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    "ocrText": "The original documents are located in Box 19, folder \"1/2/75 HR12113 General Accounting\nOffice Act of 1974\" of the White House Records Office: Legislation Case Files at the\nGerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nExact duplicates within this folder were not digitized.\nDigitized from the White House Records Office: Legislation Case Files at the Gerald R. Ford Presidential Library\nAPPROVED\nACTION\nTHE WHITE HOUSE\nLast Day: January 4\nWASHINGTON\nDecember 31, 1974\nPosted\n1/3\nMEMORANDUM FOR THE PRESIDENT\narchive\nTo\nFROM:\nKEN COLE\n1/3\nSUBJECT:\nEnrolled Bill H.R. 12113\nGeneral Accounting Office Act of 1974\nAttached for your consideration is H.R. 12113, sponsored\nby Representatives Holifield and Horton, which revises\nand strengthens certain authorities and functions of the\nComptroller General, mostly in regard to the General Accounting\nOffice's auditing responsibilities.\nOMB recommends approval and provides additional background\ninformation in its enrolled bill report (Tab A).\nMax Friedersdorf (Loen) and Phil Areeda both recommend approval.\nRECOMMENDATION\nThat you sign H.R. 12113 (Tab B).\nin\nSECURITY\nFORD\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF management AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 28 1974\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 12113 - General Accounting Office\nAct of 1974\nSponsors - Rep. Holifield (D) California and Rep. Horton\n(R) New York\nLast Day for Action\nJanuary 4, 1975 - Saturday\nPurpose\nRevises and strengthens certain authorities and functions of the\nComptroller General, mostly in regard to the General Accounting\nOffice's auditing responsibilities.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nGeneral Services Administration\nApproval\nDepartment of the Treasury\nApproval\nCivil Service Commission\nApproval\nFarm Credit Administration\nApproval\nDepartment of Agriculture\nApproval\nDistrict of Columbia\nApproval\nDepartment of Defense\nNo objection\nDepartment of Transportation\nNo objection\nVeterans Administration\nNo objection\nNational Credit Union Administration\nNo objection\nDepartment of Health, Education\nand Welfare\nNo objection\nDepartment of Justice\nDefers to OMB\nDepartment of Housing and Urban\nDevelopment\nDefers to other\nagencies\nUNIALD R. FORD LIBRAIN\n2\nDiscussion\nThe Office of Management and Budget (OMB) and numerous other\nagencies reported on H.R. 12113 and its companion Senate bill\nwhile they were pending in the Government Operations Committees\nof both Houses. The legislation consists of eight titles; the\nAdministration supported one of the titles, stated no objection\nto four others, and took no position on three others.\nProvision supported by the Administration\nStatistical sampling procedures in the examination of vouchers --\nTitle I would amend Public Law 88-521 by (a) eliminating the\npresent $100 limitation on the amount of disbursement vouchers\nsubject to audit by statistical sampling, and (b) authorizing\nthe Comptroller General to prescribe such limitations as he\nconsiders appropriate and to change them from time to time as\nconditions warrant.\nWith increased price levels of recent years, the percentage of\nvouchers under $100 and the economies realizable from statistical\nsampling of vouchers have decreased. Voucher sampling techniques\nhave resulted in savings of more than $1.5 million annually, and\nthe establishment of a higher limitation would increase potential\nsavings in both time and manpower by subjecting more vouchers to\naudit by such techniques. Thus, the Administration supported\nTitle I of the bill.\nProvisions not opposed by the Administration\nAudit of transportation payments -- Title II would amend section\n322 of the Transportation Act of 1940 to transfer primary responsi-\nbility for the audit of transportation bills and recovery of over-\ncharges from the General Accounting Office (GAO) to the General\nServices Administration (GSA) or other agency as the GSA Administra-\ntor may designate. The GAO would nevertheless retain its appellate\nfunction, enabling carriers to request the Comptroller General to\nreview executive agency action on their claims.\nTitle II also provides for the transfer of all GAO personnel,\nrecords, and funds involved in the audit function. It contains\nnumerous provisions (relating to personnel classification and\nsalary retention, training, counseling, career development, and\nequal employment opportunity programs) which are intended to\nalleviate hardship to the approximately 400 employees who would\nbe affected.\nFORD\n.\nGERALD\nHERRY\n3\nWhile the Administration did not object to the transfer of the\ntransportation audit function, the Justice Department reported\nin opposition to the residual GAO review authority on the ground\nthat it would subject internal memoranda and working papers of\nthe audit-performing agency to GAO examination, thereby placing\nthe agency in a disadvantageous position in cases of disagreement\nand imposing a restraint on staff development of policy and\nopinions.\nAudit of nonappropriated fund activities -- Title III would make\nnonappropriated fund activities which sell merchandise or ser-\nvices to military or other Government personnel and their de-\npendents (such as the military exchanges) subject to audit by\nthe Comptroller General, and would give the Comptroller General\nauthority to inspect records and property and to obtain copies\nof annual reports of such nonappropriated funds.\nEmployment of experts and consultants -- Title IV would grant the\nComptroller General permanent authority to employ experts and\nconsultants in accordance with 5 U.S.C. 3109 at rates not to\nexceed the maximum daily rate prescribed for GS-18 under 5 U.S.C.\n5332. Ten such experts or consultants could be employed for\nperiods of up to three years, as an exception to the one-year\nlimitation contained in 5 U.S.C. 3109.\nIn its report to the Senate Committee on Government Operations\non this provision, the Civil Service Commission recommended\ndeletion of the exception to 5 U.S.C. 3109 on the grounds that\nGAO's expert and consultant services are by their very nature\nconsidered temporary or intermittant, and that it would seem to\nbe a contradiction in terms to authorize the employment of experts\nand consultants for periods longer than the one year currently\nprescribed for such individuals.\nGeneral Accounting Office Building -- Title V would provide the\nGAO first priority on space within the GAO headquarters building,\nincluding if necessary, the displacement of executive branch\nagencies (which currently occupy almost half the space). The\nGSA, which has custody and control over the GAO building in\nits administration of the Federal Buildings Fund, would be re-\nquired to furnish the Comptroller General with such space as he\nconsiders necessary. During the year following enactment of\nH.R. 12113, the GSA would be authorized to rent an amount of\nbuilding space equal to that which it furnishes to the Comptroller\nGeneral during the same period.\nFORD\nBERALD\nLIBRARY\n4\nThis provision results from new GAO functions and responsi-\nbilities, particularly under the Congressional Budget and\nImpoundment Control Act of 1974, which require the GAO to\nexpand its facilities.\nProvisions on which the Administration\ntook no position\nAudits of Government corporations -- Title VI would authorize\nthe Comptroller General to perform audits of wholly owned and\nmixed-ownership Government corporations at least once in every\nthree years, rather than annually as at present.\nRevision of annual audit requirements -- Title VII would eliminate\nthe requirements for annual audits of nine specified revolving\nfunds and make them subject to audit at the discretion of the\nComptroller General, in accordance with the provisions of the\nAccounting and Auditing Act of 1950.\nLimitation of time on claims and demands -- Title VIII would\nreduce the period of time allowed for filing claims in the GAO,\nfrom ten to six years after the date that a claim accrues. The\npurpose of this provision is to make the time limitation con-\nsistent with the statute of limitations now applicable to claims\nfiled in administrative agencies and the courts.\nConclusion\nH.R. 12113 in its enrolled form constitutes a substantial improve-\nment over earlier versions of this legislation. The original\nbills contained sweeping authorities for the Comptroller General\nwhich raised many fundamental and complex issues concerning the\nappropriate balance of legislative and executive authority. All\nof the onerous provisions have been removed during the develop-\nment of H.R. 12113, and even some of the surviving features reflect\namendments which were proposed by the Administration.\nWhile several agencies may have specific concerns with one pro-\nvision or another, we believe that those concerns are not over-\nwhelming and that the bill on balance is quite acceptable.\nAccordingly, we recommend its approval.\nWalfred H. Round\nAssistant Director for\nLegislative Reference\nEnclosures\nFORD LIBRARY\nDISTRICT OF OF COLUMBIA\nTHE DISTRICT OF COLUMBIA\nWALTER E. WASHINGTON\nWASHINGTON, D.C. 20004\nMayor-Commissioner\nDecember 24, 1974\nMr. Wilfred H. Rommel\nAssistant Director for\nLegislative Reference\nOffice of Management and Budget\nExecutive Office Building\nWashington, D. C.\nDear Mr. Rommel:\nThis is in reference to a facsimile of an enrolled\nenactment of Congress entitled:\nH.R. 12113- To revise and restate certain\nfunctions and duties of the Comptroller\nGeneral of the United States and for other\npurposes.\nThe enrolled bill, as it affects the District of\nColumbia Government, would by Sec. 101 authorize\nThe Commissioner of the District of Columbia, if\nhe determines that economies will result therefrom,\nto prescribe certain statistical sampling procedures\nin the examination of District disbursement vouchers.\nIt would further provide that any certifying or dis-\nbursing officer acting properly and in good faith is\nto be saved harmless with respect to any such certi-\nfication or payment by voucher not subject to spe-\ncific examination because of the simplifying proce-\ndure hereby specified.\nThe enrolled bill by Sec. 605 would change the\nexisting authorization for an audit of the books\nFORD - LIBRARY\nof the National Capital Housing Authority on an\n\"annual\" basis only, thereby authorizing an audit\nat any time at the discretion of the General Ac-\ncounting Office.\nThe District Government approves the objectives of\nH.R. 12113 and therefore recommends its approval.\nSincerely yours\nWALTER E. WASHINGTON\nMayor-Commissioner\n- 2 -\nDEPARTMENT OF THE AIR FORCE\nWASHINGTON 20330\nOF DEFENSE DEPART ENSE\nOFFICE OF THE SECRETARY\nDEC 24 1974\nmin\nSTATES OF\nDear Mr. Director:\nReference is made to your request for the views of\nthe Department of Defense with respect to the enrolled\nenactment of H.R. 12113, 93rd Congress, an Act \"To revise\nand restate certain functions and duties of the Comptroller\nGeneral of the United States and for other purposes\". The\nSecretary of Defense has delegated to the Department of the\nAir Force the responsibility for expressing the views of\nthe Department of Defense.\nH.R. 12113 revises and restates certain functions and\nduties of the Comptroller General. The purpose is to permit\nmore productive use of resources of the General Accounting\nOffice and give fuller recognition to its role as a legisla-\ntive rather than an executive agency. The following pro-\nvisions are of particular interest to the Department of\nDefense:\na. Title I authorizes the head of any department\nor agency to prescribe the use of statistical sampling pro-\ncedures in the examination of disbursement vouchers not\nexceeding such amounts as may be prescribed by the Comptroller\nGeneral. Current law limits the application of these pro-\ncedures to vouchers amounting to less than $100.\nb. Title II provides for the transfer of the\ngeneral responsibility for the initial auditing of trans-\nportation payments from the General Accounting Office to the\nGeneral Services Administration.\nC. Title III makes the operations and funds (in-\ncluding central funds) of nonappropriated fund activities\nsubject to review by the Comptroller General and gives him\naccess to their records and property. This title also\nauthorizes the Comptroller General to require copies of\nthe annual report of any nonappropriated fund he designates.\nThe designation may be made by class in the case of activi-\nties having gross receipts from sales of over $100,000 a\nyear. In other cases, the designation must be made by spe-\ncific request.\nd. Title VIII reduces the statute of limitations\nfor the filing of claims in the General Accounting Office\nfrom ten to six years. This change will not take effect for\nsix months after approval of the bill.\nThe Department of the Air Force, on behalf of the De-\npartment of Defense, has no objection to approval and\nsignature by the President of the enrolled enactment of\nH.R. 12113.\nThere will be no first year or recurring costs or\nsavings to the Department of Defense as the result of en-\nactment of this bill.\nThis report has been coordinated within the Department\nof Defense in accordance with procedures prescribed by the\nSecretary of Defense.\nSincerely,\nAssistant Secretary of the Air Force\n(Financial Management)\nHonorable Roy L. Ash\nDirector\nOffice of Management and\nBudget\nBERAID R. FORD LIBRANY\n2\nOF\nDEPARTMENT\nOFFICE OF THE SECRETARY OF TRANSPORTATION\n*\nWASHINGTON, D.C. 20590\nUNITED STATES OF AMERICA\nDecember 24, 1974\nGENERAL COUNSEL\nHonorable Roy L. Ash\nDirector\nOffice of Management and Budget\nWashington, D.C. 20503\nDear Mr. Ash:\nYour office has asked for the views of this Department concerning H.R. 12113,\nan enrolled bill \"To revise and restate certain functions and duties of the\nComptroller General of the United States and for other purposes.\"\nThis bill basically (1) amends the Transportation Act of 1940 (49 U.S.C. 66)\nto transfer certain authority for the audit and settlement of transportation\nclaims from the General Accounting Office (GAO) to the General Services\nAdministration (GSA) ; (2) provides for GAO audit of nonappropriated fund\nactivities; (3) amends the Government Corporation Control Act (31 U.S.C. 850)\nto require audits of such corporations at least once in every three years,\nand also amends various other acts, including the Federal Aviation Act of\n1958, to allow audits at the discretion of the Comptroller General pursuant\nto the Accounting and Auditing Act of 1950; (4) removes the $100 limitation\nfrom the present authority to statistically examine disbursement vouchers,\nleaving the limit to be established from time to time by the Comptroller\nGeneral; (5) shortens the time limit for the submission of certain claims\nfrom ten to six years; and (6) provides other changes affecting GAO which\nhave little or no impact upon the Department.\nThe Department in the past has supported most of these changes and believes\nthat these provisions will be of benefit not only to this Department but to\nmost agencies in the Government. Those reservations which we have expressed\nin prior correspondence to the Congress are not serious enough, in our view,\nto outweigh our general approval of this enrolled bill. With respect to\nTitle V, however, we defer to the opinion of the General Services Administration.\nThis Department does not object to the President's signing the enrolled bill,\nH.R. 12113.\nSincerely,\nAar\nRodney E. Eyster\nOERALD R. FORD ENTRY\nHowever, since H. R. 12113 would primarily affect the oper-\nations of the General Accounting Office, we defer to the\nComptroller General regarding recommendations as to Presi-\ndential action on H. R. 12113.\nSincerely,\nRICHARD L. ROUDEBUSH\nAdministrator\n2.\nCOMPANY RATION\nVETERANS ADMINISTRATION\nOFFICE OF THE ADMINISTRATOR OF VETERANS AFFAIRS\nWASHINGTON, D.C. 20420\n1930\nDECEMBER 2 4 1974\nThe Honorable\nRoy L. Ash\nDirector, Office of\nManagement and Budget\nWashington, D. C. 20503\nDear Mr. Ash:\nThis will respond to the request of the Assistant\nDirector for Legislative Reference for the views of the Vet-\nerans Administration on the enrolled enactment of H. R. 12113,\n93d Congress, the \"General Accounting Office Act of 1974\".\nOur comments will be confined to section 704 of the\nact as it applies to the Veterans' Canteen Service. Section\n704 would amend section 4207 of title 38, United States Code.\nSection 4207 requires the Veterans' Canteen Service to main-\ntain accounts which are audited annually by the General\nAccounting Office in accordance with the principles and pro-\ncedures applicable to commercial transactions, as provided\nin the Government Corporation Control Act (31 U.S.C. 841-\n869). Section 704 of H. R. 12113 would substitute a require-\nment that the mentioned accounts be audited in accordance\nwith the provisions of the Accounting and Auditing Act of\n1950. The frequency of the audits would be within the dis-\ncretion of the Comptroller General.\nThe liberalization proposed by section 704 of the\nact would have little or no effect on the operations of the\nVeterans' Canteen Service. Consequently, we would have no\nobjection to Presidential approval of the enrolled bill.\nSTATE FORD LIBRIRY\nCARDITUNION CREDIT UNION\nPATION\nNATIONAL CREDIT UNION ADMINISTRATION\nWashington, D.C. 20456\nGC/JLO:eor\nOffice of General Counsel\nDecember 23, 1974\nMr. W. H. Rommel\nAssistant Director for Legislative Reference\nOffice of Management and Budget\nExecutive Office of the President\nWashington, D. C. 20503\nDear Mr. Rommel:\nThis will acknowledge receipt of your request of December 20, 1974,\nfor our views and recommendations on enrolled bills S. 356 and H.R. 12113.\nWith respect to S. 356, although we are disappointed that credit\nunions were not included along with banks under the regulatory commands\nof the Federal Reserve Board in order to avoid disparate treatment among\ncompetitors in the financial marketplace, we raise no objection to the\nsubject enrolled bill.\nAs regards H.R. 12113, we also raise no objection to the subject\nenrolled bill.\nSincerely yours,\nJohn 1. Ostry\nJOHN L. OSTBY\nGeneral Counsel\nBERALD R. FORD -\n-\n-\nHEALTH.\nDELICATION.\nRECEIVED AND\nDEPARTMENT OF HEALTH, EDUCATION. AND WELFARE\nU.S.A.\nHonorable Roy L. Ash\nDEC 24 1974\nDirector, Office of Management\nand Budget\nWashington, D. C. 20503\nDear Mr. Ash:\nThis is in response to Mr. Rommel's request for a report\non H.R. 12113, an enrolled bill \"To revise and restate\ncertain functions and duties of the Comptroller General\nof the United States, and for other purposes.\"\nTitle I of the bill would amend Public Law 88-521 so\nas to eliminate the $100 limitation on the amount of the\ndisbursement vouchers subject to audit by statistical\nsampling techniques and, in lieu thereof, impose limitations\nof such amounts as may from time to time be prescribed\nby the Comptroller General for each department or agency.\nThe present law is restrictive in the sense that it does\nnot enable the Comptroller General to apply statistical\nsampling techniques in response to changing conditions.\nFor example, the general increase in price levels since\n1964 has eliminated many vouchers from statistical\nsampling because of the $100 limitation. Another example\nis the 1969 increase in per diem rates that also removed\nmany vouchers from statistical sampling. Since title I\nwould enable the Comptroller General to set the level for\nstatistical sampling, the Comptroller General would be in\na position to react promptly to events that would impact\nupon the availability of statistical sampling.\nWe therefore are in favor of title I.\nSection 705 of title VII would eliminate the present\nrequirement in section 432 (b) (2) of the Higher Education\nAct of 1965 for an annual audit by the Comptroller General\nof the Department's student loan insurance fund. In our\nHonorable Roy L. Ash\n2\nview, the frequency of audit is a matter which can be\nleft to the discretion of the Comptroller General, who\nis in a position to judge the need for and relative\npriority of audits of the fund.\nWe also, therefore, favor title VII of the enrolled bill.\nThe remaining five titles of the bill deal with various\nother functions of the General Accounting Office and do\nnot directly affect responsibilities of the Department\nof Health, Education, and Welfare. For this reason we\ndo not offer recommendations with respect to their desirability.\nIn summary, subject to the views of agencies more substantially\naffected by the bill, we have no objection to its approval.\nSincerely,\nBEAULO R. FORD\nBEI STATEMENT a\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nDATE: 3-3-75\nTO:\nBob Linder\nFROM: LRD (Hyde)\nAttached are (1) the Agriculture\nviews letter on H.R. 12113, 93rd Cong.\nand (2) the Treasury and ICC views\nletters on S. 281 for inclusion in\nthe enrolled bill files. Thanks.\nOMB FORM 38\nREV AUG 73\nSTATE STATES DEPARTMENT THE ))\nDEPARTMENT OF AGRICULTURE\nOFFICE OF THE SECRETARY\nWASHINGTON, D.C. 20250\nDecember 27, 1974\nHonorable Roy L. Ash\nDirector, Office of Management\nand Budget\nWashington, D.C. 20530\nDear Mr. Ash:\nIn reply to the request of your office, the following report is\nsubmitted on the enrolled enactment H.R. 12113, \"To revise and\nrestate certain functions and duties of the Comptroller General\nof the United States.\"\nThis Department recommends that the President approve the bill.\nSection 603 of the bill would amend the Federal Crop Insurance\nAct (52 Stat. 76; 7 U.S.C. 1513) to delete the requirement that\nthe financial transactions of the Corporation shall be audited\nat least once each year by the General Accounting Office for the\nsole purpose of making a report to Congress.\nSection 601 of the bill would amend the Corporation Control Act\nto require that each wholly owned Government corporation shall\nbe audited at least once every three years.\nIt is believed that less frequent audits of the Commodity Credit\nCorporation and the Federal Crop Insurance Corporation by the\nGeneral Accounting Office will have no detrimental effects because\nthe Department's Office of Audit also performs an annual audit of\nthe Corporation's financial transactions. The cost of annual\naudits of the Commodity Credit Corporation billed by the General\nAccounting Office in 1972, 1973, and 1974 was $71,000, $76,000,\nand $80,000 (estimated), respectively, and the cost of such audits\nof the Federal Crop Insurance Corporation in such years was\n$21,500, $17,500, and $18,000, respectively.\nSincerely,\nclayton Yeather\nCLAYTON YEUTTER\nActing Secretary\nFORD - LIBRARY\nASSISTANT ATTORNEY GENERAL\nLEGISLATIVE AFFAIRS\nDepartment of Justice\nWashington, D.C. 20530\nDEC 24 1974\nHonorable Roy L. Ash\nDirector, Office of Management\nand Budget\nWashington, D. C. 20503\nDear Mr. Ash:\nIn compliance with your request, I have examined a facsimile of\nthe enrolled bill H.R. 12113, the proposed General Accounting Office\nAct of 1974.\nTitle I of the bill would amend subsection (a) of Public Law 88-521\nto authorize the use of statistical sampling procedures in the examination\nof certain disbursement vouchers. Title II would amend section 322 of\nthe Transportation Act of 1940 to require the General Services Adminis-\ntration to audit certain transportation payments. A transfer of certain\nfunctions and personnel from the General Accounting Office to the General\nServices Administration would also be authorized by title II.\nThe Comptroller General would be authorized by title III to audit\ncertain nonappropriated fund activities and by title IV to employ experts\nand consultants in accordance with 5 U.S.C. 3109. Title V would allow\nthe Comptroller General to use space in the General Accounting Office\nBuilding.\nTitle VI and VII would amend a number of statutes to revise the audit\nrequirements of a number of Government activities. Title VIII would\nreduce the time limitation on claims and demands under the Act of October 9,\n1940, from ten to six years.\nThe Department of Justice defers to the Office of Management and\nBudget concerning whether this bill should receive Executive approval.\nSincerely,\nW Rokection W. Vincent Rakestraw\nAssistant Attorney General\nREVOLUTION WEENTENNING\n1776-1976\nU.S. DEPARTMENT * DEVEL URBAN OF MOUSING * AND\nTHE GENERAL COUNSEL OF HOUSING AND URBAN DEVELOPMENT\nWASHINGTON, D. C. 20410\nDecember 24, 1974\nMr. Wilfred H. Rommel\nAssistant Director for\nLegislative Reference\nOffice of Management and Budget\nWashington, D. C. 20503\nAttention: Ms. Mohr\nDear Mr. Rommel:\nSubject: H.R. 12113, 93d Congress, Enrolled Enactment\nThis is in response to your request for our views on the\nenrolled enactment of H.R. 12113, the proposed \"General\nAccounting Office Act of 1974\".\nThis legislation contains provisions relating primarily\nto authorities and responsibilities of the General\nAccounting Office and the General Services Administration.\nWhile this Department has no objection to the enactment,\nwe would defer to those agencies as to the desirability of\nits provisions.\nSincerely,\nDay los m Palm\nfor\nRobert R. Elliott\nFCA\nFARM CREDIT ADMINISTRATION\n485 L'ENFANT PLAZA, S.W. WASHINGTON, D.C. 20578\nDecember 26, 1974\nDirector, Office of Management and Budget\nExecutive Office of the President\nWashington, D. C. 20503\nAttention: Assistant Director for\nLegislative Reference\nSubject: Report on enrolled bill H.R. 12113, 93d Congress\nThis is in reply to the request of your office dated December 20, 1974,\nfor a report on enrolled bill H.R. 12113, an act \"To revise and restate\ncertain functions and duties of the Comptroller General of the United\nStates and for other purposes.'\nExcept for the provisions of section 601 (c) of the enrolled bill, we\ndefer to the views of other executive agencies on which the bill has\nspecific impact.\nSection 601 (c) would amend section 202 of the Government Corporation\nControl Act by adding thereto a sentence which, effective July 1,\n1974, would require each mixed-ownership Government corporation to be\naudited by the General Accounting Office at least once in every three\nyears. The first sentence of section 202, however, now requires the\nfinancial transactions of mixed-ownership Government corporations to\nbe audited by the General Accounting Office only for any period during\nwhich Government capital has been invested therein.