the duties and responsibilities established under 
this Act, each Inspector General shall give particular regard to the 
activities of the Comptroller General of the United States with a view 
toward avoiding duplication and insuring effective coordination and 
cooperation. 
(d) In carrying out the duties and responsibilities established under 
this Act, each Inspector General shall report expeditiously to the 
Attorney General whenever the Inspector General has reasonable 
grounds to believe there has been a violation of Federal criminal law. 
Report 
violations to 
Attorney 
General. 
REPORTS 
SEC. 5. (a) Each Inspector General shall, not later than April 30 and 5 USC app. 
October 31 of each year, prepare semiannual reports summarizing the 
activities of the Office during the immediately preceding six-month 
periods ending March 31 and September 30. Such reports shall include, 
but need not be limited to— 
(1) a description of significant problems, abuses, and deficien-
cies relating to the administration of programs and operations 
of such establishment disclosed by such activities during the 
reporting period; 
(2) a description of the recommendations for corrective action 
made by the Office during the reporting period with respect to 
significant problems, abuses, or deficiencies identified pursuant to 
paragraph (1); 
(3) an identification of each significant recommendation 
described in previous semiannual reports on which corrective 
action has not been completed; 
(4) a summary of matters referred to prosecutive authorities 
and the prosecutions and convictions which have resulted; 
(5) a summary of each report made to the head of the estab-
lishment under section 6(b) (2) during the reporting period; and 
(6) a listing of each audit report completed by the Office during 
the reporting period. 
(b) Semiannual reports of each Inspector General shall be fur- Transmittal to 
nished to the head of the establishment involved not later than Congress. ^^ 
April 30 and October 31 of each year and shall be transmitted by such 
' 
head to the appropriate committees or subcommittees of the Congress 
within thirty days after receipt of the report, together with a report 
by the head of the establishment containing any comments such head 
deems appropriate. 
(c) Within sixty days of the transmission of the semiannual reports Availability to 
of each Inspector General to the Congress, the head of each establish- public, 
ment shall make copies of such report available to the public upon 
request and at a reasonable cost. 
(d) Each Inspector General shall report immediately to the head 
of the establishment involved whenever the Inspector General becomes 
aware of particularly serious or flagrant problems, abuses, or deficien-
cies relating to the administration of programs and operations of 
92 STAT. 1104 
PUBLIC LAW 95-452—OCT. 12, 1978 
Transmittal to 
such establishment. The head of the establishment shall transmit any 
Congress. 
gu^h report to the appropriate committees or subcommittees of Con-
gress within seven calendar days, together with a report by the head 
of the establishment containing any comments such head deems 
appropriate. 
AUTHORITY; ADMINISTRATION PROVISIONS 
5 use app. 
SEC. 6. (a) In addition to tlie authority otherwise provided by this 
Act, each Inspector General, in carrying out the provisions of this 
Act, is authorized— 
(1) to have access to all records, reports, audits, reviews, docu-
ments, papers, recommendations, or other material available to 
the applicable establishment which relate to programs and opera-
tions with respect to which that Inspector General has responsi-
bilities under this Act; 
(2) to make such investigations and reports relating to the 
administration of the programs and operations of the applicable 
establishment as are, in the judgment of the Inspector General, 
necessary or desirable; 
(3) to request such information or assistance as may be neces-
,^,j^ 'ii I 
sary for carrying out the duties and responsibilities provided by 
•' "'''"" 
this Act from any Federal, State, or local governmental agency 
or unit thereof; 
(4) to require by subpena the production of all information, 
documents, reports, answers, records, accounts, papers, and other 
data and documentary evidence necessary in the performance of 
the functions assigned by this Act, which subpena, in the case of 
contumacy or refusal to obey, shall be enforceable by order of any 
appropriate United States district court: Provided, That pro-
cedures other than subpenas shall be used by the Inspector General 
to obtain documents and information from Federal agencies; 
(5) to have direct and prompt access to the head of the estab-
lishment involved when necessary for any purpose pertaining to 
the performance of functions and responsibilities under this Act; 
(6) to select, appoint, and employ such officers and employees as 
may be necessary for carrying out the functions, powers, and 
duties of the Office subject to the provisions of title 5, United 
States Code, governing appointments in the competitive service, 
and the provisions of chapter 51 and subchapter III of chapter 53 
5 use 5101 et 
of such title relating to classification and General Schedule pay 
seq., 5331. 
rates; 
(7) to obtain services as authorized by section 3109 of title 5, 
,
, 
United States Code, at daily rates not to exceed the equivalent 
rate prescribed for grade GS-18 of the General Schedule by 
5 use 5332 note. 
section 5332 of title 5, United States Code; and 
(8) to the extent and in such amounts as may be provided in 
advance by appropriations Acts, to enter into contracts and other 
arrangements for audits, studies, analyses, and other services wath 
public agencies and with private persons, and to make such pay-
^, , 
ments as may be necessary to carry out the provisions of this Act. 
