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1975/01/02 HR12113 General Accounting Office Act of 1974
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The original documents are located in Box 19, folder "1/2/75 HR12113 General Accounting
Office Act of 1974" of the White House Records Office: Legislation Case Files at the
Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from the White House Records Office: Legislation Case Files at the Gerald R. Ford Presidential Library
APPROVED
ACTION
THE WHITE HOUSE
Last Day: January 4
WASHINGTON
December 31, 1974
Posted
1/3
MEMORANDUM FOR THE PRESIDENT
archive
To
FROM:
KEN COLE
1/3
SUBJECT:
Enrolled Bill H.R. 12113
General Accounting Office Act of 1974
Attached for your consideration is H.R. 12113, sponsored
by Representatives Holifield and Horton, which revises
and strengthens certain authorities and functions of the
Comptroller General, mostly in regard to the General Accounting
Office's auditing responsibilities.
OMB recommends approval and provides additional background
information in its enrolled bill report (Tab A).
Max Friedersdorf (Loen) and Phil Areeda both recommend approval.
RECOMMENDATION
That you sign H.R. 12113 (Tab B).
in
SECURITY
FORD
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF management AND BUDGET
WASHINGTON, D.C. 20503
DEC 28 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 12113 - General Accounting Office
Act of 1974
Sponsors - Rep. Holifield (D) California and Rep. Horton
(R) New York
Last Day for Action
January 4, 1975 - Saturday
Purpose
Revises and strengthens certain authorities and functions of the
Comptroller General, mostly in regard to the General Accounting
Office's auditing responsibilities.
Agency Recommendations
Office of Management and Budget
Approval
General Services Administration
Approval
Department of the Treasury
Approval
Civil Service Commission
Approval
Farm Credit Administration
Approval
Department of Agriculture
Approval
District of Columbia
Approval
Department of Defense
No objection
Department of Transportation
No objection
Veterans Administration
No objection
National Credit Union Administration
No objection
Department of Health, Education
and Welfare
No objection
Department of Justice
Defers to OMB
Department of Housing and Urban
Development
Defers to other
agencies
UNIALD R. FORD LIBRAIN
2
Discussion
The Office of Management and Budget (OMB) and numerous other
agencies reported on H.R. 12113 and its companion Senate bill
while they were pending in the Government Operations Committees
of both Houses. The legislation consists of eight titles; the
Administration supported one of the titles, stated no objection
to four others, and took no position on three others.
Provision supported by the Administration
Statistical sampling procedures in the examination of vouchers --
Title I would amend Public Law 88-521 by (a) eliminating the
present $100 limitation on the amount of disbursement vouchers
subject to audit by statistical sampling, and (b) authorizing
the Comptroller General to prescribe such limitations as he
considers appropriate and to change them from time to time as
conditions warrant.
With increased price levels of recent years, the percentage of
vouchers under $100 and the economies realizable from statistical
sampling of vouchers have decreased. Voucher sampling techniques
have resulted in savings of more than $1.5 million annually, and
the establishment of a higher limitation would increase potential
savings in both time and manpower by subjecting more vouchers to
audit by such techniques. Thus, the Administration supported
Title I of the bill.
Provisions not opposed by the Administration
Audit of transportation payments -- Title II would amend section
322 of the Transportation Act of 1940 to transfer primary responsi-
bility for the audit of transportation bills and recovery of over-
charges from the General Accounting Office (GAO) to the General
Services Administration (GSA) or other agency as the GSA Administra-
tor may designate. The GAO would nevertheless retain its appellate
function, enabling carriers to request the Comptroller General to
review executive agency action on their claims.
Title II also provides for the transfer of all GAO personnel,
records, and funds involved in the audit function. It contains
numerous provisions (relating to personnel classification and
salary retention, training, counseling, career development, and
equal employment opportunity programs) which are intended to
alleviate hardship to the approximately 400 employees who would
be affected.
FORD
.
GERALD
HERRY
3
While the Administration did not object to the transfer of the
transportation audit function, the Justice Department reported
in opposition to the residual GAO review authority on the ground
that it would subject internal memoranda and working papers of
the audit-performing agency to GAO examination, thereby placing
the agency in a disadvantageous position in cases of disagreement
and imposing a restraint on staff development of policy and
opinions.
Audit of nonappropriated fund activities -- Title III would make
nonappropriated fund activities which sell merchandise or ser-
vices to military or other Government personnel and their de-
pendents (such as the military exchanges) subject to audit by
the Comptroller General, and would give the Comptroller General
authority to inspect records and property and to obtain copies
of annual reports of such nonappropriated funds.
Employment of experts and consultants -- Title IV would grant the
Comptroller General permanent authority to employ experts and
consultants in accordance with 5 U.S.C. 3109 at rates not to
exceed the maximum daily rate prescribed for GS-18 under 5 U.S.C.
5332. Ten such experts or consultants could be employed for
periods of up to three years, as an exception to the one-year
limitation contained in 5 U.S.C. 3109.
In its report to the Senate Committee on Government Operations
on this provision, the Civil Service Commission recommended
deletion of the exception to 5 U.S.C. 3109 on the grounds that
GAO's expert and consultant services are by their very nature
considered temporary or intermittant, and that it would seem to
be a contradiction in terms to authorize the employment of experts
and consultants for periods longer than the one year currently
prescribed for such individuals.
General Accounting Office Building -- Title V would provide the
GAO first priority on space within the GAO headquarters building,
including if necessary, the displacement of executive branch
agencies (which currently occupy almost half the space). The
GSA, which has custody and control over the GAO building in
its administration of the Federal Buildings Fund, would be re-
quired to furnish the Comptroller General with such space as he
considers necessary. During the year following enactment of
H.R. 12113, the GSA would be authorized to rent an amount of
building space equal to that which it furnishes to the Comptroller
General during the same period.
FORD
BERALD
LIBRARY
4
This provision results from new GAO functions and responsi-
bilities, particularly under the Congressional Budget and
Impoundment Control Act of 1974, which require the GAO to
expand its facilities.
Provisions on which the Administration
took no position
Audits of Government corporations -- Title VI would authorize
the Comptroller General to perform audits of wholly owned and
mixed-ownership Government corporations at least once in every
three years, rather than annually as at present.
Revision of annual audit requirements -- Title VII would eliminate
the requirements for annual audits of nine specified revolving
funds and make them subject to audit at the discretion of the
Comptroller General, in accordance with the provisions of the
Accounting and Auditing Act of 1950.
Limitation of time on claims and demands -- Title VIII would
reduce the period of time allowed for filing claims in the GAO,
from ten to six years after the date that a claim accrues. The
purpose of this provision is to make the time limitation con-
sistent with the statute of limitations now applicable to claims
filed in administrative agencies and the courts.
Conclusion
H.R. 12113 in its enrolled form constitutes a substantial improve-
ment over earlier versions of this legislation. The original
bills contained sweeping authorities for the Comptroller General
which raised many fundamental and complex issues concerning the
appropriate balance of legislative and executive authority. All
of the onerous provisions have been removed during the develop-
ment of H.R. 12113, and even some of the surviving features reflect
amendments which were proposed by the Administration.
While several agencies may have specific concerns with one pro-
vision or another, we believe that those concerns are not over-
whelming and that the bill on balance is quite acceptable.
Accordingly, we recommend its approval.
Walfred H. Round
Assistant Director for
Legislative Reference
Enclosures
FORD LIBRARY
DISTRICT OF OF COLUMBIA
THE DISTRICT OF COLUMBIA
WALTER E. WASHINGTON
WASHINGTON, D.C. 20004
Mayor-Commissioner
December 24, 1974
Mr. Wilfred H. Rommel
Assistant Director for
Legislative Reference
Office of Management and Budget
Executive Office Building
Washington, D. C.
Dear Mr. Rommel:
This is in reference to a facsimile of an enrolled
enactment of Congress entitled:
H.R. 12113- To revise and restate certain
functions and duties of the Comptroller
General of the United States and for other
purposes.
The enrolled bill, as it affects the District of
Columbia Government, would by Sec. 101 authorize
The Commissioner of the District of Columbia, if
he determines that economies will result therefrom,
to prescribe certain statistical sampling procedures
in the examination of District disbursement vouchers.
It would further provide that any certifying or dis-
bursing officer acting properly and in good faith is
to be saved harmless with respect to any such certi-
fication or payment by voucher not subject to spe-
cific examination because of the simplifying proce-
dure hereby specified.
The enrolled bill by Sec. 605 would change the
existing authorization for an audit of the books
FORD - LIBRARY
of the National Capital Housing Authority on an
"annual" basis only, thereby authorizing an audit
at any time at the discretion of the General Ac-
counting Office.
The District Government approves the objectives of
H.R. 12113 and therefore recommends its approval.
Sincerely yours
WALTER E. WASHINGTON
Mayor-Commissioner
- 2 -
DEPARTMENT OF THE AIR FORCE
WASHINGTON 20330
OF DEFENSE DEPART ENSE
OFFICE OF THE SECRETARY
DEC 24 1974
min
STATES OF
Dear Mr. Director:
Reference is made to your request for the views of
the Department of Defense with respect to the enrolled
enactment of H.R. 12113, 93rd Congress, an Act "To revise
and restate certain functions and duties of the Comptroller
General of the United States and for other purposes". The
Secretary of Defense has delegated to the Department of the
Air Force the responsibility for expressing the views of
the Department of Defense.
H.R. 12113 revises and restates certain functions and
duties of the Comptroller General. The purpose is to permit
more productive use of resources of the General Accounting
Office and give fuller recognition to its role as a legisla-
tive rather than an executive agency. The following pro-
visions are of particular interest to the Department of
Defense:
a. Title I authorizes the head of any department
or agency to prescribe the use of statistical sampling pro-
cedures in the examination of disbursement vouchers not
exceeding such amounts as may be prescribed by the Comptroller
General. Current law limits the application of these pro-
cedures to vouchers amounting to less than $100.
b. Title II provides for the transfer of the
general responsibility for the initial auditing of trans-
portation payments from the General Accounting Office to the
General Services Administration.
C. Title III makes the operations and funds (in-
cluding central funds) of nonappropriated fund activities
subject to review by the Comptroller General and gives him
access to their records and property. This title also
authorizes the Comptroller General to require copies of
the annual report of any nonappropriated fund he designates.
The designation may be made by class in the case of activi-
ties having gross receipts from sales of over $100,000 a
year. In other cases, the designation must be made by spe-
cific request.
d. Title VIII reduces the statute of limitations
for the filing of claims in the General Accounting Office
from ten to six years. This change will not take effect for
six months after approval of the bill.
The Department of the Air Force, on behalf of the De-
partment of Defense, has no objection to approval and
signature by the President of the enrolled enactment of
H.R. 12113.
There will be no first year or recurring costs or
savings to the Department of Defense as the result of en-
actment of this bill.
This report has been coordinated within the Department
of Defense in accordance with procedures prescribed by the
Secretary of Defense.
Sincerely,
Assistant Secretary of the Air Force
(Financial Management)
Honorable Roy L. Ash
Director
Office of Management and
Budget
BERAID R. FORD LIBRANY
2
OF
DEPARTMENT
OFFICE OF THE SECRETARY OF TRANSPORTATION
*
WASHINGTON, D.C. 20590
UNITED STATES OF AMERICA
December 24, 1974
GENERAL COUNSEL
Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, D.C. 20503
Dear Mr. Ash:
Your office has asked for the views of this Department concerning H.R. 12113,
an enrolled bill "To revise and restate certain functions and duties of the
Comptroller General of the United States and for other purposes."
This bill basically (1) amends the Transportation Act of 1940 (49 U.S.C. 66)
to transfer certain authority for the audit and settlement of transportation
claims from the General Accounting Office (GAO) to the General Services
Administration (GSA) ; (2) provides for GAO audit of nonappropriated fund
activities; (3) amends the Government Corporation Control Act (31 U.S.C. 850)
to require audits of such corporations at least once in every three years,
and also amends various other acts, including the Federal Aviation Act of
1958, to allow audits at the discretion of the Comptroller General pursuant
to the Accounting and Auditing Act of 1950; (4) removes the $100 limitation
from the present authority to statistically examine disbursement vouchers,
leaving the limit to be established from time to time by the Comptroller
General; (5) shortens the time limit for the submission of certain claims
from ten to six years; and (6) provides other changes affecting GAO which
have little or no impact upon the Department.
The Department in the past has supported most of these changes and believes
that these provisions will be of benefit not only to this Department but to
most agencies in the Government. Those reservations which we have expressed
in prior correspondence to the Congress are not serious enough, in our view,
to outweigh our general approval of this enrolled bill. With respect to
Title V, however, we defer to the opinion of the General Services Administration.
This Department does not object to the President's signing the enrolled bill,
H.R. 12113.
Sincerely,
Aar
Rodney E. Eyster
OERALD R. FORD ENTRY
However, since H. R. 12113 would primarily affect the oper-
ations of the General Accounting Office, we defer to the
Comptroller General regarding recommendations as to Presi-
dential action on H. R. 12113.
Sincerely,
RICHARD L. ROUDEBUSH
Administrator
2.
COMPANY RATION
VETERANS ADMINISTRATION
OFFICE OF THE ADMINISTRATOR OF VETERANS AFFAIRS
WASHINGTON, D.C. 20420
1930
DECEMBER 2 4 1974
The Honorable
Roy L. Ash
Director, Office of
Management and Budget
Washington, D. C. 20503
Dear Mr. Ash:
This will respond to the request of the Assistant
Director for Legislative Reference for the views of the Vet-
erans Administration on the enrolled enactment of H. R. 12113,
93d Congress, the "General Accounting Office Act of 1974".
Our comments will be confined to section 704 of the
act as it applies to the Veterans' Canteen Service. Section
704 would amend section 4207 of title 38, United States Code.
Section 4207 requires the Veterans' Canteen Service to main-
tain accounts which are audited annually by the General
Accounting Office in accordance with the principles and pro-
cedures applicable to commercial transactions, as provided
in the Government Corporation Control Act (31 U.S.C. 841-
869). Section 704 of H. R. 12113 would substitute a require-
ment that the mentioned accounts be audited in accordance
with the provisions of the Accounting and Auditing Act of
1950. The frequency of the audits would be within the dis-
cretion of the Comptroller General.
The liberalization proposed by section 704 of the
act would have little or no effect on the operations of the
Veterans' Canteen Service. Consequently, we would have no
objection to Presidential approval of the enrolled bill.
STATE FORD LIBRIRY
CARDITUNION CREDIT UNION
PATION
NATIONAL CREDIT UNION ADMINISTRATION
Washington, D.C. 20456
GC/JLO:eor
Office of General Counsel
December 23, 1974
Mr. W. H. Rommel
Assistant Director for Legislative Reference
Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
Dear Mr. Rommel:
This will acknowledge receipt of your request of December 20, 1974,
for our views and recommendations on enrolled bills S. 356 and H.R. 12113.
With respect to S. 356, although we are disappointed that credit
unions were not included along with banks under the regulatory commands
of the Federal Reserve Board in order to avoid disparate treatment among
competitors in the financial marketplace, we raise no objection to the
subject enrolled bill.
As regards H.R. 12113, we also raise no objection to the subject
enrolled bill.
Sincerely yours,
John 1. Ostry
JOHN L. OSTBY
General Counsel
BERALD R. FORD -
-
-
HEALTH.
DELICATION.
RECEIVED AND
DEPARTMENT OF HEALTH, EDUCATION. AND WELFARE
U.S.A.
Honorable Roy L. Ash
DEC 24 1974
Director, Office of Management
and Budget
Washington, D. C. 20503
Dear Mr. Ash:
This is in response to Mr. Rommel's request for a report
on H.R. 12113, an enrolled bill "To revise and restate
certain functions and duties of the Comptroller General
of the United States, and for other purposes."
Title I of the bill would amend Public Law 88-521 so
as to eliminate the $100 limitation on the amount of the
disbursement vouchers subject to audit by statistical
sampling techniques and, in lieu thereof, impose limitations
of such amounts as may from time to time be prescribed
by the Comptroller General for each department or agency.
The present law is restrictive in the sense that it does
not enable the Comptroller General to apply statistical
sampling techniques in response to changing conditions.
For example, the general increase in price levels since
1964 has eliminated many vouchers from statistical
sampling because of the $100 limitation. Another example
is the 1969 increase in per diem rates that also removed
many vouchers from statistical sampling. Since title I
would enable the Comptroller General to set the level for
statistical sampling, the Comptroller General would be in
a position to react promptly to events that would impact
upon the availability of statistical sampling.
We therefore are in favor of title I.
Section 705 of title VII would eliminate the present
requirement in section 432 (b) (2) of the Higher Education
Act of 1965 for an annual audit by the Comptroller General
of the Department's student loan insurance fund. In our
Honorable Roy L. Ash
2
view, the frequency of audit is a matter which can be
left to the discretion of the Comptroller General, who
is in a position to judge the need for and relative
priority of audits of the fund.
We also, therefore, favor title VII of the enrolled bill.
The remaining five titles of the bill deal with various
other functions of the General Accounting Office and do
not directly affect responsibilities of the Department
of Health, Education, and Welfare. For this reason we
do not offer recommendations with respect to their desirability.
In summary, subject to the views of agencies more substantially
affected by the bill, we have no objection to its approval.
Sincerely,
BEAULO R. FORD
BEI STATEMENT a
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
DATE: 3-3-75
TO:
Bob Linder
FROM: LRD (Hyde)
Attached are (1) the Agriculture
views letter on H.R. 12113, 93rd Cong.
and (2) the Treasury and ICC views
letters on S. 281 for inclusion in
the enrolled bill files. Thanks.
OMB FORM 38
REV AUG 73
STATE STATES DEPARTMENT THE ))
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D.C. 20250
December 27, 1974
Honorable Roy L. Ash
Director, Office of Management
and Budget
Washington, D.C. 20530
Dear Mr. Ash:
In reply to the request of your office, the following report is
submitted on the enrolled enactment H.R. 12113, "To revise and
restate certain functions and duties of the Comptroller General
of the United States."
This Department recommends that the President approve the bill.
Section 603 of the bill would amend the Federal Crop Insurance
Act (52 Stat. 76; 7 U.S.C. 1513) to delete the requirement that
the financial transactions of the Corporation shall be audited
at least once each year by the General Accounting Office for the
sole purpose of making a report to Congress.
Section 601 of the bill would amend the Corporation Control Act
to require that each wholly owned Government corporation shall
be audited at least once every three years.
It is believed that less frequent audits of the Commodity Credit
Corporation and the Federal Crop Insurance Corporation by the
General Accounting Office will have no detrimental effects because
the Department's Office of Audit also performs an annual audit of
the Corporation's financial transactions. The cost of annual
audits of the Commodity Credit Corporation billed by the General
Accounting Office in 1972, 1973, and 1974 was $71,000, $76,000,
and $80,000 (estimated), respectively, and the cost of such audits
of the Federal Crop Insurance Corporation in such years was
$21,500, $17,500, and $18,000, respectively.
Sincerely,
clayton Yeather
CLAYTON YEUTTER
Acting Secretary
FORD - LIBRARY
ASSISTANT ATTORNEY GENERAL
LEGISLATIVE AFFAIRS
Department of Justice
Washington, D.C. 20530
DEC 24 1974
Honorable Roy L. Ash
Director, Office of Management
and Budget
Washington, D. C. 20503
Dear Mr. Ash:
In compliance with your request, I have examined a facsimile of
the enrolled bill H.R. 12113, the proposed General Accounting Office
Act of 1974.
Title I of the bill would amend subsection (a) of Public Law 88-521
to authorize the use of statistical sampling procedures in the examination
of certain disbursement vouchers. Title II would amend section 322 of
the Transportation Act of 1940 to require the General Services Adminis-
tration to audit certain transportation payments. A transfer of certain
functions and personnel from the General Accounting Office to the General
Services Administration would also be authorized by title II.
The Comptroller General would be authorized by title III to audit
certain nonappropriated fund activities and by title IV to employ experts
and consultants in accordance with 5 U.S.C. 3109. Title V would allow
the Comptroller General to use space in the General Accounting Office
Building.
Title VI and VII would amend a number of statutes to revise the audit
requirements of a number of Government activities. Title VIII would
reduce the time limitation on claims and demands under the Act of October 9,
1940, from ten to six years.
The Department of Justice defers to the Office of Management and
Budget concerning whether this bill should receive Executive approval.
Sincerely,
W Rokection W. Vincent Rakestraw
Assistant Attorney General
REVOLUTION WEENTENNING
1776-1976
U.S. DEPARTMENT * DEVEL URBAN OF MOUSING * AND
THE GENERAL COUNSEL OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410
December 24, 1974
Mr. Wilfred H. Rommel
Assistant Director for
Legislative Reference
Office of Management and Budget
Washington, D. C. 20503
Attention: Ms. Mohr
Dear Mr. Rommel:
Subject: H.R. 12113, 93d Congress, Enrolled Enactment
This is in response to your request for our views on the
enrolled enactment of H.R. 12113, the proposed "General
Accounting Office Act of 1974".
This legislation contains provisions relating primarily
to authorities and responsibilities of the General
Accounting Office and the General Services Administration.
While this Department has no objection to the enactment,
we would defer to those agencies as to the desirability of
its provisions.
Sincerely,
Day los m Palm
for
Robert R. Elliott
FCA
FARM CREDIT ADMINISTRATION
485 L'ENFANT PLAZA, S.W. WASHINGTON, D.C. 20578
December 26, 1974
Director, Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
Attention: Assistant Director for
Legislative Reference
Subject: Report on enrolled bill H.R. 12113, 93d Congress
This is in reply to the request of your office dated December 20, 1974,
for a report on enrolled bill H.R. 12113, an act "To revise and restate
certain functions and duties of the Comptroller General of the United
States and for other purposes.'
Except for the provisions of section 601 (c) of the enrolled bill, we
defer to the views of other executive agencies on which the bill has
specific impact.
