[House Report 111-623]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-623

======================================================================



 
              INSPECTOR GENERAL AUTHORITY IMPROVEMENT ACT 
                                OF 2010

                                _______
                                

 September 23, 2010.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

   Mr. Towns, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 5815]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Oversight and Government Reform, to whom was 
referred the bill (H.R. 5815) to amend the Inspector General 
Act of 1978 to provide authority for Inspectors General to 
subpoena the attendance and testimony of witnesses, and for 
other purposes, having considered the same, report favorably 
thereon with amendments and recommend that the bill as amended 
do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     3
Legislative History..............................................     5
Section-by-Section...............................................     5
Explanation of Amendments........................................     7
Committee Consideration..........................................     7
Rollcall Votes...................................................     7
Application of Law to the Legislative Branch.....................     7
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     8
Statement of General Performance Goals and Objectives............     8
Constitutional Authority Statement...............................     8
Federal Advisory Committee Act...................................     8
Unfunded Mandates Statement......................................     8
Earmark Identification...........................................     8
Budget Authority and Congressional Budget Office Cost Estimate...     9
Changes in Existing Law Made by the Bill, as Reported............     9
Additional Views.................................................    21

  The amendments are as follows:
  Strike section 5 and insert the following:

SEC. 5. REPORTS AND RESPONSES TO IDENTIFIED PROBLEMS, ABUSES, AND 
                    DEFICIENCIES.

  (a) Additional Requirements for the Inspector General Report.--
Section 5(b) of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended--
          (1) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (5), (6), and (7), respectively; and
          (2) by inserting after paragraph (1) the following new 
        paragraphs:
          ``(2) a description of any corrective action taken or 
        proposed to be taken with respect to questioned costs, a 
        recommendation that funds be put to better use, or any 
        significant problems, abuses, and deficiencies identified by 
        the Inspector General;
          ``(3) a description of any potential cost savings generated 
        by any corrective action taken pursuant to subsection (e)(1);
          ``(4) any certification required under subsection (e)(2);''.
  (b) Corrective Action.--Section 5 of the Inspector General Act of 
1978 (5 U.S.C. App.) is amended--
          (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
          (2) by inserting after subsection (d) the following new 
        subsection:
  ``(e) Corrective Action by the Head of the Establishment.--
          ``(1) Corrective action.--Except as provided in paragraph 
        (2), the head of the establishment shall take corrective action 
        in response to any questioned costs, a recommendation that 
        funds be put to better use, or any significant problems, 
        abuses, or deficiencies identified by the Inspector General of 
        such establishment.
          ``(2) Certification to congress.--If the head of the 
        establishment determines that no action is necessary or 
        appropriate with respect to any questioned costs, a 
        recommendation that funds be put to better use, or any 
        significant problems, abuses, or deficiencies identified by the 
        Inspector General of such establishment, such head shall submit 
        a certification to Congress that no such action is necessary or 
        appropriate, with a detailed explanation why no such action is 
        necessary or appropriate.''.

  Page 5, beginning on line 14, and all that follows through 
page 6, line 13, by moving the margins of paragraph (2) in the 
quoted matter 2 ems to the left.
  Page 15, line 1, by striking ``31 U.S.C. 501 note)'' and 
inserting ``5 U.S.C. App. 11 note)''.
  Page 16, line 13, by inserting ``note'' after ``5 U.S.C. App. 
8L''.

                          Purpose and Summary

    H.R. 5815, the ``Inspector General Authority Improvement 
Act of 2010,'' was introduced by Oversight and Government 
Reform Committee Chairman Edolphus Towns (D-NY) and Ranking 
Member Darrell Issa (R-CA) on July 22, 2010. The legislation 
would amend the Inspector General Act of 1978 (5 U.S.C. App.) 
and make other changes to existing law to strengthen the 
authority and independence of Inspectors General (IGs).
    Specifically, H.R. 5815 amends the Inspector General Act to 
provide IGs with the ability to compel witness testimony 
through the use of subpoenas, subject to certain restrictions. 
H.R. 5815 further amends the Inspector General Act by requiring 
agencies to take corrective action in response to any concerns 
identified by an IG audit, inspection or investigation, or 
report to Congress why such corrective action is not necessary 
or appropriate. The legislation also exempts IGs from agency 
and White House notification requirements in the Paperwork 
Reduction Act and the Privacy Act. These exemptions will 
promote independence in IG investigations. Finally, H.R. 5815 
makes a number of technical and conforming changes to the 
Inspector General Act to codify several provisions that were 
passed by Congress in the Inspector General Reform Act of 2008 
(P.L. 110-409).

                  Background and Need for Legislation

    Inspectors General (IGs) conduct independent audits, 
investigations, and inspections of federal programs. This work 
promotes cost savings and helps to reduce waste, fraud, and 
abuse in the federal government. In the last Congress, the 
Inspector General Reform Act of 2008, a bipartisan Act to 
strengthen the independence and accountability of IGs, became 
law. The Committee's review of the implementation of this law 
has found that certain restrictions and requirements in federal 
law continue to hamper the ability of IGs to carry out their 
important oversight mission. H.R. 5815 will further strengthen 
the authority of IGs so they can better protect the interests 
of the taxpayers.

              CORRECTIVE ACTION RESPONSES BY AGENCY HEADS

    In its FY 2008 annual report, the Council of the Inspectors 
General on Integrity and Efficiency (CIGIE) noted that IGs 
identified $18.6 billion in potential savings from a range of 
audits, investigations, and evaluations across the government. 
H.R. 5815 will help ensure that agencies are held accountable 
for implementing any needed actions to recover all of these 
potential savings of tax dollars. H.R. 5815 will require the 
heads of agencies to take corrective action to address 
significant deficiencies or problems identified by an IG, or 
report to Congress why corrective action is not necessary or 
appropriate.

