Summary: During recent six-month periods audited by GAO, three independent counsels reported spending $5.7 million--$2.9 million by Arlin M. Adams, $2.8 million by Lawrence E. Walsh, and $27,000 by an individual whose identity is sealed by court order. GAO found the reported expenditures to be reliable. In an October 1992 report (GAO/AFMD-93-1), GAO found several serious internal control weaknesses at independent counsels' offices and at the Administrative Office of the U.S. Courts, which handles disbursements and accounting for independent counsels. These weaknesses included inadequate procedures to ensure that expenditures were charged properly and inadequate segregation of duties. In its current audit, GAO discovered many of the same weaknesses, along with questionable expenditures for pay and travel. The independent counsels and the Administrative Office of the U.S. Courts have begun taking steps to bolster controls and ensure compliance with laws and regulations. These actions include increasing segregation of duties and discontinuing some kinds of expenditures that GAO considers inconsistent with laws and regulations. Future GAO audits will review these measures to determine their success in resolving the problems.
