[Congressional Record Volume 141, Number 116 (Tuesday, July 18, 1995)]
[House]
[Pages H7149-H7152]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      PROVIDING FOR ADDITIONAL AUDITING BY HOUSE INSPECTOR GENERAL

  Mr. ARMEY. Mr. Speaker, I offer a privileged resolution (H. Res. 192) 
and ask for its immediate consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 192

       Whereas on January 4, 1995, the House of Representatives 
     voted 430-1, that ``during the One Hundred Fourth Congress, 
     the Inspector General, in consultation with the Speaker and 
     the Committee on House Oversight, shall coordinate, and as 
     needed contract with independent auditing firms to complete, 
     a comprehensive audit of House financial records and 
     administrative operations, and report the results in 
     accordance with Rule VI,'' [House Resolution 6, Section 107];
       Whereas on July 18, 1995, the House Inspector General in 
     cooperation with the independent auditing firm presented the 
     findings of the first-ever audit of the House of 
     Representatives under the provisions of the House Resolution;
       Whereas this first-ever audit included both the financial 
     and administrative functions of the House, representing a 
     wide range of activities;
       Whereas the audit does not reach conclusions in all areas 
     due in part to a ``method of accounting underlying the 
     preparation and dissemination of financial management 
     information [that] was simplistic and ill-suited for an 
     organization the size of the House,'' [Report of Independent 
     Accountants, July 18, 1995];
       Whereas ``In addition to the deficiencies in accounting and 
     reporting, and in information systems, there are other 
     weaknesses in the House's internal control structure...the 
     severity of these weaknesses affects the reliability of the 
     financial statements, because in the absence of an effective 
     internal control structure, there can be no assurance that 
     all House transactions were properly recorded, accumulated 
     and reported in accordance with the rules, policies and 
     procedures of the House,'' [Report of Independent 
     Accountants, July 18, 1995];
       Whereas it is the sense of the House, including the 
     leadership of both parties, that a followup audit should be 
     completed to further examine the transactions and reports 
     contained therein; and

[[Page H 7150]]

       Whereas the House Inspector General, a nonpartisan 
     appointee who was selected by the former majority and 
     retained by the current majority, has requested and should be 
     given resources necessary to complete this followup audit: 
     Now, therefore, be it
       Resolved, That the Inspector General is authorized and 
     directed to take such steps as necessary to carry out any 
     additional auditing required to ensure the completion of the 
     audit of House financial and administrative operations 
     authorized during the One Hundred Fourth Congress by House 
     Resolution 6, Section 107.
       Sec. 2. The Inspector General shall complete such 
     additional auditing expeditiously, but in no case later than 
     November 30, 1995.
       Sec. 3. The Committee on House Oversight of the House of 
     Representatives shall have the authority to prescribe 
     regulations and to authorize the expenditure of additional 
     funds from the appropriate House accounts as may be required 
     to fully ensure the final completion of the comprehensive 
     audit of House financial and administrative operations.
       Sec. 4. The results of such auditing shall be submitted in 
     accordance with House Rule VI, clause 3(d) which provides 
     ``simultaneously submitting to the Speaker, the majority 
     leader, the minority leader, and the chairman and ranking 
     minority party member of the Committee on House Oversight a 
     report on each audit conducted under this rule.''.
       Sec. 5. The results of such auditing, shall to the extent 
     appropriate, be reported by the Inspector General in 
     accordance with House Rule VI, clause 3(e) which provides 
     ``reporting to the Committee on Standards of Official conduct 
     information involving possible violations of any Member, 
     officer, or employee of the House any rule of the House or 
     any law applicable to the performance of official duties or 
     the discharge of official responsibilities which may require 
     referral to the appropriate Federal or State authorities 
     pursuant to clause 4(e)91)(C) of rule X.''.