(b) (1) Upon request of an Inspector General for information or 
assistance under subsection (a)(3), the head of any Federal agency 
involved shall, insofar as is practicable and not in contravention of 
any existing statutory restriction or regulation of the Federal agency 
from which the information is requested, furnish to such Inspector 
General, or to an authorized designee, such information or assistance. 
(2) Whenever information or assistance requested under subsection 
PUBLIC LAW 95-452—OCT. 12, 1978 
92 STAT. 1105 
(a) (1) or (a) (3) is, in the judgment of an Inspector General, 
unreasonably refused or not provided, the Inspector General shall 
report the circumstances to the head of the establishment involved 
without delay. 
(c) Each head of an establishment shall provide the Office within 
such establishment with appropriate and adequate office space at cen-
tral and field office locations of such establishment, together with such 
equipment, office supplies, and communications facilities and services 
as may be necessary for the operation of such offices, and shall provide 
necessary maintenance services for such offices and the equipment and 
facilities located therein. 
EMPLOTEE COMPLAINTS 
'• ' 
SEC. 7. (a) The Inspector General may receive and investigate com- 5 USC app. 
plaints or information from an employee of the establishment concern-
ing the possible existence of an activity constituting a violation of law, 
rules, or regulations, or mismanagement, gross waste of funds, abuse of 
authority or a substantial and specific danger to the public health and 
safety. 
(b) The Inspector General shall not, after receipt of a complaint or 
information from an employee, disclose the identity of the employee 
without the consent of the employee, unless the Inspector General 
determines such disclosure is unavoidable during the course of the 
investigation. 
(c) Any employee who has authority to take, direct others to take, 
recommend, or approve any personnel action, shall not, with respect to 
such authority, take or threaten to take any action against any 
employee as a reprisal for making a complaint or disclosing informa-
tion to an Inspector General, unless the complaint was made or the 
information disclosed with the knowledge that it was false or with 
willful disregard for its truth or falsity. 
.; J;; 
J, 
SEMIANNUAL REPORTS 
f 
— -
SEC. 8 (a) (1) The Secretary of Defense shall submit to the Congress Submittal to 
semiannual reports during the period ending October 1, 1982, sum- Congress, 
marizing the activities of the audit, investigative and inspection units 5 USC app. 
of the Department of Defense. Such reports shall be submitted within 
sixty days of the close of the reporting periods ending March 31 and 
September 30 and shall include, but not be limited to— 
(A) a description of significant instances or patterns of fraud, 
5 
waste, or abuse disclosed by the audit, investigative, and inspection 
activities during the reporting period and a description of recom-
mendations for corrective action made with respect to such 
instances or patterns; 
(B) a summary of matters referred for prosecution and of the 
I 
results of such prosecutions; and 
, . ,
-
i 
(C) a statistical summary, by categories of subject matter, of 
audit and inspection reports completed during the reporting 
period. 
(2) Within sixty days of the transmission of the semiannual reports. Availability to 
the Secretary shall make copies of such reports available to the public public, 
upon request and at a reasonable cost. 
(3) If the Secretary concludes that compliance with the reporting 
requirements in paragraphs (1) and (2) of this subsection would 
require inclusion of material that may constitute a threat to the 
92 STAT. 1106 
PUBLIC LAW 95-452—OCT. 12, 1978 
Submittal of 
proposed 
ition. 
Task force, 
establishment. 
Membership. 
Comprehensive 
report. 
national security or disclose an intelligence function or activity, the 
Secretary may exclude such material from the report. If material is 
excluded from a report under this subsection, the Secretary shall pro-
vide the chairmen and ranking minority members of the appropriate 
committees or subcommittees with a general description of the nature 
of the material excluded. 
(4) The Secretary may delegate his responsibilities under para-
graplis (1) through (3) : Provided, That the delegation be to an 
official witliin the Office of the Secretary of Defense who is a Presi-
dential appointee confirmed by the Senate. In preparing the reports, 
the designee of the Secretary shall have the same access to information 
held by the audit, investigative or inspection units as the Secretary 
would. 
(5) In order to effectuate the purposes of this Act with respect to the 
Department of Defense, the Secretary of Defense shall submit, not 
later than March 31,1981, proposed legislation to establish appropriate 
reporting procedures, for the period after October 1,1982, concerning 
the audit, investigative and inspection activities of the Department of 
Defense. 
