Executive Orders, Memorandums & Appointments, March 26, 1981

Executive Order 12301 -- Integrity and Efficiency in Federal Programs

March 26, 1981

By the authority vested in me as President by the Constitution and statutes of the United States of America, and in order to coordinate and implement Government policies with respect to integrity and efficiency in Federal programs, it is hereby ordered as follows:

Section 1. Establishment of the President's Council on Integrity and Efficiency. (a) There is established as an interagency committee the President's Council on Integrity and Efficiency.

(b) The Council shall be composed of the following members:

(1) The Deputy Director of the Office of Management and Budget who shall be the Chairman of the Council;

(2) The Deputy Attorney General;

(3) The Director of the Office of Personnel Management;

(4) The Executive Assistant Director of Investigations of the Federal Bureau of Investigation;

(5) Inspector General, Department of Energy;

(6) Inspector General, Department of Agriculture;

(7) Inspector General, Department of Housing and Urban Development;

(8) Inspector General, Department of Labor;

(9) Inspector General, Department of Transportation;

(10) Inspector General, Veterans Administration;

(11) Inspector General, Department of Health and Human Services;

(12) Inspector General, Department of Education;

(13) Inspector General of the Department of State and the Foreign Service;

(14) Inspector General, Department of Commerce;

(15) Inspector General, Department of Interior;

(16) Inspector General, Community Services Administration;

(17) Inspector General, Environmental Protection Agency;

(18) Inspector General, General Services Administration;

(19) Inspector General, National Aeronautics and Space Administration;

(20) Inspector General, Small Business Administration;

(21) A designee of the Secretary of the Treasury;

(22) A designee of the Secretary of Defense, and

(23) A designee of the Director of the United States International Development Cooperation Agency.

(c) The Chairman shall, from time to time, invite the following to participate in the meetings of the Council:

(1) The Comptroller General of the United States, and

(2) The Postmaster General of the United States.

Sec. 2. Functions of the Council. (a) The Council shall develop plans for coordinated government-wide activities which attack fraud and waste in government programs and operations.

(b) In order to ensure coordinated relationships between Federal, State and local government agencies, and nongovernment entities with respect to all matters relating to the promotion of economy and efficiency, the Council shall develop standards for the management, operation, and conduct of inspector general-type acitivities.

(c) Policies shall be developed by the Council which will ensure the establishment of a corps of well-trained and highly skilled auditors and investigators.

(d) The Council shall develop interagency audit and investigation programs and projects to deal efficiently and effectively with those problems concerning fraud and waste which exceed the capability or jurisdiction of an individual agency. The Council will recognize the pre-eminent role of the Department of Justice in matters involving law enforcement and litigation.

(e) The Council membership shall, to the extent of their own authority to do so, implement those coordinated plans, standards, policies, programs, and projects, (1) in order to conduct and supervise audits and investigations relating to programs and operations of the Government, and (2) in order to promote economy, efficiency, and effectiveness in the administration of programs and operations of the Government, as well as to detect fraud and abuse in such programs and operations.

(f) The creation and operation of the Council shall not interfere with existing lines of authority and responsibility in the departments and agencies.

Sec. 3. Responsibilities of the Chairman. (a) The Chairman shall, in consultation with the members of the Council, establish procedures for the Council; and, he shall establish the agenda for Council activities.

(b) The Chairman shall, on behalf of the Council, report to the President on the activities of the Council. The Chairman shall advise the Council with respect to the reaction of the President on the Council's activities.

(c) The Chairman shall provide agency heads with summary reports of the activities of the Council.

(d) The Chairman shall establish such committees of the Council, including an executive committee, as he deems necessary or appropriate for the efficient conduct of Council functions. Committees of the Council may act for the Council in those areas that affect the membership of the committee.

(e) The Chairman shall be supported by the Associate Director for Management of the Office of Management and Budget who shall advise and assist the Chairman in the execution of the entire range of responsibilities set forth above.

