Small Agency Audit Improvement Act of 1986

(Measure passed Senate, amended)

Small Agency Audit Improvement Act of 1986 - Amends the Inspector General Act of 1978 to establish an Office of Inspector General in the Departments of Energy and of Health and Human Services.

Provides for uniform salaries for inspectors general at level IV of the Executive Schedule.

Authorizes inspectors general to administer to or take from any person an oath, affirmation, or affidavit when necessary.

Restricts each Federal agency without a statutorily established inspector general to one audit unit. Requires the audit unit director to be appointed by, report to, and be under the general supervision of the head of each Federal entity governed by this Act. Requires the head of any Federal entity who removes an audit unit director from office to communicate the reasons for such removal to the Congress. Transfers to certain audit unit directors certain powers, duties, and responsibilities of inspectors general.

Requires the President's Council on Integrity and Efficiency to conduct a study on internal audit and investigative activities at Federal entities and report to the President and the Congress, within one year of enactment of this Act, with findings and recommendations.