  Mr. ARMEY (during the reading). Mr. Speaker I ask unanimous consent 
that the resolution be considered as read and printed in the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  The SPEAKER pro tempore. The gentleman from Texas [Mr. Armey] is 
recognized for 1 hour.
  Mr. ARMEY. Mr. Speaker, I yield 30 minutes to the gentleman from 
Missouri [Mr. Gephardt], the distinguished minority leader, for 
purposes of debate only.
  Mr. Speaker, pending that, I ask unanimous consent that the gentleman 
from California [Mr. Thomas], be allowed to control my 30 minutes.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. THOMAS. Mr. Speaker, I yield such time as she may consume to the 
gentlewoman from Washington [Ms. Dunn], a member of the Committee on 
House Oversight.
  Ms. DUNN of Washington. Mr. Speaker, I thank the gentleman for 
yielding.
  Mr. Speaker, in keeping with the theme of the 104th Congress, we are 
today keeping another promise we made to the American people. That 
promise is a commitment to openness and to reform, to let the Sun shine 
in on the internal operations of the House of Representatives.
  As promised, the results of the first audit ever done in the U.S. 
House of Representatives by the independent nonpartisan firm of Price 
Waterhouse have been revealed, and, as expected, the auditors found 
that during a single 15-month time period, from October 1993 to 
December 1994, the Congress squandered millions of taxpayer dollars 
because of poor management practices, inefficiencies, and waste in all 
House operations. Corrective steps recommended by the auditors will 
help the Congress save the taxpayers over $20 million. We have already 
begun instituting some of those reforms
  Mr. Speaker, the legislation before us for a further forensic audit 
will help ensure that never again will this honorable institution 
become a casualty in the course of Members conducting the people's 
business with the public's money.
  We are acting decisively to restore the American people's faith in 
this institution. Taxpayers deserve full disclosure, and they are 
finally getting it. They deserve full accountability, and they are 
finally getting it. They deserve to have their Representatives take 
responsibility for the way things are run in Congress, and in the 104th 
Congress, Mr. Speaker, they are finally getting it. And from now on, 
they always will.
  Mr. Speaker, when the auditors cannot even deliver an opinion because 
financial records were so inadequate or incomplete, we have got a 
problem. I was told at today's Committee on House Oversight meeting 
that in the private sector this type of finding of no opinion by the 
auditors is unheard of. What a shame.
  I applaud the bipartisan work of the House leadership, Mr. Speaker, 
of the Inspector General and the auditors, and I am very pleased to 
support this bill.
  Mr. THOMAS. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Michigan [Mr. Ehlers], the vice chairman of the 
Committee on House Oversight.
  Mr. EHLERS. Mr. Speaker, I have not been in Congress a long time. I 
was elected approximately a year and a half ago in a special election. 
But it took a very short time after my arrival to realize that there 
was something wrong with the way the books of the House were kept.
  I have always insisted on keeping track of the finances in my office 
during my years in the legislature in Michigan, and I tried to do the 
same here, and found I simply could not get the answers I needed from 
the Finance Office.
  It is clear that some action had to be taken. I am delighted that at 
the beginning of this Congress, we passed a resolution virtually 
unanimously, 430 votes to 1 vote, we passed a resolution asking for an 
independent outside audit from a major accounting firm.
  Today we received the report from the auditor, and the auditor's 
opinion was that he had no opinion. He could not state an opinion 
because the House books were in such a mess that he could not conclude 
whether there had been anything done wrong, any misdeeds performed, or 
whether the books in fact balanced.
  This is a more serious indictment than we expected, and certainly has 
to be dealt with. The auditor may not have an opinion, but I certainly 
have an opinion, and my opinion is that we have to straighten this out 
and straighten it out soon. I am very pleased that the Committee on 
House Oversight under the chairmanship of the gentleman from California 
[Mr. Thomas] has taken action, and we plan to straighten the House 
books out as soon as possible.
  Furthermore, and this resolution speaks to that, we will maintain 
them in order. We will insist on regular outside audits to make sure 
that the House books continue to be in order from henceforth.
  I think it is incumbent upon us to do that. There is a matter of 
public accountability. We are responsible to the people of the United 
States for the money we expend, and we have insisted on the various 
departments of our Government giving us accountability for the money 
that we allocate to them. At the very least, we as a House must have 
accountability to ourselves and to the public for the money that we 
spend for the operation of this august institution.
  I speak strongly in favor of adopting the resolution, and ensuring 
not only that we straighten out the House books, but also that they 
will remain in good condition from henceforth.
  Mr. Speaker, I pledge to my constituents, I pledge to our colleagues, 
and I pledge to my colleagues on the Committee on House Oversight, to 
do everything I can to assist in this effort by the Committee on House 
Oversight to ensure that the House can be proud of the financial 
operation of its own affairs.
  Mr. GEPHARDT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of this resolution. Obviously, I have 
co-authored it with the distinguished majority leader. As you know, 
this resolution directs the inspector general of the House to continue 
certain aspects of the audit in those areas where Price Waterhouse 
auditors have recommended further examination.
  I join in the introduction of this resolution to fulfill the promise 
of the audit and to ensure that all questions raised in the course of 
the audit are fully and completely answered. I urge all Members to 
support this resolution.
  As has been made clear in the audit, the systems and procedures of 
the House during the audit period were 

