Customs Service: Status of the Implementation of Blue Ribbon Panel
Recommendations (Letter Report, 09/03/96, GAO/GGD-96-163).

Pursuant to a congressional request, GAO reviewed the U.S. Customs
Service's implementation of blue ribbon panel recommendations concerning
allegations of corruption and mismanagement by Customs employees.

GAO found that Customs: (1) accepted the findings of the panel and took
steps to rectify the problems identified by the panel; (2) restructured
its Office of Internal Affairs to address issues of political
corruption, mismanagement, and serious noncriminal misconduct; (3)
established a direct line of authority in its Office of Enforcement to
eliminate confusion among the many competing lines of authority noted by
the panel in its recommendations; (4) strengthened its policy on
managerial accountability; (5) created internal inspection programs to
ensure that employees' ethical conduct is in compliance with the panel's
recommendations; and (6) implemented its policy for protecting
whistleblowers, as recommended.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GGD-96-163
     TITLE:  Customs Service: Status of the Implementation of Blue 
             Ribbon Panel Recommendations
      DATE:  09/03/96
   SUBJECT:  Accountability
             Whistleblowers
             Ethical conduct
             Customs administration
             Political corruption
             Inspectors General
             Federal agency reorganization
             Law enforcement personnel
             Investigations by federal agencies
IDENTIFIER:  Customs Service Internal Inspection Program
             
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Cover
================================================================ COVER


Report to the Chairman, Subcommittee on Trade, Committee on Ways and
Means, House of Representatives

September 1996

CUSTOMS SERVICE - STATUS OF THE
IMPLEMENTATION OF BLUE RIBBON
PANEL RECOMMENDATIONS

GAO/GGD-96-163

Customs Blue Ribbon Panel

(264434)


Abbreviations
=============================================================== ABBREV

  CMC - Customs Management Center
  DD - District Director
  DEA - Drug Enforcement Administration
  EPAS - Employee Performance Appraisal System
  EPP - Employee Proficiency Plan
  EPR - Employee Proficiency Review
  FBI - Federal Bureau of Investigation
  FLETC - Federal Law Enforcement Training Center
  HRM - Office of Human Resources Management
  IA - Office of Internal Affairs
  IG - Inspector General
  LER - Labor and Employee Relations
  MID - Management Inspections Division
  NLU - National-Louis University
  OI - Office of Investigations
  OOE - Office of Organizational Effectiveness
  OMI - Office of Management Inspection
  OPE - Office of Planning and Evaluation
  OPR - Office of Professional Responsibility
  OSC - Office of Special Counsel
  SAC - Special Agent in Charge
  SES - Senior Executive Service

Letter
=============================================================== LETTER


B-271358

September 3, 1996

The Honorable Philip M.  Crane
Chairman, Subcommittee on Trade
Committee on Ways and Means
House of Representatives

Dear Mr.  Chairman: 

In 1991, the Commissioner of Customs appointed a "blue ribbon" panel
to look into allegations of corruption and mismanagement by employees
in the U.S.  Customs Service's Southwest Region.  The panel found
fundamental weaknesses in Customs' management systems as well as a
lack of management accountability.  The panel made many
recommendations designed to rectify the problems it identified. 

At your request, we reviewed Customs' implementation of the panel's
recommendations.  This report summarizes the problems that led to the
creation of the panel, presents our categorization of the status of
the recommendations made by the panel, and provides Customs' views on
whether the problems identified by the panel still exist. 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

Due to, among other things, (1) allegations of corruption,
harassment, and retaliation; (2) charges of mismanagement; and (3)
"old-boy"\1 network issues in Customs' Southwest Region,\2 the
Commissioner created the blue ribbon panel.  The panel issued a
report of its 50 findings and 51 recommendations in August 1991.\3
The Commissioner said Customs accepted the findings and
recommendations and put together a comprehensive implementation plan. 

In August 1995 Customs provided us with information on actions it had
taken in relation to each recommendation.  It updated that
information in February 1996.  We supplemented the information
through interviews with Customs officials in offices that were
involved in the actions Customs took.  We determined that at the time
of our review, most of the recommendations were at least partially
implemented. 

The Deputy Commissioner of Customs and the Assistant Commissioners
for the two offices on which the panel focused--the Office of
Investigations (OI)\4 and the Office of Internal Affairs
(IA)--generally believed that the problems identified by the panel
had diminished significantly.  They believed that they had in place
or under development processes that would alert their offices to
systemic problem areas. 


--------------------
\1 According to testimony by the chairman of the panel, the "old boy"
network refers to a system in which an individual, such as a Special
Agent in Charge, selects his friends to be supervisors.  "The problem
with that system is (a) the individuals who are selected are not
necessarily well-suited for the supervisory responsibilities, and (b)
their loyalty is not to the organization itself, but to the person
who put them there, and perhaps even to the locality." (U.S.  Customs
Service's Investigation into Allegations of Wrongdoing within the
Agency:  Hearing before the Subcommittee on Oversight of the
Committee on Ways and Means, House of Representatives, 102nd Cong.,
2nd Sess.  23 (July 31, 1991).)

\2 The Southwest Region covered Arizona, New Mexico, Oklahoma, and
Texas. 

\3 Review of Integrity and Management Issues of the United States
Customs Service, Frank Keating, Chairman, et al., August 1991. 

\4 The Office of Enforcement was renamed the Office of Investigations
in 1995. 


   BACKGROUND
------------------------------------------------------------ Letter :2

Customs' mission is to ensure that all goods and persons entering and
exiting the United States do so in compliance with all United States
laws and regulations.  The mission includes protecting the American
public from the introduction of illegal drugs into society.  In
August 1995, Customs considered the Southwest border the drug
smugglers' area of choice, with hundreds of thousands of pounds of
cocaine and marijuana shipped from Mexico to the United States
yearly, according to intelligence estimates.  According to Customs,
this environment, with narcotics being smuggled through ports of
entry and Customs inspectors seeking to prevent such illegal entries,
is typically dangerous, difficult, and contradictory.  Customs
further stated that "enforcement strategies [were] producing more
determined, violent, smarter, organized, better equipped, and funded
violators because of the very high economic incentives to continue
their actions." In its 1994 reorganization report, Customs recognized
the continuing controversy over achieving the right balance between
enforcing the law and facilitating the flow of conveyances,
merchandise, and people into the country. 

From the mid-1960s until the mid-1990s, Customs' organizational
structure included a headquarters, region and district offices,
Special Agent in Charge (SAC) offices, and ports of entry.  In 1993,
Customs created a team to reorganize the Customs Service.  Some
results of that effort were that Customs moved to a system of
management by process\5 and reorganized its field and headquarters
structures.  In October 1995 Customs reorganized its headquarters,
which included creating an Office of Field Operations responsible for
overseeing the Customs Management Centers (CMCs) and ports.  The
Office of Investigations' responsibilities continued to include
overseeing the Special Agents in Charge (SACs) in the field.  The
October 1995 field organization changes included abolishing the
regions and districts and creating the CMCs to act as a single
management level between the ports and headquarters. 


--------------------
\5 According to Customs' reorganization handbook, process management,
with its horizontal orientation across the agency, will help ensure
that all disciplines within the organization understand and value the
work of their counterparts, and that everyone strives to contribute
to overall agency goals. 


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :3

To gain an understanding of the blue ribbon panel, why it was
created, and Customs' response to its report, we read the panel's
report and transcripts of congressional hearings that dealt with
Customs' Southwest Region problems and the panel.  We also
interviewed three panel members--the former chairman, who was not a
Customs employee; and two others who were Customs employees during
the panel and continue to be Customs employees. 

To determine the status of the implementation of the recommendations,
we reviewed a status report Customs prepared for us in August 1995 on
actions Customs took in response to each recommendation.  In February
1996, Customs updated relevant portions of this report.  We also
reviewed documents that Customs officials provided that were related
to actions taken to implement the recommendations.  To expand on the
information provided in the Customs-prepared report and to determine
if Customs officials knew if the problems identified by the panel
still existed, we interviewed Customs officials from offices that
were at the time of our review responsible for areas covered by the
report, including the Offices of Investigations, Internal Affairs,
and Human Resources Management.  We also interviewed officials in
Customs' Office of Planning and Evaluation and the Treasury
Department's Office of Inspector General (IG).  However, we did not
verify the accuracy of the information provided or validate that
policies and procedures to which Customs officials referred were
being adhered to. 

We did our work at Customs headquarters in Washington, D.C.; at the
San Diego Customs Management Center; and in Oklahoma City, OK.  We
conducted this review between August 1995 and June 1996 in accordance
with generally accepted government auditing standards.  We obtained
written comments from Customs on a draft of this report.  These
comments are discussed at the end of this report and reprinted in
appendix II. 


   CONDITIONS LEADING TO THE
   CREATION OF THE PANEL
------------------------------------------------------------ Letter :4

In Customs' 1992 report on its implementation of the panel
recommendations, it stated that in early 1991 it had come under
intense scrutiny from national media and congressional oversight
committees because of allegations of corruption and mismanagement in
its Southwest Region.  According to testimony by the Commissioner in
1992,\6 she created the panel when she became aware of the scope and
seriousness of the allegations in Texas. 

According to the transcript of hearings held by the Commerce,
Consumer, and Monetary Affairs Subcommittee of the House Committee on
Government Operations in 1992, a December 1992 Customs-prepared
response to that Subcommittee, and a 1991 Treasury IG report on
Customs' Southwest Region,\7 allegations included

  -- mismanagement by the Special Agent in Charge,

  -- harassment of and retaliation against whistleblowers,

  -- conspiracy by management to cover up criminal conduct of
     enforcement managers,

  -- management suppression of a major drug investigation,

  -- existence of an old-boy network,

  -- improper associations or affiliations between Customs law
     enforcement officers and individuals possibly involved with drug
     trafficking and money laundering at the border, and

  -- noncooperation by Customs management with other law enforcement
     organizations. 

Furthermore, according to the December 1992 Customs-prepared response
to the Commerce, Consumer, and Monetary Affairs Subcommittee, the
allegations focused on two Office of Enforcement field locations. 


--------------------
\6 Serious Mismanagement and Misconduct in the Treasury Department,
Customs Service, and Other Federal Agencies and the Adequacy of
Efforts to Hold Agency Officials Accountable:  Hearing before the
Commerce, Consumer, and Monetary Affairs Subcommittee of the
Committee on Government Operations, House of Representatives, 102nd
Cong., 2nd Sess.  476 (March 26, 27, and April 1, 1992). 

\7 U.S.  Customs Service:  Greater Management Attention Needed for
Southwest Region Problems (OIG-91-067, Sept.  16, 1991). 


   PANEL COMPOSITION AND
   OPERATIONS
------------------------------------------------------------ Letter :5

In June 1991 the blue ribbon panel convened.  The Commissioner
created the panel, in part, because of allegations of corruption,
harassment, retaliation, mismanagement, and an old-boy network in
Customs' Southwest Region.  The panel was made up of nine
individuals--five from outside Customs and four from within.\8 It was
chaired by the then General Counsel of the Department of Housing and
Urban Development, who had formerly been, among other things,
Associate Attorney General in the U.S.  Justice Department, Assistant
Secretary of the Treasury for Enforcement, U.S.  Attorney for the
Northern District of Oklahoma, and an FBI agent. 

The panel did its work over an approximately 6-week period, according
to its chairman.  It conducted over 150 interviews and briefings with
Customs employees and non-Customs officials in the Southwest Region
and Washington, D.C.  The panel looked at two offices within
Customs--Enforcement and Internal Affairs.  Those non-Customs
officials interviewed were said to be key federal, state, and local
law enforcement officials.  They included employees of the FBI, the
Marshals Service, the Immigration and Naturalization Service, and the
U.S.  Attorneys Office.  According to the chairman's testimony,\9
much of the panel's information was anecdotal and if the panelists
heard it repeatedly, they considered it a finding. 

The chairman further stated in the testimony that the panel did not
have subpoena power and it was not a grand jury; nor did it view its
work as a law enforcement mission.  The panel examined system
failures.  He said that "[w]hat the report concentrated on was
assuming the integrity of all the allegations and all the swirling
controversy, how could these things happen." The panel's suggestions,
he added, were to tighten down and firm up disciplinary processes and
the management and supervisory structures. 

The panel issued its report in August 1991.  The report had 50
findings and 51 recommendations\10 categorized into 7 areas: 

  -- integrity,

  -- management,

  -- Office of Enforcement,

  -- Office of Internal Affairs,

  -- training,

  -- whistleblowers, and

  -- discipline. 

As stated in the panel's report, the recommendations reflected the
consensus of the panel and proposed approaches to rectify the
conditions that generated the report's findings.  The overall aim of
the recommendations was to safeguard the integrity and strengthen the
management systems of the Customs Service.  While the panel did not
determine if the Southwest region situation was representative of the
rest of Customs, it believed the implications of the findings and
recommendations could be applied to the entire agency.  The chairman
of the panel testified that because the panel uncovered "systemic
management failures in the Southwest, the likelihood of that
occurring elsewhere is certainly not only possible, but probable."


--------------------
\8 According to the Commerce, Consumer, and Monetary Affairs
Subcommittee hearing transcripts, the Commissioner requested
recommendations for representatives for the panel from the
Departments of Justice and the Treasury and the former head of the
General Services Administration. 

\9 U.S.  Customs Service's Investigation into Allegations of
Wrongdoing within the Agency:  Hearing before the Subcommittee on
Oversight of the Committee on Ways and Means, House of
Representatives, 102nd Cong., 2nd Sess.  22, 32 (July 31, 1991). 

\10 One of the "recommendations" in the Office of Enforcement section
consisted of three statements, not recommended actions; therefore, we
could not assess whether Customs had implemented it.  As a result we
assessed 50 actual recommendations, not 51. 


   PANEL FINDINGS AND CUSTOMS'
   RESPONSE
------------------------------------------------------------ Letter :6

As examples of some of the conditions that the panel found, the
following are summaries from the panel's report: 

     "The Blue Ribbon Panel found fundamental weaknesses in the
     Customs Service management systems at all operational
     levels--Headquarters, regional management, SAC office
     management, and regional Internal Affairs management.  The
     apparent breakdown of the management structure in the Southwest
     Region was precipitated by inadequate and/or inattentive
     supervision in specific cases.  Compounding those situations,
     managers were unable and/or unwilling to address serious
     supervisory and management problems.  There was an absence of
     management accountability, and a perception of a collusive
     relationship between management and Internal Affairs.  Customs'
     management systems failed to identify and correct these
     deficiencies."

     "The Blue Ribbon Panel determined that the Office of Internal
     Affairs (IA), at least in the Southwest Region, did not
     recognize the gravity of the circumstances that caused the
     perception of corruption, nor did it promptly initiate or
     complete certain investigations of related allegations. 
     Non-criminal misconduct and mismanagement matters were
     explicitly removed from the IA purview.  As a result, Internal
     Affairs did not provide the necessary safeguard to protect the
     reputation, operations and organizational effectiveness of the
     Customs Service."

     "Office of Enforcement (OE) activities in the Southwest Region
     suffer from a lack of national direction and from confused and
     competing lines of authority that undermine effectiveness. 
     Clearly articulated recruitment, mobility, and career path
     policies do not exist and the influence of various 'old boy'
     networks taints the objectivity of the selection process and
     rating systems."

Some of the actions that the panel recommended in the sections on
management, the Office of Internal Affairs, and the Office of
Enforcement were the following: 

  -- Customs should establish an Office of Organizational
     Effectiveness (OOE) led by an Associate Commissioner who would
     report directly to the Commissioner, at a level above the
     Assistant Commissioners.  The Associate Commissioner's
     recommended responsibilities included supervising the Assistant
     Commissioner for Internal Affairs and reforming Customs pursuant
     to the panel's recommendations. 

  -- The Office of Internal Affairs should be restructured.  Its
     responsibilities should include the comprehensive and aggressive
     internal inspection program recommended by the panel and
     investigation of matters related to mismanagement, criminal
     misconduct, and serious noncriminal misconduct. 

  -- Direct line authority should be established in the Office of
     Enforcement from the Assistant Commissioner for Enforcement
     through the Special Agent in Charge to the agent.  Customs
     should establish a national recruitment policy and mobility
     policy for the Office of Enforcement. 

Customs accepted the panel's findings and recommendations almost
immediately and took several major actions to implement these
recommendations.  In April 1992, the Commissioner testified that "the
Customs Service accepted the findings and recommendations of the
panel and went to work using teams of managers and executives that we
developed, and we have put together a comprehensive implementation
plan that is just as hard hitting as the report was."\11 According to
Customs' 1992 report on its implementation of the recommendations,
the implementation effort was national in scope and focused on the
development or redesign of management systems throughout Customs to
prevent a future reoccurrence.  A Customs December 1992 written
response to the Chairman of the Commerce, Consumer, and Monetary
Affairs Subcommittee stated that Customs had "made implementation of
the Panel's recommendations a top priority and dedicated substantial
resources to the effort."

According to Customs' 1992 report on its implementation of the
recommendations, Customs created a Board of Directors to direct the
implementation process.  This board included the Commissioner, Deputy
Commissioner, senior managers, and the Department of the Treasury IG. 
In the Commissioner's testimony for the April 1992 hearing\12 she
explained that Customs also established internal task forces of
managers and subject matter experts to respond to each
recommendation.  These task forces designed implementation
strategies, action plans, and milestones for implementing the
recommendations.  In October 1991, the action plans were given to
various Assistant Commissioners to continue the implementation
efforts in their areas of responsibility.  The Board of Directors,
among others, monitored these implementation efforts. 

