[Note: Nominee responded and the information is contained in the committee's executive files.] 2. If you or your spouse has ever been formally associated with a law, accounting, public relations firm or other service organization, have any of your or your spouse's associates represented, in any capacity, with or without compensation, a foreign government or an entity controlled by a foreign government? If so, please fully describe such relationship. [Note: Nominee responded and the information is contained in the committee's executive files.] 3. During the past ten years have you or your spouse received any compensation from, or been involved in any financial or business transactions with, a foreign government or an entity controlled by a foreign government? If so, please furnish details. [Note: Nominee responded and the information is contained in the committee's executive files.] 4. Have you or your spouse ever registered under the Foreign Agents Registration Act? If so, please furnish details. [Note: Nominee responded and the information is contained in the committee's executive files.] PART F-FINANCIAL DATA All information requested under this heading must be provided for yourself, your spouse, and your dependents. 1. Describe the terms of any beneficial trust or blind trust of which you, your spouse, or your dependents may be a beneficiary. In the case of a blind trust, provide the name of the trustee(s) and a copy of the trust agreement. [Note: Nominee responded and the information is contained in the committee's executive files.] 2. Provide a description of any fiduciary responsibility or power of attorney which you hold for or on behalf of any other person. [Note: Nominee responded and the information is contained in the committee's executive files.] 3. List sources, amounts and dates of all anticipated receipts from deferred income arrangements, stock options, executory contracts and other future benefits which you expect to derive from current or previous business relationships, professional services and firm memberships, employers, clients and customers. [Note: Nominee responded and the information is contained in the committee's executive files.] 4. Have you filed a Federal income tax return for each of the past 10 years? If not, please explain. [Note: Nominee responded and the information is contained in the committee's executive files.] 5. Have your taxes always been paid on time? [Note: Nominee responded and the information is contained in the committee's executive files.] 6. Were all your taxes, Federal, State, and local, current (filed and paid) as of the date of your nomination? [Note: Nominee responded and the information is contained in the committee's executive files.] 7. Has the Internal Revenue Service ever audited your Federal tax return? If so, what resulted from the audit? [Note: Nominee responded and the information is contained in the committee's executive files.] 8. Have any tax liens, either Federal, State, or local, been filed against you or against any real property or personal property which you own either individually, jointly, or in partnership? [Note: Nominee responded and the information is contained in the committee's executive files.] (The committee may require that copies of your Federal income tax returns be provided to the committee. These documents will be made available only to Senators and the staff designated by the chairman. They will not be available for public inspection.) SIGNATURE AND Date I hereby state that I have read and signed the foregoing Statement on Biographical and Financial Information and that the information provided therein is, to the best of my knowledge, current, accurate, and complete. This eighth day of May, 1987. JUNE G. BROWN. Senator BINGAMAN. If you have a statement that you would like to make, please go ahead, and then I will have a few questions. STATEMENT OF JUNE GIBBS BROWN, NOMINEE TO BE Ms. BROWN. Thank you very much. I have a statement for the record, a short one, sir. I only want to say that I look forward to serving in this position. I am very privileged to have been selected for it, and will do my best to serve well in that capacity if confirmed. [The prepared statement of Ms. Brown follows:] PREPARED STATEMENT BY JUNE GIBBS BROWN Mr. Chairman, members of the committee, I have a brief formal prepared statement. However, I would like to note that I am honored to have been nominated for this position by the President. I hope to justify his trust in me through strong and reasoned service as the Inspector General of the Department of Defense. As you know, I had the privilege of serving as the Inspector General of the Department of the Interior and the National Aeronautics and Space Administration. I have also served as a career Federal employee and worked in the private sector as an executive of a company that provides service and equipment to the Department of Defense. This combination of government and industry experience will be valuable should I be confirmed. I look forward to leading the experienced and competent team of auditors, investigators, and inspectors which has been assembled by the first Inspector General, Joseph Sherick, and ably led since Mr. Sherick's retirement by the