Section 601 (c) would amend section 202 of the Government Corporation
Control Act by adding thereto a sentence which, effective July 1,
1974, would require each mixed-ownership Government corporation to be
audited by the General Accounting Office at least once in every three
years. The first sentence of section 202, however, now requires the
financial transactions of mixed-ownership Government corporations to
be audited by the General Accounting Office only for any period during
which Government capital has been invested therein.
Mixed-ownership Government corporations are defined in section 201 of
the Act to include the Central Bank for Cooperatives and regional banks
for cooperatives, Federal land banks, and Federal intermediate credit
banks. These banks are under the supervision of the Farm Credit Admin-
istration which is required by law to examine and audit their transac-
tions not less frequently than once each year. The function of these
banks is to make credit available to farmers, ranchers, producers and
harvesters of aquatic products, their cooperatives, and for certain
rural housing purposes. The banks originally had Government seed
capital invested in them. However, the Government capital in all of
the banks has been repaid--for the Federal land banks by 1947, and for
the banks for cooperatives and Federal intermediate credit banks by the
end of 1968. Since those dates the banks have not been subject to
audit by the General Accounting Office.
2-Assistant Director for Legislative Reference
These Farm Credit institutions are completely owned by their borrower-
members. They do not lend Government funds. Also, the Federal Gov-
ernment does not insure or guarantee in any way the loans made by the
banks or the bonds they sell in the private investment market to obtain
loan funds.
In amending section 202 of the Government Corporation Control Act,
Congress expressed no intention to subject the banks for cooperatives,
Federal land banks, and Federal intermediate credit banks to audit by
the General Accounting Office for any period during which they do not
have Government capital invested in them. Accordingly, we understand
and interpret section 601 (c) of H.R. 12113 to require, effective
July 1, 1974, audit by the General Accounting Office of a bank for
cooperatives, a Federal land bank, or a Federal intermediate credit
bank at least once in every three years only for such period, if any,
during which Government capital has been invested in such bank.
On the basis of our understanding of section 601 (c), and subject to
the views of other executive agencies which are more directly affected
by other provisions of H.R. 12113, the Farm Credit Administration
recommends that the enrolled bill be approved by the President.
Sincerely,
Daniel L. monson
Acting Governor
FCA
FARM CREDIT ADMINISTRATION
485 L'ENFANT PLAZA, S.W. WASHINGTON, D.C. 20578
DEC 2 6 1974
Director, Office of Management and Budget
Executive Office of the President
Washington, D. c. 20503
Attention: Assistant Director for
Legislative Reference
Subject: Report on enrolled bill H.R. 12113, 93d Congress
This is in reply to the request of your office dated December 20, 1974,
for a report on enrolled bill H.R. 12113, an act "To revise and restate
certain functions and duties of the Comptroller General of the United
States and for other purposes."
Except for the provisions of section 601 (c) of the enrolled bill, we
defer to the views of other executive agencies on which the bill has
specific impact.
Section 601 (c) would amend section 202 of the Government Corporation
Control Act by adding thereto a sentence which, effective July 1,
1974, would require each mixed ownership Government corporation to be
audited by the General Accounting Office at least once in every three
years. The first sentence of section 202, however, now requires the
financial transactions of mixed-ownership Government corporations to
be audited by the General Accounting Office only for any period during
which Government capital has been invested therein.
Mixed-ownership Government corporations are defined in section 201 of
the Act to include the Central Bank for Cooperatives and regional banks
for cooperatives, Federal land banks, and Federal intermediate credit
banks. These banks are under the supervision of the Farm Credit Admin-
istration which is required by law to examine and audit their transac-
tions not less frequently than once each year. The function of these
banks is to make credit available to farmers, ranchers, producers and
harvesters of aquatic products, their cooperatives, and for certain
rural housing purposes. The banks originally had Government seed
capital invested in them. However, the Government capital in all of
the banks has been repaid--fox the Federal land banks by 1947, and for
the banks for cooperatives and Federal intermediate credit banks by the
end of 1968. Since those dates the banks have not been subject to
audit by the General Account Office.
BECEINED
1-Assistant Director for Legislative Reference
These Farm Credit institutions are completely owned by their borrower-
members. They do not lend Government funds. Also, the Federal Gov-
erment does not insure or guarantee in any way the loans made by the
banks or the bonds they sell in the private investment market to obtain
loan funds.
In amending section 202 of the Government Corporation Control Act,
Congress expressed no intention to subject the banks for cooperatives,
Federal land banks, and Federal intermediate credit banks to audit by
the General Accounting Office for any period during which they do not
have Government capital invested in them. Accordingly, we understand
and interpret section 601 (c) of H.R. 12113 to require, effective
July 1, 1974, audit by the General Accounting Office of a bank for
cooperatives, a Federal land bank, or a Federal internediate credit
bank at least once in every three years only for such period, if any,
during which Government capital has been invested in such bank.
On the basis of our understanding of section 601 (c), and subject to
the views of other executive agencies which are more directly affected
by other provisions of H.R. 12113, the Farm Credit Administration
recommends that the enrolled bill be approved by the President.
Sincerely,
Acting Covernor
UNITED
STATE
NOISSUMMO clvil STATE
UNITED STATES CIVIL SERVICE COMMISSION
WASHINGTON, D.C. 20415
CHAIRMAN
December 24, 1974
Honorable Roy L. Ash
Director, Office of Management and Budget
Washington, D.C. 20503
Attention: Assistant Director for
Legislative Reference
Dear Mr. Ash:
This is in reply to your request for the views of the Civil Service
Commission on enrolled H.R. 12113, a bill "To revise and restate
certain functions of the Comptroller General of the United States
and for other purposes."
Title II of this legislation would transfer the initial audit of
transportation payments from the General Accounting Office to the
General Services Administration or its designee, and would accord
various rights and protections to the approximately 400 employees
who would be affected. Transfers of employees could not begin
until October 1, 1975, and not later than September 30, 1976.
Those transferred could not be reduced in pay or grade for 2
years after the transfer except for cause. In addition, after
this 2 year period the employees would be subject to the salary
saving provisions of 5 U.S.C. 5337, thus giving them salary
protection for a total of 4 years.
In a report dated November 12, 1974, to the Chairman of the
Senate Subcommittee on Budgeting, Management and Expenditures
on an earlier version of H.R. 12113, the Commission indicated
that a grade and pay retention feature which, in effect, provided
salary protection for 3 years was unnecessary in light of exist-
ing protections available to employees who transfer. Existing
protections include various procedural rights and salary saving
under 5 U.S.C. 5337 for 2 years if the employee is downgraded
through no fault of his own. For the same reason, we consider
section 202(b) of this legislation unnecessary and undesirable, and
we hope it will not become a precedent for similar provisions in
other legislation.
We have no objection to section 203 which is designed to pave the
way for the transfer. Under this section, the Comptroller General
would be required to establish personnel development and counsel-
ing services for transferring employees. At least 60 days prior
FORD & LIBRARY
2.
to the transfer, the Administrator of General Services would
prepare a detailed plan for the transfer of functions and per-
sonnel to be published in the Federal Register. In addition,
6 months after the transfer, the Administrator of General
Services would be required to report to the Congress on implementa-
tion of the plan.
Title IV of H.R. 12113 authorizes the Comptroller General to employ
experts and consultants in accordance with 5 U.S.C. 3109, at rates
not to exceed the rate for GS-18. This is appropriate. However,
this section goes on to say that up to 10 such experts or consult-
ants may be employed for periods not in excess of 3 years. Under
5 U.S.C. 3109, experts or consultants may be employed on a temporary
or intermittent basis for not to exceed 1 year without regard to
competitive appointment procedures. To authorize the employment of
experts and consultants for up to 3 years is inconsistent with the
temporary nature of expert and consultant services, and we object
to it.
Although we object to several of the personnel provisions, our
objections are not such as to warrant a Presidential veto. Therefore,
we recommend that the President sign enrolled H.R. 12113.
By direction of the Commission:
Sincerely yours,
ACTING
Chairman
the
181
3
THE UNDER SECRETARY OF THE TREASURY
ini
WASHINGTON, D.C. 20220
DEC 27 1974
Director, Office of Management and Budget
Executive Office of the President
Washington, D.C. 20503
Attention: Assistant Director for Legislative
Reference
Sir:
Your office has asked for the views of this Department on
the enrolled enactment of H.R. 12113, "To revise and restate
certain functions and duties of the Comptroller General of the
United States, and for other purposes.'
Title I of the enrolled enactment would amend Public Law 88-521
(31 U.S.C. 82b-1(a)) relating to statistical sampling procedures
in the examination of disbursing vouchers, to remove the present
$100 limit to which the present sampling procedures are confined
and to authorize agency heads to extend the technique to vouchers
not exceeding such amounts as may from time to time be prescribed
by the Comptroller General. The Department recommends approval of
this title.
Title II would amend section 322 of the Transportation Act of
1940 relating to examination and payment of transportation vouchers,
to transfer audit and settlement activities from the General Accounting
Office to the General Services Administration or his designee. It
would eliminate the provision in section 322(a) for joint promulga-
tion of implementing standards by the Comptroller General and the
Secretary of the Treasury. The Department recommends approval of
this title.
Title III would authorize the Comptroller General to review
and have access to materials relating to the operations, accounting
systems, and audits of nonappropriated fund and related activities
authorized or operated by an executive agency to sell merchandise
or services to military or other Government personnel and their
dependents. The Department would have no objection to this title
since it is clear that it would not include banking agencies such
as the Comptroller of the Currency, and would not expand the scope
of the General Accounting Office review of the Exchange Stabilization
Fund.
- 2 -
Title VII, insofar as it relates to this Department, would
eliminate the requirement for annual audit of the Bureau of Engraving
and Printing Fund and make it subject to audit at the discretion of
the Comptroller General, in accordance with the provisions of the
Accounting and Auditing Act of 1950. The Department has no objection
to this provision.
We have no comment on Titles IV, V, VI and VIII of the enrolled
enactment.
Sincerely yours,
Ederaid Schmults
Edward C. Schmults
UNITED STATES OF AMERICA
#
*
4
GENERAL SERVICES ADMINISTRATION
#
#
WASHINGTON, DC 20405
#
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GENERAL SERVICES
*
ADMINIS TRATION -
*
*
A
DEC 20 1974
Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, DC 20503
Dear Mr. Ash:
By referral dated December 20, 1974, from the Assistant Director
for Legislative Reference, your office requested the views of the
General Services Administration on enrolled bill H.R. 12113, 93rd
Congress, an act "To revise and restate certain functions and duties
of the Comptroller General of the United States and for other
purposes. "
The portions of the bill of particular interest to GSA are title II
and title V.
Title II amends section 322 of the Transportation Act of 1940, as
amended (49 U.S.C. 66), to transfer to the General Services Admin-
istration a transportation audit function now performed by the General
Accounting Office.
Title V is as follows:
Sec. 501. (a) The Comptroller General of the United States
shall be entitled to the use of such space in the General
Accounting Office Building as he determines to be necessary,
and the head of any Federal agency which exercises authority
over such building shall provide the Comptroller General
with such space within the building as the Comptroller
General determines to be necessary.
(b) Notwithstanding any other provision of law, during the
one-year period beginning on the date of enactment of this
Act, the Administrator for General Services may contract for
the rent of a building in the District of Columbia to the
extent necessary to secure an amount of space equal to the
amount of space which the Administrator makes available to the
Comptroller General of the United States during such
one-year period under the provisions of subsection (a).
Keep Freedom in Your Future With U.S. Savings Bonds
2
We note that to be technically correct, the words "Administrator for
General Services" should read "Administrator of General Services".
GSA favors Presidential approval of the enrolled bill.
Sincerely
Arthur F. Sampson
Administrator
THE WHITE HOUSE
WASHINGTON
WARREN HENDRIKS
MEMORANDUM SUBJECT: FROM: Ven FOR: her for
MAX L. FRIEDERSDORF
Action Memorandum - Log No. 889
Enrolled Bill H.R. 12113
The Office of Legislative Affairs concurs in the attached proposal
and has no additional recommendations.
Attachment
FORD LIBRARY & BERALD
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 88 1574
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 12113 - General Accounting Office
Act of 1974
Sponsors - Rep. Holifield (D) California and Rep. Horton
(R) New York
Last Day for Action
January 4, 1975 - Saturday
Purpose
Revises and strengthens certain authorities and functions of the
Comptroller General, mostly in regard to the General Accounting
Office's auditing responsibilities.
Agency Recommendations
Office of Management and Budget
Approval
General Services Administration
Approval
Department of the Treasury
Approval
Civil Service Commission
Approval
Farm Credit Administration
Approval
Department of Agriculture
Approval
District of Columbia
Approval
Department of Defense
No objection
Department of Transportation
No objection
Veterans Administration
No objection
National Credit Union Administration
No objection
Department of Health, Education
and Welfare
No objection
Department of Justice
Defers to OMB
Department of Housing and Urban
Development
Defers to other
agencies
2
Discussion
The Office of Management and Budget (OMB) and numerous other
agencies reported on H.R. 12113 and its companion Senate bill
while they were pending in the Government Operations Committees
of both Houses. The legislation consists of eight titles; the
Administration supported one of the titles, stated no objection
to four others, and took no position on three others.
Provision supported by the Administration
Statistical sampling procedures in the examination of vouchers --
Title I would amend Public Law 88-521 by (a) eliminating the
present $100 limitation on the amount of disbursement vouchers
subject to audit by statistical sampling, and (b) authorizing
the Comptroller General to prescribe such limitations as he
considers appropriate and to change them from time to time as
conditions warrant.
With increased price levels of recent years, the percentage of
vouchers under $100 and the economies realizable from statistical
sampling of vouchers have decreased. Voucher sampling techniques
have resulted in savings of more than $1.5 million annually, and
the establishment of a higher limitation would increase potential
savings in both time and manpower by subjecting more vouchers to
audit by such techniques. Thus, the Administration supported
Title I of the bill.
Provisions not opposed by the Administration
Audit of transportation payments -- Title II would amend section
322 of the Transportation Act of 1940 to transfer primary responsi-
bility for the audit of transportation bills and recovery of over-
charges from the General Accounting Office (GAO) to the General
Services Administration (GSA) or other agency as the GSA Administra-
tor may designate. The GAO would nevertheless retain its appellate
function, enabling carriers to request the Comptroller General to
review executive agency action on their claims.
Title II also provides for the transfer of all GAO personnel,
records, and funds involved in the audit function. It contains
numerous provisions (relating to personnel classification and
salary retention, training, counseling, career development, and
equal employment opportunity programs) which are intended to
alleviate hardship to the approximately 400 employees who would
be affected.
3
While the Administration did not object to the transfer of the
transportation audit function, the Justice Department reported
in opposition to the residual GAO review authority on the ground
that it would subject internal memoranda and working papers of
the audit-performing agency to GAO examination, thereby placing
the agency in a disadvantageous position in cases of disagreement
and imposing a restraint on staff development of policy and
opinions.
Audit of nonappropriated fund activities -- Title III would make
nonappropriated fund activities which sell merchandise or ser-
vices to military or other Government personnel and their de-
pendents (such as the military exchanges) subject to audit by
the Comptroller General, and would give the Comptroller General
authority to inspect records and property and to obtain copies
of annual reports of such nonappropriated funds.
Employment of experts and consultants -- Title IV would grant the
Comptroller General permanent authority to employ experts and
consultants in accordance with 5 U.S.C. 3109 at rates not to
exceed the maximum daily rate prescribed for GS-18 under 5 U.S.C.
5332. Ten such experts or consultants could be employed for
periods of up to three years, as an exception to the one-year
limitation contained in 5 U.S.C. 3109.
In its report to the Senate Committee on Government Operations
on this provision, the Civil Service Commission recommended
deletion of the exception to 5 U.S.C. 3109 on the grounds that
GAO's expert and consultant services are by their very nature
considered temporary or intermittant, and that it would seem to
be a contradiction in terms to authorize the employment of experts
and consultants for periods longer than the one year currently
prescribed for such individuals.
General Accounting Office Building --- Title V would provide the
GAO first priority on space within the GAO headquarters building,
including if necessary, the displacement of executive branch
agencies (which currently occupy almost half the space). The
GSA, which has custody and control over the GAO building in
its administration of the Federal Buildings Fund, would be re-
quired to furnish the Comptroller General with such space as he
considers necessary. During the year following enactment of
H.R. 12113, the GSA would be authorized to rent an amount of
building space equal to that which it furnishes to the Comptroller
General during the same period.
4
This provision results from new GAO functions and responsi-
bilities, particularly under the Congressional Budget and
Impoundment Control Act of 1974, which require the GAO to
expand its facilities.
Provisions on which the Administration
took no position
Audits of Government corporations -- Title VI would authorize
the Comptroller General to perform audits of wholly owned and
mixed-ownership Government corporations at least once in every
three years, rather than annually as at present.
Revision of annual audit requirements -- Title VII would eliminate
the requirements for annual audits of nine specified revolving
funds and make them subject to audit at the discretion of the
Comptroller General, in accordance with the provisions of the
Accounting and Auditing Act of 1950.
Limitation of time on claims and demands -- Title VIII would
reduce the period of time allowed for filing claims in the GAO,
from ten to six years after the date that a claim accrues. The
purpose of this provision is to make the time limitation con-
sistent with the statute of limitations now applicable to claims
filed in administrative agencies and the courts.
Conclusion
H.R. 12113 in its enrolled form constitutes a substantial improve-
ment over earlier versions of this legislation. The original
bills contained sweeping authorities for the Comptroller General
which raised many fundamental and complex issues concerning the
appropriate balance of legislative and executive authority. All
of the onerous provisions have been removed during the develop-
ment of H.R. 12113, and even some of the surviving features reflect
amendments which were proposed by the Administration.
While several agencies may have specific concerns with one pro-
vision or another, we believe that those concerns are not over-
whelming and that the bill on balance is quite acceptable.
Accordingly, we recommend its approval.
Walfred H. Rommal
Assistant Director for
Legislative Reference
Enclosures
THE WHIT
ACTION MEMORANDUM
WASHINGTON
LOG NO, 889
Date: December 28, 1974
Time: 7:00 p.m.
FOR ACTION: Geoff Shepard oh
cc (for information): Warren Hendriks
Max Friedersdorf oh
Jerry Jones
Phil Areeda no dog
Jack Marsh
FROM THE STAFF SECRETARY
DUE: Date: December 30, 1974
Time: 1:00 p.m.
SUBJECT:
EnrolledBill H.R. 12113 - General Accounting Office
Actinf 1974
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
X
Prepare Agenda and Brief
Draft Reply
H
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate
delay in submitting the material, please K. R COLE, JR.
telephone the Staff Secre
President
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 889
Date:
December 28, 1974
Time: 7:00 p.m.
FOR ACTION: Geoff Shepard
cc (for information): Warren Hendriks
Max Friedersdorf
Jerry Jones
Phil Areeda
Jack Marsh
FROM THE STAFF SECRETARY
DUE: Date: December 30, 1974
Time: 1:00 p.m.
SUBJECT:
EnrolledBill H.R. 12113 - General Accounting Office
Act of 1974
ACTION REQUESTED:
For Necessary Action
X
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
Approral
HCS.
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
Warren K. Hendriks
delay in submitting the required material, please
For the President
telephone the Staff Secretary immediately.
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 889
Date:
Time:
December 28, 1974
7:00 p.m.
FOR ACTION: Geoff Shepard
CC (for information): Warren Hendriks
Max Friedersdorf
Jerry Jones
Phil Areeda
Jack Marsh
FROM THE STAFF SECRETARY
DUE: Date: December 30, 1974
Time: 1:00 p.m.
SUBJECT:
EnrolledBill H.R. 12113 - General Accounting Office
Act of 1974
ACTION REQUESTED:
For Necessary Action
X
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
No Objection
NC
Tompy
BERALD R. FORD LIBRERY
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
Warren K. Hendriks
delay in submitting the required material, please
For the President
telephone the Staff Secretary immediately.
93D CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 93-1300
GENERAL ACCOUNTING OFFICE LEGISLATION
AUGUST 19, 1974.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed.
Mr. HOLIFIELD, from the Committee on Government Operations,
submitted the following
REPORT
[To accompany H.R. 12113]
The Committee on Government Operations, to whom was referred
the bill (H.R. 12113) to revise and restate certain functions and
duties of the Comptroller General of the United States, and for other
purposes, having considered the same, report favorably thereon with
an amendment and recommend that the bill, as amended, do pass.
The amendment strikes out all after the enacting clause and inserts
a substitute text which appears in the reported bill in italic type as
well as in the appendix of this report.
DIVISIONS OF THE REPORT
Summary and purpose.
Committee amendment.
Committee vote.
Hearings.
Titles of the bill :
Title I-Statistical Sampling Procedures in the Examination of
Vouchers.
Title II-Audit of Transportation Payments.
Title III-Audit of Nonappropriated Fund Activities.
Title IV-Employment of Experts and Consultants.
Title V-General Accounting Office Building.
Title VI-Audit of Government Corporations.
Title VII-Revision of Annual Audit Requirements.
Title VIII-Limitation of Time on Claims and Demands.
Estimated costs and savings.
Section-by-section analysis.
Changes in existing law made by the bill, as reported.
Appendix : Text of committee bill as reported.
2
SUMMARY AND PURPOSE
H.R. 12113, titled "General Accounting Office Act of 1974," re-
vises and restates certain functions and duties of the Comptroller
General. The purpose is to permit more productive use of resources in
the General Accounting Office and give fuller recognition to its role
as a legislative rather than an executive agency. To this end, the bill
eliminates excessive audit requirements, realigns certain functions as
between the General Accounting Office and the executive agencies, and
conforms the statute of limitations for the filing of claims in the Gen-
eral Accounting Office to that established for the filing of claims in
the Court of Claims.
