RELATIONSHIP BETWEEN GAO AND GSA UNDER FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP57-00384R001000040030-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 9, 2016
• Document Release Date: September 25, 2000
• Sequence Number: 30
• Publication Date: January 17, 1950
• Content Type: MEMO

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January 17, 1950
*GSA Declassification&Release Instructions In ERU File - No Referral To
GSA*
GENERAL SERVICES ADMINISTRATION
Washington
NID.'ITOR.A,NDUM TO HEADS OF DEPARTMENTS
AATD INDEPENDENT ES TABLISH14ENTS
Relationship Between GAO and GSA under Federal Property and
Administrative Services Act of 1949
Attached is a copy of the "Memorandum of Working Relation-
ships between General Accounting Office and General Services Ad-
ministration", executed by the Comptroller General and the
Administrator of General Services on January 17, 1950. This
memorandum sets forth the manner in which the General Accounting
Office and the General Services Administration will. discharge
their respective interrelated responsibilities under the Federal
Property and Administrative Services Act of 1949.
Additional copies of the attached memorandum may be obtained
by calling Executive 4900 (code line 1227) extension 4360.
(S) JESS LARSON
JESS LARSON
STATINTL L. M. hoson
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MEMORANDUM REGARDING WORKING RELATIONSHIPS
BETWEEN GENERAL ACCOUNTING OFFICE AND
GENERAL SERVICES ADMINISTRATION
This memorandum outlines the general approach to be made in
respect to the exercise of the responsibilities of the General
Services Administration and the General Accounting Office under the
Federal Property and Administrative Services Act of 1949 (Public Law
1520 81st Congress). It is based on preliminary discussions between
representatives of the Administrator, General Services Administration,
and of the Comptroller General, and is not designed to abrogate or
change their legal responsibilities under Public Law 152, 81st Con-
gress, but to provide an initial foundation for the more effective
and harmonious discharge of the respective functions of the two
agencies under that Law in terms of their interrelationships,
General Principles
The working relationships between the two agencies will be
based on the following general principles:
1, The property accounting responsibilities of the
General Accounting Office will be discharged as a part of the
broad joint accounting improvement program which is underway.
The basic approach of this program to the over-all accounting
problems of the Government will be applied to the property ac-
counting phases by providing ample flexibility for the executive
agencies to develop and mold systems to fit their individual
needs, by prescribing accounting requirements with respect to
both property and other phases of the accounting program prin-
cipally in terms of principles and standards, and by assisting
and guiding the agencies in the development of the systems in
conformity with such principles and standards. The General
Accounting Office will afford maximum consideration to the
primary management and operational interests in connection with
the over-all accounting work being done with the agencies. Con-
sideration also will be given to providing such financial data
as is needed for central accounting and reporting in the
Government.
2, Full recognition will be given to the performance
budget and other budgetary, management, accounting and finan-
cial reporting objectives and policies of the Joint Accounting
Program of the General Accounting Office, the Bureau of the
Budget and the Treasury Department and of the joint property
study report entitled "A Federal Inventory Control System."
In accordance with the intent, understanding'and terms of the
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Joint Accounting Program, the Treasury Department and the Bureau
of the Budget will participate.with the General Accounting
Office and the General Services Administration to the extent of
their responsibilities and interests in the various areas en-
compassed in this memorandum,
30 The General Services Administration will participate
and cooperate with the General Accounting Office, from the
standpoint of its property management and operational interests,
in the development of property accounting principles and
standards, in the development of property accounting phases of
the over-all agency accounting systems, and in the making of
surveys of the accounting requirements of such agencies, in-
cluding property accounting needs,
40 The General Services Administration recognizes that
policy decisions relating to property management and opera-
tional phases normally have accounting and auditing implications
and, in arriving at such policy determination, will give full
consideration to these implications and accounting and audit
requirements under Public Law 152 as well as previously exist-
ing laws.
It will be the joint policy of the General Services Administra-
tion and the General Accounting Office to have their representatives
keep each other fully advised with regard to all action taken, or to
be taken, within the respective jurisdictions under Public Law 152
not only in those areas in which cooperative development is prescribed
by the Act, but in all cases where the matter affects or may affect
management and operational interests on the one hand, or accounting
and audit responsibilities on the other,
Accounting Responsibilities
Under the broad program to improve Governmental accounting, the
individual executive agencies are primarily responsible for the
development and maintenance of over-all agency accounting systems to
fit their needs, and this primary responsibility includes the
development and integration of property accounting phases with such
over-all agency accounting systems, consistent with the principles,
standards and basic requirements which are evolved under the joint
accounting improvement program,
The General Accounting Office will assist and cooperate with
the individual executive agencies in the development of property
accounting as an. integral part of their over-all accounting systems,
under the general accounting improvement program, and in accordance
with Public Law 152 and its primary responsibility for accounting
matters generally under previously existing laws,
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The General Services Administration will participate, in co-
operation with the General Accounting Office, in the development of
individual agency accounting systems with reference to the property
accounting phases of such systems,, as a basic requisite to the
effective discharge of the over-all property management responsibili-
ties of the Administration.