\nMixed-ownership Government corporations are defined in section 201 of\nthe Act to include the Central Bank for Cooperatives and regional banks\nfor cooperatives, Federal land banks, and Federal intermediate credit\nbanks. These banks are under the supervision of the Farm Credit Admin-\nistration which is required by law to examine and audit their transac-\ntions not less frequently than once each year. The function of these\nbanks is to make credit available to farmers, ranchers, producers and\nharvesters of aquatic products, their cooperatives, and for certain\nrural housing purposes. The banks originally had Government seed\ncapital invested in them. However, the Government capital in all of\nthe banks has been repaid--for the Federal land banks by 1947, and for\nthe banks for cooperatives and Federal intermediate credit banks by the\nend of 1968. Since those dates the banks have not been subject to\naudit by the General Accounting Office.\n2-Assistant Director for Legislative Reference\nThese Farm Credit institutions are completely owned by their borrower-\nmembers. They do not lend Government funds. Also, the Federal Gov-\nernment does not insure or guarantee in any way the loans made by the\nbanks or the bonds they sell in the private investment market to obtain\nloan funds.\nIn amending section 202 of the Government Corporation Control Act,\nCongress expressed no intention to subject the banks for cooperatives,\nFederal land banks, and Federal intermediate credit banks to audit by\nthe General Accounting Office for any period during which they do not\nhave Government capital invested in them. Accordingly, we understand\nand interpret section 601 (c) of H.R. 12113 to require, effective\nJuly 1, 1974, audit by the General Accounting Office of a bank for\ncooperatives, a Federal land bank, or a Federal intermediate credit\nbank at least once in every three years only for such period, if any,\nduring which Government capital has been invested in such bank.\nOn the basis of our understanding of section 601 (c), and subject to\nthe views of other executive agencies which are more directly affected\nby other provisions of H.R. 12113, the Farm Credit Administration\nrecommends that the enrolled bill be approved by the President.\nSincerely,\nDaniel L. monson\nActing Governor\nFCA\nFARM CREDIT ADMINISTRATION\n485 L'ENFANT PLAZA, S.W. WASHINGTON, D.C. 20578\nDEC 2 6 1974\nDirector, Office of Management and Budget\nExecutive Office of the President\nWashington, D. c. 20503\nAttention: Assistant Director for\nLegislative Reference\nSubject: Report on enrolled bill H.R. 12113, 93d Congress\nThis is in reply to the request of your office dated December 20, 1974,\nfor a report on enrolled bill H.R. 12113, an act \"To revise and restate\ncertain functions and duties of the Comptroller General of the United\nStates and for other purposes.\"\nExcept for the provisions of section 601 (c) of the enrolled bill, we\ndefer to the views of other executive agencies on which the bill has\nspecific impact.\nSection 601 (c) would amend section 202 of the Government Corporation\nControl Act by adding thereto a sentence which, effective July 1,\n1974, would require each mixed ownership Government corporation to be\naudited by the General Accounting Office at least once in every three\nyears. The first sentence of section 202, however, now requires the\nfinancial transactions of mixed-ownership Government corporations to\nbe audited by the General Accounting Office only for any period during\nwhich Government capital has been invested therein.\nMixed-ownership Government corporations are defined in section 201 of\nthe Act to include the Central Bank for Cooperatives and regional banks\nfor cooperatives, Federal land banks, and Federal intermediate credit\nbanks. These banks are under the supervision of the Farm Credit Admin-\nistration which is required by law to examine and audit their transac-\ntions not less frequently than once each year. The function of these\nbanks is to make credit available to farmers, ranchers, producers and\nharvesters of aquatic products, their cooperatives, and for certain\nrural housing purposes. The banks originally had Government seed\ncapital invested in them. However, the Government capital in all of\nthe banks has been repaid--fox the Federal land banks by 1947, and for\nthe banks for cooperatives and Federal intermediate credit banks by the\nend of 1968. Since those dates the banks have not been subject to\naudit by the General Account Office.\nBECEINED\n1-Assistant Director for Legislative Reference\nThese Farm Credit institutions are completely owned by their borrower-\nmembers. They do not lend Government funds. Also, the Federal Gov-\nerment does not insure or guarantee in any way the loans made by the\nbanks or the bonds they sell in the private investment market to obtain\nloan funds.\nIn amending section 202 of the Government Corporation Control Act,\nCongress expressed no intention to subject the banks for cooperatives,\nFederal land banks, and Federal intermediate credit banks to audit by\nthe General Accounting Office for any period during which they do not\nhave Government capital invested in them. Accordingly, we understand\nand interpret section 601 (c) of H.R. 12113 to require, effective\nJuly 1, 1974, audit by the General Accounting Office of a bank for\ncooperatives, a Federal land bank, or a Federal internediate credit\nbank at least once in every three years only for such period, if any,\nduring which Government capital has been invested in such bank.\nOn the basis of our understanding of section 601 (c), and subject to\nthe views of other executive agencies which are more directly affected\nby other provisions of H.R. 12113, the Farm Credit Administration\nrecommends that the enrolled bill be approved by the President.\nSincerely,\nActing Covernor\nUNITED\nSTATE\nNOISSUMMO clvil STATE\nUNITED STATES CIVIL SERVICE COMMISSION\nWASHINGTON, D.C. 20415\nCHAIRMAN\nDecember 24, 1974\nHonorable Roy L. Ash\nDirector, Office of Management and Budget\nWashington, D.C. 20503\nAttention: Assistant Director for\nLegislative Reference\nDear Mr. Ash:\nThis is in reply to your request for the views of the Civil Service\nCommission on enrolled H.R. 12113, a bill \"To revise and restate\ncertain functions of the Comptroller General of the United States\nand for other purposes.\"\nTitle II of this legislation would transfer the initial audit of\ntransportation payments from the General Accounting Office to the\nGeneral Services Administration or its designee, and would accord\nvarious rights and protections to the approximately 400 employees\nwho would be affected. Transfers of employees could not begin\nuntil October 1, 1975, and not later than September 30, 1976.\nThose transferred could not be reduced in pay or grade for 2\nyears after the transfer except for cause. In addition, after\nthis 2 year period the employees would be subject to the salary\nsaving provisions of 5 U.S.C. 5337, thus giving them salary\nprotection for a total of 4 years.\nIn a report dated November 12, 1974, to the Chairman of the\nSenate Subcommittee on Budgeting, Management and Expenditures\non an earlier version of H.R. 12113, the Commission indicated\nthat a grade and pay retention feature which, in effect, provided\nsalary protection for 3 years was unnecessary in light of exist-\ning protections available to employees who transfer. Existing\nprotections include various procedural rights and salary saving\nunder 5 U.S.C. 5337 for 2 years if the employee is downgraded\nthrough no fault of his own. For the same reason, we consider\nsection 202(b) of this legislation unnecessary and undesirable, and\nwe hope it will not become a precedent for similar provisions in\nother legislation.\nWe have no objection to section 203 which is designed to pave the\nway for the transfer. Under this section, the Comptroller General\nwould be required to establish personnel development and counsel-\ning services for transferring employees. At least 60 days prior\nFORD & LIBRARY\n2.\nto the transfer, the Administrator of General Services would\nprepare a detailed plan for the transfer of functions and per-\nsonnel to be published in the Federal Register. In addition,\n6 months after the transfer, the Administrator of General\nServices would be required to report to the Congress on implementa-\ntion of the plan.\nTitle IV of H.R. 12113 authorizes the Comptroller General to employ\nexperts and consultants in accordance with 5 U.S.C. 3109, at rates\nnot to exceed the rate for GS-18. This is appropriate. However,\nthis section goes on to say that up to 10 such experts or consult-\nants may be employed for periods not in excess of 3 years. Under\n5 U.S.C. 3109, experts or consultants may be employed on a temporary\nor intermittent basis for not to exceed 1 year without regard to\ncompetitive appointment procedures. To authorize the employment of\nexperts and consultants for up to 3 years is inconsistent with the\ntemporary nature of expert and consultant services, and we object\nto it.\nAlthough we object to several of the personnel provisions, our\nobjections are not such as to warrant a Presidential veto. Therefore,\nwe recommend that the President sign enrolled H.R. 12113.\nBy direction of the Commission:\nSincerely yours,\nACTING\nChairman\nthe\n181\n3\nTHE UNDER SECRETARY OF THE TREASURY\nini\nWASHINGTON, D.C. 20220\nDEC 27 1974\nDirector, Office of Management and Budget\nExecutive Office of the President\nWashington, D.C. 20503\nAttention: Assistant Director for Legislative\nReference\nSir:\nYour office has asked for the views of this Department on\nthe enrolled enactment of H.R. 12113, \"To revise and restate\ncertain functions and duties of the Comptroller General of the\nUnited States, and for other purposes.'\nTitle I of the enrolled enactment would amend Public Law 88-521\n(31 U.S.C. 82b-1(a)) relating to statistical sampling procedures\nin the examination of disbursing vouchers, to remove the present\n$100 limit to which the present sampling procedures are confined\nand to authorize agency heads to extend the technique to vouchers\nnot exceeding such amounts as may from time to time be prescribed\nby the Comptroller General. The Department recommends approval of\nthis title.\nTitle II would amend section 322 of the Transportation Act of\n1940 relating to examination and payment of transportation vouchers,\nto transfer audit and settlement activities from the General Accounting\nOffice to the General Services Administration or his designee. It\nwould eliminate the provision in section 322(a) for joint promulga-\ntion of implementing standards by the Comptroller General and the\nSecretary of the Treasury. The Department recommends approval of\nthis title.\nTitle III would authorize the Comptroller General to review\nand have access to materials relating to the operations, accounting\nsystems, and audits of nonappropriated fund and related activities\nauthorized or operated by an executive agency to sell merchandise\nor services to military or other Government personnel and their\ndependents. The Department would have no objection to this title\nsince it is clear that it would not include banking agencies such\nas the Comptroller of the Currency, and would not expand the scope\nof the General Accounting Office review of the Exchange Stabilization\nFund.\n- 2 -\nTitle VII, insofar as it relates to this Department, would\neliminate the requirement for annual audit of the Bureau of Engraving\nand Printing Fund and make it subject to audit at the discretion of\nthe Comptroller General, in accordance with the provisions of the\nAccounting and Auditing Act of 1950. The Department has no objection\nto this provision.\nWe have no comment on Titles IV, V, VI and VIII of the enrolled\nenactment.\nSincerely yours,\nEderaid Schmults\nEdward C. Schmults\nUNITED STATES OF AMERICA\n#\n*\n4\nGENERAL SERVICES ADMINISTRATION\n#\n#\nWASHINGTON, DC 20405\n#\n*\n-\nGENERAL SERVICES\n*\nADMINIS TRATION -\n*\n*\nA\nDEC 20 1974\nHonorable Roy L. Ash\nDirector\nOffice of Management and Budget\nWashington, DC 20503\nDear Mr. Ash:\nBy referral dated December 20, 1974, from the Assistant Director\nfor Legislative Reference, your office requested the views of the\nGeneral Services Administration on enrolled bill H.R. 12113, 93rd\nCongress, an act \"To revise and restate certain functions and duties\nof the Comptroller General of the United States and for other\npurposes. \"\nThe portions of the bill of particular interest to GSA are title II\nand title V.\nTitle II amends section 322 of the Transportation Act of 1940, as\namended (49 U.S.C. 66), to transfer to the General Services Admin-\nistration a transportation audit function now performed by the General\nAccounting Office.\nTitle V is as follows:\nSec. 501. (a) The Comptroller General of the United States\nshall be entitled to the use of such space in the General\nAccounting Office Building as he determines to be necessary,\nand the head of any Federal agency which exercises authority\nover such building shall provide the Comptroller General\nwith such space within the building as the Comptroller\nGeneral determines to be necessary.\n(b) Notwithstanding any other provision of law, during the\none-year period beginning on the date of enactment of this\nAct, the Administrator for General Services may contract for\nthe rent of a building in the District of Columbia to the\nextent necessary to secure an amount of space equal to the\namount of space which the Administrator makes available to the\nComptroller General of the United States during such\none-year period under the provisions of subsection (a).\nKeep Freedom in Your Future With U.S. Savings Bonds\n2\nWe note that to be technically correct, the words \"Administrator for\nGeneral Services\" should read \"Administrator of General Services\".\nGSA favors Presidential approval of the enrolled bill.\nSincerely\nArthur F. Sampson\nAdministrator\nTHE WHITE HOUSE\nWASHINGTON\nWARREN HENDRIKS\nMEMORANDUM SUBJECT: FROM: Ven FOR: her for\nMAX L. FRIEDERSDORF\nAction Memorandum - Log No. 889\nEnrolled Bill H.R. 12113\nThe Office of Legislative Affairs concurs in the attached proposal\nand has no additional recommendations.\nAttachment\nFORD LIBRARY & BERALD\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 88 1574\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 12113 - General Accounting Office\nAct of 1974\nSponsors - Rep. Holifield (D) California and Rep. Horton\n(R) New York\nLast Day for Action\nJanuary 4, 1975 - Saturday\nPurpose\nRevises and strengthens certain authorities and functions of the\nComptroller General, mostly in regard to the General Accounting\nOffice's auditing responsibilities.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nGeneral Services Administration\nApproval\nDepartment of the Treasury\nApproval\nCivil Service Commission\nApproval\nFarm Credit Administration\nApproval\nDepartment of Agriculture\nApproval\nDistrict of Columbia\nApproval\nDepartment of Defense\nNo objection\nDepartment of Transportation\nNo objection\nVeterans Administration\nNo objection\nNational Credit Union Administration\nNo objection\nDepartment of Health, Education\nand Welfare\nNo objection\nDepartment of Justice\nDefers to OMB\nDepartment of Housing and Urban\nDevelopment\nDefers to other\nagencies\n2\nDiscussion\nThe Office of Management and Budget (OMB) and numerous other\nagencies reported on H.R. 12113 and its companion Senate bill\nwhile they were pending in the Government Operations Committees\nof both Houses. The legislation consists of eight titles; the\nAdministration supported one of the titles, stated no objection\nto four others, and took no position on three others.\nProvision supported by the Administration\nStatistical sampling procedures in the examination of vouchers --\nTitle I would amend Public Law 88-521 by (a) eliminating the\npresent $100 limitation on the amount of disbursement vouchers\nsubject to audit by statistical sampling, and (b) authorizing\nthe Comptroller General to prescribe such limitations as he\nconsiders appropriate and to change them from time to time as\nconditions warrant.\nWith increased price levels of recent years, the percentage of\nvouchers under $100 and the economies realizable from statistical\nsampling of vouchers have decreased. Voucher sampling techniques\nhave resulted in savings of more than $1.5 million annually, and\nthe establishment of a higher limitation would increase potential\nsavings in both time and manpower by subjecting more vouchers to\naudit by such techniques. Thus, the Administration supported\nTitle I of the bill.\nProvisions not opposed by the Administration\nAudit of transportation payments -- Title II would amend section\n322 of the Transportation Act of 1940 to transfer primary responsi-\nbility for the audit of transportation bills and recovery of over-\ncharges from the General Accounting Office (GAO) to the General\nServices Administration (GSA) or other agency as the GSA Administra-\ntor may designate. The GAO would nevertheless retain its appellate\nfunction, enabling carriers to request the Comptroller General to\nreview executive agency action on their claims.\nTitle II also provides for the transfer of all GAO personnel,\nrecords, and funds involved in the audit function. It contains\nnumerous provisions (relating to personnel classification and\nsalary retention, training, counseling, career development, and\nequal employment opportunity programs) which are intended to\nalleviate hardship to the approximately 400 employees who would\nbe affected.\n3\nWhile the Administration did not object to the transfer of the\ntransportation audit function, the Justice Department reported\nin opposition to the residual GAO review authority on the ground\nthat it would subject internal memoranda and working papers of\nthe audit-performing agency to GAO examination, thereby placing\nthe agency in a disadvantageous position in cases of disagreement\nand imposing a restraint on staff development of policy and\nopinions.\nAudit of nonappropriated fund activities -- Title III would make\nnonappropriated fund activities which sell merchandise or ser-\nvices to military or other Government personnel and their de-\npendents (such as the military exchanges) subject to audit by\nthe Comptroller General, and would give the Comptroller General\nauthority to inspect records and property and to obtain copies\nof annual reports of such nonappropriated funds.\nEmployment of experts and consultants -- Title IV would grant the\nComptroller General permanent authority to employ experts and\nconsultants in accordance with 5 U.S.C. 3109 at rates not to\nexceed the maximum daily rate prescribed for GS-18 under 5 U.S.C.\n5332. Ten such experts or consultants could be employed for\nperiods of up to three years, as an exception to the one-year\nlimitation contained in 5 U.S.C. 3109.\nIn its report to the Senate Committee on Government Operations\non this provision, the Civil Service Commission recommended\ndeletion of the exception to 5 U.S.C. 3109 on the grounds that\nGAO's expert and consultant services are by their very nature\nconsidered temporary or intermittant, and that it would seem to\nbe a contradiction in terms to authorize the employment of experts\nand consultants for periods longer than the one year currently\nprescribed for such individuals.\nGeneral Accounting Office Building --- Title V would provide the\nGAO first priority on space within the GAO headquarters building,\nincluding if necessary, the displacement of executive branch\nagencies (which currently occupy almost half the space). The\nGSA, which has custody and control over the GAO building in\nits administration of the Federal Buildings Fund, would be re-\nquired to furnish the Comptroller General with such space as he\nconsiders necessary. During the year following enactment of\nH.R. 12113, the GSA would be authorized to rent an amount of\nbuilding space equal to that which it furnishes to the Comptroller\nGeneral during the same period.\n4\nThis provision results from new GAO functions and responsi-\nbilities, particularly under the Congressional Budget and\nImpoundment Control Act of 1974, which require the GAO to\nexpand its facilities.\nProvisions on which the Administration\ntook no position\nAudits of Government corporations -- Title VI would authorize\nthe Comptroller General to perform audits of wholly owned and\nmixed-ownership Government corporations at least once in every\nthree years, rather than annually as at present.\nRevision of annual audit requirements -- Title VII would eliminate\nthe requirements for annual audits of nine specified revolving\nfunds and make them subject to audit at the discretion of the\nComptroller General, in accordance with the provisions of the\nAccounting and Auditing Act of 1950.\nLimitation of time on claims and demands -- Title VIII would\nreduce the period of time allowed for filing claims in the GAO,\nfrom ten to six years after the date that a claim accrues. The\npurpose of this provision is to make the time limitation con-\nsistent with the statute of limitations now applicable to claims\nfiled in administrative agencies and the courts.\nConclusion\nH.R. 12113 in its enrolled form constitutes a substantial improve-\nment over earlier versions of this legislation. The original\nbills contained sweeping authorities for the Comptroller General\nwhich raised many fundamental and complex issues concerning the\nappropriate balance of legislative and executive authority. All\nof the onerous provisions have been removed during the develop-\nment of H.R. 12113, and even some of the surviving features reflect\namendments which were proposed by the Administration.\nWhile several agencies may have specific concerns with one pro-\nvision or another, we believe that those concerns are not over-\nwhelming and that the bill on balance is quite acceptable.\nAccordingly, we recommend its approval.\nWalfred H. Rommal\nAssistant Director for\nLegislative Reference\nEnclosures\nTHE WHIT\nACTION MEMORANDUM\nWASHINGTON\nLOG NO, 889\nDate: December 28, 1974\nTime: 7:00 p.m.\nFOR ACTION: Geoff Shepard oh\ncc (for information): Warren Hendriks\nMax Friedersdorf oh\nJerry Jones\nPhil Areeda no dog\nJack Marsh\nFROM THE STAFF SECRETARY\nDUE: Date: December 30, 1974\nTime: 1:00 p.m.\nSUBJECT:\nEnrolledBill H.R. 12113 - General Accounting Office\nActinf 1974\nACTION REQUESTED:\nFor Necessary Action\nFor Your Recommendations\nX\nPrepare Agenda and Brief\nDraft Reply\nH\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate\ndelay in submitting the material, please K. R COLE, JR.\ntelephone the Staff Secre\nPresident\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 889\nDate:\nDecember 28, 1974\nTime: 7:00 p.m.\nFOR ACTION: Geoff Shepard\ncc (for information): Warren Hendriks\nMax Friedersdorf\nJerry Jones\nPhil Areeda\nJack Marsh\nFROM THE STAFF SECRETARY\nDUE: Date: December 30, 1974\nTime: 1:00 p.m.\nSUBJECT:\nEnrolledBill H.R. 12113 - General Accounting Office\nAct of 1974\nACTION REQUESTED:\nFor Necessary Action\nX\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX For Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\nApproral\nHCS.\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\nWarren K. Hendriks\ndelay in submitting the required material, please\nFor the President\ntelephone the Staff Secretary immediately.\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 889\nDate:\nTime:\nDecember 28, 1974\n7:00 p.m.\nFOR ACTION: Geoff Shepard\nCC (for information): Warren Hendriks\nMax Friedersdorf\nJerry Jones\nPhil Areeda\nJack Marsh\nFROM THE STAFF SECRETARY\nDUE: Date: December 30, 1974\nTime: 1:00 p.m.\nSUBJECT:\nEnrolledBill H.R. 12113 - General Accounting Office\nAct of 1974\nACTION REQUESTED:\nFor Necessary Action\nX\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX For Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\nNo Objection\nNC\nTompy\nBERALD R. FORD LIBRERY\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\nWarren K. Hendriks\ndelay in submitting the required material, please\nFor the President\ntelephone the Staff Secretary immediately.\n93D CONGRESS\nHOUSE OF REPRESENTATIVES\nREPORT\n2d Session\nNo. 93-1300\nGENERAL ACCOUNTING OFFICE LEGISLATION\nAUGUST 19, 1974.-Committed to the Committee of the Whole House on the\nState of the Union and ordered to be printed.\nMr. HOLIFIELD, from the Committee on Government Operations,\nsubmitted the following\nREPORT\n[To accompany H.R. 12113]\nThe Committee on Government Operations, to whom was referred\nthe bill (H.R. 12113) to revise and restate certain functions and\nduties of the Comptroller General of the United States, and for other\npurposes, having considered the same, report favorably thereon with\nan amendment and recommend that the bill, as amended, do pass.\nThe amendment strikes out all after the enacting clause and inserts\na substitute text which appears in the reported bill in italic type as\nwell as in the appendix of this report.\nDIVISIONS OF THE REPORT\nSummary and purpose.\nCommittee amendment.\nCommittee vote.\nHearings.\nTitles of the bill :\nTitle I-Statistical Sampling Procedures in the Examination of\nVouchers.\nTitle II-Audit of Transportation Payments.\nTitle III-Audit of Nonappropriated Fund Activities.\nTitle IV-Employment of Experts and Consultants.\nTitle V-General Accounting Office Building.\nTitle VI-Audit of Government Corporations.\nTitle VII-Revision of Annual Audit Requirements.\nTitle VIII-Limitation of Time on Claims and Demands.\nEstimated costs and savings.\nSection-by-section analysis.\nChanges in existing law made by the bill, as reported.\nAppendix : Text of committee bill as reported.\n2\nSUMMARY AND PURPOSE\nH.R. 12113, titled \"General Accounting Office Act of 1974,\" re-\nvises and restates certain functions and duties of the Comptroller\nGeneral. The purpose is to permit more productive use of resources in\nthe General Accounting Office and give fuller recognition to its role\nas a legislative rather than an executive agency. To this end, the bill\neliminates excessive audit requirements, realigns certain functions as\nbetween the General Accounting Office and the executive agencies, and\nconforms the statute of limitations for the filing of claims in the Gen-\neral Accounting Office to that established for the filing of claims in\nthe Court of Claims.\nAs amended, the bill contains 8 titles as follows:\nTitle I-Statistical Sampling Procedures in the Examination of\nVouchers.\nTitle II-Audit of Transportation Payments.\nTitle III-Audit of Nonappropriated Fund Activities.\nTitle IV-Employment of Experts and Consultants.\nTitle V-General Accounting Office Building.\nTitle VI-Audit of Government Corporations.\nTitle VII-Revision of Annual Audit Requirements.\nTitle VIII-Limitation of Time on Claims and Demands.\nEach of these titles deals with a discrete area and is discussed sepa-\nrately below with reference to specific need, justification, background,\nproblems, and committee revisions.\nCOMMITTEE AMENDMENT\nIn the course of subcommittee and committee consideration, several\nchanges were made in H.R. 12113. These are incorporated in a new\ntext in the form of a single committee amendment to H.R. 12113,\nwhich strikes out all after the enacting clause and inserts the new lan-\nguage. The committee amendment is shown in the appendix.