[[Page H 7151]]
outdated and incomplete. This occurred even though for the entire 
period of the audit the House Finance Office was under the direction of 
the nonpartisan administrator picked by Speaker Foley, Mr. Michel, the 
minority leader, and myself, in a bipartisan way.
  The auditors found that the financial information available to them 
simply did not provide explanations for all transactions and procedures 
they reviewed. As a result, the auditors were unable to draw final 
conclusions about certain transactions and procedures.
  The auditors themselves have recommended that the House undertake a 
further review to resolve these differences. The passage of this 
resolution will accomplish this. The resolution directs the inspector 
general to finish the work and to reach the conclusions that are 
necessary to determine if any further action by any relevant House 
committee is required.
  Under the resolution, the inspector general will report no later than 
November 30 of this year the results of his further review. These 
reports will be referred to the relevant House committees for 
appropriate action. This is the right course of action for the House. 
Any other approach would result in the premature release of information 
that is incomplete, and, worse, potentially misleading. If the auditors 
themselves found the information inconclusive, how can Members be 
expected to be able to explain the questions remaining in the audit?
  As the Speaker and I stated in our ``Dear Colleague'' letter 
circulated today, we believe that many of the areas of concern 
identified by the auditors can be explained as products of the 
inadequate systems and procedures of the House. I believe that this 
further review will result in additional improvements to the management 
of the operations of the House. This is the reason that 434 Members of 
the House voted to undertake this audit in the first place.

