Hon. JOHN E. Moss, EXHIBIT VIII-A COMPTROLLER GENERAL OF THE UNITED STATES, Washington. Chairman, Special Government Information Subcommittee, Committee on Government Operations, House of Representatives. DEAR MR. CHAIRMAN: During the hearings before your subcommittee on November 13, 1958, Mr. Max Golden, Air Force General Counsel, testified that the Department of Defense very seriously disputes statements made in our presentation during hearings on November 12, that inspection reports of the Inspector General, Department of the Army, are available to the General Accounting Office. We have prepared the attached report and supporting information which should clarify the matter. It is requested that this report and information be included in the record of hearings held by your subcommittee. Sincerely yours, Comptroller General of the United States. GAO ACCESS TO INSPECTION REPORTS OF THE DEPARTMENT OF THE ARMY INSPECTOR GENERAL Our dealings with the Department of the Army on this problem were initially formalized through an exchange of letters with the Honorable Frank Pace, Jr., Secretary of the Army, under dates of February 11, 1952 (appendix A), and February 27, 1952 (appendix B). Arrangements with the Department of the Army prior to directive of August 20, 1957 Under the liaison arrangement established in this exchange of letters, a channel was maintained for direct personal communications between the designated liaison officers for the purpose of exchanging timely information regarding deficiencies or suspicions in connection with procurement programs or other phases of Army activities. An informal working arrangement was developed whereby, on request, reports and underlying data relating to administrative inspection activities of the Inspector General were made available to the GAO liaison officer. Matters dealt with were primarily in the area of procurement because of the major concern of both the GAO and the Inspector General with deficiencies in that area. Material requested by the General Accounting Office was made available for examination in the Office of the Inspector General. This liaison operated in a generally satisfactory manner during our review of ordnance procurement activities, which was completed in 1955. Events leading up to issuance of Department of the Army directive of August 20, 1957 On October 9, 1956, we advised the Secretary of the Army of our intention to conduct a comprehensive audit of the Army Ordanance Tank-Automotive Command and requested his cooperation in making available all documents, records, and reports, including those of all internal review organizations. On December 19, 1956, the Secretary of the Army refused us access to internal audit reports or any related working papers until responsible staff and operating officials had formulated plans for implementing recommendations or stated reasons why corrective action was not taken. ance. On February 7, 1957, we advised the Secretary of the Army that our responsibility by law to give due regard to internal audit and control and related administrative practices included all management evaluations and internal reviews, regardless of the organizational units responsible for their performFurther, we indicated that we could not agree that audit reports and work papers, as well as other books, documents, papers, and records, should not be made available until after corrective action had been taken and clearance had been granted by the Secretary's Office. A copy of this letter was forwarded to the Secretary of Defense by letter dated February 18, 1957. On February 28, 1957, the Secretary of the Army advised us of his desire to assist in every way possible to accomplish our mission, and suggested that we contact the Acting Assistant Secretary of the Army (Financial Management) to the end that procedures satisfactory to this Office could be incorporated in regulations of the Department of the Army. After numerous meetings between representatives of this Office and representatives of the Secretary of Defense and the Secretary of the Army during which satisfactory agreement could not be reached, we advised the chairman of the Senate Committee on Government Operations regarding the problem on August 13, 1957. On August 15, 1957, the chairman, Senate Committee on Government Operations, wrote to the Secretary of Defense requesting advice regarding the matters raised by this Office in order to make a determination as to whether it would be necessary to hold hearings on the problem. On August 19, 1957, we met again with officials of the Department of Defense and the Department of the Army to discuss a proposed directive to be issued by the Department of the Army on our access to records. This directive made provision for our accessibility to all documents, papers, records, and reports, including those prepared by internal review organizations on installations and activities of the Department of the Army with the exception of the provisions of paragraph 8 of the proposed guidelines, as follows: "8. Budgets for any future fiscal year will not be released. Reports of nonArmy agencies (including FBI