INSPECTOR GENERAL ACT OF 1978 AN ACT To establish Offices of Inspector General within various departments and agencies, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act be cited as the "Inspector General Act of 1978". PURPOSE; ESTABLISHMENT SEC. 2. [5 U.S.C. App.] In order to create independent and objective units (1) to conduct and supervise audits and investigations relating to the programs and operations of the establishments listed in section 11(2); (2) to provide leadership and coordination and recommend policies for activities designed (A) to promote economy, efficiency, and effectiveness in the administration of, and (B) to prevent and detect fraud and abuse in, such programs and operations; and (3) to provide a means for keeping the head of the establishment and the Congress fully and currently informed about problems and deficiencies relating to the administration of such programs and operations and the necessity for and progress of corrective action; there is hereby established in each of such establishments an office of Inspector General. Enacted Oct. 12, 1978, P.L. 95-452, sec. 2, 92 Stat. 1101; amended Oct. 17, 1979, P.L. 96-88, sec. 508(n)(1), 93 Stat. 694; amended December 29, 1981, P.L. 97-113, sec. 705(a)(1), 95 Stat. 1544; amended September 8, 1982, P.L. 97-252, sec. 1117(a)(1), 96 Stat. 750, amended August 16, 1985; P.L. 99-93, sec. 150(a)(1), 99 Stat. 427; amended Aug. 27, 1986, P.L. 99-399, sec.412(a)(1), 100 Stat. 867; amended Oct. 18, 1988, P.L. 100-504, sec. 102(a)(1), 102 Stat. 2515; amended Oct. 25, 1988, P.L. 100-527, sec. 13(h)(1), 102 Stat. 2643. APPOINTMENT AND REMOVAL OF OFFICERS SEC. 3. [5 U.S.C. App.] (a) There shall be at the head of each Office an Inspector General who shall be appointed by the President, by and with the advice and consent of the Senate, without regard to political affiliation and solely on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations. Each Inspector General shall report to and be under the general supervision of the head of the establishment involved or, to the extent such authority is delegated, the officer next in rank below such head, but shall not report to, or be subject to supervision by, any other officer of such establishment. Neither the head of the establishment nor the officer next in rank below such head shall prevent or prohibit the Inspector General from initiating, carrying out, or completing any audit or investigation, or from issuing any subpena during the course of any audit or investigation. (b) An Inspector General may be removed from office by the President. The President shall communicate the reasons for any such removal to both Houses of Congress. (c) For the purposes of section 7324 of title 5, United States Code, no Inspector General shall be considered to be an employee who determines policies to be pursued by the United States in the nationwide administration of Federal laws. (d) Each Inspector General shall, in accordance with applicable laws and regulations governing the civil service (1) appoint an Assistant Inspector General for Auditing who shall have the responsibility for supervising the performance of auditing activities relating to programs and operations of the establishment, and (2) appoint an Assistant Inspector General for Investigations who shall have the responsibility for supervising the performance of investigative activities relating to such programs and operations. Enacted Oct. 12, 1978, P.L. 95-452, sec. 3, 92 Stat. 1101. DUTIES AND RESPONSIBILITIES SEC. 4. [5 U.S.C. App.] (a) It shall be the duty and responsibility of each Inspector General, with respect to the establishment within which his Office is established (1) to provide policy direction for and to conduct, supervise, and coordinate audits and investigations relating to the programs and operations of such establishment; (2) to review existing and proposed legislation and regulations relating to programs and operations of such establishment and to make recommendations in the semiannual reports required by section 5(a) concerning the impact of such legislation or regulations on the economy and efficiency in the administration of programs and operations administered or financed by such establishment or the prevention and detection of fraud and abuse in such programs and operations; (3) to recommend policies for, and to conduct, supervise, or coordinate other activities carried out or financed by such establishment for the purpose of promoting economy and efficiency in the administration of, or preventing and detecting fraud and abuse in, its programs and operations; (4) to recommend policies for, and to conduct, supervise, or coordinate relationships between such establishment and other Federal agencies, State and local governmental agencies, and non-governmental entities with respect to (A) all matters relating to the promotion of economy and efficiency in the administration of, or the prevention and detection of fraud and abuse in, programs and operations administered or financed by such establishment, or (B) the identification and prosecution of participants in such fraud or abuse; and (5) to keep the head of such establishment and the Congress fully and currently informed, by means of the reports required by section 5 and otherwise, concerning fraud and other serious problems, abuses, and deficiencies relating to the administration of programs and operations administered or financed by such establishment, to recommend corrective action concerning such problems, abuses, and deficiencies, and to report on the progress made in implementing such corrective action. (b)(1) In carrying out the responsibilities specified in subsection (a)(1), each Inspector General shall (A) comply with standards established by the Comptroller General of the United States for audits of Federal establishments, organizations, programs, activities, and functions; (B) establish guidelines for determining when it shall be appropriate to use non-Federal auditors; and (C) take appropriate steps to assure that any work performed by non-Federal auditors complies with the standards established by the Comptroller General as described in paragraph (1). (2) For purposes of determining compliance with paragraph (1)(A) with respect to whether internal quality controls are in place and operating and whether established audit standards, policies, and procedures are being followed by Offices of Inspector General of establishments defined under section 11(2), Offices of Inspector General of designated Federal entities defined under section 8F(a)(2), and any audit office established within a Federal entity defined under section 8F(a)(1), reviews shall be performed exclusively by an audit entity in the Federal Government, including the General Accounting Office or the Office of Inspector General of each establishment defined under section 11(2), or the Office of Inspector General of each designated Federal entity defined under section 8F(a)(2). (c) In carrying out the duties and responsibilities established under this Act, each Inspector General shall give particular regard to the activities of the Comptroller General of the United States with a view toward avoiding duplication and insuring effective coordination and cooperation. (d) In carrying out the duties and responsibilities established under this Act, each Inspector General shall report expeditiously to the Attorney General whenever the Inspector General has reasonable grounds to believe there has been a violation of Federal criminal law. Enacted Oct. 12, 1978, P.L. 95-452, sec. 4, 92 Stat. 1102; amended Oct. 18, 1988, P.L. 100-504, sec. 109, 102 Stat. 2529; amended September 21, 1993, P.L. 103-82, sec. 202(g)(5)(A), 107 Stat. 890. REPORTS SEC. 5. [5 U.S.C. App.] (a) Each Inspector General shall, not later than April 30 and October 31 of each year, prepare semiannual reports summarizing the activities of the Office during the immediately preceding six-month periods ending March 31 and September 30. Such reports shall include, but need not be limited to (1) a description of significant problems, abuses, and deficiencies relating to the administration of programs and oper |