THE JUSTICE DEPARTMENT STRONGLY SUPPORTS INCREASED COMPLIANCE, AUDIT, AND INVESTIGATION EFFORTS BY THE AGENCIES. COMBINING AUDIT AND INVESTIGATION FUNCTIONS UNDER AN INSPECTOR GENERAL IN THE RESPECTIVE DEPARTMENTS AND AGENCIES VIRTUALLY ENSURES IMPROVEMENT OF THAT AGENCY'S PERFORMANCE. PAST EXPERIENCE HAS SHOWN THAT SUCCESSFUL INVESTIGATION AND PROSECUTION BY THE JUSTICE DEPARTMENT ARE DIRECTLY RELATED TO INCREASED AGENCY EFFORTS. AGENCIES CAN USE AUDITS, COMPLIANCE SURVEYS, INVESTIGATIONS, AND LIKE EFFORTS TO DETECT FRAUD AND ABUSE. JUSTICE DEPARTMENT EXPERIENCE SUGGESTS THAT FROM 1 PERCENT TO 10 PERCENT OF FEDERAL MONIES MAY BE LOST ANNUALLY THROUGH FRAUD AND ABUSE. CONSOLIDATION OF AUDIT AND INVESTIGATION FUNCTIONS WILL ENSURE MORE EFFICIENT AND EFFECTIVE USE OF PRESENT RESOURCES AND SHOULD PERMIT IMPROVED ADMINISTRATIVE ACTIONS SUCH AS DEBARMENT, SUSPENSION, AND DISMISSAL. ALTHOUGH PROVISIONS REGARDING INSPECTOR GENERALS' USE OF SUBPOENAS AND REQUIREMENT OF TWO TYPES OF REPORTS CAUSED INITIAL CONCERN AT THE JUSTICE DEPARTMENT, THESE PROVISIONS SHOULD NOT CAUSE PROBLEMS. THE ATTORNEY GENERAL IS CURRENTLY TRYING TO REALLOCATE JUSTICE DEPARTMENT STAFF TO DEAL WITH PROGRAM FRAUD AND ABUSE. THE JUSTICE DEPARTMENT EXPECTS TO WORK AS PARTNERS WITH THE NEW INSPECTORS GENERAL. FOR TEXTS OF RELATED TESTIMONY ON THIS LEGISLATION, SEE NCJ 67354-58. (CFW)