reports) should not be released unless the written consent of such agency has been obtained. Summaries of the facts set forth in investigation reports1 of Inspector General and of Criminal Investigative Division reports should, upon request, be prepared and furnished. If any question should arise concerning access to the reports themselves, the matter will be immediately referred to the Assistant Secretary of the Army (FM)." . Representatives of the Department of Defense and the Department of the Army assured us that all inspection, survey, and internal review types of reports, as distinguished from the investigative type, would be readily available to our representatives under the directive to be issued by the Department of the Army. It was further indicated that the Department of Defense would make this procedure uniform throughout the three military departments. On August 20, 1957, we received a letter from the Assistant Secretary of Defense (Comptroller) transmitting a copy of memorandum for the Chief of Staff and guidelines relative to General Accounting Office comprehensive audits. On August 21, 1957, we informed the Assistant Secretary of Defense (Comptroller) that we were glad that the matter had been satisfactorily settled, and reiterated our understanding that the Department of Defense intended to issue an overall directive covering our access to records which would follow the pattern established in the case of the Department of the Army. Access to inspection reports after issuance of Department of the Army directive of August 20, 1957 The directive was distributed throughout the Department of the Army by a cover letter (appendix C) dated September 11, 1957, signed by the Adjutant General. The covering letter of the Adjutant General pointed out specifically that as a matter of Department of the Army policy, upon request, GAO was to have access to (a) internal audit reports and related working papers and (b) records and data pertaining to installations or activities of the Department of the Army. We have had no refusal of our requests for information or inspection reports since the issuance and distribution of the Department of the Army directive. Some of the Inspector General's inspection reports that we have had access to during the preceding year are as follows: We have not been advised of any change in the Army's position to the present date as a result of the Department of Defense Directive 7650.1, issued July 9, 1958. Copies of the correspondence referred to herein, other than appendixes A, B, and C, attached herewith, have been previously furnished the subcommittee. A chronology of correspondence relating to GAO's access to Department of the Army records is attached as appendix D. APPENDIX A DEPARTMENT OF THE ARMY, Washington, D. C., February 11, 1952. The honorable the COMPTROLLER GENERAL OF THE UNITED STATES. DEAR MR. COMPTROLLER GENERAL: In the enclosed Department of the Army Letter, AGAO-S 333 (30 Nov. 51) IG-M, 3 December 1951, subject: Coordination of Administrative Inspection Activities by the Inspector General, I have charged the Inspector General of the Army with the responsibility of coordinating the administrative inspection activities of the Army in the continental United States which have the purpose of assuring that: (a) The Army receives full value for expenidtures made in business transactions. (b) The business of the Army is conducted in conformity with law and regulation. (c) Inefficiency and fraud on the part of representatives of the Army, both military and civilian are promptly detected and corrected. In order that effective use within the Army Establishment may be made of the facilities of the General Accounting Office in connection with the aforementioned responsibilities, and pursuant to our conversation on this subject, I have designated Lt. Col. Floyd R. Gilfoil, Jr., IG, Office of the Inspector General, as the individual responsible for the maintenance of liaison with your Office. It is requested that you designate an officer with whom Lieutenant Colonel Gilfoil can establish a working relationship. It is also requested that I be permitted to extend this system to the field so that the six continental Army commanders may require their inspectors general to establish liaison with the branch offices of the General Accounting Office which are located near the continental Army headquarters. The obligations of these Army liaison officers would be to establish and maintain a channel of direct personal communication between the two agencies for the purpose of exchanging timely information regarding deficiencies or suspicions thereof found to exist with civilian contractors or military agencies who are concerned with Department of the Army procurement programs, or with other phases of Army activities. Sincerely yours, AGAO-S 333 (30 Nov 51) IG-M. AGAO-C. FRANK PACE, Jr., Secretary of the Army. DEPARTMENT OF THE ARMY, OFFICE OF THE ADJUTANT GENERAL, Subject: Coordination of administrative inspection activities by the Inspector General. To: Comptroller of the Army (Attention: Audit Division). Assistant Chiefs of Staff, GSUSA. Chief of Finance, SSUSA. Chief, National Guard Bureau, SSUSA. Chiefs of Technical Services. The Adjutant General. The Provost Marshal General. Commanding Generals: Continental Armies. Military District of Washington. 