As amended, the bill contains 8 titles as follows:
Title I-Statistical Sampling Procedures in the Examination of
Vouchers.
Title II-Audit of Transportation Payments.
Title III-Audit of Nonappropriated Fund Activities.
Title IV-Employment of Experts and Consultants.
Title V-General Accounting Office Building.
Title VI-Audit of Government Corporations.
Title VII-Revision of Annual Audit Requirements.
Title VIII-Limitation of Time on Claims and Demands.
Each of these titles deals with a discrete area and is discussed sepa-
rately below with reference to specific need, justification, background,
problems, and committee revisions.
COMMITTEE AMENDMENT
In the course of subcommittee and committee consideration, several
changes were made in H.R. 12113. These are incorporated in a new
text in the form of a single committee amendment to H.R. 12113,
which strikes out all after the enacting clause and inserts the new lan-
guage. The committee amendment is shown in the appendix.
COMMITTEE VOTE
At a meeting of the full Committee on Government Operations on
August 15, 1974, a quorum being present, H.R. 12113, as amended, was
approved unanimously by voice vote.
HEARINGS
H.R. 12113 was introduced on December 21, 1973, at the request of
the Comptroller General. The Legislation and Military Operations
Subcommittee held hearings on the bill on June 5 and 6, 1974. Testi-
mony and statements were presented by the Comptroller General
and GAO staff personnel, and by representatives of the Office of Man-
agement and Budget, the General Services Administration, and the
Department of Defense. Specific details of their views are included in
the discussion of each title of the bill. In general they supported
the bill or posed issues which your committee has endeavored, where
possible, to accommodate and reconcile by its amendment.
3
TITLES OF THE BILL
TITLE I-STATISTICAL SAMPLING PROCEDURES IN THE EXAMINATION OF
VOUCHERS
Existing law authorizes statistical sampling procedures for the
examination of disbursing vouchers for amounts of less than $100 (31
U.S.C. 82b-1(a)). Title I increases the ceiling to such amounts as
may be prescribed from time to time by the Comptroller General.
As pointed out in testimony by Elmer B. Staats, Comptroller Gen-
eral of the United States,1 the present law was enacted in August 1964;
since then the consumer price index has risen from 93 to 144 in 1974;
and the number of vouchers eligible for sampling audit procedures has
dropped from 65 percent to 51 percent in 1971. As a result, agency sav-
ings available through sampling audit procedures have fallen and only
12 agencies were using sampling procedures in 1971. Estimated savings
were in excess of $1.5 million for these 12 agencies. Raising the ceil-
ing to $250 would increase the savings by about 35 percent, and addi-
tional savings would be achieved as other agencies found it worthwhile
to adopt the sampling procedures.
To avoid the lengthy process of changing a statutory ceiling by
legislation to correspond with inflationary trends, the bill authorizes
the Comptroller General to change the limit from time to time. It also
requires the Comptroller General to evaluate the adequacy and effec-
tiveness of an agency's use of sampling audit procedures. Thus each
agency would have to demonstrate economies in its use of sampling
audit procedures within the limits established by the Comptroller
General.
Title I is supported by the executive agencies. In the judgment of
your committee, it will achieve substantial savings in manpower and
administrative costs without undue risk of unwarranted expenditures.
TITLE II-AUDIT OF TRANSPORTATION PAYMENTS
Summary
Title II of the bill, as amended, transfers responsibility for making
initial audits of transportation vouchers from the General Account-
ing Office to the General Services Administration. The General Ac-
counting Office, however, retains authority to conduct final audits in
accordance with the Budget and Accounting Act of 1921 (31 U.S.C.
41) and the Accounting and Auditing Act of 1950 (31 U.S.C. 65).
Within prescribed time limits, transportation carriers and forwarders
may request review of an administrative audit by the Comptroller
General.
In effect, title II makes the division of responsibility for trans-
portation audits between the General Accounting Office and the execu-
tive branch comparable to that established for other Government dis-
bursements, such as for procurement contracts, pay, and allowances,
1 H.R. 12113, H.R. 12181, and H.R. 14718, "Bills Relating to the General Accounting
Office." hearings before a subcommittee of the Committee OF Government Operations,
House of Representatives, 93d Cong., 2d sess., June 5 and 6, 1974 (hereinafter cited as
"hearings"), pp. 31-32.
4
where initial audit is conducted by the executive agency, subject to
final audit by the General Accounting Office.
Need
The Comptroller General testified as follows 2
The basic reason for proposing the transfer of this opera-
tion is that by its very nature it is primarily an operating
function of the executive branch. Almost all of the transpor-
tation costs of the government are incurred by executive
branch agencies in the course of carrying out their opera-
tions.
This being the case, the responsibility for determining that
the charges billed are technically correct belongs to the
branch of government that procures the transportation serv-
ices. Under the policy established in the Budget and Account-
ing Procedures Act of 1950, this is true for payments for all
other types of services and it should apply to transportation,
as well.
The detailed transportation audit function is simply not
consistent with the general purposes, objectives and respon-
sibilities of the GAO as they have been modernized over the
past 25 years. Its primary emphasis is now on evaluating the
efficiency, economy, and effectiveness of executive agency
management performance and on assisting the Congress in
its legislative and oversight work.
Responsibility for the detailed audit of transportation ex-
penditures should be vested in the executive branch, subject
to overall review by the GAO. This change would conform
this large area of Federal expenditure to the same concept of
executive management control subject to GAO post audit
that applies to all other categories of expenditures.
It would appear, from the Comptroller General's testimony, that the
placement of the initial audit function in the General Accounting
Office is an anachronism going back to 1940, when there was a need
to expedite payment of transportation vouchers, and the General Ac-
counting Office was much more involved in detailed audits of agency
expense vouchers. This function is no longer compatible with the
change in the role of the General Accounting Office made by the Budget
and Accounting Procedures Act of 1950 (31 U.S.C. 65), or with the
policy then established for the transfer of operating functions from
the General Accounting Office to the executive agencies.³
Agency Views
Representatives of the Office of Management and Budget and the
General Services Administration supported the transfer of the trans-
portation audit function from the General Accounting Office. The
Department of Defense opposed title II in its original "open-ended
2 Hearings, p. 33.
3 Hearings, pp.40 and 41.
5
form" under which one or more agencies could be designated by the
Office of Management and Budget to take over the function. However,
the Department of Defense has no objection to title II as revised by
the committee, designating the General Services Administration as the
transferee agency.
Committee Revisions
1. During the hearings there was general agreement by agency
representatives that the transportation audit function should remain
centralized in one executive agency, and that the General Services
Administration was the appropriate agency to take over the basic
responsibility. Centralized operation is required in the interest of
efficiency, effectiveness, and economy because of the numerous tariffs,
schedules, and rulings involved and the scarcity of the highly special-
ized skills required. Carriers also consider it essential to deal with one
agency in resolving questions of interpretation and application of
rates. The Air Transport Association opposed transfer from the Gen-
eral Accounting Office until it was made clear that the function would
be centralized in one executive agency.
Assignment of the function to the General Services Administration
is compatible with its responsibilities and organization. Ronald E.
Zechman, Acting Associate Administrator, General Services Adminis-
tration, testified: 5
We believe that, on the whole, the bill would place
basic responsibility for auditing with executive branch
agencies-where we believe it belongs-leaving the General
Accounting Office in a position to carry out its proper over-
sight responsibilities over the executive branch.
*
*
*
Should the bill be enacted and the transportation audit be
assigned to GSA, it would complement our Government-wide
transportation mission. In our statutory role of traffic man-
ager for the civilian agencies, GSA provides a variety of
transportation management programs designed to accomplish
the most efficient and economical use of the various freight
and passenger modes.
GSA also maintains a master tariff library which is utilized
in serving Federal agencies requiring freight rate and pas-
senger fare determinations, as well as routing, freight clas-
sification, and related technical data.
The committee agrees that the basic responsibility should remain
centralized and should be vested in the General Services Administra-
tion. Accordingly, the committee amendment includes a change in
section 201 (a) to specify the General Services Administration as the
transferee agency, in lieu of providing for the Director of the Office
of Management and Budget to designate the transferee agency. Trans-
fer of the function to the General Services Administration, in com-
bination with the provisions for transfer of experienced personnel
from the General Accounting Office and for carriers to appeal adverse
4
Hearings, p. 42.
5 Hearings, p. 68.
6
decisions to the Comptroller General, assure that the audit operation
will be carried on with the same technical competence and impartiality
shown by the General Accounting Office.
2. During the hearings, there was agreement that flexibility was
needed to continue present arrangements for the performance of trans-
portation audits by other agencies in exceptional cases, such as the
audit of overseas transportation vouchers by Department of Defense
offices in Heidelberg and Tokyo. Accordingly, the committee amend-
ment includes authorization in section 201 (a) for the Administrator of
General Services to delegate his audit authority in exceptional cases
"pursuant to regulations prescribed by him." The latter language is
intended to assure carriers that audits will be conducted to the extent
practicable under a common set of procedures and forms.
3. To provide additional protection for transferred employees, the
committee amendment includes changes in section 202, first to require
consultation by the Director of the Office of Management and Budget
and by the Comptroller General with the Chairman of the U.S. Civil
Service Commission with regard to personnel to be transferred; and
second, to guarantee transferred employees that they would not be re-
duced in pay or classification for 1 year after their transfer, except
for cause, and thereafter they would have longevity and other em-
ployee benefits under 5 U.S.C. 5337 to the same extent as if they had
remained employees of the General Accounting Office. In addition,
section 203 is changed to allow a longer time (July 1, 1977, in place of
July 1, 1976) to make the transfer and to prohibit transfer of em-
ployees before July 1, 1975.
4. Section 203 is changed to permit the Comptroller General and the
Administrator of General Services to agree upon a date prior to
July 1, 1977 (but, for personnel, not before July 1, 1975) as the effec-
tive date for transfer of audit functions, and to require advance publi-
cation of the effective date in the Federal Register.
5. Other conforming changes are made in title II.
Employee Concerns
Approximately 400 employees would be transferred from the Gen-
eral Accounting Office to the General Services Administration to con-
tinue performing the transportation audit functions. A memorandum
submitted to the subcommittee by the Black Caucus in the General
Accounting Office expressed concern that job security and opportuni-
ties for advancement of transferred employees could be adversely
affected. If the transfer were to be effected, the memorandum urged
that there be careful advance planning in consideration of employee
interests.⁶
Recognizing these employee concerns and desiring to assure job
protection and opportunities for advancement, your committee has
written specific provisions into the bill to allow ample time for ad-
vance planning and to protect employee rights and privileges. Up to
3 years are allowed for the transition. No personnel may be trans-
ferred before July 1, 1975. Employees who are transferred to the Gen-
6 Hearings, p. 55.
7
eral Services Administration will continue to have employment and
other rights equivalent to those afforded in the General Accounting
Office. During the hearings, the subcommittee received assurances from
the General Accounting Office, the General Services Administration,
and the Office of Management and Budget that careful consideration
would be given to the protection of employee rights and privileges.⁷
TITLE III-AUDIT OF NONAPPROPRIATED FUND ACTIVITIES
Summary
Title III of the bill makes nonappropriated fund activities, such as
the military exchanges, subject to audit by the Comptroller General
and gives him authority to inspect records and property and obtain
copies of annual reports.
Need
Nonappropriated fund activities of the executive agencies such as
the military exchanges are "big business" involving substantial ex-
penditures. From time to time, problems have arisen in the adminis-
tration of these activities, and the Congress has called upon the Gen-
eral Accounting Office to conduct audits. Numerous reports on such
audits have been presented by the Comptroller General to the House
Committee on Appropriations and the House Committee on Banking
and Currency.8
Though financed by nonappropriated funds, activities such as mili-
tary exchanges are considered Government instrumentalities partak-
ing of its sovereign immunities, and subjecting the Government to
liability under the Federal Tort Claims Act.¹⁰ Accordingly, the Con-
gress and the executive branch should have the same assurance that
their affairs are being properly conducted and supervised as is pro-
vided for other Government activities by audits of the General Ac-
counting Office.
As the Comptroller General made clear in his testimony,11 GAO
audits will not be a substitute for the regular internal and outside
audits obtained by the agencies, but will be conducted on a selected
basis to test the accuracy of agency audit procedures and controls, and
to investigate specific problems.
Agency Views
Representatives of the Office of Management and Budget, the Gen-
eral Services Administration, and the Department of Defense inter-
posed no basic objection to giving GAO review authority over
nonappropriated fund activities but raised a number of questions with
respect to specific provisions. In all major respects, these have been
accommodated by the committee amendment.
7 Hearings, pp. 52, 75, and 107.
8 Hearings, p. 33.
B Standard Oil Co. V. Johnson, 316 U.S. 481, 1942.
10 See Fourneer V. U.S., 220 F. Supp. 752 (S.E. Miss., 1963).
11 Hearings, p. 34.
8
Committee Revisions
1. The Office of Management and Budget representative, Charles F.
Bingman, Deputy Associate Director, questioned the scope of "non-
appropriated funds and related activities," as used in the original sub-
section 301 (a). The Comptroller General made it clear that there was
no intent under this provision to cover such nonappropriated activi-
ties as the Smithsonian Institution or Federal credit unions. Accord-
ingly, he offered an amendment, which the committee adopted with
slight modification, to limit nonappropriated fund activities to those
"authorized or operated by an executive agency to sell merchandise or
services to military or other government personnel and their depend-
ents." As SO amended, subsection 301 (a) is acceptable to the Office of
Management and Budget.
2. A question having arisen as to whether the original subsection
301 (a) provision for access to records by the Comptroller General
would extend to the records of contractors doing business with non-
appropriated fund activities,12 the committee amendment includes a
clarifying change to limit access to the records "of funds and activities
within this subsection." Thus the Comptroller General, under this pro-
vision, will not have direct access to the records of contractors supply-
ing goods and services to nonappropriated fund activities.
3. Administration witnesses objected to the original form of subsec-
tion 301 (b) on the ground that it would require agencies to change the
format of the annual reports of nonappropriated fund activities and
to furnish such reports in all cases without regard to the size of the ac-
tivity. They regarded this as an unwarranted paperwork burden.
In response, the committee amendment includes a revision of sub-
section 301 (b) reading as following:
(b) When required by the Comptroller General for such
nonappropriated fund and related activities with gross re-
ceipts from sales or more than $100,000 a year as he may des-
ignate by class, or upon specific request of the Comptroller
General in any other case, each executive agency shall furnish
promptly a copy of the annual report of any nonappropriated
fund or related activity referred to in subsection (a). If such
information is not included in any activity's annual report,
such agency shall also furnish a statement showing the yearly
financial operations, financial condition, and cash flow, and
such other annual information relating to the activity as may
be agreed upon by the Comptroller General and the head of
the executive agency concerned.
Under this subsection as revised, the Comptroller General may ob-
tain copies of annual reports without change in format, but supple-
mented by annual financial information that in any case should be
contained in annual reports. Such reports are to be obtained regularly
only from major activities with sales of more than $100,000 a year.
For smaller activities, the Comptroller General may obtain the annual
report only upon specific request. These limitations should accommo-
date the major concerns of the agencies.
12 Hearings, p. 82.
9
TITLE IV-EMPLOYMENT OF EXPERTS AND CONSULTANTS
Summary
Title IV has two purposes. First, it provides continuing authority
for the Comptroller General to employ experts and consultants as au-
thorized by 5 U.S.C. 3109. That statute provides authorization and
procedures for the hiring of experts and consultants by all Government
agencies, but under its own terms it becomes operative only "when au-
thorized by an appropriation or other statute.' Title IV would provide
such "other statute" on a permanent basis and make it unnecessary for
the Comptroller General repetitively to seek and be granted such au-
thority in annual appropriation acts.
Second, title IV grants special authority for the Comptroller Gen-
eral to employ 10 experts and consultants, for periods not in excess of
3 years, at rates up to executive level V ($36,000 a year).
Need
1. Continuing authorization or employment of experts and consult-
ants has become a standard and practically "boilerplate" provision of
recent statutes establishing new agencies. Such continuing authoriza-
tion should be extended equally to the General Accounting Office. Re-
petitive authorization has been a regular part of the GAO annual
appropriations for years. See, for example, Legislative Branch Appro-
priation Act, 1974 (Public Law 93-145) and Legislative Branch
Appropriation Act, 1969 (Public Law 90-417). Permanent authoriza-
tion would eliminate what appears to be "pro forma" legislation re-
turned each year. The Commission on Government Procurement iden-
tified some 90 Appropriation Act provisions authorizing employment
of experts and consultants as one of the groups of statutes which could
be "condensed, simplified, and harmonized. 13
2. In support of the authorization to employ 10 experts and con-
sultants at executive level V rates, the Comptroller General testified
that GAO is unique among Federal agencies in that it is called on
to perform tasks covering nearly the entire range of skills needed
by the Federal Government, even though they are often required for
only the relatively short period it may take to complete a particular
program review. He went on to conclude: 14
The present restrictions on the acquisition of experts and
consultants thus present very real obstacles for the GAO in
its quest for the best available talent to serve the needs of
Congress and discharge its increasingly more diverse and
complex responsibilities. It is for this reason that provision
of the proposed legislation is needed.
Your committee recognizes that the Comptroller General, in re-
sponding to congressional requests for studies, investigations, and
reports on numerous complex subjects, has a special need for experts
and consultants, and therefore provides the requested authorization.
13 Report of the Commission on Government Procurement (Dec. 31, 1972), vol. 4, pp. 179
and 184.
14 Hearings, p. 34.
10
In allowing compensation for up to 10 experts and consultants at level
v, we follow the precedent in the Congressional Budget and Im-
poundment Control Act of 1974, Public Law 93-344, section 702. This
departs from the usual practice in the executive branch of compen-
sating experts and consultants at a rate equivalent to GS-18. At pres-
ent, and for some time, GS-18 and executive level V compensation
has been the same ($36,000 per annum), but executive level V com-
pensation will be higher if pay schedules are adjusted. Your com-
mittee believes that the executive level V is in keeping with the prece-
dent of Public Law 93-344 and is justified in this instance.
Agency Views
Title IV as amended is supported by the Comptroller General. The
Office of Management and Budget questioned the General Account-
ing Office's need to pay executive level V compensation to 10 experts
and consultants and to exempt them from the dual compensation and
other restrictions. 15 However, as the OMB representative recognized,
there are instances where employment of experts and consultants at
executive level rates has been found necessary and authorized for the
Executive Office of the President.
On balance, the committee agrees with the Comptroller General that
his office also has. a serious problem in obtaining experts and con-
sultants of the caliber needed for the important programs serving the
needs of Congress, and this problem should be alleviated to the limited
extent provided by title IV as amended.
Committee Revision
The committee amendment revises section 401 to limit executive
level V pay to 10 experts and consultants, restrict their employment
to 3 years, and eliminate an exemption from dual compensation and
other statutes affecting employment of personnel.
TITLE V-GENERAL ACCOUNTING OFFICE BUILDING
Summary
Title V as amended transfers custody and control of the General
Accounting Office Building from the General Services Administra-
tion to the Comptroller General. Other agencies occupy approximately
one-half of the building and therefore title V authorizes the Comp-
troller General to enter into agreements with such other agencies for
occupancy of the building at mutually agreeable rates, with the pro-
ceeds to be credited to appropriations for operation, repair, authoriza-
tion and maintenance of the building.
Need
The Comptroller General justifies title V as follows 16
Insofar as the headquarters office is concerned, this would
put GAO in a position generally comparable to the Govern-
ment Printing Office, the Library of Congress, and the
Architect of the Capitol.
*
*
*
*
*
15 Hearings, p. 105.
16 Hearings, p. 35.
11
The GAO is now the only agency of the legislative branch
whose headquarters space is under the jurisdiction of the
GSA. We believe that managing our own building would be
consistent with the pattern established for other parts of the
legislative branch. Moreover, we believe that we should be
completely free of any concern that GAO audit results are
affected in any manner by differences of opinion which we
may have from time to time as to providing our space needs
and the audit of GSA space activities generally.
For example, the implementation of the new Federal build-
ing fund in fiscal year 1975 is already proving to be quite
controversial because of the increased charges which are being
placed upon agencies, including the GAO.
We believe that our status as an arm of the legislative
branch with responsibility for giving the Congress our objec-
tive views with respect to programs of the executive branch
would be enhanced if we had responsibility for meeting our
own space requirements.
The General Accounting Office estimates savings in its own budget
of approximately $2 million a year, reflecting the difference between
the $5.70 a foot it cost in the past and the $6.63 a foot which is the new
standard level user charge fixed by the General Services Administra-
tion as the rate equivalent to the "approximate commercial charges"
prescribed by Public Law 92-313.
Although your committee endorses the concept of central manage-
ment of Federal office space by the General Services Administration,
it believes that a valid exception can be made for the headquarters
building of the General Accounting Office, which is within the legisla-
tive branch of the Government.
Agency Views
The General Services Administration, with the support of the Office
of Management and Budget, opposes title V.¹⁷ In the view of the
General Services Administration, assignment of custody and control
over the GAO building to the General Accounting Office, when half
the space is occupied by executive agencies, would be contrary to the
purpose of Public Law 92-313 in prescribing standard level user
charges and establishing the public building fund.
Committee Revision
Whereas your committee believes, as noted above, that a valid ex-
ception can be made for the headquarters building of the General
Accounting Office, we do not believe that this exception should extend
to space outside the headquarters building, including field offices. Ac-
cordingly, the committee amendment includes deletion of a sentence
in section 501 which would have authorized the Comptroller General
to lease additional space in or outside of the District of Columbia.