Some of the actions Customs took that were related to the panel's
recommended actions cited above were the following: 

  -- Customs formally established OOE in April 1992 with the
     appointment of its Associate Commissioner.  According to
     testimony by the Commissioner, the position of the head of OOE
     was established at a level above the Assistant and Regional
     Commissioners\13 with commensurate authority and responsibility
     to oversee the reforms and to compel action as necessary.  The
     Associate Commissioner was also given responsibility for
     overseeing the Office of Internal Affairs.  Customs' 1992
     revision to its Organization Handbook stated that OOE was
     "intended to ensure effective transition to an organization
     which incorporates reforms called for by the Blue Ribbon Panel. 
     Therefore, the continued necessity for this organization will be
     reviewed after a three year period and annually thereafter." The
     chairman of the panel testified in July 1991 that the decision
     on whether the Associate Commissioner position should be
     temporary or permanent is the Commissioner's decision.\14

     In December 1992 Customs issued a report describing the progress
     it had made in implementing the panel's recommendations. 
     Customs closed OOE in October 1994.  According to the acting
     Associate Commissioner at that time, OOE was closed as part of
     Customs' reorganization and the reduction of its headquarters
     staff.\15 The Director, Office of Planning and Evaluation,
     stated that when OOE was closed Customs felt it had
     substantially implemented the key provisions made by the panel
     and that those recommendations were institutionalized throughout
     the agency.  The recommendations that remained either required
     additional funding or could be addressed under the reorganized
     agency.  He also stated that Customs' December 1992 report
     analyzed the agency's actions taken regarding the panel's
     recommendations and that Customs used that report in making its
     determination that by October 1994 it had devoted sufficient
     time and effort to virtually bring the recommendations to a
     conclusion and would close OOE. 

  -- Customs restructured the Office of Internal Affairs.  The
     Office's responsibilities included investigating criminal
     misconduct, serious noncriminal misconduct, and certain
     mismanagement matters.  According to Customs' 1992 report on its
     implementation of the panel recommendations, while OOE was in
     place, OOE was to be the recipient of mismanagement allegations. 
     With the abolishment of OOE, according to an IA official, IA is
     to be the recipient of mismanagement allegations and is to
     determine if IA should conduct an investigation or should refer
     the allegation to management.  Additionally, while OOE was in
     existence, OOE was responsible for the internal inspection
     program.  The Office of Internal Affairs became responsible for
     those inspections when OOE closed. 

  -- Direct line authority was established in the Office of
     Enforcement in 1991.  The Office of Investigations instituted a
     national recruitment program and has drafted a mobility program. 


--------------------
\11 Serious Mismanagement and Misconduct in the Treasury Department,
Customs Service, and Other Federal Agencies and the Adequacy of
Efforts to Hold Agency Officials Accountable:  Hearing before the
Commerce, Consumer, and Monetary Affairs Subcommittee of the
Committee on Government Operations, House of Representatives, 102nd
Cong., 2nd Sess.  476 (March 26, 27, and April 1, 1992). 

\12 Serious Mismanagement and Misconduct in the Treasury Department,
Customs Service, and Other Federal Agencies and the Adequacy of
Efforts to Hold Agency Officials Accountable:  Hearing before the
Commerce, Consumer, and Monetary Affairs Subcommittee of the
Committee on Government Operations, House of Representatives, 102nd
Cong., 2nd Sess.  538-539 (March 26, 27, and April 1, 1992)
(statement of Carol B.  Hallett, Commissioner, U.S.  Customs
Service). 

\13 Customs reorganized its field structure in 1995 and no longer has
regional commissioners. 

\14 U.S.  Customs Service's Investigation into Allegations of
Wrongdoing within the Agency:  Hearing before the Subcommittee on
Oversight of the Committee on Ways and Means, House of
Representatives, 102nd Cong., 2nd Sess.  21-22 (July 31, 1991). 

\15 This reduction was achieved, in part, through a Customs-wide
reinvestment program that facilitated the movement of headquarters
employees to vacant field positions. 


   IMPLEMENTATION STATUS
------------------------------------------------------------ Letter :7

To report on the status of the implementation of the recommendations,
we used the following implementation categories:\16

  -- Fully implemented.  The entire wording of the recommendation has
     been fulfilled, except in cases where the panel did not define
     terminology.  In those instances, we did not assess the
     recommendation on the basis of the undefined terms.  If Customs
     had implemented the rest of the recommendation, we categorized
     it as fully implemented. 

  -- Substantially implemented.  Either (1) implementation has
     occurred or action has been taken that, while not responsive to
     the letter of the recommendation, generally was consistent with
     its purpose; or (2) a recommendation was not clearly defined;
     however, Customs took actions that appeared to be responsive to
     the recommendation. 

  -- Partially implemented.  Only a portion of the recommendation has
     been implemented.  When the wording of the recommendation had
     multiple parts, if one part or a portion of a part had been
     implemented (but not all parts), we categorized the
     recommendation as "partially implemented."

  -- Not implemented--action taken.  No part of the recommendation
     has been implemented, but some action has been taken toward the
     completion of the recommendation.  For example, if legislation
     had been introduced to address the recommendation, but it had
     not been enacted into law, we categorized the recommendation as
     "not implemented--action taken."

  -- Not implemented--no action.  No part of the recommendation has
     been completed, and no action has been taken to address the
     recommendation. 

  -- Insufficient information.  Insufficient or conflicting
     information prevented us from determining the status of the
     recommendation. 

We did not evaluate the recommendations or determine whether Customs
could or should have implemented them.  The implementation status may
have varied over time; however, our analysis reflects the status of
implementation for most recommendations as of February 1996 with
updates on others provided through June 1996.  We took a fairly
literal reading of the recommendations to determine into which
implementation category each recommendation fell.  If a subjective or
unclear term was not defined in the recommendation, we did not assess
the recommendation on the basis of that term.  For example, Integrity
recommendation 4 said that "Internal Affairs must aggressively
monitor and act upon perceptions of Federal, State, and local law
enforcement officials ..." The panel did not state what it meant by
"aggressively;" therefore, we did not assess the recommendation on
the basis of whether Internal Affairs' actions were "aggressive."

Several of the recommendations made general references to other
recommendations in the report.  For instance, Integrity
recommendation 1 stated that "Implementing this recommendation
requires that the Customs Service adopt the recommended restructuring
of Internal Affairs discussed elsewhere in this report." In this and
similar instances, we did not attempt to determine which specific
recommendations the panel was referring to.  Therefore, we did not
factor the implementation of those statements into our categorization
of the status of the implementation of the recommendation. 

Each recommendation, the supporting material provided by Customs, and
our interview write-ups were reviewed by GAO evaluators to determine
the implementation status of the recommendations.  At least two
additional GAO staff reviewed each categorization to reach
concurrence on the categorization status. 

Table 1 is a summary of our categorization of the recommendations
broken out by the sections of the panel's report. 



                                      Table 1
                      
                           Implementation Status of Panel
                                  Recommendations

Ca             Substanti                                        Not  Insuffic
te      Fully       ally  Partially              Not   implemented-      ient
go  implement  implement  implement    implemented--              -  informat  Tota
ry         ed         ed         ed     action taken      no action       ion     l
--  ---------  ---------  ---------  ---------------  -------------  --------  ----
In          2          1          2                                               5
 t
 e
 g
 r
 i
 t
 y
Ma          6                     6                                              12
 n
 a
 g
 e
 m
 e
 n
 t
Of          1          1          4                1                              7
 f
 i
 c
 e
 o
 f
 E
 n
 f
 o
 r
 c
 e
 m
 e
 n
 t
Of          5          1          3                                               9
 f
 i
 c
 e
 o
 f
 I
 n
 t
 e
 r
 n
 a
 l
 A
 f
 f
 a
 i
 r
 s
Tr          3          1          1                1              1               7
 a
 i
 n
 i
 n
 g
Wh          3          3                                                          6
 i
 s
 t
 l
 e
 b
 l
 o
 w
 e
 r
 s
Di          4                                                                     4
 s
 c
 i
 p
 l
 i
 n
 e
===================================================================================
To         24          7         16                2              1         0    50
 t
 a
 l
-----------------------------------------------------------------------------------
Note:  Information obtained from February through July 1996. 

Source:  GAO analysis of Customs documents and interviews. 

Appendix I shows by recommendation the actions Customs has taken and
our assessment of the implementation status. 

Various characteristics of the recommendations should be kept in mind
when reading the statistics. 

  -- A number of recommendations were made up of multiple parts. 
     Each part had to be fully implemented for us to categorize the
     recommendation as fully implemented. 

  -- In its report, the panel referred to the recommendations'
     interlocking relationships, and we found that the report does
     not contain 50 discrete recommendations.  Thus, a portion of one
     recommendation can be part of a number of recommendations.  If
     Customs did not fully implement that portion of the
     recommendation, it could affect the implementation category of
     other recommendations.  For example, included in Management
     recommendation 4 is a statement that raters of key managers
     should solicit input from other appropriate parts of the Customs
     organization.  Customs did not implement this portion of the
     recommendation because, according to the Commissioner in her
     April 1992 testimony, officials in Customs' Office of Human
     Resources and a group of managers thought it would diminish
     accountability within the managers' chain of command.  This
     portion of the recommendation was also included in Management
     recommendation 10 and Office of Enforcement recommendation 6;
     because Customs chose not to implement this portion of the
     recommendations, we categorized all three as partially
     implemented. 

  -- Similarly, in some cases, the implementation of one
     recommendation relied upon the implementation of a particular
     facet of another recommendation, at least in part.  For example,
     Management recommendation 2 recommends the establishment of a
     management inspection program in which office inspections are to
     occur at least every 2 years.  Customs has a management
     inspection program, but inspections are scheduled every 3 or 4
     years according to the Director, Management Inspections
     Division.  Thus, when other recommendations state that something
     should be done through the management inspection process (such
     as in Integrity recommendation 4, which states that Internal
     Affairs should monitor and act upon perceptions of law
     enforcement officials through the management inspection
     process), we did not classify the recommendation as fully
     implemented, even if Customs was doing what was recommended,
     because the inspections were not being done as frequently as
     recommended. 


--------------------
\16 GAO used definitions very similar to these when reporting on the
implementation status of the National Performance Review
recommendations (Management Reform:  Implementation of the National
Performance Review's Recommendations (GAO/OCG-95-1, Dec.  5, 1994);
and Management Reform:  Completion Status of Agency Actions Under the
National Performance Review (GAO/GGD-96-94, June 12, 1996)). 


   CUSTOMS OFFICIALS' VIEWS ON THE
   STATE OF THE PROBLEMS
   IDENTIFIED BY THE PANEL
------------------------------------------------------------ Letter :8

We asked Customs officials whether they knew if the general and
specific problems identified by the panel still existed.  The
Assistant Commissioners for Investigations and Internal Affairs said
that they had in place or were developing oversight mechanisms to
alert them to problem areas in their offices. 

An example of an oversight mechanism provided by the Assistant
Commissioner for Investigations was its Office of Policy and
Oversight, which he established in August 1995.  The office reports
directly to him, and one of its functions is to look for trends and
patterns of systemic noncompliance that are identified through such
things as audit reports and cases brought before the Discipline
Review Boards. 

The Assistant Commissioner for Internal Affairs explained some
ongoing efforts in his office that he believed would assist in
identifying potential problem areas.  These included the development
of performance measures for investigations and management inspections
and the development of an automated management inspection information
system that he said should improve Internal Affairs' ability to do
trend analyses of inspection findings. 

The Assistant Commissioner for Investigations said that he believed
that the Office of Investigations-related problems identified by the
panel had diminished significantly.  He said the status of the
problems varied by issue, and he discussed special agent training as
an example.  One of the panel's training recommendations concerned
the need for agents to receive continuing formalized in-service
training.  The Assistant Commissioner believed that training was an
area where further enhancement was still needed, and his office had
embarked on a training effort that had already resulted in a better
trained workforce.  Built into this effort were various policies and
processes that would allow for evaluation, oversight, and
accountability. 

The Assistant Commissioner for Internal Affairs believed that the
problems related to Internal Affairs when the panel did its work no
longer existed.  As an example, he discussed the issue of lengthy
investigations.  One of the panel's findings was that "because of the
failure to conclude investigations, employees who were targets of
allegations of serious misconduct and/or perceived integrity
violations remain under a cloud of suspicion." The Assistant
Commissioner described actions that Internal Affairs took to diminish
this problem and to allow his office to explain the reasons for
lengthy cases when they occurred.  These actions included making
managers take a more hands-on approach in overseeing the
investigations, highlighting cases in the automated tracking system
when they reached certain time frames, and distributing monthly
reports that depicted the ratio of the length of cases by office. 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :9

We requested comments on a draft of this report from the Commissioner
of Customs or his designee.  On July 30, 1996, the Director, Office
of Planning and Evaluation, provided us with written comments, which
are printed in full in appendix II.  The Director expressed
appreciation for a "comprehensive review of where Customs stands"
with respect to the blue ribbon panel recommendations, and offered
technical and clarifying comments and additional information which we
incorporated as appropriate. 


---------------------------------------------------------- Letter :9.1

As agreed with the Subcommittee, unless you publicly announce the
report's contents earlier, we plan no further distribution until 14
days after the date of this letter.  We will then send copies to the
Secretary of the Treasury; the Commissioner of Customs; the Director,
Office of Management and Budget; the ranking minority member of your
Subcommittee; the Chairman and ranking minority member of the Senate
Finance Committee; and other interested parties.  We will also make
copies available to others on request. 

Major contributors to this report are listed in appendix III.  Please
call me on (202) 512-8777 if you or your staff have any questions. 

Sincerely yours,

Norman J.  Rabkin
Director, Administration
 of Justice Issues


IMPLEMENTATION STATUS OF THE BLUE
RIBBON PANEL RECOMMENDATIONS
=========================================================== Appendix I

This appendix contains (1) the 50 Blue Ribbon Panel recommendations
regarding the panel's review of integrity and management issues of
the Customs Service; (2) Customs' written response, which was
provided to us in August 1995 and updated in February 1996, on how it
implemented each recommendation; (3) a further updated response based
on our discussions with Customs officials between February and July
1996; and (4) our categorization of the implementation status of the
50 recommendations using the following categories:  fully
implemented, substantially implemented, partially implemented, not
implemented--action taken, not implemented--no action, and
insufficient information.  These categories are defined on pages 9
and 10 of the letter. 

The recommendations are reproduced verbatim from the panel's report
as were Customs' written responses.  The updated responses were
derived from interviews we held with Customs officials from the
offices of Planning and Evaluation, Investigations, Internal Affairs,
Human Resources Management, and Chief Counsel; Treasury's Office of
Inspector General; and from documentation we obtained.  Our
categorization of the implementation status of the recommendations
was based on our assessment of the extent to which Customs
implemented the panel's recommendations.  We did not verify the
accuracy of the information provided or validate that the policies
and procedures to which Customs' officials referred were being
adhered to. 

The panel did not always define terminology in the recommendations. 
In these instances, we did not assess the panel's recommendation on
the basis of those terms but on the implementation of the rest of the
recommendation.  For example, the panel's Integrity recommendation 1
(p.  20) states in part that "[a]ll allegations of corruption should
be expeditiously investigated by Internal Affairs." The panel did not
define what it meant by "expeditiously." In our categorization of
this recommendation, we did not assess the panel's recommendation for
"expeditiously;" therefore, we did not assess this recommendation on
the basis of actions taken "expeditiously."

Several of the panel's recommendations referred generally to other
recommendations in the panel's report .  For example, in Integrity
recommendation 1 (p.  20), the panel stated that "Implementing this
recommendation requires that the Customs Service adopt the
recommended restructuring of Internal Affairs discussed elsewhere in
this report." In our categorization of the implementation status of
this recommendation, and for all recommendations that had this type
of referral, we did not attempt to determine which specific
recommendations discussed elsewhere in the report the panel was
referring to.  Therefore, we did not base our categorization of the
recommendation on the portion stating that "Implementing this
recommendation requires that the Customs Service adopt the
recommended restructuring of Internal Affairs discussed elsewhere in
this report."



                                                                      Table I.1
                                                       
                                                             Status of Blue Ribbon Panel
                                                                   Recommendations

Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Integrity
-----------------------------------------------------------------------------------------------------------------------------------------------------
Integrity recommendation 1: All allegations of corruption   Written response: Customs has implemented several           Fully implemented.
should be expeditiously investigated by Internal Affairs.   initiatives which have contributed to more timely IA
Implementing this recommendation requires that the Customs  investigations into allegations of corruption. First,       Note 1: We did not assess the
Service adopt the recommended restructuring of Internal     because IA's Management Inspections Division interviews     panel's recommendation for
Affairs discussed elsewhere in this report.                 Customs employees as well as employees in outside agencies  "expeditiously."
                                                            (including U.S. Attorneys) as part of its inspection
                                                            process, allegations or perceptions of corruption can be    Note 2: We did not attempt to
                                                            brought to IA attention quickly. Second, Customs has        determine which specific
                                                            trained groups of senior level agents in the Office of      recommendations discussed
                                                            Investigations (OI) known as flying squads to conduct high  elsewhere in the panel's
                                                            priority investigations at locations throughout the         report the panel was
                                                            country under the direction of IA. Third, IA has developed  referring to regarding the
                                                            new systems and procedures for receiving and processing     implementation of this
                                                            allegations, including an automated case management system  recommendation. Therefore, we
                                                            that has improved the consistency, timeliness and           did not assess the portion of
                                                            professionalism of IA investigations.                       the recommendation stating
                                                                                                                        that "Implementing this
                                                            Updated response: Customs' Special Assistant Commissioner,  recommendation requires that
                                                            Office of Internal Affairs (IA), told us that when          the Customs Service adopt the
                                                            allegations come into IA they are logged into IA's          recommended restructuring of
                                                            automated case management system. From the log, an agent    Internal Affairs discussed
                                                            opens a case for a preliminary investigation. He said all   elsewhere in this report."
                                                            allegations that IA receives are to be logged onto the
                                                            system and assigned a case number. IA has 60 days to
                                                            determine whether the case should proceed from a
                                                            preliminary investigation to a formal one. One way in
                                                            which the length of formal cases is tracked in IA's case
                                                            management system is that cases 60, 90, and 120 days old
                                                            are highlighted--the computer screen flashes when the
                                                            cases reach these intervals. The Special Assistant
                                                            Commissioner, IA, said that the agent revisits the case
                                                            with his/her supervisor on at least these 30-day
                                                            intervals. He said that if a case is close to approaching
                                                            6 months old, IA sends a memorandum to the IA Special
                                                            Agent in Charge (SAC). If the case is over 6 months old,
                                                            and no activity has been conducted on it for the past 2
                                                            weeks, IA supervisors will determine why there has been no
                                                            activity.