                     TESTIMONIAL SUBPOENA AUTHORITY

    H.R. 5815 would also amend the Inspector General Act of 
1978 by providing IGs with the ability to compel by subpoena 
the attendance and testimony of non-federal witnesses. Under 
current law, IGs have the authority to subpoena documents and 
records of non-federal entities, but cannot compel witness 
testimony. Extending the IGs subpoena authority to allow for 
subpoenas of persons in addition to records will enhance the 
ability of IGs to conduct thorough audits and investigations, 
particularly in the area of contractor fraud. Congress has 
already passed legislation to grant this expanded subpoena 
authority to the Department of Defense IG, and several 
proposals have been put forth to extend the authority to other 
IGs or groups of IGs. A uniform and consistent approach is 
needed to assist the IG community in conducting thorough and 
timely investigations.
    Testimonial subpoena authority would assist IGs by allowing 
complete and thorough investigations of government contractors. 
Federal government contracts accounted for approximately $1 
trillion in federal spending in the last two fiscal years. IGs 
have cited numerous instances in which contractors placed 
unreasonable conditions on IG investigators, limited access to 
principal witnesses, or simply refused to cooperate. For 
example, a contractor that had previously been cited for severe 
design and performance deficiencies in connection with a multi-
billion dollar national security acquisition program put up 
such resistance to IG requests for interviews that the IG 
ultimately had to conclude its investigation without statements 
from the contractor. Resistance to legitimate inquiries by an 
IG impedes the timeliness and completeness of audits, 
inspections, and investigations, and hampers IGs' ability to 
fulfill their statutory mission to prevent and detect fraud in 
government programs. In another instance, an investigation of 
misuse of classified information by an employee of a contractor 
could not be pursued because the contractor would not 
cooperate. In addition, in cases of fraud involving multiple 
companies, contractors may be unwilling to provide statements 
without the benefit of a ``friendly subpoena'' from an IG in 
order to protect their legal interests while cooperating with a 
government investigation.
    IGs have cited numerous instances of non-cooperation by 
former federal employees, in cases ranging from political 
misconduct by high-ranking government officials to IG 
investigations of sensitive national security programs to the 
theft of government property. Investigations have been closed 
because IGs were unable to receive information from former 
employees, including former senior government officials, who 
may have witnessed or participated in the alleged misconduct.
    Testimonial subpoena authority would also allow IGs to 
present investigative information to the Department of Justice 
(DOJ) in a more comprehensive and timely manner, aiding DOJ's 
criminal and civil prosecutive decisions. In cases involving 
abuses by contractors and former employees, even with semi-
admissions or incriminating information caught on tape, the 
inability to compel follow-up interviews has resulted in an 
incomplete record and subsequent decisions by DOJ not to 
prosecute. Testimonial subpoena authority will help ensure that 
criminal or civil wrongdoing is not overlooked because of 
stonewalling by former federal employees, grantees, or 
contractors.

               INDEPENDENCE IN USE OF INVESTIGATIVE TOOLS

    H.R. 5815 will further enhance the effectiveness and 
independence of IGs by exempting IGs from certain requirements 
of the Paperwork Reduction Act (PRA) and the Computer Matching 
and Privacy Protection Act of 1988 (Computer Matching Act). The 
PRA requires the Chief Information Officer of an agency and the 
OMB Office of Information and Regulatory Affairs (OIRA) to 
approve any request for collection of information from 10 or 
more ``non-federal entities or persons,'' including a request 
made by an IG. This pre-approval process impedes the 
independence of IGs in pursuing investigations. GAO is already 
exempt from this PRA requirement. Similarly, the Computer 
Matching Act requires a review and approval process by an 
agency and OMB before computer matching can be performed by an 
IG to identify improper or fraudulent federal assistance 
payments. The timely use of computer matching to identify 
persons who improperly received federal assistance improves 
program efficiency, enables the government to focus its 
resources on eligible applicants, and can help prevent improper 
payments from occurring in the first instance. The requirement 
for approval from an agency in order to pursue an investigation 
through computer matching impedes IG independence.
    Collectively, the reforms in H.R. 5815 will enhance IGs' 
ability to gather information in connection with their audit, 
evaluation, and investigation functions, so the IG community is 
better-equipped to carry out its work on behalf of U.S. 
taxpayers.

                          Legislative History

    H.R. 5815, was introduced by Oversight and Government 
Reform Committee Chairman Edolphus Towns (D-NY) and Ranking 
Member Darrell Issa (R-CA) on July 22, 2010. The Oversight and 
Government Reform Committee held a business meeting to consider 
the bill on July 28, 2010. The Committee ordered the bill, as 
amended, to be reported favorably on a voice vote.

                           Section-by-Section


Sec. 1. Short title

    The short title of the bill is the Inspector General 
Authority Improvement Act of 2010.

Sec. 2. Subpoena authority for Inspectors General to require testimony 
        of certain persons

    Section 2 of H.R. 5815 would amend the Inspector General 
Act of 1978 by providing those IGs covered by the Act with the 
authority to require by subpoena the attendance and testimony 
of witnesses. The authority is limited to persons other than 
current federal employees (who may be compelled to testify 
under agency rules and procedures), and to circumstances in 
which issuing a subpoena is necessary in the performance of the 
functions assigned to IGs under the IG Act.
    An IG is required to provide reasonable notice to the 
individual whose testimony is sought. The notice must provide 
both the name of the individual and the place where the 
testimony will be taken.
    A subpoena issued by an IG may be enforced in the United 
States District Court in the district in which the individual 
resides or is employed. Alternatively, a proceeding to enforce 
a subpoena may be brought in the U.S. District Court for the 
District of Columbia if the individual resides within 25 miles 
of the District of Columbia and if the complaint seeking 
enforcement alleges that a significant portion of the matters 
that are the subject of the IG investigation occurred in the 
District of Columbia. In both instances, the Attorney General 
is required to represent the IG in the enforcement proceeding. 
IGs' use of testimonial subpoena authority is limited by a 
procedure that requires the IG to notify the Attorney General 
if the IG has reasonable grounds to believe that the subpoena 
being issued is in connection with a matter involving a 
violation of federal criminal law or the False Claims Act (5 
U.S.C. Sec. 3729). A subpoena may not be issued unless such a 
notification is made at least 15 days before the subpoena is to 
be issued.
    After a notification, the IG may not issue the subpoena if 
the Attorney General informs the IG, within 14 days, that the 
Attorney General objects to the issuance of the subpoena. The 
Attorney General is required to cite the grounds for the 
objection, which include a determination that the subpoena is 
likely to endanger national security, is likely to interfere 
with any Federal or State criminal investigation or 
prosecution, or is likely to interfere with any pending False 
Claims Act investigation or any other civil litigation to which 
the United States is or is likely to be a party. If the IG does 
not agree with the objection, the Attorney General must provide 
an explanation to the IG within 30 days after the initial IG 
notification.

