State of New Jersey
Executive Order #7

Acting Governor Richard J. Codey

WHEREAS, the State of New Jersey expends more than $28 billion in taxpayer money each year, and agencies at other levels of government spend billions more; and

WHEREAS, it is fundamental that all government officials must be publicly accountable for such expenditures; and

WHEREAS, promoting integrity in the administration and operations of government and improving public accountability will be cornerstones of my Administration; and

WHEREAS, one of the immediate remedial actions that can be taken to improve such accountability is to identify areas where State spending is wasteful or inefficient; and

WHEREAS, as Acting Governor, I have a responsibility to ensure a balanced budget, manage the operations of State Government effectively and efficiently, and maintain necessary government programs and assistance to the public; and

WHEREAS, N.J.S.A. 52:27B-31 and -26 empower the Governor to guard against extravagance, waste or fiscal mismanagement in the administration of any State appropriations; and

WHEREAS, it is critically important that public officers and employees, at all levels of government, discharge their duties and responsibilities in a lawful and ethical manner, while conserving the government's fiscal resources that have been entrusted to their care by the taxpayers; and

WHEREAS, there is a compelling need to centralize the responsibility for reviewing, auditing, evaluating and overseeing the expenditure of State funds by and the procurement process of all State departments and agencies, independent authorities, county and municipal governments, boards of education, and private entities and individuals who receive State grant funds;

NOW, THEREFORE, I, RICHARD J. CODEY, Acting Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and by the Statutes of this State, do hereby ORDER and DIRECT:

  1. There is hereby created an Office of the Inspector General, which shall be headed by the Inspector General.
  2. The Inspector General shall be appointed by and shall report directly to the Governor. The Inspector General shall serve for the term of the Governor, and until his successor is appointed and has qualified, unless a longer term of office is established by the Legislature. During said term of office, the Inspector general shall be removable by the Governor for cause.
  3. The Inspector General shall be precluded from being a candidate for or holding elected office for a period of two years following that individual's service as Inspector General.
  4. The Inspector General is authorized to establish a full-time program of audit, investigation and performance review designed to provide increased accountability, integrity and oversight of all recipients of State funds, including, but not limited to all State departments and agencies, independent authorities, county and municipal governments and boards of education. The Inspector General is granted all necessary powers to carry out this task, including the power to conduct investigations, audits, evaluations, inspections and other reviews in accordance with professional standards relating to such investigations and audits in government environments.
  5. The Inspector General is further authorized to investigate the performance of governmental officers, employees, appointees, functions and programs in order to promote efficiency, to identify cost savings, and to detect and prevent misconduct within the programs and operations of any governmental agency funded by or disbursing State funds.
  6. The Inspector General shall establish the internal organization structure appropriate to carrying out the responsibilities and functions of the Office. The Inspector General shall have the power to appoint, employ, promote and remove such assistants, employees and personnel as deemed necessary for the efficient and effective administration of the Office. Within budget limitations, the Inspector General may obtain the services of Certified Public Accountants, qualified management consultants and other professionals necessary to independently perform the functions of the Office.
  7. The State Treasurer is hereby directed to identify, from among existing resources, sufficient funds necessary to properly staff and operate the Office of Inspector General and to make such funds available to the Inspector General.
  8. The Inspector General is authorized to receive and investigate complaints concerning alleged fraud, waste, abuse or mismanagement of State funds. The Inspector General shall refer complaints alleging criminal conduct to the Attorney General or other appropriate prosecutorial authority. The Inspector General is further authorized to cooperate and conduct joint investigations with other oversight or law enforcement authorities.
  9. The Inspector General shall report the findings of such audits or investigations performed by the Office and to issue recommendations for corrective or remedial action to the Governor and to the entity at issue. The Inspector General shall further monitor the implementation of those recommendations. The Inspector General may also refer matters for further civil, criminal and administrative action to the appropriate authorities.
  10. The Inspector General shall provide periodic reports to the Governor and shall issue a public annual report to the Governor and the Legislature.
  11. The Inspector General is authorized to call upon any department, office or agency of State government to provide such information, resources or other assistance deemed necessary to discharge the responsibilities under this Order. Each department, officer, division and agency of this State is required to cooperate with the Inspector General and to furnish the Office with assistance necessary to accomplish the purposes of this Order.
  12. This Order shall take effect immediately.

GIVEN, under my hand and seal this 29th day
of November in the Year of Our Lord, Two Thousand
and Four, and of the Independence of the United States,
the Two Hundred and Twenty-Ninth.

/s/ Richard J. Codey
Acting Governor



/s/ Paul T. Fader
Chief Counsel to the Governor