A BILL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100010009-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 9, 2016
• Document Release Date: August 25, 2000
• Sequence Number: 9
• Publication Date: May 21, 1956
• Content Type: OPEN

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84TH CONGRESS
2D SESSION
S. 3897
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. MCCI,EL],AN,
Mr. JACKSON, Mr. JTUMV[PIIREY, Mr. MCCARTHY, Mr. MUNDT, Mrs. S~TI'CH Of
Maine, Mr. BENDER, Mr. MARTIN Of Iowa, Mr. WELKER, Mr. CHAN rz, Mr.
HRUSTA, Mr. Buses, M'Tr. FLANDERS, Mr. IvEs, Mr. THYE, Mr. MAGNUSON,
Mr. SALTONSTALL, Mr. BUTLER, Mr. MARTIN of Pem.isylvania, Mr. DiRI{SEN,
Mr. BENNETT, Mr. CURTIS, 1-Ir. of New Jersey, Mr. BEALL, 112x.
MANSFIELD, Mr. CASE Of South Dakota, Mr. LANGER, and Mr. B.%RRETT)
introduced the followiiig bill; which was read twice and referred to the
Committee on Government Operations
A BILL
To improve governmental budgeting and accounting methods
and procedures, and for for other purposes.
1 Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
3 AMENDMENTS TO THE BUDGET AND ACCOUNTING ACT, 1921
4 SEC. 1. (a) Section 201 of the Budget and Accounting
5 Act, 1921, as amended (31 U. S. C. 11) , is further amended
6 by inserting " (a) " after the words "SEC. 201."; by chang-
7 ing subsection (a) to subparagraph (1) ; by adding after
I
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1 subparagraph (1) a new subparagraph " (2) at such times
2 as may be practicable, information on program costs and ac-
3 complishments" ; by changing subsections (b) through (j)
4 to subparagraphs (3) through (11), respectively; and by
5 adding the following new subsections :
6 "(b) The amounts of proposed appropriations referred
7 to in ?;eetions 201 (a) and 203 of this Act shall, to the maxi-
8 mum extent deemed desirable and practicable by the Presi-
9 dent, be determined on an annual accrued expenditure basis.
10 " `Annual accrued expenditures' shall relate to goods and
11 services to be received in a fiscal year, advance payments,
12 progress payments, and such other payments as are author-
13 ized by law to be made in such fiscal year.
14 "This subsection shall not apply to appropriations made
15 specifically for the payment of claims certified by the Comp-
16 troller General and of judgments; appropriations for the re-
17 fund of Federal taxes and of other moneys erroneously
18 received and covered into the Treasury of the United States;
19 appropriations made by private relief Acts of Congress;
20 appropriations for the payment of interest on trust funds;
21 revolving funds or appropriations thereto; appropriations for
22 the payment to former members of the Aimed Forces, their
23 dependents and beneficiaries, of any benefits to which they
24 are entitled by reason of military service; appropriations for
25 the payment of pensions and annuities; appropriations for
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1 the payment of any obligation of the United States for which
2 liability is fixed by treaty; and other appropriations or funds
3 analogous to the foregoing.
4 " (c) The conversion to the use of annual accrued ex-
5 penditures for stating proposed appropriations in accordance
6 with section 201 (b) of this Act shall be accomplished in
7 such manner and at such times as may be determined by
8 the President.
9 " (d) As of the end of each fiscal year, the excess of
10 any appropriation or fund made on an annual accrued ex-
11 penditure basis over the accrued expenditures under such
12 appropriation or fund shall lapse, unless hereafter provided
13 otherwise in an appropriation Act or other law. Any re=
14 maining balances of each such appropriation or fund shall,
15 be merged with any appropriation or fund made for the. same
16 general purpose for the ensuing fiscal year and shall constitute
17 a single account."
18 (b) Section 216 of such Act, as amended (31 TT. S. C.
19 24) , is further amended by inserting " (a) after the word-
20 , " SEo. 216." and by adding the following new. subsections :
21 " (b) The requests of the departments and establih-
22 ments for appropriations shall. in such manner and at such
23 _ times-as may be determined by the President, be developed
_24 from cost-based budgets.
25
" (c) For purposes of administration and operation, such
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1 cost-based budgets shall be used by all departments and
2 establishments and their subordinate units. Administrative
3 subdivisions of appropriations or funds shall be made on the
4 basis of such cost-based budgets."
10
11
9 thereof the following new section :
8 Act of 1950 is amended by inserting after section 105
AMENDMENTS TO T EIE BUDGET AND ACCOUNTING
PItOCED17RES ACT OF 1950
SEC. 2. (a) The Budget and Accounting Procedures
"ACCOUNTING AND BT-DGET CLASSIFICATIONS
"SEC. 106. The head of each executive agency shall,
12 in consultation with the Director of the Bureau of the
13
Budget, take whatever action may be necessary to achieve,
14 insofar as is possible, (1) consistency in accounting and
16
budget classifications, (2) synchronization between account-
ing and budget classifications and organizational structure,
and (3) support of the budget justifications by information
on perforinance and program costs by organizational units."
(h) Section 113 of such Act (31 V. S. C. 66a) Is
20 . alniended by ' adding at the end thereof the following new
-21 subsection:
" (c) As soon as practicable after the date of enact-
23 meat of this subsection, the head of each executive agency
24 shall, in accordance with principles and standards prescribed
25 by the Comptroller General, cause the accounts of such
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1 agency to be maintained on an accrual basis to show the
2 resources, liabilities, and costs of operations of such agency
3 with a view to facilitating the preparation of cost-based
4 budgets as required by section 216 of the Budget and
5 Accounting Act, 1921, as amended. The accounting system
6 required by this subsection shall include adequate monetary
7 property accounting records as an integral part of the
8 system."
9 (c) Section 118 of such Act is amended by inserting
10 "113 (c) " after the words "section 111".
11 SIMPLIFICATION OF SYSTEM FOR SUBDIVIDING FU NDS
14
SEC. 3. Section 3679 (9), Revised Statutes, as amended
(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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