Sec. 3. Investigations, audits, inspections, evaluations, and reviews 
        conducted by inspectors general

    Section 3 of H.R. 5815 amends section 3518(c) of title 44 
of the United States Code by exempting IGs from the statutory 
provisions of title 44 that are commonly referred to as the 
``Paperwork Reduction Act'' (44 U.S.C. Sec. 3501 et seq.). The 
exemption applies to any investigation, audit, inspection, 
evaluation, or other review conducted by any federal office of 
Inspector General, including any IG covered or defined under 
the Inspector General Act, any Special Inspector General 
established by statute, the Council of Inspectors General on 
Integrity and Efficiency, and the Recovery Accountability and 
Transparency Board.

Sec. 4. Enhanced Inspectors General authority for computer matching

    Section 4 of H.R. 5815 amends the Inspector General Act of 
1978 to allow IGs to use a computer matching program to compare 
any federal records with other federal or non-federal records 
while conducting an audit, inspection, or investigation 
authorized under the IG Act. The Computer Matching and Privacy 
Protection Act of 1988 (P.L. 100-503) (CMPPA) revised the 
Privacy Act (5 U.S.C. Sec. 552a) by adding procedural 
requirements that agencies must follow when matching electronic 
databases. Currently, Offices of Inspectors General are 
dependent on the cooperation of their agency in meeting these 
CMPPA requirements. This impedes the independence of IGs in 
conducting investigations. The amendments to the IG Act in 
Section 4 would exempt IGs from certain provisions of the CMPPA 
to allow for greater autonomy in pursuing computer matching as 
an investigative or auditing tool.

Sec. 5. Reports and responses to identified problems, abuses, and 
        deficiencies

    Section 5 of H.R. 5815 amends the Inspector General Act of 
1978 by requiring agency heads to take corrective action in 
response to any questioned costs, recommendations that funds be 
put to better use, or any significant problems, abuses, or 
deficiencies identified by an IG. If the head of any agency 
determines that corrective action is unnecessary, the agency 
head must submit a certification to Congress that no such 
action is necessary or appropriate, and provide a detailed 
explanation for such a determination.
    In addition to requiring that corrective action be taken in 
response to IG recommendations, section 5 of H.R. 5815 also 
strengthens the reporting requirements in the Inspector General 
Act of 1978. The enhanced reporting requirements will require 
the heads of agencies to provide a description of any 
corrective action taken or proposed to be taken to address 
areas of concern identified by an Inspector General. The 
enhanced reporting requirements will also require agency heads 
to provide a description of any potential cost savings 
generated by corrective actions taken in response to IG 
recommendations. Finally, the reporting requirements will 
require agency heads to report on any decision not to implement 
a recommendation concerning potential cost savings or other 
areas of concern identified by an IG.

Sec. 6. Codification of certain provisions of the Inspector General 
        Reform Act of 2008 and other technical amendments.

    Section 6 of H.R. 5815 makes a number of technical and 
conforming changes to the Inspector General Act of 1978. These 
changes codify several provisions from the Inspector General 
Reform Act of 2008 (P.L. 110-409), including those concerning 
level of pay for IGs at Designated Federal Entities (DFE) and 
the process for making allegations of wrongdoing against the 
Special Counsel of the Office of Special Counsel. In addition, 
section 6 makes other technical corrections to ensure that all 
IGs are authorized to fund and participate in CIGIE activities. 
Section 6 makes an additional technical correction to ensure 
that all DFE IGs are required to protect the confidentiality 
and identity of individuals who contact the IG through the IG's 
web site ``hotline.'' A technical change is made to the IG Act 
to provide a more accurate and complete description of the type 
of reports IGs are required to post on their web sites, 
including audit, inspection, and evaluation reports, but not 
criminal investigations. The changes repeal a duplicative 
provision in appropriations law that conflicts with the IG web 
site requirements in the IG Act. Finally, the changes correct 
some typographical errors and incorrect references in the 
Inspector General Reform Act.

                       Explanation of Amendments

    Rep. Cuellar offered an amendment, which was considered and 
adopted by the Committee by a voice vote. The amendment 
strengthens and clarifies the corrective action and reporting 
requirements in section 5 of H.R. 5815. Specifically, the 
amendment added a requirement that agency heads provide an 
estimate of any cost savings generated on account of corrective 
actions taken in response to IG cost savings or other 
recommendations. In addition, the amendment requires agency 
heads to provide a detailed explanation for any determination 
that no corrective action is needed or appropriate in response 
to an IG recommendation and makes other technical changes to 
section 5 of H.R. 5815.

                        Committee Consideration

    On Wednesday, July 28, 2010, the Committee met in open 
session and favorably ordered H.R. 5815, as amended, to be 
reported to the House by a voice vote.

                             Rollcall Votes

    No rollcall votes were taken during the Committee's 
consideration of H.R. 5815.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to terms and conditions of 
employment or access to public services and accommodations. The 
bill does not relate to employment or access to public services 
and accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report, including 
the need enhanced authorities so IGs are better-equipped to 
conduct audits, inspections, investigations, and evaluations.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report, including strengthening the Inspector General 
community by providing new authorities and holding government 
agencies accountable for implementing cost savings and other 
recommendations identified by IGs.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress to enact the law 
proposed by H.R. 5815. Article I, Section 8, Clause 18 of the 
Constitution of the United States grants the Congress the power 
to enact this law.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                      Unfunded Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement on 
whether the provisions of the report include unfunded mandates. 
In compliance with this requirement the Committee has received 
a letter from the Congressional Budget Office included herein.