Deputy Inspector General, Derek Vander Schaaf. I would be happy to answer any questions which you or the members of the committee may have. Senator BINGAMAN. That is the kind of brief statement that we ought to have more of around the Senate. Let me ask about an issue that we have taken an interest in here in the committee. In fact, we put some language in the defense authorization report to the legislation this year to deal with the problem of duplicative oversight, including duplicative audits. We have gotten the impression that there is a serious problem there. To date, I think the response that we have gotten is that everyone recognizes the problem but nobody has a solution for it. Is this something that you have had a chance to look into or focus on? I think we will, at some point, be looking to you for ways to deal with that problem. Ms. BROWN. It is a problem that I am concerned about. I have not yet been able, of course, to get into substantive matters. There is an ongoing review of duplicate audits within the Department of Defense. The Office of the Under Secretary of Defense for Acquisition and the Assistant Secretary of Defense for Production and Logistics are working together with the IG office to find out the extent of the problem. It appears at this point that much of what is thought to be duplicative audit coverage are other types of oversight activities, not just audits. The problem still needs to be addressed. It is something that I have discussed with Secretary Weinberger. He expressed concern about that area and asked that I address it once I assume the position of Inspector General. So, I will be going further with that. Senator BINGAMAN. Picking up on Senator Nunn's comments about the differences that you see in your function here in this position from what you have been doing both at NASA and at the Department of the Interior, could you elaborate on that a little bit? What is your perception of the different obstacles that you would face or the different parameters of the job that you are taking on? Ms. BROWN. The contracting function is much more closely aligned with that of NASA than it was with the Department of the Interior, where we were addressing natural resource problems to a great degree. I think the major difference between NASA and the Department of Defense is, of course, size. The Department of Defense is a much larger organization, therefore, the oversight function is much larger. In addition to audit and criminal investigative activity, DOD has an inspection function. I think that it will be a much more challenging management job with the staff of over 1,000 people to give direction and see to it that there is not duplication of efforts. Another difference would be the policy setting responsibility for other audit and investigative activities within the Department of Defense. There are separate units set up to fulfill this function within the Inspector General office. Senator BINGAMAN. As I understand it both in Interior and in NASA, the audit function, there is an effort to weigh the cost of performing audits against the benefits derived, and that tends to dictate the extent of the activity. Is that something that in your view makes sense in the Department of Defense? Should we have some kind of cost benefit analysis of whether or not the number of audits make sense? That seems to be something that is not in place, at least to my knowledge at this point, in the Department of Defense. Ms. BROWN. There is a very careful analysis made of all the audit recoveries, as well as investigative recoveries. That is certainly one indicator as to whether you have the right number of people when you look at cost benefit, when you compare the cost of running such a function with what the recoveries are. I feel it is only one measure of effectiveness. To be truly successful, we want to be sure that there is a significant deterrent effect and that we have taken preventative measures in order to avoid some of the problems that could cause great overruns or excessive costs of various types. If we could avoid the need for recoveries, then we have probably done our job to the optimum, because there would be few, if any problems in the procurement system. Senator BINGAMAN. Let me ask about the issues of congressional involvement. I think Congress is, of course, jealous of its rights to be informed about investigations and audits that have been completed and, also, to be informed on recommendations for changes in rules and statutues that you think are necessary to accomplish the goals that have been set out for your office. Is this something that you feel comfortable with? I think that for the record, those of us here in the Congress would certainly like to be sure that you have no reservation about making that information available to us, as it is essential for policymaking here in Congress. Ms. BROWN. Yes, sir. There is a statutory requirement, of course, to keep the Congress fully informed. That has been my policy in the past, and I would welcome the opportunity to send forward whatever information is useful. Senator BINGAMAN. Senator Warner, we have already started. Would you like to make a statement at this point? Senator WARNER. No, thank you. Senator