\nCOMMITTEE VOTE\nAt a meeting of the full Committee on Government Operations on\nAugust 15, 1974, a quorum being present, H.R. 12113, as amended, was\napproved unanimously by voice vote.\nHEARINGS\nH.R. 12113 was introduced on December 21, 1973, at the request of\nthe Comptroller General. The Legislation and Military Operations\nSubcommittee held hearings on the bill on June 5 and 6, 1974. Testi-\nmony and statements were presented by the Comptroller General\nand GAO staff personnel, and by representatives of the Office of Man-\nagement and Budget, the General Services Administration, and the\nDepartment of Defense. Specific details of their views are included in\nthe discussion of each title of the bill. In general they supported\nthe bill or posed issues which your committee has endeavored, where\npossible, to accommodate and reconcile by its amendment.\n3\nTITLES OF THE BILL\nTITLE I-STATISTICAL SAMPLING PROCEDURES IN THE EXAMINATION OF\nVOUCHERS\nExisting law authorizes statistical sampling procedures for the\nexamination of disbursing vouchers for amounts of less than $100 (31\nU.S.C. 82b-1(a)). Title I increases the ceiling to such amounts as\nmay be prescribed from time to time by the Comptroller General.\nAs pointed out in testimony by Elmer B. Staats, Comptroller Gen-\neral of the United States,1 the present law was enacted in August 1964;\nsince then the consumer price index has risen from 93 to 144 in 1974;\nand the number of vouchers eligible for sampling audit procedures has\ndropped from 65 percent to 51 percent in 1971. As a result, agency sav-\nings available through sampling audit procedures have fallen and only\n12 agencies were using sampling procedures in 1971. Estimated savings\nwere in excess of $1.5 million for these 12 agencies. Raising the ceil-\ning to $250 would increase the savings by about 35 percent, and addi-\ntional savings would be achieved as other agencies found it worthwhile\nto adopt the sampling procedures.\nTo avoid the lengthy process of changing a statutory ceiling by\nlegislation to correspond with inflationary trends, the bill authorizes\nthe Comptroller General to change the limit from time to time. It also\nrequires the Comptroller General to evaluate the adequacy and effec-\ntiveness of an agency's use of sampling audit procedures. Thus each\nagency would have to demonstrate economies in its use of sampling\naudit procedures within the limits established by the Comptroller\nGeneral.\nTitle I is supported by the executive agencies. In the judgment of\nyour committee, it will achieve substantial savings in manpower and\nadministrative costs without undue risk of unwarranted expenditures.\nTITLE II-AUDIT OF TRANSPORTATION PAYMENTS\nSummary\nTitle II of the bill, as amended, transfers responsibility for making\ninitial audits of transportation vouchers from the General Account-\ning Office to the General Services Administration. The General Ac-\ncounting Office, however, retains authority to conduct final audits in\naccordance with the Budget and Accounting Act of 1921 (31 U.S.C.\n41) and the Accounting and Auditing Act of 1950 (31 U.S.C. 65).\nWithin prescribed time limits, transportation carriers and forwarders\nmay request review of an administrative audit by the Comptroller\nGeneral.\nIn effect, title II makes the division of responsibility for trans-\nportation audits between the General Accounting Office and the execu-\ntive branch comparable to that established for other Government dis-\nbursements, such as for procurement contracts, pay, and allowances,\n1 H.R. 12113, H.R. 12181, and H.R. 14718, \"Bills Relating to the General Accounting\nOffice.\" hearings before a subcommittee of the Committee OF Government Operations,\nHouse of Representatives, 93d Cong., 2d sess., June 5 and 6, 1974 (hereinafter cited as\n\"hearings\"), pp. 31-32.\n4\nwhere initial audit is conducted by the executive agency, subject to\nfinal audit by the General Accounting Office.\nNeed\nThe Comptroller General testified as follows 2\nThe basic reason for proposing the transfer of this opera-\ntion is that by its very nature it is primarily an operating\nfunction of the executive branch. Almost all of the transpor-\ntation costs of the government are incurred by executive\nbranch agencies in the course of carrying out their opera-\ntions.\nThis being the case, the responsibility for determining that\nthe charges billed are technically correct belongs to the\nbranch of government that procures the transportation serv-\nices. Under the policy established in the Budget and Account-\ning Procedures Act of 1950, this is true for payments for all\nother types of services and it should apply to transportation,\nas well.\nThe detailed transportation audit function is simply not\nconsistent with the general purposes, objectives and respon-\nsibilities of the GAO as they have been modernized over the\npast 25 years. Its primary emphasis is now on evaluating the\nefficiency, economy, and effectiveness of executive agency\nmanagement performance and on assisting the Congress in\nits legislative and oversight work.\nResponsibility for the detailed audit of transportation ex-\npenditures should be vested in the executive branch, subject\nto overall review by the GAO. This change would conform\nthis large area of Federal expenditure to the same concept of\nexecutive management control subject to GAO post audit\nthat applies to all other categories of expenditures.\nIt would appear, from the Comptroller General's testimony, that the\nplacement of the initial audit function in the General Accounting\nOffice is an anachronism going back to 1940, when there was a need\nto expedite payment of transportation vouchers, and the General Ac-\ncounting Office was much more involved in detailed audits of agency\nexpense vouchers. This function is no longer compatible with the\nchange in the role of the General Accounting Office made by the Budget\nand Accounting Procedures Act of 1950 (31 U.S.C. 65), or with the\npolicy then established for the transfer of operating functions from\nthe General Accounting Office to the executive agencies.³\nAgency Views\nRepresentatives of the Office of Management and Budget and the\nGeneral Services Administration supported the transfer of the trans-\nportation audit function from the General Accounting Office. The\nDepartment of Defense opposed title II in its original \"open-ended\n2 Hearings, p. 33.\n3 Hearings, pp.40 and 41.\n5\nform\" under which one or more agencies could be designated by the\nOffice of Management and Budget to take over the function. However,\nthe Department of Defense has no objection to title II as revised by\nthe committee, designating the General Services Administration as the\ntransferee agency.\nCommittee Revisions\n1. During the hearings there was general agreement by agency\nrepresentatives that the transportation audit function should remain\ncentralized in one executive agency, and that the General Services\nAdministration was the appropriate agency to take over the basic\nresponsibility. Centralized operation is required in the interest of\nefficiency, effectiveness, and economy because of the numerous tariffs,\nschedules, and rulings involved and the scarcity of the highly special-\nized skills required. Carriers also consider it essential to deal with one\nagency in resolving questions of interpretation and application of\nrates. The Air Transport Association opposed transfer from the Gen-\neral Accounting Office until it was made clear that the function would\nbe centralized in one executive agency.\nAssignment of the function to the General Services Administration\nis compatible with its responsibilities and organization. Ronald E.\nZechman, Acting Associate Administrator, General Services Adminis-\ntration, testified: 5\nWe believe that, on the whole, the bill would place\nbasic responsibility for auditing with executive branch\nagencies-where we believe it belongs-leaving the General\nAccounting Office in a position to carry out its proper over-\nsight responsibilities over the executive branch.\n*\n*\n*\nShould the bill be enacted and the transportation audit be\nassigned to GSA, it would complement our Government-wide\ntransportation mission. In our statutory role of traffic man-\nager for the civilian agencies, GSA provides a variety of\ntransportation management programs designed to accomplish\nthe most efficient and economical use of the various freight\nand passenger modes.\nGSA also maintains a master tariff library which is utilized\nin serving Federal agencies requiring freight rate and pas-\nsenger fare determinations, as well as routing, freight clas-\nsification, and related technical data.\nThe committee agrees that the basic responsibility should remain\ncentralized and should be vested in the General Services Administra-\ntion. Accordingly, the committee amendment includes a change in\nsection 201 (a) to specify the General Services Administration as the\ntransferee agency, in lieu of providing for the Director of the Office\nof Management and Budget to designate the transferee agency. Trans-\nfer of the function to the General Services Administration, in com-\nbination with the provisions for transfer of experienced personnel\nfrom the General Accounting Office and for carriers to appeal adverse\n4\nHearings, p. 42.\n5 Hearings, p. 68.\n6\ndecisions to the Comptroller General, assure that the audit operation\nwill be carried on with the same technical competence and impartiality\nshown by the General Accounting Office.\n2. During the hearings, there was agreement that flexibility was\nneeded to continue present arrangements for the performance of trans-\nportation audits by other agencies in exceptional cases, such as the\naudit of overseas transportation vouchers by Department of Defense\noffices in Heidelberg and Tokyo. Accordingly, the committee amend-\nment includes authorization in section 201 (a) for the Administrator of\nGeneral Services to delegate his audit authority in exceptional cases\n\"pursuant to regulations prescribed by him.\" The latter language is\nintended to assure carriers that audits will be conducted to the extent\npracticable under a common set of procedures and forms.\n3. To provide additional protection for transferred employees, the\ncommittee amendment includes changes in section 202, first to require\nconsultation by the Director of the Office of Management and Budget\nand by the Comptroller General with the Chairman of the U.S. Civil\nService Commission with regard to personnel to be transferred; and\nsecond, to guarantee transferred employees that they would not be re-\nduced in pay or classification for 1 year after their transfer, except\nfor cause, and thereafter they would have longevity and other em-\nployee benefits under 5 U.S.C. 5337 to the same extent as if they had\nremained employees of the General Accounting Office. In addition,\nsection 203 is changed to allow a longer time (July 1, 1977, in place of\nJuly 1, 1976) to make the transfer and to prohibit transfer of em-\nployees before July 1, 1975.\n4. Section 203 is changed to permit the Comptroller General and the\nAdministrator of General Services to agree upon a date prior to\nJuly 1, 1977 (but, for personnel, not before July 1, 1975) as the effec-\ntive date for transfer of audit functions, and to require advance publi-\ncation of the effective date in the Federal Register.\n5. Other conforming changes are made in title II.\nEmployee Concerns\nApproximately 400 employees would be transferred from the Gen-\neral Accounting Office to the General Services Administration to con-\ntinue performing the transportation audit functions. A memorandum\nsubmitted to the subcommittee by the Black Caucus in the General\nAccounting Office expressed concern that job security and opportuni-\nties for advancement of transferred employees could be adversely\naffected. If the transfer were to be effected, the memorandum urged\nthat there be careful advance planning in consideration of employee\ninterests.⁶\nRecognizing these employee concerns and desiring to assure job\nprotection and opportunities for advancement, your committee has\nwritten specific provisions into the bill to allow ample time for ad-\nvance planning and to protect employee rights and privileges. Up to\n3 years are allowed for the transition. No personnel may be trans-\nferred before July 1, 1975. Employees who are transferred to the Gen-\n6 Hearings, p. 55.\n7\neral Services Administration will continue to have employment and\nother rights equivalent to those afforded in the General Accounting\nOffice. During the hearings, the subcommittee received assurances from\nthe General Accounting Office, the General Services Administration,\nand the Office of Management and Budget that careful consideration\nwould be given to the protection of employee rights and privileges.⁷\nTITLE III-AUDIT OF NONAPPROPRIATED FUND ACTIVITIES\nSummary\nTitle III of the bill makes nonappropriated fund activities, such as\nthe military exchanges, subject to audit by the Comptroller General\nand gives him authority to inspect records and property and obtain\ncopies of annual reports.\nNeed\nNonappropriated fund activities of the executive agencies such as\nthe military exchanges are \"big business\" involving substantial ex-\npenditures. From time to time, problems have arisen in the adminis-\ntration of these activities, and the Congress has called upon the Gen-\neral Accounting Office to conduct audits. Numerous reports on such\naudits have been presented by the Comptroller General to the House\nCommittee on Appropriations and the House Committee on Banking\nand Currency.8\nThough financed by nonappropriated funds, activities such as mili-\ntary exchanges are considered Government instrumentalities partak-\ning of its sovereign immunities, and subjecting the Government to\nliability under the Federal Tort Claims Act.¹⁰ Accordingly, the Con-\ngress and the executive branch should have the same assurance that\ntheir affairs are being properly conducted and supervised as is pro-\nvided for other Government activities by audits of the General Ac-\ncounting Office.\nAs the Comptroller General made clear in his testimony,11 GAO\naudits will not be a substitute for the regular internal and outside\naudits obtained by the agencies, but will be conducted on a selected\nbasis to test the accuracy of agency audit procedures and controls, and\nto investigate specific problems.\nAgency Views\nRepresentatives of the Office of Management and Budget, the Gen-\neral Services Administration, and the Department of Defense inter-\nposed no basic objection to giving GAO review authority over\nnonappropriated fund activities but raised a number of questions with\nrespect to specific provisions. In all major respects, these have been\naccommodated by the committee amendment.\n7 Hearings, pp. 52, 75, and 107.\n8 Hearings, p. 33.\nB Standard Oil Co. V. Johnson, 316 U.S. 481, 1942.\n10 See Fourneer V. U.S., 220 F. Supp. 752 (S.E. Miss., 1963).\n11 Hearings, p. 34.\n8\nCommittee Revisions\n1. The Office of Management and Budget representative, Charles F.\nBingman, Deputy Associate Director, questioned the scope of \"non-\nappropriated funds and related activities,\" as used in the original sub-\nsection 301 (a). The Comptroller General made it clear that there was\nno intent under this provision to cover such nonappropriated activi-\nties as the Smithsonian Institution or Federal credit unions. Accord-\ningly, he offered an amendment, which the committee adopted with\nslight modification, to limit nonappropriated fund activities to those\n\"authorized or operated by an executive agency to sell merchandise or\nservices to military or other government personnel and their depend-\nents.\" As SO amended, subsection 301 (a) is acceptable to the Office of\nManagement and Budget.\n2. A question having arisen as to whether the original subsection\n301 (a) provision for access to records by the Comptroller General\nwould extend to the records of contractors doing business with non-\nappropriated fund activities,12 the committee amendment includes a\nclarifying change to limit access to the records \"of funds and activities\nwithin this subsection.\" Thus the Comptroller General, under this pro-\nvision, will not have direct access to the records of contractors supply-\ning goods and services to nonappropriated fund activities.\n3. Administration witnesses objected to the original form of subsec-\ntion 301 (b) on the ground that it would require agencies to change the\nformat of the annual reports of nonappropriated fund activities and\nto furnish such reports in all cases without regard to the size of the ac-\ntivity. They regarded this as an unwarranted paperwork burden.\nIn response, the committee amendment includes a revision of sub-\nsection 301 (b) reading as following:\n(b) When required by the Comptroller General for such\nnonappropriated fund and related activities with gross re-\nceipts from sales or more than $100,000 a year as he may des-\nignate by class, or upon specific request of the Comptroller\nGeneral in any other case, each executive agency shall furnish\npromptly a copy of the annual report of any nonappropriated\nfund or related activity referred to in subsection (a). If such\ninformation is not included in any activity's annual report,\nsuch agency shall also furnish a statement showing the yearly\nfinancial operations, financial condition, and cash flow, and\nsuch other annual information relating to the activity as may\nbe agreed upon by the Comptroller General and the head of\nthe executive agency concerned.\nUnder this subsection as revised, the Comptroller General may ob-\ntain copies of annual reports without change in format, but supple-\nmented by annual financial information that in any case should be\ncontained in annual reports. Such reports are to be obtained regularly\nonly from major activities with sales of more than $100,000 a year.\nFor smaller activities, the Comptroller General may obtain the annual\nreport only upon specific request. These limitations should accommo-\ndate the major concerns of the agencies.\n12 Hearings, p. 82.\n9\nTITLE IV-EMPLOYMENT OF EXPERTS AND CONSULTANTS\nSummary\nTitle IV has two purposes. First, it provides continuing authority\nfor the Comptroller General to employ experts and consultants as au-\nthorized by 5 U.S.C. 3109. That statute provides authorization and\nprocedures for the hiring of experts and consultants by all Government\nagencies, but under its own terms it becomes operative only \"when au-\nthorized by an appropriation or other statute.' Title IV would provide\nsuch \"other statute\" on a permanent basis and make it unnecessary for\nthe Comptroller General repetitively to seek and be granted such au-\nthority in annual appropriation acts.\nSecond, title IV grants special authority for the Comptroller Gen-\neral to employ 10 experts and consultants, for periods not in excess of\n3 years, at rates up to executive level V ($36,000 a year).\nNeed\n1. Continuing authorization or employment of experts and consult-\nants has become a standard and practically \"boilerplate\" provision of\nrecent statutes establishing new agencies. Such continuing authoriza-\ntion should be extended equally to the General Accounting Office. Re-\npetitive authorization has been a regular part of the GAO annual\nappropriations for years. See, for example, Legislative Branch Appro-\npriation Act, 1974 (Public Law 93-145) and Legislative Branch\nAppropriation Act, 1969 (Public Law 90-417). Permanent authoriza-\ntion would eliminate what appears to be \"pro forma\" legislation re-\nturned each year. The Commission on Government Procurement iden-\ntified some 90 Appropriation Act provisions authorizing employment\nof experts and consultants as one of the groups of statutes which could\nbe \"condensed, simplified, and harmonized. 13\n2. In support of the authorization to employ 10 experts and con-\nsultants at executive level V rates, the Comptroller General testified\nthat GAO is unique among Federal agencies in that it is called on\nto perform tasks covering nearly the entire range of skills needed\nby the Federal Government, even though they are often required for\nonly the relatively short period it may take to complete a particular\nprogram review. He went on to conclude: 14\nThe present restrictions on the acquisition of experts and\nconsultants thus present very real obstacles for the GAO in\nits quest for the best available talent to serve the needs of\nCongress and discharge its increasingly more diverse and\ncomplex responsibilities. It is for this reason that provision\nof the proposed legislation is needed.\nYour committee recognizes that the Comptroller General, in re-\nsponding to congressional requests for studies, investigations, and\nreports on numerous complex subjects, has a special need for experts\nand consultants, and therefore provides the requested authorization.\n13 Report of the Commission on Government Procurement (Dec. 31, 1972), vol. 4, pp. 179\nand 184.\n14 Hearings, p. 34.\n10\nIn allowing compensation for up to 10 experts and consultants at level\nv, we follow the precedent in the Congressional Budget and Im-\npoundment Control Act of 1974, Public Law 93-344, section 702. This\ndeparts from the usual practice in the executive branch of compen-\nsating experts and consultants at a rate equivalent to GS-18. At pres-\nent, and for some time, GS-18 and executive level V compensation\nhas been the same ($36,000 per annum), but executive level V com-\npensation will be higher if pay schedules are adjusted. Your com-\nmittee believes that the executive level V is in keeping with the prece-\ndent of Public Law 93-344 and is justified in this instance.\nAgency Views\nTitle IV as amended is supported by the Comptroller General. The\nOffice of Management and Budget questioned the General Account-\ning Office's need to pay executive level V compensation to 10 experts\nand consultants and to exempt them from the dual compensation and\nother restrictions. 15 However, as the OMB representative recognized,\nthere are instances where employment of experts and consultants at\nexecutive level rates has been found necessary and authorized for the\nExecutive Office of the President.\nOn balance, the committee agrees with the Comptroller General that\nhis office also has. a serious problem in obtaining experts and con-\nsultants of the caliber needed for the important programs serving the\nneeds of Congress, and this problem should be alleviated to the limited\nextent provided by title IV as amended.\nCommittee Revision\nThe committee amendment revises section 401 to limit executive\nlevel V pay to 10 experts and consultants, restrict their employment\nto 3 years, and eliminate an exemption from dual compensation and\nother statutes affecting employment of personnel.\nTITLE V-GENERAL ACCOUNTING OFFICE BUILDING\nSummary\nTitle V as amended transfers custody and control of the General\nAccounting Office Building from the General Services Administra-\ntion to the Comptroller General. Other agencies occupy approximately\none-half of the building and therefore title V authorizes the Comp-\ntroller General to enter into agreements with such other agencies for\noccupancy of the building at mutually agreeable rates, with the pro-\nceeds to be credited to appropriations for operation, repair, authoriza-\ntion and maintenance of the building.\nNeed\nThe Comptroller General justifies title V as follows 16\nInsofar as the headquarters office is concerned, this would\nput GAO in a position generally comparable to the Govern-\nment Printing Office, the Library of Congress, and the\nArchitect of the Capitol.\n*\n*\n*\n*\n*\n15 Hearings, p. 105.\n16 Hearings, p. 35.\n11\nThe GAO is now the only agency of the legislative branch\nwhose headquarters space is under the jurisdiction of the\nGSA. We believe that managing our own building would be\nconsistent with the pattern established for other parts of the\nlegislative branch. Moreover, we believe that we should be\ncompletely free of any concern that GAO audit results are\naffected in any manner by differences of opinion which we\nmay have from time to time as to providing our space needs\nand the audit of GSA space activities generally.\nFor example, the implementation of the new Federal build-\ning fund in fiscal year 1975 is already proving to be quite\ncontroversial because of the increased charges which are being\nplaced upon agencies, including the GAO.\nWe believe that our status as an arm of the legislative\nbranch with responsibility for giving the Congress our objec-\ntive views with respect to programs of the executive branch\nwould be enhanced if we had responsibility for meeting our\nown space requirements.\nThe General Accounting Office estimates savings in its own budget\nof approximately $2 million a year, reflecting the difference between\nthe $5.70 a foot it cost in the past and the $6.63 a foot which is the new\nstandard level user charge fixed by the General Services Administra-\ntion as the rate equivalent to the \"approximate commercial charges\"\nprescribed by Public Law 92-313.\nAlthough your committee endorses the concept of central manage-\nment of Federal office space by the General Services Administration,\nit believes that a valid exception can be made for the headquarters\nbuilding of the General Accounting Office, which is within the legisla-\ntive branch of the Government.\nAgency Views\nThe General Services Administration, with the support of the Office\nof Management and Budget, opposes title V.¹⁷ In the view of the\nGeneral Services Administration, assignment of custody and control\nover the GAO building to the General Accounting Office, when half\nthe space is occupied by executive agencies, would be contrary to the\npurpose of Public Law 92-313 in prescribing standard level user\ncharges and establishing the public building fund.\nCommittee Revision\nWhereas your committee believes, as noted above, that a valid ex-\nception can be made for the headquarters building of the General\nAccounting Office, we do not believe that this exception should extend\nto space outside the headquarters building, including field offices. Ac-\ncordingly, the committee amendment includes deletion of a sentence\nin section 501 which would have authorized the Comptroller General\nto lease additional space in or outside of the District of Columbia.\n17 Hearings, p. 69.\n12\nTITLE VI-AUDIT OF GOVERNMENT CORPORATIONS\nTITLE VII-REVISION OF ANNUAL AUDIT REQUIREMENTS\nBoth titles VI and VII have as their purpose relaxation of the\npresent requirements for annual audits of certain Government cor-\nporations and agencies and substitution of a requirement for audit\nat least once every 3 years. The Government agencies and activities\naffected are those governed by the Government Corporation Control\nAct (31 U.S.C. 850, 851, 857, 858), the Federal Deposit Insurance Act\n(12 U.S.C. 1827 (b), (c) the Federal Crop Insurance Act (7 U.S.C.