                              {time}  1900

  We must allow the audit to be completed as it was intended. I urge 
all Members to vote in favor of this resolution.
  Mr. Speaker, I yield such time as he may consume to the distinguished 
gentleman from California [Mr. Fazio], distinguished ranking member of 
the Committee on House Oversight.
  Mr. FAZIO of California. Mr. Speaker, as I said earlier today in the 
committee meeting, and I reiterate now, I fully support the effort that 
we are completing the first phase of here today. I was obviously one of 
the many Members who supported it on January 4, and I feel very 
strongly that this first effort independent audit, the audit of the 
finances and the administration of the operations of the House, has 
been conducted in a very effective way. The IG, Mr. John Lainhart, is 
deserving of our thanks and appreciation. He has taken his full 
responsibility and worked ably, with the accounting firm of Price 
Waterhouse, to complete these documents that have been made available 
to all Members and to the public today.
  The gentleman from California [Mr. Thomas] and the Republican 
leadership deserve credit for giving the House the impetus to move 
aggressively to identify ways in which we can improve our business 
operations by adopting modern management policies and practices as is 
applicable elsewhere in the private and the public sector.
  I personally want to commend Mr. Thomas, my colleague and good 
friend, as ever, and the IG for the manner in which this work has been 
conducted. It is open. It is fair. And it is bipartisan. And that, I 
think, is the way in which we need to continue this work as we move on 
to the next segment, which is the purpose of the resolution offered 
here today.
  Let me also say, as an appropriator who has dealt with these matters 
over a number of years, I have long sought many of the objectives that 
are included in the work of the inspector general and of this audit.
  The resolution assures the American people that upon conclusion of 
this audit by the IG, they will have 100 percent public accountability 
for the expenditure of House funds. And to do that, we must have a 
picture of the House business practices which fully, fairly and 
accurately portrays the way in which Members dedicate their resources 
to representing their constituents.
  Although the resolution provides for a reporting deadline not later 
than November 30, I fully expect the inspector general will file his 
report as soon as possible. Let me say, I would hope that it could be 
done by the August recess. I will do everything I can personally do to 
give the IG whatever resources, human and financial, he needs to 
complete this more focused audit and to report his findings to the 
Members of this body and to the public.
  We need to finish this first and foremost and then we need to move on 
to the next audit, which will guide us further as we continue to make 
changes in the operations of this House.
  It is very important to point out, this is, yes, an important 
baseline audit, but really, the first of many that will come. And we 
all must learn to deal with this form of self-criticism, because 
ultimately, it is the only way in which we can make the kind of 
improvements here that we all seek.
  So with that, Mr. Speaker, I urge all Members to unanimously support 
this resolution. It is the proper way to proceed, one that will get the 
information that we need to the public and yet protect the legitimate 
due process that ought to prevail here in the House of Representatives.
  Mr. THOMAS. Mr. Speaker, I yield 1 minute to the gentleman from 
Florida [Mr. Shaw], who is a CPA.
  Mr. SHAW. Mr. Speaker, I thank the gentleman for yielding time to me.
  I would just like to say that the time has long passed for us to do 
what this action is calling us to do. We have a sacred trust that is 
from the people for the taxpayers that they pay into this Government. 
Accountability is, I think, primary, whether you are talking about 
ethics or whether you are talking about what we do with the people's 
money. It is absolutely necessary that all of us be completely 
accountable for those funds that are entrusted to us. We are at last, I 
think, brushing away a dinosaur of the past. And that is a dinosaur 
which did not have accountability here in the House for the funds that 
we are expending.
  I would like to congratulate the leadership on both sides of the 
aisle for the realization that now the time has come for 
accountability, that now the time has come to have an independent audit 
done of the House books.
  I would certainly urge a yes vote, as I am sure one is going to come 
probably without exception, because this is such a commonsense 
resolution.
  Again, I would like to commend the leadership on both sides of the 
aisle to seeing that this day has finally arrived.
  Mr. THOMAS. Mr. Speaker, I yield 1 minute to the gentleman from 
Kansas [Mr. Brownback].
  Mr. BROWNBACK. Mr. Speaker, I thank the gentleman for yielding time 
to me.
  I would just like to say, as a freshman Member of Congress, on the 
opening day of Congress it was my pleasure to be able to carry the bill 
that started this audit, and it passed 430 to 1 in this institution. I 
was delighted at that time, as somebody who ran saying the institution 
needed to open its doors up and let some fresh air in, to see this 
finally happen.
  Getting the audit report out today, I think that is an important step 
to be taking. I think it is important that we take this on forward and 
that we make real changes and real improvements in this institution so 
the American people can feel like it represents them and it is an open 
institution, that they know what happens with their taxpayer dollars.
  So I urge my colleagues to support this motion that is coming forward 
and that we can carry on this process in giving the people's House back 
to the people.
  Mr. GEPHARDT. Mr. Speaker, I yield back the balance of my time.
  Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. THOMAS asked and was given permission to revise and extend his 
remarks.)
  Mr. THOMAS. Mr. Speaker, I think what we have seen here is a 
continuation of the spirit in which we started this particular 
Congress.
  On opening day we did call for, by resolution, an independent audit. 
It was virtually unanimous in this House 