                         Earmark Identification

    H.R. 5815 does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e), or 9(f) of rule XXI.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 5815. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 5815 from the Director of 
the Congressional Budget Office:

                                                September 10, 2010.
Hon. Edolphus Towns,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5815, the 
Inspector General Authority Improvement Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 5815--Inspector General Authority Improvement Act of 2010

    H.R. 5815 would amend the Inspector General Act of 1978 to 
expand the subpoena authority of inspectors general at some 
agencies, require additional reports, and codify, clarify, and 
make technical changes to various authorities of inspectors 
general.
    Based on information from several agencies, CBO estimates 
that any additional administrative costs or savings from 
implementing H.R. 5815 would not be significant over the 2011-
2015 period. The legislation would affect direct spending by 
agencies not funded through annual appropriations, such as the 
Tennessee Valley Authority, the Federal Deposit Insurance 
Corporation, and the National Credit Union Administration; 
therefore, pay-as-you-go procedures apply. However, CBO 
estimates that any net increase in spending by those agencies 
also would not be significant. Enacting H.R. 5815 would not 
affect revenues.
    H.R. 5815 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

INSPECTOR GENERAL ACT OF 1978

           *       *       *       *       *       *       *



                  APPOINTMENT AND REMOVAL OF OFFICERS

  Sec. 3. (a) There shall be at the head of each Office an 
Inspector General 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 administration, 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 supervision by, any other officer of such 
establishment. Neither the head of the establishment nor the 
officer next in rank below such head shall prevent or prohibit 
the Inspector General from initiating, carrying out, or 
completing any audit or investigation, or from issuing any 
[subpena] subpoena during the course of any audit or 
investigation.

           *       *       *       *       *       *       *

  Sec. 5. (a) * * *
  (b) Semiannual reports of each Inspector General shall be 
furnished to the head of the establishment involved not later 
than 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--
          (1) * * *
          (2) a description of any corrective action taken or 
        proposed to be taken with respect to questioned costs, 
        a recommendation that funds be put to better use, or 
        any significant problems, abuses, and deficiencies 
        identified by the Inspector General;
          (3) a description of any potential cost savings 
        generated by any corrective action taken pursuant to 
        subsection (e)(1);
          (4) any certification required under subsection 
        (e)(2);
          [(2)] (5) statistical tables showing the total number 
        of audit reports, inspection reports, and evaluation 
        reports and the dollar value of disallowed costs, for 
        reports--
                  (A) * * *

           *       *       *       *       *       *       *

          [(3)] (6) statistical tables showing the total number 
        of audit reports, inspection reports, and evaluation 
        reports and the dollar value of recommendations that 
        funds be put to better use by management agreed to in a 
        management decision, for reports--
                  (A) * * *

           *       *       *       *       *       *       *

          [(4)] (7) 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) * * *

           *       *       *       *       *       *       *

  (e) Corrective Action by the Head of the Establishment.--
          (1) Corrective action.--Except as provided in 
        paragraph (2), the head of the establishment shall take 
        corrective action in response to any questioned costs, 
        a recommendation that funds be put to better use, or 
        any significant problems, abuses, or deficiencies 
        identified by the Inspector General of such 
        establishment.
          (2) Certification to congress.--If the head of the 
        establishment determines that no action is necessary or 
        appropriate with respect to any questioned costs, a 
        recommendation that funds be put to better use, or any 
        significant problems, abuses, or deficiencies 
        identified by the Inspector General of such 
        establishment, such head shall submit a certification 
        to Congress that no such action is necessary or 
        appropriate, with a detailed explanation why no such 
        action is necessary or appropriate.
  [(e)] (f)(1) * * *

           *       *       *       *       *       *       *

  [(f)] (g) As used in this section--
          (1) * * *

           *       *       *       *       *       *       *


                  AUTHORITY; ADMINISTRATION PROVISIONS

  Sec. 6. (a)   In addition to the authority otherwise provided 
by this Act, each Inspector General, in carrying out the 
provisions of this Act, is authorized--
          (1) * * *

           *       *       *       *       *       *       *

          (4) to require by subpoena the production of all 
        information, documents, reports, answers, records, 
        accounts, papers, and other data in any medium 
        (including electronically stored [information, as well 
        as any tangible thing)] information), as well as any 
        tangible thing and documentary evidence necessary in 
        the performance of the functions assigned by this Act, 
        which [subpena] subpoena, in the case of contumacy or 
        refusal to obey, shall be enforceable by order of any 
        appropriate United States district court: Provided, 
        That procedures other than [subpenas] subpoenas shall 
        be used by the Inspector General to obtain documents 
        and information from Federal agencies;

           *       *       *       *       *       *       *

          (8) 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 section 5332 of title 5, 
        United States Code; [and]
          (9) 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 with public 
        agencies and with private persons, and to make such 
        payments as may be necessary to carry out the 
        provisions of this Act[.];
          (10) to require by subpoena the attendance and 
        testimony of witnesses necessary in the performance of 
        the functions assigned to the Inspector General by this 
        Act, except as provided for and subject to the 
        provisions in subsection (g); and
          (11) notwithstanding subsections (o), (p), (q), (r), 
        and (u) of section 552a of title 5, United States Code, 
        to compare, through a matching program (as defined in 
        such section), any Federal records with other Federal 
        or non-Federal records while conducting an audit, 
        inspection, or investigation authorized under this Act 
        to identify weaknesses that make a program vulnerable 
        to fraud, waste, or abuse and to detect improper 
        payments and fraud.

