THE DOD OPPOSES APPLICATION OF THE PROPOSED LEGISLATION TO ITS AGENCY FOR THREE REASONS. FIRST, THE REORGANIZATION BY THE SECRETARY OF DEFENSE OF PARTS OF THE DEPARTMENT'S AUDIT AND INVESTIGATIVE FUNCTIONS IS TAILORED TO MEET THE DEPARTMENT'S UNIQUE REQUIREMENTS AND WILL ALSO MEET THE BILL'S OBJECTIVES. THE DEPARTMENT HAS BOTH GENERAL AUDITING AND INVESTIGATIVE BRANCHES AND BRANCHES WITHIN EACH OF THE MILITARY SERVICES. THE RECENT REORGANIZATION ACHIEVES THE BILL'S GOALS OF CENTRAL LEADERSHIP AND INDEPENDENCE, ADEQUACY AND INTERRELATIONSHIP OF RESOURCES, AND AFFIRMATIVE PROGRAMS TO SEEK OUT FRAUD, WASTE, AND MISMANAGEMENT. SECOND, THE INSPECTOR GENERAL SYSTEM SERVING DOD MUST TAKE INTO ACCOUNT ITS COMPLEX CIVILIAN AND MILITARY ACTIVITIES. INTERNATIONAL AND NATIONAL SECURITY CONSIDERATIONS POSE UNIQUE REQUIREMENTS FOR OVERSIGHT ACTIVITIES. THIRD, IMPOSITION OF A NEW AND UNIFORM INSPECTOR GENERAL STRUCTURE ON TOP OF THE DEPARTMENT WOULD RESULT IN INEFFICIENT RIGIDITY THAT WOULD BE MUCH LESS EFFECTIVE THAN THE PRESENT SYSTEM IN MEETING THE BILL'S GOALS. FOR RELATED TESTIMONY, SEE NCJ 67353 AND 67355-67358. (CFW)