                                                            Desk officers can also review the computer screens,
                                                            according to the Special Assistant Commissioner, IA. They
                                                            should know when a case exceeds the 180 days.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Integrity recommendation 2: The Customs Service must        Written response: Evidence of actual corruption is treated  Substantially implemented.
immediately remove, both from their positions and from      as criminal conduct and employees face removal from their
their geographical location, Customs personnel found        positions and the Service. Where perceptions of corruption  Note: We did not assess the
responsible for corruption and/or contributing to the       exist, employees have been transferred due to "loss of      panel's meaning of
perception of corruption.                                   effectiveness." However, it should be noted that Customs    "immediately" removing
                                                            reviews cases involving perceptions of corruption on a      employees.
                                                            case by case basis and determines disciplinary action
                                                            based on the facts surrounding the individual case as well  We determined that Customs'
                                                            as mitigating and aggravating factors.                      implementation of this
                                                                                                                        recommendation was in the
                                                            Updated response: Customs officials further stated that     "substantially implemented"
                                                            the Office of Chief Counsel was very involved in            category because it took
                                                            determining the actions to implement regarding employees    actions that were not
                                                            contributing to the perception of corruption. They also     responsive to the letter of
                                                            mentioned that there are considerations of fairness to the  this recommendation, but the
                                                            individual because these cases were allegations of          actions were generally
                                                            corruption and not actual acts of corruption. Other issues  consistent with this
                                                            involved the employee's right to have the Office of         recommendation's purpose.
                                                            Special Counsel intervene, which they said could prevent    Specifically, Customs does
                                                            automatic removal based on perceptions of corruption.       not necessarily remove both
                                                                                                                        from their positions and from
                                                                                                                        their geographical location
                                                                                                                        personnel found responsible
                                                                                                                        for corruption and/or
                                                                                                                        contributing to the
                                                                                                                        perception of corruption;
                                                                                                                        rather, personnel face
                                                                                                                        removal with determinations
                                                                                                                        made on a case-by-case basis.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Integrity recommendation 3: Customs should feel the same    Written response: In the past many employees who were the   Fully implemented.
obligation to exonerate employees who have been unfairly    subjects of IA investigations were not informed by
accused of wrongdoing as it does to aggressively pursue     management that the investigations had been closed without  Note: We did not assess the
them. The Customs Service must expeditiously and formally   management action. As a result of this recommendation       panel's meaning of
notify appropriate management officials and the targets of  Customs issued Directive 099 1420-010 which designates      "expeditiously."
allegations of corruption of the results of their           responsibility to the Principal Field Headquarters
investigations.                                             Officers (through their Labor and Employee Relations (LER)
                                                            Offices) to respond to reports of investigation, and to
                                                            notify Customs employees who are subjects of completed IA
                                                            investigations that the investigations are closed, and
                                                            that management determined that no further action is
                                                            contemplated. In addition to the above referenced Customs
                                                            Directive, Customs developed a case tracking system which
                                                            enables managers and LER Specialists to track the progress
                                                            of investigations and respond to employees quickly upon
                                                            the investigation's completion.

                                                            Updated response: Customs' Directive on "Reports of
                                                            Investigation Issued by the Office of Internal Affairs"
                                                            dated November 5, 1993, advises managers of the IA and LER
                                                            automated case tracking procedures and their
                                                            responsibility to respond to reports of investigation
                                                            transmitted by IA. The directive included time frames for
                                                            notifying subjects of investigations and management
                                                            officials of the investigation results.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Integrity recommendation 4: Internal Affairs must           Written response: Ongoing. See INTEGRITY, Recommendation 1  Partially implemented.
aggressively monitor and act upon perceptions of Federal,   [Customs' written response to Integrity recommendation 1
State, and local law enforcement officials with respect to  is copied below].                                           Note: We did not assess the
corruption in the Customs Service through the management                                                                panel's recommendation for
inspection process described elsewhere in this report.      Customs has implemented several initiatives which have      "aggressively" monitoring.
_______________________                                     contributed to more timely IA investigations into
                                                            allegations of corruption. First, because IA's Management   We determined that Customs
[The following information was added by GAO for             Inspections Division interviews Customs employees as well   partially implemented this
explanatory purposes: Management recommendation 2 and       as employees in outside agencies (including U.S.            recommendation because the
Internal Affairs recommendation 4 (see pages 32 and 68 of   Attorneys) as part of its inspection process, allegations   panel stated that the
this table) pertain to the panel's recommendation for a     or perceptions of corruption can be brought to IA           recommendation be implemented
management inspection process. The panel's recommendation   attention quickly. Second, Customs has trained groups of    "through the management
stated in part that "routine inspections should be          senior level agents in the Office of Investigation (OI)     inspection process described
conducted every 18 to 24 months of all Customs offices      known as flying squads to conduct high priority             elsewhere in this report."
(e.g. , SAC, District, Region, Headquarters)."]             investigations at locations throughout the country under    The panel recommended that
                                                            the direction of IA. Third, IA has developed new systems    such inspections be conducted
                                                            and procedures for receiving and processing allegations,    at least every 2 years.
                                                            including an automated case management system that has      Customs is scheduled to
                                                            improved the consistency, timeliness and professionalism    conduct these inspections
                                                            of IA investigations.                                       every 3 or 4 years due to
                                                                                                                        lack of resources and IA's
                                                            Updated response: Customs' written response to the panel's  Office of Management
                                                            recommendation for conducting management inspections of     Inspections Director's view
                                                            all offices every 18 to 24 months was "Lack of resources    that conducting comprehensive
                                                            have precluded implementation of comprehensive inspections  inspections for every office
                                                            at least every two years as recommended. However, each SAC  once every 3 or 4 years is
                                                            office receives a comprehensive, spot-check, or special     sufficient.
                                                            assessment every two years."

                                                            IA's Director, Management Inspections Division, said that
                                                            he did not agree with the blue ribbon panel's
                                                            recommendation to conduct comprehensive inspections of all
                                                            offices every 18 to 24 months. He believed that conducting
                                                            such inspections for every office once every 3 or 4 years
                                                            was sufficient. He said that the Management Inspections
                                                            Division is scheduled to conduct comprehensive inspections
                                                            of SAC offices every 3 or 4 years. The Division conducts
                                                            follow-up inspections after comprehensive inspections are
                                                            completed, along with spot checks. The Director of MID
                                                            said that if problems exist at an office, MID conducts a
                                                            comprehensive inspection sooner than scheduled.

                                                            In addition to comprehensive inspections where IA
                                                            investigators contact other law enforcement officials that
                                                            deal with Customs to determine if there are perceptions of
                                                            corruption, the Special Assistant Commissioner of IA said
                                                            that IA has contacts with these officials in other
                                                            manners, such as Customs' participation in joint task
                                                            forces.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Integrity recommendation 5: Blue Ribbon Panel               Written response: Since the issuance of the Blue Ribbon     Partially implemented.
recommendations reforming training, management,             Panel Report, IA intensified efforts to enhance the
supervision, professional conduct guidelines, discipline    integrity of the Service through the development of ethics  We did not attempt to
policies, personnel assignments, rotation policies, and     and integrity training for all Customs employees. During    determine which specific
intelligence support should be adopted to eliminate the     FY 92, over 92% of the Customs work force received this     recommendations the panel was
conditions that contribute to unwarranted perceptions of    training. Some form of this training continues to be given  referring to in this
integrity violations.                                       in every basic training course at the Customs Academy as    recommendation. We based the
                                                            well as in supervisory and managerial training courses. In  categorization on the
                                                            addition, former Commissioner Hallett issued a memorandum   recommendations related to
                                                            dated December 20, 1991, which informed all employees       the actions Customs selected
                                                            about three new categories of misconduct for inclusion in   in the written response to
                                                            the Table of Penalties and Offenses. The new categories     demonstrate its
                                                            address whistleblower retaliation and supervisors and       implementation of the
                                                            managers who fail to report misconduct or to take           recommendation.
                                                            appropriate disciplinary action.
                                                                                                                        We categorized this
                                                            A mobility\a policy incorporating the features set forth    recommendation as "partially
                                                            in the Blue Ribbon Panel Report has been drafted.           implemented" because Customs
                                                            Implementation of the policy has been delayed due to the    fully implemented some of the
                                                            high cost associated with such extensive mobility features  targeted recommendations but
                                                            and funding restrictions within the Customs Service.        did not fully implement 1 of
                                                            However, home town initial assignments are avoided          them. Specifically, Customs
                                                            whenever possible depending on funding and the needs of     identified the 2 panel
                                                            the service.                                                recommendations on discipline
                                                                                                                        regarding sanctions against
                                                            Customs examined the role of OI and IA intelligence. As a   managers and supervisors who
                                                            result, Field Area Intelligence Units were established in   fail to report instances of
                                                            regional cities, under the line authority of the SAC and    misconduct and who fail to
                                                            the functional authority of the Director of Intelligence    take appropriate disciplinary
                                                            to provide for national oversight with continuing           actions. These targeted
                                                            intelligence support to regional organizations.             recommendations refer to
                                                            Additionally, an intelligence function has also been        "discipline policies" stated
                                                            established in IA to analyze allegations, investigations    by the panel for this
                                                            and conduct threat assessments.                             recommendation. Customs fully
                                                                                                                        implemented these
                                                            Updated response: An Office of Investigations official      recommendations. Another
                                                            said that OI is not doing hometown initial assignments      panel recommendation
                                                            except in large metropolitan areas.                         identified by Customs as
                                                                                                                        addressing integrity issues
                                                                                                                        that Customs fully
                                                                                                                        implemented was: "Management
                                                                                                                        recommendation 8: Customs
                                                                                                                        should examine the role of
                                                                                                                        intelligence to assure that
                                                                                                                        the intelligence product
                                                                                                                        effectively serves all of the
                                                                                                                        Customs components." This
                                                                                                                        targeted recommendation
                                                                                                                        refers to "intelligence
                                                                                                                        support" stated by the panel
                                                                                                                        for this recommendation.

                                                                                                                        Customs did not, however,
                                                                                                                        fully implement the panel's
                                                                                                                        Office of Enforcement
                                                                                                                        recommendation 3 that Customs
                                                                                                                        should establish a mobility
                                                                                                                        policy. Customs drafted a
                                                                                                                        mobility policy but did not
                                                                                                                        implement it because Customs
                                                                                                                        decided it would be too
                                                                                                                        costly.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Management
-----------------------------------------------------------------------------------------------------------------------------------------------------
Management recommendation 1: The Commissioner should        Written response: OOE was established and remained in       Fully implemented.
establish an Office of Organizational Effectiveness, led    existence from April 1992 until October 1994. OOE was led
by an Associate Commissioner who reports directly to the    by an Associate Commissioner who supervised IA as well as   We categorized the
Commissioner, at a level above the Assistant                carried out the responsibilities and reforms called for in  recommendation as "fully
Commissioners. The Associate Commissioner would supervise   the Blue Ribbon Panel report. In accordance with the        implemented" because while
the Assistant Commissioner (Internal Affairs) and would be  sunset provisions placed on OOE and pursuant to the         OOE was in existence, Customs
responsible for the current programs within Internal        Customs Service plans to reorganize itself, OOE was         fully implemented the panel's
Affairs as well as the new responsibilities called for in   abolished in 1994 after ensuring that corrective actions    recommended actions. Customs
this report.                                                called for by the Blue Ribbon Panel were firmly ensconced   abolished OOE in 1994 and
                                                            in Customs. The Assistant Commissioner (Internal Affairs)   devolved the responsibilities
-The Associate Commissioner should be charged with          now reports directly to the Commissioner on the same level  of OOE to Assistant
reforming the Customs Service pursuant to the               as other Assistant Commissioners.                           Commissioners, such as the
recommendations of the Blue Ribbon Panel.                                                                               Assistant Commissioner, IA.
                                                            Updated response: An official from Customs' Office of       Although the panel was silent
                                                            Planning and Evaluation stated that during the Office of    on whether OOE and the
                                                            Organizational Effectiveness' (OOE) existence, all 51 of    Associate Commissioner
                                                            the panel's recommendations were addressed and most of      position should have been
                                                            them were implemented. This official also said that OOE     temporary, in testimony
                                                            was created as a transition organization to implement the   during the 1991 congressional
                                                            panel's recommendations and ensure that they were           hearing on Customs' blue
                                                            institutionalized.                                          ribbon panel investigation
                                                                                                                        into allegations of
                                                            The Assistant Commissioner, Office of Human Resources       wrongdoing within the agency,
                                                            Management (HRM), who was the Acting Associate              the panel's Chairman stated
                                                            Commissioner, OOE, at the time OOE closed, said that the    that it was at the discretion
                                                            primary reason for OOE and its Associate Commissioner       of the Commissioner whether
                                                            position being abolished in October 1994 (6 months sooner   OOE was temporary or
                                                            than planned)\b was because of Customs' headquarters        permanent.
                                                            restructuring and reduction of headquarters staff pursuant
                                                            to Customs' reorganization plan. Customs' reorganization
                                                            was part of its September 1994 People, Processes, and
                                                            Partnerships report.

                                                            The Assistant Commissioner, HRM, said that when OOE was
                                                            established, Customs intended for it to remain in
                                                            existence for 3 years. They believed that 3 years was
                                                            sufficient time to institutionalize the panel's
                                                            recommendations that were implemented throughout Customs.
                                                            The Assistant Commissioner, HRM, believed that at the time
                                                            OOE was closed, the implemented panel recommendations had
                                                            been institutionalized throughout Customs. According to
                                                            the Director, Office of Planning and Evaluation, Customs'
                                                            December 1992 report that described the progress Customs
                                                            had made in implementing the panel's recommendations was
                                                            taken into consideration when the decision was made to
                                                            close OOE.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Management recommendation 2: Customs should establish a     Written response: The Office of Management Inspection       Partially implemented.
strong and viable management inspection program to          (OMI) was established under OOE in April 1992 with the
evaluate and monitor all aspects of the organization.       mission of conducting periodic and comprehensive            Note: We did not assess the
Office inspections should be comprehensive, covering both   inspections of Special Agent in Charge (SAC) and District   panel's recommendation for
operations and resource management, and should occur at     offices to evaluate: (1) management systems, practices,     "strong and viable."
least every two years. In addition, the results of          and effectiveness; and (2) compliance with laws, policies,
inspections should be factored into key managers'           and regulations. OMI's primary goal was to ascertain the    We determined that this
performance evaluations. It is recommended that this        health of the organization through "independent"            recommendation was partially
function be placed in the newly established Office of       evaluation of effectiveness, i.e., mission performance,     implemented because Customs
Organizational Effectiveness. (See the Internal Affairs     resource utilization, internal/external relations, and      did establish a management
section for details of the proposed inspection program.)    management controls. Relevant Blue Ribbon Panel issues      inspection program; however,
                                                            such as managerial effectiveness, performance indicators,   it did not conduct
                                                            and supervisory, employee, and outside agencies (including  comprehensive inspections at
                                                            U.S. Attorneys) concerns were incorporated into the         least every 2 years because
                                                            inspection process.                                         Customs decided it would be
                                                                                                                        too costly. Furthermore, OI
                                                            Lack of resources has precluded implementation of           does not factor the results
                                                            comprehensive inspections at least every two years as       of inspections into key
                                                            recommended. However, each SAC office receives a            managers' performance
                                                            comprehensive, spot-check or special assessment every two   evaluations.
                                                            years.

                                                            The abolishment of OOE placed OMI under IA and renamed it
                                                            the Management Inspections Division (MID). MID efforts are
                                                            now heavily concentrated on reviews of OI operations. MID
                                                            operations must be re-evaluated in light of the
                                                            transformation of the field structure from regions to
                                                            CMCs, the implementation of new measurement systems, and
                                                            the introduction of business process improvement
                                                            techniques to analyze our processes.

                                                            Updated Response: An Office of Planning and Evaluation
                                                            (OPE) official said that there is no agency policy
                                                            requiring that inspection results be compared to
                                                            supervisory and managerial performance. An OI official
                                                            said that at least for the time he had been in his
                                                            position (since June 1994), OI had not used the management
                                                            inspection reports when doing the SACs' ratings.

