Summary: GAO testified on: (1) the President's Commission on Executive Exchange Program which promotes federal government and private sector understanding and cooperation in temporary exchanges of executives; and (2) H.R. 3002, which proposes to allow acceptance of voluntary services from some private sector participants in the program. GAO identified several shortcomings in the Commission's conflict of interest policies and procedures. Under the program: (1) private sector executives are nominated to spend 1 year with a government agency and government executives are nominated to spend 1 year with a private sector firm; (2) there are various seminars and conferences designed to inform the executives of current domestic and international issues; and (3) the host organization pays the salary of the visiting executive but, because federal salary levels are far below those of most private sector executives, some executives do not find the program's benefits worth the salary cuts. H.R. 3002 provides a 3-year experimental period in which the employers of up to 10 of the private sector participants would pay their own executives' salaries. It is not known how many private sector employers would be willing to pay their executives' salaries and the government employees' salaries, and it would also be difficult to determine which 10 private sector participants would continue to be paid. Allowing private sector companies to pay the salaries of their executives participating in the exchange program could give the appearance of a potential conflict of interest; however, GAO found that, as a result of its recommendations, the Commission has established new policies and procedures to ensure that preliminary conflict of interest reviews are made before the executives begin their assignments. GAO believes that the change to allow companies to pay all or part of their executives' salaries may be appropriate and suggested that H.R. 3002 be amended to: (1) eliminate the restriction on the number of executives who could participate in the experimental program; (2) allow companies to pay the difference between the government and private sector salaries rather than paying the entire salary amount; (3) clarify that the private sector continue to pay the salaries of federal executives who participate in the program; and (4) specify that the private sector employers and the government pay relocation, travel, and transportation allowances for their respective participants in the program.