17 Hearings, p. 69.
12
TITLE VI-AUDIT OF GOVERNMENT CORPORATIONS
TITLE VII-REVISION OF ANNUAL AUDIT REQUIREMENTS
Both titles VI and VII have as their purpose relaxation of the
present requirements for annual audits of certain Government cor-
porations and agencies and substitution of a requirement for audit
at least once every 3 years. The Government agencies and activities
affected are those governed by the Government Corporation Control
Act (31 U.S.C. 850, 851, 857, 858), the Federal Deposit Insurance Act
(12 U.S.C. 1827 (b), (c) the Federal Crop Insurance Act (7 U.S.C.
1513), the Housing and Urban Development Act of 1968 (12 U.S.C.
1701y (g) the District of Columbia Redevelopment Act of 1945 (60
Stat. 801), the Federal Aviation Act of 1958 (49 U.S.C. 1537 (f)
the Housing Act of 1950 (12 U.S.C. 1749a (a) (2) the Federal Credit
Union Act (12 U.S.C. 1789 (b) (2) the General Supply Fund of the
General Services Administration (40 U.S.C. 756 (e)), the Bureau of
Engraving and Printing Fund (31 U.S.C. 181d), the Veterans Can-
teen Service (38 U.S.C. 4207), the Higher Education Insured Loan
Program (20 U.S.C. 1082 (b) (2)), and the Government Printing
Office (44 U.S.C. 309 (c))
The Comptroller General considers an audit once every 3 years gen-
erally adequate to fulfill the purpose of congressional oversight of
these agencies and activities. 18 The reduction will allow him to make
more effective use of his resources to handle his total work load. He
emphasizes that these provisions give him discretion to make audits
more frequently where he finds it necessary and in this regard he would
consider the special interests of Congress.
The committee agrees that less frequent routine audit demands on
the GAO would bring increased support for Congress and more effi-
cient operations within the General Accounting Office.
Agency Views
The agencies generally concur in titles VI and VII. A question
raised by the Farm Credit Administration has been accommodated by
a committee revision.
Committee Revision
The committee amendment includes a number of technical changes
and a revision of section 601 (c) to make clear that General Accounting
Office audits of mixed ownership corporations are required only as
long as Government funds remain invested in them.
TITLE VII-LIMITATION OF TIME ON CLAIMS AND DEMANDS
Title VIII was added by the committee amendment on the recom-
mendation of the Comptroller General. It reduces the statute of lim-
itations for the filing of claims in the General Accounting Office from
10 years to 6 years. This would make the General Accounting Office
statute of limitations consistent with that provided for the filing of
18 Hearings, pp. 16 and 17.
13
suits in the Court of Claims and the U.S. district courts (28 U.S.C.
2501, 2401).
As the Comptroller General testified,19 the change will affect only
about 40 claims a year, but will save about $300,000 a year in record
storage costs. In the judgment of the committee, 6 years affords suffi-
cient time for claimants to act, and extended protection afforded by a
10-year statute of limitations, for about 40 claims a year, does not
warrant retention of records at a cost of $300,000 a year, particularly
when the claimant would not be entitled to sue in court if his claim
is rejected by the General Accounting Office.
The change will not take effect for 1 year after enactment of the
bill. This provides a 1-year period of grace for the filing of claims
after claimants are put on notice that they will be barred by a 6-year
statute of limitations if they do not act promptly.
Other agencies are not directly affected by title VIII. The commit-
tee solicited views from the responsible committees of the American
Bar Association and the Federal Bar Association. There was not suffi-
cient time to obtain the official views of the associations. However, a
number of members expressed individual views supporting or inter-
posing no objection to title VIII but recommending a 1-year grace
period rather than a 6-month grace period as originally proposed by
the Comptroller General. The committee amendment accommodates
this recommendation.
ESTIMATED COSTS AND SAVINGS
No significant costs are associated with this legislation. Net savings
can be expected to accrue in the first year of enactment, and similar
amounts will be saved in each of the five succeeding years, according
to information received from the General Accounting Office.
Substantial savings, probably in excess of $1 million annually, will
result from full implementation of the revised statistical sampling
procedures authorized in title I and the reduced period for filing claims
in GAO provided by title VIII. Relatively small additional amounts
will be saved annually from workload reductions resulting from im-
plementation of titles VI and VII relating to the audit of certain
Government corporations and revolving funds.
There will be small additional costs incurred for salaries and fees
of the 10 experts and consultants authorized to be employed by title
IV. The other titles will be relatively neutral in their cost impact.
Your committee concurs in the estimates provided by the General
Accounting Office.
SECTION-BY-SECTION ANALYSIS
TITLE I-STATISTICAL SAMPLING PROCEDURES IN THE EXAMINATION OF
VOUCHERS
The act of August 30, 1964 (31 U.S.C. 82b-1 (a) authorizes sta-
tistical sampling by agencies of disbursement vouchers under $100.
Section 101 of the bill deletes the $100 limit. Instead, it authorizes
19 Hearings, p. 38.
H. Rept. 1300 0 74 2
14
the Comptroller General to prescribe the limit from time to time. It
also requires the Comptroller General to evaluate the adequacy and
effectiveness of agency statistical sampling procedures. The new limit
would not be mandatory but would allow agencies discretion to use sta-
tistical sampling procedures only to the extent they find it economical
and effective.
TITLE II-AUDIT OF TRANSPORTATION PAYMENTS
Title II includes a number of changes to provide for transfer of
the general responsibility for the initial auditing of transportation
payments from the General Accounting Office to the General Serv-
ices Administration. The General Accounting Office will continue to
have final audit responsibility and related functions as provided by
the Budget and Accounting Act of 1921 (31 U.S.C. 41) and the Ac-
counting and Auditing Act of 1950 (31 U.S.C.65).
Paragraph 1 of section 201 of the bill amends subsection 322 (a)
of the Transportation Act of 1940 (49 U.S.C. 66) to transfer the pre-
liminary transportation audit responsibilities from the General Ac-
counting Office to the General Services Administration. It provides
specifically for retention of the authority of the GAO to make audits
under the Budget and Accounting Act of 1921 (31 U.S.C. 41) and
the Accounting and Auditing Act of 1950 (31 U.S.C. 65). The para-
graph also provides for the designation by the General Services Ad-
ministration of other agencies to conduct such audits for transporta-
tion outside the continental United States or in other exceptional
cases. This provides flexibility for the continuance by the General
Services Administration of present arrangements which the GAO has
found necessary for the auditing of the overseas transportation pay-
ments by overseas offices and in other exceptional cases. Audits under
such delegated authority must be conducted pursuant to regulations
prescribed by the General Services Administrator. The purpose is to
assure that carriers will be confronted SO far as practical by a common
set of audit procedures and forms.
Paragraph 2 of section 201 of the bill makes conforming changes.
Paragraph 3 of the bill reletters existing subsections of section 322
of the Transportation Act of 1940 and adds a new subsection (b)
which authorizes carriers to request the General Accounting Office to
review any audit action taken by the General Services Administra-
tion or a designated agency. Such request must be filed either within
the 3-year period now provided by section 322 for the filing of the
transportation audit claims in the General Accounting Office, or within
6 months after the General Services Administration or other desig-
nated agency takes action on the claim, whichever is later. In effect,
carriers will not have to file their claims directly with the General
Accounting Office if they file them with the General Services Admin-
istration or another designated agency and thereafter take an appeal
to the General Accounting Office within 6 months after agency action
is completed.
Subsection 202 (a) provides for the transfer of records, property,
personnel, appropriations, and other funds incident to the transfer of
the transportation audit function. Determinations with respect thereto
15
are to be made jointly by the Director of the Office of Management and
Budget and the Comptroller General after consultation with the Ad-
ministrator of General Services and, in the case of personnel, with the
Chairman of the U.S. Civil Service Commission. The latter require-
ment is intended to assure appropriate advice from the Civil Service
Commission to safeguard the interests of transferred personnel.
Subsection 202 (b) guarantees transferred personnel against any loss
in pay or classification for 1 year after transfer, except for cause.
Thereafter, they are given the protection of section 5 U.S.C. 5337 to
the same extent as if they had remained employees of the General Ac-
counting Office. 5 U.S.C. 5337 provides for continuance of basic pay
for 2 years after an employee is reduced in grade provided he has
served in the same agency at the higher grade for 2 years. Thus the
2-year qualification for continuance of basic pay in the event of a reduc-
tion in grade will not be interrupted by the transfer from General Ac-
counting Office to the General Services Administration.
Section 203 of the bill provides for the transfer of the transporta-
tion audit function to be effective as of a date agreed upon between the
Comptroller General and the Administrator of General Services, but
not later than July 1, 1977. This allows 3 years to plan and prepare for
the transfer. In any case, personnel may not be transferred for 1 year.
Notice of the effective date is to be published 30 days in advance in the
Federal Register.
TITLE III-AUDIT OF NONAPPROPRIATED FUND ACTIVITIES
Subsection 301 (a) makes the operations and funds (including cen-
tral funds) of nonappropriated fund activities subject to review by the
Comptroller General and gives him access to their records and prop-
erty. As amended, the subsection describes nonappropriated fund ac-
tivities as those authorized or operated by an agency to sell merchan-
dise or services to military or other Government personnel and their
dependents. By way of example, the subsection enumerates the Army
and Air Force Exchange Service, Navy exchanges, Marine Corps ex-
changes, Coast Guard exchanges, exchange councils of the National
Aeronautics and Space Administration, commissaries, clubs, and the-
aters. This makes it clear that only selling activities are subject to
General Accounting Office audit under this bill, and agencies such as
the Smithsonian Institution and Federal credit unions are excluded.
Also, as amended, the provision for General Accounting Office access
to records makes clear that it pertains only to records held by nonap-
propriated fund activities and does not extend to records of contrac-
tors doing business with such activities unless they are filed with a
nonappropriated fund activity and thereby become part of its records.
Subsection 301 (b), as amended, authorizes the Comptroller Gen-
eral to require copies of the annual report of any nonappropriated
fund activity he designates. The designation may be made by class in
the case of activities having gross receipts from sales of over $100,000
a year. In other cases, the designation must be made by specific re-
quest. If the annual report does not contain inform ation showing yearly
financial operations, financial condition and cash flow, a statement of
such information must be furnished to the Comptroller General to-
16
gether with any other information that may be agreed upon between
the Comptroller General and the head of the agency concerned. In ef-
fect, there will be no new paperwork for the agency apart from fur-
nishing copies of the annual reports of nonappropriated fund activi-
ties without change in format or content if they include such basic
financial data as the agencies need to have for their own informed man-
agement of nonappropriated fund activities.
TITLE IV-EMPLOYMENT OF EXPERTS AND CONSULTANTS
Section 401 first authorizes the Comptroller General to employ ex-
perts and consultants as authorized by 5 U.S.C. 3109 at daily rates pre-
scribed for GS-18 civil service employees. 5 U.S.C. 3109 now provides
for the employment of experts and consultants "when authorized by an
appropriation or other statute." Section 401 constitutes such "other
statute" and makes it unnecessary for the Comptroller General to seek
such authorization repetitively every year in appropriation acts.
Section 401 also gives the Comptroller General special authority to
hire 10 experts and consultants for periods not exceeding 3
years at executive level V compensation. Specific provision for a
term of 3 years is necessary to overcome the limitation by 5 U.S.C.
3109 to periods not exceeding one year. Currently there is no difference
between executive level V and compensation ($36,000 a year) and
GS-18 compensation ($36,000 a year), but the distinction may become
significant in the future.
TITLE V-GENERAL ACCOUNTING OFFICE BUILDING
Section 501 of the bill transfers responsibility for the custody
and control of the General Accounting Office building from the Ad-
ministrator of General Services to the Comptroller General and au-
thorizes the Comptroller General to enter into agreements with execu-
tive agencies for the occupancy of available space in the General Ac-
counting Office building at rates to be agreed upon. The proceeds of
such rates will be deposited in appropriations used for the operation,
maintenance, repair, and alteration of space occupied by the agencies.
TITLE VI-AUDITS OF GOVERNMENT CORPORATIONS
This title contains a series of amendments to current statutes for
the purpose of changing the requirement for the audit of Government
corporations from once every year to once every 3 years.
Subsection 601 (1) amends section 105 of the Government Corpora-
tion Control Act (31 U.S.C. 850) as of July 1, 1974, to require an audit
of each wholly owned Government corporation at least once every 3
years.
Subsection 601 (2) amends section 106 of such act (31 U.S.C. 851) to
delete a requirement for a report to Congress of an annual audit of
wholly owned Government corporations and to substitute a require-
ment for submission of an audit report within 61/2 months after the
last year covered by a General Accounting Office audit.
17
Subsections 601 (3) and (4) amend sections 202 and 203 of the
Government Corporation Control Act (31 U.S.C. 857, 858) to pro-
vide the same treatment for mixed ownership Government corpora-
tions as that provided for wholly owned Government corporations
under subsections (1) and (2) of section 601.
Section 602 amends subsections 17 (b) and 17 (c) of the Federal
Deposit Insurance Act (12 U.S.C. 1827 (b), (c)), to provide the same
treatment for the Federal Deposit Insurance Corporation.
Section 603 amends section 513 of the Federal Crop Insurance Act
(7 U.S.C. 1513) to delete the requirement for an annual audit of the
Federal Crop Insurance Corporation by the General Accounting
Office. That corporation would then be subject to the requirement of
an audit at least once every 3 years under the Government Corporation
Control Act as amended.
Section 604 amends subsection 107 (g) of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701y (g)) to provide for audit
once every 3 years of the National Home Ownership Foundation.
Section 605 of the bill amends section 17 of the District of Columbia
Redevelopment Act of 1945 (60 Stat. 801) by deleting the word "an-
nual" from the requirement for General Accounting Office audit of
the National Capitol Housing Authority. In effect, the frequency of
audit would be determined by the Comptroller General.
TITLE VII-REVISION OF ANNUAL AUDIT REQUIREMENTS
Title VII eliminates requirements for annual audits of certain re-
volving funds of Government agencies and makes them subject to audit
at the discretion of the Comptroller General in accordance with the
Accounting and Auditing Act of 1950 (31 U.S.C. 65).
Section 701, as technically amended, effects such change for the gen-
eral supply fund of the General Services Administration by amending
section 109 (e) of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 756 (e))
Section 702 effects such change for the war risk insurance fund of
the Department of Transportation by amending section 1307 (f) of
the Federal Aviation Act of 1958 (49 U.S.C. 1537 (f)
Section 703 effects such change for the Bureau of Engraving and
Printing fund of the Department of the Treasury by amending a
statute codified at 31 U.S.C. 181d.
Section 704 effects such change for the Veterans Canteen fund of
the Veterans Administration by amending 38 U.S.C. 4207.
Section 705 effects such change for the student loan insurance fund
of the Department of Health, Education, and Welfare by amending
section 432 (b) (2) of the Higher Education Act of 1965 (20 U.S.C.
1082 (b) (2)
Section 706 effects such change for the urban renewal fund and
the college housing fund of the Department of Housing and Urban
Development by amending section 402 (a) (2) of the Housing Act of
1950 (12 U.S.C. 1749a (a) (2) This change will affect programs for
housing for elderly or handicapped (12 U.S.C. 1701q) ; rehabilitation
loans (42 U.S.C. 1452b) ; public facility loans (42 U.S.C. 1494) ; new
18
community assistance (42 U.S.C. 3912) ; low rent housing (42 U.S.C.
1417a) ; riot insurance (12 U.S.C. 1749bbb-17) ; and transportation
grants (49 U.S.C. 1609).
Section 707 effects such change for the National Credit Union Ad-
ministration fund by amending section 209 (b) (2) of the Federal
Credit Union Act (12 U.S.C. 1789 (b) (2)
Sections 708 effects such change for the Government Printing Office
fund by amending 44 U.S.C. 309 (c).
TITLE VILI-LIMITATION OF TIME ON CLAIMS AND DEMAND
Section 801 amends section 1 of the act of October 9, 1940 (31 U.S.C.
237) to reduce the period of time allowed for the filing of claims in the
General Accounting Office from "ten full years" to "six years." The
change is to be effective 1 year after enactment of the bill. Thereafter
claimants will have only 6 years for the filing of claims in the General
Accounting Office before they are barred. The 6 years SO provided is
the same as that allowed for the filing of suits against the United
States in the Court of Claims under 28 U.S.C. 2501 and in the U.S.
district courts under 28 U.S.C. 2401. Postponent of the effective date
for 1 year is provided to assure that claimants will have adequate
notice and time for the filing of their claims before they are barred
by the curtailed statute of limitations.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3 of rule XIII of the Rules of the House
of Representatives, changes in existing law made by the bill, as re-
ported, are shown as follows (existing law proposed to be omitted is
enclosed in black brackets, new matter is printed in italic, existing law
in which no change is proposed is shown in roman) :
AcT OF AUGUST 30, 1964
AN ACT To permit the use of statistical sampling procedures in the examination
of vouchers
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, (a) [That, when-
ever
Whenever the head of any department or agency of the Govern-
ment or the [Commissioners] Commissioner of the District of Colum-
bia determines that economies will result therefrom, such agency head
or the [Commissioners] Commissioner may prescribe the use of ade-
quate and effective statistical sampling procedures in the examination
of disbursement vouchers [for amounts of less than $100] not exceed-
ing such amounts as may from time to time be prescribed by the
Comptroller General of the United States; and no certifying or dis-
bursing officer acting in good faith and in conformity with such pro-
cedures shall be held liable with respect to any certification or pay-
ment made by him on a voucher which was not subject to specific
examination because of the prescribed statistical sampling procedure,
[provided that] so long as such officer and his department or agency
have diligently pursued collection action to recover the illegal, im-
19
proper, or incorrect payment in accordance with procedures prescribed
by the Comptroller General. The Comptroller General shall include
in his reviews of accounting systems an evaluation of the adequacy and
effectiveness of procedures established under the authority of this Act.
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SECTION 322 OF THE TRANSPORTATION Act OF 1940
DEDUCTION OF OVERPAYMENTS
SEC. 322. (a) [Subject to such standards as shall be promulgated
jointly by the Secretary of the Treasury and the Comptroller General
of the United States, payment for transportation of persons or prop-
erty for or on behalf of the United States by any carrier or forwarder
shall be made upon presentation of bills therefor, prior to audit or
settlement by the General Accounting Office, but the right is reserved
to the United States Government to deduct the amount of any over-
charge by any carrier or forwarder from any amount subsequently
found to be due such carrier or forwarder.] Payment for transporta-
tion of persons or property for or on behalf of the United States by
any carrier or forwarder shall be made upon presentation of bills
therefor prior to audit by the General Services Administration, or by
any other executive agency designated by the Administrator of Gen-
eral Services to conduct such audit (pursuant to regulations pre-
scribed by him) in cases involving transportation outside the conti-
nental United States or in other exceptional cases. The right is re-
served to the United States Government to deduct the amount of any
overcharge by any carrier or forwarder from any amount subsequently
found to be due such carrier or forwarder. The provisions of this sub-
section shall not affect the authority of the General Accounting Office
to make audits in accordance with the Budget and Accounting Act,
1921 (31 U.S.C. 41), and the Accounting and Auditing Act of 1950
(31 U.S.C. 65). The term "overcharges" shall be deemed to mean
charges for transportation services in excess of those applicable
thereto under tariffs lawfully on file with the Interstate Commerce
Commission, the Civil Aeronautics Board, the Federal Maritime Com-
mission, and any State transportation regulatory agency, and charges
in excess of those applicable thereto under rates, fares, and charges
established pursuant to section 22 of the Interstate Commerce Act, as
amended, or other equivalent contract, arrangement, or exemption
from regulation: Provided, however, That such deductions shall be
made within three years (not including any time of war) from the
time of payment of bills: Provided further, That every claim [cog-
nizable by the General Accounting Office] for charges for transporta-
tion within the purview of this section shall be forever barred unless
such claim shall be received in the General [Accounting Office] Serv-
ices Administration or an executive agency designated by the Admin-
istrator of General Services within three years (not including any
time of war) from the date of (1) accrual of the cause of action
thereon, or (2) payment of charges for the transportation involved,
20
or (3) subsequent refund for overpayment of such charges, or (4)
deduction made pursuant to this section, whichever is later.
(b) Nothing in subsection (a) hereof shall be deemed to prevent any
carrier or forwarder from requesting the Comptroller General to
review the action on his claim by the General Services Administration
or an executive agency designated by the Administrator of General
Services. Such request shall be forever barred unless received in the
General Accounting Office within six months (not including any time
of war) from the date the action was taken or within the periods of
limitation specified in the second proviso in subsection (a) of this
section, whichever is later.
[(b)] (c) Pursuant to regulations prescribed by the head of a Gov-
ernment agency or his designee and in conformity with such standards
as shall be promulgated jointly by the Secretary of the Treasury and
the Comptroller General of the United States, bills for passenger
or freight transportation services to be furnished the United States
by any carrier or forwarder may be paid in advance of completion of
the services, without regard to section 3648 of the Revised Statutes,
as amended (31 U.S.C. 529) : Provided, That such carrier or forwarder
has issued the usual ticket, receipt, bill of lading, or equivalent docu-
ment covering the service involved, subject to later recovery by deduc-
tion or otherwise of any payments made for any services not received
as ordered by the United States.
[(c)] (d) The term "head of a Government agency" means any in-
dividual or group of individuals having final decisionmaking responsi-
bility for any department, commission, board, service, Government
corporation, instrumentality, or other establishment or body in the
United States Government.