                                                            IA's Director, Management Inspections Division, said that
                                                            Customs is not yet factoring the results of inspections
                                                            into key managers' performance evaluations. He also stated
                                                            that he did not believe that the comprehensive inspections
                                                            needed to be done every 2 years.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Management recommendation 3: Managerial and supervisory     Written response: Several memorandums have been             Partially implemented.
performance should be scrutinized carefully, objectively    distributed to Assistant and Regional Commissioners,
and openly.                                                 District Directors, and mid-level managers which            Note: We did not assess
                                                            communicated the standards for supervisory performance.     "carefully," "objectively,"
-Standards for supervisory performance should be                                                                        and "openly"; or "clearly"
communicated clearly and frequently. Professional conduct   IA's Management Inspection Division reviews performance     and "frequently" as they
and managerial performance guidelines should be             appraisal as a core area during comprehensive management    apply to this
established and communicated, particularly within the       inspections. This process aids in determining if the        recommendation.
Offices of Enforcement and Internal Affairs.                performance management system is working properly.
                                                                                                                        The provision for
-The newly recommended inspection process should include    Managers have been reassigned where it has been determined  communicating standards of
interviews with managers that cover subordinate             that they have lost effectiveness in their positions.       supervisory performance and
supervisors' performance, which should then be compared                                                                 establishing and
with annual performance ratings.                            Updated response: Regarding communicating standards for     communicating guidelines for
                                                            supervisory performance, Customs implemented a new          professional conduct and
-Results of the inspection should also be compared with     agencywide performance management system for supervisors    managerial performance was
supervisory and managerial performance ratings. Managers    and managers effective April 1, 1996. The system is         fully implemented. Also fully
who have failed to address known performance deficiencies   designed to encourage communication. The ratee's            implemented was the portion
in subordinates should receive low ratings in applicable    performance is to be discussed at least three times a       of the recommendation dealing
elements of their performance plan.                         year. Discussion topics are to include (1) accepting and    with identified performance
                                                            conducting "responsibilities in accordance with formally    problems and reassigning
-Identified performance problems should be dealt with       issued Customs values, ethics and integrity guidelines";    managers, if necessary, who
openly. If necessary, managers who have lost effectiveness  and (2) human resource management.                          have lost their
in their particular position (but whose performance may                                                                 effectiveness.
not warrant more severe action) should be reassigned out    The management inspection process does not automatically
of their organization.                                      include a review of supervisors' performance, including     The other two portions of the
                                                            the ratings. If, when doing the preinspection survey work,  recommendation were not fully
                                                            the Office of Internal Affairs identifies a potential       implemented. The review of
                                                            problem with performance appraisals, it will include them   the performance appraisals
                                                            as part of its inspections; otherwise, it does not.         through the management
                                                                                                                        inspection process was
                                                            It is not mandatory that inspection results be compared to  partially implemented because
                                                            supervisory and managerial performance. OI, for example,    it was not done as a routine
                                                            does not review management inspection reports when rating   part of each inspection. The
                                                            its SACs.                                                   results of inspections were
                                                                                                                        also not being used routinely
                                                            The performance management system implemented April 1,      in supervisory and managerial
                                                            1996, "stresses early intervention" so that "minor          performance ratings.
                                                            performance problems can be corrected . . . before they
                                                            turn into more serious problems." If that fails, then the
                                                            supervisor is to develop and issue a written plan for
                                                            improvement and clarify in writing the expectations the
                                                            employee is not meeting. According to an official in OPE,
                                                            while Customs does not have a policy to reassign managers
                                                            out of their organization when they have lost their
                                                            effectiveness, the agency can reassign staff and has done
                                                            it for this reason.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Management recommendation 4: Accountability measures and    Written response: Customs has aggressively pursued          Partially implemented.
specific goals should be the cornerstone of performance     corrective action to improve the performance evaluation
plans and ratings of key managers.                          system for executives and managers through a series of      Note: We did not assess
                                                            actions. Instructions were issued to ensure that            "cornerstone" as it applies
-Regional and Assistant Commissioners should review merit   performance plans for SES and merit pay employees were      to this recommendation.
pay and SES performance plans for 1991/92 to determine if   linked to Customs goals and objectives as presented in the
plans include sufficient elements to cover accountability   Customs Five Year Plan. In addition, managers were          We categorized this
for organizational performance, including management of     instructed to include quantifiable performance criteria     recommendation as partially
all resources and assets, and effective communication with  and milestones in their plans. Annual goals memorandums     implemented because although
subordinate managers.                                       have instructed SES employees that mid and year-end self    the Regional and Assistant
                                                            assessments must address each expected performance          Commissioners were tasked
-Raters of key managers (e.g., Special Agents in Charge,    objective, and must describe achievements. In addition,     with reviewing performance
District Directors) should solicit input from other         Assistant and Regional Commissioners were instructed to     plans as recommended and were
appropriate parts of the Customs organization (e.g., those  review plans for these elements.                            to ensure that the plans were
who are provided operational support or receive services                                                                linked to Customs' goals and
from the manager).                                          As a check to ensure that this accountability mechanism     that they had sufficient
                                                            was implemented, SES plans for the 1991-92, 1992-93 and     accountability measures, the
-The Commissioner should convene a balanced and impartial   1993-94 cycles were reviewed by a Performance Appraisal     other portions of the
board, chaired by the Associate Commissioner for            Review Committee. In addition, former merit pay employees   recommendation were less than
Organizational Effectiveness, to perform post-audit review  were directed to include specific elements that addressed   fully implemented. Customs
of ratings issued on key managers (SACs, DDs) and senior    organizational performance and management of resources and  disagreed with and did not
executives. The board should review and compare ratings     assets.                                                     implement the portion of the
both within the executives' respective hierarchies and                                                                  recommendation for raters to
across organizational and program lines, and report to the  Additionally, a special task force of District Directors    solicit input from managers
Commissioner on its findings.                               and representatives from the Office of Investigations (OI)  in other parts of the
                                                            and IA was convened to revamp and revitalize the merit pay  organization. Also, while
                                                            performance standards for key managerial positions. One of  Customs developed a plan for
                                                            the objectives of the task force was to ensure that the     the post-audit reviews, it
                                                            plans reflected Customs priorities and to provide a clear,  did not implement it.
                                                            consistent and objective framework for evaluation, which
                                                            included quantifiable national standards.

                                                            One recommendation that was not adopted in this area is
                                                            the requirement to solicit input from managers in other
                                                            organizations for performance ratings of key managers.
                                                            After careful review of this suggestion, Customs officials
                                                            felt that such an approach would actually serve to
                                                            diminish accountability within the managers' chain of
                                                            command. The subjectivity of various managers who are not
                                                            ultimately responsible for the performance of the manager
                                                            being rated would undermine efforts for objective and
                                                            quantifiable evaluation against predetermined standards.

                                                            Updated response: According to information provided by
                                                            Customs at an April 1992 congressional hearing, the
                                                            Regional and Assistant Commissioners were instructed to
                                                            review performance plans to see if accountability measures
                                                            were sufficient. The review was to cover organizational
                                                            performance and management of resources.

                                                            According to former OOE officials, although Customs
                                                            officials had discussions about doing post-audit reviews,
                                                            the reviews were never done.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Management recommendation 5: The organizational structure   Written response: A private contractor conducted a          Partially implemented.
of the Office of Enforcement should be realigned to         Service-wide review of the Customs Air Program. The study
provide a clear line of authority.                          recommended that air and marine resources remain within     Note: We followed up on only
                                                            OI, but did not support the Blue Ribbon Panel               the assets specifically
-The Assistant Commissioner (Enforcement) should be in      recommendation that air/marine resources report directly    identified in this
charge of all assets, including air, marine and human       to the SACs. The Air Branch Chiefs and SACs work closely    recommendation, e.g., air,
resources.                                                  together to insure that the overall Customs enforcement     marine, and human resources.
                                                            mission is met.
-When assets fall within the jurisdiction of a SAC office,                                                              We categorized this
they should be under the SAC's control (e.g., boats,        Updated response: The Office of Enforcement's               recommendation as partially
airplanes). The Panel considers this to be a basic tenet    organizational structure was realigned in October 1991      implemented because, although
for effective law enforcement management, and recognizes    establishing direct line authority from the Assistant       the Assistant Commissioner
that it requires a Servicewide review of the Customs Air    Commissioner to the SACs.                                   for Investigations is in
Program field structure.                                                                                                charge of the assets
                                                            According to an official in the OI Office of Policy and     enumerated in the first part
                                                            Oversight, the Assistant Commissioner for Investigations    of the recommendation, the
                                                            is in charge of the air and marine programs and human       SACs do not have control of
                                                            resource assets. The marine assets are under the SACs'      the air assets as recommended
                                                            control; the air resources are not.                         in the last part of the
                                                                                                                        recommendation.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Management recommendation 6: Regional and SAC office        Written response: The organizational structure of OI was    Fully implemented.
structures and reporting systems should be realigned.       realigned in October, 1991, establishing direct line
                                                            authority from the Assistant Commissioner to the SACs.      Note: We did not assess
-SACs should report to the Assistant Commissioner           Regional layers of management and support personnel were    "insure" and "promote" as
(Enforcement), through subordinates if so designated by     phased out over a period of several months. Additional      they apply to this
the Assistant Commissioner.                                 realignment to reduce the supervisor/employee ratios is     recommendation.
                                                            ongoing with a reduction of SAC offices to occur in
-The regional enforcement structure, as now constituted     October 1995.
reporting to the Regional Commissioner, should be
eliminated and substituted with the authority of the        Updated response: In October 1995 the number of SAC
Assistant Commissioner (Enforcement), nationally.           offices was reduced from 27 to 20 to reflect Customs'
                                                            realigned field structure that became effective at that
-The Assistant Commissioner (Enforcement) should review     time. According to the OI Director, Office of Policy and
and redesign regional structures, SAC office designations   Oversight, OI most recently completed a review of its
and boundaries as necessary to insure a streamlined         field office structures in early 1996.
reporting system and to promote efficiency.

Management recommendation 7: The selection process in OE    Written response: The selection process in OI was revised   Fully implemented.
for recruitment, promotion and reassignment should be       by establishing a network of field recruiters. A
revised to establish systems (e.g., career boards) which    centralized control process over the evaluation/selection   Note: We did not assess
insure that personal relationships cannot be used as a      process was established to ensure consistency in hiring     "insure" as it applies to
basis for action or inaction. (See Office of Enforcement    practices. All selection decisions are currently made at    this recommendation. We did
section.)                                                   the Headquarters level. The establishment of a career       not attempt to determine
                                                            board is still under review by OI.                          which specific
                                                                                                                        recommendations the panel was
                                                            Updated response: According to the OI Director of           referring to when it said
                                                            Administration, the hiring process referred to in the       "See Office of Enforcement
                                                            written response involves a process in which panel members  section."
                                                            review applicants' paperwork and make recommendations to
                                                            the Assistant Commissioner for Investigations. According
                                                            to the OI Director, Office of Policy and Oversight,
                                                            promotion decisions to grade 13 are made by the Deputy
                                                            Assistant Commissioner for Investigations. Promotion
                                                            decisions to the GS-14 and GS-15 levels are made by the
                                                            Assistant Commissioner for Investigations. Before OI got
                                                            line authority, promotion decisions to the GS-13 level
                                                            were made in the field. Reassignment decisions into and
                                                            out of SAC offices are made by headquarters, not the SAC.
                                                            SACs also cannot move staff within their approved office
                                                            structure without the Assistant Commissioner's approval.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Management recommendation 8: With the change to line        Written response: OI Field Area Intelligence Units were     Fully Implemented.
authority in the Office of Enforcement, Customs should      established in regional cities, under the line authority
examine the role of intelligence to assure that the         of the SAC and the functional authority of the Director of  Note: We did not assess the
intelligence product effectively serves all of the Customs  Intelligence to provide for national oversight with         panel's recommendation for
components. In addition, Customs should ensure that its     continuing intelligence support to regional                 "assure," "effectively,"
intelligence function is centrally controlled,              organizations.                                              "professionalized," "ensure,"
professionalized, and effectively participates in and                                                                   and "meaningfully" as they
contributes meaningfully to intelligence products and       Updated response: In 1992, Customs stated that following    apply to this
activities at the national level.                           the institution of line authority, the Assistant            recommendation.
                                                            Commissioner for Enforcement convened a multidisciplined
                                                            group of managers to examine the role of intelligence and
                                                            the impact of the new organizational structure. That
                                                            document also stated that several actions were taken to
                                                            provide greater professionalism within the intelligence
                                                            function, including the development of a Basic
                                                            Intelligence Analyst Training Course, an on-the-job
                                                            training handbook for intelligence analysts, and
                                                            performance standards for Intelligence Research
                                                            Specialists.

                                                            Customs officials told us in February 1996 that it hired
                                                            an outside contractor to conduct a study on intelligence.
                                                            According to OI's Director, Office of Policy and
                                                            Oversight, the study's estimated completion date is April
                                                            1997.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Management recommendation 9: [To assist in explaining our   Written response: Criminal and serious misconduct           Partially implemented.
categorization of this recommendation, GAO added the (A) -  allegations against managers are reported to IA and
(F) designations in the recommendation.]                    investigated promptly by IA or the Office of Inspector      Note: We did not assess the
                                                            General (OIG) as appropriate. Allegations involving less    panel's recommendation for
-(A) Allegations against managers should be investigated    serious instances of misconduct are referred to management  actions regarding "resolved
and resolved promptly.                                      for inquiry. As part of the IA investigation, managers are  promptly," "unsatisfactory
                                                            routinely notified of the investigation and disposition in  managers," "removed
-(B) It is recommended that such allegations be reported    accordance with new exoneration procedures [see INTEGRITY,  promptly," or "as quickly as
to and acted upon by the Office of Internal Affairs.        recommendation (3)]. Decisions to detail or remove          possible."
                                                            managers from their positions are made on a case-by-case
-(C) Managers who are the subject of allegations should be  basis depending on the nature of the mismanagement and the  Customs fully implemented
notified immediately and interviewed as a routine part of   supporting evidence.                                        parts of this recommendation;
the investigation.                                                                                                      namely: (1) on the basis of
                                                            Updated response: The panel recommended that IA notify      the nature and substance of
-(D) Based on the nature and substance of allegations,      accused managers of allegations made against them.          the allegations, managers may
managers may be temporarily removed from their position.    However, the Special Assistant Commissioner of IA stated    be temporarily removed from
                                                            that subjects of investigations are not always notified     their positions; (2) once the
-(E) Once the investigation is completed, the manager       that they are being investigated. Our review of the IA      investigation is completed,
should be notified promptly of the results and the          Special Agent Handbook noted that for criminal              the manager should be
proposed action.                                            investigations, upon the advice of the Assistant U.S.       notified promptly of the
                                                            Attorney, IA interviews the accused. If the Assistant U.S.  results and the proposed
-(F) Unsatisfactory managers should be removed promptly     Attorney advises against such notification, IA does not     action; and (3)
from their position and locality. Permanent replacements    interview the manager.                                      unsatisfactory managers
should be assigned as quickly as possible.                                                                              should be removed promptly
                                                            A Customs directive dated November 5, 1993, included time   from their positions and
                                                            frames for notification of investigation results. IA        locality. Permanent
                                                            officials also told us that the Disciplinary Review Board   replacements should be
                                                            was recently established to address disciplinary actions.   assigned as quickly as
                                                                                                                        possible. (See sections (D),
                                                            On June 24, 1996, Customs provided an additional written    (E), and (F) of the
                                                            response regarding its implementation of this               recommendation.)
                                                            recommendation. Customs stated that it has an active
                                                            disciplinary program, but removal of a manager because of   However, other parts of this
                                                            inadequate performance requires a number of                 multifaceted recommendation
                                                            considerations. The process of removal or reassignment      were not fully implemented;
                                                            itself is a drawn-out procedure and the impact on the       namely: (1) Allegations of
                                                            operations must be carefully weighed. The manager must      less serious instances of
                                                            also be given an opportunity to improve his performance,    misconduct are referred to
                                                            alternative actions must be considered, and a new place in  management, not IA, for
                                                            the organization identified. This holds true whether the    inquiry. (See sections (A)
                                                            manager is just reassigned or outrightly removed from       and (B) of the
                                                            Customs. As a result, final action requires a lot of        recommendation.) (2) Subjects
                                                            serious deliberation.                                       of investigations are not
                                                                                                                        always notified that they are
                                                                                                                        being investigated. IA will
                                                                                                                        not notify and interview the
                                                                                                                        manager about a criminal
                                                                                                                        investigation against him if
                                                                                                                        the Assistant U.S. Attorney
                                                                                                                        (AUSA) advises IA not to do
                                                                                                                        it. (See section (C) of the
                                                                                                                        recommendation.)
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Management recommendation 10: With the change to line       Written response: A task force consisting of DDs, SACs and  Partially implemented.
authority in OE, the Commissioner and senior Customs        personnel specialists was convened to analyze pay
management should take steps to avoid perceptions of        disparities between the DDs and SACs. The task force        Customs fully implemented the
separateness and "elitism" between OE and other parts of    ranked each district and SAC office using criteria such as  first two specific portions
the Customs organization.                                   staffing levels, operating sites, trade complexity and      of the recommendation. It
                                                            enforcement activity. As a result of the comprehensive      examined grade and pay
-Customs should examine grade and pay parity between SACs   analysis, the task force noted there were large,            disparities between SACs and
and DDs (taking into account the impact of recent pay       noticeable disparities in pay between DDs and SACs from     DDs,\c and, through the
reform legislation).                                        comparably ranked offices. Customs requested Treasury       reorganization, has adopted
                                                            upgrade a number of DD positions to SES. The impact of      processes that work to bring
-Each co-located SAC and DD should plan activities and      Customs reorganization to CMCs on this issue is unclear at  together OI and other parts
programs to insure that employees in both organizations     this time.                                                  of Customs. Customs did not
understand their counterparts' jobs and priorities.                                                                     implement the last portion of
                                                            OI managers have been directed to work with other Customs   the recommendation, which was
-Assistant Commissioners, OE Headquarters Division          personnel in a coordinated team effort. Additionally, the   to have Assistant
Directors, and the respective Regional Commissioners        Customs reorganization, through the introduction of         Commissioners, Headquarters
should participate in the evaluation of SACs.               process management and strategic problem-solving concepts,  Division Directors, and the
                                                            will encourage even greater integration of the              respective Regional
                                                            disciplines.                                                Commissioners participate in
                                                                                                                        SAC evaluations.
                                                            Customs did not accept the recommendation to have
                                                            Assistant Commissioners, Headquarters Division Directors,
                                                            and the respective Regional Commissioners participate in
                                                            the Evaluations of SACs.

                                                            Updated response: According to OI representatives,
                                                            Customs' reorganization has raised the consciousness about
                                                            working together. Various aspects of the reorganization,
                                                            including process management and the strategic problem-
                                                            solving process, provide opportunities to encourage
                                                            greater integration between OI and other parts of
                                                            Customs.

                                                            Additionally, Customs' 1994 reorganization report states
                                                            that one of Customs desired states is for there to be "a
                                                            better understanding by all disciplines and employees of
                                                            the goals of the organization, and the role that each
                                                            discipline and organizational element plays in the
                                                            achievement of those goals."
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Management recommendation 11: Customs should ensure that    Written response: The "Excellence" program that existed     Fully implemented.
any future implementation of the management philosophy      during the Blue Ribbon Panel review has been replaced by a
promoted by the "Excellence" program\d avoids               nation-wide and government-wide move towards a              Note: We did not assess the
counterproductive side effects that undermine overall       "Partnership" between employees and management.             panel's recommendation for
Customs organizational effectiveness.                                                                                   "ensure" and
                                                            Updated response: Customs officials said that Customs now   "counterproductive side
                                                            has its "partnership program," which went far beyond the    effects that undermine
                                                            "excellence program."                                       overall Customs
                                                                                                                        organizational
                                                            Customs' reorganization and, in particular, its             effectiveness."
                                                            "partnership" tenets include encouraging teamwork and
                                                            involving all of Customs.                                   Because the panel did not
                                                                                                                        define much of this
                                                                                                                        recommendation, we made our
                                                                                                                        categorization assessment
                                                                                                                        using the panel's finding
                                                                                                                        that identified the problems
                                                                                                                        the recommendation was to
                                                                                                                        address.

