H.R. 4574: Reauthorization of the Inspector General Cash Award Program for Cost Savings Disclosures

GAO discussed proposed legislation that would: (1) permanently establish the Inspector General (IG) Cash Award Program for Cost Savings Disclosures; and (2) modify the government employees' suggestion awards program. GAO found that the proposed legislation: (1) did not address awards for disclosures to government officials other than IG or for disclosures yielding intangible benefits; and (2) would not affect the current formula for computing government awards. GAO also found that the private sector: (1) cited monetary rewards, personal recognition, and the desire to contribute to operational improvements as factors that stimulate employee participation in suggestion programs; (2) was more successful in eliciting employee participation than the federal government; and (3) generally used a fixed-percentage formula to compute the amount of disclosure awards.