           *       *       *       *       *       *       *

  (g)(1) An Inspector General shall use procedures other than 
subpoenas to obtain attendance and testimony from Federal 
employees.
  (2)(A) A subpoena issued under subsection (a)(10) shall 
provide reasonable notice to the individual whose testimony is 
sought and shall state the name of the individual and the place 
of taking the testimony.
  (B) Except as provided in subparagraph (C), a subpoena issued 
under subsection (a)(10), in the case of contumacy or refusal 
to obey, shall be enforceable in the United States District 
Court in the district where the individual whose testimony is 
sought by subpoena resides or in the district of the 
individual's place of employment.
  (C) A proceeding to enforce a subpoena may be brought in the 
United States District Court for the District of Columbia if 
the individual whose testimony is sought by the subpoena 
resides within 25 miles of the District of Columbia and if the 
complaint seeking enforcement alleges that a significant 
portion of the matters that are expected to be the subject of 
the investigation, audit, inspection, evaluation, or review 
occurred in the District of Columbia.
  (D) The Attorney General shall represent an Office of 
Inspector General in the enforcement of a subpoena under this 
subsection.
  (3)(A) An Inspector General may not issue a subpoena under 
subsection (a)(10) if the subpoena is being issued in 
connection with a matter in which the Inspector General has 
reasonable grounds to believe there has been a violation of 
Federal criminal law or section 3729 of title 31, United States 
Code, unless the Inspector General notifies the Attorney 
General of the intention of the Inspector General to issue the 
subpoena, including the name of the individual whose testimony 
is sought and the nature of the testimony sought, at least 15 
days before issuing the subpoena.
  (B) The Inspector General may not issue the subpoena if the 
Attorney General informs the Inspector General, within 14 days 
after receipt of the notification under subparagraph (A), that 
the Attorney General objects to the issuance of the subpoena on 
one or more of the grounds listed in clauses (i) through (iii) 
of subparagraph (C).
  (C) If the Attorney General objects to the issuance of the 
subpoena as described in subparagraph (B) and the Inspector 
General does not agree with the objection of the Attorney 
General, the Attorney General shall, within 30 days after 
receipt of the notification under subparagraph (A), submit an 
explanation to the Inspector General that the taking of the 
testimony--
          (i) is likely to endanger the national security of 
        the United States;
          (ii) is likely to interfere with any Federal or State 
        criminal investigation or prosecution; or
          (iii) is likely to interfere with any pending 
        investigation under section 3729 of title 31, United 
        States Code, or any civil litigation to which the 
        United States is or is likely to be a party.

           *       *       *       *       *       *       *


      SPECIAL PROVISIONS CONCERNING THE DEPARTMENT OF THE TREASURY

  Sec. 8D. (a)(1) Notwithstanding the last two sentences of 
section 3(a), the Inspector General of the Department of the 
Treasury shall be under the authority, direction, and control 
of the Secretary of the Treasury with respect to audits or 
investigations, or the issuance of [subpenas] subpoenas, which 
require access to sensitive information concerning--
          (A) * * *

           *       *       *       *       *       *       *

  (2) With respect to the information described under paragraph 
(1), the Secretary of the Treasury may prohibit the Inspector 
General of the Department of the Treasury from carrying out or 
completing any audit or investigation, or from issuing any 
[subpena] subpoena, after such Inspector General has decided to 
initiate, carry out, or complete such audit or investigation or 
to issue such [subpena] subpoena, if the Secretary determines 
that such prohibition is necessary to prevent the disclosure of 
any information described under paragraph (1) or to prevent 
significant impairment to the national interests of the United 
States.

           *       *       *       *       *       *       *


        SPECIAL PROVISIONS CONCERNING THE DEPARTMENT OF JUSTICE

  Sec. 8E. (a)(1) Notwithstanding the last two sentences of 
section 3(a), the Inspector General shall be under the 
authority, direction, and control of the Attorney General with 
respect to audits or investigations, or the issuance of 
[subpenas] subpoenas, which require access to sensitive 
information concerning--
          (A) * * *

           *       *       *       *       *       *       *

  (2) With respect to the information described under paragraph 
(1), the Attorney General may prohibit the Inspector General 
from carrying out or completing any audit or investigation, or 
from issuing any [subpena] subpoena, after such Inspector 
General has decided to initiate, carry out, or complete such 
audit or investigation or to issue such [subpena] subpoena, if 
the Attorney General determines that such prohibition is 
necessary to prevent the disclosure of any information 
described under paragraph (1) or to prevent the significant 
impairment to the national interests of the United States.

           *       *       *       *       *       *       *


   REQUIREMENTS FOR FEDERAL ENTITIES AND DESIGNATED FEDERAL ENTITIES

  Sec. 8G. (a) * * *

           *       *       *       *       *       *       *

  (d) Each Inspector General shall report to and be under the 
general supervision of the head of the designated Federal 
entity, but 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] subpoena during the course of any audit 
or investigation.

           *       *       *       *       *       *       *

  (g)(1) * * *

           *       *       *       *       *       *       *

  (3) Notwithstanding the last sentence of subsection (d) of 
this section, the provisions of subsection (a) of section [8C] 
8D (other than the provisions of subparagraphs (A), (B), (C), 
and (E) of subsection (a)(1)) shall apply to the Inspector 
General of the Board of Governors of the Federal Reserve System 
and the Chairman of the Board of Governors 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.

           *       *       *       *       *       *       *

  (i) Inspectors General of Designated Federal Entities.--
          (1) In general.--Notwithstanding any other provision 
        of law, the Inspector General of each designated 
        Federal entity shall, for pay and all other purposes, 
        be classified at a grade, level, or rank designation, 
        as the case may be, at or above those of a majority of 
        the senior level executives of that designated Federal 
        entity (such as a General Counsel, Chief Information 
        Officer, Chief Financial Officer, Chief Human Capital 
        Officer, or Chief Acquisition Officer). The pay of an 
        Inspector General of a designated Federal entity shall 
        be not less than the average total compensation 
        (including bonuses) of the senior level executives of 
        that designated Federal entity calculated on an annual 
        basis.
          (2) Limitation on adjustment.--
                  (A) In general.--In the case of an Inspector 
                General of a designated Federal entity whose 
                pay is adjusted under paragraph (1), the total 
                increase in pay in any fiscal year resulting 
                from that adjustment may not exceed 25 percent 
                of the average total compensation (including 
                bonuses) of the Inspector General of that 
                entity for the preceding 3 fiscal years.
                  (B) Sunset of limitation.--The limitation 
                under subparagraph (A) shall not apply to any 
                adjustment made in fiscal year 2013 or each 
                fiscal year thereafter.