Sec. 4. Coordinating Conference. (a) There is established as an interagency committee the Coordinating Conference of the President's Council on Integrity and Efficiency.

(b) The Conference shall be composed of the Chairman of the Council and one representative of each Executive agency not represented on the Council. The head of each such agency shall designate as the agency's representative the official who is responsible for coordinating the agency's efforts to eliminate fraud and waste in the agency's programs and operations.

(c) The Chairman shall convene meetings of the Conference at least quarterly. The Chairman provide for the dissemination to the Conference of appropriate information on the activities of the Council, in order to enable the Conference membership, to the extent of their own authority to do so, to implement the coordinated plans, standards, policies, programs, and projects developed by the Council.

Sec. 5. Administrative Provisions. (a) The Director of the Office of Management and Budget shall provide the Council and the Conference with such administrative support as may be necessary for the performance of the functions of the Council and the Conference.

(b) The head of each agency represented on the Council or the Conference shall provide its representative with such administrative support as may be necessary, in accordance with law, to enable the agency representative to carry out his responsibilities.

Ronald Reagan

The White House,

March 26, 1981.

[Filed with the Office of the Federal Register, 3:34 p.m., March 26, 1981]

Memorandum on the Reduction of Fraud and Waste in Federal Programs

March 26, 1981

Memorandum for

The Secretary of State

The Secretary of the Treasury

The Secretary of Defense

The Attorney General

The Secretary of the Interior

The Secretary of Agriculture

The Secretary of Commerce

The Secretary of Labor

The Secretary of Health and Human Services

The Secretary of Housing and Urban Development

The Secretary of Transportation

The Secretary of Energy

The Secretary of Education

The Director of the Community Services Administration

The Administrator of the Environmental Protection Agency

The Administration of General Services

The Director of the United States International Development Cooperation Agency

The Director of the Office of Management and Budget

The Director of the Office of Personnel Management

The Administrator of the National Aeronautics and Space Administration

The Administrator of the Small Business Administration

The Administrator of Veterans Affairs

Subject: Government-Wide Anti-Fraud and Waste Efforts

The reduction of fraud and waste in all Federal programs is a major commitment and priority of my Administration. Today, I am establishing, by Executive Order, the President's Council on Integrity and Efficiency to focus and improve our efforts to deal with the problem. The Deputy Director of the Office of Management and Budget will chair this Council which will include all of the statutory Inspectors General and other key officials.

The commitment to reduce fraud and waste cannot be met simply by appointing Inspectors General and establishing a Presidential Council. Each of you is responsible for taking the initiative to reduce fraud and waste wherever they are found in the programs which you administer.

The establishment of this Council is an integral part of a broader plan to attack fraud, waste and inefficiency in Federal programs. This plan will involve a combination of key officials and organizations, coordinating mechanisms, and priority projects operating under active OMB leadership on my behalf.

I expect each of you to provide the necessary support and cooperation to assure that our objective is accomplished. One specific action I am asking you to take is to designate an individual at the Assistant Secretary level or higher who will have the responsibility for following up on the recommendations of your Inspector General and the General Accounting Office.

Ronald Reagan

Memorandum on the Reduction of Fraud and Waste in Federal Programs

March 26, 1981

Memorandum for the Heads of Departments and Agencies

Subject: Government-Wide Anti-Fraud and Waste Efforts

The reduction of fraud and waste in the operation of all Federal programs is a major commitment and priority of my Administration. Today, I am establishing by Executive Order, the President's Council on Integrity and Efficiency to focus and improve our efforts to deal with the problem. The Deputy Director of the Office of Management and Budget will chair this Council which will include all of the statutory Inspectors General and other key officials.

The commitment to reduce fraud and waste cannot be limited to those departments and agencies where statutory IGs have been established. I have asked the Chairman of the Council to ensure that other departments and agencies are actively involved in this most important undertaking. The Executive Order directs the Chairman to convene all of the agencies not on the Council at least four times a year to share information on Council policy initiatives.

