Executive Agencies' Employee Cash Awards Program for Disclosure of Fraud, Waste, or Mismanagement

In response to a congressional request, GAO reported the results of its review of 17 executive agencies' implementation of the employee cash awards program for disclosing fraud, waste, or mismanagement. The review was made to: (1) determine the status of the implementation of the awards program; and (2) assess the reasonableness of cost savings claimed for awards made under the program.

As of February 1984, 13 of the agencies had established implementing procedures, and the remaining 4 agencies were processing procedures. In addition, 14 agencies had formally announced the program to their employees. As of February 29, 1984, GAO was notified of five awards made for disclosure of fraud, waste, or mismanagement. The five awards were issued to seven employees, totaled $6,100, and resulted in an estimated savings to the government of about $942,683. The largest award was $3,000 and involved mismanagement in a Veterans Administration program. GAO reviewed the documentation which substantiated the awards and the cost savings attributable to the disclosures, and found that the actual or projected cost savings appeared to be reasonable. Agency officials have suggested several changes or clarifications to improve the program including: (1) granting eligibility to military personnel for awards under the program; (2) clarifying where the award money should come from and considering appropriating funds for the program; and (3) ensuring that Office of Personnel Management guidelines for implementing the program comply with the Omnibus Budget Reconciliation Act of 1981 concerning the method of computation of the awards.