\n1513), the Housing and Urban Development Act of 1968 (12 U.S.C.\n1701y (g) the District of Columbia Redevelopment Act of 1945 (60\nStat. 801), the Federal Aviation Act of 1958 (49 U.S.C. 1537 (f)\nthe Housing Act of 1950 (12 U.S.C. 1749a (a) (2) the Federal Credit\nUnion Act (12 U.S.C. 1789 (b) (2) the General Supply Fund of the\nGeneral Services Administration (40 U.S.C. 756 (e)), the Bureau of\nEngraving and Printing Fund (31 U.S.C. 181d), the Veterans Can-\nteen Service (38 U.S.C. 4207), the Higher Education Insured Loan\nProgram (20 U.S.C. 1082 (b) (2)), and the Government Printing\nOffice (44 U.S.C. 309 (c))\nThe Comptroller General considers an audit once every 3 years gen-\nerally adequate to fulfill the purpose of congressional oversight of\nthese agencies and activities. 18 The reduction will allow him to make\nmore effective use of his resources to handle his total work load. He\nemphasizes that these provisions give him discretion to make audits\nmore frequently where he finds it necessary and in this regard he would\nconsider the special interests of Congress.\nThe committee agrees that less frequent routine audit demands on\nthe GAO would bring increased support for Congress and more effi-\ncient operations within the General Accounting Office.\nAgency Views\nThe agencies generally concur in titles VI and VII. A question\nraised by the Farm Credit Administration has been accommodated by\na committee revision.\nCommittee Revision\nThe committee amendment includes a number of technical changes\nand a revision of section 601 (c) to make clear that General Accounting\nOffice audits of mixed ownership corporations are required only as\nlong as Government funds remain invested in them.\nTITLE VII-LIMITATION OF TIME ON CLAIMS AND DEMANDS\nTitle VIII was added by the committee amendment on the recom-\nmendation of the Comptroller General. It reduces the statute of lim-\nitations for the filing of claims in the General Accounting Office from\n10 years to 6 years. This would make the General Accounting Office\nstatute of limitations consistent with that provided for the filing of\n18 Hearings, pp. 16 and 17.\n13\nsuits in the Court of Claims and the U.S. district courts (28 U.S.C.\n2501, 2401).\nAs the Comptroller General testified,19 the change will affect only\nabout 40 claims a year, but will save about $300,000 a year in record\nstorage costs. In the judgment of the committee, 6 years affords suffi-\ncient time for claimants to act, and extended protection afforded by a\n10-year statute of limitations, for about 40 claims a year, does not\nwarrant retention of records at a cost of $300,000 a year, particularly\nwhen the claimant would not be entitled to sue in court if his claim\nis rejected by the General Accounting Office.\nThe change will not take effect for 1 year after enactment of the\nbill. This provides a 1-year period of grace for the filing of claims\nafter claimants are put on notice that they will be barred by a 6-year\nstatute of limitations if they do not act promptly.\nOther agencies are not directly affected by title VIII. The commit-\ntee solicited views from the responsible committees of the American\nBar Association and the Federal Bar Association. There was not suffi-\ncient time to obtain the official views of the associations. However, a\nnumber of members expressed individual views supporting or inter-\nposing no objection to title VIII but recommending a 1-year grace\nperiod rather than a 6-month grace period as originally proposed by\nthe Comptroller General. The committee amendment accommodates\nthis recommendation.\nESTIMATED COSTS AND SAVINGS\nNo significant costs are associated with this legislation. Net savings\ncan be expected to accrue in the first year of enactment, and similar\namounts will be saved in each of the five succeeding years, according\nto information received from the General Accounting Office.\nSubstantial savings, probably in excess of $1 million annually, will\nresult from full implementation of the revised statistical sampling\nprocedures authorized in title I and the reduced period for filing claims\nin GAO provided by title VIII. Relatively small additional amounts\nwill be saved annually from workload reductions resulting from im-\nplementation of titles VI and VII relating to the audit of certain\nGovernment corporations and revolving funds.\nThere will be small additional costs incurred for salaries and fees\nof the 10 experts and consultants authorized to be employed by title\nIV. The other titles will be relatively neutral in their cost impact.\nYour committee concurs in the estimates provided by the General\nAccounting Office.\nSECTION-BY-SECTION ANALYSIS\nTITLE I-STATISTICAL SAMPLING PROCEDURES IN THE EXAMINATION OF\nVOUCHERS\nThe act of August 30, 1964 (31 U.S.C. 82b-1 (a) authorizes sta-\ntistical sampling by agencies of disbursement vouchers under $100.\nSection 101 of the bill deletes the $100 limit. Instead, it authorizes\n19 Hearings, p. 38.\nH. Rept. 1300 0 74 2\n14\nthe Comptroller General to prescribe the limit from time to time. It\nalso requires the Comptroller General to evaluate the adequacy and\neffectiveness of agency statistical sampling procedures. The new limit\nwould not be mandatory but would allow agencies discretion to use sta-\ntistical sampling procedures only to the extent they find it economical\nand effective.\nTITLE II-AUDIT OF TRANSPORTATION PAYMENTS\nTitle II includes a number of changes to provide for transfer of\nthe general responsibility for the initial auditing of transportation\npayments from the General Accounting Office to the General Serv-\nices Administration. The General Accounting Office will continue to\nhave final audit responsibility and related functions as provided by\nthe Budget and Accounting Act of 1921 (31 U.S.C. 41) and the Ac-\ncounting and Auditing Act of 1950 (31 U.S.C.65).\nParagraph 1 of section 201 of the bill amends subsection 322 (a)\nof the Transportation Act of 1940 (49 U.S.C. 66) to transfer the pre-\nliminary transportation audit responsibilities from the General Ac-\ncounting Office to the General Services Administration. It provides\nspecifically for retention of the authority of the GAO to make audits\nunder the Budget and Accounting Act of 1921 (31 U.S.C. 41) and\nthe Accounting and Auditing Act of 1950 (31 U.S.C. 65). The para-\ngraph also provides for the designation by the General Services Ad-\nministration of other agencies to conduct such audits for transporta-\ntion outside the continental United States or in other exceptional\ncases. This provides flexibility for the continuance by the General\nServices Administration of present arrangements which the GAO has\nfound necessary for the auditing of the overseas transportation pay-\nments by overseas offices and in other exceptional cases. Audits under\nsuch delegated authority must be conducted pursuant to regulations\nprescribed by the General Services Administrator. The purpose is to\nassure that carriers will be confronted SO far as practical by a common\nset of audit procedures and forms.\nParagraph 2 of section 201 of the bill makes conforming changes.\nParagraph 3 of the bill reletters existing subsections of section 322\nof the Transportation Act of 1940 and adds a new subsection (b)\nwhich authorizes carriers to request the General Accounting Office to\nreview any audit action taken by the General Services Administra-\ntion or a designated agency. Such request must be filed either within\nthe 3-year period now provided by section 322 for the filing of the\ntransportation audit claims in the General Accounting Office, or within\n6 months after the General Services Administration or other desig-\nnated agency takes action on the claim, whichever is later. In effect,\ncarriers will not have to file their claims directly with the General\nAccounting Office if they file them with the General Services Admin-\nistration or another designated agency and thereafter take an appeal\nto the General Accounting Office within 6 months after agency action\nis completed.\nSubsection 202 (a) provides for the transfer of records, property,\npersonnel, appropriations, and other funds incident to the transfer of\nthe transportation audit function. Determinations with respect thereto\n15\nare to be made jointly by the Director of the Office of Management and\nBudget and the Comptroller General after consultation with the Ad-\nministrator of General Services and, in the case of personnel, with the\nChairman of the U.S. Civil Service Commission. The latter require-\nment is intended to assure appropriate advice from the Civil Service\nCommission to safeguard the interests of transferred personnel.\nSubsection 202 (b) guarantees transferred personnel against any loss\nin pay or classification for 1 year after transfer, except for cause.\nThereafter, they are given the protection of section 5 U.S.C. 5337 to\nthe same extent as if they had remained employees of the General Ac-\ncounting Office. 5 U.S.C. 5337 provides for continuance of basic pay\nfor 2 years after an employee is reduced in grade provided he has\nserved in the same agency at the higher grade for 2 years. Thus the\n2-year qualification for continuance of basic pay in the event of a reduc-\ntion in grade will not be interrupted by the transfer from General Ac-\ncounting Office to the General Services Administration.\nSection 203 of the bill provides for the transfer of the transporta-\ntion audit function to be effective as of a date agreed upon between the\nComptroller General and the Administrator of General Services, but\nnot later than July 1, 1977. This allows 3 years to plan and prepare for\nthe transfer. In any case, personnel may not be transferred for 1 year.\nNotice of the effective date is to be published 30 days in advance in the\nFederal Register.\nTITLE III-AUDIT OF NONAPPROPRIATED FUND ACTIVITIES\nSubsection 301 (a) makes the operations and funds (including cen-\ntral funds) of nonappropriated fund activities subject to review by the\nComptroller General and gives him access to their records and prop-\nerty. As amended, the subsection describes nonappropriated fund ac-\ntivities as those authorized or operated by an agency to sell merchan-\ndise or services to military or other Government personnel and their\ndependents. By way of example, the subsection enumerates the Army\nand Air Force Exchange Service, Navy exchanges, Marine Corps ex-\nchanges, Coast Guard exchanges, exchange councils of the National\nAeronautics and Space Administration, commissaries, clubs, and the-\naters. This makes it clear that only selling activities are subject to\nGeneral Accounting Office audit under this bill, and agencies such as\nthe Smithsonian Institution and Federal credit unions are excluded.\nAlso, as amended, the provision for General Accounting Office access\nto records makes clear that it pertains only to records held by nonap-\npropriated fund activities and does not extend to records of contrac-\ntors doing business with such activities unless they are filed with a\nnonappropriated fund activity and thereby become part of its records.\nSubsection 301 (b), as amended, authorizes the Comptroller Gen-\neral to require copies of the annual report of any nonappropriated\nfund activity he designates. The designation may be made by class in\nthe case of activities having gross receipts from sales of over $100,000\na year. In other cases, the designation must be made by specific re-\nquest. If the annual report does not contain inform ation showing yearly\nfinancial operations, financial condition and cash flow, a statement of\nsuch information must be furnished to the Comptroller General to-\n16\ngether with any other information that may be agreed upon between\nthe Comptroller General and the head of the agency concerned. In ef-\nfect, there will be no new paperwork for the agency apart from fur-\nnishing copies of the annual reports of nonappropriated fund activi-\nties without change in format or content if they include such basic\nfinancial data as the agencies need to have for their own informed man-\nagement of nonappropriated fund activities.\nTITLE IV-EMPLOYMENT OF EXPERTS AND CONSULTANTS\nSection 401 first authorizes the Comptroller General to employ ex-\nperts and consultants as authorized by 5 U.S.C. 3109 at daily rates pre-\nscribed for GS-18 civil service employees. 5 U.S.C. 3109 now provides\nfor the employment of experts and consultants \"when authorized by an\nappropriation or other statute.\" Section 401 constitutes such \"other\nstatute\" and makes it unnecessary for the Comptroller General to seek\nsuch authorization repetitively every year in appropriation acts.\nSection 401 also gives the Comptroller General special authority to\nhire 10 experts and consultants for periods not exceeding 3\nyears at executive level V compensation. Specific provision for a\nterm of 3 years is necessary to overcome the limitation by 5 U.S.C.\n3109 to periods not exceeding one year. Currently there is no difference\nbetween executive level V and compensation ($36,000 a year) and\nGS-18 compensation ($36,000 a year), but the distinction may become\nsignificant in the future.\nTITLE V-GENERAL ACCOUNTING OFFICE BUILDING\nSection 501 of the bill transfers responsibility for the custody\nand control of the General Accounting Office building from the Ad-\nministrator of General Services to the Comptroller General and au-\nthorizes the Comptroller General to enter into agreements with execu-\ntive agencies for the occupancy of available space in the General Ac-\ncounting Office building at rates to be agreed upon. The proceeds of\nsuch rates will be deposited in appropriations used for the operation,\nmaintenance, repair, and alteration of space occupied by the agencies.\nTITLE VI-AUDITS OF GOVERNMENT CORPORATIONS\nThis title contains a series of amendments to current statutes for\nthe purpose of changing the requirement for the audit of Government\ncorporations from once every year to once every 3 years.\nSubsection 601 (1) amends section 105 of the Government Corpora-\ntion Control Act (31 U.S.C. 850) as of July 1, 1974, to require an audit\nof each wholly owned Government corporation at least once every 3\nyears.\nSubsection 601 (2) amends section 106 of such act (31 U.S.C. 851) to\ndelete a requirement for a report to Congress of an annual audit of\nwholly owned Government corporations and to substitute a require-\nment for submission of an audit report within 61/2 months after the\nlast year covered by a General Accounting Office audit.\n17\nSubsections 601 (3) and (4) amend sections 202 and 203 of the\nGovernment Corporation Control Act (31 U.S.C. 857, 858) to pro-\nvide the same treatment for mixed ownership Government corpora-\ntions as that provided for wholly owned Government corporations\nunder subsections (1) and (2) of section 601.\nSection 602 amends subsections 17 (b) and 17 (c) of the Federal\nDeposit Insurance Act (12 U.S.C. 1827 (b), (c)), to provide the same\ntreatment for the Federal Deposit Insurance Corporation.\nSection 603 amends section 513 of the Federal Crop Insurance Act\n(7 U.S.C. 1513) to delete the requirement for an annual audit of the\nFederal Crop Insurance Corporation by the General Accounting\nOffice. That corporation would then be subject to the requirement of\nan audit at least once every 3 years under the Government Corporation\nControl Act as amended.\nSection 604 amends subsection 107 (g) of the Housing and Urban\nDevelopment Act of 1968 (12 U.S.C. 1701y (g)) to provide for audit\nonce every 3 years of the National Home Ownership Foundation.\nSection 605 of the bill amends section 17 of the District of Columbia\nRedevelopment Act of 1945 (60 Stat. 801) by deleting the word \"an-\nnual\" from the requirement for General Accounting Office audit of\nthe National Capitol Housing Authority. In effect, the frequency of\naudit would be determined by the Comptroller General.\nTITLE VII-REVISION OF ANNUAL AUDIT REQUIREMENTS\nTitle VII eliminates requirements for annual audits of certain re-\nvolving funds of Government agencies and makes them subject to audit\nat the discretion of the Comptroller General in accordance with the\nAccounting and Auditing Act of 1950 (31 U.S.C. 65).\nSection 701, as technically amended, effects such change for the gen-\neral supply fund of the General Services Administration by amending\nsection 109 (e) of the Federal Property and Administrative Services\nAct of 1949 (40 U.S.C. 756 (e))\nSection 702 effects such change for the war risk insurance fund of\nthe Department of Transportation by amending section 1307 (f) of\nthe Federal Aviation Act of 1958 (49 U.S.C. 1537 (f)\nSection 703 effects such change for the Bureau of Engraving and\nPrinting fund of the Department of the Treasury by amending a\nstatute codified at 31 U.S.C. 181d.\nSection 704 effects such change for the Veterans Canteen fund of\nthe Veterans Administration by amending 38 U.S.C. 4207.\nSection 705 effects such change for the student loan insurance fund\nof the Department of Health, Education, and Welfare by amending\nsection 432 (b) (2) of the Higher Education Act of 1965 (20 U.S.C.\n1082 (b) (2)\nSection 706 effects such change for the urban renewal fund and\nthe college housing fund of the Department of Housing and Urban\nDevelopment by amending section 402 (a) (2) of the Housing Act of\n1950 (12 U.S.C. 1749a (a) (2) This change will affect programs for\nhousing for elderly or handicapped (12 U.S.C. 1701q) ; rehabilitation\nloans (42 U.S.C. 1452b) ; public facility loans (42 U.S.C. 1494) ; new\n18\ncommunity assistance (42 U.S.C. 3912) ; low rent housing (42 U.S.C.\n1417a) ; riot insurance (12 U.S.C. 1749bbb-17) ; and transportation\ngrants (49 U.S.C. 1609).\nSection 707 effects such change for the National Credit Union Ad-\nministration fund by amending section 209 (b) (2) of the Federal\nCredit Union Act (12 U.S.C. 1789 (b) (2)\nSections 708 effects such change for the Government Printing Office\nfund by amending 44 U.S.C. 309 (c).\nTITLE VILI-LIMITATION OF TIME ON CLAIMS AND DEMAND\nSection 801 amends section 1 of the act of October 9, 1940 (31 U.S.C.\n237) to reduce the period of time allowed for the filing of claims in the\nGeneral Accounting Office from \"ten full years\" to \"six years.\" The\nchange is to be effective 1 year after enactment of the bill. Thereafter\nclaimants will have only 6 years for the filing of claims in the General\nAccounting Office before they are barred. The 6 years SO provided is\nthe same as that allowed for the filing of suits against the United\nStates in the Court of Claims under 28 U.S.C. 2501 and in the U.S.\ndistrict courts under 28 U.S.C. 2401. Postponent of the effective date\nfor 1 year is provided to assure that claimants will have adequate\nnotice and time for the filing of their claims before they are barred\nby the curtailed statute of limitations.\nCHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED\nIn compliance with clause 3 of rule XIII of the Rules of the House\nof Representatives, changes in existing law made by the bill, as re-\nported, are shown as follows (existing law proposed to be omitted is\nenclosed in black brackets, new matter is printed in italic, existing law\nin which no change is proposed is shown in roman) :\nAcT OF AUGUST 30, 1964\nAN ACT To permit the use of statistical sampling procedures in the examination\nof vouchers\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, (a) [That, when-\never\nWhenever the head of any department or agency of the Govern-\nment or the [Commissioners] Commissioner of the District of Colum-\nbia determines that economies will result therefrom, such agency head\nor the [Commissioners] Commissioner may prescribe the use of ade-\nquate and effective statistical sampling procedures in the examination\nof disbursement vouchers [for amounts of less than $100] not exceed-\ning such amounts as may from time to time be prescribed by the\nComptroller General of the United States; and no certifying or dis-\nbursing officer acting in good faith and in conformity with such pro-\ncedures shall be held liable with respect to any certification or pay-\nment made by him on a voucher which was not subject to specific\nexamination because of the prescribed statistical sampling procedure,\n[provided that] so long as such officer and his department or agency\nhave diligently pursued collection action to recover the illegal, im-\n19\nproper, or incorrect payment in accordance with procedures prescribed\nby the Comptroller General. The Comptroller General shall include\nin his reviews of accounting systems an evaluation of the adequacy and\neffectiveness of procedures established under the authority of this Act.\n*\n*\n*\n*\n*\n*\n*\nSECTION 322 OF THE TRANSPORTATION Act OF 1940\nDEDUCTION OF OVERPAYMENTS\nSEC. 322. (a) [Subject to such standards as shall be promulgated\njointly by the Secretary of the Treasury and the Comptroller General\nof the United States, payment for transportation of persons or prop-\nerty for or on behalf of the United States by any carrier or forwarder\nshall be made upon presentation of bills therefor, prior to audit or\nsettlement by the General Accounting Office, but the right is reserved\nto the United States Government to deduct the amount of any over-\ncharge by any carrier or forwarder from any amount subsequently\nfound to be due such carrier or forwarder.] Payment for transporta-\ntion of persons or property for or on behalf of the United States by\nany carrier or forwarder shall be made upon presentation of bills\ntherefor prior to audit by the General Services Administration, or by\nany other executive agency designated by the Administrator of Gen-\neral Services to conduct such audit (pursuant to regulations pre-\nscribed by him) in cases involving transportation outside the conti-\nnental United States or in other exceptional cases. The right is re-\nserved to the United States Government to deduct the amount of any\novercharge by any carrier or forwarder from any amount subsequently\nfound to be due such carrier or forwarder. The provisions of this sub-\nsection shall not affect the authority of the General Accounting Office\nto make audits in accordance with the Budget and Accounting Act,\n1921 (31 U.S.C. 41), and the Accounting and Auditing Act of 1950\n(31 U.S.C. 65). The term \"overcharges\" shall be deemed to mean\ncharges for transportation services in excess of those applicable\nthereto under tariffs lawfully on file with the Interstate Commerce\nCommission, the Civil Aeronautics Board, the Federal Maritime Com-\nmission, and any State transportation regulatory agency, and charges\nin excess of those applicable thereto under rates, fares, and charges\nestablished pursuant to section 22 of the Interstate Commerce Act, as\namended, or other equivalent contract, arrangement, or exemption\nfrom regulation: Provided, however, That such deductions shall be\nmade within three years (not including any time of war) from the\ntime of payment of bills: Provided further, That every claim [cog-\nnizable by the General Accounting Office] for charges for transporta-\ntion within the purview of this section shall be forever barred unless\nsuch claim shall be received in the General [Accounting Office] Serv-\nices Administration or an executive agency designated by the Admin-\nistrator of General Services within three years (not including any\ntime of war) from the date of (1) accrual of the cause of action\nthereon, or (2) payment of charges for the transportation involved,\n20\nor (3) subsequent refund for overpayment of such charges, or (4)\ndeduction made pursuant to this section, whichever is later.\n(b) Nothing in subsection (a) hereof shall be deemed to prevent any\ncarrier or forwarder from requesting the Comptroller General to\nreview the action on his claim by the General Services Administration\nor an executive agency designated by the Administrator of General\nServices. Such request shall be forever barred unless received in the\nGeneral Accounting Office within six months (not including any time\nof war) from the date the action was taken or within the periods of\nlimitation specified in the second proviso in subsection (a) of this\nsection, whichever is later.\n[(b)] (c) Pursuant to regulations prescribed by the head of a Gov-\nernment agency or his designee and in conformity with such standards\nas shall be promulgated jointly by the Secretary of the Treasury and\nthe Comptroller General of the United States, bills for passenger\nor freight transportation services to be furnished the United States\nby any carrier or forwarder may be paid in advance of completion of\nthe services, without regard to section 3648 of the Revised Statutes,\nas amended (31 U.S.C. 529) : Provided, That such carrier or forwarder\nhas issued the usual ticket, receipt, bill of lading, or equivalent docu-\nment covering the service involved, subject to later recovery by deduc-\ntion or otherwise of any payments made for any services not received\nas ordered by the United States.\n[(c)] (d) The term \"head of a Government agency\" means any in-\ndividual or group of individuals having final decisionmaking responsi-\nbility for any department, commission, board, service, Government\ncorporation, instrumentality, or other establishment or body in the\nUnited States Government.\nGOVERNMENT CORPORATION CONTROL ACT\n*\n*\n*\n*\n*\n*\n*\nTITLE I-WHOLLY OWNED GOVERNMENT\nCORPORATIONS\n*\n*\n*\n*\n*\n*\n*\nSEC. 105. The financial transactions of wholly owned Government\ncorporations shall be audited by the General Accounting Office in\naccordance with the principles and procedures applicable to com-\nmercial corporate transactions and under such rules and regulations\nas may be prescribed by the Comptroller General of the United States:\nProvided, That such rules and regulations may provide for the reten-\ntion at the offices of such corporations, in whole or in part, of any\naccounts of accountable officers, covering corporate financial transac-\ntions, which are required by existing law to be settled and adjusted in\nthe General Accounting Office, and for the settlement and adjust-\nment of such accounts in whole or in part upon the basis of examina-\ntions in the course of the audit herein provided, but nothing in this\nproviso shall be construed as affecting the powers reserved to the\nTennessee Valley Authority in the Act of November 21, 1941 (55\n21\nStat. 