The establishment of this Council is an integral part of a broader plan to attack fraud, waste and inefficiency in Federal programs. This plan will involve a combination of key officials and organizations, coordinating mechanisms, and priority projects operating under active OMB leadership on my behalf.

I expect each of you to provide the necessary support and cooperation to assure that our objective is accomplished. One specific action I am asking you to take is to designate a top level individual who will have the responsibility for following up on the recommendations of your official who is responsible for coordinating efforts to eliminate fraud and waste and the recommendations of the General Accounting Office.

Ronald Reagan

Appointment of Six Inspectors General

March 26, 1981

The President announced today the appointment of six Inspectors General for Government departments and agencies. Five of the six have previously served as Inspectors General. Three of those appointed today will resume their positions at the same agency as before and two will be in different agencies.

The appointments are:

Robert L. Brown as Inspector General of the Department of State and the Foreign Service. Mr. Brown is a retired Foreign Service officer who has been recalled to serve as Inspector General of the Department of State and the Foreign Service under existing authority. The Secretary has nominated him to fill this position, with the advice and consent of the Senate, under the provisions of the New Foreign Service Act. Prior to his retirement in 1980, Mr. Brown served as a senior inspector in the Office of the Inspector General. When Secretary of State Haig was Supreme Allied Commander in Europe, Mr. Brown was his political adviser. He served Secretaries Rusk and Rogers as Deputy Executive Secretary of the Department. Among his Foreign Service assignments, Mr. Brown has served as Deputy Director of Personnel, economic counselor to the Republic of China, and has served in Japan, Morocco, Belgium, and New Caledonia. Mr. Brown graduated from Syracuse University and has done graduate work at Northwestern and George Washington Universities. In 1962 - 63 he attended the State Department's senior seminar in foreign policy. He holds the Secretary of State's Superior Honor Award and the Secretary of Defense's Civilian Defense Medal. Born in Dayton, Ohio, in 1920, Mr. Brown now resides in the Washington, D.C., metropolitan area with his wife, Marion Jean. They have one son, a Washington businessman.

Paul R. Boucher as Inspector General of the Small Business Administration. Mr. Boucher was born April 13, 1942, in Cambridge, Mass. He received a B.S. from Merrimack College in 1963 and a J.D. from Suffolk University Law School in 1969. From 1964 to 1970, Mr. Boucher was a special agent and assistant senior resident agent for U.S. Naval Intelligence in Boston. From 1970 to 1972, he was staff assistant for legal matters at Naval Investigative Headquarters in Alexandria, Va. From 1972 to 1974, he was a trial attorney with the Criminal Division of the Justice Department. From 1974 to 1975, he was Assistant General Counsel of the U.S. Government Printing Office. From 1975 to 1979, he was Deputy Section Chief of the General Crimes Section at the Justice Department's Criminal Division. In that capacity, he was selected to organize and direct task forces created by the Attorney General to investigate allegations of violations of Federal criminal law by United States intelligence agencies.

Charles L. Dempsey as Inspector General of the Department of Housing and Urban Development. Mr. Dempsey was born June 7, 1928, in Morristown, N.J. He received a B.S. from Georgetown University in 1960. He served in the U.S. Army in 1952 and 1953. He joined the Department of Housing and Urban Development in 1968, where he served as Acting Director of Investigation (1970 - 1972), Assistant Inspector General for Administration (1972 - 1975), Acting Inspector General (1975), and Assistant Inspector General for Investigation (1975 - 1977). From 1977 to 1979, he was Inspector General of the Department, serving on a nonstatutory basis.