(b) (1) The Secretary of Defense shall establish a task force to study 
the operation of the audit, investigative, and inspection components in 
the Department of Defense which engage in the prevention and detec-
tion of fraud, waste, and abuse. The Secretary shall appoint the 
Director and other members of the task force: Provided^ That the 
Director shall be a person who is not an employee of the Department 
of Defense. The Director shall have the authority to hire such addi-
tional staff as is necessary to complete the study. 
(2) The Director and members of the task force and, upon the 
request of a member or the Director, the staff of the task force shall 
have access to all information relevant to the study and held by the 
audit, investigative, and inspection components in the Department of 
Defense including reports prepared by such components: Provided, 
That— 
(A) such information or reports may be withheld if a com-
ponent head determines that disclosure would compromise an 
* active investigation of wrong-doing; 
(B) the Inspectors General of the Military Departments may 
delete the names of individuals in a report prej>ared by them if 
the Inspector General determines that the inclusion of the names 
would affect the ability of the Inspector General to obtain infor-
mation in future investigations and inspections; and 
(C) no classified information shall be released to the task force 
unless the members and staff who will have access to the classified 
information have the appropriate clearances. 
Upon the request of the Director, the Secretary of Defense and the 
Secretaries of the Military Departments shall assure that the task 
force has access to information as provided in this subsection. 
(3) The task force shall prepare a comprehensive report that shall 
include, but not be limited to— 
„ 
(A) a description of the functions of the audit, investigative 
and inspection components in the Department of Defense and the 
extent to which such components cooperate in their efforts to detect 
and prevent fraud, waste and abuse; 
(B) an evaluation of whether such components are sufficiently 
"::. independent to carry out their responsibilities; 
(C) the relationship between such components and the Criminal 
Division of the Department of Justice; and 
PUBLIC LAW 95-452—OCT. 12, 1978 
92 STAT. 1107 
(D) recommendations for change in organization or functions 
that may be necessary to improve the effectiveness of such 
components. 
(4) The task force shall submit its final report to the Secretary of 
Final report. 
Defense and the Director of the Office of Management and Budget. 
The Secretary and the Director of the Office of Management and 
Budget may, in the form of addenda to the report, provide any addi-
tional information that they deem necessary. The Secretary shall sub-
mit the report and the addenda to the Congress not later than April 1, 
1980. The task force shall be disestablished sixty days following such 
submission. 
(5) Any matter concerning the intelligence or counterintelligence 
activities of the Department of Defense and assigned by i-egulation 
to the Inspector General for Defense Intelligence shall be excluded 
from the study of the task force. 
TRANSFER OF FUNCTIONS 
SEC. 9. (a) There shall be transferred— 
5 USC app. 
(1) to the Office of Inspector General— 
(A) of the Department of Agriculture, the offices of that 
department referred to as the "Office of Investigation" and 
the "Office of Audit"; 
(B) of the Department of Commerce, the offices of that 
department referred to as the "Office of Audits" and the 
"Investigations and Inspections Staff" and that portion of 
the office referred to as the "Office of Investigations and 
Security" which has responsibility for investigation of 
alleged criminal violations and program abuse; 
(C) of the Department of Housing and Urban Develop-
ment, the office of that department referred to as the "Office 
of Inspector General"; 
(D) of the Department of the Interior, the office of 
that department referred to as the "Office of Audit and 
Investigation"; 
(E) of the Department of Labor, the office of that depart-
ment referred to as the "Office of Special Investigations"; 
(F) of the Department of Transportation, the offices of 
that department referred to as the "Office of Investigations 
and Security" and the "Office of Audit" of the Department, 
,; 
the "Offices of Investigations and Security, Federal Aviation 
Administration", and "External Audit Divisions, Federal 
Aviation Administration", the "Investigations Division and 
the External Audit Division of the Office of Program ^ 
Review and Investigation, Federal Highway Administra-
tion", and the "Office of Program Audits, Urban Mass 
Transportation Administration"; 
(G) of the Community Services Administration, the offices 
: 
of that agency referred to as the "Inspections Division", 
the "External Audit Division", and the "Internal Audit 
Division"; 
(H) of the Environmental Protection Agency, the offices 
of that agency referred to as the "Office of Audit" and the 
"Security and Inspection Division"; 
. 
