5 U.S.C. § 405 — Reports
submitted 4 years ago by Pub. L. 117-286 to r/title-5-GOVERNMENT-ORGANIZATION-AND-EMPLOYEES · 2,695 words · no verdicts yet
This law makes Inspectors General write regular reports about their agency's audits and investigations. Twice a year, each Inspector General must summarize problems, recommendations, and costs to recover. The law also limits when reports can be kept from the public, but never from Congress.
(a) Definitions.
- "Disallowed cost" means a questioned cost that management decided, in a management decision, should not be charged to the government.
- "Final action" means either the completion of everything management concluded, in its management decision, was necessary in response to an audit's findings, or, if management decided nothing was necessary, the moment that decision was made.
- "Management decision" means management's evaluation of an audit's findings and recommendations, and its final decision on how to respond, including any actions it concludes are needed.
- "Questioned cost" means a cost the Office* flags because: (A) it may violate a law, regulation, contract, grant, or other agreement governing how funds are spent; (B) at the time of the audit, it isn't backed by adequate documentation; or (C) spending the money for its intended purpose looks unnecessary or unreasonable.
- "Recommendation that funds be put to better use" means a recommendation that money could be used more efficiently if management acted on it — for example by cutting spending, canceling obligated funds, dropping interest subsidies on loans, guarantees, insurance, or bonds, avoiding costs through recommended improvements, avoiding unnecessary spending flagged before a contract or grant is awarded, or any other identified savings.
- "Senior Government employee" means (A) an executive-branch officer or employee — including a "special Government employee" as defined elsewhere — at or above GS-15 pay, or an equivalent rate of at least 120% of the minimum GS-15 rate, and (B) any commissioned military officer at pay grade O-6 or above.
- "Unsupported cost" means a cost the Office questions because, at the time of the audit, it wasn't backed by adequate documentation.
(b) Semiannual Reports. Each Inspector General* must prepare a report every six months — due by April 30 (covering the prior October 1 through March 31) and October 31 (covering April 1 through September 30). The report must include at least:
(1) significant problems, abuses, and deficiencies found during the period;
(2) the Office's recommendations for fixing them;
(3) earlier significant recommendations that still haven't been fixed;
(4) a summary of matters sent to prosecutors, and the prosecutions and convictions that resulted;
(5) a summary of each report sent to the head of the establishment* under section 406(c)(2) during the period;
(6) a subject-organized list of every audit, inspection, and evaluation report issued in the period, including, where it applies, the dollar value of questioned costs (with unsupported costs broken out) and of "funds put to better use" recommendations;
(7) a summary of each particularly significant report;
(8) statistical tables on the number of reports and dollar value of questioned costs (unsupported costs broken out) across four stages: no management decision yet when the period began; issued during the period; decided during the period (split into disallowed costs and costs not disallowed); and still undecided at period's end;
(9) the same four-stage statistical tables for "funds put to better use" recommendations, split into amounts management agreed to and amounts it didn't;
(10) a summary of every report issued before this period that: (A) still has no management decision by period's end, including its date, title, why it's delayed, and a target timetable; (B) got no comment from the establishment* within 60 days of being provided; or (C) still has unimplemented recommendations, including their combined potential savings;
(11) a description of, and reasons for, any significant revised management decision made during the period;
(12) any significant management decision the Inspector General disagrees with;
(13) the information required by section 804(b) of the Federal Financial Management Improvement Act of 1996;
(14) either the results of any peer review of this Office conducted during the period, or, if none happened, the date of the last one;
(15) unimplemented recommendations from a peer review of this Office;
(16) peer reviews this Inspector General conducted of another office during the period, plus any outstanding recommendations from such reviews, past or present;
(17) statistical tables showing total investigative reports issued, people referred to the Justice Department for prosecution, people referred to state or local prosecutors, and indictments or informations resulting from earlier referrals;
(18) an explanation of how the Office calculated the numbers in item (17);
(19) for each investigation of a senior government employee where misconduct was substantiated: the employee's name (if already public), the facts, the case's status, and — if referred to Justice — the referral date and, if declined, the decline date;
(20) a detailed account of any whistleblower retaliation found, including who retaliated and what consequences, if any, the establishment imposed;
(21) a detailed account of any attempt by the establishment to interfere with the Office's independence — including budget limits meant to constrain it, or resistance to oversight and delayed access to information, with the establishment's stated justification; and
(22) detailed descriptions of each closed inspection, evaluation, or audit, and each closed investigation of a senior employee, that was never disclosed to the public.
