S. 3199

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100010012-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 9, 2016
• Document Release Date: August 25, 2000
• Sequence Number: 12
• Publication Date: February 14, 1956
• Content Type: REGULATION

Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
84TH CONGRESS
2D SESSION
S. 3199
IN THE SENATE OF THE UNITED STATES
FEBRUARY 14, 1056
Mr. PAYNE (for himself, Mr. BEALL, Mr. BENDER, Mr. BENNETT, Mr. BUsir, Mr.
BUTLER, Mr. CASE of South Dakota, Mr. CHAVEZ, Mr. CURTIS, Mr. DIRKSEN,
Mr. FLANDERS, Mr. IIRUSKA, Mr. IVES, Mr. LANGER, Mr. MAGNUSON, Mr.
MANSFIELD, Mr. MARTIN of Pennsylvania, Mr. SALTONSTALL, Mr. SMITH Of
New Jersey, Mrs. SMITH of Maine, Mr. TUYE, and Mr. WELKER) introduced
the following 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 other purposes.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 AMENDMENTS TO THE BUDGET AND ACCOUNTING ACT, 1.9 21
4 SECTION 1. (a) Section 213 of the Budget and Account-
5 ing Act, 1921, as amended (31 U. S. C. 21), is amended by
6 adding at the end thereof the following : "The Director shall
7 utilize information obtained under this section, among other
8 purposes, to prepare comprehensive reports, other than purely
9 fiscal reports, showing the financial results of the activities of
Approves For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
 Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
t
1 the departments and establishments. Such reports shall be
2 prepared on a fiscal year basis, or at such shorter intervals
3 as the Director may deem practicable, and shall be trans-
4 witted to the President and to the Congress."
5 (b) Section 216 of such Act, as amended (31 U. S. C.
6 24), is amended to read as follows :
7 "SEc. 216. (a) For purposes of administration and oper-
8 ation, cost-based budgets shall be used by all departments
9 and establishments and their subordinate units. Fund allo-
10 cations within the departments and establishments shall be
11 made on the basis of such cost budgets.
12 " (b) Subordinate operating units within a department
13 or establishment shall submit quarterly performance reports
14 to the head of such department or establishment, and the
15 head of each department or establishment shall submit a re-
16 port to the bureau, not later than September 30 of each year,
17 on the conduct of its operations in the preceding fiscal year.
18 The bureau shall, on the basis of such reports, submit an
19 annual performance report to the President for all the de-
20 partments and establishments.
21 " (c) Requests for regular, supplemental., or deficiency
22 appropriations which are submitted to the bureau by the
23 head of any department or establishment shall be prepared
24 on a cost basis and shall include such data and be submit-
Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
 Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
3
1 ted in such manner as the President may determine in ac-
2 cordance with the provisions of section 201 of this Act.
3 " (d) The Budget, required by section 201 of this Act to
4 be transmitted to the Congress, shall contain information on
5 program costs and accomplishments, and a review of per-
6 formance by organizational units whenever such units do not
7 coincide with performance budget classifications."
8 (c) Title II of such Act, as amended, is amended by
9 adding at the end thereof a new section as follows :
10 "SEC. 218. The director, under such rules and regula-
11 tions as the President may prescribe, shall designate and
12 assign qualified personnel of the bureau to-serve in the prin-
13 cipal departments and establishments, as determined by the
14 President, for the purpose of maintaining a continuous re-
15 view by the bureau of budget preparation and administra-
16 tion within any such department or establishment, and to
17, further assist the bureau in carrying out its managerial func-
18 tions and responsibilities. Not more than two persons for
19 each principal subdivision of a department or establishment
20 shall be assigned by the director to any one department or
21 establishment, and, insofar as practicable, persons so as-
22 signed to any department or establishment shall possess the
23 combined skills of the statistician, cost accountant, adminis-
24 trative expert, and program analyst. No such person shall
Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
 Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
21
24
4
]! be so assigned to any department or establishment for more
2 than two consecutive years."