GOVERNMENT CORPORATION CONTROL ACT
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TITLE I-WHOLLY OWNED GOVERNMENT
CORPORATIONS
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SEC. 105. The financial transactions of wholly owned Government
corporations shall be audited by the General Accounting Office in
accordance with the principles and procedures applicable to com-
mercial corporate transactions and under such rules and regulations
as may be prescribed by the Comptroller General of the United States:
Provided, That such rules and regulations may provide for the reten-
tion at the offices of such corporations, in whole or in part, of any
accounts of accountable officers, covering corporate financial transac-
tions, which are required by existing law to be settled and adjusted in
the General Accounting Office, and for the settlement and adjust-
ment of such accounts in whole or in part upon the basis of examina-
tions in the course of the audit herein provided, but nothing in this
proviso shall be construed as affecting the powers reserved to the
Tennessee Valley Authority in the Act of November 21, 1941 (55
21
Stat. 775). The audit shall be conducted at the place or places where
the accounts of the respective corporations are normally kept. The
representatives of the General Accounting Office shall have access to
all books, accounts, financial records, reports, files, and all other papers,
things, or property belonging to or in use by the respective corpora-
tions and necessary to facilitate the audit, and they shall be afforded
full facilities for verifying transactions with the balances or securi-
ties held by depositaries, fiscal agents, and custodians. The audit shall
begin with the first fiscal year commencing after the enactment of
this Act. The audit of the Federal Savings and Loan Insurance Cor-
poration shall be conducted on a calendar year basis. Effective July 1,
1974, each wholly owned Government corporation shall be audited at
least once every three years.
SEC. 106. [A report of each such audit for a fiscal year shall be made
by the Comptroller General to the Congress not later than January 15
following the close of such fiscal year (and a report of each such audit
for a calendar year shall be made by the Comptroller General to the
Congress not later than July 15 following the close of such calendar
year) A report of each audit conducted under section 105 shall be
made by the Comptroller General to the Congress not later than six
and one-half months following the close of the last year covered by
such audit. The report shall set forth the scope of the audit and shall
include a statement (showing intercorporate relations) of assets and
liabilities, capital and surplus or deficit; a statement of surplus or
deficit analysis; a statement of income and expenses; a statement of
sources and application of funds; and such comments and information
as may be deemed necessary to keep Congress informed of the opera-
tions and financial condition of the several corporations, together with
such recommendations with respect thereto as the Comptroller Gen-
eral may deem advisable, including a report of any impairment of
capital noted in the audit and recommendations for the return of such
Government capital or the payment of such dividends as, in his judg-
ment, should be accomplished. The report shall also show specifically
any program, expenditure, or other financial transaction or under-
taking observed in the course of the audit, which, in the opinion of the
Comptroller General, has been carried on or made without authority
of law. A copy of each report shall be furnished to the President, to
the Secretary of the Treasury, and to the corporation concerned at the
time submitted to the Congress.
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TITLE I-MIXED-OWNERSHIP GOVERNMENT
CORPORATIONS
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SEC. 202. The financial transactions of mixed-ownership Govern-
ment corporations for any period during which Government capital
has been invested therein shall be audited by the General Accounting
Office in accordance with the principles and procedures applicable to
commercial corporate transactions and under such rules and regula-
tions as may be prescribed by the Comptroller General of the United
States. The audit shall be conducted at the place or places where the
22
accounts of the respective corporations are normally kept. The rep-
resentatives of the General Accounting Office shall have access to all
books, accounts, financial records, reports, files, and other papers,
things, or property belonging to or in use by the respective corpo-
rations and necessary to facilitate the audit, and they shall be afforded
full facilities for verifying transactions with the balances or securities
held by depositaries, fiscal agents, and custodians. The audit shall
begin with the first fiscal year commencing after the enactment of this
Act. The audit of the Federal home loan banks shall be conducted on a
calendar year basis. ffective July 1, 1974, each mixed-ownership Gov-
ernment corporation shall be audited as provided herein at least once in
every three years.
SEC. 203. [A report of each such audit for a fiscal year shall be
made by the Comptroller General to the Congress not later than
January 15 following the close of such fiscal year (and a report of
each such audit for a calendar year shall be made by the Comptroller
General to the Congress not later than July 15 following the close of
such calendar year) A report of each audit conducted under section
202 shall be made by the Comptroller General to the Congress not
later than six and one-half months following the close of the last year
covered by such audit. The report shall set forth the scope of the
audit and shall include a statement (showing intercorporate relations)
of assets and liabilities, captal and surplus or deficit; a statement of
surplus or deficit analysis; a statement of income and expense; a
statement of sources and application of funds; and such comments and
information as may be deemed necessary to keep Congress informed
of the operations and financial condition of, and the use of Govern-
ment capital by, each such corporation, together with such recom-
mendations with respect thereto as the Comptroller General may
deem advisable, including a report of any impairment of capital or
lack of sufficient capital noted in the audit and recommendations for
the return of such Government capital or the payment of such divi-
dends as, in his judgment, should be accomplished. The report shall
also show specifically any program, expenditure, or other financial
transaction or undertaking observed in the course of the audit, which,
in the opinion of the Comptroller General, has been carried on or
made without authority of law. A copy of each report shall be fur-
nished to the President, to the Secretary of the Treasury, and to the
corporation concerned at the time submitted to the Congress.
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SECTION 17 OF THE FEDERAL DEPOSIT INSURANCE ACT
SEC. 17. (a) The Corporation shall annually make a report of its
operations to the Congress as soon as practicable after the 1st day
of January in each year.
(b) The financial transactions of the Corporation shall be audited
by the General Accounting Office in accordance with the principles
and procedures applicable to commercial corporate transactions and
under such rules and regulations as may be prescribed by the Comp-
troller General of the United States. The audit shall be conducted at
23
the place or places where accounts of the Corporation are normally
kept. The representatives of the General Accounting Office shall have
access to all books, accounts, records, reports, files, and all other papers,
things, or property belonging to or in use by the Corporation pertain-
ing to its financial transactions and necessary to facilitate the audit,
and they shall be afforded full facilities for verifying transactions
with the balances or securities held by depositaries, fiscal agents, and
custodians. All such books, accounts, records, reports, files, papers,
and property of the Corporation shall remain in possession and cus-
tody of the Corporation. The audit shall begin with financial transac-
tions occurring on and after August 31, 1948. The Corporation shall
be audited at least once in every three years.
(c)
[A report of the audit for each fiscal year ending on June 30
shall be made by the Comptroller General to the Congress not later
than January 15 following the close of such fiscal year. On or before
December 15 following such fiscal year the Comptroller General shall
furnish the Corporation a short form report showing the financial
position of the Corporation at the close of the fiscal year. A report
of each audit conducted under subsection (b) of this section shall be
made by the Comptroller General to the Congress not later than six
and one-half months following the close of the last year covered by
such audit. The report to the Congress shall set forth the scope of the
audit and shall include a statement of assets and liabilities and surplus
or deficit; a statement of surplus or deficit analysis; a statement of
income and expenses; a statement of sources and application of funds
and such comments and information as may be deemed necessary to
inform Congress of the financial operations and condition of the Cor-
poration, together with such recommendations with respect thereto
as the Comptroller General may deem advisable. The report shall also
show specifically any program, expenditure, or other financial trans-
action or undertaking observed in the course of the audit, which, in the
opinion of the Comptroller General, has been carried on or made with-
out authority of law. A copy of each report shall be furnished to the
President, to the Secretary of the Treasury, and to the Corporation at
the time submitted to the Congress.
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SECTION 513 OF THE FEDERAL CROP INSURANCE ACT
ACCOUNTING BY CORPORATION
SEC. 513. The Corporation shall at all times maintain complete
and accurate books of account and shall file annually with the Secre-
tary of Agricuture a complete report as to the business of the Cor-
poration. The financial transactions of the Corporation shall be
audited at least once each year by the General Accounting Office for
the sole purpose of making a report to Congress, together with such
recommendations as the Comptroller General of the United States
may deem advisable: Provided, That such report shall not be made
until the Corporation shall have had reasonable opportunity to
examine the exceptions and criticisms of the Comptroller General or
24
the General Accounting Office, to point out errors therein, explain
or answer the same, and to file a statement which shall be submitted
by the Comptroller General with his report.]
SECTION 107 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968
NATIONAL HOMEOWNERSHIP FOUNDATION
SEC. 107. (a)
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(g) (1) The financial transactions of the Foundation shall be
audited by the General Accounting Office in accordance with the prin-
ciples and procedures applicable to commercial corporate transactions
and under such rules and regulations as may be prescribed by the
Comptroller General of the United States. The representatives of the
General Accounting Office shall have access to all books, accounts, fi-
nancial records, reports, files, and all other papers, things, or property
belonging to or in use by the Foundation and necessary to facilitate the
audit, and they shall be afforded full facilities for verifying transac-
tions with the balances or securities held by depositories, fiscal agents,
and custodians. The audit shall cover the fiscal year corresponding to
that of the United States Government. Such audit shall be made at
least once every three years.
(2) A report of each such audit shall be made by the Comptroller
General to the Congress not later than [January 15] six and one-half
months following the close of the [fiscal year for which the audit was
made] last year covered by such audit. The report shall set forth
the scope of the audit and shall include a statement of assets and
liabilities, capital, and surplus or deficit; a statement of sources and
application of funds; and such comments and information as may be
deemed necessary to keep the Congress informed of the operations and
financial condition of the Foundation, together with such recom-
mendations with respect thereto as the Comptroller General may deem
advisable. The report shall also show specifically any program, ex-
penditure, or other financial transaction or undertaking, observed in
the course of the audit, which, in the opinion of the Comptroller Gen-
eral, has been carried on or made without authority of law. A copy of
each report shall be furnished to the President and to the Foundation
at the time submitted to the Congress.
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SECTION 17 OF THE DISTRICT OF COLUMBIA REDEVELOPMENT
ACT OF 1945
ACQUISITION UNDER DISTRICT OF COLUMBIA ALLEY DWELLING ACT
SEC. 17. From and after the termination of the period of one year,
beginning with the date of the approval of this Act, all authority
granted by the Act known as the District of Columbia Alley Dwelling
25
Act, approved June 12, 1934, as amended, to acquire, by purchase,
condemnation, or gift, lands, buildings and structures, or any interest
therein, is hereby transferred to and vested in the Agency created by
this Act. During said one-year period said authority may be exer-
cised by the National Capital Housing Authority only for projects
that shall have been approved by the Planning Commission and the
District Commissioners: Provided, however, That failure of the
Planning Commission or the District Commissioners to approve or
disapprove in writing within sixty days after the submission by the
National Capital Housing Authority shall be equivalent to a formal
approval. Nothing contained in said Alley Dwelling Act or in this
Act shall be interpreted as precluding the inclusion at any time of
any alley or inhabited alley or alley dwelling or dwelling or square
containing an inhabited alley in a project area to be planned, acquired,
and disposed of under the provisions of this Act. Any real property
acquired by the Agency under the authority of the Alley Dwelling
Act may be transferred or may be sold or leased by the Agency as
provided in this Act for real property acquired for a project area
redevelopment. The National Capital Housing Authority is hereby
declared to be a redevelopment company and is hereby granted the
power to purchase or lease redevopment areas or parts thereof from
the Agency in accordance with the provisions of this Act. The
National Capital Housing Authority shall keep regular books of
account in accordance with standard auditing practices, covering all
properties operated by it, showing detailed construction costs, manage-
ment costs, repairs, maintenance, other operating costs, rents, subsidies,
grants, allowances and exemptions; such books shall be subject to
[annual] audit by the General Accounting Office; and the annual
report of the National Capital Houing Authority shall include a sum-
mary of all transactions covered by such books and shall be made avail-
able to the public upon request.
SECTION 109 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE
SERVICES ACT OF 1949
GENERAL SUPPLY FUND
SEC. 109. (a) ***
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[(e) The Comptroller General of the United States shall make an
annual audit of the General Supply Fund as of June 30, and there
shall be covered into the United States Treasury as miscellaneous
receipts anv surplus found therein, all assets, liabilities, and prior
losses considered, above the amounts transferred or appropriated to
establish and maintain said fund, and the Comptroller General shall
report to the Congress annually the results of the audit, together with
such recommendations as he may have regarding the status and oper-
ations of the fund.]
(e) (1) As of June 30 of each year, there shall be covered into the
United States Treasury as miscellaneous receipts any surplus in the
General Supply Fund, all assets, liabilities, and prior losses considered,
26
above the amounts transferred or appropriated to establish and main-
tain said fund.
(2) The Comptroller General shall make audits of the General
Supply Fund in accordance with the provisions of the Accounting and
Auditing Act of 1950 and make reports on the results thereof.
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SECTION 1307 OF THE FEDERAL AVIATION ACT OF 1958
ADMINISTRATIVE POWERS OF SECRETARY
Regulatory and Settlement
SEC. 1307. (a)
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Budget Program and Accounts
(f) The Secretary, in the performance of, and with respect to, the
functions, powers, and duties vested in him by this title, shall prepare
annually and submit a budget program as provided for wholly owned
Government corporations by the Government Corporation Control
Act, as amended (59 Stat. 597; 31 U.S.C. 841). The Secretary shall
maintain [an integral set of accounts which shall be audited annually
by the General Accounting Office in accordance with principles and
procedures applicable to commercial transactions as provided by the
said Government Corporation Act: a. set of accounts which shall be
audited by the Comptroller General in accordance with the provisions
of the Accounting and Auditing Act of 1950: Provided, That, because
of the business activities authorized by this title, the Secretary may
exercise the powers conferred in said title, perform the duties and
functions, and make expenditures required in accordance with com-
mercial practice in the aviation insurance business, and the General
Accounting Office shall allow credit for such expenditures when shown
to be necessary because of the nature of such authorized activities.
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SECTION 6 OF THE ACT OF AUGUST 4, 1950
AN ACT To provide for financing the operations of the Bureau of Engraving
and Printing, Treasury Department, and for other purposes
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SEC. 6. The financial transactions, accounts, and reports of the fund
shall be audited on an annual basis by the [General Accounting Office
and a copy of each report on audit shall be furnished promptly to the
President, the Congress, and the Secretary.] Comptroller General in
accordance with the provisions of the Accounting and Auditing Act
of 1950.
27
SECTION 4207 OF TITLE 38, UNITED STATES CODE
CHAPTER 75-VETERANS' CANTEEN SERVICE
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§ 4207. Audit of Accounts
The Service shall maintain [an integral] a set of accounts which
shall be audited [annually by the General Accounting Office in accord-
ance with the principles and procedures applicable to commercial
transactions as provided by section 841-869 of title 31. No other audit
shall be required.] by the Comptroller General in accordance with the
provisions of the Accounting and Auditing Act of 1950.
SECTION 432 OF THE HIGHER EDUCATION ACT OF 1965
LEGAL POWERS AND RESPONSIBILITIES
SEC. 432. (a) ***
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(b) The Commissioner shall, with respect to the financial operations
arising by reason of this part-
(1) prepare annually and submit a budget program as pro-
vided for wholly owned Government corporations by the Gov-
ernment Corporation Control Act; and
(2) maintain with respect to insurance under this part [an in-
tegral] a set of accounts, which shall be audited [annually] by the
[Genera] Accounting Office in accordance with principles and
procedures applicable to commercial corporate transactions, as
provided by section 105 of the Government Corporation Control
Act.] Comptroller General in accordance with the provisions of
the Accounting and Auditing Act of 1950, except that the trans-
actions of the Commissioner, including the settlement of insurance
claims and of claims for payments pursuant to section 428, and
transactions related thereto and vouchers approved by the Com-
missioner in connection with such transactions, shall be final and
conclusive upon all accounting and other officers of the Govern-
ment.
SECTION 402 OF THE HOUSING ACT OF 1950
TITLE IV-HOUSING FOR EDUCATIONAL INSTITUTIONS
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GENERAL PROVISIONS
SEC. 402. (a) In the performance of, and with respect to, the func-
tions, powers, and duties vested in him by this title, the Secretary
notwithstanding the provisions of any other law, shall-
28
(1) prepare annually and submit a budget program as provided
for wholly owned Government corporations by the Government
Corporation Control Act, as amended; and
(2) maintain [an integral] a set of accounts which shall be
audited [annually] by the General Accounting Office] Comp-
troller General in accordance with the [principles and procedures
applicable to commercial transactions as provided by the Govern-
ment Corporation Control Act, as amended, and no other audit
shall be required] provisions of the Accounting and Auditing Act
of 1950: Provided, That such financial transactions of the Secre-
tary] Administrator as the making of loans and vouchers ap-
proved by the [Secretary] Administrator in connection with such
financial transactions shall be final and conclusive upon all officers
of the Government.
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SECTION 209 OF THE FEDERAL CREDIT UNION ACT
ADMINISTRATIVE PROVISIONS
SEC. 209. (a) ***
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(b) With respect to the financial operations arising by reason of
this title, the Administrator shall-
(1) prepare annually and submit a business-type budget as
provided for wholly owned Government corporations by the
Government Corporation Control Act; and
(2) maintain an integral set of accounts, which shall be audited
[annually] by the General Accounting Office in accordance with
principles and procedures applicable to commercial corporate
transactions, as provided by section 105 of the Government Cor-
poration Control Act.
SECTION 309 OF TITLE 44, UNITED STATES CODE
§ 309. Revolving fund for operation and maintenance of Govern-
ment Printing Office: capitalization; reimbursements
and credits; accounting and budgeting; reports
(a)
*
*
*
*
*
*
*
*
*
*
(c) An adequate system of accounts for the fund shall be maintained
on the accrual method, and financial reports prepared on the basis of
the accounts. The Public Printer shall prepare and submit an annual
business-type budget program for the operations under this fund.
[The General Accounting Office shall audit the activities of the Gov-
ernment Printing Office and furnish an audit report annually to the
Congress and the Public Printer.] The Comptroller General shall
audit the activities of the Government Printing Office at least once
every three years and shall furnish reports of such audits to the Con-
29
gress and the Public Printer. For these purposes the Comptroller
General shall have such access to the records, files, personnel, and
facilities of the Government Printing Office as he considers necessary.
(EFFECTIVE ONE YEAR AFTER ENACTMENT OF THE
GENERAL ACCOUNTING OFFICE ACT OF 1974)
SECTION 1 OF THE ACT OF OCTOBER 9, 1940
AN ACT Providing for the barring of claims against the United States
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That every claim or
demand (except a claim or demand by any State, Territory, possession
or the District of Columbia) against the United States cognizable by
the General Accounting Office under section 305 of the Budget and
Accounting Act of June 10, 1921 (42 Stat. 24), and the Act of April
10, 1928 (45 Stat. 413), shall be forever barred unless such claim,
bearing the signature and address of the claimant or of an authorized
agent or attorney, shall be received in said office within [ten full] six
years after the date such claim first accrued: Provided, That when a
claim of any person serving in the military or naval forces of the
United States accrues in time of war, or when war intervenes within
five years after its accrual, such claim may be presented within five
years after peace is established.
APPENDIX
TEXT OF COMMITTEE BILL AS REPORTED
This Act may be cited as the "General Accounting Office Act of
1974."
TITLE I-STATISTICAL SAMPLING PROCEDURES IN
THE EXAMINATION OF VOUCHERS
SEC. 101. Subsection (a) of the Act entitled "An Act to permit the
use of statistical sampling procedures in the examination of vouchers",
approved August 30, 1964 (31 U.S.C. 82b-1(a)), is amended to read
as follows:
"(a) Whenever the head of any department or agency of the Gov-
ernment or the Commissioner of the District of Columbia determines
that economies will result therefrom, such agency head or the Commis-
sioner may prescribe the use of adequate and effective statistical sam-
pling procedures in the examination of disbursement vouchers not ex-
ceeding such amounts as may from time to time be prescribed by the
Comptroller General of the United States; and no certifying or dis-
bursing officer acting in good faith and in conformity with such pro-
cedures shall be held liable with respect to any certification or payment
made by him on a voucher which was not subject to specific examina-
tion because of the prescribed statistical sampling procedure, SO long as
such officer and his department or agency have diligently pursued col-
lection action to recover the illegal, improper, or incorrect payment in
accordance with procedures prescribed by the Comptroller General.
The Comptroller General shall include in his reviews of accounting
systems an evaluation of the adequacy and effectiveness of procedures
established under the authority of this Act."
TITLE II-AUDIT OF TRANSPORTATION PAYMENTS
SEC. 201. Section 322 of the Transportation Act of 1940 (49 U.S.C.
66) is amended-
(1) by striking out the first sentence of subsection (a) and in-
serting in lieu thereof "Pavment for transportation of persons
or property for or on behalf of the United States by any carrier
or forwarder shall be made upon presentation of bills therefor
prior to audit by the General Services Administration, or by any
other executive agency designated by the Administrator of Gen-
eral Services to conduct such audit (pursuant to regulations pre-
scribed by him) in cases involving transportation outside the
continental United States or in other exceptional cases. The right
(31)
32
is reserved to the United States Government to deduct the amount
of any overcharge by any carrier or forwarder from any amount
subsequently found to be due such carrier or forwarder. The pro-
visions of this subsection shall not affect the authority of the Gen-
eral Accounting Office to make audits in accordance with the
Budget and Accounting Act, 1921 (31 U.S.C. 41), and the Ac-
counting and Auditing Act of 1950 (31 U.S.C. 65)
(2) in the second proviso of subsection (a), by striking out
"cognizable by the General Accounting Office" and by striking out
"received in the General Accounting Office" and inserting in lieu
of the latter "received in the General Services Administration or
an executive agency designated by the Administrator of General
Services"; and
(3) by redesignating subsections (b) and (c) as subsections (c)
and (d), respectively, and by inserting the following new sub-
section (b) :
(b) Nothing in subsection (a) hereof shall be deemed to prevent
any carrier or forwarder from requesting the Comptroller General
to review the action on his claim by the General Services Administra-
tion or an executive agency designated by the Administrator of Gen-
eral Services. Such request shall be forever barred unless received in
the General Accounting Office within six months (not including any
time of war) from the date the action was taken or within the periods
of limitation specified in the second proviso in subsection (a) of this
section, whichever is later.".
SEC. 202. (a) Incident to the transfer of functions pursuant to the
amendments made by section 201 of this Act, there shall be transferred
to such agency such records, property, personnel, appropriations, and
other funds of the General Accounting Office as the Comptroller Gen-
eral and the Director of the Office of Management and Budget shall
jointly determine after consultation with the Administrator of Gen-
eral Services and, with respect to personnel, with the Chairman of
the United States Civil Service Commission.