(c) Furnishing Semiannual Reports to Head of Establishment and Congress. Each Inspector General sends the report to the establishment head by the same deadlines. The establishment head must forward it to the appropriate congressional committees within 30 days, adding a report that includes: (1) any comments the establishment head thinks appropriate; (2) statistical tables on disallowed costs across four stages (before the period, decided during the period, finalized during the period — split into money recovered versus written off — and still unresolved at period's end); (3) similar tables for "funds put to better use" recommendations, split into money actually saved versus recommendations later deemed unworkable; (4) whether the establishment settled with an employee found to have retaliated against a whistleblower, reported regardless of any confidentiality agreement; (5) information on cases under chapter 38 of title 31, including how many reports investigating officials sent to reviewing officials, what actions followed (with tables on pending and resolved cases, average resolution time, appeals to federal court, and, for reports covering more than 2 cases, how many settled and the total amount recovered), and cases a reviewing official declined to pursue; and (6) for audit reports where management has decided what to do but hasn't finished doing it — excluding reports decided within the last year — a list of the reports and their dates, the dollar value of disallowed costs and of "better use" recommendations for each, and why final action is still pending, except that reports under formal appeal or awaiting a legislative fix can be left off the list, as long as the report states how many were excluded that way.
(d) Reports Available to Public. Within 60 days after the semiannual report reaches Congress, the establishment head must make copies available to the public on request, at a reasonable cost.
(e) Reporting Serious Problems, Abuses, or Deficiencies. If an Inspector General learns of a particularly serious or flagrant problem, abuse, or deficiency, the Inspector General must report it immediately to the establishment head, who must send it to the appropriate congressional committees within 7 calendar days, along with any comments the establishment head wants to add.
(f) Limitation on Public Disclosure of Information.
(1) Nothing in this section allows public disclosure of information that: (A) another law specifically bars from disclosure; (B) an Executive order specifically protects for national defense, national security, or foreign-affairs reasons; or (C) is part of an ongoing criminal investigation.
(2) Despite (1)(C), a report under this section can still disclose information about an ongoing criminal investigation if that information is already part of a public record.
(3) Nothing here lets anyone withhold information from Congress or its committees — except as section 6103(f) of the Internal Revenue Code separately allows.
(4) The information described in (1) can still be given to any Member of Congress on request, subject to any other law that would otherwise block it.
(5) An Office cannot give Congress or the public any information that would reveal a whistleblower's personally identifiable information, unless the whistleblower consents first.
In this section:
The term “disallowed cost” means a questioned cost that management, in a management decision, has sustained or agreed should not be charged to the Government.
The term “final action” means—
the completion of all actions that the management of an establishment* has concluded, in its management decision, are necessary with respect to the findings and recommendations included in an audit report; and
in the event that the management of an establishment concludes no action is necessary, final action occurs when a management decision has been made.
The term “management decision” means the evaluation by the management of an establishment of the findings and recommendations included in an audit report and the issuance of a final decision by management concerning its response to the findings and recommendations, including actions concluded to be necessary.
The term “questioned cost” means a cost that is questioned by the Office* because of—
an alleged violation of a provision of a law, regulation, contract, grant, cooperative agreement, or other agreement or document governing the expenditure of funds;
a finding that, at the time of the audit, the cost is not supported by adequate documentation; or
a finding that the expenditure of funds for the intended purpose is unnecessary or unreasonable.
The term “recommendation that funds be put to better use” means a recommendation by the Office that funds could be used more efficiently if management of an establishment took actions to implement and complete the recommendation, including—
reductions in outlays;
deobligation of funds from programs or operations;
withdrawal of interest subsidy costs on loans or loan guarantees, insurance, or bonds;
costs not incurred by implementing recommended improvements related to the operations of the establishment, a contractor, or grantee;
avoidance of unnecessary expenditures noted in preaward reviews of contract or grant agreements; or
any other savings which are specifically identified.
The term “senior Government employee” means—
an officer or employee in the executive branch (including a special Government employee as defined in section 202 of title 18) who occupies a position classified at or above GS–15 of the General Schedule or, in the case of positions not under the General Schedule, for which the rate of basic pay is equal to or greater than 120 percent of the minimum rate of basic pay payable for GS–15 of the General Schedule; and
any commissioned officer in the Armed Forces in pay grades O–6 and above.
The term “unsupported cost” means a cost that is questioned by the Office because the Office found that, at the time of the audit, such cost is not supported by adequate documentation.
