The Inspectors General--On-the-Spot Watchdogs

This article appeared in the GAO Review, Vol. 15, Issue 2, Spring 1980. The Inspector General Act of 1978 established Inspector General (IG) offices in six federal departments and six federal agencies patterned after the IG office already established in HEW. IG's play a key role in the process of governmental accountability. Their activities are designed to promote economy and efficiency and prevent and detect fraud, abuse, waste, and mismanagement in Federal programs and expenditures. Prior to the establishment of the IG system, congressional hearings found serious deficiencies in auditing and investigative organization, procedures, and resources such as multiple audit or investigative units within a single agency, auditors reporting to officials who were responsible for the program under review, lack of affirmative programs to look for fraud or abuse, investigators who were hampered or prevented from investigation, potential fraud cases which had not been sent on for prosecution, and serious shortages of audit and investigative personnel. In order to make the IG's independent of their agency heads, Congress made them presidential appointees subject to confirmation by the Senate. The IG reports to the head of the department or agency, but the agency head may not prohibit or limit the IG audits, investigations, or the issuing of subpoenas. The agency head can add his comments to an IG semi-annual report to Congress, but cannot change its contents. IG duties include providing policy direction; conducting audits and investigations relating to agency programs and operations; reviewing and making recommendations about existing and proposed legislation; program management advice; fraud and abuse detection; coordinating interagency efforts to promote economy and prevent fraud; identifying and prosecuting participants in such fraud and abuse; and informing Congress of program problems and recommending corrective action. The IG must comply with standards established by the Comptroller General for audits and avoid duplication of GAO activities. IG's see five problems which must be overcome before they achieve their goals. Agencies perception of the IG role must extend far beyond tracking down law breakers. The organizational structure of IG offices must be established. They must be allocated adequate resources, develop training programs for auditors and investigators, and encourage cooperation between auditors and investigators.