           *       *       *       *       *       *       *


SEC. 8L. INFORMATION ON WEBSITES OF OFFICES OF INSPECTORS GENERAL.

  (a) Direct Links to Inspectors General Offices.--
          (1) In general.--Each [agency] Federal agency, 
        establishment, or designated Federal entity shall 
        establish and maintain on the homepage of the website 
        of that [agency] Federal agency, establishment, or 
        designated Federal entity, a direct link to the website 
        of the Office of the Inspector General of that [agency] 
        Federal agency, establishment, or designated Federal 
        entity.

           *       *       *       *       *       *       *

  (b) Requirements for Inspectors General Websites.--
          (1) Posting of reports and audits.--The Inspector 
        General of each [agency] Federal agency, establishment, 
        or designated Federal entity shall--
                  (A) not later than 3 days after any [report 
                or audit (or portion of any report or audit)] 
                audit report, inspection report, or evaluation 
                report (or portion of any such report) is made 
                publicly available, post that [report or audit 
                (or portion of that report or audit)] report 
                (or portion of that report) on the website of 
                the Office of Inspector General; and
                  (B) ensure that any posted [report or audit 
                (or portion of that report or audit)] report 
                (or portion of that report) described under 
                subparagraph (A)--
                          (i) * * *

           *       *       *       *       *       *       *

          (2) Reporting of fraud, waste, and abuse.--
                  (A) In general.--The Inspector General of 
                each [agency] Federal agency, establishment, or 
                designated Federal entity shall establish and 
                maintain a direct link on the homepage of the 
                website of the Office of the Inspector General 
                for individuals to report fraud, waste, and 
                abuse. Individuals reporting fraud, waste, or 
                abuse using the direct link established under 
                this paragraph shall not be required to provide 
                personally identifying information relating to 
                that individual.
                  (B) Anonymity.--The Inspector General of each 
                [agency] Federal agency, establishment, or 
                designated Federal entity shall not disclose 
                the identity of any individual making a report 
                under this paragraph without the consent of the 
                individual unless the Inspector General 
                determines that such a disclosure is 
                unavoidable during the course of the 
                investigation.

SEC. 8M. PAY RETENTION.

  (a) In General.--The provisions of section 3392(c) of title 
5, United States Code, other than the terms ``performance 
awards'' and ``awarding of ranks'' in paragraph (1) of such 
section, shall apply to career appointees of the Senior 
Executive Service who are appointed to the position of 
Inspector General on or after October 14, 2008.
  (b) Nonreduction in Pay.--Notwithstanding any other provision 
of law, career Federal employees serving on an appointment made 
pursuant to statutory authority found other than in section 
3392 of title 5, United States Code, shall not suffer a 
reduction in pay, not including any bonus or performance award, 
as a result of being appointed to the position of Inspector 
General.

           *       *       *       *       *       *       *


SEC. 11. ESTABLISHMENT OF THE COUNCIL OF THE INSPECTORS GENERAL ON 
                    INTEGRITY AND EFFICIENCY.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Functions and Duties of Council.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Additional administrative authorities.--
                  (A) Interagency funding.--Notwithstanding 
                section 1532 of title 31, United States Code, 
                or any other provision of law prohibiting the 
                interagency funding of activities described 
                under subclause (I), (II), or (III) of clause 
                (i), in the performance of the 
                responsibilities, authorities, and duties of 
                the Council--
                          (i) * * *
                          (ii) upon the authorization of the 
                        Executive Chairperson, any [department, 
                        agency, or entity of the executive 
                        branch] Federal agency, establishment, 
                        or designated Federal entity which has 
                        a member on the Council shall fund or 
                        participate in the funding of such 
                        activities.

           *       *       *       *       *       *       *

  (d) Integrity Committee.--
          (1) * * *

           *       *       *       *       *       *       *

          (12) Allegations of wrongdoing against special 
        counsel or deputy special counsel.--
                  (A) Definition.--In this paragraph, the term 
                ``Special Counsel'' refers to the Special 
                Counsel appointed under section 1211(b) of 
                title 5, United States Code.
                  (B) Authority of integrity committee.--
                          (i) In general.--An allegation of 
                        wrongdoing against the Special Counsel 
                        or the Deputy Special Counsel may be 
                        received, reviewed, and referred for 
                        investigation by the Integrity 
                        Committee to the same extent and in the 
                        same manner as in the case of an 
                        allegation against an Inspector General 
                        (or a member of the staff of an Office 
                        of Inspector General), subject to the 
                        requirement that the Special Counsel 
                        recuse himself or herself from the 
                        consideration of any allegation brought 
                        under this subparagraph.
                          (ii) Coordination with existing 
                        provisions of law.--This paragraph does 
                        not eliminate access to the Merit 
                        Systems Protection Board for review 
                        under section 7701 of title 5, United 
                        States Code. To the extent that an 
                        allegation brought under this paragraph 
                        involves section 2302(b)(8) of that 
                        title, a failure to obtain corrective 
                        action within 120 days after the date 
                        on which that allegation is received by 
                        the Integrity Committee shall, for 
                        purposes of section 1221 of such title, 
                        be considered to satisfy section 
                        1214(a)(3)(B) of that title.
                  (C) Regulations.--The Integrity Committee may 
                prescribe any rules or regulations necessary to 
                carry out this paragraph, subject to such 
                consultation or other requirements as might 
                otherwise apply.

