Costs of FBI Undercover Operations

GAO discussed its report on the costs of Federal Bureau of Investigation (FBI) undercover operations. In its report, GAO attempted to determine the indirect and direct total costs of these operations. Without access to sensitive undercover cost and investigative data, GAO was neither able to determine the total cost of FBI undercover activities nor independently verify the accuracy of FBI cost data. GAO noted that, even with access to data, the task would have been difficult because undercover operations costs do not include FBI personnel costs or litigation and settlement costs of lawsuits. For fiscal years 1979 through 1981, FBI spent about $10.8 million for identifiable undercover operations expenses. GAO noted that litigation and settlement costs are still being incurred and that one of the liability agreements established an unlimited contingent liability for the Government. GAO commented that such agreements must limit the amount of the Government's liability to not violate the law and FBI policies and procedures. Regarding accounting controls, GAO stated that they conform to the design of the FBI accounting system which GAO previously approved.