The deputy director of the Office of Management and Budget and chairman of the new Council on Integrity and Efficiency in Federal Government commented on the MSPB and GAO reports and then expressed the administration's support for legislation strengthening the Government's ability to collect debts, legislatively mandated inspector generals in all major departments, and using single audits for each recipient of Federal assistance. Committee members queried the witness about Defense Department procurement policies and hiring more inspector generals. The chairperson of the MSPB discussed its survey of 8,600 Federal employees in which 45 percent claimed to have observed or know about wasteful or illegal activities, 70 percent of this group failed to report such activities, and 20 percent of those who did report felt they suffered reprisals. Representatives from the GAO addressed the inadequacy of internal controls in Federal agencies and the effectiveness of the employee hotline for reporting abuse and fraud. The document includes the GAO and MSPB reports, as well as a program innovations report by the President's Council on Integrity and Efficiency, prepared witnesses' statements, and committee correspondence.