(b) Personnel transferred pursuant to subsection (a) of this section
shall not be reduced in classification or compensation for one year
after such transfer, except for cause. After such one year period, each
person transferred pursuant to subsection (a) shall be subject to the
provisions of section 5337 of title 5, United States Code, as if such
person had continued to be an employee of the General Accounting
Office.
SEC. 203. The transfer of functions pursuant to the amendments
made by section 201 of this Act shall be fully effected not later than
July 1, 1977, or at such earlier time as is agreed upon by the Comp-
troller General and the Administrator of General Services. Notice of
the effective date of the transfer shall be published in the Federal
Register not less than thirty days in advance thereof. No transfer of
personnel pursuant to this title shall be effected prior to July 1, 1975.
TITLE III-AUDIT OF NONAPPROPRIATED FUND
ACTIVITIES
SEC. 301. (a) The (1). operations and funds (including central
funds) of nonappropriated fund and related activities authorized or
33
operated by an executive agency to sell merchandise or services to
military or other Government personnel and their dependents, such as
the Army and Air Force Exchange Service, Navy Exchanges, Marine
Corps Exchanges, Coast Guard Exchanges, Exchange Councils of the
National Aeronautics and Space Administration, commissaries, clubs,
and theaters, (2) systems of accounting and internal controls of such
funds and activities, and (3) any internal or independent audits or
reviews of such funds and activities shall, unless otherwise provided by
law, be subject to review by the Comptroller General of the United
States in accordance with such principles and procedures and under
such rules and regulations as he may prescribe. The Comptroller Gen-
eral and his duly authorized representatives shall have access to those
books, accounts, records, documents, reports, files, and other papers,
things, or property relevant to funds and activities within this subsec-
tion as are deemed necessary by the Comptroller General.
(b) When required by the Comptroller General for such nonappro-
priated fund and related activities with gross receipts from sales of
more than $100,000 a year as he may designate by class, or upon specific
request of the Comptroller General in any other case, each executive
agency shall furnish promptly a copy of the annual report of any
nonappropriated fund or related activity referred to in subsection (a).
If such information is not included in any activity's annual report,
such agency shall also furnish a statement showing the yearly finan-
cial operations, financial condition, and cash flow, and such other
annual information relating to the activity as may be agreed upon by
the Comptroller General and the head of the executive agency
concerned.
TITLE IV-EMPLOYMENT OF EXPERTS AND
CONSULTANTS
SEC. 401. The Comptroller General may employ experts and con-
sultants in accordance with section 3109 of title 5, United States Code,
at rates not in excess of the maximum daily rate prescribed for GS-18
under section 5332 of title 5, United States Code, for persons in the
Government service employed intermittently. However, ten such ex-
perts or consultants may be employed for periods not in excess of three
years, at rates (or the daily equivalent thereof) not in excess of the
rate prescribed for Executive level V under section 5316 of title 5,
United States Code.
TITLE V-GENERAL ACCOUNTING OFFICE BUILDING
SEC. 501. Notwithstanding any other provision of law, the Comp-
troller General shall have exclusive custody and control over the Gen-
eral Accounting Office Building, including the operation, maintenance,
repairs, alterations, and assignment of space therein. The Comptroller
General and the head of any Federal agency may enter into agree-
ments for space to be occupied in the General Accounting Office Build-
ing by such agency at such rates as may be agreed upon. Amounts re-
ceived by the General Accounting Office pursuant to such agreements
will be deposited to the appropriation initially charged for providing
operation, maintenance, repair and alteration services with respect to
such space.
34
TITLE VI-AUDIT OF GOVERNMENT CORPORATIONS
AMENDMENTS TO THE GOVERNMENT CORPORATION CONTROL ACT
SEC. 601. The Government Corporation Control Act is amended as
follows:
(1) Section 105 of such Act (31 U.S.C. 850) is amended by
adding at the end thereof the following sentence: "Effective
July 1, 1974, each wholly owned Government corporation shall
be audited at least once every three years.".
(2) Section 106 of such Act (31 U.S.C. 851) is amended by
striking out the first sentence and inserting in lieu thereof "A
report of each audit conducted under section 105 shall be made by
the Comptroller General to the Congress not later than six and
one-half months following the close of the last year covered by
such audit.".
(3) Section 202 of such Act (31 U.S.C. 857) is amended by add-
ing at the end thereof the following sentence: "Effective July 1,
1974, each mixed-ownership Government corporation shall be ua-
dited as provided herein at least once in every three years.".
(4) Section 203 of such Act (31 U.S.C. 858) is amended by
striking out the first sentence and inserting in lieu thereof "A re-
port of each audit conducted under section 202 shall be made by
the Comptroller General to the Congress not later than six and
one-half months following the close of the last year covered by
such audit.".
AMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT
SEC. 602. The Federal Deposit Insurance Act is amended as follows:
(1) Section 17 (b) of such Act (12 U.S.C. 1827 (b) is amended
by adding at the end thereof the following sentence: " The Corpo-
ration shall be audited at least once in every three years.".
(2) Section 17 (c) of such Act (12 U.S.C. 1827 (c)) is amended
by striking out the first and second sentences and inserting in
lieu thereof "A report of each audit conducted under subsection
(b) of this section shall be made by the Comptroller General
to the Congress not later than six and one-half months following
the close of the last year covered by such audit.".
AMENDMENT TO FEDERAL CROP INSURANCE ACT
SEC. 603. Section 513 of the Federal Crop Insurance Act (52 Stat.
76; 7 U.S.C. 1513) is amended by striking out all after the first
sentence.
AMENDMENTS TO THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968
SEC. 604. Section 107 (g) of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701y (g)) is amended by-
(1) adding the following new sentence at the end of subpara-
graph (1) : "Such audit shall be made at least once every three
years."; and
35
(2) striking out the first sentence in subparagraph (2) and in-
serting in lieu thereof "A report of each such audit shall be
made by the Comptroller General to the Congress not later than
six and one-half months following the close of the last year
covered by such audit.".
AMENDMENT TO DISTRICT OF COLUMBIA REDEVELOPMENT ACT OF 1945
SEC. 605. Section 17 of the District of Columbia Redevelopment Act
of 1945 (60 Stat. 801) is amended by striking out "annual audit" in
the last sentence and inserting in lieu thereof "audit".
TITLE VII-REVISION OF ANNUAL AUDIT
REQUIREMENTS
AMENDMENT TO FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT
OF 1949
SEC. 701. Section 109 (e) of the Federal Property and Administra-
tive Services Act of 1949 (40 U.S.C. 756 (e)) is amended to read as
follows:
(e) (1) As of June 30 of each year, there shall be covered into the
United States Treasury as miscellaneous receipts any surplus in the
General Supply Fund, all assets, liabilities, and prior losses considered,
above the amounts transferred or appropriated to establish and main-
tain said fund.
'(2) The Comptroller General shall make audits of the General
Supply Fund in accordance with the provisions of the Accounting and
Auditing Act of 1950 and make reports on the results thereof.".
AMENDMENT TO THE FEDERAL AVIATION ACT OF 1958
SEC. 702. That part of the second sentence of section 1307 (f) of the
Federal Aviation Act of 1958 (49 U.S.C. 1537 (f)) which precedes
the proviso is amended to read as follows: "The Secretary shall main-
tain a set of accounts which shall be audited by the Comptroller Gen-
eral in accordance with the provisions of the Accounting and Audit-
ing Act of 1950:"
AMENDMENT WITH RESPECT TO THE BUREAU OF ENGRAVING AND PRINTING
FUND
SEC. 703. Section 6 of the Act entitled "An Act to provide for financ-
ing the operations of the Bureau of Engraving and Printing, Treasury
Department, and for other purposes" (31 U.S.C. 181d) is amended by
striking out "the General Accounting Office" and all that follows
thereafter to the end of such section and inserting in lieu thereof "the
Comptroller General in accordance with the provisions of the Account-
ing and Auditing Act of 1950.".
AMENDMENT WITH RESPECT TO THE VETERANS' CANTEEN SERVICE
SEC. 704. Section 4207 of title 38, United States Code, is amended
to read as follows:
36
"§ 4207. Audit of accounts
"The Service shall maintain a set of accounts which shall be audited
by the Comptroller General in accordance with the provisions of the
Accounting and Auditing Act of 1950.".
AMENDMENT WITH RESPECT TO THE HIGHER EDUCATION INSURED LOAN
PROGRAM
SEC. 705. Section 432 (b) (2) of the Higher Education Act of 1965
(20 U.S.C. 1082 (b) (2)) is amended to read as follows:
"(2) maintain with respect to insurance under this part a set
of accounts, which shall be audited by the Comptroller General
in accordance with the provisions of the Accounting and Auditing
Act of 1950, except that the transactions of the Commissioner, in-
cluding the settlement of insurance claims and of claims for pay-
ments pursuant to section 428, and transactions related thereto
and vouchers approved by the Commissioner in connection with
such transactions, shall be final and conclusive upon all accounting
and other officers of the Government.".
AMENDMENT TO THE HOUSING ACT OF 1950
SEC. 706. Section 402 (a) (2) of the Housing Act of 1950 (64 Stat.
78; 12 U.S.C. 1749a (a) (2)) is amended to read as follows:
"(2) maintain a set of accounts which shall be audited by the
Comptroller General in accordance with the provisions of the
Accounting and Auditing Act of 1950: Provided, That such finan-
cial transactions of the Administrator as the making of loans and
vouchers approved by the Administrator in connection with such
financial transactions shall be final and conclusive upon all officers
of the Government.".
AMENDMENT TO THE FEDERAL CREDIT UNION ACT
SEC. 707. Section 209 (b) (2) of the Federal Credit Union Act (12
U.S.C. 1789 (b) (2)) is amended by striking out "annually".
AMENDMENT WITH RESPECT TO AUDIT OF THE GOVERNMENT PRINTING
OFFICE
SEC. 708. Section 309 (c) of title 44, United States Code, is amended
by striking out the third sentence and inserting in lieu thereof "The
Comptroller General shall audit the activities of the Government
Printing Office at least once every three years and shall furnish reports
of such audits to the Congress and the Public Printer.".
TITLE VIII-LIMITATION OF TIME ON CLAIMS AND
DEMANDS
SEC. 801. Effective one year after enactment of this Act, section 1
of the Act of October 9, 1940 (54 Stat. 1061; 31 U.S.C. 237), is amended
by striking out "ten full years" and inserting in lieu thereof "six
years".
Calendar No. 1245
93D CONGRESS
SENATE
REPORT
2d Session
No. 93-1314
GENERAL ACCOUNTING OFFICE ACT OF 1974
DECEMBER 10, 1974.-Ordered to be printed
Mr. HUDDLESTON, from the Committee on Government Operations,
submitted the following
REPORT
[To accompany S. 3013]
The Committee on Government Operations, to which was referred
the bill (S. 3013) to revise and restate certain functions of the Comp-
troller General of the United States, and for other purposes, having
considered the same, reports favorably thereon, with amendments, and
recommends that the bill as amended do pass.
PURPOSE
The purpose of this bill is to streamline and modernize the role and
responsibility of the General Accounting Office SO that it may more
fully utilize its resources as an arm of the Congress. Among other
things, the bill restates the time frames within which the Comptroller
General must audit certain accounts, transfers the "executive function"
of auditing transportation vouchers and claims to the General Serv-
ices Administration, and provides the Comptroller General authority
for audits of certain nonappropriated funds.
EXPLANATION OF COMMITTEE ACTION
As amended by the committee, the bill would eliminate the strict
dollar ceiling imposed on government agencies before they are allowed
to employ statistical sampling procedures, and authorize the Comp-
troller General to prescribe limits for each agency on the dollar amount
of vouchers subject to the use of statistical sampling procedures.
The bill would transfer the audit of transportation payments from
the General Accounting Office to the General Services Administration.
This eliminates a purely "executive function".
38-010
2
Presently, the General Accounting Office lacks authority to audit
certain nonappropriated fund activities, such as military exchange
programs. Previous investigations conducted by this committee docu-
mented the need for GAO to be given the authority to review the
accounts and procedures of such activities.
This legislation would also provide permanent authority for the
General Accounting Office to employ experts and consultants at the
GS-18 level. The General Accounting Office currently receives an
annual authorization to employ such experts and consultants in the
Legislative branch apropriations bill.
S 3013 would amend various laws to provide greater flexibility and
authority to the Comptroller General to audit the records and ac-
counts of various government corporations and revolving funds.
Finally, the legislation would reduce the statute of limitations on
claims and demands from 10 full years to six years. The number of
such claims indicates that the reduction in the statute of limitations
would not substantially affect the amount of claims submitted to the
GAO; however, substantial savings in records storage costs would
result.
SUMMARY OF HEARING
On 7 August the Subcommittee on Budgeting, Management and
Expenditures conducted a hearing on the bill, S. 3013. Witnesses in-
cluded the Comptroller General and representatives of the General
Services Administration. The General Services Administration spe-
cifically testified as to hte appropriateness of Title II (the transfer of
the audit of transportation vouchers) and Title V (the authority of
the Comptroller General to control the GAO building).
LEGISLATIVE HISTORY
Since the enactment of the Budgeting and Accounting Act of 1921,
which created the General Accounting Office, numerous statutes have
increased or affected the responsibility of that Office, including the
Auditing and Accounting Act of 1950 and the Legislative Reorganiza-
tion Acts of 1946 and 1970. The Congress has continually reinforced
the fundamental principle that the General Accounting Office is "an
establishment of the Government which shall be independent of the
executive departments
1
S. 3013 was introduced by Senators Ervin, Metcalf, and Ribicoff,
on request of the Comptroller General, on February 19, 1974. The
bill is a redraft of portions of legislation submitted earlier by the
General Accounting Office, and introduced by the same senators
(S. 2049) on June 21, 1973. A hearing was held on Title IV of that
bill on August 1, 1973, in conjunction with hearings on budget control
legislation. The Comptroller General and the GAO were made part of
the legislative branch by statute in 1945.2
SECTION-BY-SECTION ANALYSIS
Title I of S. 3013 amends Public Law 88-521, approved August 30,
1964, which gives the heads of departments and agencies and the Com-
1 Section 301, Budget and Accounting Act of 1921, as amended, 31 U.S.C. 41.
2 Section 7, Reorganization Act of 1945, 5 U.S.C. 902.
3
missioner of the District of Columbia the authority to allow the use of
statistical sampling in the examination of disbursement vouchers for
amounts less than $100.
The law also provides that certifying and disbursing officers acting
in good faith and using such procedures are relieved of liability for
improper certification of payment of vouchers that may not have been
examined because of the use of a statistical sampling plan.
Title I would amend subsection (a) of Public Law 88-521 SO as
to eliminate the current $100 limitation on the amount of disbursement
vouchers subject to audit by statistical sampling. In its place, the bill
would impose a limitation of such amount as the Comptroller General
may prescribe.
The result of the enactment of this title would be to increase the
number of vouchers that may be subject to audit by statistical sam-
pling techniques. This title will result in substantial savings in both
time and manpower.
The amended language authorizing the Comptroller General to es-
tablish the upper limits for disbursement vouchers that may be sam-
pled, and to change this limit from time to time as conditions warrant,
will avoid the current problem of having the limitations fixed by law.
Title II amends section 322 of the Transportation Act of 1940 to
continue the statutory requirement for payment of carrier bills upon
presentation. But S. 3013 moves the primary responsibility for the
audit of transportation payments and the recovery of overcharges
from the General Accounting Office to the General Services Adminis-
tration. The responsibility for the detailed audit would be vested in
the Executive branch, subject to overall review by the GAO. GAO
would still retain its appellate function, enabling carriers to request
the Comptroller General to review executive agency action on their
claims.
The committee has amended the original bill to eliminate OMB
designation of the responsible executive agency, and placed the respon-
sibility for the audit function in GSA. However, the committee
recognizes that the GSA does not now perform the audit for foreign
transportation vouchers, and thus provides that the Administrator
may designate another agency to carry out that function. However,
the responsibility would still remain with the General Services
Administration.
Employees of GAO have expressed concern about the transfer of
personnel currently assigned to the Transportation Claims Division
within GAO. (The legislation provides for the transfer of all rec-
ords, personnel, funds, etc., involved in the audit responsibility.)
The employees are concerned about job protection, salary retention,
and the possible loss of personnel due to relocation outside the GAO
building.
The committee, to meet these concerns, amended the title to insure
that personnel transferred shall not be reduced in classification or
compensation for two years after such transfer, except for cause, and
that after such two year period such personnel shall be subject to the
provisions of section 5337 of title 5 United States Code.
In addition, the committee amendments provide that such person-
nel shall be provided with training, counseling and career develop-
ment and equal employment opportunity programs by the Comp-
4
troller General in order to effectuate a full and adequate transfer of
the functions, and be guaranteed such protections and programs by
the Administrator of the General Services Administration subsequent
to such transfer in accordance with a plan to be established by the
Administrator. The Committee is aware that such programs are al-
ready in existence in GAO and GSA. The amendments are designed to
assure continued availability of these programs to the affected em-
ployees both before and after the transfer.
The bill establishes a time frame between October 1, 1975 and Sep-
tember 30, 1976, within which the transfer is to be mutually deter-
mined by the Comptroller General and the Administrator of General
Services, with notice in the Federal Register 60 days prior to the
transfer of this function to the General Services Administration. GSA
shall publish in the Federal Register its detailed plan for the trans-
fer of functions and personnel under this title. This plan shall be
based upon a thorough survey of facilities available for such people,
and identify GSA's plan for career development and counseling. The
implementation of this plan will be under the supervision of a liaison
group composed of representatives of the GAO, General Services
Administration, and the Civil Service Commission.
Title III makes nonappropriated fund activities which sell mer-
chandise or services to military or other Government personnel and
their dependents, such as the military exchanges, subject to audit by
the Comptroller General and gives the Comptroller General the
authority to inspect records and property and to obtain copies of
annual reports.
Subsection 301 (a) would authorize the Comptroller General, un-
less otherwise required by law, to review the operations. svstems of
accounting and internal controls, and any internal or independent
audits or reviews of non-appropriated funds and related activities
within the Executive branch.
Under this section, the Comptroller General and his duly authorized
representatives would have access to such documents relating to these
funds and activities as is deemed necessary.
Subsection (b) would require such nonappropriated fund activities
as the Comptroller General designates to furnish him, an annual
report, including annual statements of financial operations, financial
conditions and cash flow.
The Committee recognized that increased paperwork may result
from the mandatory filing of reports of nonappropriated fund activi-
ties with the General Accounting Office. To eliminate the unnecessary
paper flow to the GAO, the committee has authorized the Comptroller
General to request such reports, rather than make the filing of such
reports mandatory.
Title IV provides the Comptroller General with permanent au-
thoritv to employ experts and consultants in accordance with sec-
tion 3109 of Title 5, United States Code. at rates not in excess of
the maximum daily rate prescribed for GS-18 under section 5332 of
Title 5, United States Code. The committee did not accept the provi-
sions submitted by the GAO for authority to employ experts and
consultants at the rate of Level V of the Executive Schedule.
The committee has authorized the Comptroller General to employ
up to ten experts and consultants for periods not in excess of three
vears. The committee is aware of the fact that some functions GAO
is required to monitor may extend beyond the one year limitation
5
generally imposed upon experts and consultants. To provide continuity
regarding such activities, such as program evaluations, the committee
has authorized a three year limitation on the length of employment.
Title V of the legislation introduced provided the Comptroller
General with authority to control the GAO headquarters building and
to lease buildings or parts of buildings elsewhere. The committee has
supplanted this title with a new Title V, which would provide the
GAO first priority on space within the GAO headquarters building,
including, if necessary, the displacement of Executive branch agencies,
which now occupy almost half the space.
The committee is aware of the time and dollar investments made by
the two principal Executive branch agencies which currently occupy
the GAO building. However, the committee feels that it is more
advantageous for the General Accounting Office to be centralized in
one location, to the maximum extent feasible.
Additional functions are continuously being placed in the General
Accounting Office. New responsibilities, particularly in light of the
passage of the Congressional Budget and Impoundment Control Act
of 1974, require that the General Accounting Office be permitted to
expand its facilities in a single location. The committee expects GSA
to act promptly on any future requests for space by the Comptroller
General.
Title VI of S. 3013, as reported by the committee, amends the
Government Corporation Control Act, the Federal Deposit Insurance
Act, the Federal Crop Insurance Act, and the Housing and Urban
Development Act of 1968 to provide for audits of government
corporations at least once every three years instead of annually.
Title VI also removes the requirement for an annual audit from the
District of Columbia Redevelopment Act of 1945 and the Federal
Home Loan Bank Act.
These amendments will not dilute congressional oversight of the
operations of the corporations covered in this section of the bill. The
provision does not restrict an audit to only once in every three years.
On the contrary, in cases where the Comptroller General determines
that a more frequent audit is necessary, such audits would still be
permitted and encouraged. Where good accounting standards, good
management and effective internal audits are made, such continuous
annual oversight by the General Accounting Office would not be
necessary.
Title VII of S. 3013, as reported, deletes the requirement for an
annual audit from the Federal Property and Administrative Services
Act of 1949, the Housing Acts of 1949 and 1950, the Federal Credit
Union Act, and the acts concerning the operations of the Bureau of
Engraving and Printing, the Veterans Canteen Service, the Federal
Aviation Administration, the Higher Education Insured Loan Pro-
gram and the Government Printing Office.
Under this bill, the audit of these activities will be made in accord-
ance with those principles established in the Accounting and Auditing
Act of 1950. As with Title VI, this title is designed to provide GAO
with flexibility in carrying our its audit responsibilities. The decision
as to the frequency of the audit would be determined on an activity-
by-activity basis.