775). The audit shall be conducted at the place or places where\nthe accounts of the respective corporations are normally kept. The\nrepresentatives of the General Accounting Office shall have access to\nall books, accounts, financial records, reports, files, and all other papers,\nthings, or property belonging to or in use by the respective corpora-\ntions and necessary to facilitate the audit, and they shall be afforded\nfull facilities for verifying transactions with the balances or securi-\nties held by depositaries, fiscal agents, and custodians. The audit shall\nbegin with the first fiscal year commencing after the enactment of\nthis Act. The audit of the Federal Savings and Loan Insurance Cor-\nporation shall be conducted on a calendar year basis. Effective July 1,\n1974, each wholly owned Government corporation shall be audited at\nleast once every three years.\nSEC. 106. [A report of each such audit for a fiscal year shall be made\nby the Comptroller General to the Congress not later than January 15\nfollowing the close of such fiscal year (and a report of each such audit\nfor a calendar year shall be made by the Comptroller General to the\nCongress not later than July 15 following the close of such calendar\nyear) A report of each audit conducted under section 105 shall be\nmade by the Comptroller General to the Congress not later than six\nand one-half months following the close of the last year covered by\nsuch audit. The report shall set forth the scope of the audit and shall\ninclude a statement (showing intercorporate relations) of assets and\nliabilities, capital and surplus or deficit; a statement of surplus or\ndeficit analysis; a statement of income and expenses; a statement of\nsources and application of funds; and such comments and information\nas may be deemed necessary to keep Congress informed of the opera-\ntions and financial condition of the several corporations, together with\nsuch recommendations with respect thereto as the Comptroller Gen-\neral may deem advisable, including a report of any impairment of\ncapital noted in the audit and recommendations for the return of such\nGovernment capital or the payment of such dividends as, in his judg-\nment, should be accomplished. The report shall also show specifically\nany program, expenditure, or other financial transaction or under-\ntaking observed in the course of the audit, which, in the opinion of the\nComptroller General, has been carried on or made without authority\nof law. A copy of each report shall be furnished to the President, to\nthe Secretary of the Treasury, and to the corporation concerned at the\ntime submitted to the Congress.\n*\n*\nTITLE I-MIXED-OWNERSHIP GOVERNMENT\nCORPORATIONS\n*\n*\n*\n*\n*\n*\nSEC. 202. The financial transactions of mixed-ownership Govern-\nment corporations for any period during which Government capital\nhas been invested therein shall be audited by the General Accounting\nOffice in accordance with the principles and procedures applicable to\ncommercial corporate transactions and under such rules and regula-\ntions as may be prescribed by the Comptroller General of the United\nStates. The audit shall be conducted at the place or places where the\n22\naccounts of the respective corporations are normally kept. The rep-\nresentatives of the General Accounting Office shall have access to all\nbooks, accounts, financial records, reports, files, and other papers,\nthings, or property belonging to or in use by the respective corpo-\nrations and necessary to facilitate the audit, and they shall be afforded\nfull facilities for verifying transactions with the balances or securities\nheld by depositaries, fiscal agents, and custodians. The audit shall\nbegin with the first fiscal year commencing after the enactment of this\nAct. The audit of the Federal home loan banks shall be conducted on a\ncalendar year basis. ffective July 1, 1974, each mixed-ownership Gov-\nernment corporation shall be audited as provided herein at least once in\nevery three years.\nSEC. 203. [A report of each such audit for a fiscal year shall be\nmade by the Comptroller General to the Congress not later than\nJanuary 15 following the close of such fiscal year (and a report of\neach such audit for a calendar year shall be made by the Comptroller\nGeneral to the Congress not later than July 15 following the close of\nsuch calendar year) A report of each audit conducted under section\n202 shall be made by the Comptroller General to the Congress not\nlater than six and one-half months following the close of the last year\ncovered by such audit. The report shall set forth the scope of the\naudit and shall include a statement (showing intercorporate relations)\nof assets and liabilities, captal and surplus or deficit; a statement of\nsurplus or deficit analysis; a statement of income and expense; a\nstatement of sources and application of funds; and such comments and\ninformation as may be deemed necessary to keep Congress informed\nof the operations and financial condition of, and the use of Govern-\nment capital by, each such corporation, together with such recom-\nmendations with respect thereto as the Comptroller General may\ndeem advisable, including a report of any impairment of capital or\nlack of sufficient capital noted in the audit and recommendations for\nthe return of such Government capital or the payment of such divi-\ndends as, in his judgment, should be accomplished. The report shall\nalso show specifically any program, expenditure, or other financial\ntransaction or undertaking observed in the course of the audit, which,\nin the opinion of the Comptroller General, has been carried on or\nmade without authority of law. A copy of each report shall be fur-\nnished to the President, to the Secretary of the Treasury, and to the\ncorporation concerned at the time submitted to the Congress.\n*\n*\n*\n*\n*\n*\nSECTION 17 OF THE FEDERAL DEPOSIT INSURANCE ACT\nSEC. 17. (a) The Corporation shall annually make a report of its\noperations to the Congress as soon as practicable after the 1st day\nof January in each year.\n(b) The financial transactions of the Corporation shall be audited\nby the General Accounting Office in accordance with the principles\nand procedures applicable to commercial corporate transactions and\nunder such rules and regulations as may be prescribed by the Comp-\ntroller General of the United States. The audit shall be conducted at\n23\nthe place or places where accounts of the Corporation are normally\nkept. The representatives of the General Accounting Office shall have\naccess to all books, accounts, records, reports, files, and all other papers,\nthings, or property belonging to or in use by the Corporation pertain-\ning to its financial transactions and necessary to facilitate the audit,\nand they shall be afforded full facilities for verifying transactions\nwith the balances or securities held by depositaries, fiscal agents, and\ncustodians. All such books, accounts, records, reports, files, papers,\nand property of the Corporation shall remain in possession and cus-\ntody of the Corporation. The audit shall begin with financial transac-\ntions occurring on and after August 31, 1948. The Corporation shall\nbe audited at least once in every three years.\n(c)\n[A report of the audit for each fiscal year ending on June 30\nshall be made by the Comptroller General to the Congress not later\nthan January 15 following the close of such fiscal year. On or before\nDecember 15 following such fiscal year the Comptroller General shall\nfurnish the Corporation a short form report showing the financial\nposition of the Corporation at the close of the fiscal year. A report\nof each audit conducted under subsection (b) of this section shall be\nmade by the Comptroller General to the Congress not later than six\nand one-half months following the close of the last year covered by\nsuch audit. The report to the Congress shall set forth the scope of the\naudit and shall include a statement of assets and liabilities and surplus\nor deficit; a statement of surplus or deficit analysis; a statement of\nincome and expenses; a statement of sources and application of funds\nand such comments and information as may be deemed necessary to\ninform Congress of the financial operations and condition of the Cor-\nporation, together with such recommendations with respect thereto\nas the Comptroller General may deem advisable. The report shall also\nshow specifically any program, expenditure, or other financial trans-\naction or undertaking observed in the course of the audit, which, in the\nopinion of the Comptroller General, has been carried on or made with-\nout authority of law. A copy of each report shall be furnished to the\nPresident, to the Secretary of the Treasury, and to the Corporation at\nthe time submitted to the Congress.\n*\n*\n*\n*\nSECTION 513 OF THE FEDERAL CROP INSURANCE ACT\nACCOUNTING BY CORPORATION\nSEC. 513. The Corporation shall at all times maintain complete\nand accurate books of account and shall file annually with the Secre-\ntary of Agricuture a complete report as to the business of the Cor-\nporation. The financial transactions of the Corporation shall be\naudited at least once each year by the General Accounting Office for\nthe sole purpose of making a report to Congress, together with such\nrecommendations as the Comptroller General of the United States\nmay deem advisable: Provided, That such report shall not be made\nuntil the Corporation shall have had reasonable opportunity to\nexamine the exceptions and criticisms of the Comptroller General or\n24\nthe General Accounting Office, to point out errors therein, explain\nor answer the same, and to file a statement which shall be submitted\nby the Comptroller General with his report.]\nSECTION 107 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968\nNATIONAL HOMEOWNERSHIP FOUNDATION\nSEC. 107. (a)\n*\n*\n*\n*\n*\n*\n*\n*\n*\n(g) (1) The financial transactions of the Foundation shall be\naudited by the General Accounting Office in accordance with the prin-\nciples and procedures applicable to commercial corporate transactions\nand under such rules and regulations as may be prescribed by the\nComptroller General of the United States. The representatives of the\nGeneral Accounting Office shall have access to all books, accounts, fi-\nnancial records, reports, files, and all other papers, things, or property\nbelonging to or in use by the Foundation and necessary to facilitate the\naudit, and they shall be afforded full facilities for verifying transac-\ntions with the balances or securities held by depositories, fiscal agents,\nand custodians. The audit shall cover the fiscal year corresponding to\nthat of the United States Government. Such audit shall be made at\nleast once every three years.\n(2) A report of each such audit shall be made by the Comptroller\nGeneral to the Congress not later than [January 15] six and one-half\nmonths following the close of the [fiscal year for which the audit was\nmade] last year covered by such audit. The report shall set forth\nthe scope of the audit and shall include a statement of assets and\nliabilities, capital, and surplus or deficit; a statement of sources and\napplication of funds; and such comments and information as may be\ndeemed necessary to keep the Congress informed of the operations and\nfinancial condition of the Foundation, together with such recom-\nmendations with respect thereto as the Comptroller General may deem\nadvisable. The report shall also show specifically any program, ex-\npenditure, or other financial transaction or undertaking, observed in\nthe course of the audit, which, in the opinion of the Comptroller Gen-\neral, has been carried on or made without authority of law. A copy of\neach report shall be furnished to the President and to the Foundation\nat the time submitted to the Congress.\n*\n*\n*\n*\n*\n*\n*\nSECTION 17 OF THE DISTRICT OF COLUMBIA REDEVELOPMENT\nACT OF 1945\nACQUISITION UNDER DISTRICT OF COLUMBIA ALLEY DWELLING ACT\nSEC. 17. From and after the termination of the period of one year,\nbeginning with the date of the approval of this Act, all authority\ngranted by the Act known as the District of Columbia Alley Dwelling\n25\nAct, approved June 12, 1934, as amended, to acquire, by purchase,\ncondemnation, or gift, lands, buildings and structures, or any interest\ntherein, is hereby transferred to and vested in the Agency created by\nthis Act. During said one-year period said authority may be exer-\ncised by the National Capital Housing Authority only for projects\nthat shall have been approved by the Planning Commission and the\nDistrict Commissioners: Provided, however, That failure of the\nPlanning Commission or the District Commissioners to approve or\ndisapprove in writing within sixty days after the submission by the\nNational Capital Housing Authority shall be equivalent to a formal\napproval. Nothing contained in said Alley Dwelling Act or in this\nAct shall be interpreted as precluding the inclusion at any time of\nany alley or inhabited alley or alley dwelling or dwelling or square\ncontaining an inhabited alley in a project area to be planned, acquired,\nand disposed of under the provisions of this Act. Any real property\nacquired by the Agency under the authority of the Alley Dwelling\nAct may be transferred or may be sold or leased by the Agency as\nprovided in this Act for real property acquired for a project area\nredevelopment. The National Capital Housing Authority is hereby\ndeclared to be a redevelopment company and is hereby granted the\npower to purchase or lease redevopment areas or parts thereof from\nthe Agency in accordance with the provisions of this Act. The\nNational Capital Housing Authority shall keep regular books of\naccount in accordance with standard auditing practices, covering all\nproperties operated by it, showing detailed construction costs, manage-\nment costs, repairs, maintenance, other operating costs, rents, subsidies,\ngrants, allowances and exemptions; such books shall be subject to\n[annual] audit by the General Accounting Office; and the annual\nreport of the National Capital Houing Authority shall include a sum-\nmary of all transactions covered by such books and shall be made avail-\nable to the public upon request.\nSECTION 109 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE\nSERVICES ACT OF 1949\nGENERAL SUPPLY FUND\nSEC. 109. (a) ***\n*\n*\n*\n*\n*\n*\n[(e) The Comptroller General of the United States shall make an\nannual audit of the General Supply Fund as of June 30, and there\nshall be covered into the United States Treasury as miscellaneous\nreceipts anv surplus found therein, all assets, liabilities, and prior\nlosses considered, above the amounts transferred or appropriated to\nestablish and maintain said fund, and the Comptroller General shall\nreport to the Congress annually the results of the audit, together with\nsuch recommendations as he may have regarding the status and oper-\nations of the fund.]\n(e) (1) As of June 30 of each year, there shall be covered into the\nUnited States Treasury as miscellaneous receipts any surplus in the\nGeneral Supply Fund, all assets, liabilities, and prior losses considered,\n26\nabove the amounts transferred or appropriated to establish and main-\ntain said fund.\n(2) The Comptroller General shall make audits of the General\nSupply Fund in accordance with the provisions of the Accounting and\nAuditing Act of 1950 and make reports on the results thereof.\n*\n*\n*\n*\n*\n*\n*\nSECTION 1307 OF THE FEDERAL AVIATION ACT OF 1958\nADMINISTRATIVE POWERS OF SECRETARY\nRegulatory and Settlement\nSEC. 1307. (a)\n*\n*\n*\n*\n*\n*\n*\nBudget Program and Accounts\n(f) The Secretary, in the performance of, and with respect to, the\nfunctions, powers, and duties vested in him by this title, shall prepare\nannually and submit a budget program as provided for wholly owned\nGovernment corporations by the Government Corporation Control\nAct, as amended (59 Stat. 597; 31 U.S.C. 841). The Secretary shall\nmaintain [an integral set of accounts which shall be audited annually\nby the General Accounting Office in accordance with principles and\nprocedures applicable to commercial transactions as provided by the\nsaid Government Corporation Act: a. set of accounts which shall be\naudited by the Comptroller General in accordance with the provisions\nof the Accounting and Auditing Act of 1950: Provided, That, because\nof the business activities authorized by this title, the Secretary may\nexercise the powers conferred in said title, perform the duties and\nfunctions, and make expenditures required in accordance with com-\nmercial practice in the aviation insurance business, and the General\nAccounting Office shall allow credit for such expenditures when shown\nto be necessary because of the nature of such authorized activities.\n*\n*\n*\n*\n*\n*\n*\nSECTION 6 OF THE ACT OF AUGUST 4, 1950\nAN ACT To provide for financing the operations of the Bureau of Engraving\nand Printing, Treasury Department, and for other purposes\n*\n*\n*\n*\n*\n*\n*\nSEC. 6. The financial transactions, accounts, and reports of the fund\nshall be audited on an annual basis by the [General Accounting Office\nand a copy of each report on audit shall be furnished promptly to the\nPresident, the Congress, and the Secretary.] Comptroller General in\naccordance with the provisions of the Accounting and Auditing Act\nof 1950.\n27\nSECTION 4207 OF TITLE 38, UNITED STATES CODE\nCHAPTER 75-VETERANS' CANTEEN SERVICE\n*\n*\n*\n*\n*\n*\n*\n§ 4207. Audit of Accounts\nThe Service shall maintain [an integral] a set of accounts which\nshall be audited [annually by the General Accounting Office in accord-\nance with the principles and procedures applicable to commercial\ntransactions as provided by section 841-869 of title 31. No other audit\nshall be required.] by the Comptroller General in accordance with the\nprovisions of the Accounting and Auditing Act of 1950.\nSECTION 432 OF THE HIGHER EDUCATION ACT OF 1965\nLEGAL POWERS AND RESPONSIBILITIES\nSEC. 432. (a) ***\n*\n*\n*\n*\n*\n*\n*\n(b) The Commissioner shall, with respect to the financial operations\narising by reason of this part-\n(1) prepare annually and submit a budget program as pro-\nvided for wholly owned Government corporations by the Gov-\nernment Corporation Control Act; and\n(2) maintain with respect to insurance under this part [an in-\ntegral] a set of accounts, which shall be audited [annually] by the\n[Genera] Accounting Office in accordance with principles and\nprocedures applicable to commercial corporate transactions, as\nprovided by section 105 of the Government Corporation Control\nAct.] Comptroller General in accordance with the provisions of\nthe Accounting and Auditing Act of 1950, except that the trans-\nactions of the Commissioner, including the settlement of insurance\nclaims and of claims for payments pursuant to section 428, and\ntransactions related thereto and vouchers approved by the Com-\nmissioner in connection with such transactions, shall be final and\nconclusive upon all accounting and other officers of the Govern-\nment.\nSECTION 402 OF THE HOUSING ACT OF 1950\nTITLE IV-HOUSING FOR EDUCATIONAL INSTITUTIONS\n*\n*\n*\n*\n*\n*\n*\nGENERAL PROVISIONS\nSEC. 402. (a) In the performance of, and with respect to, the func-\ntions, powers, and duties vested in him by this title, the Secretary\nnotwithstanding the provisions of any other law, shall-\n28\n(1) prepare annually and submit a budget program as provided\nfor wholly owned Government corporations by the Government\nCorporation Control Act, as amended; and\n(2) maintain [an integral] a set of accounts which shall be\naudited [annually] by the General Accounting Office] Comp-\ntroller General in accordance with the [principles and procedures\napplicable to commercial transactions as provided by the Govern-\nment Corporation Control Act, as amended, and no other audit\nshall be required] provisions of the Accounting and Auditing Act\nof 1950: Provided, That such financial transactions of the Secre-\ntary] Administrator as the making of loans and vouchers ap-\nproved by the [Secretary] Administrator in connection with such\nfinancial transactions shall be final and conclusive upon all officers\nof the Government.\n*\n*\n*\n*\n*\n*\n*\nSECTION 209 OF THE FEDERAL CREDIT UNION ACT\nADMINISTRATIVE PROVISIONS\nSEC. 209. (a) ***\n*\n*\n*\n*\n*\n*\n*\n(b) With respect to the financial operations arising by reason of\nthis title, the Administrator shall-\n(1) prepare annually and submit a business-type budget as\nprovided for wholly owned Government corporations by the\nGovernment Corporation Control Act; and\n(2) maintain an integral set of accounts, which shall be audited\n[annually] by the General Accounting Office in accordance with\nprinciples and procedures applicable to commercial corporate\ntransactions, as provided by section 105 of the Government Cor-\nporation Control Act.\nSECTION 309 OF TITLE 44, UNITED STATES CODE\n§ 309. Revolving fund for operation and maintenance of Govern-\nment Printing Office: capitalization; reimbursements\nand credits; accounting and budgeting; reports\n(a)\n*\n*\n*\n*\n*\n*\n*\n*\n*\n*\n(c) An adequate system of accounts for the fund shall be maintained\non the accrual method, and financial reports prepared on the basis of\nthe accounts. The Public Printer shall prepare and submit an annual\nbusiness-type budget program for the operations under this fund.\n[The General Accounting Office shall audit the activities of the Gov-\nernment Printing Office and furnish an audit report annually to the\nCongress and the Public Printer.] The Comptroller General shall\naudit the activities of the Government Printing Office at least once\nevery three years and shall furnish reports of such audits to the Con-\n29\ngress and the Public Printer. For these purposes the Comptroller\nGeneral shall have such access to the records, files, personnel, and\nfacilities of the Government Printing Office as he considers necessary.\n(EFFECTIVE ONE YEAR AFTER ENACTMENT OF THE\nGENERAL ACCOUNTING OFFICE ACT OF 1974)\nSECTION 1 OF THE ACT OF OCTOBER 9, 1940\nAN ACT Providing for the barring of claims against the United States\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, That every claim or\ndemand (except a claim or demand by any State, Territory, possession\nor the District of Columbia) against the United States cognizable by\nthe General Accounting Office under section 305 of the Budget and\nAccounting Act of June 10, 1921 (42 Stat. 24), and the Act of April\n10, 1928 (45 Stat. 413), shall be forever barred unless such claim,\nbearing the signature and address of the claimant or of an authorized\nagent or attorney, shall be received in said office within [ten full] six\nyears after the date such claim first accrued: Provided, That when a\nclaim of any person serving in the military or naval forces of the\nUnited States accrues in time of war, or when war intervenes within\nfive years after its accrual, such claim may be presented within five\nyears after peace is established.\nAPPENDIX\nTEXT OF COMMITTEE BILL AS REPORTED\nThis Act may be cited as the \"General Accounting Office Act of\n1974.\"\nTITLE I-STATISTICAL SAMPLING PROCEDURES IN\nTHE EXAMINATION OF VOUCHERS\nSEC. 101. Subsection (a) of the Act entitled \"An Act to permit the\nuse of statistical sampling procedures in the examination of vouchers\",\napproved August 30, 1964 (31 U.S.C. 82b-1(a)), is amended to read\nas follows:\n\"(a) Whenever the head of any department or agency of the Gov-\nernment or the Commissioner of the District of Columbia determines\nthat economies will result therefrom, such agency head or the Commis-\nsioner may prescribe the use of adequate and effective statistical sam-\npling procedures in the examination of disbursement vouchers not ex-\nceeding such amounts as may from time to time be prescribed by the\nComptroller General of the United States; and no certifying or dis-\nbursing officer acting in good faith and in conformity with such pro-\ncedures shall be held liable with respect to any certification or payment\nmade by him on a voucher which was not subject to specific examina-\ntion because of the prescribed statistical sampling procedure, SO long as\nsuch officer and his department or agency have diligently pursued col-\nlection action to recover the illegal, improper, or incorrect payment in\naccordance with procedures prescribed by the Comptroller General.\nThe Comptroller General shall include in his reviews of accounting\nsystems an evaluation of the adequacy and effectiveness of procedures\nestablished under the authority of this Act.\"\nTITLE II-AUDIT OF TRANSPORTATION PAYMENTS\nSEC. 201. Section 322 of the Transportation Act of 1940 (49 U.S.C.\n66) is amended-\n(1) by striking out the first sentence of subsection (a) and in-\nserting in lieu thereof \"Pavment for transportation of persons\nor property for or on behalf of the United States by any carrier\nor forwarder shall be made upon presentation of bills therefor\nprior to audit by the General Services Administration, or by any\nother executive agency designated by the Administrator of Gen-\neral Services to conduct such audit (pursuant to regulations pre-\nscribed by him) in cases involving transportation outside the\ncontinental United States or in other exceptional cases. The right\n(31)\n32\nis reserved to the United States Government to deduct the amount\nof any overcharge by any carrier or forwarder from any amount\nsubsequently found to be due such carrier or forwarder. The pro-\nvisions of this subsection shall not affect the authority of the Gen-\neral Accounting Office to make audits in accordance with the\nBudget and Accounting Act, 1921 (31 U.S.C. 41), and the Ac-\ncounting and Auditing Act of 1950 (31 U.S.C. 65)\n(2) in the second proviso of subsection (a), by striking out\n\"cognizable by the General Accounting Office\" and by striking out\n\"received in the General Accounting Office\" and inserting in lieu\nof the latter \"received in the General Services Administration or\nan executive agency designated by the Administrator of General\nServices\"; and\n(3) by redesignating subsections (b) and (c) as subsections (c)\nand (d), respectively, and by inserting the following new sub-\nsection (b) :\n(b) Nothing in subsection (a) hereof shall be deemed to prevent\nany carrier or forwarder from requesting the Comptroller General\nto review the action on his claim by the General Services Administra-\ntion or an executive agency designated by the Administrator of Gen-\neral Services. Such request shall be forever barred unless received in\nthe General Accounting Office within six months (not including any\ntime of war) from the date the action was taken or within the periods\nof limitation specified in the second proviso in subsection (a) of this\nsection, whichever is later.\".\nSEC. 202. (a) Incident to the transfer of functions pursuant to the\namendments made by section 201 of this Act, there shall be transferred\nto such agency such records, property, personnel, appropriations, and\nother funds of the General Accounting Office as the Comptroller Gen-\neral and the Director of the Office of Management and Budget shall\njointly determine after consultation with the Administrator of Gen-\neral Services and, with respect to personnel, with the Chairman of\nthe United States Civil Service Commission.