Summary: GAO was asked to review and comment on an amendment to the Inspector General Act to establish Inspectors General in certain agencies. GAO strongly supported the Act and other legislation which has centralized internal audit and investigative activities in certain Federal agencies under statutory Inspectors General. Such legislation is beneficial because it insures that high-level agency attention is given to promoting economy and efficiency and to combating fraud, waste, and abuse. Such legislation provides better assurance that the work of audit and investigative units in those agencies and throughout the Government is coordinated and insures that both Congress and agency heads receive information on problems involving economy and efficiency as well as fraud and abuse. For the Department of Defense, the legislation will be feasible and desirable with a few modifications. Congress should consider revising the provision which would transfer the Defense Contract Audit Agency to the proposed Office of the Inspector General as this agency conducts activities which support the procurement function from an operational standpoint. GAO believes that no modifications are needed with regard to the other agencies covered by the legislation.