           *       *       *       *       *       *       *

                              ----------                              


TITLE 44, UNITED STATES CODE

           *       *       *       *       *       *       *


CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY

           *       *       *       *       *       *       *


Subchapter I--Federal Information Policy

           *       *       *       *       *       *       *


Sec. 3518. Effect on existing laws and regulations

  (a) * * *

           *       *       *       *       *       *       *

  (c)(1) Except as provided in [paragraph (2)] paragraph (3), 
this subchapter shall not apply to the collection of 
information--
          (A) * * *

           *       *       *       *       *       *       *

  (2) Notwithstanding paragraph (3), this subchapter shall not 
apply to the collection of information during the conduct of 
any investigation, audit, inspection, evaluation, or other 
review conducted by--
          (A) any Federal office of Inspector General, 
        including--
                  (i) any office of Inspector General of any 
                establishment, Federal entity, or designated 
                Federal entity as those terms are defined under 
                sections 12(2), 8G(a)(1), and 8G(a)(2) of the 
                Inspector General Act of 1978 (5 U.S.C. App.), 
                respectively; or
                  (ii) any office of Special Inspector General 
                established by statute;
          (B) the Council of the Inspectors General on 
        Integrity and Efficiency established under section 11 
        of the Inspector General Act of 1978 (5 U.S.C. App.); 
        or
          (C) the Recovery Accountability and Transparency 
        Board established under section 1521 of division A of 
        the American Recovery and Reinvestment Act of 2009 
        (Public Law 111-5; 123 Stat. 289).
  [(2)] (3) This subchapter applies to the collection of 
information during the conduct of general investigations (other 
than information collected in an antitrust investigation to the 
extent provided in subparagraph (C) of paragraph (1)) 
undertaken with reference to a category of individuals or 
entities such as a class of licensees or an entire industry.

           *       *       *       *       *       *       *

                              ----------                              


INSPECTOR GENERAL REFORM ACT OF 2008

           *       *       *       *       *       *       *


SEC. 4. PAY OF INSPECTORS GENERAL.

  (a) * * *
  [(b) Inspectors General of Designated Federal Entities.--
          [(1) In general.-- Notwithstanding any other 
        provision of law, the Inspector General of each 
        designated Federal entity (as those terms are defined 
        under section 8G of the Inspector General Act of 1978 
        (5 U.S.C. App.)) shall, for pay and all other purposes, 
        be classified at a grade, level, or rank designation, 
        as the case may be, at or above those of a majority of 
        the senior level executives of that designated Federal 
        entity (such as a General Counsel, Chief Information 
        Officer, Chief Financial Officer, Chief Human Capital 
        Officer, or Chief Acquisition Officer). The pay of an 
        Inspector General of a designated Federal entity (as 
        those terms are defined under section 8G of the 
        Inspector General Act of 1978 (5 U.S.C. App.)) shall be 
        not less than the average total compensation (including 
        bonuses) of the senior level executives of that 
        designated Federal entity calculated on an annual 
        basis.
          [(2) Limitation on adjustment.--
                  [(A) In general.-- In the case of an 
                Inspector General of a designated Federal 
                entity whose pay is adjusted under paragraph 
                (1), the total increase in pay in any fiscal 
                year resulting from that adjustment may not 
                exceed 25 percent of the average total 
                compensation (including bonuses) of the 
                Inspector General of that entity for the 
                preceding 3 fiscal years.
                  [(B) Sunset of limitation.-- The limitation 
                under subparagraph (A) shall not apply to any 
                adjustment made in fiscal year 2013 or each 
                fiscal year thereafter.
  [(c) Savings Provision for Newly Appointed Inspectors 
General.--
          [(1) In general.-- The provisions of section of title 
        5, United States Code, other than the terms 
        ``performance awards'' and ``awarding of ranks'' in 
        subsection (c)(1) of such section, shall apply to 
        career appointees of the Senior Executive Service who 
        are appointed to the position of Inspector General.
          [(2) Nonreduction in pay.-- Notwithstanding any other 
        provision of law, career Federal employees serving on 
        an appointment made pursuant to statutory authority 
        found other than in section of title 5, United States 
        Code, shall not suffer a reduction in pay, not 
        including any bonus or performance award, as a result 
        of being appointed to the position of Inspector 
        General.]

           *       *       *       *       *       *       *


SEC. 7. ESTABLISHMENT OF COUNCIL OF THE INSPECTORS GENERAL ON INTEGRITY 
                    AND EFFICIENCY.

  (a) * * *
  [(b) Allegations of Wrongdoing Against Special Counsel or 
Deputy Special Counsel.--
          [(1) Definitions.-- In this section--
                  [(A) the term ``Integrity Committee'' means 
                the Integrity Committee established under 
                section 11(d) of the Inspector General Act of 
                1978 (5 U.S.C. App), as amended by this Act; 
                and
                  [(B) the term ``Special Counsel'' refers to 
                the Special Counsel appointed under section of 
                title 5, United States Code.
          [(2) Authority of integrity committee.--
                  [(A) In general.-- An allegation of 
                wrongdoing against the Special Counsel or the 
                Deputy Special Counsel may be received, 
                reviewed, and referred for investigation by the 
                Integrity Committee to the same extent and in 
                the same manner as in the case of an allegation 
                against an Inspector General (or a member of 
                the staff of an Office of Inspector General), 
                subject to the requirement that the Special 
                Counsel recuse himself or herself from the 
                consideration of any allegation brought under 
                this paragraph.
                  [(B) Coordination with existing provisions of 
                law.-- This subsection does not eliminate 
                access to the Merit Systems Protection Board 
                for review under section of title 5, United 
                States Code. To the extent that an allegation 
                brought under this subsection involves section 
                2302(b)(8) of that title, a failure to obtain 
                corrective action within 120 days after the 
                date on which that allegation is received by 
                the Integrity Committee shall, for purposes of 
                section 1221 of such title, be considered to 
                satisfy section 1214(a)(3)(B) of that title.
          [(3) Regulations.-- The Integrity Committee may 
        prescribe any rules or regulations necessary to carry 
        out this subsection, subject to such consultation or 
        other requirements as might otherwise apply.]
  (c) Effective Date and Existing Executive Orders.--
          (1) * * *
          (2) Executive orders.--Executive Order No. 12805, 
        dated May 11, 1992, and Executive Order No. [12933] 
        12993, dated March 21, 1996 (as in effect before the 
        date of the enactment of this Act) shall have no force 
        or effect on and after the earlier of--
                  (A) * * *