\n(b) Personnel transferred pursuant to subsection (a) of this section\nshall not be reduced in classification or compensation for one year\nafter such transfer, except for cause. After such one year period, each\nperson transferred pursuant to subsection (a) shall be subject to the\nprovisions of section 5337 of title 5, United States Code, as if such\nperson had continued to be an employee of the General Accounting\nOffice.\nSEC. 203. The transfer of functions pursuant to the amendments\nmade by section 201 of this Act shall be fully effected not later than\nJuly 1, 1977, or at such earlier time as is agreed upon by the Comp-\ntroller General and the Administrator of General Services. Notice of\nthe effective date of the transfer shall be published in the Federal\nRegister not less than thirty days in advance thereof. No transfer of\npersonnel pursuant to this title shall be effected prior to July 1, 1975.\nTITLE III-AUDIT OF NONAPPROPRIATED FUND\nACTIVITIES\nSEC. 301. (a) The (1). operations and funds (including central\nfunds) of nonappropriated fund and related activities authorized or\n33\noperated by an executive agency to sell merchandise or services to\nmilitary or other Government personnel and their dependents, such as\nthe Army and Air Force Exchange Service, Navy Exchanges, Marine\nCorps Exchanges, Coast Guard Exchanges, Exchange Councils of the\nNational Aeronautics and Space Administration, commissaries, clubs,\nand theaters, (2) systems of accounting and internal controls of such\nfunds and activities, and (3) any internal or independent audits or\nreviews of such funds and activities shall, unless otherwise provided by\nlaw, be subject to review by the Comptroller General of the United\nStates in accordance with such principles and procedures and under\nsuch rules and regulations as he may prescribe. The Comptroller Gen-\neral and his duly authorized representatives shall have access to those\nbooks, accounts, records, documents, reports, files, and other papers,\nthings, or property relevant to funds and activities within this subsec-\ntion as are deemed necessary by the Comptroller General.\n(b) When required by the Comptroller General for such nonappro-\npriated fund and related activities with gross receipts from sales of\nmore than $100,000 a year as he may designate by class, or upon specific\nrequest of the Comptroller General in any other case, each executive\nagency shall furnish promptly a copy of the annual report of any\nnonappropriated fund or related activity referred to in subsection (a).\nIf such information is not included in any activity's annual report,\nsuch agency shall also furnish a statement showing the yearly finan-\ncial operations, financial condition, and cash flow, and such other\nannual information relating to the activity as may be agreed upon by\nthe Comptroller General and the head of the executive agency\nconcerned.\nTITLE IV-EMPLOYMENT OF EXPERTS AND\nCONSULTANTS\nSEC. 401. The Comptroller General may employ experts and con-\nsultants in accordance with section 3109 of title 5, United States Code,\nat rates not in excess of the maximum daily rate prescribed for GS-18\nunder section 5332 of title 5, United States Code, for persons in the\nGovernment service employed intermittently. However, ten such ex-\nperts or consultants may be employed for periods not in excess of three\nyears, at rates (or the daily equivalent thereof) not in excess of the\nrate prescribed for Executive level V under section 5316 of title 5,\nUnited States Code.\nTITLE V-GENERAL ACCOUNTING OFFICE BUILDING\nSEC. 501. Notwithstanding any other provision of law, the Comp-\ntroller General shall have exclusive custody and control over the Gen-\neral Accounting Office Building, including the operation, maintenance,\nrepairs, alterations, and assignment of space therein. The Comptroller\nGeneral and the head of any Federal agency may enter into agree-\nments for space to be occupied in the General Accounting Office Build-\ning by such agency at such rates as may be agreed upon. Amounts re-\nceived by the General Accounting Office pursuant to such agreements\nwill be deposited to the appropriation initially charged for providing\noperation, maintenance, repair and alteration services with respect to\nsuch space.\n34\nTITLE VI-AUDIT OF GOVERNMENT CORPORATIONS\nAMENDMENTS TO THE GOVERNMENT CORPORATION CONTROL ACT\nSEC. 601. The Government Corporation Control Act is amended as\nfollows:\n(1) Section 105 of such Act (31 U.S.C. 850) is amended by\nadding at the end thereof the following sentence: \"Effective\nJuly 1, 1974, each wholly owned Government corporation shall\nbe audited at least once every three years.\".\n(2) Section 106 of such Act (31 U.S.C. 851) is amended by\nstriking out the first sentence and inserting in lieu thereof \"A\nreport of each audit conducted under section 105 shall be made by\nthe Comptroller General to the Congress not later than six and\none-half months following the close of the last year covered by\nsuch audit.\".\n(3) Section 202 of such Act (31 U.S.C. 857) is amended by add-\ning at the end thereof the following sentence: \"Effective July 1,\n1974, each mixed-ownership Government corporation shall be ua-\ndited as provided herein at least once in every three years.\".\n(4) Section 203 of such Act (31 U.S.C. 858) is amended by\nstriking out the first sentence and inserting in lieu thereof \"A re-\nport of each audit conducted under section 202 shall be made by\nthe Comptroller General to the Congress not later than six and\none-half months following the close of the last year covered by\nsuch audit.\".\nAMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT\nSEC. 602. The Federal Deposit Insurance Act is amended as follows:\n(1) Section 17 (b) of such Act (12 U.S.C. 1827 (b) is amended\nby adding at the end thereof the following sentence: \" The Corpo-\nration shall be audited at least once in every three years.\".\n(2) Section 17 (c) of such Act (12 U.S.C. 1827 (c)) is amended\nby striking out the first and second sentences and inserting in\nlieu thereof \"A report of each audit conducted under subsection\n(b) of this section shall be made by the Comptroller General\nto the Congress not later than six and one-half months following\nthe close of the last year covered by such audit.\".\nAMENDMENT TO FEDERAL CROP INSURANCE ACT\nSEC. 603. Section 513 of the Federal Crop Insurance Act (52 Stat.\n76; 7 U.S.C. 1513) is amended by striking out all after the first\nsentence.\nAMENDMENTS TO THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968\nSEC. 604. Section 107 (g) of the Housing and Urban Development\nAct of 1968 (12 U.S.C. 1701y (g)) is amended by-\n(1) adding the following new sentence at the end of subpara-\ngraph (1) : \"Such audit shall be made at least once every three\nyears.\"; and\n35\n(2) striking out the first sentence in subparagraph (2) and in-\nserting in lieu thereof \"A report of each such audit shall be\nmade by the Comptroller General to the Congress not later than\nsix and one-half months following the close of the last year\ncovered by such audit.\".\nAMENDMENT TO DISTRICT OF COLUMBIA REDEVELOPMENT ACT OF 1945\nSEC. 605. Section 17 of the District of Columbia Redevelopment Act\nof 1945 (60 Stat. 801) is amended by striking out \"annual audit\" in\nthe last sentence and inserting in lieu thereof \"audit\".\nTITLE VII-REVISION OF ANNUAL AUDIT\nREQUIREMENTS\nAMENDMENT TO FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT\nOF 1949\nSEC. 701. Section 109 (e) of the Federal Property and Administra-\ntive Services Act of 1949 (40 U.S.C. 756 (e)) is amended to read as\nfollows:\n(e) (1) As of June 30 of each year, there shall be covered into the\nUnited States Treasury as miscellaneous receipts any surplus in the\nGeneral Supply Fund, all assets, liabilities, and prior losses considered,\nabove the amounts transferred or appropriated to establish and main-\ntain said fund.\n'(2) The Comptroller General shall make audits of the General\nSupply Fund in accordance with the provisions of the Accounting and\nAuditing Act of 1950 and make reports on the results thereof.\".\nAMENDMENT TO THE FEDERAL AVIATION ACT OF 1958\nSEC. 702. That part of the second sentence of section 1307 (f) of the\nFederal Aviation Act of 1958 (49 U.S.C. 1537 (f)) which precedes\nthe proviso is amended to read as follows: \"The Secretary shall main-\ntain a set of accounts which shall be audited by the Comptroller Gen-\neral in accordance with the provisions of the Accounting and Audit-\ning Act of 1950:\"\nAMENDMENT WITH RESPECT TO THE BUREAU OF ENGRAVING AND PRINTING\nFUND\nSEC. 703. Section 6 of the Act entitled \"An Act to provide for financ-\ning the operations of the Bureau of Engraving and Printing, Treasury\nDepartment, and for other purposes\" (31 U.S.C. 181d) is amended by\nstriking out \"the General Accounting Office\" and all that follows\nthereafter to the end of such section and inserting in lieu thereof \"the\nComptroller General in accordance with the provisions of the Account-\ning and Auditing Act of 1950.\".\nAMENDMENT WITH RESPECT TO THE VETERANS' CANTEEN SERVICE\nSEC. 704. Section 4207 of title 38, United States Code, is amended\nto read as follows:\n36\n\"§ 4207. Audit of accounts\n\"The Service shall maintain a set of accounts which shall be audited\nby the Comptroller General in accordance with the provisions of the\nAccounting and Auditing Act of 1950.\".\nAMENDMENT WITH RESPECT TO THE HIGHER EDUCATION INSURED LOAN\nPROGRAM\nSEC. 705. Section 432 (b) (2) of the Higher Education Act of 1965\n(20 U.S.C. 1082 (b) (2)) is amended to read as follows:\n\"(2) maintain with respect to insurance under this part a set\nof accounts, which shall be audited by the Comptroller General\nin accordance with the provisions of the Accounting and Auditing\nAct of 1950, except that the transactions of the Commissioner, in-\ncluding the settlement of insurance claims and of claims for pay-\nments pursuant to section 428, and transactions related thereto\nand vouchers approved by the Commissioner in connection with\nsuch transactions, shall be final and conclusive upon all accounting\nand other officers of the Government.\".\nAMENDMENT TO THE HOUSING ACT OF 1950\nSEC. 706. Section 402 (a) (2) of the Housing Act of 1950 (64 Stat.\n78; 12 U.S.C. 1749a (a) (2)) is amended to read as follows:\n\"(2) maintain a set of accounts which shall be audited by the\nComptroller General in accordance with the provisions of the\nAccounting and Auditing Act of 1950: Provided, That such finan-\ncial transactions of the Administrator as the making of loans and\nvouchers approved by the Administrator in connection with such\nfinancial transactions shall be final and conclusive upon all officers\nof the Government.\".\nAMENDMENT TO THE FEDERAL CREDIT UNION ACT\nSEC. 707. Section 209 (b) (2) of the Federal Credit Union Act (12\nU.S.C. 1789 (b) (2)) is amended by striking out \"annually\".\nAMENDMENT WITH RESPECT TO AUDIT OF THE GOVERNMENT PRINTING\nOFFICE\nSEC. 708. Section 309 (c) of title 44, United States Code, is amended\nby striking out the third sentence and inserting in lieu thereof \"The\nComptroller General shall audit the activities of the Government\nPrinting Office at least once every three years and shall furnish reports\nof such audits to the Congress and the Public Printer.\".\nTITLE VIII-LIMITATION OF TIME ON CLAIMS AND\nDEMANDS\nSEC. 801. Effective one year after enactment of this Act, section 1\nof the Act of October 9, 1940 (54 Stat. 1061; 31 U.S.C. 237), is amended\nby striking out \"ten full years\" and inserting in lieu thereof \"six\nyears\".\nCalendar No. 1245\n93D CONGRESS\nSENATE\nREPORT\n2d Session\nNo. 93-1314\nGENERAL ACCOUNTING OFFICE ACT OF 1974\nDECEMBER 10, 1974.-Ordered to be printed\nMr. HUDDLESTON, from the Committee on Government Operations,\nsubmitted the following\nREPORT\n[To accompany S. 3013]\nThe Committee on Government Operations, to which was referred\nthe bill (S. 3013) to revise and restate certain functions of the Comp-\ntroller General of the United States, and for other purposes, having\nconsidered the same, reports favorably thereon, with amendments, and\nrecommends that the bill as amended do pass.\nPURPOSE\nThe purpose of this bill is to streamline and modernize the role and\nresponsibility of the General Accounting Office SO that it may more\nfully utilize its resources as an arm of the Congress. Among other\nthings, the bill restates the time frames within which the Comptroller\nGeneral must audit certain accounts, transfers the \"executive function\"\nof auditing transportation vouchers and claims to the General Serv-\nices Administration, and provides the Comptroller General authority\nfor audits of certain nonappropriated funds.\nEXPLANATION OF COMMITTEE ACTION\nAs amended by the committee, the bill would eliminate the strict\ndollar ceiling imposed on government agencies before they are allowed\nto employ statistical sampling procedures, and authorize the Comp-\ntroller General to prescribe limits for each agency on the dollar amount\nof vouchers subject to the use of statistical sampling procedures.\nThe bill would transfer the audit of transportation payments from\nthe General Accounting Office to the General Services Administration.\nThis eliminates a purely \"executive function\".\n38-010\n2\nPresently, the General Accounting Office lacks authority to audit\ncertain nonappropriated fund activities, such as military exchange\nprograms. Previous investigations conducted by this committee docu-\nmented the need for GAO to be given the authority to review the\naccounts and procedures of such activities.\nThis legislation would also provide permanent authority for the\nGeneral Accounting Office to employ experts and consultants at the\nGS-18 level. The General Accounting Office currently receives an\nannual authorization to employ such experts and consultants in the\nLegislative branch apropriations bill.\nS 3013 would amend various laws to provide greater flexibility and\nauthority to the Comptroller General to audit the records and ac-\ncounts of various government corporations and revolving funds.\nFinally, the legislation would reduce the statute of limitations on\nclaims and demands from 10 full years to six years. The number of\nsuch claims indicates that the reduction in the statute of limitations\nwould not substantially affect the amount of claims submitted to the\nGAO; however, substantial savings in records storage costs would\nresult.\nSUMMARY OF HEARING\nOn 7 August the Subcommittee on Budgeting, Management and\nExpenditures conducted a hearing on the bill, S. 3013. Witnesses in-\ncluded the Comptroller General and representatives of the General\nServices Administration. The General Services Administration spe-\ncifically testified as to hte appropriateness of Title II (the transfer of\nthe audit of transportation vouchers) and Title V (the authority of\nthe Comptroller General to control the GAO building).\nLEGISLATIVE HISTORY\nSince the enactment of the Budgeting and Accounting Act of 1921,\nwhich created the General Accounting Office, numerous statutes have\nincreased or affected the responsibility of that Office, including the\nAuditing and Accounting Act of 1950 and the Legislative Reorganiza-\ntion Acts of 1946 and 1970. The Congress has continually reinforced\nthe fundamental principle that the General Accounting Office is \"an\nestablishment of the Government which shall be independent of the\nexecutive departments\n1\nS. 3013 was introduced by Senators Ervin, Metcalf, and Ribicoff,\non request of the Comptroller General, on February 19, 1974. The\nbill is a redraft of portions of legislation submitted earlier by the\nGeneral Accounting Office, and introduced by the same senators\n(S. 2049) on June 21, 1973. A hearing was held on Title IV of that\nbill on August 1, 1973, in conjunction with hearings on budget control\nlegislation. The Comptroller General and the GAO were made part of\nthe legislative branch by statute in 1945.2\nSECTION-BY-SECTION ANALYSIS\nTitle I of S. 3013 amends Public Law 88-521, approved August 30,\n1964, which gives the heads of departments and agencies and the Com-\n1 Section 301, Budget and Accounting Act of 1921, as amended, 31 U.S.C. 41.\n2 Section 7, Reorganization Act of 1945, 5 U.S.C. 902.\n3\nmissioner of the District of Columbia the authority to allow the use of\nstatistical sampling in the examination of disbursement vouchers for\namounts less than $100.\nThe law also provides that certifying and disbursing officers acting\nin good faith and using such procedures are relieved of liability for\nimproper certification of payment of vouchers that may not have been\nexamined because of the use of a statistical sampling plan.\nTitle I would amend subsection (a) of Public Law 88-521 SO as\nto eliminate the current $100 limitation on the amount of disbursement\nvouchers subject to audit by statistical sampling. In its place, the bill\nwould impose a limitation of such amount as the Comptroller General\nmay prescribe.\nThe result of the enactment of this title would be to increase the\nnumber of vouchers that may be subject to audit by statistical sam-\npling techniques. This title will result in substantial savings in both\ntime and manpower.\nThe amended language authorizing the Comptroller General to es-\ntablish the upper limits for disbursement vouchers that may be sam-\npled, and to change this limit from time to time as conditions warrant,\nwill avoid the current problem of having the limitations fixed by law.\nTitle II amends section 322 of the Transportation Act of 1940 to\ncontinue the statutory requirement for payment of carrier bills upon\npresentation. But S. 3013 moves the primary responsibility for the\naudit of transportation payments and the recovery of overcharges\nfrom the General Accounting Office to the General Services Adminis-\ntration. The responsibility for the detailed audit would be vested in\nthe Executive branch, subject to overall review by the GAO. GAO\nwould still retain its appellate function, enabling carriers to request\nthe Comptroller General to review executive agency action on their\nclaims.\nThe committee has amended the original bill to eliminate OMB\ndesignation of the responsible executive agency, and placed the respon-\nsibility for the audit function in GSA. However, the committee\nrecognizes that the GSA does not now perform the audit for foreign\ntransportation vouchers, and thus provides that the Administrator\nmay designate another agency to carry out that function. However,\nthe responsibility would still remain with the General Services\nAdministration.\nEmployees of GAO have expressed concern about the transfer of\npersonnel currently assigned to the Transportation Claims Division\nwithin GAO. (The legislation provides for the transfer of all rec-\nords, personnel, funds, etc., involved in the audit responsibility.)\nThe employees are concerned about job protection, salary retention,\nand the possible loss of personnel due to relocation outside the GAO\nbuilding.\nThe committee, to meet these concerns, amended the title to insure\nthat personnel transferred shall not be reduced in classification or\ncompensation for two years after such transfer, except for cause, and\nthat after such two year period such personnel shall be subject to the\nprovisions of section 5337 of title 5 United States Code.\nIn addition, the committee amendments provide that such person-\nnel shall be provided with training, counseling and career develop-\nment and equal employment opportunity programs by the Comp-\n4\ntroller General in order to effectuate a full and adequate transfer of\nthe functions, and be guaranteed such protections and programs by\nthe Administrator of the General Services Administration subsequent\nto such transfer in accordance with a plan to be established by the\nAdministrator. The Committee is aware that such programs are al-\nready in existence in GAO and GSA. The amendments are designed to\nassure continued availability of these programs to the affected em-\nployees both before and after the transfer.\nThe bill establishes a time frame between October 1, 1975 and Sep-\ntember 30, 1976, within which the transfer is to be mutually deter-\nmined by the Comptroller General and the Administrator of General\nServices, with notice in the Federal Register 60 days prior to the\ntransfer of this function to the General Services Administration. GSA\nshall publish in the Federal Register its detailed plan for the trans-\nfer of functions and personnel under this title. This plan shall be\nbased upon a thorough survey of facilities available for such people,\nand identify GSA's plan for career development and counseling. The\nimplementation of this plan will be under the supervision of a liaison\ngroup composed of representatives of the GAO, General Services\nAdministration, and the Civil Service Commission.\nTitle III makes nonappropriated fund activities which sell mer-\nchandise or services to military or other Government personnel and\ntheir dependents, such as the military exchanges, subject to audit by\nthe Comptroller General and gives the Comptroller General the\nauthority to inspect records and property and to obtain copies of\nannual reports.\nSubsection 301 (a) would authorize the Comptroller General, un-\nless otherwise required by law, to review the operations. svstems of\naccounting and internal controls, and any internal or independent\naudits or reviews of non-appropriated funds and related activities\nwithin the Executive branch.\nUnder this section, the Comptroller General and his duly authorized\nrepresentatives would have access to such documents relating to these\nfunds and activities as is deemed necessary.\nSubsection (b) would require such nonappropriated fund activities\nas the Comptroller General designates to furnish him, an annual\nreport, including annual statements of financial operations, financial\nconditions and cash flow.\nThe Committee recognized that increased paperwork may result\nfrom the mandatory filing of reports of nonappropriated fund activi-\nties with the General Accounting Office. To eliminate the unnecessary\npaper flow to the GAO, the committee has authorized the Comptroller\nGeneral to request such reports, rather than make the filing of such\nreports mandatory.\nTitle IV provides the Comptroller General with permanent au-\nthoritv to employ experts and consultants in accordance with sec-\ntion 3109 of Title 5, United States Code. at rates not in excess of\nthe maximum daily rate prescribed for GS-18 under section 5332 of\nTitle 5, United States Code. The committee did not accept the provi-\nsions submitted by the GAO for authority to employ experts and\nconsultants at the rate of Level V of the Executive Schedule.\nThe committee has authorized the Comptroller General to employ\nup to ten experts and consultants for periods not in excess of three\nvears. The committee is aware of the fact that some functions GAO\nis required to monitor may extend beyond the one year limitation\n5\ngenerally imposed upon experts and consultants. To provide continuity\nregarding such activities, such as program evaluations, the committee\nhas authorized a three year limitation on the length of employment.\nTitle V of the legislation introduced provided the Comptroller\nGeneral with authority to control the GAO headquarters building and\nto lease buildings or parts of buildings elsewhere. The committee has\nsupplanted this title with a new Title V, which would provide the\nGAO first priority on space within the GAO headquarters building,\nincluding, if necessary, the displacement of Executive branch agencies,\nwhich now occupy almost half the space.\nThe committee is aware of the time and dollar investments made by\nthe two principal Executive branch agencies which currently occupy\nthe GAO building. However, the committee feels that it is more\nadvantageous for the General Accounting Office to be centralized in\none location, to the maximum extent feasible.\nAdditional functions are continuously being placed in the General\nAccounting Office. New responsibilities, particularly in light of the\npassage of the Congressional Budget and Impoundment Control Act\nof 1974, require that the General Accounting Office be permitted to\nexpand its facilities in a single location. The committee expects GSA\nto act promptly on any future requests for space by the Comptroller\nGeneral.\nTitle VI of S. 3013, as reported by the committee, amends the\nGovernment Corporation Control Act, the Federal Deposit Insurance\nAct, the Federal Crop Insurance Act, and the Housing and Urban\nDevelopment Act of 1968 to provide for audits of government\ncorporations at least once every three years instead of annually.\nTitle VI also removes the requirement for an annual audit from the\nDistrict of Columbia Redevelopment Act of 1945 and the Federal\nHome Loan Bank Act.\nThese amendments will not dilute congressional oversight of the\noperations of the corporations covered in this section of the bill. The\nprovision does not restrict an audit to only once in every three years.\nOn the contrary, in cases where the Comptroller General determines\nthat a more frequent audit is necessary, such audits would still be\npermitted and encouraged. Where good accounting standards, good\nmanagement and effective internal audits are made, such continuous\nannual oversight by the General Accounting Office would not be\nnecessary.\nTitle VII of S. 3013, as reported, deletes the requirement for an\nannual audit from the Federal Property and Administrative Services\nAct of 1949, the Housing Acts of 1949 and 1950, the Federal Credit\nUnion Act, and the acts concerning the operations of the Bureau of\nEngraving and Printing, the Veterans Canteen Service, the Federal\nAviation Administration, the Higher Education Insured Loan Pro-\ngram and the Government Printing Office.\nUnder this bill, the audit of these activities will be made in accord-\nance with those principles established in the Accounting and Auditing\nAct of 1950. As with Title VI, this title is designed to provide GAO\nwith flexibility in carrying our its audit responsibilities. The decision\nas to the frequency of the audit would be determined on an activity-\nby-activity basis.\nSection 801 decreases from 10 years to six years after the date a\nclaim accrues the time within which claims cognizable by the GAO\nmay be filed in that Office. This will make the time limitation con-\n6\nsistent with the Statute of Limitations now applicable to claims filed\nin administrative agencies and the courts.