Views and Recommendations on S. 1327

GAO was requested to comment on S. 1327 which would amend the Inspector General Act of 1978. According to the congressional staff that drafted the legislation, the intent of one provision of the bill is to require the inspectors general to establish schedules and deadlines for resolving audit findings. However, when read in conjunction with another provision, this provision could be interpreted as requiring the establishment of schedules and deadlines for completing the audits rather than resolving the findings and recommendations resulting from the audits. GAO believed that the intent of the provision could be clarified by changing the wording of the provision. In addition, GAO believed that the bill also needed clarification to show that the reporting requirement contained in this provision pertains to the agencies' failure to resolve audit findings rather than its failure to complete the audits within a predetermined timeframe. GAO suggested three alternatives to the proposed reporting requirement. GAO favored the concept of allowing inspectors general to litigate cases that could not be handled by the Attorney General to recover Federal funds where a violation of law has occurred. However, GAO believes that all litigation involving the United States should be subject to the supervision and direction of the Attorney General. Additionally, GAO believed that inspectors should have the authority to employ outside counsel, where necessary, to promote efficiency and economy or to avoid conflict-of-interest situations.