           *       *       *       *       *       *       *

                              ----------                              


   FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS ACT, 2009

                    (Division D of Public Law 111-8)

 DIVISION D--FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS 
ACT, 2009

           *       *       *       *       *       *       *


                               TITLE VII

GENERAL PROVISIONS--GOVERNMENT-WIDE

           *       *       *       *       *       *       *


  [Sec. 744. (a) Each executive department and agency shall 
establish and maintain on the homepage of its website, an 
obvious, direct link to the website of its respective Inspector 
General.
  [(b) Each Office of Inspector General shall: (1) post on its 
website any public report or audit or portion of any report or 
audit issued within one day of its release; (2) provide a 
service on its website to allow an individual to request 
automatic receipt of information relating to any public report 
or audit or portion of that report or audit and which permits 
electronic transmittal of the information, or notice of the 
availability of the information without further request; and 
(3) establish and maintain a direct link on its website for 
individuals to anonymously report waste, fraud and abuse.]

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

    H.R. 5815, the ``Inspector General Authority Improvement 
Act of 2010,'' was introduced by Chairman Edolphus Towns and 
Ranking Member Darrell Issa on July 22, 2010. The legislation 
amends the Inspector General Act of 1978 (5 U.S.C. App.) to 
enhance the authority of Inspectors General (IGs) to conduct 
meaningful audits, inspections and investigations by allowing 
them to subpoena witnesses to interviews, and by providing them 
with additional tools to conduct their duties. The legislation 
also allows an exemption from two federal laws--the Paperwork 
Reduction Act and the Computer Matching Act. These laws, 
according to the Council of the Inspectors General on Integrity 
and Efficiency (CIGIE), slow down investigations, and other 
critical functions.

                      Impetus for the Legislation

    In March of this year, Ranking Member Issa wrote to 
seventy-four IGs requesting legislative suggestions to improve 
the Inspector General Act (a copy of Mr. Issa's letter and the 
recipient list of IGs is attached). The CIGIE Legislative 
Committee replied to Rep. Issa on April 2, 2010 and recommended 
several changes to the IG Act.

                     Testimonial Subpoena Authority

    Presently, under the IG Act, IGs have the authority to 
subpoena documents and other tangible evidence but cannot 
compel witnesses to appear for interviews or depositions. This 
legislative enhancement will allow IGs to interview witnesses 
who are unwilling to cooperate voluntarily.
    In response to a letter from Ranking Member Issa, the 
Legislative Committee of CIGIE suggested expanded subpoena 
authority. In their letter, CIGIE stated ``This proposed 
expansion of authority would enhance the IG's ability to 
conduct thorough audits and investigations, particularly in 
procurement fraud matters dealing with Government contractors 
or grantees.''\1\ The Department of Defense IG already has 
subpoena authority, and extending this tool to the entire IG 
community will allow a uniform and consistent approach for all 
IGs.\2\
---------------------------------------------------------------------------
    \1\Letter from J. Anthony Ogden, Chair CIGIE Legislative Committee, 
to Rep. Darrell Issa, Ranking Member, Comm. on Oversight and Gov't 
Reform, April 2, 2010, at 2.
    \2\Id.
---------------------------------------------------------------------------
    In 2009, CIGIE surveyed 69 inspectors general to better 
understand how testimonial subpoena authority would improve 
their ability to perform their duties. Ninety-four percent of 
respondents agreed that procurement fraud investigations are 
currently hampered by an inability to compel testimony of non-
federal witnesses.\3\ The Department of Justice National 
Procurement Fraud Task Force also has recommended providing IGs 
with subpoena authority. In a 2008 report, the Task Force 
observed, ``Many fraud matters are brought against companies, 
and being able to compel interviews from employees or customers 
during investigations would be invaluable in investigating and 
prosecuting a case.''\4\
---------------------------------------------------------------------------
    \3\Letter from J. Anthony Ogden, Chair CIGIE Legislative Committee, 
to Sen. Joseph Lieberman, Chairman, Senate Committee on Homeland 
Security and Governmental Affairs, Sept. 18, 2009, at 2.
    \4\Id.
---------------------------------------------------------------------------
    The Committee has found during the course of its 
investigations into matters concerning government contracts--
particularly those relating to the rebuilding of Iraq and 
Afghanistan--that investigations often cannot be sufficiently 
concluded because of the inability to interview key fact 
witnesses. Non-federal witnesses such as employees of 
government contractors and subcontractors are acutely aware of 
the limits inspectors general have. Consequently, witnesses 
refuse to talk to IGs. Likewise, the Committee is aware of 
numerous instances of procurement fraud uncovered by an 
inspector general and referred to the Department of Justice, 
only to languish for want of a complete factual record. The 
Justice Department does not have the desire, the time or the 
resources to reinvestigate all matters referred to it by our 
inspectors general. Currently, without transcripts of witness 
depositions or interviews, the Justice Department must rely on 
notes prepared by IG investigators.
    Extending the testimonial subpoena authority to inspectors 
general will allow them to conduct more rigorous 
investigations, develop a deeper factual record, and better 
perform their duties.

                           Other Enhancements

    The legislation also exempts IGs from the burdensome 
requirements of the Paperwork Reduction Act and the Computer 
Matching Act. According to CIGIE, these acts require IG offices 
to undertake lengthy and burdensome information collection 
processes, making it more difficult for them to execute their 
audit, evaluation, inspection and investigation duties.

                                                      Darrell Issa.


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