Management recommendation 12: If the Commissioner           Written response: During its existence, OOE managed the     Fully implemented.
determines that there is a continuing need for a special    Commissioner's "cards and letters" program. Additionally,
and independent "cards and letters" program, these          other existing systems for addressing employee concerns     Note: We did not assess the
communications should be referred to the newly established  were widely advertised and promoted. Since the abolishment  panel's definition of
Associate Commissioner for Organizational Effectiveness.    of OOE, communication of this nature has been referred to   "widely" advertised.
The Associate Commissioner, who is not part of the agency   management, IA or OIG as appropriate for inquiry or
appellate process, can administer the program on behalf of  investigation.
the Commissioner. Moreover, the availability and utility
of existing systems for addressing concerns, complaints,    Updated response: Customs officials told us that employees
and problems should be widely advertised throughout the     know who to contact now that the cards and letters program
Customs Service and promoted as the proper guarantor of     is nonexistent. If they send concerns, complaints, or
Service integrity.                                          problems to the Commissioner's office, his staff will look
                                                            into them or assign them to another office to review.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Office of Enforcement
-----------------------------------------------------------------------------------------------------------------------------------------------------
Office of Enforcement recommendation 1: The organizational  Written response: See Management, Action (6) [Customs'      Fully implemented.
structure of the Customs Service should be realigned to     written response to Management recommendation 6 is copied
provide a clear line of authority throughout the Office of  below].                                                     Note: We did not attempt to
Enforcement, beginning from the Assistant Commissioner                                                                  determine which specific
through the Special Agent in Charge, to the Agent.          The organizational structure of OI was realigned in         recommendations the panel was
Implementation of this reorganization is discussed in the   October, 1991, establishing direct line authority from the  referring to in the second
following recommendations and in the Management section of  Assistant Commissioner to the SACs. Regional layers of      part of the recommendation.
this report.                                                management and support personnel were phased out over a
                                                            period of several months. Additional realignment to reduce
                                                            the supervisor/employee ratios is ongoing with a reduction
                                                            of SAC offices to occur in October 1995.

                                                            Updated response: The reduction of SAC offices that was to
                                                            occur in 1995, mentioned above, occurred as scheduled. SAC
                                                            offices were reduced from 27 to 20.

Office of Enforcement recommendation 2: Customs should      Written response: See MANAGEMENT, Action (7) [Customs'      Partially implemented.
establish a professional, national recruitment policy       written response to Management recommendation 7 is copied
which provides for professional development, agent          below].                                                     Note: We did not attempt to
mobility and loyalty to the institution. Specifically,                                                                  determine if the policy was
Customs should avoid home town initial assignments.         The selection process in OI was revised by establishing a   "professional" or provided
                                                            network of field recruiters. A centralized control process  for "loyalty to the
                                                            over the evaluation/selection process was established to    institution."
                                                            ensure consistency in hiring practices. All selection
                                                            decisions are currently made at the Headquarters level.     We categorized this
                                                            The establishment of a career board is still under review   recommendation as partially
                                                            by OI.                                                      implemented because OI
                                                                                                                        established a national
                                                            Additionally, home town initial assignments are avoided     recruitment program and
                                                            whenever possible depending on funding and the needs of     avoided home town initial
                                                            the service.                                                assignments, only making an
                                                                                                                        exception in a large
                                                            Updated response: According to an OI official, some other   metropolitan area. OI had
                                                            aspects of the recruitment process include formalized       taken action on but had not
                                                            training for the field recruiters and use of a              implemented the professional
                                                            standardized interview procedure.                           development and agent
                                                                                                                        mobility programs.
                                                            In addition to the recruitment process described above
                                                            there is a draft Office of Investigations and Internal
                                                            Affairs Career Development, Mobility, and Hardship Policy
                                                            Handbook. The Handbook was about to be revised when we
                                                            were doing our work, to reflect, among other things,
                                                            Customs-wide and OI-specific reorganizations. The handbook
                                                            outlines policies and procedures for a special agent
                                                            career development program and a mobility program.
                                                            According to the Assistant Commissioner for
                                                            Investigations, OI has tested out the mobility/
                                                            reassignment program but had not formally implemented it
                                                            as of April 1996.

                                                            According to OI's Director of Administration, no written
                                                            policy prohibiting hometown assignments exists. As a
                                                            direct result of the panel's report, however, OI would
                                                            make a home town assignment only if it were to a large
                                                            metropolitan area.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Office of Enforcement recommendation 3: Customs should      Written response: A mobility policy incorporating the       Partially implemented.
establish a mobility policy and career path that include    features set forth in the Blue Ribbon Panel Report has
the following features:                                     been drafted. Implementation of the policy has been         The portion of the
                                                            delayed due to the high cost associated with such           recommendation to assign a
-A newly hired agent should be required to sign a mobility  extensive mobility features and funding restrictions        mentor to new special agents
agreement.                                                  within the Customs Service.                                 was fully implemented. All
                                                                                                                        other portions of this
-A three year assignment to the first post of duty should   A mentor program has been established whereby senior        recommendation have not been
be required. The Service should make efforts to expose      agents serve as mentors for all new agents and ensure       implemented, although several
newly hired agents to all major investigative areas         appropriate training is received.                           were under review or testing
(fraud, strategic, smuggling and financial) by placing                                                                  when we completed our work.
them in medium or large offices.                            Updated response: According to the OI Director, Office of
                                                            Policy and Oversight, agents do not have to sign a
-In the first year, a newly hired agent should be assigned  mobility agreement. However, OI officials told us that the
to a senior agent mentor.                                   special agent vacancy announcements and position
                                                            descriptions state that the agents are subject to
-After three years, an agent should be placed in a central  relocation.
pool of agents eligible for transfer, and such transfer
should be determined by the needs of the Service.           There is no requirement for the first post of duty
                                                            assignment to be for 3 years nor are new agents placed
-Subject to financial and program restraints, an agent      only in medium or large offices. According to OI's
should be transferred in his/her fourth year.               Director of Administration, the two structured ways in
                                                            which new agents are exposed to the major investigative
-Journeyman agents should be given the opportunity to       areas are basic training and the mentor/on-the-job
elect the "management career track." Those who have opted   training program.
for the management career track will be required to act as
relief supervisors, and serve a tour in Headquarters OE     The On-the-Job Training Handbook states that a senior
and a separate tour in the Headquarters Office of Internal  agent mentor is to be assigned to each new agent.
Affairs. Their progress will be continually reviewed by a
central career board. Future OE managers must complete the  According to OI's Director of Administration, agents are
management career track.                                    not moved after 3 years in their first post of duty. The
                                                            mobility policy OI tested was based on office performance.
                                                            The policy involved identifying, through OI's performance
                                                            measurement system, offices that should gain or lose
                                                            staff, then soliciting volunteers to move to the gaining
                                                            office, giving priority consideration to staff from
                                                            offices identified to lose agents. OI's draft mobility
                                                            policy states that OI would fill vacancies through new
                                                            hires, voluntary reassignments, and involuntary
                                                            reassignments that would be used in the absence of
                                                            qualified volunteers. According to OI's Director of
                                                            Administration, the office examined the costs of various
                                                            mobility policies. It found that the office did not have
                                                            the money to fund moves on a routine basis.

                                                            According to OI's Director of Administration, OI does not
                                                            have a "management career track." However, OI has
                                                            proposed, in its draft handbook, a career development
                                                            program. The draft program does not mandate a particular
                                                            path. Among other things, it recognizes completion of
                                                            specified career-enhancing assignments, including
                                                            assignments to headquarters OI and Internal Affairs. The
                                                            draft program entails the use of a Career Review Board in
                                                            the agent promotion process.

-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Office of Enforcement recommendation 4: The selection       Written response: Most employees hired as special agents    Not implemented--action
process and reassignment policy should incorporate the      are reassigned to locations other than where they grew up   taken.
Panel's recommendations for the new agent hiring policy,    or had extended work experience, although lack of funding
the mobility requirement, and a career path for managers.   precludes transferring all new hires to new work            Note: Although OI instituted
We also recommend developing a "career board" concept for   locations. A career path for managers is in development,    a recruiting and hiring
selections of GM-14's, based on SAC recommendations, the    however, mobility and training are seen as key elements in  process, we were unable to
board and the Assistant Commissioner (Enforcement).         that design. An aggressive training program has been        determine the extent to which
                                                            designed with the assistance of National Louis University   OI implemented a "new agent
Although the Executive Resources Board evaluates            (NLU). In June 1995, 22 of OI key managers graduated with   hiring policy" because the
candidates for GM-15 positions, the Office of Enforcement   Masters Degrees in Science and Management from NLU.         report did not define what
should have the career board review the pool of applicants                                                              such a policy would consist
for SAC positions, including the career development needs   Mobility remains a problem within OI. In the past, Customs  of.
of current GM-15's, as well as promotion applicants, based  budget could not absorb the cost of the number of moves
on improved rating systems (described below), office        required for a well developed career path program. With     The remainder of the
inspections, prior enforcement experience and the           the recent funding cuts, it is even less likely that we     recommendation was not
management career path.                                     will be able to implement a true career path for            implemented. OI, however, had
                                                            managers.                                                   either taken actions that
[Note: The recommendation refers to GM-14s and 15s.                                                                     responded to the
References Customs officials made in response to this       OI is not currently utilizing a "career board" for          recommendation or decided not
recommendation were to GS-14s and 15s.]                     selection of GS-14 and GS-15 employees due to the           to implement that part of the
                                                            extensive reduction of promotions to those levels.          recommendation. OI took
                                                                                                                        action by developing draft
                                                            Updated response: According to an OI official, OI           mobility and career
                                                            instituted a recruiting and hiring process that involved,   development programs. The
                                                            among other things, field recruiters undergoing a           career development program
                                                            formalized training course to recruit and interview         included a career board
                                                            prospective special agents and standardized interviews of   concept for selection of GS-
                                                            potential hires in the field. Selections were made by a     14s. OI decided not to
                                                            headquarters selecting official.                            develop a career board
                                                                                                                        concept for the SAC
                                                            OI has drafted a mobility policy, as described under the    positions.
                                                            Office of Enforcement recommendation 3 updated response.
                                                            OI examined the cost of various rotation policies and
                                                            determined it did not have the funding available for one
                                                            with the features recommended by the panel, according to
                                                            the OI Director of Administration.

                                                            OI has drafted a Career Development Program, as described
                                                            under the Office of Enforcement recommendation 3 updated
                                                            response. It incorporates some of the ideas in the panel's
                                                            recommendations for a management career track. The draft
                                                            program incorporates the use of a career review board that
                                                            would make promotion recommendations to the Assistant
                                                            Commissioners OI/IA for GS-13 and GS-14 positions.

                                                            According to the OI Director, Office of Policy and
                                                            Oversight, OI is not
                                                            using and does not plan on using a career board concept
                                                            for SAC positions. According to the draft Career
                                                            Development Program policy, the process for promoting to
                                                            the GS-15 and Senior Executive Service level will use an
                                                            Executive Resources Board for selection of GS-15 and SES
                                                            positions.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Office of Enforcement recommendation 5: The Office of       Written response: OI has recruited minorities and women to  Substantially implemented.
Enforcement should develop an aggressive outreach program   participate in NLU programs.
to encourage career advancement for minorities.                                                                         Because this recommendation
                                                            Updated response: OI officials provided the following as    focused on developing by an
                                                            additional examples of what OI has done to encourage        "aggressive outreach program"
                                                            career advancement for minorities.                          and the panel did not define
                                                            --In the 2-week recruiter training course it has            what the program should
                                                            emphasized hiring minorities.                               consist of, we could not
                                                            --It has ensured a representation of females and            determine the degree to which
                                                            minorities on assignments to IA's Management Inspection     Customs had implemented the
                                                            Division, headquarters OI, and the Discipline Review        recommendation. We
                                                            Board.                                                      determined, however, that
                                                                                                                        Customs took actions that
                                                                                                                        appeared to be generally
                                                                                                                        consistent with the purpose
                                                                                                                        of the recommendation, and
                                                                                                                        therefore we categorized the
                                                                                                                        implementation as
                                                                                                                        "substantially implemented."
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Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Office of Enforcement recommendation 6: Employee            Written response: Line authority has provided the basis     Partially implemented.
Performance Appraisal System (EPAS) employees should be     for improved accountability through performance
held accountable to their EPAS plans, and problem           evaluation. Employees are placed on performance             We categorized this
employees should be properly rated and given a Performance  improvement plans when their performance warrants such      recommendation as partially
Improvement Plan (PIP) where appropriate.                   action. Standardized performance plans for SACs place       implemented because, although
                                                            appropriate emphasis on national program objectives,        Customs fully implemented the
Managers should be rated based on a wide variety of input.  management responsibilities and quantifiable performance    portion of the recommendation
The Management section of this report recommends a new OE   standards. As indicated in MANAGEMENT, Recommendation (4),  concerning use of improvement
field structure, and the rating system described here is    Customs chose not to adopt the recommendation to solicit    plans, it did not accept the
an important part of that structure. A SAC's performance    input of other managers in the rating of SACS because it    recommendation for using a
should be rated under the new structure by the Assistant    most likely would dilute the accountability and             matrix approach to ratings or
Commissioner (Enforcement) with input on a matrix type      objectivity of the rating process.                          soliciting input from other
evaluation sheet from all Assistant Commissioners and                                                                   managers in the rating of
Enforcement Division Directors, who in turn receive input   Updated response: According to an OPE official, under the   SACs.
from their staff. In addition, in order to maintain         new performance management system for EPAS employees (now
effective field relationships, the Regional Commissioner    called Employee Proficiency Review (EPR) employees) that
in whose specific area the SAC is located, his staff, and   Customs was implementing as we were doing our work, the
the District Director in that area should provide rating    employees will not have EPAS plans. These employees' EPR
input. Correspondingly, the SACs should rate their          forms cover four core competency areas--job knowledge,
subordinate managers, based on this matrix approach and     technical skills, professional application, and working
with input from the District Director.                      with others--for which they will have more simplified
                                                            plans. The employee and his/her supervisor are to discuss
                                                            these areas at least three times during the year--at the
                                                            performance planning meeting, one purpose of which is to
                                                            establish a common understanding of performance
                                                            expectations; at ongoing review meeting(s); and at the
                                                            annual proficiency review meeting at the end of the review
                                                            year. According to instructions for completing EPRs,
                                                            supervisors are to recognize deficiencies in performance
                                                            and determine the causes as soon as they become evident.
                                                            When deficiencies continue, the supervisor is to develop
                                                            and issue an Employee Proficiency Plan (EPP). Under the
                                                            new system, the EPP has taken the place of a Performance
                                                            Improvement Plan.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Office of Enforcement recommendation 7: The Panel           Written response: OI's inspection process has been          Partially implemented.
recommends that the Office of Enforcement inspection        abolished and subsumed into MID's inspection program. See
process be abolished and subsumed by the new inspection     MANAGEMENT, Recommendation (2).                             Note: In the second portion
process recommended in the Management and Internal Affairs                                                              of the recommendation, we
sections of this report. This process should focus on       The Management Inspection Division does not look at         followed up only on the
implementation of the changes called for in this report,    hiring, mobility, career path and Affirmative Action        changes specifically
such as hiring, mobility, career path and affirmative       during field management inspections as those areas are      identified in this
action.                                                     largely centralized at the Headquarters level. The Office   recommendation, i.e., hiring,
                                                            of Investigations has, however, made a large effort at the  mobility, career path, and
                                                            national level in the area of minority recruitment.         affirmative action.

                                                            Updated response: According to the Director, Management     We categorized this
                                                            Inspections Division, Office of Internal Affairs, the       recommendation as partially
                                                            inspections do not automatically cover each of these        implemented because, although
                                                            areas. IA could identify one of these areas as an issue in  the Office of Enforcement
                                                            an inspection report if it determined it was the cause of   inspection process was
                                                            a problem in a SAC office. IA does not have a policy to     abolished and subsumed by the
                                                            routinely conduct headquarters inspections. It does them    IA inspection process, IA's
                                                            at the request of an official at the Assistant              process does not
                                                            Commissioner level or above.                                automatically focus on the
                                                                                                                        other portions of the
                                                                                                                        recommendation. Additionally,
                                                                                                                        the panel recommended that
                                                                                                                        the inspections be done at
                                                                                                                        least every 2 years.
                                                                                                                        According to the Director,
                                                                                                                        Management Inspections
                                                                                                                        Division, the SAC office
                                                                                                                        inspections are scheduled for
                                                                                                                        every 3 or 4 years, with
                                                                                                                        follow-up inspections and
                                                                                                                        spot-checks to be done after
                                                                                                                        the comprehensive
                                                                                                                        inspections.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Office of Internal Affairs
-----------------------------------------------------------------------------------------------------------------------------------------------------
Internal Affairs recommendation 1: The Office of Internal   Written response: The integrity of the Customs Service has  Substantially implemented.
Affairs must take a pro-active role in agency leadership    been strengthened through the development and
to ensure the real and perceived institutional integrity    implementation of a comprehensive integrity training        Because this recommendation
of the Customs Service.                                     program which stresses the obligation of employees to       focuses on IA taking a
                                                            report alleged misconduct to Internal Affairs. During FY    proactive role in agency
                                                            1992, over 92% of the Customs workforce received this       leadership and the panel did
                                                            training and every basic training course at the Customs     not define what such a role
                                                            Academy incorporates an integrity module. Integrity         should consist of, we could
                                                            training is also included in supervisory and managerial     not determine the degree to
                                                            training courses.                                           which Customs has implemented
                                                                                                                        the recommendation.
                                                            The Office of Internal Affairs request for funds to
                                                            conduct updated integrity and ethics training was denied.   We determined, however, that
                                                            Integrity and ethics training is given to new supervisors   IA has implemented a number
                                                            and front line operations positions at FLETC in Glynco.     of actions that could be
                                                                                                                        construed as proactive and
                                                            Updated response: IA's Special Assistant Commissioner       therefore generally appeared
                                                            believed the following actions represented IA taking a      to be consistent with the
                                                            "pro-active" role in agency leadership to ensure Customs'   purpose of the
                                                            integrity: (1) In July 1996, IA will be providing special   recommendation.
                                                            HARDLINE training to the field that includes information
                                                            on Customs' integrity policy and how to report
                                                            allegations. IA agents will be teamed up with OI and Field
                                                            Operations personnel to be trained in the new course and
                                                            then teach it throughout the field. Funding has been
                                                            obtained to train Customs' field office personnel from San
                                                            Diego to Miami to Puerto Rico. (2) IA's new mission
                                                            statement states, in part, "every Customs employee has the
                                                            right to work in an environment free of corruption,
                                                            misconduct, or mismanagement." (3) The Commissioner's
                                                            directives on guidelines reporting allegations to IA were
                                                            issued to all supervisors and managers. (4) IA set up a
                                                            24-hour hotline for employees and the public to report any
                                                            allegations.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Internal Affairs recommendation 2: The Office of Internal   Written response: The IA structure at HQ has been           Fully implemented.
Affairs should be reinforced and restructured to ensure     reorganized to provide the basis for stronger direction
that the organization is designed to accomplish its         and more centralized control over investigations. This      Note: We did not assess
expanded mission. In developing this structure, Customs     structure includes an Internal Investigations Division and  whether the actions taken
should consider models for handling internal affairs that   an Investigative Programs Division, modeled on other law    "ensure" that IA accomplishes
already exist in other law enforcement agencies, such as    enforcement agencies' IA organizations. Desk officer        its mission.
the FBI and DEA. This new organization should include an    positions, which provide assistance to IA field activities
Office of Professional Responsibility and an Office of      and monitor investigations have been established. An        We determined that Customs
Inspections.                                                intelligence function has also been established to analyze  fully implemented this
                                                            allegations, investigations and conduct threat              recommendation even though it
                                                            assessments.                                                no longer has an OPR because
                                                                                                                        the functions of OPR are
                                                            Updated response: In IA's description of its intelligence   carried out by the desk
                                                            group, it documented that in 1992 IA had an Office of       officers in IA's Internal
                                                            Professional Responsibility (OPR) that is now referred to   Investigations Division. In
                                                            as its Internal Investigations Division.                    addition, Customs has a
                                                                                                                        Management Inspections
                                                            An Internal Affairs official said that due to Customs'      Division.
                                                            reorganization and attendant downsizing, IA eliminated the
                                                            layer of Director of OPR but retained its functions within
                                                            IA's Internal Investigations Division. Desk officers
                                                            perform the oversight functions for IA's OPR. Desk
                                                            officers track case management activities, review for
                                                            quality and comprehensiveness of cases, check on the
                                                            timeliness of cases, and act as conduits for information.