1. The Inspector General of the Army is charged with the responsibility of coordinating the administrative inspection activities of the Army in the continental United States which have the purpose of assuring that: 40377 0-59-pt. 1-6 (a) The Army receives full value for expenditures made in business transactions. (b) The business of the Army is conducted in conformity with law and regulation. (c) Inefficiency and fraud on the part of representatives of the Army, both military and civilian, are promptly detected and corrected. 2. In the discharge of the foregoing responsibilities, the Inspector General of the Army will maintain the current inspection systems under continuous review to verify that no gaps exist therein and that the responsibilities for the making of inspections and the objectives thereof are clearly defined and thoroughly understood throughout the Army. He will further verify that evidence of fraud and culpable mismanagement is systematicaly sought and, when obtained, is acted upon promptly by competent authority. 3. In connection with the foregoing the Inspector General of the Army is authorized direct communication with major commands, the administrative and technical services and the Army Audit Agency. APPENDIX B B-108065 COMPTROLLER General of THE UNITED STATES, The honorable the SECRETARY OF THE ARMY. MY DEAR MR. SECRETARY: Your letter dated February 11, 1952, relating to the "Coordination of Administrative Inspection Activities by the Inspector General," states that you have designated Lt. Col. Floyd R. Gilfoil, Jr., IG, Office of the Inspector General, as the individual responsible for the maintenance of liaison with my Office. At your request in that letter, I am designating Mr. Robert L. Long, Assistant Director of Audits, as the liaison officer for survey and audit matters and Mr. Robert L. Chaney, Office of Investigations, for investigations and investigative survey matters, to act as officers responsible for maintaining liaison with the Office of the Inspector General. I understand that by means of this liaison a channel for direct personal communication between the Inspector General's department and the General Accounting Office will be established for the purpose of exchanging timely information regarding deficiencies or suspicions thereof found to exist with civilian contractors, or other agencies concerned with the procurement programs of the Department of the Army, or with other phases of Army activities. It is my suggestion that these officers work out jointly whatever relationships may be found necessary with respect to the extension of liaison to the field offices of the General Accounting Office and the continental Army commanders with a view to accomplishing these same objectives. It is hoped that these liaison activities can be maintained in as informal a manner as possible consistent with the proper conduct of the respective responsibilities of the Department of the Army and this Office with a view to greater effectiveness in the dayto-day conduct of assigned duties. This is not, however, to limit the normal activities of the Department of the Army or this Office where official responsibilities may be concerned. I wish to express my gratification in the cooperative attitude displayed in your letter and you may be assured that the representatives of the General Accounting Office will carry out their liaison functions in this same cooperative spirit. Sincerely yours, LINDSAY C. WARREN, Comptroller General of the United States. APPENDIX C DEPARTMENT OF THE ARMY, OFFICE OF THE ADJUTANT GENERAL, Subject: General Accounting Office expanded audit program. 1. The enclosed memorandum, with its attachment, sets forth the policy with respect to granting representatives of the General Accounting Office, upon request, access to (a) internal audit reports and related working papers and (b) records and data pertaining to installations or activities of the Department of the Army. 2. Permanent directive will be issued at a subsequent date. By Order of Wilber M. Brucker, Secretary of the Army: HERBERT M. JONES, Distribution: Office, Secretary of the Army. The Inspector General. Deputy Chief of Staff for Personnel. Deputy Chief of Staff for Logistics. Chief of Finance. Chief of Information. Chief, National Guard Bureau. The Adjutant General. The Provost Marshal General. Chief of Chaplains. Heads of Technical Staff. Commanders in Chief: U. S. European Command, U. S. Army Element. U. S. Army, Europe. U. S. Army, Pacific. Commanding Generals: U. S. Army, Alaska. U. S. Army, Caribbean. U. S. Army, Japan, and United Nations Command and Eighth Army (Rear). U. S. Army Forces, Antilles and Military District of Puerto Rico. U. S. Army, Ryukyu Islands/IX Corps. U. S. Army, Southern European Task Force. U. S. Army Air Defense Command. U. S. Continental Army Command. Zone of Interior Armies. Military District of Washington, U. S. Army. Superintendent, U. S. Military Academy. |