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 6-month periods ending March 31 and September 30. The reports shall include, but need not be limited to—
a description of significant problems, abuses, and deficiencies relating to the administration of programs and operations of such establishment disclosed by such activities during the reporting period;
a description of the recommendations for corrective action made by the Office during the reporting period with respect to significant problems, abuses, or deficiencies identified pursuant to paragraph (1);
an identification of each significant recommendation described in previous semiannual reports on which corrective action has not been completed;
a summary of matters referred to prosecutive authorities and the prosecutions and convictions which have resulted;
a summary of each report made to the head of the establishment* under section 406(c)(2) of this title during the reporting period;
a listing, subdivided according to subject matter, of each audit report, inspection report, and evaluation report issued by the Office during the reporting period and for each report, where applicable, the total dollar value of questioned costs (including a separate category for the dollar value of unsupported costs) and the dollar value of recommendations that funds be put to better use;
a summary of each particularly significant report;
statistical tables showing the total number of audit reports, inspection reports, and evaluation reports and the total dollar value of questioned costs (including a separate category for the dollar value of unsupported costs), for reports—
for which no management decision had been made by the commencement of the reporting period;
which were issued during the reporting period;
for which a management decision was made during the reporting period, including—
the dollar value of disallowed costs; and
the dollar value of costs not disallowed; and
for which no management decision has been made by the end of the reporting period;
statistical tables showing the total number of audit reports, inspection reports, and evaluation reports and the dollar value of recommendations that funds be put to better use by management, for reports—
for which no management decision had been made by the commencement of the reporting period;
which were issued during the reporting period;
for which a management decision was made during the reporting period, including—
the dollar value of recommendations that were agreed to by management; and
the dollar value of recommendations that were not agreed to by management; and
for which no management decision has been made by the end of the reporting period;
a summary of each audit report, inspection report, and evaluation report issued before the commencement of the reporting period—
for which no management decision has been made by the end of the reporting period (including the date and title of each such report), an explanation of the reasons such management decision has not been made, and a statement concerning the desired timetable for achieving a management decision on each such report;
for which no establishment comment was returned within 60 days of providing the report to the establishment; and
for which there are any outstanding unimplemented recommendations, including the aggregate potential cost savings of those recommendations;
a description and explanation of the reasons for any significant revised management decision made during the reporting period;
information concerning any significant management decision with which the Inspector General is in disagreement;
the information described under section 804(b) of the Federal Financial Management Improvement Act of 1996 (Public Law 104–208, §101(f) [title VIII], 31 U.S.C. 3512 note);
an appendix containing the results of any peer review conducted by another Office of Inspector General during the reporting period; or
if no peer review was conducted within that reporting period, a statement identifying the date of the last peer review conducted by another Office of Inspector General;
a list of any outstanding recommendations from any peer review conducted by another Office of Inspector General that have not been fully implemented, including a statement describing the status of the implementation and why implementation is not complete;
a list of any peer reviews conducted by the Inspector General of another Office of the Inspector General during the reporting period, including a list of any outstanding recommendations made from any previous peer review (including any peer review conducted before the reporting period) that remain outstanding or have not been fully implemented;
statistical tables showing—
the total number of investigative reports issued during the reporting period;
the total number of persons referred to the Department of Justice for criminal prosecution during the reporting period;
the total number of persons referred to State and local prosecuting authorities for criminal prosecution during the reporting period; and
the total number of indictments and criminal informations during the reporting period that resulted from any prior referral to prosecuting authorities;
a description of the metrics used for developing the data for the statistical tables under paragraph (17);
a report on each investigation conducted by the Office involving a senior Government employee where allegations of misconduct were substantiated, including the name of the senior government official (as defined by the department or agency) if already made public by the Office, and a detailed description of—
the facts and circumstances of the investigation; and
the status and disposition of the matter, including—
if the matter was referred to the Department of Justice, the date of the referral; and
if the Department of Justice declined the referral, the date of the declination;
a detailed description of any instance of whistleblower retaliation, including information about the official found to have engaged in retaliation; and
what, if any, consequences the establishment actually imposed to hold the official described in subparagraph (A) accountable;
a detailed description of any attempt by the establishment to interfere with the independence of the Office, including—
with budget constraints designed to limit the capabilities of the Office; and
incidents where the establishment has resisted or objected to oversight activities of the Office or restricted or significantly delayed access to information, including the justification of the establishment for such action; and
detailed descriptions of the particular circumstances of each—
inspection, evaluation, and audit conducted by the Office that is closed and was not disclosed to the public; and
investigation conducted by the Office involving a senior Government employee that is closed and was not disclosed to the public.