                                                            According to Customs' organization handbook, the Office of
                                                            Internal Affairs also has a Management Inspections
                                                            Division responsible for "developing and coordinating a
                                                            unified and broad-based approach to the implementation of
                                                            management inspection and undercover audit programs. These
                                                            programs gauge the effectiveness and efficiency of
                                                            managers, processes, strategies, and special interest
                                                            initiatives."
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Internal Affairs recommendation 3: The Assistant            Written response: During OOE's existence, IA was            Fully implemented.
Commissioner for Internal Affairs should report to the      reorganized so that it reported directly to the Associate
newly established Associate Commissioner for                Commissioner for OOE. Since OOE's abolishment, the          We categorized the
Organizational Effectiveness.                               Assistant Commissioner (IA) reports directly to the         recommendation as "fully
                                                            Commissioner at the same organizational level as other      implemented" because, during
                                                            Assistant Commissioners.                                    the existence of the Office
                                                                                                                        of Organizational
                                                                                                                        Effectiveness (OOE), the
                                                                                                                        Assistant Commissioner for
                                                                                                                        Internal Affairs did report
                                                                                                                        to the Associate Commissioner
                                                                                                                        of OOE. Customs abolished
                                                                                                                        OOE, and IA's Assistant
                                                                                                                        Commissioner now reports
                                                                                                                        directly to the Commissioner.
                                                                                                                        Although the blue ribbon
                                                                                                                        panel report was silent on
                                                                                                                        whether OOE should be
                                                                                                                        temporary, in testimony
                                                                                                                        during the 1991 congressional
                                                                                                                        hearing on Customs' blue
                                                                                                                        ribbon panel investigation
                                                                                                                        into allegations of
                                                                                                                        wrongdoing within the agency,
                                                                                                                        the panel's Chairman stated
                                                                                                                        that he believed it was at
                                                                                                                        the discretion of the
                                                                                                                        Commissioner whether the
                                                                                                                        Associate Commissioner
                                                                                                                        position in OOE was temporary
                                                                                                                        or permanent.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendations                                             Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Internal Affairs recommendation 4: The panel considers it   Written response: See MANAGEMENT, Recommendations (2 and    Partially implemented.
critical that Customs establish a comprehensive and         3) [Customs' written response to Management
aggressive internal inspection program with responsibility  recommendations 2 and 3 are copied below].                  Note: We did not assess the
placed in the Headquarters Office of Internal Affairs,                                                                  panel's meaning for
under the Associate Commissioner for Organizational         The Office of Management Inspection (OMI) was established   "comprehensive and
Effectiveness.                                              under OOE in April 1992 with the mission of conducting      aggressive," "all other
                                                            periodic and comprehensive inspections of Special Agent in  matters which affect the
-Inspections should cover management, operations, Customs   Charge (SAC) and District offices to evaluate: (1)          efficiency and integrity,"
agenda, personnel, internal controls and all other matters  management systems, practices, and effectiveness; and (2)   and "significant" as they
which affect the efficiency and integrity of the            compliance with laws, policies, and regulations. OMI's      related to this
organization being inspected.                               primary goal was to ascertain the health of the             recommendation.
                                                            organization through "independent" evaluation of
-Routine inspections should be conducted every 18-24        effectiveness, i.e., mission performance, resource          We categorized Customs'
months of all Customs offices (e.g., SAC, District,         utilization, internal/external relations, and management    implementation of this
Region, Headquarters).                                      controls. Relevant Blue Ribbon Panel issues such as         multifaceted recommendation
                                                            managerial effectiveness, performance indicators, and       as "partially implemented"
-Ad hoc teams of investigators should be dispatched when    supervisory, employee, and outside agencies (including      because Customs fully
allegations require such action.                            U.S. Attorneys) concerns were incorporated into the         implemented portions of this
                                                            inspection process.                                         recommendation, but it did
-Inspection findings should be communicated by the                                                                      not fully implement other
Associate Commissioner for Organizational Effectiveness to  Lack of resources has precluded implementation of           parts.
the responsible Regional/Assistant Commissioner, with a     comprehensive inspections at least every two years as
copy to the Commissioner.                                   recommended. However, each SAC office receives a            Customs fully implemented the
                                                            comprehensive, spot-check or special assessment every two   panel's recommended actions
-The Associate Commissioner should follow up and monitor    years.                                                      regarding (1) inspections
corrective action on behalf of the Commissioner to ensure                                                               covering management,
compliance.                                                 The abolishment of OOE placed OMI under IA and renamed it   operations, Customs' agenda,
                                                            the Management Inspections Division (MID). MID efforts are  personnel, internal controls,
-Inspection findings should be a significant consideration  now heavily concentrated on reviews of OI operations. MID   and all other matters that
in evaluating senior key manager performance.               operations must be re-evaluated in light of the             affect the efficiency and
                                                            transformation of the field structure from regions to       integrity of the organization
                                                            CMCs, the implementation of new measurement systems, and    being inspected; and (2) ad
                                                            the introduction of business process improvement            hoc teams of senior level
                                                            techniques to analyze our processes.                        investigators being
                                                                                                                        dispatched when allegations
                                                            Several memorandums have been distributed to Assistant and  require such action.
                                                            Regional Commissioners, District Directors, and mid-level
                                                            managers which communicated the standards for supervisory   On the basis of Customs
                                                            performance.                                                officials' statements, we
                                                                                                                        determined that Customs did
                                                            IA's Management Inspection Division reviews performance     not fully implement two parts
                                                            appraisal as a core area during comprehensive management    of this recommendation: (1)
                                                            inspections. This process aids in determining if the        Routine inspections of all
                                                            performance management system is working properly.          Customs offices are not
                                                                                                                        conducted every 18 to 24
                                                            Managers have been reassigned where it has been determined  months. Customs conducts
                                                            that they have lost effectiveness in their positions.       comprehensive inspections of
                                                                                                                        offices every 3 or 4 years,
                                                                                                                        not every 18 to 24 months.
                                                                                                                        (2) Inspection findings are
                                                                                                                        currently not a significant
                                                                                                                        consideration in evaluating
                                                                                                                        senior key manager
                                                                                                                        performance.

                                                                                                                        Customs fully implemented two
                                                                                                                        parts of the recommendation
                                                                                                                        while OOE and its attendant
                                                                                                                        Associate Commissioner were
                                                                                                                        in existence. (1) Inspection
                                                                                                                        findings were communicated by
                                                                                                                        the Associate Commissioner
                                                                                                                        for Organizational
                                                                                                                        Effectiveness to the
                                                                                                                        responsible Regional/
                                                                                                                        Assistant Commissioner, with
                                                                                                                        a copy to the Commissioner.
                                                                                                                        (2) The Associate
-----------------------------------------------------------------------------------------------------------------------------------------------------
Action taken                                                Categorization
----------------------------------------------------------  -----------------------------
Updated response: In Customs' written response to           Commissioner followed up and
Integrity recommendation 1 it stated that Customs has       monitored corrective action
trained groups of senior-level agents in the Office of      on behalf of the Commissioner
Investigations known as flying squads to conduct high-      to ensure compliance.
priority investigations at locations throughout the
country under the direction of IA.                          Customs partially implemented
                                                            one part of OOE was in
In addition, Customs' report to the panel in 1992 on its    existence. It established the
implementation of the panel's recommendations stated that   internal inspection program.
the "recommendation for a management inspection program in  It placed responsibility for
IA has been modified slightly to establish a separate       that program under OOE and
Office of Management Inspections, reporting directly to     not Internal Affairs,
the Associate Commissioner. The establishment of a          however. With the abolishment
separate office provides even greater independence and      of OOE, responsibility for
highlights the importance of the new inspection program. A  these inspections was placed
comprehensive program for inspection of Customs district    in IA, as recommended.
and SAC offices has been implemented, addressing
management, operations, and compliance. The Commissioner,
Deputy Commissioner, and senior managers have been briefed
on the results of every inspection and have demonstrated
continuing interest and commitment to the program. Just as
significantly, the results of inspections have been well
received by the inspected organizations. While resources
have not permitted a two-year cycle for inspection,
alternative means of evaluating field offices are now
being explored. In addition to comprehensive on-site
inspections, the Office of Management Inspections, (now
Management Inspections Division) has been called upon to
respond to specific allegations and concerns by conducting
single-issue reviews."

Inspection findings were communicated by the Associate
Commissioner for Organizational Effectiveness to the
responsible Regional/Assistant Commissioner, with a copy
to the Commissioner, according to Customs' 1992 report on
its implementation of the panel recommendations.

IA's Director of Management Inspections Division (MID)
said that there are over 300 offices to inspect and that
decisions on which offices would get comprehensive
inspections are based on IA's input from its Intelligence
Group within its Internal Investigations Division.

Furthermore, he said he did not agree with the panel's
recommendation to do comprehensive inspections of all
offices every 18 to 24 months. He intends to conduct
comprehensive inspections for SAC offices every 3 or 4
years. He believed that doing such inspections for every
office once every 3 or 4 years was sufficient because the
comprehensive inspections are followed by follow-up
inspections and spot-checks. He also said that if a
problem exists at an office, MID conducts a comprehensive
inspection sooner than the scheduled 3 or 4 years.
-----------------------------------------------------------------------------------------
Action taken                                                Categorization
----------------------------------------------------------  -----------------------------
Regarding communication of inspection findings, the
Director of MID also
said IA briefs the head of the office inspected right away
and gives him/her a
copy of the report on site. The office head has the
opportunity to respond to any deficiencies. Then the MID
official briefs the Assistant Commissioner of the office
inspected. IA officials also brief the Commissioner within
2 weeks from completion of comprehensive inspections and
follow up with a copy of the inspection report to the
Commissioner, Deputy Commissioner, and IA Assistant
Commissioner.

An Office of Planning and Evaluation official said that
there is no agency policy requiring that inspection
results be compared to supervisory and managerial
performance. The Director of MID said Customs does not yet
use inspections findings when evaluating SACs'
performance. He believes the new appraisal system should
help Customs move in that direction. (See Office of
Enforcement Recommendation 6.) An Office of Investigations
official also said that at least since June 1994, OI has
not used the management inspection reports when doing
SACs' ratings.

The Commissioner's 1992 testimony before the Commerce,
Consumer, and Monetary Affairs Subcommittee, House
Committee on Government Operations, on the panel's
recommendations included responses on Customs'
implementation of the recommendations. A portion of
Customs' response stated OOE is responsible for inspection
follow-up.
-----------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Internal Affairs recommendation 5: The Office of Internal   Written response: New systems and procedures were           Fully implemented.
Affairs should be responsible for investigating matters     implemented to ensure the effective management of all
relating to mismanagement, criminal misconduct and serious  allegations of mismanagement and misconduct. In 1992, a
non-criminal misconduct. Customs should prescribe a policy  new policy was issued which classified all types of
that determines which non-criminal misconduct should be     allegations, ranging from criminal misconduct to
referred to management for investigation.                   mismanagement, and defined responsibility for
                                                            investigations. These procedures have provided greater
                                                            consistency in handling allegations and establishing
                                                            investigative priorities. Allegations of misconduct and
                                                            mismanagement are handled through a variety of approaches,
                                                            including the use of IA investigators (who investigate all
                                                            allegations of criminal conduct and serious misconduct),
                                                            independent factfinders, Management Inspection staff and
                                                            joint efforts with Assistant and Regional Commissioners.

                                                            With the abolishment of OOE, allegations of mismanagement
                                                            are now referred by IA to the appropriate management
                                                            official. Customs continues to provide sufficient training
                                                            and instruction in integrity and mismanagement issues for
                                                            managers to conduct inquiries into problems within their
                                                            operations. This is consistent with National Performance
                                                            Review recommendations requiring managers to continuously
                                                            evaluate, correct and improve their own operations.

                                                            Updated response: An IA official said that with the
                                                            abolishment of the Office of Organizational Effectiveness,
                                                            IA is the recipient of mismanagement allegations and
                                                            determines if IA should conduct an investigation or should
                                                            refer the allegation to management.

                                                            IA's Special Assistant Commissioner referred us to the IA
                                                            Special Agent Handbook, which documents IA's policy that
                                                            fully implements the panel's recommendation. Customs also
                                                            had a directive dated November 18, 1993, that formalized
                                                            the reporting and processing by managers and supervisors
                                                            of allegations of misconduct and mismanagement. The IA
                                                            official said that IA is working further on defining which
                                                            allegations go to management and which ones stay with IA.
                                                            He said managers have been told that when in doubt about
                                                            where to refer an allegation (to IA or to management),
                                                            send the allegation to IA for a determination of who
                                                            should investigate it.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Internal Affairs recommendation 6: All reports and          Written response: Customs employees have been advised to    Partially implemented.
allegations of criminal activity, misconduct and            report allegations directly to IA. IA Investigators are
mismanagement should be reported to the Headquarters        trained to recuse themselves when a relationship exists     Note: We did not assess
Office of Internal Affairs.                                 between the investigator and the subject. IA Desk Officers  whether the actions taken
                                                            track and provide oversight on all field investigations.    "ensure" that investigators
-Customs should advise all employees to report allegations  Customs policy referenced in INTEGRITY, recommendation      assigned to cases have no
directly to IA. This does not preclude parallel reporting   (3), provides written notification to employees who were    prior association.
through the supervisory chain of command at the employee's  subject of an investigation that the investigation has
option.                                                     been concluded and that no disciplinary action will be      We categorized this
                                                            taken. In the event that disciplinary action will be        recommendation as partially
-Investigators may be assigned to non-criminal matters, at  taken, the subject of an investigation will be notified by  implemented because several
the discretion of the Assistant Commissioner (IA), from     the manager via disciplinary letter. IA tracks this         portions of the
outside of IA; however, IA must ensure that in the          information via the Disciplinary Action Tracking System     recommendation were fully
investigative process, only investigators with no prior     utilized by Labor and Employee Relations.                   implemented, while one
association with the office under investigation are                                                                     provision was not.
assigned to the case. Investigations should be concluded    Updated response: Customs issued a directive regarding
within six months; findings should be shared with the       allegation reporting and processing on November 18, 1993,   The provisions for (1)
subject of the allegation and reported back to IA at        directing that allegations be reported directly to IA.      reporting all reports and
Headquarters.                                                                                                           allegations of criminal
                                                            IA's Special Assistant Commissioner said that               activity, misconduct, and
                                                            investigators from outside of IA are assigned to            mismanagement to IA; (2)
                                                            noncriminal matters. He said IA has to rely on the          advising employees to report
                                                            investigator's integrity to disclose the need to recuse     allegations directly to IA;
                                                            himself from the case if he has a prior association with    (3) ensuring that only
                                                            the office under investigation. He said that IA ensures     investigators with no prior
                                                            that such recusals are done by investigators because they   association with the office
                                                            are taught to do this in training and he believes recusal   under investigation are
                                                            is included in their Special Agent Handbook.                assigned to cases; and (4)
                                                                                                                        sharing investigation
                                                            The IA official said that IA did not incorporate the        findings with the subject of
                                                            panel's recommendation to conclude investigations within 6  the allegation were fully
                                                            months. He said that the individual case dictates what      implemented.
                                                            needs to done, and the length of the investigation depends
                                                            on what the case requires. IA's case management system      IA did not fully implement
                                                            tracks the length of cases.                                 the provision that
                                                                                                                        investigations be concluded
                                                            The Special Assistant Commissioner of IA said that IA has   within 6 months. IA officials
                                                            a case tracking system with Customs' Labor Employee         believe that superimposing
                                                            Relations (LER) group. According to IA's Special Agent      such a time frame is not
                                                            Handbook, LER is responsible for advising Customs'          feasible, especially for
                                                            management on employee misconduct issues. LER prepares all  complex criminal cases. IA
                                                            related correspondence, i.e. notices of disciplinary        has a case tracking system to
                                                            action, grievance response for management. LER prepares     monitor the length of
                                                            written notification that is signed by the principal        investigations.
                                                            headquarters or field officer. LER officials inform
                                                            subjects of investigations of IA investigation results.
                                                            LER will notify employees when investigations have been
                                                            completed. We noted that this process is documented in a
                                                            November 5, 1993, Customs Directive on reports of
                                                            investigations.
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Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Internal Affairs recommendation 7: The Treasury Inspector   Written response: IA has taken several steps to improve     Fully implemented.
General (IG) and Customs must clarify their formal          coordination and cooperation with the OIG on
relationship to ensure that cases controlled by the IG are  investigations. In 1993 the Acting Associate Commissioner   Note: We did not assess
promptly investigated and the results communicated to       (OOE) issued a memorandum to the Assistant Inspector        "promptly investigated" and
Customs for timely resolution. IG investigations should be  General for Investigations confirming an agreement          "timely resolution" as they
conducted by the Inspector General's staff and not          regarding procedures for referral of allegations and        apply to this recommendation.
delegated to IA investigators.                              investigative information from the OIG to the Customs       We also did not assess the
                                                            Service. Additionally, both IA and the OIG have             portion of the recommendation
                                                            established desk officers to facilitate a better            that stated "IG
                                                            relationship. Further, an OIG report on cases referred to   investigations should be
                                                            Customs management in excess of 90 days has contributed to  conducted by the Inspector
                                                            more timely investigations.                                 General's staff and not
                                                                                                                        delegated to IA
                                                            Updated response: The Special Assistant Commissioner of IA  investigators" because
                                                            said the Treasury IG's Office always conducts               Customs had no control over
                                                            investigations of IA, SESers, and GS-15s and above. The     the Treasury Order that
                                                            IG's Office also has a hotline and standard referral        allows OIG to delegate IG
                                                            program. With the hotline tips that the IG sends to IA, an  investigations to IA.
                                                            IA desk officer determines where to send the allegations
                                                            for investigation--IA or management.                        We categorized this
                                                                                                                        recommendation as "fully
                                                            The Special Assistant Commissioner of IA said that there    implemented" because the
                                                            are certain investigations that OIG categorically has to    Treasury IG's and Customs' IA
                                                            do, but there are others the IG may refer to IA to do,      formal relationship regarding
                                                            such as administrative investigations. The Special          investigations was
                                                            Assistant Commissioner of IA said "OIG watches IA. It is    clarified.
                                                            the IG's option to return investigations to IA."