\nSection 802 provides that the reduction in time allowed for filing\nclaims in the GAO will not go into effect until six months after en-\nactment, and makes it clear that the enactment of the new time limit\nwill not affect claims filed before such enactment.\nReducation of the barring statute from 10 to six years would have\na significant impact on the amount of files required to be maintained\nby the GAO.\nA recent test conducted by the GAO over a typical six-month period\nindicated that \"all GAO records between six and ten years old could\nbe destroyed if the statute of limitations were shortened to six years.\nThis would result in a savings of at least $300,000 per year, based\non the storage cost savings.\" The destruction of GAO records is of\ncourse limited only to those records pertaining.\nCONCLUSIONS\nThe legislation would revise and restate functions of the Comp-\ntroller General which are either outmoded or more appropriately done\nby another agency.\nAs a result of the enactment of the legislation, the General Account-\ning Office will be better equipped to meet the needs and demands of\nthe Congress. It will be better able to shift its resources from the\nannual audit of many accounts to the audit of nonappropriated funds.\nIt will be able to employ experts and consultants to design needed\nprogram evaluation techniques. Greater flexibility will increase its re-\nsponsiveness to congressional needs. As a result, the Congress would\nbe in a better position to meet its responsibilities.\nESTIMATED COST OF LEGISLATION\nThe committee expects that additional costs may arise from the\nenactment of this legislation as a result of the authority given the\nComptroller General to employ experts and consultants at a rate not\nto exceed GS-18. It is impractical for the committee to estimate the\nexact cost, which would vary with the number of persons employed\nunder such provisions and the period of time for which they were\nretained; however, since GAO has had such authority in its appropri-\nations acts for the past several years, the increase should be nominal.\nNo additional costs are anticipated for the next five fiscal years\nwith respect to Titles I (statistical sampling procedures), III (audit\nof nonappropriated fund activities), VI (audit of government cor-\nporations), VII (revision of annual audit requirements) and VIII\n(limitations of time of claims and demands).\nAdditional expenditures may result from the enactment of Title II\n(audit of transportation payments) concerning salary retention pro-\nvisions and expanded employee benefit programs, and Title V (Gen-\neral Accounting Office Building) concerning leasing authority for the\nGeneral Services Administration. It is impractical for the committee\nto estimate the cost of the enactment of these provisions for the next\nfive years.\nEstimates submitted by the General Accounting Office indicate\nthat approximately $322,000 in storage costs would be saved as a\nresult of the reduction in the time for filing demands. The committee\ncannot estimate additional savings in time, manpower and dollars as\n7\na result of the reduction in the frequency of audits, and the increase\nin the use of statistical sampling procedures.\nCHANGES IN EXISTING LAW\nIn compliance with subsection 4 of rule XXIX of the Standing\nRules of the Senate, changes in existing law made by the bill as re-\nported are shown as follows (existing law proposed to be changed\nenclosed in black brackets, new matter in italic, existing law in which\nno change is proposed to be made in roman) :\nAct OF AUG. 30, 1964\nAN ACT To permit the use of statistical sampling procedures in the examination\nof vouchers.\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, (a) That, when-\never the head of any department or agency of the Government or\nthe Commissioners of the District of Columbia determines that\neconomies will result therefrom, such agency head or the Commis-\nsioners may prescribe the use of adequate and effective statistical\nsampling procedures in the examination of disbursement vouchers\nfor amounts of less than $100; and no certifying or disbursing officer\nacting in good faith and in conformity with such procedures shall be\nheld liable with respect to any certification or payment made by him\non a voucher which was not subject to specific examination because of\nthe prescribed statistical sampling procedure, provided that such\nofficer and his department or agency have diligently pursued collec-\ntion action to recover the illegal, improper, or incorrect payment in'\naccordance with procedures prescribed by the Comptroller General.]\n(a) Whenever the head of any department or agency of the Govern-\nment or the Commissioner of the District of Columbia determines that\neconomies will result therefrom, such agency head or the Commissioner\nmay prescribe the use of adequate and effective statistical sampling\nprocedures in the examination of disbursement vouchers not exceeding\nsuch amounts as may from time to time be prescribed by the Comp.-\ntroller General of the United States; and no certifying or disbursing\nofficer acting in good faith and in conformity with such procedures\nshall be held liable with respect to any certification or payment made\nby him on a voucher which was not subject to specific examination\nbecause of the prescribed statistical sampling procedure: Provided,\nThat such officer and his department or agency have diligently pur-\nsued collection action to recover the illegal, improper, or incorrect\npayment in accordance with procedures prescribed by the Comptroller\nGeneral. The Comptroller General shall include in his reviews of\naccounting systems an evaluation of the adequacy and effectiveness of\nprocedures established under the authority of this Act.\n(b) Nothing contained in this Act shall affect the liability, or\nauthorize the relief, of any payee, beneficiary, or recipient of any\nillegal, improper, or incorrect payment, or relieve any certifying or\ndisbursing officer, the head of any department or agency of the\nGovernment, the Commissioners of the District of Columbia, or the\nComptroller General of responsibility to pursue collection action\nagainst any such payee, beneficiary, or recipient.\n8\nSECTION 322 OF THE TRANSPORTATION ACT OF 1940\nDEDUCTION OF OVERPAYMENTS\nSEC. 322. (a) [Subject to such standards as shall be promulgated\njointly by the Secretary of the Treasury and the Comptroller General\nof the United States, payment for transportation of persons or prop-\nerty for or on behalf of the United States by any carrier or forwarder\nshall be made upon presentation of bills therefor, prior to audit or\nsettlement by the General Accounting Office, but the right is reserved\nto the United States Government to deduct the amount of any over-\ncharge by any carrier or forwarder from any amount subsequently\nfound to be due such carrier or forwarder.] Payment for transporta-\ntion of persons or property for or on behalf of the United States by\nany carrier or forwarder shall be made upon presentation of bills\ntherefor prior to audit by the General Services Administration, or\nhis designee. The right is reserved to the United States Government\nto deduct the amount of any overcharge by any carrier or forwarder\nfrom any amount subsequently found to be due such carrier or for-\nwarder. This does not affect the authority of the General Accounting\nOffice to make audits in accordance with the Budget and Accounting\nAct, 1921 (31 U.S.C. 41), and the Accounting and Auditing Act of\n1950 (31 U.S.C. 65). The term \"overcharges\" shall be deemed to mean\ncharges for transportation services in excess of those applicable\nthereto under tariffs lawfully on file with the Interstate Commerce\nCommission, the Civil Aeronautics Board, the Federal Maritime Com-\nmission, and any State transportation regulatory agency, and charges\nin excess of those applicable thereto under rates, fares, and charges\nestablished pursuant to section 22 of the Interstate Commerce Act, as\namended, or other equivalent contract, arrangement, or exemption\nfrom regulation: Provided, however, That such deductions shall be\nmade within three years (not including any time of war) from the\ntime of payment of bills: Provided further, That every claim [cog-\nnizable by the General Accounting Office] for charges for transporta-\ntion within the purview of this section shall be forever barred unless\nsuch claim shall be [received in the General Accounting Office] re-\nceived in the General Services Administration, or by his designee\nwithin three years (not including any time of war) from the date of\n(1) accrual of the cause of action thereon, or (2) payment of charges\nfor the transportation involved, or (3) subsequent refund for overpay-\nment of such charges, or (4) deduction made pursuant to this section,\nwhichever is later.\n(b) Nothing in subsection (a) hereof shall be deemed to prevent any\ncarrier or forwarder from requesting the Comptroller General to\nreview the action on his claim by the General Services Administration\nor his designee. Such request shall be forever barred unless received in\nthe General Accounting Office within six months (not including any\ntime of war) from the date the action was taken or within the periods\nof limitation specified in the second proviso in subsection (a) of this\nsection, whichever is later.\n[(b)](c) Pursuant to regulations prescribed by the head of a Gov-\nernment agency or his designee and in conformity with such standards\n9\nas shall be promulgated jointly by the Secretary of the Treasury and\nthe Comptroller General of the United States, bills for passenger\nor freight transportation services to be furnished the United States\nby any carrier or forwarder may be paid in advance of completion of\nthe services, without regard to section 3648 of the Revised Statutes,\nas amended (31 U.S.C. 529) : Provided, That such carrier or forwarder\nhas issued the usual ticket, receipt, bill of lading, or equivalent docu-\nment covering the service involved, subject to later recovery by deduc-\ntion or otherwise of any payments made for any services not received\nas ordered by the United States.\n[(c) (d) The term \"head of a Government agency\" means any in-\ndividual or group of individuals having final decisionmaking respon-\nsibility for any department, commission, board, service, Government\ncorporation, instrumentality, or other establishment or body in the\nUnited States Government.\nGOVERNMENT CORPORATION CONTROL ACT\n*\n*\n*\n*\n*\nTITLE I-WHOLLY OWNED GOVERNMENT\nCORPORATIONS\n*\n*\n*\n*\n*\n*\n*\nSEC. 105. The financial transactions of wholly owned Government\ncorporations shall be audited by the General Accounting Office in\naccordance with the principles and procedures applicable to com-\nmercial corporate transactions and under such rules and regulations\nas may be prescribed by the Comptroller General of the United States:\nProvided, That such rules and regulations may provide for the reten-\ntion at the offices of such corporations, in whole or in part, of any\naccounts of accountable officers, covering corporate financial transac-\ntions, which are required by existing law to be settled and adjusted in\nthe General Accounting Office, and for the settlement and adjust-\nment of such accounts in whole or in part upon the basis of examina-\ntions in the course of the audit herein provided, but nothing in this\nproviso shall be construed as affecting the powers reserved to the\nTennessee Valley Authority in the Act of November 21, 1941 (55\nStat. 775). The audit shall be conducted at the place or places where\nthe accounts of the respective corporations are normally kept. The\nrepresentatives of the General Accounting Office shall have access to\nall books, accounts, financial records, reports, files, and all other papers,\nthings, or property belonging to or in use by the respective corpora-\ntions and necessary to facilitate the audit, and they shall be afforded\nfull facilities for verifying transactions with the balances or securi-\nties held by depositaries, fiscal agents, and custodians. The audit shall\nbegin with the first fiscal year commencing after the enactment of\nthis Act. The audit of the Federal Savings and Loan Insurance Cor-\nporation shall be conducted on a calendar year basis. Effective July 1,\n1974, each wholly owned Government corporation shall be audited at\nleast once every three years.\n38-010-74-2\n10\nSEC. 106. [A report of each such audit for a fiscal year shall be made\nby the Comptroller General to the Congress not later than January 15\nfollowing the close of such fiscal year (and a report of each such audit\nfor a calendar year shall be made by the Comptroller General to the\nCongress not later than July 15 following the close of such calendar\nyear). A report of each audit conducted under section 105 shall be\nmade by the Comptroller General to the Congress not later than six\nand one-half months following the close of the last year covered by\nsuch audit. The report shall set forth the scope of the audit and shall\ninclude a statement (showing intercorporate relations) of assets and\nliabilities, capital and surplus or deficit; a statement of surplus or\ndeficit analysis; a statement of income and expenses; a statement of\nsources and application of funds; and such comments and information\nas may be deemed necessary to keep Congress informed of the opera-\ntions and financial condition of the several corporations, together with\nsuch recommendations with respect thereto as the Comptroller Gen-\neral may deem advisable, including a report of any impairment of\ncapital noted in the audit and recommendations for the return of such\nGovernment capital or the payment of such dividends as, in his judg-\nment, should be accomplished. The report shall also show specifically\nany program, expenditure, or other financial transaction or under-\ntaking observed in the course of the audit, which, in the opinion of the\nComptroller General, has been carried on or made without authority\nof law. A copy of each report shall be furnished to the President, to\nthe Secretary of the Treasury, and to the corporation concerned at the\ntime submitted to the Congress.\n*\n*\n*\n*\n*\n*\n*\nTITLE II-MIXED-OWNERSHIP GOVERNMENT\nCORPORATIONS\n*\n*\nis\nSEC. 202. The financial transactions of mixed-ownership Govern-\nment corporations for any period during which Government capital\nhas been invested therein shall be audited by the General Accounting\nOffice in accordance with the principles and procedures applicable to\ncommercial corporate transactions and under such rules and regula-\ntions as may be prescribed by the Comptroller General of the United\nStates. The audit shall be conducted at the place or places where the\naccounts of the respective corporations are normally kept. The rep-\nresentatives of the General Accounting Office shall have access to all\nbooks, accounts, financial records, reports, files, and other papers,\nthings, or property belonging to or in use by the respective corpo-\nrations and necessary to facilitate the audit, and they shall be afforded\nfull facilities for verifying transactions with the balances or securities\nheld by depositaries, fiscal agents, and custodians. The audit shall\nbegin with the first fiscal year commencing after the enactment of this\nAct. The audit of the Federal home loan banks shall be conducted on a\n11\ncalendar year basis. Effective July 1, 1974, each mixed-ownership Gov-\nernment corporation shall be audited as provided herein at least once\nin every three years.\nSEC. 203. [A report of each such audit for a fiscal year shall be\nmade by the Comptroller General to the Congress not later than\nJanuary 15 following the close of such fiscal year (and a report of\neach such audit for a calendar year shall be made by the Comptroller\nGeneral to the Congress not later than July 15 following the close of\nsuch calendar year). A report of each audit conducted under section\n202 shall be made by the Comptroller General to the Congress not\nlater than six and one-half months following the close of the last year\ncovered by such audit. The report shall set forth the scope of the\naudit and shall include a statement (showing intercorporate relations)\nof assets and liabilities, capital and surplus or deficit; a statement of\nsurplus or deficit analysis; a statement of income and expense; a\nstatement of sources and application of funds; and such comments and\ninformation as may be deemed necessary to keep Congress informed\nof the operations and financial condition of, and the use of Govern-\nment capital by, each such corporation, together with such recom-\nmendations with respect thereto as the Comptroller General may\ndeem advisable, including a report of any impairment of capital or\nlack of sufficient capital noted in the audit and recommendations for\nthe return of such Government capital or the payment of such divi-\ndends as, in his judgment, should be accomplished. The report shall\nalso show specifically any program, expenditure, or other financial\ntransaction or undertaking observed in the course of the audit, which,\nin the opinion of the Comptroller General, has been carried on or\nmade without authority of law. A copy of each report shall be fur-\nnished to the President, to the Secretary of the Treasury, and to the\ncorporation concerned at the time submitted to the Congress.\n*\n*\n*\n*\n*\n*\n*\nSECTION 17 OF THE FEDERAL DEPOSIT INSURANCE ACT\nSEC. 17. (a) The Corporation shall annually make a report of its\noperations to the Congress as soon as practicable after the 1st day\nof January in each year.\n(b) The financial transactions of the Corporation shall be audited\nby the General Accounting Office in accordance with the principles\nand procedures applicable to commercial corporate transactions and\nunder such rules and regulations as may be prescribed by the Comp-\ntroller General of the United States. The audit shall be conducted at\nthe place or places where accounts of the Corporation are normally\nkept. The representatives of the General Accounting Office shall have\naccess to all books, accounts, records, reports, files, and all other papers,\nthings, or property belonging to or in use by the Corporation pertain-\ning to its financial transactions and necessary to facilitate the audit,\nand they shall be afforded full facilities for verifying transactions\nwith the balances or security held by depositaries, fiscal agents, and\n12\ncustodians. All such books, accounts, records, reports, files, papers,\ntody of the Corporation. The audit shall begin with financial transac-\nand property of the Corporation shall remain in possession and cus-\ntions occurring on and after August 31, 1948. The Corporation shall\nbe audited at least once in every three years.\n(c) [A report of the audit for each fiscal year ending on June 30\nshall be made by the Comptroller General to the Congress not later\nthan January 15 following the close of such fiscal year. On or before\nDecember 15 following such fiscal year the Comptroller General shall\nfurnish the Corporation a short form report showing the financial\nposition of the Corporation at the close of the fiscal year. A report\nof each audit conducted under subsection (b) of this section shall be\nmade by the Comptroller General to the Congress not later than six\nand one-half months following the close of the last year covered by\nsuch audit. The report to the Congress shall set forth the scope of the\naudit and shall include a statement of assets and liabilities and surplus\nor deficit; a statement of surplus or deficit analysis; a statement of\nincome and expenses; a statement of sources and application of funds\nand such comments and information as may be deemed necessary to\ninform Congress of the financial operations and condition of the Cor-\nporation, together with such recommendations with respect thereto\nas the Comptroller General may deem advisable. The report shall also\nshow specifically any program, expenditure, or other financial trans-\naction or undertaking observed in the course of the audit, which, in the\nopinion of the Comptroller General, has been carried on or made with-\nout authority of law. A copy of each report shall be furnished to the\nPresident, to the Secretary of the Treasury, and to the Corporation at\nthe time submitted to the Congress.\n*\n*\n*\n*\n*\nSECTION 513 OF THE FEDERAL CROP INSURANCE Act\nACCOUNTING BY CORPORATION\nSEC. 513. The Corporation shall at all times maintain complete and\naccurate books of account and shall file annually with the Secretary of\nAgriculture a complete report as to the business of the Corporation.\n[The financial transactions of the Corporation shall be audited at least\nonce each year by the General Accounting Office for the sole purpose\nof making a report to Congress, together with such recommendations\nas the Comptroller General of the United States may deem advisable:\nProvided, That such report shall not be made until the Corporation\nshall have had reasonable opportunity to examine the exceptions and\ncriticisms of the Comptroller General or the General Accounting\nOffice, to point out errors therein, explain or answer the same, and to\nfile a statement which shall be submitted by the Comptroller General\nwith his report.]\n13\nSECTION 107 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968\nNATIONAL HOMEOWNERSHIP FOUNDATION\nSEC. 107. (a)\n*\n*\n*\n*\n*\n(g) (1) The financial transactions of the Foundation shall be\naudited by the General Accounting Office in accordance with the prin-\nciples and procedures applicable to commercial corporate transactions\nand under such rules and regulations as may be prescribed by the\nComptroller General of the United States. The representatives of the\nGeneral Accounting Office shall have access to all books, accounts, fi-\nnancial records, reports, files, and all other papers, things, or property\nbelonging to or in use by the Foundation and necessary to facilitate the\naudit, and they shall be afforded full facilities for verifying transac-\ntions with the balances or securities held by depositories, fiscal agents,\nand custodians. The audit shall cover the fiscal year corresponding to\nthat of the United States Government. Such audit shall be made at\nleast once every three years.\n(2) A report of each such audit shall be made by the Comptroller\nGeneral to the Congress not later than [January 15] six and one-half\nmonths following the close of the [fiscal year for which the audit was\nmade] last year covered by such audit. The report shall set forth\nthe scope of the audit and shall include a statement of assets and\nliabilities, capital, and surplus or deficit; a statement of sources and\napplication of funds; and such comments and information as may be\ndeemed necessary to keep the Congress informed of the operations and\nfinancial condition of the Foundation, together with such recom-\nmendations with respect thereto as the Comptroller General may deem\nadvisable. The report shall also show specifically any program, ex-\npenditure, or other financial transaction or undertaking, observed in\nthe course of the audit, which, in the opinion of the Comptroller Gen-\neral, has been carried on or made without authority of law. A copy of\neach report shall be furnished to the President and to the Foundation\nat the time submitted to the Congress.\n*\n*\n*\n*\n*\nSECTION 17 OF THE DISTRICT OF COLUMBIA REDEVELOPMENT\nACT OF 1945\nACQUISITION UNDER DISTRICT OF COLUMBIA ALLEY DWELLING ACT\nSEC. 17. From and after the termination of the period of one year,\nbeginning with the date of the approval of this Act, all authority\ngranted by the Act known as the District of Columbia Alley Dwelling\nAct, approved June 12, 1934, as amended, to acquire, by purchase,\ncondemnation, or gift, lands, buildings and structures, or any interest\n14\ntherein, is hereby transferred to and vested in the Agency created by\nthis Act. During said one-year period said authority may be exer-\ncised by the National Capital Housing Authority only for projects\nthat shall have been approved by the Planning Commission and the\nDistrict Commissioners: Provided, however, That failure of the\nPlanning Commission or the District Commissioners to approve or\ndisapprove in writing within sixty days after the submission by the\nNational Capital Housing Authority shall be equivalent to a formal\napproval. Nothing contained in said Alley Dwelling Act or in this\nAct shall be interpreted as precluding the inclusion at any time of\nany alley or inhabited alley or alley dwelling or dwelling or square\ncontaining an inhabited alley in a project area to be planned, acquired,\nand disposed of under the provisions of this Act. Any real property\nacquired by the Agency under the authority of the Alley Dwelling\nAct may be transferred or may be sold or leased by the Agency as\nprovided in this Act for real property acquired for a project area\nredevelopment. The National Capital Housing Authority is hereby\ndeclared to be a redevelopment company and is hereby granted the\npower to purchase or lease redevelopment areas or parts thereof from\nthe Agency in accordance with the provisions of this Act. The\nNational Capital Housing Authority shall keep regular books of\naccount in accordance with standard auditing practices, covering all\nproperties operated by it, showing detailed construction costs, manage-\nment costs, repairs, maintenance, other operating costs, rents, subsidies,\ngrants, allowances and exemptions; such books shall be subject to\n[annual] audit by the General Accounting Office; and the annual\nreport of the National Capital Housing Authority shall include a sum-\nmary of all transactions covered by such books and shall be made\navailable to the public upon request.\nSECTION 109 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE\nSERVICES ACT OF 1949\nGENERAL SUPPLY FUND\nSEC. 109. (a) ***\n*\n*\n*\n*\n*\n[(e) The Comptroller General of the United States shall make an\nannual audit of the General Supply Fund as of June 30, and there\nshall be covered into the United States Treasury as miscellaneous\nreceipts any surplus found therein, all assets, liabilities, and prior\nlosses considered, above the amounts transferred or appropriated to\nestablish and maintain said fund, and the Comptroller General shall\nreport to the Congress annually the results of the audit, together with\nsuch recommendations as he may have regarding the status and oper-\nations of the fund.]\n(e) (1) As of June 30 of each year, there shall be covered into the\nUnited States Treasury as miscellaneous receipts any surplus in the\nGeneral Supply Fund, all assets, liabilities, and prior losses considered,\n15\nabove the amounts transferred or appropriated to establish and main-\ntain said fund.\n(2) The Comptroller General shall make audits of the General\nSupply Fund in accordance with the provisions of the Accounting and\nAuditing Act of 1950 and make reports on the results thereof.