Memorandum From the President on Federal Programs To Improve Management and Combat Waste and Fraud

Memorandum for the Attorney General, the Director, Office of Management and Budget, the Director, Office of Personnel Management

Subject: Improving Management and Combating Fraud and Waste in Federal Programs

Since the beginning of my Administration I have emphasized the high priority I place on improving the operations of Federal agencies. Implementation of the Civil Service Reform Act and the Inspector General Act provides an opportunity to strengthen our efforts to improve agency management practices and manage the resources of the government well, free of waste, fraud, and inefficiency. I want to seize this opportunity.

In recent months I have asked each of you to assume specific responsibilities which include:
• the Director of OMB providing direction and assistance in implementing the Inspector General legislation and overseeing government-wide efforts to combat fraud, waste, and mismanagement in program operations;
• the Attorney General assuring that the activities of Inspectors General and similar officers are coordinated with other investigative and prosecutorial activities; and
• the Director of OPM working with the Attorney General and the Secretary of the Treasury to improve the training of investigative and audit staffs throughout the Executive Branch.

I believe we should now launch a management improvement program that builds on Civil Service reform and on our other ongoing efforts to improve both management practices and program performance across the entire government. At the same time we should pursue a coordinated anti-fraud and waste campaign that focuses on implementing the Inspector General program. While these two efforts should be organizationally separate, each of you should assure that they complement each other.

EXECUTIVE GROUP TO COMBAT FRAUD AND WASTE IN GOVERNMENT

I am establishing an Executive Group to Combat Fraud and Waste in Government to assure effective implementation of the Inspector General Act of 1978 and other efforts to combat fraud and waste in programs of the Federal Government. The Deputy Attorney General shall serve as Chairman and the Deputy Director of the Office of Management and Budget shall serve as Vice Chairman of the Executive Group. Its membership will consist of the statutory Inspectors General, the Deputy Director of the Office of Personnel Management, and the Special Counsel of the Merit Systems Protection Board, and representatives of the Federal Bureau of Investigation, Internal Revenue Service, and Postal Inspection Service. Other officials should be brought in to work with the Executive Group as appropriate. The Department of Justice and the Office of Management and Budget should provide the necessary staff support.

The responsibilities and functions of the Executive Group include:

• Providing leadership, and formulating policy and operational guidance, to the Inspectors General and other officers of the Executive Branch in combating fraud and waste in government programs, including the development and promotion of:
—programs that prevent and detect fraud and waste in Federal programs;
—procedures to assure that investigations by the Inspectors General and similar officials are coordinated with investigative and prosecutorial activities by law enforcement agencies; and
—improvements in training for audit and investigative personnel.

• Promoting coordinated allocation and direction of audit and investigative resources.

• Studying and seeking to resolve extraordinary problems or issues relating to fraud and waste which are beyond the capacity or authority of the individual executive departments or agencies.

• Developing recommendations for needed legislation and other actions that can be taken to reduce fraud and waste in the Federal Government.

PRESIDENTIAL MANAGEMENT IMPROVEMENT COUNCIL

I am establishing a Presidential Management Improvement Council to support efforts to improve Federal management and program performance and to further the government-wide management improvements envisioned in the Civil Service Reform Act of 1978. The Council shall be co-chaired by the Directors of the Office of Management and Budget and the Office of Personnel Management. Its membership will consist of representatives from Federal agencies, as appropriate, and the private sector, including corporate executive officers and foundation and academic leaders. The Office of Management and Budget and the Office of Personnel Management should provide the necessary staff support for the Council.

The identification of critical management problems for consideration by the Council shall be the joint responsibility of the Office of Management and Budget and the Office of Personnel Management, in consultation with departments and agencies. In addition, I will ask the Council to undertake specific management improvement projects from time to time.

I expect the Council to work cooperatively with the Comptroller General, agency Inspectors General, and senior program management and administrative officials in the departments and agencies. The Council should keep me informed of its activities and bring significant problem areas to my attention.

JIMMY CARTER