                                                            The Special Assistant Commissioner of IA said that the
                                                            memorandum between IA and the IG's Office referred to in
                                                            Customs' written response is in fact a Department of the
                                                            Treasury Order dated May 16, 1989, that was generated by
                                                            Treasury, not OOE. The Treasury Order stated that OIG can
                                                            refer certain allegations to Customs' Office of Internal
                                                            Affairs.

                                                            Treasury's Senior Special Agent, Office of Investigations,
                                                            OIG, who coordinates with Customs said that OIG's policy
                                                            and procedure are to refer allegations against Customs'
                                                            employees who are GS-14s and below to Customs' Office of
                                                            Internal Affairs, unless the employee works in IA. He said
                                                            that IA determines if the allegation should be
                                                            investigated by IA or Customs management. He also said
                                                            that there is no policy regarding the duration of IG
                                                            investigations; however, IG guidelines are that
                                                            administrative investigations be completed within 90 days.
                                                            There are no such guidelines for criminal investigations.
                                                            He also told us that Treasury issued a Directive dated
                                                            September 21, 1992, that covered IG referrals to IA. That
                                                            Directive states that the IG's Office can refer
                                                            investigations that fall within its jurisdiction to IA for
                                                            investigation by IA or Customs management.
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Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Internal Affairs recommendation 8: IA intelligence          Written response: An intelligence function has been         Fully implemented.
elements should be established, trained and dedicated to    established within IA to analyze allegations,
support the IA mission, with special emphasis on            investigations and conduct threat assessments.
corruption threat indicators, to develop sources and
methods to obtain information needed by IA investigators    Updated response: IA's Special Assistant Commissioner said
and supervisory personnel.                                  that the Intelligence Group was established in April 1992
                                                            with responsibilities much broader than those recommended
                                                            by the panel. He provided a description of the
                                                            Intelligence Group that stated in part: "The group's
                                                            efforts are devoted to four major areas: summary analysis;
                                                            tactical targeting; liaison; and investigative
                                                            enhancement. Summary analysis concentrates on trends in
                                                            allegations and investigations. Tactical targeting
                                                            provides specific corruption leads to field offices.
                                                            Liaison includes contact with the intelligence community
                                                            and other law enforcement intelligence entities for the
                                                            development of data sources. Investigative enhancement
                                                            consists of research and analysis in support of ongoing IA
                                                            investigations."

                                                            IA's Chief, Intelligence Group, said that IA's
                                                            Intelligence analysts in the Intelligence Group received
                                                            training dedicated to support the IA mission, including
                                                            training in corruption threat indicators to develop
                                                            sources and methods to obtain information needed by IA
                                                            investigators and supervisory personnel.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Internal Affairs recommendation 9: An assignment in         Written response: Career paths for GS-1811 special agents   Partially implemented.
Internal Affairs should be included in the established      are still under review. Budgetary restraints have limited
management career paths in the Customs Service. With the    Customs ability to effect Permanent Change of Station with  We categorized this
exception of Headquarters service, these assignments        all reassignments into IA. IA investigators are now         recommendation as partially
should require geographical relocations. Moreover, IA       journeymen GS-13.                                           implemented because Customs
should be staffed with senior experienced employees.                                                                    fully implemented one portion
                                                            Updated response: On June 24, 1996, Customs provided an     of the recommendation, but it
                                                            additional written response to its implementation of this   did not fully implement two
                                                            recommendation. Customs stated that about 2 years ago       other provisions of the
                                                            approximately 75 agents were rotated between IA and OI as   recommendation.
                                                            an outgrowth of the panel's recommendation. In addition, a
                                                            conscious effort was made to make an assignment in IA       The provision for staffing IA
                                                            career-enhancing and to help staff IA with senior agents    with senior experienced
                                                            (only GS-13s rotated from OI to IA).                        employees was fully
                                                                                                                        implemented.
                                                            OI's Director of Administration said that OI has not
                                                            implemented the career track; however, it has a draft       Customs did not fully
                                                            policy for a Career Development Program. Among other        implement the provision that
                                                            things, the program recognizes completion of various        (1) career paths should
                                                            career-enhancing assignments, including ones to IA field    include an assignment in IA;
                                                            offices.                                                    and (2) with the exception of
                                                                                                                        Headquarters service, these
                                                            IA's Special Assistant Commissioner said that IA wants      assignments should require
                                                            agents with at least 5 to 10 years' experience as           geographical relocations. The
                                                            investigators; therefore, IA recruits from OI because it    Career Development Program is
                                                            also has a working knowledge of Customs.                    still under review.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Training
-----------------------------------------------------------------------------------------------------------------------------------------------------
Training recommendation 1: The Customs Service should       Written response: Customs has emphasized a formal training  Substantially implemented.
establish a formal training program tailored to agents      program tailored to Special Agents on the Southwest
operating on the Southwest border. The program should       border. Since October, 1991, seventy-five percent of all    Customs did not have a formal
emphasize the integrity concerns, technical law             Southwest border agents have attended one or more training  training program tailored to
enforcement skills, and professional development unique to  classes that have included surveillance, undercover         agents operating on the
operating on the Southwest border.                          operations, and basic and advanced technical training.      Southwest border as of May
                                                                                                                        1996. However, OI is
                                                            Updated response: According to the OI Director, Office of   retooling and developing
                                                            Policy and Oversight, at least one training course was      training programs that cover
                                                            tailored for and given to some agents on the Southwest      the areas identified in this
                                                            border after the panel's report. According to the OI        recommendation--integrity,
                                                            Director of Administration, OI does not now have classes    technical law enforcement
                                                            tailored specifically for agents on the Southwest border.   skills, and professional
                                                            He said that OI is working on improving training for all    development. Additionally,
                                                            the agents. OI has retooled its advanced training classes,  the Office of Internal
                                                            the subjects of which mirror OI's four major investigative  Affairs will be giving a
                                                            areas. It is giving a larger number of these classes in     training program dealing with
                                                            the field than it has in the past so that there will be     integrity geared to an
                                                            opportunities for more special agents to take them.         enforcement operation along
                                                            According to the Director, Office of Policy and Oversight,  the southern border. We
                                                            each SAC office's field training officer is to provide      believe these efforts are
                                                            training quarterly that can be geared to the office.        generally consistent with the
                                                                                                                        purpose of this
                                                            OI also reworked its special agent refresher seminar and    recommendation but not
                                                            has been giving it in the field. Among the topics covered   responsive to the letter of
                                                            are integrity and ethics, interviewing, legal issues,       the recommendation.
                                                            professionalism, report writing, and undercover
                                                            operations.

                                                            According to the OI Director of Administration, OI is
                                                            developing a leadership/management symposium that will be
                                                            geared to those who have gone through supervisory training
                                                            and have been supervisors for a couple of years. Topics to
                                                            be covered include necessary skills for successful
                                                            managers, how to lead teams and motivate people, and
                                                            professional responsibility (including ethics and
                                                            integrity issues).

                                                            The Special Assistant Commissioner, IA, said that in July
                                                            1996 the Office of Internal Affairs will be providing
                                                            training in concert with a Customs operation covering the
                                                            southern border, Puerto Rico, and the Virgin Islands. The
                                                            training will be given to special agents and others
                                                            operating in those locations, and it will include
                                                            information on Customs' integrity policy.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Training recommendation 2: The Customs Service should       Written response: It is not economically or logistically    Not implemented--no action
require Spanish language proficiency for all agents         feasible to require Spanish language proficiency of         taken.
operating on the Southwest border.                          current employees.
                                                                                                                        Customs is not requiring
                                                            Updated response: According to information provided by      Spanish language proficiency
                                                            Customs at an April 1992 congressional hearing that         for all agents operating on
                                                            included testimony on the implementation of the panel's     the Southwest border. OI is
                                                            recommendations, in response to this recommendation,        attempting to get funding to
                                                            Customs stated that it was difficult to make Spanish        train certain agents sent to
                                                            language mandatory, and there were many downsides to        the Southwest border in the
                                                            requiring it in terms of hiring and retention.              Spanish language.

                                                            According to the OI Director, Office of Policy and
                                                            Oversight, after the panel's report Customs tried
                                                            different types of Spanish language training for special
                                                            agents. They found, however, that the agents were not
                                                            reaching the proficiency level needed to interview
                                                            informants and violators.

                                                            According to the OI Director of Administration, OI is
                                                            working with another office in Customs to get funding for
                                                            Spanish language training for four SAC offices. This
                                                            official also said that the San Diego office has a Spanish
                                                            language program that it funded out of its own budget.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Training recommendation 3: All new supervisors must         Written response: Customs policy requires that all          Partially implemented.
successfully complete in-service supervisory training.      employees selected for initial entry into a supervisory
Supervisors, at every level, must participate on a          position attend a two week basic supervisory seminar. The   Note: The panel did not state
periodic basis in a continued supervisory training and      seminar includes modern management principles, integrity    how frequently supervisors
performance assessment program.                             awareness, internal controls, performance management,       should participate in the
                                                            discipline and whistleblower concerns and workforce         training. Therefore, we did
                                                            diversity issues. In addition, Customs offers supervisory   not base our categorization
                                                            refresher training designed for supervisors who have not    on actions taken on a
                                                            attended Customs supervisory skills development training    specific "periodic basis."
                                                            within the previous three years.
                                                                                                                        We categorized this
                                                            Updated response: The Director, Management Training         recommendation as "partially
                                                            Division, Customs Service Academy at the Federal Law        implemented" because,
                                                            Enforcement Training Center (FLETC), said that Customs has  although the provision for
                                                            no policy that states supervisors must take refresher       new supervisors to
                                                            training. In April 1996, he said that Customs did provide   successfully complete in-
                                                            supervisory refresher training at the Customs Academy at    service training was fully
                                                            FLETC, up until 1 year ago, but now Customs has not funded  implemented, Customs did not
                                                            such training at FLETC. Some supervisory refresher          fully implement the
                                                            training is being provided by individual Customs offices.   recommendation's provision
                                                            OI is working on a supervisory symposium that has not yet   that supervisors, at every
                                                            been implemented. The Assistant Commissioner, Human         level, must participate on a
                                                            Resources, has an initiative under way to revamp all        periodic basis in a continued
                                                            supervisory training at FLETC, according to an official in  supervisory training and
                                                            Customs' Office of Planning and Evaluation.                 performance assessment
                                                                                                                        program.
                                                            On June 24, 1996, Customs provided an additional written
                                                            response to its implementation of this recommendation.
                                                            Customs stated that it is revamping the supervisory
                                                            training at FLETC using a cross-functional team of high-
                                                            level field managers that is reviewing a broad spectrum of
                                                            supervisory and managerial training and development needs.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Training recommendation 4: The Customs Service should       Written response: Never implemented.                        Not implemented--action
establish a career track for supervisors, the first step                                                                taken.
of which requires participation in a to-be-developed        Updated response: The Director, Office of Administration,
"relief supervisor" program.                                OI, said that in 1994, OI had a career track for special    We categorized the
                                                            agents who wanted to become SACs. The track, however, was   implementation of this
                                                            not being adhered to, and OI drafted a Career Development   recommendation as "not
                                                            Program in 1995. (See Office of Enforcement recommendation  implemented--action taken"
                                                            3.)                                                         because no part of this
                                                                                                                        recommendation has been fully
                                                            He said that with the change in OI's structure, the         implemented, but some action
                                                            drafted Career Development Program has to change. He also   has been taken toward
                                                            said that with the President's cap on the number of GS-13   establishing a Career
                                                            to GS-15s and SESers, the number of OI supervisory          Development Program (rather
                                                            positions is affected.                                      than a career track).

                                                            OI's Director, Office of Policy and Oversight, said that
                                                            OI does not have a relief supervisor program. She noted
                                                            that legally, she was not sure that they could tap the
                                                            same person every time to be a "relief supervisor." They
                                                            would have to rotate 120-day supervisory details among the
                                                            experienced staff.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Training recommendation 5: The supervisory training and     Written response: [Customs did not provide a written        Fully implemented.
performance assessment program should be constantly re-     response to this recommendation.]
evaluated to ensure sufficient emphasis on personnel                                                                    Note: We did not assess the
management problems, "whistleblower" policies, integrity    Updated response: Customs stated in its 1992 report on the  panel's recommendation for
awareness, quality management, institutional loyalty and    implementation of the panel's recommendations that in       "constantly."
leadership values.                                          response to the recommendations of the blue ribbon panel,
                                                            supervisory and management training has been examined and
                                                            refined. According to the report, to set the tone for
                                                            these training efforts, the Commissioner promulgated a
                                                            management philosophy stressing the key themes of
                                                            leadership, integrity, management accountability, and
                                                            institutional loyalty. These principles form the
                                                            foundation of all of the management training programs. The
                                                            curriculum of the basic supervisory training course has
                                                            been expanded to include emphasis in areas such as
                                                            integrity awareness, internal controls, performance
                                                            management, discipline and whistleblower concerns, and
                                                            workforce diversity issues.

                                                            The Commissioner's April 1, 1992, testimony on the panel's
                                                            recommendations included Customs' actions taken to
                                                            implement the recommendations. Some of these actions were
                                                            stated in the document as (1) Customs has recently
                                                            completed a major review of all supervisory programs, (2)
                                                            both supervisor and manager courses have been updated, and
                                                            (3) whistleblower training was incorporated in supervisor
                                                            and manager courses.

                                                            The Director of the Management Training Division at FLETC
                                                            said that the Assistant Commissioner, Human Resources,
                                                            established a team that is specifically addressing this
                                                            recommendation in terms of evaluating the effectiveness of
                                                            supervisory/managerial training. He said that the team
                                                            will be addressing such issues as how to evaluate the
                                                            supervisory/managerial training programs.

                                                            The team's plan is to assess Customs' core competencies
                                                            and identify gaps in these competencies. The team will use
                                                            assessment tools designed to identify the developmental
                                                            needs and job strengths of Customs' managerial pool and to
                                                            assess the gap in managers' and supervisors' competencies.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Training recommendation 6: The Customs Service should       Written response: See OFFICE OF INVESTIGATION,              Fully implemented.
establish a new agent "mentor" program. Such a program      recommendation (3) [the portion of the written response to
should require that a senior agent mentor be assigned for   OE recommendation 3 concerning the mentor program is        Note: We did not assess "all
at least a one year period to assist and advise new agents  copied below].                                              aspects" as it applies to
on all aspects of professional conduct.                                                                                 this recommendation.
                                                            A mentor program has been established whereby senior
                                                            agents serve as mentors for all new agents and ensure
                                                            appropriate training is received.

                                                            Updated response: According to the Criminal Investigator
                                                            On-the-Job Training Handbook, which embodies the new agent
                                                            mentor program, the first phase of the training should
                                                            begin immediately upon the special agent's reporting to
                                                            duty and should continue for 1 year. This handbook stated
                                                            that one of the purposes of the program is to improve the
                                                            professionalism and competence of Special Agent personnel
                                                            assigned to SAC offices. One of the mentor's
                                                            responsibilities is to serve as a professional role model
                                                            for the trainee.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Training recommendation 7: The Customs Service should       Written response: Customs agents currently receive          Fully implemented.
ensure that agents receive continuing formalized in-        training in law enforcement and professional standards.
service training that addresses evolving issues in                                                                      Note: We did not assess a
criminal law enforcement and reinforces adherence to        Updated response: As discussed under the training           particular time frame for
professional standards.                                     recommendation 1 updated response, OI reworked its special  "continuing" as it applies to
                                                            agent refresher seminar and has been holding the seminar    this recommendation because
                                                            in the field. OI retooled its advanced courses in its four  one was not defined by the
                                                            program areas and has been holding them in the field. They  panel.
                                                            include evolving issues in law enforcement. Additionally,
                                                            according to the OI Director, Office of Policy and
                                                            Oversight, each SAC office's training officer is expected
                                                            to make arrangements for 8 hours of training on law
                                                            enforcement issues to be given at the SAC office each
                                                            quarter. Agents are encouraged but not required to attend
                                                            the training.

