S. 2219 — BEACON Act

This section establishes an Office of Inspector General (OIG) for the Executive Office of the President (EOP) under the Inspector General Act of 1978 (5 U.S.C. 401 et seq.) by (1) adding the EOP to the definition of "establishment," (2) designating the President as the "head of the establishment" for the EOP, and (3) requiring the President to appoint an IG within 120 days of enactment in accordance with 5 U.S.C. 403(a). (As background, the Act designates OIGs in specified federal entities to conduct independent and objective audits, investigations, and evaluations to promote economy, efficiency, and detect waste, fraud, and abuse.) The section further inserts new 5 U.S.C. 425 with special provisions for the EOP OIG, including (1) placing the IG under presidential authority, direction, and control for audits, investigations, or subpoenas involving confidential sources, intelligence or counterintelligence matters, or undercover operations—with the President authorized to prohibit such activities if necessary to prevent disclosure (requiring written notice to the IG within 30 days and transmittal by the IG to specified congressional committees within 30 days thereafter); (2) requiring enhanced semiannual reports under 5 U.S.C. 405(b) (submitted to the President by April 30 and October 31 annually, then to congressional committees within 30 days) that include details on corrective actions, access to information, presidential prohibitions, and recommendations on efficiency and fraud prevention; and (3) directing the Council of Inspectors General on Integrity and Efficiency to audit the EOP OIG within 120 days of appointment and annually thereafter, with reports to Congress by October 31 each year. (Thus, presidential oversight limits EOP OIG independence in sensitive areas while mandating congressional notifications and external audits.)