Thomas F. McBride as Inspector General of the Department of Labor. He previously was the Inspector General at the Department of Agriculture. Mr. McBride was born February 8, 1929, in Elgin, Ill. Hr received a B.A. from New York University in 1952 and an LL.B. from Columbia Law School in 1956. He served in the U.S. Army from 1946 to 1947. From 1956 to 1959, he was assistant district attorney of New York County, and from 1959 to 1960, he was assistant counsel to the New York State Commission on Government Operations of the City of New York. In 1960 and 1961 he was an attorney and supervisory investigator for the Labor Department, and from 1961 to 1965, he was a trial attorney for the Justice Department. From 1965 to 1968, Mr. McBride was Deputy Director of the Peace Corps for the Latin America Region. From 1968 to 1969, he was associate director of the Urban Coalition. In 1969 he was deputy chief counsel to the U.S. House of Representatives Select Committee on Crime. In 1970 he was chief of the Center for Demonstrations and Professional Services of the National Institute of Law Enforcement and Criminal Justice. From 1970 to 1973, he was associate director and staff director of the Police Foundation, a Ford Foundation-funded program to support innovation and experimentation in police and criminal justice services. From 1973 to 1975, McBride was Associate Special Prosecutor with the Watergate Special Prosecution Force. From 1975 to 1977, he was Director of the Bureau of Enforcement at the Civil Aeronautics Board, directing all economic enforcement activities in the field of the U.S. air transport. From 1977 to 1979, he served as Inspector General of the Agriculture Department on a nonstatutory basis.

Frank S. Sato as Inspector General of the Environmental Protection Agency. He previously was Inspector General at the Department of Transportation. Mr. Sato was born March 16, 1929, in Puyallup, Wash. He received a B.A. in accounting from the University of Washington in 1953. From 1953 to 1965, he was with the U.S. Air Force Auditor General's Office, serving in various positions, finally as Chief of the Logistics Audits Division. From 1965 to 1974, he was with the Office of the Assistant Secretary of Defense (Comptroller), serving as Director for Special Activities Audits, Director for Audit Operations, Director for Defense Agencies Audits, and Deputy Comptroller for Audit Operations. From 1974 to 1979, he was Deputy Assistant Secretary of Defense for Audit. He also served as Director of the Defense Audit Service. Mr. Sato has been national president of the Association of Government Accountants and is active in accounting and auditing associations.

James B. Thomas, Jr., as Inspector General of the Department of Education. Mr. Thomas is a career civil servant who came to the Department from the Interstate Commerce Commission (ICC), where he had been Director of the Bureau of Accounts since October 1977. In that post he was responsible for all ICC accounting, auditing, and financial analysis of the country's surface transportation system. In 1971 he worked for the ICC's Bureau of Accounts as an accounting officer, and from 1972 to 1975, he served as Assistant Bureau Director. From 1960 to 1971, he worked at the Department of Housing and Urban Development as an auditor, audit supervisor, audit manager, and Assistant Director for Audit Operations. From 1975 to 1977, he served as HUD's Inspector General. Prior to his Federal service, he was a senior auditor for the State of Florida and, earlier, a junior auditor with the Tallahassee accounting firm of J.D.A. Holley & Co. Mr. Thomas graduated from Florida State University in 1957 with a bachelor of science degree in business administration. He did graduate work in accounting, economics, and finance, and has been a certified public accountant since 1962 and a certified internal auditor since 1973. He is a native of Aucilla, Fla., and currently lives in McLean, Va.

There are 16 statutory Inspectors General, including that of the State Department, which has a slightly different statutory basis. President Reagan announced that the remaining 10 positions will be filled shortly and that previously serving Inspectors General are under consideration for some of those positions.

Shortly after assuming office, the President terminated the appointments of all the incumbent Inspectors General, exercising the prerogative of a newly inaugurated President. He announced at that time that he would seek the most qualified appointees for these important positions and that the former incumbents would be among those considered.

Each of the IG's appointed today has compiled an excellent record of uncovering fraud and other abuses in the programs under their surveillance. In some cases, their investigations have led to criminal indictments, and in all cases they have produced recoveries of moneys falsely expended or other savings.