To provide for financial and performance audits of the Iraq Relief and Reconstruction Fund and other assistance to Iraq.

SA 1853. Mr. McCAIN (for himself, Mr. Biden, and Mr. Graham of South Carolina) submitted an amendment intended to be proposed by him to the bill S. 1689, making emergency supplemental appropriations for Iraq and Afghanistan security and reconstruction for the fiscal year ending September 30, 2004, and for other purposes; which was ordered to lie on the table; as follows:

On page 6, before the period on line 12, insert the following:

: Provided further, not less than $4,000,000 shall be transferred to “Office of the Inspector General” for financial and performance audits of funds apportioned to the Department of Defense from the Iraq Relief and Reconstruction Fund”

On page 24, line 14, insert after “$40,000,000” the following--

“of which not less than $4,000,000 shall be transferred to and merged with “Operating Expenses of the United States Agency for International Development Office of Inspector General” for financial and performance audits of the Iraq Relief and Reconstruction Fund and other assistance to Iraq”

On page 38, after line 20, insert the following:

“Sec. 2313. General Accounting Office review

(a) The Comptroller General of the United States shall--

(1) review the effectiveness of relief and reconstruction activities conducted by the Coalition Provisional Authority (hereafter in this section “CPA”) from funds made available under the “Iraq relief and Reconstruction Fund” in this title, including by providing analyses of--

(A) the degree to which the CPA is meeting the relief and reconstruction goals and objectives in the major sectors funded under this title, and is enhancing indigenous capabilities;

(B) compliance by the CPA and the government departments with federal laws governing compeititon in contracting; and

(C) the degree to which the CPA is expending funds economically and efficiently, including through use of local contractors;

(2) report quarterly to the appropriate congressional committees on the results of the review conducted under paragraph (1).

(b) In this section, the term “appropriate congressional committees” means--

(1) the Committees on Appropriations, Armed Services, and Foreign Relations of the Senate; and

(2) the Committees on Appropriations, Armed Services, and International relations of the House of Representatives.