(I) of the General Services Administration, the offices of 
that agency referred to as the "Office of Audits" and the 
"Office of Investigations": 
92 STAT. 1108 
PUBLIC LAW 95-452—OCT. 12, 1978 
'" 
(J) of the National Aeronautics and Space Administration, 
;. 
the offices of that agency referred to as the "Management 
Audit Office" and the "Office of Inspections and Security"; 
. . :
:
>
i fsfiil 
• 
(K) of the Small Business Administration, the office of 
that agency referred to as the "Office of Audits and Investi-
gations"; and 
(L) of the Veterans' Administration, the offices of that 
agency referred to as the "Office of Audits" and the "Office 
of Investigations"; and 
(2) such other offices or agencies, or functions, powers, or duties 
thereof, as the head of the establishment involved may determine 
are properly related to the functions of the Office and would, if 
so transferred, further the purposes of this Act, 
except that there shall not be transferred to an Inspector General 
under paragraph (2) program operating responsibilities. 
(b) The personnel, assets, liabilities, contracts, property, records, 
and unexpended balances of appropriations, authorizations, alloca-
tions, and other funds employed, held, used, arising from, available 
H
T
s "' 
or to be made available, of any office or agency the functions, powers, 
and duties of which are transferred under subsection (a) arc hereby 
transferred to the applicable Office of Inspector General. 
(c) Personnel transferred pursuant to subsection (b) shall be trans-
ferred in accordance with applicable laws and regulations relating to 
the transfer of functions except that the classification and compen-
sation of such personnel shall not be reduced for one year after such 
transfer. 
(d) In any case where all the functions, powers, and duties of any 
office or agency are transferred pursuant to this subsection, such office 
or agency shall lapse. Any person who, on the effective date of this 
Act, held a position compensated in accordance with the General 
Schedule, and who, without a break in service, is appointed in an Office 
of Inspector General 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. 
CONFORMING AND TECHNICAL 
AMENDMENTS 
SEC. 10. (a) Section 5315 of title 5, United States Code, is amended 
by adding at the end thereof the following new paragraphs: 
"(122) Inspector General, Department of Health, Education, 
and Welfare. 
"(123) Inspector General, Department of Agriculture. 
"(124) Inspector General, Department of Housing and Urban 
Development. 
"(125) Inspector General, Department of Labor. 
"(126) Inspector General, Department of Transportation. 
" (127) Inspector General, Veterans' Administration.", 
(b) Section 5316 of title 5, United States Code, is amended by adding 
at the end thereof the following new paragraphs: 
"(144) Deputy Inspector General, Department of Health, Edu-
cation, and Welfare. 
"(145) Inspector General, Department of Commerce. 
" (146) Inspector General, Department of the Interior. 
"(147) Inspector General, Community Services Administra-
tion. 
PUBLIC LAW 95-452—OCT. 12, 1978 
92 STAT. 1109 
"(148) Inspector General, Environmental Protection Agency. 
" (149) Inspector General, General Services Administration. 
"(150) Inspector General, National Aeronautics and Space 
Administration. 
"(151) Inspector General, Small Business Administration.". 
• *•, 
(c) Section 202(e) of the Act of October 15, 1976 (Public Law 
94-505, 42 U.S.C. 3522), is amended by striking out "section 6(a)(1)" 
and "section 6(a) (2)" and inserting in lieu thereof "section 206(a) (1)" 
and "section 206(a) (2)", respectively. 
DEFINITIONS 
SEC. 11. AS used in this Act— 
5 USC app. 
(1) the term "head of the establishment" means the Secretary 
of Agriculture, Commerce, Housing and Urban Development, the 
Interior, Labor, or Transportation or the Administrator of Com- 
• " '^. 
munity Services, Environmental Protection, General Services, 
'' 
National Aeronautics and Space, Small Business, or Veterans' 
Affairs, as the case may be; 
(2) the term "establishment" means the Department of Agri-
culture, Commerce, Housing and Urban Development, the Inte-
rior, Labor, or Transportation or the Community Services 
Administration, the Environmental Protection Agency, the Gen-
s 
eral Services Administration, the National Aeronautics and Space 
Administration, the Small Business Administration, or the Vet-
erans' Administration, as the case may be; 
(3) the term "Inspector General" means the Inspector General 
of an establishment; 
(4) the term "Office" means the Office of Inspector General of 
an establishment; and 
(5) the term "Federal agency" means an agency as defined in 
section 552(e) of title 5 (including an establishment as defined 
in paragraph (2)), United States Code, but shall not be construed 
to include the General Accounting Office. 
EFFECTIVE DATE 
SEC. 12. The provisions of this Act and the amendments made by this 5 USC app. 
Act shall take effect October 1,1978. 
Approved October 12, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-584 (Comm. on Government Operations). 
SENATE REPORT No. 95-1071 (Comm. on Governmental Affairs). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
Apr. 18, considered and passed House. 
Sept. 22, considered and passed Senate, amended. 
Sept. 27, House concurred in Senate amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 41: 
Oct. 12, Presidential statement.