Semiannual reports of each Inspector General shall be furnished to the head of the establishment involved not later than April 30 and October 31 of each year and shall be transmitted by the head of the establishment to the appropriate committees or subcommittees of the Congress within 30 days after receipt of the report, together with a report by the head of the establishment containing—
any comments the head of the establishment determines appropriate;
statistical tables showing the total number of audit reports, inspection reports, and evaluation reports and the dollar value of disallowed costs, for reports—
for which final action had not been taken by the commencement of the reporting period;
on which management decisions were made during the reporting period;
for which final action was taken during the reporting period, including—
the dollar value of disallowed costs that were recovered by management through collection, offset, property in lieu of cash, or otherwise; and
the dollar value of disallowed costs that were written off by management; and
for which no final action has been taken by the end of the reporting period;
statistical tables showing the total number of audit reports, inspection reports, and evaluation reports and the dollar value of recommendations that funds be put to better use by management agreed to in a management decision, for reports—
for which final action had not been taken by the commencement of the reporting period;
on which management decisions were made during the reporting period;
for which final action was taken during the reporting period, including—
the dollar value of recommendations that were actually completed; and
the dollar value of recommendations that management has subsequently concluded should not or could not be implemented or completed; and
for which no final action has been taken by the end of the reporting period;
whether the establishment entered into a settlement agreement with the official described in subsection (b)(20)(A), which shall be reported regardless of any confidentiality agreement relating to the settlement agreement;
information relating to cases under chapter 38 of title 31, including—
the number of reports submitted by investigating officials to reviewing officials under section 3803(a)(1) of such title;
actions taken in response to reports described in subparagraph (A), which shall include statistical tables showing—
pending cases;
resolved cases;
the average length of time to resolve each case;
the number of final agency decisions that were appealed to a district court of the United States or a higher court; and
if the total number of cases in a report is greater than 2—
the number of cases that were settled; and
the total penalty or assessment amount recovered in each case, including through a settlement or compromise; and
instances in which the reviewing official declined to proceed on a case reported by an investigating official; and
a statement with respect to audit reports on which management decisions have been made but final action has not been taken, other than audit reports on which a management decision was made within the preceding year, containing—
a list of such audit reports and the date each such report was issued;
the dollar value of disallowed costs for each report;
the dollar value of recommendations that funds be put to better use agreed to by management for each report; and
an explanation of the reasons final action has not been taken with respect to each audit report,
except that the statement may exclude any audit reports that are under formal administrative or judicial appeal or upon which management of an establishment has agreed to pursue a legislative solution, but the statement shall identify the number of reports in each category so excluded.
Within 60 days of the transmission of the semiannual reports of each Inspector General to Congress, the head of each establishment shall make copies of the report available to the public upon request and at a reasonable cost. Within 60 days after the transmission of the semiannual reports of each establishment head to Congress, the head of each establishment shall make copies of the report available to the public upon request and at a reasonable cost.
Each Inspector General shall report immediately to the head of the establishment involved whenever the Inspector General becomes aware of particularly serious or flagrant problems, abuses, or deficiencies relating to the administration of programs and operations of the establishment. The head of the establishment shall transmit any such report to the appropriate committees or subcommittees of Congress within 7 calendar days, together with a report by the head of the establishment containing any comments the establishment head deems appropriate.
Nothing in this section shall be construed to authorize the public disclosure of information that is—
specifically prohibited from disclosure by any other provision of law;
specifically required by Executive order to be protected from disclosure in the interest of national defense or national security or in the conduct of foreign affairs; or
a part of an ongoing criminal investigation.
Notwithstanding paragraph (1)(C), any report under this section may be disclosed to the public in a form which includes information with respect to a part of an ongoing criminal investigation if such information has been included in a public record.
Except to the extent and in the manner provided under section 6103(f) of the Internal Revenue Code of 1986 (26 U.S.C. 6103(f)), nothing in this section or in any other provision of this chapter shall be construed to authorize or permit the withholding of information from Congress, or from any committee or subcommittee of Congress.
Subject to any other provision of law that would otherwise prohibit disclosure of such information, the information described in paragraph (1) may be provided to any Member of Congress upon request.
An Office may not provide to Congress or the public any information that reveals the personally identifiable information of a whistleblower under this section unless the Office first obtains the consent of the whistleblower.
Source credit: (Pub. L. 117–286, § 3(b), Dec. 27, 2022, 136 Stat. 4212; Pub. L. 118–159, div. E, title LII, § 5203(e), Dec. 23, 2024, 138 Stat. 2441.)
- 2022Enacted · Pub. L. 117-286 · 136 Stat. 4212
- 2024Amended · Pub. L. 118-159 · 138 Stat. 2441
A history note hasn’t been published yet. The record shows enactment by Pub. L. 117-286 on 2022-12-27.
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