                                                            According to the OI Director of Administration, OI is
                                                            requiring that the following agents in the field office in
                                                            which the advanced training is given attend the training:
                                                            those who are in the group dealing with that issue, who
                                                            are projected to move into that group, or who have not had
                                                            the training. The Assistant Commissioner, OI, said he set
                                                            a goal for the Director of Enforcement Training to ensure
                                                            that each operational nonsupervisory agent receive
                                                            refresher or specialized training every 5 years.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Whistleblowers
-----------------------------------------------------------------------------------------------------------------------------------------------------
Whistleblowers recommendation 1: Customs employees should   Written response: In September 1991, a memorandum was       Fully implemented.
be informed of the various avenues for reporting problems   issued to all Customs employees concerning the
that are available to whistleblowers. Alternative channels  Whistleblower Protection Act (WPA). Employees were also
for reporting grievances should be similarly explained and  provided a booklet, published by the Merit Systems
the use encouraged.                                         Protection Board, which contained information on the WPA
                                                            and identified the employee rights and avenues available
                                                            to them. Currently, employees make complaints to IA, the
                                                            Office of Special Counsel or both.

                                                            Updated response: The Customs representatives of OPE, IA,
                                                            Office of Chief Counsel, and HRM with whom we spoke
                                                            believed this recommendation concerned avenues for
                                                            reporting problems of retaliation against whistleblowers.
                                                            Depending upon the type of retaliation alleged, Customs
                                                            employees may direct their allegation through the agency's
                                                            grievance system (for union employees, this would be the
                                                            grievance and arbitration procedures as provided in the
                                                            union agreement); or to the Office of Special Counsel
                                                            (OSC).\e Furthermore, according to an OPE official,
                                                            reporting through one avenue does not preclude the
                                                            employee from reporting through another avenue.

                                                            Information on the grievance system is in Customs'
                                                            Policies and Procedures Manual. Discussion of the
                                                            availability of the grievance and arbitration procedures
                                                            is in the bargaining unit contract section on "Protection
                                                            Against Prohibited Personnel Practices." According to an
                                                            OPE official, a copy of the contract is to be given to
                                                            each union employee. This section also states that the
                                                            employee may raise the matter under a statutory procedure.

                                                            According to an IA official, claims of retaliation that
                                                            are sent to Internal Affairs are read by one individual to
                                                            determine if the claim appears to be a whistleblower
                                                            retaliation claim. If it appears to be so, this individual
                                                            asks the relevant Internal Affairs agent to tell the
                                                            complainant that he/she needs to file the complaint with
                                                            the Office of Special Counsel for investigation. Customs
                                                            did not have a written policy on this practice. Customs
                                                            formerly investigated these complaints but no longer does
                                                            the investigations. (See whistleblowers recommendation 4.)
                                                            Customs issued a memo in June 1996 to managers in the
                                                            Internal Affairs field offices telling them that when an
                                                            employee makes a whistleblower retaliation claim, the
                                                            employee should be advised to contact OSC.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Whistleblowers recommendation 2: Comprehensive procedures   Written response: In September and December 1991, a         Fully implemented.
should be issued to supervisors for dealing with employees  memorandum was issued to all Assistant and Regional
who are designated whistleblowers.                          Commissioners and Supervisors and Managers respectively
                                                            expressing the Commissioner's commitment to ensuring all
                                                            employees who made whistleblower disclosures were
                                                            protected from retaliation and reprisal.

                                                            Updated response: According to a Customs training manager,
                                                            the procedures for dealing with employees who are
                                                            designated whistleblowers also have been included in
                                                            supervisory training since 1992. New supervisors are
                                                            supposed to receive supervisory training within the first
                                                            year of their appointment to the supervisory position,
                                                            according to the former chief, Employee Relations and
                                                            Benefits Policy Branch.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Whistleblowers recommendation 3: The Associate              Written response: During OOE's existence the Associate      Substantially implemented.
Commissioner for Organizational Effectiveness should be     Commissioner was designated as the agency point to receive
designated as the agency point to receive whistleblowing    whistleblowing disclosures. Since OOE's abolishment,        During OOE's existence, this
disclosures (although employees may elect other channels    Headquarters IA and the Office of Chief Counsel serve as    recommendation was fully
for this purpose).                                          the agency contact for employees and the Office of Special  implemented. With the closure
                                                            Counsel respectively.                                       of OOE there is no one office
                                                                                                                        designated as the agency's
                                                            Updated response: Although there is no one designated       whistleblowing contact point;
                                                            agency point to receive whistleblowing disclosures,         however, there are a number
                                                            Customs officials stated there were a variety of avenues    of avenues through which an
                                                            through which employees could report whistleblowing         employee can make a
                                                            disclosures. In addition to headquarters IA, the Office of  whistleblowing disclosure.
                                                            Chief Counsel, and the Office of Special Counsel, as        Hence, we believe that while
                                                            mentioned above, Customs representatives of OPE, IA,        the situation is not
                                                            Office of Chief Counsel, and HRM told us other avenues are  responsive to the letter of
                                                            available. They said these avenues included the employee's  the recommendation, it is
                                                            management chain, IA's hotline, field IA offices, the       generally consistent with its
                                                            Commissioner's office, and the Department of the Treasury   purpose.
                                                            Office of Inspector General.

                                                            An official from OPE stated that ways in which employees
                                                            know about one or more of these avenues included:
                                                            --whistleblowing segments in training courses, such as
                                                            supervisory and basic inspector training;
                                                            --a directive in Customs Policies and Procedures Manual on
                                                            allegation reporting and processing;
                                                            --the union contract; and
                                                            --periodic reminders issued by the Department of the
                                                            Treasury Office of Inspector General.
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Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Whistleblowers recommendation 4: If the Associate           Written response: Determinations on Whistleblower           Substantially implemented.
Commissioner receives a complaint and determines that the   allegations are made by the Office of Chief Counsel and
complainant is a whistleblower, investigation of the        referred to IA for expeditious investigation.               Note: We did not assess
whistleblower's allegations must be given priority in                                                                   "expeditious" as it applies
accordance with strict timelines for expeditious            Updated response: The Customs representatives of OPE, IA,   to this recommendation.
completion of the investigation.                            Office of Chief Counsel, and HRM with whom we spoke
                                                            believed this recommendation concerned complaints of        We categorized Customs'
                                                            retaliation. After the panel's report, Customs hired an     implementation of this
                                                            investigator formerly with the Office of Special Counsel    recommendation as
                                                            to do in-house investigations of whistleblower retaliation  "substantially implemented"
                                                            complaints. According to that individual, he did those      because, according to an IA
                                                            investigations expeditiously because they were his only     official, during OOE's
                                                            priority. As a result of Customs' reorganization, in        existence, the whistleblower
                                                            November 1994 Customs ceased to accept whistleblower        complaints were given
                                                            retaliation complaints for investigation. He said IA does   priority and completed
                                                            not have the assets to do the investigations. The practice  expeditiously. OOE no longer
                                                            in Customs then was to have the individual who formerly     exists, however, and the
                                                            investigated these complaints review any retaliation        whistleblower complaints are
                                                            complaints that came through IA to determine if they        investigated by the Office of
                                                            appeared to be whistleblower retaliation complaints. If     Special Counsel (OSC).
                                                            they did, he requested the IA agent who logged the          Because OSC is an agency
                                                            complaint into IA's tracking system to notify the           external to Customs, Customs
                                                            complainant that he/she needed to file the complaint with   cannot ensure that Customs
                                                            the Office of Special Counsel. Customs did not have a       employees' whistleblower
                                                            written policy on this practice.                            allegations are given
                                                                                                                        priority.
                                                            Customs issued a memo in June 1996 to managers in the
                                                            Internal Affairs field offices stating that if an employee
                                                            made a whistleblower retaliation claim, the employee
                                                            should be advised to contact OSC.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Whistleblowers recommendation 5: No administrative action   Written response: Customs has provided a comprehensive      Substantially implemented.
may be taken against a designated whistleblower until the   training program to supervisors and managers on
whistleblower's allegations have been resolved unless       whistleblower rights and protections. Beginning at the top  We categorized Customs'
there is no nexus between the whistleblower's allegations   with Assistant and Regional Commissioners, and working      implementation of this
and the alleged misconduct of the whistleblower.            through mid-management levels to first line supervisors, a  recommendation as
Determinations as to nexus should be made by the Associate  major training initiative was accomplished: virtually       "substantially implemented"
Commissioner, with the advice of Counsel.                   every supervisor in the Customs Service has been trained    because during OOE's
                                                            in whistleblower rights and protections. By March 1, 1992,  existence the policy on
                                                            over 2,500 supervisors were trained by attorneys in         administrative actions
                                                            Customs Chief and Regional Counsel offices. Whistleblower   against whistleblowers was
                                                            training has also been incorporated into every supervisory  consistent with the
                                                            and mid-manager training course.                            recommendation. OOE no longer
                                                                                                                        exists, however, and the
                                                            Updated response: A former OOE official said that OOE       Office of Special Counsel
                                                            established a policy that no administrative action could    determines whether to request
                                                            be taken against a designated whistleblower until the       that Customs not take an
                                                            whistleblower's allegations were resolved, unless there     administrative action. We
                                                            was no connection between the whistleblower's allegations   believe that this action is
                                                            and the alleged misconduct of the whistleblower.            generally consistent with the
                                                                                                                        purpose of the
                                                            In the absence of an Associate Commissioner for             recommendation.
                                                            Organizational Effectiveness, if an employee were to take
                                                            a whistleblowing retaliation allegation to the Office of
                                                            Special Counsel, OSC would determine if there was a
                                                            potential connection. If OSC thought there might be a
                                                            nexus, it would ask Customs either formally or informally
                                                            to stay the action until it determined if there was a
                                                            connection.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Whistleblowers recommendation 6: Strong sanctions should    Written response: The agency Table of Offenses and          Fully implemented.
be applied to supervisors who engage in any retaliation     Penalties was strengthened to establish strong sanctions
against whistleblowers.                                     against managers or supervisors who retaliate against
                                                            whistleblowers.

                                                            Updated response: According to an official in the Employee
                                                            Relations and Benefits Policy Branch, the sanctions for
                                                            retaliation remain in the Table of Offenses and Penalties
                                                            and they are being used.


Discipline
-----------------------------------------------------------------------------------------------------------------------------------------------------
Discipline recommendation 1: Sanctions should be imposed    Written response: In December 1991 three changes were made  Fully implemented.
against supervisors and managers who fail to take           to the agency Table of Offenses and Penalties
appropriate disciplinary actions.                           incorporating sanctions against supervisors and managers
                                                            who fail to report instances of serious misconduct or who
                                                            fail to take appropriate disciplinary action.

                                                            Updated response: According to an official in the Employee
                                                            Relations and Benefits Policy Branch, the sanctions for
                                                            failing to report instances of misconduct or to take
                                                            appropriate disciplinary actions remain in the Table of
                                                            Offenses and Penalties and they are being used.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Discipline recommendation 2: Managers must report all       Written response: In February 1993 a memorandum for all     Fully implemented.
instances of misconduct in accordance with the              supervisors and managers was issued emphasizing their
recommendations contained in this report (see Internal      obligations to report instances of misconduct.              Note: We did not determine
Affairs section).                                                                                                       our categorization of the
                                                            Updated response: Customs' February 1993 memorandum stated  implementation of this
                                                            that managers and supervisors are required to refer all     recommendation on the basis
                                                            allegations of employee misconduct, except administrative   of the panel's reference to
                                                            misconduct, to the Office of Internal Affairs.              "in accordance with the
                                                            Administrative misconduct may be referred to management     recommendations contained in
                                                            for investigation.                                          this report (see Internal
                                                                                                                        Affairs section)."
                                                            In addition, the Commissioner of Customs issued a
                                                            memorandum on December 20, 1991, to all supervisors and
                                                            managers regarding Customs' Table of Offenses and
                                                            Penalties. The memorandum stated in part, "I want to
                                                            ensure that all supervisors and managers understand their
                                                            responsibilities" in reporting employee misconduct. The
                                                            memorandum attached a new category of misconduct for
                                                            inclusion in the Table of Offenses and Penalties for
                                                            managers and supervisors who fail to report instances of
                                                            misconduct. Specifically, failure to report criminal and/
                                                            or serious misconduct to Internal Affairs and/or any act
                                                            or failure to act which undermines the discipline process:
                                                            first offense: written reprimand to 14-day suspension;
                                                            second offense: 14-day suspension to removal; and third
                                                            offense: 30-day suspension to removal.

Discipline recommendation 3: Sanctions should be imposed    Written response: See DISCIPLINE, recommendation (1)        Fully implemented.
against supervisors who fail to report instances of         [Customs' written response to Discipline recommendation 1
misconduct.                                                 is copied below].

                                                            In December 1991 three changes were made to the agency
                                                            Table of Offenses and Penalties incorporating sanctions
                                                            against supervisors and managers who fail to report
                                                            instances of serious misconduct or who fail to take
                                                            appropriate disciplinary action.

                                                            Updated response: According to an official in the Employee
                                                            Relations and Benefits Policy Branch, the sanctions for
                                                            failing to report instances of misconduct remain in the
                                                            Table of Offenses and Penalties and they are being used.
-----------------------------------------------------------------------------------------------------------------------------------------------------
Recommendation                                              Action taken                                                Categorization
----------------------------------------------------------  ----------------------------------------------------------  -----------------------------
Discipline recommendation 4: The brown book system as it    Written response: See INTERNAL AFFAIRS, recommendation (5)  Fully implemented.
currently exists should be eliminated. Investigations of    [Customs' written response to Internal Affairs
misconduct should be assigned by the Assistant              recommendation 5 is copied below].                          Note: Our categorization of
Commissioner (Internal Affairs) in accordance with the                                                                  the implementation of this
recommendations contained in this report. Under no          New systems and procedures were implemented to ensure the   recommendation was not based
circumstances should managers investigate reports of        effective management of all allegations of mismanagement    on the panel's reference to
serious misconduct within their own chain of command. The   and misconduct. In 1992, a new policy was issued which      "in accordance with the
results of all investigations should be forwarded to the    classified all types of allegations, ranging from criminal  recommendations contained in
Headquarters office of Internal Affairs to establish        misconduct to mismanagement, and defined responsibility     this report."
accountability.                                             for investigations. These procedures have provided greater
                                                            consistency in handling allegations and establishing
                                                            investigative priorities. Allegations of misconduct and
                                                            mismanagement are handled through a variety of approaches,
                                                            including the use of IA investigators (who investigate all
                                                            allegations of criminal conduct and serious misconduct),
                                                            independent factfinders, Management Inspection staff and
                                                            joint efforts with Assistant and Regional Commissioners.

                                                            With the abolishment of OOE, allegations of mismanagement
                                                            are now referred by IA to the appropriate management
                                                            official. Customs continues to provide sufficient training
                                                            and instruction in integrity and mismanagement issues for
                                                            managers to conduct inquiries into problems within their
                                                            operations. This is consistent with National Performance
                                                            Review recommendations requiring managers to continuously
                                                            evaluate, correct and improve their own operations.

                                                            Updated response: Customs' February 1993 memorandum stated
                                                            that "managers and supervisors are required to refer all
                                                            allegations of employee misconduct, except administrative
                                                            misconduct, to the Office of Internal Affairs."

                                                            According to information provided by Customs at an April
                                                            1992 congressional hearing, (1) the "brown book" system
                                                            has been eliminated; (2) managers will no longer
                                                            investigate misconduct; (3) most routine administrative
                                                            issues, such as leave problems, are still within the
                                                            purview of management; and (4) IA will control all
                                                            investigations.

                                                            The Special Assistant Commissioner of IA said that IA's
                                                            statistical reports show that IA, not management, is
                                                            conducting misconduct investigations.

                                                            Customs' Directive on reports of investigations issued by
                                                            the Office of Internal Affairs on November 5, 1993, states
                                                            that "upon completion of an investigation, the Assistant
                                                            Commissioner, IA or the Regional Director, IA will forward
                                                            the original report of investigation to the concerned
                                                            headquarters or field officer."
-----------------------------------------------------------------------------------------------------------------------------------------------------
The following notes were added by GAO. 

\a A mobility policy is essentially a rotation policy. 

\b According to a 1992 revision to Customs' Organization Handbook,
the necessity for OOE would "be reviewed after a three year period
and annually thereafter."

\c The SACs are the Special Agents in Charge in the Office of
Investigations (formerly the Office of Enforcement).  The DDs were
the District Directors.  The port directors, to whom the inspectors
reported, reported to the DDs, who reported to the Regional
Commissioners.  Customs' district and region structure was abolished
in its 1995 reorganization. 

\d The panel stated in Management Finding 9 that "However commendable
the [Excellence] program's objectives were, the panel found that the
Excellence program contributed to and intensified deficiencies in
management, especially within the Office of Enforcement.  The
exclusion of supervisors from employee roundtables with the Regional
Commissioner undermined supervisory authority, provided changes in
operational procedures and systems without consulting with the
responsible supervisors, and permitted employees to use the
roundtables as a `gripe session' about supervisors.  This served to
disenfranchise a significant group of managers and supervisors, and
contributed to the managers' failure to take responsibility or to be
held accountable for their actions."

\e The Office of Special Counsel functions as an independent
investigative and prosecutorial agency within the executive branch
that litigates before the Merit Systems Protection Board.  Its
primary role is to protect employees, former employees, and
applicants for employment from prohibited personnel practices,
especially reprisal for whistleblowing.  Some of its basic areas of
statutory responsibility are (1) receiving and investigating
allegations of prohibited personnel practices; and (2) providing a
secure channel through which information evidencing a violation of
any law, rule, or regulation; gross mismanagement; gross waste of
funds; abuse of authority; or substantial and specific danger to
public health or safety may be disclosed without fear of retaliation
and without disclosure of identity, except with the employee's
consent. 

Source:  The blue ribbon panel report, Customs' written response to
GAO on actions taken in relation to each recommendation, and GAO
analysis of Customs documents and interviews. 




(See figure in printed edition.)Appendix II
COMMENTS FROM THE CUSTOMS SERVICE
=========================================================== Appendix I



(See figure in printed edition.)


MAJOR CONTRIBUTORS TO THIS REPORT
========================================================= Appendix III

GENERAL GOVERNMENT DIVISION

Darryl W.  Dutton, Assistant Director
Mary Lane Renninger, Senior Evaluator
Wendy C.  Graves, Evaluator
Walter L.  Raheb, Senior Evaluator
David P.  Alexander, Senior Social Science Analyst
Amy E.  Lyon, Senior Evaluator
Pamela V.  Williams, Communications Analyst
Michelle Wiggins, Administrative Assistant


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