The responsibility of executive agencies to develop and maintain
property accounting as an integral part of their over-all accounting
systems includes the requirement that appropriate accounting control
be exercised over all property transactions and inventories. Under-
lying property records constitute subsidiary and supporting accounting
records and the adequacy and integrity of the over-all accounting
systems is largely dependent upon the accuracy and efficiency with
which such underlying records are maintained and their integration
with the general accounting system. Maximum consideration will be
given to the over-all property management responsibilities and the
primary purpose of underlying property records as an efficient and
economical management tool in integrating these records with the
general accounting systems. Management policies in respect to all
property transactions such as receipt, issue, use, transfer and dis-
posal require an. effective control of property and, therefore, ac-
counting and management policies must be developed hand in hand.
Property accounting systems will be submitted to the Comptroller
General for approval upon completion of development or at various
appropriate developmental stages, and recommendations of the Adminis-
trator, General Services Administration, will be ascertained by the
Comptroller General prior to approval.
Sys ms Examinations, Internal Control and Audits
Reports upon examinations by the General Accounting Office of
accounting systems as they relate to property will be furnished the
General Services Administration and necessary corrective action will
be coordinated as in the case of the development of such systems.
Systems examinations will be made to the fullest extent practicable
as part of the audits of property accounts and transactions by the
General Accounting Office. The scope and extent of property audits
will be correlated with the degree of internal controls exercised
and the adequacy and effectiveness of internal audits performed by
the respective agencies, and copies of any audit reports will be fur-
nished the General Services Administration.. Where property audits
are made as a part of comprehensive audits of executive agencies,
property audit data relevant to the responsibilities imposed on the
General Services Administration under the Act will be furnished the
General Services Administration.
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The establishment and maintenance of internal controls and
performance of internal property audits in General Services Adminis-
tration which will be satisfactory from an accounting standpoint, as
well as from the operational standpoint, will be stressed, and the
General Accounting Office will furnish all possible assistance in the
development of such internal controls and audits.
Forms Relating to Property
Forms relating to property. procurement, utilization and disposal,
insofar as concerns the mutual interests of the General Services
Administration and the General.Aecounting Office under Public Law 152,
fall into the following general.. categories:
a. Forms designed solely for operational purposes and
serving no accounting purpose? or being so. remotely related
thereto as to have no accounting significance.
be Forms serving a primary operational purpose which
likewise serve or can be made to. serve essential' accounting
purposeso
c. Forms designed solely for essential accounting pur-
poses and serving no operational purpose, or being so remotely
related thereto as to have no operational significance.
Forms falling within the first and last categories set out above
will be standardized to the extent found desirable and when so
standardized will be prescribed by the Administrator and the Comptroller
General, respectively. However, in order to assure complete coordina-
tion, representatives of the General Services Administration or the
General Accounting Office, as the case may be, will be kept currently
advised of all developments and furnished copies of all such forms
when prescribed. Representatives of the two agencies'will cooperate
with the executive agencies in the development of forms which serve,
or can be made to serve, both operational and accounting 'purposes.
Such forms will be standardized to the extent found desirable, and
where so standardized will be prescribed with the joint approval of
the Administrator and the Comptroller General.
Exchange of Regulations and Directives
As a specific means of keeping the General Accounting Office in-
formed of developments under the Act, copies of all Presidential
Orders, General Services Administration regulations and directives,
and changes in existing procedures, regulations and orders relating
to any of the agencies, bureaus or functions which have been or are
later transferred to or vested in the General Services Administration
will be furnished the General Accounting Office. Likewise, and in
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accordance with existing procedures, the General Accounting Office
will furnish the General Services Administration with copies of all
General Regulations, Accounting Systems Memoranda, and other pro-
cedural releases affecting their operations which will assist the
General Services Administration in the effective discharge of its
duties,
Revisions
Periodically, the provisions of this memorandum will be; reviewed
by the General Services Administration and the General Accounting
Office and modified, if necessary, in order to improve working rela-
tionships in the light of experience and thus further the objectives
of Public Law 152 and achievements thereunder.
(S) LINDSAY WARREN
Comptroller 14iieral
of the United States
(S) JESS LARSON
Administrator
General Services Administration
January 17, 1950
Date
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