§ 5. Semiannual reports; transmittal to Congress; availability to public; immediate report on serious or flagrant problems; disclosure of information; definitions

(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 operations of such establishment disclosed by such activities during the reporting period;
(2) 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);
(3) an identification of each significant recommendation described in previous semiannual reports on which corrective action has not been completed;
(4) a summary of matters referred to prosecutive authorities and the prosecutions and convictions which have resulted;
(5) a summary of each report made to the head of the establishment under section 6 (b)(2) during the reporting period;
(6) a listing, subdivided according to subject matter, of each audit report, inspection reports,[1] and evaluation reports [1] 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;
(7) a summary of each particularly significant report;
(8) 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—
(A) for which no management decision had been made by the commencement of the reporting period;
(B) which were issued during the reporting period;
(C) for which a management decision was made during the reporting period, including—
(i) the dollar value of disallowed costs; and
(ii) the dollar value of costs not disallowed; and
(D) for which no management decision has been made by the end of the reporting period;
(9) 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—
(A) for which no management decision had been made by the commencement of the reporting period;
(B) which were issued during the reporting period;
(C) for which a management decision was made during the reporting period, including—
(i) the dollar value of recommendations that were agreed to by management; and
(ii) the dollar value of recommendations that were not agreed to by management; and
(D) for which no management decision has been made by the end of the reporting period;
(10) a summary of each audit report, inspection reports,[1] and evaluation reports [1] 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;
(11) a description and explanation of the reasons for any significant revised management decision made during the reporting period;
(12) information concerning any significant management decision with which the Inspector General is in disagreement;
(13) the information described under section 05(b) [2] of the Federal Financial Management Improvement Act of 1996;
(14)
(A) an appendix containing the results of any peer review conducted by another Office of Inspector General during the reporting period; or
(B) 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;
(15) 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; and
(16) 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.
(b) 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 such head to the appropriate committees or subcommittees of the Congress within thirty days after receipt of the report, together with a report by the head of the establishment containing—
(1) any comments such head determines appropriate;
(2) statistical tables showing the total number of audit reports, inspection reports, and evaluation reports and the dollar value of disallowed costs, for reports—
(A) for which final action had not been taken by the commencement of the reporting period;
(B) on which management decisions were made during the reporting period;
(C) for which final action was taken during the reporting period, including—
(i) the dollar value of disallowed costs that were recovered by management through collection, offset, property in lieu of cash, or otherwise; and
(ii) the dollar value of disallowed costs that were written off by management; and
(D) for which no final action has been taken by the end of the reporting period;
(3) 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—
(A) for which final action had not been taken by the commencement of the reporting period;
(B) on which management decisions were made during the reporting period;
(C) for which final action was taken during the reporting period, including—
(i) the dollar value of recommendations that were actually completed; and
(ii) the dollar value of recommendations that management has subsequently concluded should not or could not be implemented or completed; and
(D) for which no final action has been taken by the end of the reporting period; and
(4) 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) a list of such audit reports and the date each such report was issued;
(B) the dollar value of disallowed costs for each report;
(C) the dollar value of recommendations that funds be put to better use agreed to by management for each report; and
(D) an explanation of the reasons final action has not been taken with respect to each such audit report,
except that such statement may exclude such 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 shall identify the number of reports in each category so excluded.
(c) Within sixty days of the transmission of the semiannual reports of each Inspector General to the Congress, the head of each establishment shall make copies of such 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 the Congress, the head of each establishment shall make copies of such report available to the public upon request and at a reasonable cost.
(d) 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 such establishment. The head of the establishment shall transmit any such report to the appropriate committees or subcommittees of Congress within seven calendar days, together with a report by the head of the establishment containing any comments such head deems appropriate.
(e)
(1) Nothing in this section shall be construed to authorize the public disclosure of information which is—
(A) specifically prohibited from disclosure by any other provision of law;
(B) 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
(C) a part of an ongoing criminal investigation.
(2) 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.
(3) 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 Act shall be construed to authorize or permit the withholding of information from the Congress, or from any committee or subcommittee thereof.
(f) As used in this section—
(1) the term “questioned cost” means a cost that is questioned by the Office because of—
(A) an alleged violation of a provision of a law, regulation, contract, grant, cooperative agreement, or other agreement or document governing the expenditure of funds;
(B) a finding that, at the time of the audit, such cost is not supported by adequate documentation; or
(C) a finding that the expenditure of funds for the intended purpose is unnecessary or unreasonable;
(2) 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;
(3) 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;
(4) 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—
(A) reductions in outlays;
(B) deobligation of funds from programs or operations;
(C) withdrawal of interest subsidy costs on loans or loan guarantees, insurance, or bonds;
(D) costs not incurred by implementing recommended improvements related to the operations of the establishment, a contractor or grantee;
(E) avoidance of unnecessary expenditures noted in preaward reviews of contract or grant agreements; or
(F) any other savings which are specifically identified;
(5) 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 such findings and recommendations, including actions concluded to be necessary; and
(6) the term “final action” means—
(A) 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
(B) in the event that the management of an establishment concludes no action is necessary, final action occurs when a management decision has been made.


[1] So in original. Probably should be singular.

[2] See References in Text note below.