Section 801 decreases from 10 years to six years after the date a
claim accrues the time within which claims cognizable by the GAO
may be filed in that Office. This will make the time limitation con-
6
sistent with the Statute of Limitations now applicable to claims filed
in administrative agencies and the courts.
Section 802 provides that the reduction in time allowed for filing
claims in the GAO will not go into effect until six months after en-
actment, and makes it clear that the enactment of the new time limit
will not affect claims filed before such enactment.
Reducation of the barring statute from 10 to six years would have
a significant impact on the amount of files required to be maintained
by the GAO.
A recent test conducted by the GAO over a typical six-month period
indicated that "all GAO records between six and ten years old could
be destroyed if the statute of limitations were shortened to six years.
This would result in a savings of at least $300,000 per year, based
on the storage cost savings." The destruction of GAO records is of
course limited only to those records pertaining.
CONCLUSIONS
The legislation would revise and restate functions of the Comp-
troller General which are either outmoded or more appropriately done
by another agency.
As a result of the enactment of the legislation, the General Account-
ing Office will be better equipped to meet the needs and demands of
the Congress. It will be better able to shift its resources from the
annual audit of many accounts to the audit of nonappropriated funds.
It will be able to employ experts and consultants to design needed
program evaluation techniques. Greater flexibility will increase its re-
sponsiveness to congressional needs. As a result, the Congress would
be in a better position to meet its responsibilities.
ESTIMATED COST OF LEGISLATION
The committee expects that additional costs may arise from the
enactment of this legislation as a result of the authority given the
Comptroller General to employ experts and consultants at a rate not
to exceed GS-18. It is impractical for the committee to estimate the
exact cost, which would vary with the number of persons employed
under such provisions and the period of time for which they were
retained; however, since GAO has had such authority in its appropri-
ations acts for the past several years, the increase should be nominal.
No additional costs are anticipated for the next five fiscal years
with respect to Titles I (statistical sampling procedures), III (audit
of nonappropriated fund activities), VI (audit of government cor-
porations), VII (revision of annual audit requirements) and VIII
(limitations of time of claims and demands).
Additional expenditures may result from the enactment of Title II
(audit of transportation payments) concerning salary retention pro-
visions and expanded employee benefit programs, and Title V (Gen-
eral Accounting Office Building) concerning leasing authority for the
General Services Administration. It is impractical for the committee
to estimate the cost of the enactment of these provisions for the next
five years.
Estimates submitted by the General Accounting Office indicate
that approximately $322,000 in storage costs would be saved as a
result of the reduction in the time for filing demands. The committee
cannot estimate additional savings in time, manpower and dollars as
7
a result of the reduction in the frequency of audits, and the increase
in the use of statistical sampling procedures.
CHANGES IN EXISTING LAW
In compliance with subsection 4 of rule XXIX of the Standing
Rules of the Senate, changes in existing law made by the bill as re-
ported are shown as follows (existing law proposed to be changed
enclosed in black brackets, new matter in italic, existing law in which
no change is proposed to be made in roman) :
Act OF AUG. 30, 1964
AN ACT To permit the use of statistical sampling procedures in the examination
of vouchers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, (a) That, when-
ever the head of any department or agency of the Government or
the Commissioners of the District of Columbia determines that
economies will result therefrom, such agency head or the Commis-
sioners may prescribe the use of adequate and effective statistical
sampling procedures in the examination of disbursement vouchers
for amounts of less than $100; and no certifying or disbursing officer
acting in good faith and in conformity with such procedures shall be
held liable with respect to any certification or payment made by him
on a voucher which was not subject to specific examination because of
the prescribed statistical sampling procedure, provided that such
officer and his department or agency have diligently pursued collec-
tion action to recover the illegal, improper, or incorrect payment in'
accordance with procedures prescribed by the Comptroller General.]
(a) Whenever the head of any department or agency of the Govern-
ment or the Commissioner of the District of Columbia determines that
economies will result therefrom, such agency head or the Commissioner
may prescribe the use of adequate and effective statistical sampling
procedures in the examination of disbursement vouchers not exceeding
such amounts as may from time to time be prescribed by the Comp.-
troller General of the United States; and no certifying or disbursing
officer acting in good faith and in conformity with such procedures
shall be held liable with respect to any certification or payment made
by him on a voucher which was not subject to specific examination
because of the prescribed statistical sampling procedure: Provided,
That such officer and his department or agency have diligently pur-
sued collection action to recover the illegal, improper, or incorrect
payment in accordance with procedures prescribed by the Comptroller
General. The Comptroller General shall include in his reviews of
accounting systems an evaluation of the adequacy and effectiveness of
procedures established under the authority of this Act.
(b) Nothing contained in this Act shall affect the liability, or
authorize the relief, of any payee, beneficiary, or recipient of any
illegal, improper, or incorrect payment, or relieve any certifying or
disbursing officer, the head of any department or agency of the
Government, the Commissioners of the District of Columbia, or the
Comptroller General of responsibility to pursue collection action
against any such payee, beneficiary, or recipient.
8
SECTION 322 OF THE TRANSPORTATION ACT OF 1940
DEDUCTION OF OVERPAYMENTS
SEC. 322. (a) [Subject to such standards as shall be promulgated
jointly by the Secretary of the Treasury and the Comptroller General
of the United States, payment for transportation of persons or prop-
erty for or on behalf of the United States by any carrier or forwarder
shall be made upon presentation of bills therefor, prior to audit or
settlement by the General Accounting Office, but the right is reserved
to the United States Government to deduct the amount of any over-
charge by any carrier or forwarder from any amount subsequently
found to be due such carrier or forwarder.] Payment for transporta-
tion of persons or property for or on behalf of the United States by
any carrier or forwarder shall be made upon presentation of bills
therefor prior to audit by the General Services Administration, or
his designee. The right is reserved to the United States Government
to deduct the amount of any overcharge by any carrier or forwarder
from any amount subsequently found to be due such carrier or for-
warder. This does not affect the authority of the General Accounting
Office to make audits in accordance with the Budget and Accounting
Act, 1921 (31 U.S.C. 41), and the Accounting and Auditing Act of
1950 (31 U.S.C. 65). The term "overcharges" shall be deemed to mean
charges for transportation services in excess of those applicable
thereto under tariffs lawfully on file with the Interstate Commerce
Commission, the Civil Aeronautics Board, the Federal Maritime Com-
mission, and any State transportation regulatory agency, and charges
in excess of those applicable thereto under rates, fares, and charges
established pursuant to section 22 of the Interstate Commerce Act, as
amended, or other equivalent contract, arrangement, or exemption
from regulation: Provided, however, That such deductions shall be
made within three years (not including any time of war) from the
time of payment of bills: Provided further, That every claim [cog-
nizable by the General Accounting Office] for charges for transporta-
tion within the purview of this section shall be forever barred unless
such claim shall be [received in the General Accounting Office] re-
ceived in the General Services Administration, or by his designee
within three years (not including any time of war) from the date of
(1) accrual of the cause of action thereon, or (2) payment of charges
for the transportation involved, or (3) subsequent refund for overpay-
ment of such charges, or (4) deduction made pursuant to this section,
whichever is later.
(b) Nothing in subsection (a) hereof shall be deemed to prevent any
carrier or forwarder from requesting the Comptroller General to
review the action on his claim by the General Services Administration
or his designee. Such request shall be forever barred unless received in
the General Accounting Office within six months (not including any
time of war) from the date the action was taken or within the periods
of limitation specified in the second proviso in subsection (a) of this
section, whichever is later.
[(b)](c) Pursuant to regulations prescribed by the head of a Gov-
ernment agency or his designee and in conformity with such standards
9
as shall be promulgated jointly by the Secretary of the Treasury and
the Comptroller General of the United States, bills for passenger
or freight transportation services to be furnished the United States
by any carrier or forwarder may be paid in advance of completion of
the services, without regard to section 3648 of the Revised Statutes,
as amended (31 U.S.C. 529) : Provided, That such carrier or forwarder
has issued the usual ticket, receipt, bill of lading, or equivalent docu-
ment covering the service involved, subject to later recovery by deduc-
tion or otherwise of any payments made for any services not received
as ordered by the United States.
[(c) (d) The term "head of a Government agency" means any in-
dividual or group of individuals having final decisionmaking respon-
sibility for any department, commission, board, service, Government
corporation, instrumentality, or other establishment or body in the
United States Government.
GOVERNMENT CORPORATION CONTROL ACT
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TITLE I-WHOLLY OWNED GOVERNMENT
CORPORATIONS
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SEC. 105. The financial transactions of wholly owned Government
corporations shall be audited by the General Accounting Office in
accordance with the principles and procedures applicable to com-
mercial corporate transactions and under such rules and regulations
as may be prescribed by the Comptroller General of the United States:
Provided, That such rules and regulations may provide for the reten-
tion at the offices of such corporations, in whole or in part, of any
accounts of accountable officers, covering corporate financial transac-
tions, which are required by existing law to be settled and adjusted in
the General Accounting Office, and for the settlement and adjust-
ment of such accounts in whole or in part upon the basis of examina-
tions in the course of the audit herein provided, but nothing in this
proviso shall be construed as affecting the powers reserved to the
Tennessee Valley Authority in the Act of November 21, 1941 (55
Stat. 775). The audit shall be conducted at the place or places where
the accounts of the respective corporations are normally kept. The
representatives of the General Accounting Office shall have access to
all books, accounts, financial records, reports, files, and all other papers,
things, or property belonging to or in use by the respective corpora-
tions and necessary to facilitate the audit, and they shall be afforded
full facilities for verifying transactions with the balances or securi-
ties held by depositaries, fiscal agents, and custodians. The audit shall
begin with the first fiscal year commencing after the enactment of
this Act. The audit of the Federal Savings and Loan Insurance Cor-
poration shall be conducted on a calendar year basis. Effective July 1,
1974, each wholly owned Government corporation shall be audited at
least once every three years.
38-010-74-2
10
SEC. 106. [A report of each such audit for a fiscal year shall be made
by the Comptroller General to the Congress not later than January 15
following the close of such fiscal year (and a report of each such audit
for a calendar year shall be made by the Comptroller General to the
Congress not later than July 15 following the close of such calendar
year). A report of each audit conducted under section 105 shall be
made by the Comptroller General to the Congress not later than six
and one-half months following the close of the last year covered by
such audit. The report shall set forth the scope of the audit and shall
include a statement (showing intercorporate relations) of assets and
liabilities, capital and surplus or deficit; a statement of surplus or
deficit analysis; a statement of income and expenses; a statement of
sources and application of funds; and such comments and information
as may be deemed necessary to keep Congress informed of the opera-
tions and financial condition of the several corporations, together with
such recommendations with respect thereto as the Comptroller Gen-
eral may deem advisable, including a report of any impairment of
capital noted in the audit and recommendations for the return of such
Government capital or the payment of such dividends as, in his judg-
ment, should be accomplished. The report shall also show specifically
any program, expenditure, or other financial transaction or under-
taking observed in the course of the audit, which, in the opinion of the
Comptroller General, has been carried on or made without authority
of law. A copy of each report shall be furnished to the President, to
the Secretary of the Treasury, and to the corporation concerned at the
time submitted to the Congress.
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TITLE II-MIXED-OWNERSHIP GOVERNMENT
CORPORATIONS
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is
SEC. 202. The financial transactions of mixed-ownership Govern-
ment corporations for any period during which Government capital
has been invested therein shall be audited by the General Accounting
Office in accordance with the principles and procedures applicable to
commercial corporate transactions and under such rules and regula-
tions as may be prescribed by the Comptroller General of the United
States. The audit shall be conducted at the place or places where the
accounts of the respective corporations are normally kept. The rep-
resentatives of the General Accounting Office shall have access to all
books, accounts, financial records, reports, files, and other papers,
things, or property belonging to or in use by the respective corpo-
rations and necessary to facilitate the audit, and they shall be afforded
full facilities for verifying transactions with the balances or securities
held by depositaries, fiscal agents, and custodians. The audit shall
begin with the first fiscal year commencing after the enactment of this
Act. The audit of the Federal home loan banks shall be conducted on a
11
calendar year basis. Effective July 1, 1974, each mixed-ownership Gov-
ernment corporation shall be audited as provided herein at least once
in every three years.
SEC. 203. [A report of each such audit for a fiscal year shall be
made by the Comptroller General to the Congress not later than
January 15 following the close of such fiscal year (and a report of
each such audit for a calendar year shall be made by the Comptroller
General to the Congress not later than July 15 following the close of
such calendar year). A report of each audit conducted under section
202 shall be made by the Comptroller General to the Congress not
later than six and one-half months following the close of the last year
covered by such audit. The report shall set forth the scope of the
audit and shall include a statement (showing intercorporate relations)
of assets and liabilities, capital and surplus or deficit; a statement of
surplus or deficit analysis; a statement of income and expense; a
statement of sources and application of funds; and such comments and
information as may be deemed necessary to keep Congress informed
of the operations and financial condition of, and the use of Govern-
ment capital by, each such corporation, together with such recom-
mendations with respect thereto as the Comptroller General may
deem advisable, including a report of any impairment of capital or
lack of sufficient capital noted in the audit and recommendations for
the return of such Government capital or the payment of such divi-
dends as, in his judgment, should be accomplished. The report shall
also show specifically any program, expenditure, or other financial
transaction or undertaking observed in the course of the audit, which,
in the opinion of the Comptroller General, has been carried on or
made without authority of law. A copy of each report shall be fur-
nished to the President, to the Secretary of the Treasury, and to the
corporation concerned at the time submitted to the Congress.
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SECTION 17 OF THE FEDERAL DEPOSIT INSURANCE ACT
SEC. 17. (a) The Corporation shall annually make a report of its
operations to the Congress as soon as practicable after the 1st day
of January in each year.
(b) The financial transactions of the Corporation shall be audited
by the General Accounting Office in accordance with the principles
and procedures applicable to commercial corporate transactions and
under such rules and regulations as may be prescribed by the Comp-
troller General of the United States. The audit shall be conducted at
the place or places where accounts of the Corporation are normally
kept. The representatives of the General Accounting Office shall have
access to all books, accounts, records, reports, files, and all other papers,
things, or property belonging to or in use by the Corporation pertain-
ing to its financial transactions and necessary to facilitate the audit,
and they shall be afforded full facilities for verifying transactions
with the balances or security held by depositaries, fiscal agents, and
12
custodians. All such books, accounts, records, reports, files, papers,
tody of the Corporation. The audit shall begin with financial transac-
and property of the Corporation shall remain in possession and cus-
tions occurring on and after August 31, 1948. The Corporation shall
be audited at least once in every three years.
(c) [A report of the audit for each fiscal year ending on June 30
shall be made by the Comptroller General to the Congress not later
than January 15 following the close of such fiscal year. On or before
December 15 following such fiscal year the Comptroller General shall
furnish the Corporation a short form report showing the financial
position of the Corporation at the close of the fiscal year. A report
of each audit conducted under subsection (b) of this section shall be
made by the Comptroller General to the Congress not later than six
and one-half months following the close of the last year covered by
such audit. The report to the Congress shall set forth the scope of the
audit and shall include a statement of assets and liabilities and surplus
or deficit; a statement of surplus or deficit analysis; a statement of
income and expenses; a statement of sources and application of funds
and such comments and information as may be deemed necessary to
inform Congress of the financial operations and condition of the Cor-
poration, together with such recommendations with respect thereto
as the Comptroller General may deem advisable. The report shall also
show specifically any program, expenditure, or other financial trans-
action or undertaking observed in the course of the audit, which, in the
opinion of the Comptroller General, has been carried on or made with-
out authority of law. A copy of each report shall be furnished to the
President, to the Secretary of the Treasury, and to the Corporation at
the time submitted to the Congress.
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*
SECTION 513 OF THE FEDERAL CROP INSURANCE Act
ACCOUNTING BY CORPORATION
SEC. 513. The Corporation shall at all times maintain complete and
accurate books of account and shall file annually with the Secretary of
Agriculture a complete report as to the business of the Corporation.
[The financial transactions of the Corporation shall be audited at least
once each year by the General Accounting Office for the sole purpose
of making a report to Congress, together with such recommendations
as the Comptroller General of the United States may deem advisable:
Provided, That such report shall not be made until the Corporation
shall have had reasonable opportunity to examine the exceptions and
criticisms of the Comptroller General or the General Accounting
Office, to point out errors therein, explain or answer the same, and to
file a statement which shall be submitted by the Comptroller General
with his report.]
13
SECTION 107 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968
NATIONAL HOMEOWNERSHIP FOUNDATION
SEC. 107. (a)
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(g) (1) The financial transactions of the Foundation shall be
audited by the General Accounting Office in accordance with the prin-
ciples and procedures applicable to commercial corporate transactions
and under such rules and regulations as may be prescribed by the
Comptroller General of the United States. The representatives of the
General Accounting Office shall have access to all books, accounts, fi-
nancial records, reports, files, and all other papers, things, or property
belonging to or in use by the Foundation and necessary to facilitate the
audit, and they shall be afforded full facilities for verifying transac-
tions with the balances or securities held by depositories, fiscal agents,
and custodians. The audit shall cover the fiscal year corresponding to
that of the United States Government. Such audit shall be made at
least once every three years.
(2) A report of each such audit shall be made by the Comptroller
General to the Congress not later than [January 15] six and one-half
months following the close of the [fiscal year for which the audit was
made] last year covered by such audit. The report shall set forth
the scope of the audit and shall include a statement of assets and
liabilities, capital, and surplus or deficit; a statement of sources and
application of funds; and such comments and information as may be
deemed necessary to keep the Congress informed of the operations and
financial condition of the Foundation, together with such recom-
mendations with respect thereto as the Comptroller General may deem
advisable. The report shall also show specifically any program, ex-
penditure, or other financial transaction or undertaking, observed in
the course of the audit, which, in the opinion of the Comptroller Gen-
eral, has been carried on or made without authority of law. A copy of
each report shall be furnished to the President and to the Foundation
at the time submitted to the Congress.
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SECTION 17 OF THE DISTRICT OF COLUMBIA REDEVELOPMENT
ACT OF 1945
ACQUISITION UNDER DISTRICT OF COLUMBIA ALLEY DWELLING ACT
SEC. 17. From and after the termination of the period of one year,
beginning with the date of the approval of this Act, all authority
granted by the Act known as the District of Columbia Alley Dwelling
Act, approved June 12, 1934, as amended, to acquire, by purchase,
condemnation, or gift, lands, buildings and structures, or any interest
14
therein, is hereby transferred to and vested in the Agency created by
this Act. During said one-year period said authority may be exer-
cised by the National Capital Housing Authority only for projects
that shall have been approved by the Planning Commission and the
District Commissioners: Provided, however, That failure of the
Planning Commission or the District Commissioners to approve or
disapprove in writing within sixty days after the submission by the
National Capital Housing Authority shall be equivalent to a formal
approval. Nothing contained in said Alley Dwelling Act or in this
Act shall be interpreted as precluding the inclusion at any time of
any alley or inhabited alley or alley dwelling or dwelling or square
containing an inhabited alley in a project area to be planned, acquired,
and disposed of under the provisions of this Act. Any real property
acquired by the Agency under the authority of the Alley Dwelling
Act may be transferred or may be sold or leased by the Agency as
provided in this Act for real property acquired for a project area
redevelopment. The National Capital Housing Authority is hereby
declared to be a redevelopment company and is hereby granted the
power to purchase or lease redevelopment areas or parts thereof from
the Agency in accordance with the provisions of this Act. The
National Capital Housing Authority shall keep regular books of
account in accordance with standard auditing practices, covering all
properties operated by it, showing detailed construction costs, manage-
ment costs, repairs, maintenance, other operating costs, rents, subsidies,
grants, allowances and exemptions; such books shall be subject to
[annual] audit by the General Accounting Office; and the annual
report of the National Capital Housing Authority shall include a sum-
mary of all transactions covered by such books and shall be made
available to the public upon request.
SECTION 109 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE
SERVICES ACT OF 1949
GENERAL SUPPLY FUND
SEC. 109. (a) ***
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[(e) The Comptroller General of the United States shall make an
annual audit of the General Supply Fund as of June 30, and there
shall be covered into the United States Treasury as miscellaneous
receipts any surplus found therein, all assets, liabilities, and prior
losses considered, above the amounts transferred or appropriated to
establish and maintain said fund, and the Comptroller General shall
report to the Congress annually the results of the audit, together with
such recommendations as he may have regarding the status and oper-
ations of the fund.]
(e) (1) As of June 30 of each year, there shall be covered into the
United States Treasury as miscellaneous receipts any surplus in the
General Supply Fund, all assets, liabilities, and prior losses considered,
15
above the amounts transferred or appropriated to establish and main-
tain said fund.
(2) The Comptroller General shall make audits of the General
Supply Fund in accordance with the provisions of the Accounting and
Auditing Act of 1950 and make reports on the results thereof.
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SECTION 1307 OF THE FEDERAL AVIATION ACT OF 1958
ADMINISTRATIVE POWERS OF SECRETARY
Regulatory and Settlement
SEC. 1307. (a) ***
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Budget Program and Accounts
(f) The Secretary, in the performance of, and with respect to, the
functions, powers, and duties vested in him by this title, shall prepare
annually and submit a budget program as provided for wholly owned
Government corporations by the Government Corporation Control
Act, as amended (59 Stat. 597; 31 U.S.C. 841). The Secretary shall
maintain [an integral set of accounts which shall be audited annually
by the General Accounting Office in accordance with principles and
procedures applicable to commercial transactions as provided by the
said Government Corporation Act a set of accounts which shall be
audited by the Comptroller General in accordance with the provisions
of the Accounting and Auditing Act of 1950: Provided, That, because
of the business activities authorized by this title, the Secretary may
exercise the powers conferred in said title, perform the duties and
functions, and make expenditures required in accordance with com-
mercial practice in the aviation insurance business, and the General
Accounting Office shall allow credit for such expenditures when shown
to be necessary because of the nature of such authorized activities.