[[Page H 7152]]
that we move forward with that independent audit. Regardless of the 
reasons that may have led us to that conclusion, I think everyone here 
today agrees that it was a positive step. The only regret we all have 
is that, as outlined in the resolution in several whereas clauses, the 
books that the independent auditor and the inspector general had to 
look at where wholly inadequate to coming to some clear and final 
conclusions about financial transactions over the last 15 months.
  This resolution, jointly sponsored by the majority and the minority 
leader, intends to clarify and rectify those areas of the financial 
books that the independent auditors were incapable of clarifying. We 
believe that based upon the representations made to us, the inspector 
general will be able to resolve the questions that are outstanding. We 
believe that the system was at fault. There is no reason at this time 
to try to draw any conclusions at all, given the difficulty of 
professional auditors in determining with some finality, what occurred.
  It would be a service to no one, the American people, Members of this 
institution, or anyone else, to speculate on what might occur. Rather, 
the absolute appropriate approach of a House resolution, asking our 
inspector general to take on what resources are necessary to finalize 
this audit as soon as possible, but no later than November 30, is not 
only the appropriate step but really consciously the only one that we 
can take.
  So it is with great pleasure, on a bipartisan note, that we offer for 
the Members consideration House Resolution 192.
  Mr. Speaker, I yield back the balance of my time, and I move the 
previous question on the resolution.
  The previous question was ordered.
  The SPEAKER pro tempore. The question is on the resolution.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. GEPHARDT. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Evidently a quorum is not present.
  The Sergeant at Arms will notify absent Members.
  The vote was taken by electronic device, and there were--yeas 414, 
nays 0, not voting 20, as follows:
                             [Roll No. 525]