\n*\n*\n*\n*\n*\n*\nSECTION 1307 OF THE FEDERAL AVIATION ACT OF 1958\nADMINISTRATIVE POWERS OF SECRETARY\nRegulatory and Settlement\nSEC. 1307. (a) ***\n*\n*\n*\n*\n*\n*\n*\nBudget Program and Accounts\n(f) The Secretary, in the performance of, and with respect to, the\nfunctions, powers, and duties vested in him by this title, shall prepare\nannually and submit a budget program as provided for wholly owned\nGovernment corporations by the Government Corporation Control\nAct, as amended (59 Stat. 597; 31 U.S.C. 841). The Secretary shall\nmaintain [an integral set of accounts which shall be audited annually\nby the General Accounting Office in accordance with principles and\nprocedures applicable to commercial transactions as provided by the\nsaid Government Corporation Act a set of accounts which shall be\naudited by the Comptroller General in accordance with the provisions\nof the Accounting and Auditing Act of 1950: Provided, That, because\nof the business activities authorized by this title, the Secretary may\nexercise the powers conferred in said title, perform the duties and\nfunctions, and make expenditures required in accordance with com-\nmercial practice in the aviation insurance business, and the General\nAccounting Office shall allow credit for such expenditures when shown\nto be necessary because of the nature of such authorized activities.\n*\n*\n*\n*\n*\n*\n*\nSECTION 6 OF THE ACT OF AUGUST 4, 1950\nAN ACT To provide for financing the operations of the Bureau of Engraving\nand Printing, Treasury Department, and for other purposes\n*\n*\n*\n*\n*\n*\nSEC. 6. The financial transactions, accounts, and reports of the fund\nshall be audited on an annual basis by the [General Accounting Office\nand a copy of each report on audit shall be furnished promptly to the\nPresident, the Congress, and the Secretary.] Comptroller General in\naccordance with the provisions of the Accounting and Auditing Act\nof 1950.\n16\nSECTION 4207 OF TITLE 38, UNITED STATES CODE\nCHAPTER 75-VETERANS' CANTEEN SERVICE\n*\n*\n*\n*\n*\n*\n§ 4207. Audit of Accounts\nThe Service shall maintain [an integral] a set of accounts which\nshall be audited [annually by the General Accounting Office in accord-\nance with the principles and procedures applicable to commercial\ntransactions as provided by section 841-869 of title 31. No other audit\nshall be required.] by the Comptroller General in accordance with the\nprovisions of the Accounting and Auditing Act of 1950.\nSECTION 432 OF THE HIGHER EDUCATION Act OF 1965\nLEGAL POWERS AND RESPONSIBILITIES\nSEC. 432. (a)\n*\n*\n*\n*\n*\n*\n*\n*\n*\n(b) The Commissioner shall, with respect to the financial operations\narising by reason of this part-\n(1) prepare annually and submit a budget program as pro-\nvided for wholly owned Government corporations by the Gov-\nernment Corporation Control Act; and\n(2) maintain with respect to insurance under this part [an in-\ntegral] a set of accounts, which shall be audited [annually by\nthe General Accounting Office in accordance with principles and\nprocedures applicable to commercial corporate transactions, as\nprovided by setion 105 of the Government Corporation Control\nAct] by the Comptroller General in accordance with the provi-\nsions of the Accounting and Auditing Act of 1950, except that\nthe transactions of the Commissioner, including the settlement of\ninsurance claims and of claims for payments pursuant to section\n428, and transactions related thereto and vouchers approved by the\nCommissioner in connection with such transactions, shall be final\nand conclusive upon all accounting and other officers of the\nGovernment.\nSECTION 402 OF THE HOUSING ACT OF 1950\nTITLE IV-HOUSING FOR EDUCATIONAL INSTITUTIONS\n*\n*\n*\n*\n*\n*\nGENERAL PROVISIONS\nSEC. 402. (a) In the performance of, and with respect to, the func-\ntions, powers. and duties vested in him by this title, the Secretary\nnotwithstanding the provisions of any other law, shall-\n(1) prepare annually and submit a budget program as provided\nfor wholly owned Government corporations by the Government\nCorporation Control Act, as amended; and\n17\n(2) maintain [an integral] a set of accounts which shall be\naudited [annually by the General Accounting Office] by the\nComptroller General in accordance with the [principles and pro-\ncedures applicable to commercial transactions as provided by the\nGovernment Corporation Control Act, as amended, and no other\naudit shall be required] provisions of the Accounting and Audit-\ning Act of 1950: Provided, That such financial transactions of the\n[Secretary] Administrator as the making of loans and vouchers\napproved by the [Secretary] Administrator in connection with\nsuch financial transactions shall be final and conclusive upon all\nofficers of the Government.\n*\n*\n*\n*\n*\n*\n*\nSECTION 209 OF THE FEDERAL CREDIT UNION ACT\nADMINISTRATIVE PROVISIONS\nSEC. 209. (a) ***\n*\n*\n*\n*\n*\n(b) With respect to the financial operations arising by reason of\nthis title, the Administrator shall-\n(1) prepare annually and submit a business-type budget as\nprovided for wholly owned Government corporations by the\nGovernment Corporation Control Act; and\n(2) maintain an integral set of accounts, which shall be audited\n[annually] by the General Accounting Office in accordance with\nprinciples and procedures applicable to commercial corporate\ntransactions, as provided by section 105 of the Government Cor-\nporation Control Act.\nSECTION 309 OF TITLE 44, UNITED STATES CODE\n§ 309. Revolving fund for operation and maintenance of Govern-\nment Printing Office: capitalization; reimbursements\nand credits; accounting and budgeting; reports\n(a) ***\n*\n*\n*\n*\n*\n*\n*\n(c) An adequate system of accounts for the fund shall be maintained\non the accrual method, and financial reports prepared on the basis of\nthe accounts. The Public Printer shall prepare and submit an annual\nbusiness-type budget program for the operations under this fund.\n[The General Accounting Office shall audit the activities of the Gov-\nernment Printing Office and furnish an audit report annually to the\nCongress and the Public Printer.] The Comptroller General shall\naudit the activities of the Government Printing Office at least once in\nevery three years and shall furnish reports of such audits to the Con-\ngress and the Public Printer. For these purposes the Comptroller\nGeneral shall have such access to the records, files, personnel, and\nfacilities of the Government Printing Office as he considers necessary.\n18\nSECTION 1 OF THE Act OF OCTOBER 9, 1940\nAN ACT Providing for the barring of claims against the United States\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, That every claim or\ndemand (except a claim or demand by any State, Territory, possession\nor the District of Columbia) against the United States cognizable by\nthe General Accounting Office under section 305 of the Budget and\nAccounting Act of June 10, 1921 (42 Stat. 24), and the Act of\nApril 10, 1928 (45 Stat. 413), shall be forever barred unless such claim,\nbearing the signature and address of the claimant or of an authorized\nagent or attorney, shall be received in said office within [ten full] six\nyears after the date such claim first accrued: Provided, That when a\nclaim of any person serving in the military or naval forces of the\nUnited States accrues in time of war, or when war intervenes within\nfive years after its accrual, such claim may be presented within five\nyears after peace is established.\no\nCORRECT\nH. R. 12113\nNinety-third Congress of the United States of America\nAT THE SECOND SESSION\nBegun and held at the City of Washington on Monday, the twenty-first day of January,\none thousand nine hundred and seventy-four\nAn Act\nTo revise and restate certain functions and duties of the Comptroller General\nof the United States and for other purposes.\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, That this Act may be\ncited as the \"General Accounting Office Act of 1974\".\nTITLE I-STATISTICAL SAMPLING PROCEDURES IN\nTHE EXAMINATION OF VOUCHERS\nSEC. 101. Subsection (a) of Public Law 88-521, approved August\n30, 1964 (31 U.S.C. 82b-1 is amended to read:\n(a) Whenever the head of any department or agency of the Gov-\nernment or the Commissioner of the District of Columbia determines\nthat economies will result therefrom, such agency head or the Com-\nmissioner may prescribe the use of adequate and effective statistical\nsampling procedures in the examination of disbursement vouchers\nnot exceeding such amounts as may from time to time be prescribed\nby the Comptroller General of the United States; and no certifying\nor disbursing officer acting in good faith and in conformity with such\nprocedures shall be held liable with respect to any certification or pay-\nment made by him on a voucher which was not subject to specific exam-\nination because of the prescribed statistical sampling procedure: Pro-\nvided, That such officer and his department or agency have diligently\npursued sollection action to the illegal, improper, or incorrect\npayment in accordance with procedures prescribed by the Comptroller\nGeneral. The Comptroller General shall include in his reviews of\naccounting systems an evaluation of the adequacy and effectiveness of\nprocedures established under the authority of this Act.\".\nTITLE II-AUDIT OF TRANSPORTATION PAYMENTS\nSEC. 201. Section 322 of the Transportation Act of 1940, as amended\n(49 U.S.C. 66), is further amended:\n(1) By deleting from subsection (a) the first sentence thereof\nand substituting therefor the following:\n\"Payment for transportation of persons or property for or\non behalf of the United States by any carrier or forwarder shall\nbe made upon presentation of bills therefor prior to audit by\nthe General Services Administration, or his designee. The right\nis reserved to the United States Government to deduct the amount\nof any overcharge by any carrier or forwarder from any amount\nsubsequently found to be due such carrier or forwarder. This does\nnot affect the authority of the General Accounting Office to make\naudits in accordance with the Budget and Accounting Act, 1921,\nas amended (31 U.S.C. 41); and the Accounting and Auditing\nAct of 1950, as amended (31 U.S.C. 65).\n(2) In the second proviso of subsection (a), by striking out\n\"cognizable by the General Accounting Office\" and by striking\nout \"received in the General Accounting Office\" and inserting\nin lieu of the latter \"received in the General Services Administra-\ntion, or by his designee\"; and\n(3) By redesignating subsections (b) and (c) as subsections\n(c) and (d), respectively, and by inserting the following new\nsubsection (b):\nCORRECT\nH. R. 12113-2\n\"(b) Nothing in subsection (a) hereof shall be deemed to\nprevent any carrier or forwarder from requesting the Comp-\ntroller General to review the action on his claim by the General\nServices Administration, or his designee. Such request shall be\nforever barred unless received in the General Accounting Office\nwithin six months (not including in time of war) from the\ndate the action was taken or within the periods of limitation\nspecified in the second proviso in subsection (a) of this section,\nwhichever is later.\"\nSEC. 202. (a) Incident to the transfer of functions pursuant to the\namendments made by section 201 of this Act, there shall be transferred\nto the General Services Administration such records, property, per-\nsonnel, appropriations, and other funds of the General Accounting\nOffice as the Comptroller General and the Director of the Office of\nManagement and Budget shall jointly determine after consultation\nwith the Administrator of General Services and, with respect to per-\nsonnel, with the Chairman of the United States Civil Service\nCommission.\n(b) Personnel transferred pursuant to subsection (a) of this section\nshall not be reduced in classification or compensation for two years\nafter such transfer, except for cause. After such two-year period, each\nperson transferred pursuant to subsection (a) shall be subject to the\nprovisions of section 5337 of title 5, United States Code, as if such\nperson had continued to be an employee of the General Accounting\nOffice.\nSEC. 203. (a) The transfer of functions and personnel under this\ntitle shall be effective on such date as is mutually determined by the\nComptroller General of the United States and the Administrator of\nGeneral Services, but not earlier than October 1, 1975, and not later\nthan September 30, 1976.\n(b) Upon the enactment of this Act the Comptroller General of the\nUnited States shall establish and carry out 9 continuing program of\npersonnel development and improvement applicable to the personnel\nwho will be transferred under this title. Such program shall include\nprovisions for training, career development and counseling services, a\nreview of equal employment opportunity problems and the taking of\ncorrective action, where appropriate, and any restructuring, reclassifi-\ncation, and redesigning of positions necessary to effectuate a full and\nadequate transfer of the functions as provided for under this title.\n(c) At least sixty days prior to the effective date determined under\nsubsection (a), the Administrator of General Services shall estab-\nlish a detailed plan for the transfer of functions and personnel under\nthis title and shall publish such plan in the Federal Register. Such\nplan shall be based on a thorough survey of the availability of trans-\nportation to any new location for functions and personnel transferred\nand of the availability of parking facilities and food, health, and\nother services for personnel transferred, and shall include a detailed\ndescription of a personnel development program to be conducted by\nthe Administrator of General Services to assure the establishment\nand maintenance of procedures which guarantee equal employment\nopportunities, promotion opportunities, employment and career coun-\nseling, and training and career development for personnel who are\ntransferred.\n(d) Six months after the date of the transfer of the personnel and\nfunctions under this title, the Administrator of the General Services\nAdministration shall make a report to the Congress as to actions\nwhich he has taken to implement such plan and the transfer of such\npersonnel and functions thereunder.\nH. R. 12113-3\nTITLE III-AUDIT OF NONAPPROPRIATED FUND\nACTIVITIES\nSEC. 301. (a) The (1) operations and funds (including central\nfunds) of nonappropriated fund and related activities authorized or\noperated by an executive agency to sell merchandise or services to\nmilitary or other Government personnel and their dependents, such\nas the Army and Air Force Exchange Service, Navy Exchanges,\nMarine Corps Exchanges, Coast Guard Exchanges, Exchange Councils\nof the National Aeronautics and Space Administration, commissaries,\nclubs, and theaters, (2) systems of accounting and internal controls\nof such funds and activities, and (3) any internal or independent\naudits or reviews of such funds and activities shall, unless otherwise\nprovided by law, be subject to review by the Comptroller General of\nthe United States in accordance with such principles and procedures\nand under such rules and regulations as he may prescribe. The Comp-\ntroller General and his duly authorized representatives shall have\naccess to those books, accounts, records, documents, reports, files, and\nother papers, things, or property relevant to funds and activities\nwithin this subsection as are deemed necessary by the Comptroller\nGeneral.\n(b) When required by the Comptroller General for such nonap-\npropriated fund and related activities with gross receipts from sales\nof more than $100,000 a year as he may designate by class, or upon\nspecific request of the Comptroller General any other case, each\nexecutive agency shall furnish promptly a copy of the annual report\nof any nonappropriated fund or related activity referred to in sub-\nsection (a). If such information is not included in any activity's\nannual report, such agency shall also furnish a statement showing the\nyearly financial operations, financial condition, and cash flow, and such\nother annual information relating to the activity as may be agreed\nupon by the Comptroller General and the head of the executive agency\nconcerned.\nTITLE IV-EMPLOYMENT OF EXPERTS AND\nCONSULTANTS\nSEC. 401. The Comptroller General may employ experts and con-\nsultants in accordance with section 3109 of title 5, United States\nCode, at rates not in excess of the maximum daily rate prescribed\nfor GS-18 under section 5332 of title 5, United States Code, for\npersons in the Government service employed intermittently. Ten\nsuch experts or consultants may be employed for periods not in\nexcess of three years.\nTITLE V-GENERAL ACCOUNTING OFFICE BUILDING\nSEC. 501. (a) The Comptroller General of the United States shall\nbe entitled to the use of such space in the General Accounting Office\nBuilding as he determines to be necessary, and the head of any\nFederal agency which exercises authority over such building shall\nprovide the Comptroller General with such space within the building\nas the Comptroller General determines to be necessary.\n(b) Notwithstanding any other provision of law, during the one-\nyear period beginning on the date of enactment of this Act, the\nAdministrator for General Services may contract for the rent of a\nbuilding in the District of Columbia to the extent necessary to secure\nan amount of space equal to the amount of space which the Adminis-\nH. R. 12113-4\ntrator makes available to the Comptroller General of the United\nStates during such one-year period under the provisions of subsection\n(a).\nTITLE VI-AUDITS OF GOVERNMENT CORPORATIONS\nAMENDMENTS TO THE GOVERNMENT CORPORATION CONTROL ACT\nSEC. 601. (a) Section 105 of the Government Corporation Control\nAct (31 U.S.C. 850) is amended by adding thereto the following\nsentence: \"Effective July 1, 1974, each wholly owned Government\ncorporation shall be audited at least once in every three years.\".\n(b) The first sentence of section 106 of such Act (31 U.S.C. 851)\nis amended to read as follows: \"A report of each audit conducted under\nsection 105 shall be made by the Comptroller General to the Congress\nnot later than six and one-half months following the close of the\nlast year covered by such audit.\".\n(c) Section 202 of such Act (31 U.S.C. 857) is amended by adding\nthereto the following sentence: \"Effective July 1, 1974, each mixed-\nownership Government corporation shall be audited at least once in\nevery three years.\".\n(d) The first sentence of section 203 of such Act (31 U.S.C. 858)\nis amended to read as follows: \"A report of each audit conducted\nunder section 202 shall be made by the Comptroller General to the\nCongress not later than six and one-half months following the close\nof the last year covered by such audit.\".\nAMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT\nSEC. 602. (a) Section (b) of the Federal Deposit Insurance Act\n(12 U.S.C. 1827 (b)) is amended by adding thereto the following\nsentence: \"The Corporation shall be audited at least once in every\nthree years.\".\n(b) The first and second sentences of section 17 (c) of such Act (12\nU.S.C. 1827 are deleted and the following is inserted in their\nplace: \"A report of each audit conducted under subsection (b) of this\nsection shall be made by the Comptroller General to the Congress not\nlater than six and one-half months following the close of the last year\ncovered by such audit.\"\nAMENDMENT TO FEDERAL CROP INSURANCE ACT\nSEC. 603. Section 513 of the Federal Crop Insurance Act (52 Stat.\n76; 7 U.S.C. 1513) is amended to read as follows: \"The Corporation\nshall at all times maintain complete and accurate books of accounts and\nshall file annually with the Secretary of Agriculture a complete report\nas to the business of the Corporation.\".\nAMENDMENTS TO THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968\nSEC. 604. Section 107 (g) of the Housing and Urban Development\nAct of 1968 (12 U.S.C. 1701y(g)) is amended by:\n(1) adding a new sentence at the end of subparagraph (1)\nthereof as follows: \"Such audit shall be made at least once in\nevery three years.\".\n(2) substituting the following sentence in lieu of the first sen-\ntence in subparagraph (2) thereof: \"A report of each such audit\nshall be made by the Comptroller General to the Congress not\nlater than six and one-half months following the close of the last\nyear covered by such audit.\".\nH. R. 12113-5\nAMENDMENT TO DISTRICT OF COLUMBIA REDEVELOPMENT ACT OF 1945\nSEC. 605. Section 17 of the District of Columbia Redevelopment\nAct of 1945 (60 Stat. 801) is amended by deleting the word \"annual\"\nfrom the clause \"such books shall be subject to annual audit by the\nGeneral Accounting Office.\".\nTITLE VII-REVISION OF ANNUAL AUDIT\nREQUIREMENTS\nAMENDMENT TO FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES\nACT OF 1949\nSEC. 701. Section 109(e) of the Federal Property and Administra-\ntive Services Act of 1949 (40 U.S.C. (e)) is amended to read as\nfollows:\n\"(e) (1) As of June 30 of each year, there shall be covered into the\nUnited States Treasury as miscellaneous receipts any surplus in the\nGeneral Supply Fund, all assets, liabilities, and prior losses con-\nsidered, above the amounts transferred or appropriated to establish\nand maintain said fund.\n\"(2) The Comptroller General shall make audits of the General\nSupply Fund in accordance with the provisions of the Accounting and\nAuditing Act of 1950 and make reports on the results thereof.\".\nAMENDMENT TO THE FEDERAL AVIATION ACT OF 1958\nSEC. 702. That part of the second sentence of section 1307 (f) of\nthe Federal Aviation Act of 1958 (49 U.S.C. 1537(f)) which pre-\ncedes the proviso is amended to read as follows: \"The Secretary shall\nmaintain a set of accounts which shall be audited by the Comptroller\nGeneral in accordance with the provisions of the Accounting and\nAuditing Act of 1950.\".\nAMENDMENT WITH RESPECT TO THE BUREAU OF ENGRAVING AND\nPRINTING FUND\nSEC. 703. Section 6 of the Act entitled \"An Act to provide for financ-\ning the operations of the Bureau of Engraving and Printing, Treas-\nury Department, and for other purposes\" (31 U.S.C. 181d) is amended\nto read as follows: \"The financial transactions, accounts, and reports\nof the fund shall be audited by the Comptroller General in accord-\nance with the provisions of the Accounting and Auditing Act of 1950.\".\nAMENDMENT WITH RESPECT TO THE VETERANS' CANTEEN SERVICE\nSEC. 704. Section 4207 of title 38, United States Code, is amended\nto read as follows:\n\"§ 4207. Audit of accounts\n\"The Service shall maintain a set of accounts which shall be audited\nby the Comptroller General in accordance with the provisions of\nthe Accounting and Auditing Act of 1950.\".\nAMENDMENT WITH RESPECT TO THE HIGHER EDUCATION INSURED LOAN\nPROGRAM\nSec. 705. (a) Paragraph (2) of section 432(b) of the Higher Edu-\ncation Act of 1965 (20 U.S.C. 1082(b) (2)) is amended to read as\nfollows:\nH. R. 12113-6\n\"(2) maintain with respect to insurance under this part a\nset of accounts, which shall be audited by the Comptroller Gen-\neral in accordance with the provisions of the Accounting and\nAuditing Act of 1950, except that the transactions of the Com-\nmissioner, including the settlement of insurance claims and of\nclaims for payments pursuant to section 428, and transactions\nrelated thereto and vouchers approved by the Commissioner in\nconnection with such transactions, shall be final and conclusive\nupon all accounting and other officers of the Government.\".\n(b) Section 402 (a) (2) of the Housing Act of 1950 (64 Stat. 78; 12\nU.S.C. 1749a (a) (2)) is amended to read as follows:\n\"(2) maintain a set, of accounts which shall be audited by the\nComptroller General in accordance with the provisions of the\nAccounting and Auditing Act of 1950: Provided, That such finan-\ncial transactions of the Administrator as the making of loans and\nvouchers approved by the Administrator in connection with such\nfinancial transactions shall be final and conclusive upon all officers\nof the Government.\".\nAMENDMENT TO THE FEDERAL CREDIT UNION ACT\nSEC. 706. Section 209 (b) (2) of the Federal Credit Union Act as\nadded by section 1 of Public Law 91-468 (12 U.S.C. 1789 (b) (2)) is\namended by deleting the word \"annually\" therefrom.\nAMENDMENT WITH RESPECT TO AUDIT OF THE GOVERNMENT PRINTING\nOFFICE\nSEC. 707. The third sentence of subsection 309 (c) of title 44 of the\nUnited States Code is amended to read as follows: \"The Comptroller\nGeneral shall audit the activities of the Government Printing Office\nat least once in every three years and shall furnish reports of such\naudits to the Congress and the Public Printer.\".\nTITLE VII-LIMITATION OF TIME ON CLAIMS AND\nDEMANDS\nSEC. 801. Section 1 of the Act of October 9, 1940 (54 Stat. 1061,\nch. 788), is amended by deleting the phrase \"10 full years\" and sub-\nstituting \"6 years\" therefor.\nSEC. 802. The amendment provided for in section 801 shall go into\neffect 6 months after the date of enactment and will have no effect on\nclaims received in the General Accounting Office before that time.\nSpeaker of the House of Representatives.\nVice President of the United States and\nPresident of the Senate.\nDecember 24, 1974\nDear Mr. Director:\nThe following bills were received at the White House on December 24th:\nS.J. Res. 40\nB. 3481\nH.R. 8958\nH.R. 14600\nS.J. Res. 133\nS. 3548\nM.R. 8981\nH.R. 14689\nS.J. Res. 262\n8. 3934\nH.R. 9182\nH.R. 14718\nS. 251\n8. 3943\nH.R. 9199\nH.R. 15173\nS. 356\nS. 3976\nH.R. 9588\nH.R. 15223\nS. 521\nS. 4073\nH.R. 9654\nH.R. 15229\nS. 544\nS. 4206\nM.R. 10212\nH.R. 15322\nS. 663\nH.J. Res. 1178\nH.R. 10701\nK.R. 15977\nS. 754\nH.J. Res. 1180\nH.R. 10710\nH.R. 16045\nS. 1017\nK.R. 421\nH.R. 10827\nH.R. 16215\nS. 1083\nM.R. 1715\nH.R. 11144\nH.R. 16596\nvs. 1296\nK.R. 1820\nH.R. 11273\nE.R. 16925\nS. 1418\nH.R. 2208\nM.R. 11796\nMH.R. 17010\nS. 2149\nH.R. 2933\nM.R. 11802\nH.R. 17045\n8. 2446\nH.R. 3203\nH.R. 11847\nM.R. 17085\nS. 2807\nH.R. 3339\nH.R. 11897\nH.R. 17468\nS. 2854\nM.R. 5264\nH.R. 12044\nH.R. 17558\nS. 2888\nH.R. 5463\nH.R. 12113\nH.R. 17597\nS. 2994\nH.R. 5773\nH.R. 12427\nH.R. 17628\nS. 3022\nH.R. 7599\nH.R. 12884\nH.R. 17655\nS. 3289\nH.R. 7684\nH.R. 13022\nS. 3358\nH.R. 7767\nH.R. 13296\nS. 3359\nH.R. 8214\nH.R. 13869\nS. 3394\nH.R. 8322\nH.R. 14449\nS. 3433\nH.R. 8591\nH.R. 14461\nPlease let the President have reports and recommendations as to the\napproval of these bills as soon as possible.\nSincerely,\nRobert D. Linder\nChief Executive Clerk\nThe Honorable Roy L. Ash\nDirector\nOffice of Management and Budget\nWashington, D. C."
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