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SECTION 6 OF THE ACT OF AUGUST 4, 1950
AN ACT To provide for financing the operations of the Bureau of Engraving
and Printing, Treasury Department, and for other purposes
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SEC. 6. The financial transactions, accounts, and reports of the fund
shall be audited on an annual basis by the [General Accounting Office
and a copy of each report on audit shall be furnished promptly to the
President, the Congress, and the Secretary.] Comptroller General in
accordance with the provisions of the Accounting and Auditing Act
of 1950.
16
SECTION 4207 OF TITLE 38, UNITED STATES CODE
CHAPTER 75-VETERANS' CANTEEN SERVICE
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§ 4207. Audit of Accounts
The Service shall maintain [an integral] a set of accounts which
shall be audited [annually by the General Accounting Office in accord-
ance with the principles and procedures applicable to commercial
transactions as provided by section 841-869 of title 31. No other audit
shall be required.] by the Comptroller General in accordance with the
provisions of the Accounting and Auditing Act of 1950.
SECTION 432 OF THE HIGHER EDUCATION Act OF 1965
LEGAL POWERS AND RESPONSIBILITIES
SEC. 432. (a)
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(b) The Commissioner shall, with respect to the financial operations
arising by reason of this part-
(1) prepare annually and submit a budget program as pro-
vided for wholly owned Government corporations by the Gov-
ernment Corporation Control Act; and
(2) maintain with respect to insurance under this part [an in-
tegral] a set of accounts, which shall be audited [annually by
the General Accounting Office in accordance with principles and
procedures applicable to commercial corporate transactions, as
provided by setion 105 of the Government Corporation Control
Act] by the Comptroller General in accordance with the provi-
sions of the Accounting and Auditing Act of 1950, except that
the transactions of the Commissioner, including the settlement of
insurance claims and of claims for payments pursuant to section
428, and transactions related thereto and vouchers approved by the
Commissioner in connection with such transactions, shall be final
and conclusive upon all accounting and other officers of the
Government.
SECTION 402 OF THE HOUSING ACT OF 1950
TITLE IV-HOUSING FOR EDUCATIONAL INSTITUTIONS
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GENERAL PROVISIONS
SEC. 402. (a) In the performance of, and with respect to, the func-
tions, powers. and duties vested in him by this title, the Secretary
notwithstanding the provisions of any other law, shall-
(1) prepare annually and submit a budget program as provided
for wholly owned Government corporations by the Government
Corporation Control Act, as amended; and
17
(2) maintain [an integral] a set of accounts which shall be
audited [annually by the General Accounting Office] by the
Comptroller General in accordance with the [principles and pro-
cedures applicable to commercial transactions as provided by the
Government Corporation Control Act, as amended, and no other
audit shall be required] provisions of the Accounting and Audit-
ing Act of 1950: Provided, That such financial transactions of the
[Secretary] Administrator as the making of loans and vouchers
approved by the [Secretary] Administrator in connection with
such financial transactions shall be final and conclusive upon all
officers of the Government.
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SECTION 209 OF THE FEDERAL CREDIT UNION ACT
ADMINISTRATIVE PROVISIONS
SEC. 209. (a) ***
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(b) With respect to the financial operations arising by reason of
this title, the Administrator shall-
(1) prepare annually and submit a business-type budget as
provided for wholly owned Government corporations by the
Government Corporation Control Act; and
(2) maintain an integral set of accounts, which shall be audited
[annually] by the General Accounting Office in accordance with
principles and procedures applicable to commercial corporate
transactions, as provided by section 105 of the Government Cor-
poration Control Act.
SECTION 309 OF TITLE 44, UNITED STATES CODE
§ 309. Revolving fund for operation and maintenance of Govern-
ment Printing Office: capitalization; reimbursements
and credits; accounting and budgeting; reports
(a) ***
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(c) An adequate system of accounts for the fund shall be maintained
on the accrual method, and financial reports prepared on the basis of
the accounts. The Public Printer shall prepare and submit an annual
business-type budget program for the operations under this fund.
[The General Accounting Office shall audit the activities of the Gov-
ernment Printing Office and furnish an audit report annually to the
Congress and the Public Printer.] The Comptroller General shall
audit the activities of the Government Printing Office at least once in
every three years and shall furnish reports of such audits to the Con-
gress and the Public Printer. For these purposes the Comptroller
General shall have such access to the records, files, personnel, and
facilities of the Government Printing Office as he considers necessary.
18
SECTION 1 OF THE Act OF OCTOBER 9, 1940
AN ACT Providing for the barring of claims against the United States
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That every claim or
demand (except a claim or demand by any State, Territory, possession
or the District of Columbia) against the United States cognizable by
the General Accounting Office under section 305 of the Budget and
Accounting Act of June 10, 1921 (42 Stat. 24), and the Act of
April 10, 1928 (45 Stat. 413), shall be forever barred unless such claim,
bearing the signature and address of the claimant or of an authorized
agent or attorney, shall be received in said office within [ten full] six
years after the date such claim first accrued: Provided, That when a
claim of any person serving in the military or naval forces of the
United States accrues in time of war, or when war intervenes within
five years after its accrual, such claim may be presented within five
years after peace is established.
o
CORRECT
H. R. 12113
Ninety-third Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-first day of January,
one thousand nine hundred and seventy-four
An Act
To revise and restate certain functions and duties of the Comptroller General
of the United States and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may be
cited as the "General Accounting Office Act of 1974".
TITLE I-STATISTICAL SAMPLING PROCEDURES IN
THE EXAMINATION OF VOUCHERS
SEC. 101. Subsection (a) of Public Law 88-521, approved August
30, 1964 (31 U.S.C. 82b-1 is amended to read:
(a) Whenever the head of any department or agency of the Gov-
ernment or the Commissioner of the District of Columbia determines
that economies will result therefrom, such agency head or the Com-
missioner may prescribe the use of adequate and effective statistical
sampling procedures in the examination of disbursement vouchers
not exceeding such amounts as may from time to time be prescribed
by the Comptroller General of the United States; and no certifying
or disbursing officer acting in good faith and in conformity with such
procedures shall be held liable with respect to any certification or pay-
ment made by him on a voucher which was not subject to specific exam-
ination because of the prescribed statistical sampling procedure: Pro-
vided, That such officer and his department or agency have diligently
pursued sollection action to the illegal, improper, or incorrect
payment in accordance with procedures prescribed by the Comptroller
General. The Comptroller General shall include in his reviews of
accounting systems an evaluation of the adequacy and effectiveness of
procedures established under the authority of this Act.".
TITLE II-AUDIT OF TRANSPORTATION PAYMENTS
SEC. 201. Section 322 of the Transportation Act of 1940, as amended
(49 U.S.C. 66), is further amended:
(1) By deleting from subsection (a) the first sentence thereof
and substituting therefor the following:
"Payment for transportation of persons or property for or
on behalf of the United States by any carrier or forwarder shall
be made upon presentation of bills therefor prior to audit by
the General Services Administration, or his designee. The right
is reserved to the United States Government to deduct the amount
of any overcharge by any carrier or forwarder from any amount
subsequently found to be due such carrier or forwarder. This does
not affect the authority of the General Accounting Office to make
audits in accordance with the Budget and Accounting Act, 1921,
as amended (31 U.S.C. 41); and the Accounting and Auditing
Act of 1950, as amended (31 U.S.C. 65).
(2) In the second proviso of subsection (a), by striking out
"cognizable by the General Accounting Office" and by striking
out "received in the General Accounting Office" and inserting
in lieu of the latter "received in the General Services Administra-
tion, or by his designee"; and
(3) By redesignating subsections (b) and (c) as subsections
(c) and (d), respectively, and by inserting the following new
subsection (b):
CORRECT
H. R. 12113-2
"(b) Nothing in subsection (a) hereof shall be deemed to
prevent any carrier or forwarder from requesting the Comp-
troller General to review the action on his claim by the General
Services Administration, or his designee. Such request shall be
forever barred unless received in the General Accounting Office
within six months (not including in time of war) from the
date the action was taken or within the periods of limitation
specified in the second proviso in subsection (a) of this section,
whichever is later."
SEC. 202. (a) Incident to the transfer of functions pursuant to the
amendments made by section 201 of this Act, there shall be transferred
to the General Services Administration such records, property, per-
sonnel, appropriations, and other funds of the General Accounting
Office as the Comptroller General and the Director of the Office of
Management and Budget shall jointly determine after consultation
with the Administrator of General Services and, with respect to per-
sonnel, with the Chairman of the United States Civil Service
Commission.
(b) Personnel transferred pursuant to subsection (a) of this section
shall not be reduced in classification or compensation for two years
after such transfer, except for cause. After such two-year period, each
person transferred pursuant to subsection (a) shall be subject to the
provisions of section 5337 of title 5, United States Code, as if such
person had continued to be an employee of the General Accounting
Office.
SEC. 203. (a) The transfer of functions and personnel under this
title shall be effective on such date as is mutually determined by the
Comptroller General of the United States and the Administrator of
General Services, but not earlier than October 1, 1975, and not later
than September 30, 1976.
(b) Upon the enactment of this Act the Comptroller General of the
United States shall establish and carry out 9 continuing program of
personnel development and improvement applicable to the personnel
who will be transferred under this title. Such program shall include
provisions for training, career development and counseling services, a
review of equal employment opportunity problems and the taking of
corrective action, where appropriate, and any restructuring, reclassifi-
cation, and redesigning of positions necessary to effectuate a full and
adequate transfer of the functions as provided for under this title.
(c) At least sixty days prior to the effective date determined under
subsection (a), the Administrator of General Services shall estab-
lish a detailed plan for the transfer of functions and personnel under
this title and shall publish such plan in the Federal Register. Such
plan shall be based on a thorough survey of the availability of trans-
portation to any new location for functions and personnel transferred
and of the availability of parking facilities and food, health, and
other services for personnel transferred, and shall include a detailed
description of a personnel development program to be conducted by
the Administrator of General Services to assure the establishment
and maintenance of procedures which guarantee equal employment
opportunities, promotion opportunities, employment and career coun-
seling, and training and career development for personnel who are
transferred.
(d) Six months after the date of the transfer of the personnel and
functions under this title, the Administrator of the General Services
Administration shall make a report to the Congress as to actions
which he has taken to implement such plan and the transfer of such
personnel and functions thereunder.
H. R. 12113-3
TITLE III-AUDIT OF NONAPPROPRIATED FUND
ACTIVITIES
SEC. 301. (a) The (1) operations and funds (including central
funds) of nonappropriated fund and related activities authorized or
operated by an executive agency to sell merchandise or services to
military or other Government personnel and their dependents, such
as the Army and Air Force Exchange Service, Navy Exchanges,
Marine Corps Exchanges, Coast Guard Exchanges, Exchange Councils
of the National Aeronautics and Space Administration, commissaries,
clubs, and theaters, (2) systems of accounting and internal controls
of such funds and activities, and (3) any internal or independent
audits or reviews of such funds and activities shall, unless otherwise
provided by law, be subject to review by the Comptroller General of
the United States in accordance with such principles and procedures
and under such rules and regulations as he may prescribe. The Comp-
troller General and his duly authorized representatives shall have
access to those books, accounts, records, documents, reports, files, and
other papers, things, or property relevant to funds and activities
within this subsection as are deemed necessary by the Comptroller
General.
(b) When required by the Comptroller General for such nonap-
propriated fund and related activities with gross receipts from sales
of more than $100,000 a year as he may designate by class, or upon
specific request of the Comptroller General any other case, each
executive agency shall furnish promptly a copy of the annual report
of any nonappropriated fund or related activity referred to in sub-
section (a). If such information is not included in any activity's
annual report, such agency shall also furnish a statement showing the
yearly financial operations, financial condition, and cash flow, and such
other annual information relating to the activity as may be agreed
upon by the Comptroller General and the head of the executive agency
concerned.
TITLE IV-EMPLOYMENT OF EXPERTS AND
CONSULTANTS
SEC. 401. The Comptroller General may employ experts and con-
sultants in accordance with section 3109 of title 5, United States
Code, at rates not in excess of the maximum daily rate prescribed
for GS-18 under section 5332 of title 5, United States Code, for
persons in the Government service employed intermittently. Ten
such experts or consultants may be employed for periods not in
excess of three years.
TITLE V-GENERAL ACCOUNTING OFFICE BUILDING
SEC. 501. (a) The Comptroller General of the United States shall
be entitled to the use of such space in the General Accounting Office
Building as he determines to be necessary, and the head of any
Federal agency which exercises authority over such building shall
provide the Comptroller General with such space within the building
as the Comptroller General determines to be necessary.
(b) Notwithstanding any other provision of law, during the one-
year period beginning on the date of enactment of this Act, the
Administrator for General Services may contract for the rent of a
building in the District of Columbia to the extent necessary to secure
an amount of space equal to the amount of space which the Adminis-
H. R. 12113-4
trator makes available to the Comptroller General of the United
States during such one-year period under the provisions of subsection
(a).
TITLE VI-AUDITS OF GOVERNMENT CORPORATIONS
AMENDMENTS TO THE GOVERNMENT CORPORATION CONTROL ACT
SEC. 601. (a) Section 105 of the Government Corporation Control
Act (31 U.S.C. 850) is amended by adding thereto the following
sentence: "Effective July 1, 1974, each wholly owned Government
corporation shall be audited at least once in every three years.".
(b) The first sentence of section 106 of such Act (31 U.S.C. 851)
is amended to read as follows: "A report of each audit conducted under
section 105 shall be made by the Comptroller General to the Congress
not later than six and one-half months following the close of the
last year covered by such audit.".
(c) Section 202 of such Act (31 U.S.C. 857) is amended by adding
thereto the following sentence: "Effective July 1, 1974, each mixed-
ownership Government corporation shall be audited at least once in
every three years.".
(d) The first sentence of section 203 of such Act (31 U.S.C. 858)
is amended to read as follows: "A report of each audit conducted
under section 202 shall be made by the Comptroller General to the
Congress not later than six and one-half months following the close
of the last year covered by such audit.".
AMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT
SEC. 602. (a) Section (b) of the Federal Deposit Insurance Act
(12 U.S.C. 1827 (b)) is amended by adding thereto the following
sentence: "The Corporation shall be audited at least once in every
three years.".
(b) The first and second sentences of section 17 (c) of such Act (12
U.S.C. 1827 are deleted and the following is inserted in their
place: "A report of each audit conducted under subsection (b) of this
section shall be made by the Comptroller General to the Congress not
later than six and one-half months following the close of the last year
covered by such audit."
AMENDMENT TO FEDERAL CROP INSURANCE ACT
SEC. 603. Section 513 of the Federal Crop Insurance Act (52 Stat.
76; 7 U.S.C. 1513) is amended to read as follows: "The Corporation
shall at all times maintain complete and accurate books of accounts and
shall file annually with the Secretary of Agriculture a complete report
as to the business of the Corporation.".
AMENDMENTS TO THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968
SEC. 604. Section 107 (g) of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701y(g)) is amended by:
(1) adding a new sentence at the end of subparagraph (1)
thereof as follows: "Such audit shall be made at least once in
every three years.".
(2) substituting the following sentence in lieu of the first sen-
tence in subparagraph (2) thereof: "A report of each such audit
shall be made by the Comptroller General to the Congress not
later than six and one-half months following the close of the last
year covered by such audit.".
H. R. 12113-5
AMENDMENT TO DISTRICT OF COLUMBIA REDEVELOPMENT ACT OF 1945
SEC. 605. Section 17 of the District of Columbia Redevelopment
Act of 1945 (60 Stat. 801) is amended by deleting the word "annual"
from the clause "such books shall be subject to annual audit by the
General Accounting Office.".
TITLE VII-REVISION OF ANNUAL AUDIT
REQUIREMENTS
AMENDMENT TO FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES
ACT OF 1949
SEC. 701. Section 109(e) of the Federal Property and Administra-
tive Services Act of 1949 (40 U.S.C. (e)) is amended to read as
follows:
"(e) (1) As of June 30 of each year, there shall be covered into the
United States Treasury as miscellaneous receipts any surplus in the
General Supply Fund, all assets, liabilities, and prior losses con-
sidered, above the amounts transferred or appropriated to establish
and maintain said fund.
"(2) The Comptroller General shall make audits of the General
Supply Fund in accordance with the provisions of the Accounting and
Auditing Act of 1950 and make reports on the results thereof.".
AMENDMENT TO THE FEDERAL AVIATION ACT OF 1958
SEC. 702. That part of the second sentence of section 1307 (f) of
the Federal Aviation Act of 1958 (49 U.S.C. 1537(f)) which pre-
cedes the proviso is amended to read as follows: "The Secretary shall
maintain a set of accounts which shall be audited by the Comptroller
General in accordance with the provisions of the Accounting and
Auditing Act of 1950.".
AMENDMENT WITH RESPECT TO THE BUREAU OF ENGRAVING AND
PRINTING FUND
SEC. 703. Section 6 of the Act entitled "An Act to provide for financ-
ing the operations of the Bureau of Engraving and Printing, Treas-
ury Department, and for other purposes" (31 U.S.C. 181d) is amended
to read as follows: "The financial transactions, accounts, and reports
of the fund shall be audited by the Comptroller General in accord-
ance with the provisions of the Accounting and Auditing Act of 1950.".
AMENDMENT WITH RESPECT TO THE VETERANS' CANTEEN SERVICE
SEC. 704. Section 4207 of title 38, United States Code, is amended
to read as follows:
"§ 4207. Audit of accounts
"The Service shall maintain a set of accounts which shall be audited
by the Comptroller General in accordance with the provisions of
the Accounting and Auditing Act of 1950.".
AMENDMENT WITH RESPECT TO THE HIGHER EDUCATION INSURED LOAN
PROGRAM
Sec. 705. (a) Paragraph (2) of section 432(b) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1082(b) (2)) is amended to read as
follows:
H. R. 12113-6
"(2) maintain with respect to insurance under this part a
set of accounts, which shall be audited by the Comptroller Gen-
eral in accordance with the provisions of the Accounting and
Auditing Act of 1950, except that the transactions of the Com-
missioner, including the settlement of insurance claims and of
claims for payments pursuant to section 428, and transactions
related thereto and vouchers approved by the Commissioner in
connection with such transactions, shall be final and conclusive
upon all accounting and other officers of the Government.".
(b) Section 402 (a) (2) of the Housing Act of 1950 (64 Stat. 78; 12
U.S.C. 1749a (a) (2)) is amended to read as follows:
"(2) maintain a set, of accounts which shall be audited by the
Comptroller General in accordance with the provisions of the
Accounting and Auditing Act of 1950: Provided, That such finan-
cial transactions of the Administrator as the making of loans and
vouchers approved by the Administrator in connection with such
financial transactions shall be final and conclusive upon all officers
of the Government.".
AMENDMENT TO THE FEDERAL CREDIT UNION ACT
SEC. 706. Section 209 (b) (2) of the Federal Credit Union Act as
added by section 1 of Public Law 91-468 (12 U.S.C. 1789 (b) (2)) is
amended by deleting the word "annually" therefrom.
AMENDMENT WITH RESPECT TO AUDIT OF THE GOVERNMENT PRINTING
OFFICE
SEC. 707. The third sentence of subsection 309 (c) of title 44 of the
United States Code is amended to read as follows: "The Comptroller
General shall audit the activities of the Government Printing Office
at least once in every three years and shall furnish reports of such
audits to the Congress and the Public Printer.".
TITLE VII-LIMITATION OF TIME ON CLAIMS AND
DEMANDS
SEC. 801. Section 1 of the Act of October 9, 1940 (54 Stat. 1061,
ch. 788), is amended by deleting the phrase "10 full years" and sub-
stituting "6 years" therefor.
SEC. 802. The amendment provided for in section 801 shall go into
effect 6 months after the date of enactment and will have no effect on
claims received in the General Accounting Office before that time.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
December 24, 1974
Dear Mr. Director:
The following bills were received at the White House on December 24th:
S.J. Res. 40
B. 3481
H.R. 8958
H.R. 14600
S.J. Res. 133
S. 3548
M.R. 8981
H.R. 14689
S.J. Res. 262
8. 3934
H.R. 9182
H.R. 14718
S. 251
8. 3943
H.R. 9199
H.R. 15173
S. 356
S. 3976
H.R. 9588
H.R. 15223
S. 521
S. 4073
H.R. 9654
H.R. 15229
S. 544
S. 4206
M.R. 10212
H.R. 15322
S. 663
H.J. Res. 1178
H.R. 10701
K.R. 15977
S. 754
H.J. Res. 1180
H.R. 10710
H.R. 16045
S. 1017
K.R. 421
H.R. 10827
H.R. 16215
S. 1083
M.R. 1715
H.R. 11144
H.R. 16596
vs. 1296
K.R. 1820
H.R. 11273
E.R. 16925
S. 1418
H.R. 2208
M.R. 11796
MH.R. 17010
S. 2149
H.R. 2933
M.R. 11802
H.R. 17045
8. 2446
H.R. 3203
H.R. 11847
M.R. 17085
S. 2807
H.R. 3339
H.R. 11897
H.R. 17468
S. 2854
M.R. 5264
H.R. 12044
H.R. 17558
S. 2888
H.R. 5463
H.R. 12113
H.R. 17597
S. 2994
H.R. 5773
H.R. 12427
H.R. 17628
S. 3022
H.R. 7599
H.R. 12884
H.R. 17655
S. 3289
H.R. 7684
H.R. 13022
S. 3358
H.R. 7767
H.R. 13296
S. 3359
H.R. 8214
H.R. 13869
S. 3394
H.R. 8322
H.R. 14449
S. 3433
H.R. 8591
H.R. 14461
Please let the President have reports and recommendations as to the
approval of these bills as soon as possible.
Sincerely,
Robert D. Linder
Chief Executive Clerk
The Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, D. C.