                               YEAS--414

     Abercrombie
     Ackerman
     Allard
     Andrews
     Archer
     Armey
     Bachus
     Baesler
     Baker (CA)
     Baker (LA)
     Baldacci
     Ballenger
     Barcia
     Barr
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Barton
     Bass
     Bateman
     Becerra
     Beilenson
     Bentsen
     Bereuter
     Bevill
     Bilbray
     Bilirakis
     Bishop
     Bliley
     Blute
     Boehlert
     Boehner
     Bonilla
     Bonior
     Bono
     Borski
     Boucher
     Browder
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Brownback
     Bryant (TN)
     Bunn
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Canady
     Cardin
     Castle
     Chabot
     Chambliss
     Chapman
     Chenoweth
     Christensen
     Chrysler
     Clayton
     Clement
     Clinger
     Clyburn
     Coble
     Coburn
     Coleman
     Collins (GA)
     Collins (IL)
     Combest
     Condit
     Conyers
     Cooley
     Costello
     Cox
     Coyne
     Cramer
     Crapo
     Cremeans
     Cubin
     Cunningham
     Danner
     Davis
     de la Garza
     Deal
     DeFazio
     DeLauro
     DeLay
     Dellums
     Deutsch
     Diaz-Balart
     Dickey
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Doolittle
     Dornan
     Doyle
     Dreier
     Duncan
     Dunn
     Durbin
     Edwards
     Ehlers
     Ehrlich
     Emerson
     Engel
     English
     Ensign
     Eshoo
     Evans
     Everett
     Ewing
     Farr
     Fattah
     Fawell
     Fazio
     Fields (LA)
     Fields (TX)
     Filner
     Flake
     Flanagan
     Foglietta
     Foley
     Forbes
     Ford
     Fowler
     Fox
     Frank (MA)
     Franks (CT)
     Franks (NJ)
     Frelinghuysen
     Frisa
     Frost
     Funderburk
     Furse
     Gallegly
     Ganske
     Gejdenson
     Gekas
     Gephardt
     Geren
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goodlatte
     Goodling
     Gordon
     Goss
     Graham
     Green
     Greenwood
     Gunderson
     Gutierrez
     Gutknecht
     Hall (OH)
     Hall (TX)
     Hamilton
     Hancock
     Hansen
     Harman
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hefner
     Heineman
     Herger
     Hilleary
     Hilliard
     Hinchey
     Hobson
     Hoekstra
     Hoke
     Holden
     Horn
     Hostettler
     Houghton
     Hoyer
     Hunter
     Hutchinson
     Inglis
     Istook
     Jackson-Lee
     Jacobs
     Jefferson
     Johnson (CT)
     Johnson (SD)
     Johnson, E. B.
     Johnson, Sam
     Johnston
     Jones
     Kanjorski
     Kaptur
     Kasich
     Kelly
     Kennedy (MA)
     Kennelly
     Kildee
     Kim
     King
     Kingston
     Kleczka
     Klink
     Klug
     Knollenberg
     Kolbe
     LaFalce
     LaHood
     Largent
     Latham
     LaTourette
     Laughlin
     Lazio
     Leach
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Lightfoot
     Lincoln
     Linder
     Lipinski
     Livingston
     LoBiondo
     Lofgren
     Longley
     Lowey
     Lucas
     Luther
     Maloney
     Manton
     Manzullo
     Markey
     Martinez
     Martini
     Mascara
     Matsui
     McCarthy
     McCollum
     McCrery
     McDade
     McDermott
     McHale
     McHugh
     McInnis
     McIntosh
     McKeon
     McKinney
     McNulty
     Meehan
     Meek
     Menendez
     Metcalf
     Meyers
     Mfume
     Mica
     Miller (CA)
     Miller (FL)
     Mineta
     Minge
     Mink
     Molinari
     Mollohan
     Montgomery
     Moorhead
     Moran
     Morella
     Myers
     Myrick
     Nadler
     Neal
     Nethercutt
     Neumann
     Ney
     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Orton
     Owens
     Packard
     Parker
     Pastor
     Paxon
     Payne (NJ)
     Payne (VA)
     Pelosi
     Peterson (FL)
     Peterson (MN)
     Petri
     Pickett
     Pombo
     Pomeroy
     Porter
     Portman
     Poshard
     Pryce
     Quillen
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Reed
     Regula
     Richardson
     Riggs
     Rivers
     Roberts
     Roemer
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Rose
     Roth
     Roukema
     Roybal-Allard
     Royce
     Rush
     Sabo
     Salmon
     Sanders
     Sanford
     Sawyer
     Saxton
     Scarborough
     Schaefer
     Schiff
     Schroeder
     Schumer
     Scott
     Seastrand
     Sensenbrenner
     Serrano
     Shadegg
     Shaw
     Shays
     Shuster
     Sisisky
     Skaggs
     Skeen
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Solomon
     Souder
     Spence
     Spratt
     Stearns
     Stenholm
     Stockman
     Stokes
     Studds
     Stump
     Stupak
     Talent
     Tanner
     Tate
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Tejeda
     Thomas
     Thompson
     Thornberry
     Thornton
     Thurman
     Torkildsen
     Torres
     Torricelli
     Towns
     Traficant
     Tucker
     Upton
     Velazquez
     Vento
     Visclosky
     Vucanovich
     Waldholtz
     Walker
     Walsh
     Wamp
     Ward
     Waters
     Watt (NC)
     Watts (OK)
     Waxman
     Weldon (FL)
     Weldon (PA)
     Weller
     White
     Whitfield
     Wicker
     Williams
     Wilson
     Wise
     Wolf
     Woolsey
     Wyden
     Wynn
     Young (AK)
     Young (FL)
     Zimmer

                             NOT VOTING--20

     Berman
     Brewster
     Bryant (TX)
     Clay
     Collins (MI)
     Crane
     Hastert
     Hyde
     Kennedy (RI)
     Lantos
     Moakley
     Murtha
     Oxley
     Pallone
     Reynolds
     Stark
     Tiahrt
     Volkmer
     Yates
     Zeliff

                              {time}  1930

  So the resolution was agreed to.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  

                          ____________________