BINGAMAN. Let me ask you to give a general question, if you would. One of the issues that we have wrestled with here for the last few years is the reorganization of the Defense Department. I would be interested in your thoughts as to the relationship that you have to the Inspectors General and auditors and criminal investigators in the military departments. If you could describe briefly, what you see as your responsibility and authority in dealing with the Inspectors General of the services. Ms. BROWN. The law provides that we provide policy direction and oversight of the various audit and investigative units within the Department. Particular units have been established in the Office of Inspector General that have that specific responsibility. The IG also has both oversight and operating responsibilities for follow-up work which traces each of the recommendations, not only from all the audit units within the departments but also from the GAO audits. There is a very active group that does this very conscientiously. In the inspection area, we do not provide direct oversight to all of the military Inspector General activities within the Department, although the IG, DOD, meets regularly with the other Inspectors General so that they can coordinate and exchange information when it is appropriate. Their mission, the traditional military Inspector General mission, is slightly different than that of the statutory Inspector General in the Department. They mainly study readiness, morale, compliance the traditional roles within the Department, and they work for the command as sort of an extension of that command to be the eyes and ears of the commander, where as we have a responsibility to the Congress and the oversight responsibility as well. Senator BINGAMAN. The DOD General Counsel provides legal advice to the Inspector General, as I understand it. Ms. BROWN. Yes, sir. Senator BINGAMAN. I guess on matters of general law, do you feel compelled to follow the legal advice of the General Counsel on interpretation of DOD statutes and regulations, or what is the relationship that you see between your position and the General Counsel's position? Ms. BROWN. The General Counsel does provide the attorneys that give advice to the Office of the Inspector General. I looked into that and spent some time discussing it with those legal advisors assigned to the office. It appears to have worked very well. I have worked that way at the Department of the Interior with the General Counsel providing legal advice. At NASA, I had my own legal advisors. In both cases it worked fine. To the best of my knowledge at this point, I think that there is an advantage in the current arrangement, in that there are so many other legal issues that are at stake and being considered at any one time in the Department of Defense. The fact that the attorneys serving the OIG have full access to and knowledge of that other material would be very helpful. Senator BINGAMAN. I guess one slightly more pointed question is, if you disagree with the general counsel's legal interpretation of a statute or a DOD directive, what is your understanding as to what controls? Ms. BROWN. I would feel free to get other legal advice. I do not feel confined to using only that source of information. Senator BINGAMAN. Are there any particular procedures or programs that you instituted either at Interior or at NASA that you think ought to be considered for implementation in the DOD Inspector General's Office, anything that comes to mind at this early stage in your duties? Ms. BROWN. In both cases, I had the auditors and investigators work together a little more closely than I think traditionally they have done in the Department of Defense. I think that both can be helpful to the other and enhance the others particular mission. I would like to encourage that in the Department of Defense as well. Senator BINGAMAN. Have you gotten in your work at NASA, into investigations as to the quality of work done by contract personnel on the Space Shuttle Program; is that something that you had responsibility for? Ms. BROWN. Yes. In some cases we certainly did look into that as one aspect of broader audits. Senator BINGAMAN. I will follow up on that after deferring to my colleague. I see that my time is up. Senator WARNER. Mr. Chairman, I think that is a good line of questioning. I am privileged to know the nominee. I think that she is one of the most eminently qualified persons that has even been selected to go into this position. I am pleased Mr. Chairman that you have scheduled this hearing. Go right ahead and continue your line of questioning. It is a good line of questioning. Senator BINGAMAN. Let me just ask as a followup to the issue of investigation of the quality of work. Could you describe in a little more detail what the scope of that investigation was, and whatever you can tell us about it that you think might be applicable to investigating similar issues in the Department of Defense? Ms. BROWN. Are you speaking, sir, of the investigations at NASA? Senator BINGAMAN. Yes. I just wondered if you have had experience there with investigating the quality of work performed by contractors working on the Space Shuttle, if you feel that procedures |