A BILL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100010002-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 9, 2016
• Document Release Date: August 25, 2000
• Sequence Number: 2
• Publication Date: June 19, 1956
• Content Type: OPEN

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84TH CONGRESS
2D SESSION
Calendar Na 2286
S. 3897
[Report No. 2265]
IN THE SENATE OF THE UNITED STATES
MAY 21 (legislative day, MAY 7), 1956
Mr. KENNEDY (for himself, Mr. PAYNE, Mr. BYRD, Mr. BRIDGES, Mr. MCCLELLAN,
Mr. JACKSON, Mr. HUMPHREY, Mr. MCCARTHY, Mr. MUNDT, Mrs. SMITH of
Maine, Mr. BENDER, Mr. MARTIN of Iowa, Mr. WELKER, Mr. CHAVEZ, Mr.
HRUSKA, Mr. BUSH, Mr. FLANDERS, Mr. IVES, Mr. THYE, Mr. MAGNUSON,
Mr. SALTONSTALL, Mr. BUTLER, Mr. MARTIN of Pennsylvania, Mr. DIRKSEN,
Mr. BENNETr, Mr. CURTIS, Mr. SMITH of New Jersey, Mr. BEALL, Mr.
MANSFIELD, Mr. CASE Of South Dakota, Mr. LANGER, and Mr. BARRETT)
introduced the following bill ; which was read twice and referred to the
Committee on Government Operations
JUNE 19,1956
Reported by Mr. KENNEDY, without amendment
A BILL
To improve governmental budgeting and accounting methods
and procedures, and for other purposes.
1 " Be it enacted by the Senate and House of Representa-
2 tines of the United States of America in Congress assembled,
3 AMENDMENT TO THE BUDGET AND ACCOUNTING ACT, .19 21
4 SEC. 1. (a) Section 201 of the Budget and Accounting
5 Act, 1921, as amended (31 U. S. C. 11) ; is' uffther amended
6 by inserthi a after the words "SEC. g " ( ) " c. 201." ; by chang-
ing subsection (a) to subparagraph '(1) by adding after
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1 subparagraph (1) a: new subparagraph " (2) at such times
2 as may be practicable, information on program costs and
3 accomplishments" ; by changing subsections (b) through
4 (j) to subparagraphs (3) through (11.), respectively; and
5 by adding the following new subsections :
6 " (b) The amounts of proposed appropriations referred
7 to in sections 201 (a) and 203 of this Act shall, to the
8 maximum extent deemed desirable and practicable by the
9 President, be determined on an annual accrued expenditure
10 basis.
11 " 'Annual accrued expenditures' shall relate to goods
12 and services to be received in a fiscal year, advance pay-
13 ments, progress payments, and such other payments as are
14 authorized by law to be made in such fiscal year.
15 "This subsection shall not apply to appropriations made
16 specifically for the payment of claims certified by the Comp-
17 troller General and of judgments; appropriations for the re-
18 fund of Federal taxes and of other moneys erroneously
19 received and covered into. the Treasury of the United States;
20 appropriations made by private relief Acts. of Congress;
21 appropriations for the payment of interest on, trust funds;
22 revolving funds or appropriations thereto; appropriations for
23 the, payment to, former members of the. Armed. forces, their
24 dependents and beneficiaries, of any benefits to. which they
25 are entitled by reason of military service; appropriations for
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1. the payment of pensions and annuities; appropriations for
2 the payment of any obligation of the United States for which
3 liability is fixed by treaty; and other appropriations or funds
4. analogous to the foregoing.
5 " (c) The conversion to the use of annual accrued ex-
6 penditures for stating proposed appropriations in accordance
7 with section 201 (b) of this Act shall be accomplished in
8 such manner and at such times as may be determined by
9 the President.
10 " (d) As of the end of each fiscal year, the excess of
11 any appropriation or fund made on an annual accrued ex-
12 penditure basis over the accrued expenditures under such
13 appropriation or fund shall lapse, unless hereafter provided
14 otherwise in an appropriation Act or other law. Any re-
15 maining balances of each such appropriation or fund shall
16 be merged with any appropriation or fund made for the, same
17 general purpose for the ensuing fiscal year and shall constitute
18 a single account."
19 (b) Section 216 of such Act, as amended (31 U. S. C.
25
24) , is further amended by inserting " (a) " after the words
"SEC. 216." and by adding the following new subsections :
" (b) The requests of the departments and establish-
ments for appropriations shall, in such manner and at such
times. as may be determined by the President, be developed
from cost-based budgets.
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" (c) For purposes of administration and operation, such
2 cost-based budgets shall be used by all departments and
3 establishments and their subordinate units. Administrative
4 subdivisions of appropriations or funds shall be made on the
5 basis of such cost-based budgets."
6 AMENDMENTS TO ME BUDGET AND ACCOUNTING
7 PROCEDURES ACT OF 1950
SEC. 2. (a) The Budget and Accounting Procedures
9 Act of 1950 is amended by inserting after section 105
1-0 thereof the following new section:
11 "ACCOUNTING .AND BUDGET CLASSIFICATIONS
12 "SEC. 106. The head of each executive agency 'shall,
13 in consultation with the Director of the Bureau of the
22,
Budget, take whatever action may be necessary to achieve,
insofar as is possible, (1) consistency in accounting and
budget classif cations, (2) synchronization between account-
ing and budget classifications and organizational structure,
and (3) support of the budget justifications by information
on performance and program costs by organizational units."
(b) Section 113 of such Act (31 U. S. ~C. 66a) is
amended by adding at the end thereof the following new
subsection:
(c) As soon as practicable after the date of enact-
merit of this subsection, the head of each executive agency
25 shall, in accordance with principles and standards prescribed
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1 by the Comptroller General, cause the accounts of such
2 agency to be maintained on an accrual basis to show the
3 resources, liabilities, and costs of operations of such agency
with a view to facilitating the preparation of cost-based
budgets as required by section 216 of the Budget and
Accounting Act, 192 1, as amended. The accounting system
required by this subsection shall include adequate monetary
8 property accounting records as an integral part of the
9 system."
10 (c) Section 118 of such Act is amended by inserting
11 "113 (c) " after the words "section 111".
SIMPLIFICATION OF SYSTEM FOR SUBDIVIDING FUNDS
13 SEC. 3. Section 3679 (g) , Revised Statutes, as amended
14 (31 U. S. C. 665 (g) ), is further amended by adding at the
end thereof the following sentence : "In order to have a
simplified system for the administrative subdivision of appro-
priations or funds, each agency shall work toward the
objective of financing each operating unit, at the highest
practical level, from not more than one administrative sub-
division for each appropriation or fund affecting such unit."
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