3 AMENDMENTS TO TIIE BUDGET AND ACCOUNTING
4 PROCEDURES ACT OF 1.950
5 SiFc. 2. (a) Section 104 of the Budget and Accounting
6 Procedures Act of 1950 (31 U. S. C. 1Sa) is amended
7 by adding at the end thereof a new sentence as follows :
"Each. executive agency of the Government shall, under
the general supervision of the Director of the Bureau of the
Budget, take whatever action may be necessary to achieve,
insofar as is possible, consistency in its organizational
structure, budget classifications, and accounting systems."
(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 enactment
of this subsection, the head of each executive agency shall,
in accordance with standards prescribed by the Comptroller
General, cause the accounts of such agency to be maintained
on art accrual basis to show currently, completely, and
clearly the resources, liabilities, and costs of operations of
such agency with a view to facilitating the preparation of
cost based budgets and agency reports as required by section
216 of the Budget and Accounting Act, 1921. The account-
Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
 Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
5
1 ing system required by tins SUbsectiol~ shall include nde((ua e
2 monetary property accounting records as all integral Pa"t
3 of the system."
4 (c) Such Act is further aanencied by adding after
5 section 119 thereof the following new sections :
6 "STAI'N' OFFICE OF ACCOUNTING
7 "SEC. 120. (a) There is hereby established in the
8 Bureau of the Budget, under the supervision of the Director
9 thereof, a Staff Oflic.e of ,Accounting, the bead of which shall
10 be the Assistant Director of ~A (counting, to he appointed by
11 the President, and to receive compensation at the rate of
12 $ per annum.
13 " (b) It shall be the duty of the Assistant Director for
14 Accounting-
15 " (1) to develop and promulgate an overall plan
16 for accounting and reporting by the various executive
17 agencies which is consistent with the principles, titand-
18 aids, and related requirements prescribed by the Comp-
19 troller General of the United States pursuant to section
20 11.2 of this part;
21 " (2) to expedite, guide, and assist in the introduc-
.22 tion of modern accounting methods in the executive
23 agencies which are consistent with such overall plan;
5.3199 2
Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
 Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
6
1 " (3) to set reasonable and definite schedules for
2, the performance of the functions of such agencies and
3 to watch and report on their progress ;
4 " (4) to stimulate the building of competent ac-
5 counting and auditing organizations in such agencies
6 and to assist actively in the selection, training, and
7 retention of capable personnel; and
8 " (5) to report to the Director of the Bureau of
9 the Budget at least once each year, and at such other
10 times as the Director may require, with respect to the
11 status of accounting in each of the executive agencies.
12 "COMP_CROLLERS FOR EXECUTLV.E AGENCIES
13 "SEC. 1.21. (a) The head of each executive agency is
14 authorized and directed, with the advice of the Assistant
15 Director for Accounting, to provide for the appointment of
1-6 a. Comptroller who shall he directly responsible to him, and
1-7 who shall have the following functions and duties--
18 " (1) to supervise and direct the setting up and
19 maintenance in such agency of adequate accounting and
20 auditing systems and procedures in conformity with the
21 overall plan prescribed by the Assistant Director for
22 A cconmting pursuant to section `1.20 hereof ;
2:~ " (2) to direct the recruitment, training, and
24 development of qualified accounting personnel for such.
25 agency;
Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
 Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
7
1 " (3) to develop and be responsible for reliable and
2 informative financial reports for internal management
3 purposes and for submission to the Congress and the
4 various executive agencies;
5 " (4) to interpret and advise upon significant as-
6 pects of the financial reports of the agency; and
7 " (5) to direct the preparation of budgets at oper-
8 ating levels for the information of the head of the
9 agency' or othra? of]i(?iii1s respOnSii)le for budlgct policies
10 in such agency, and to review the execution of such
11 budgets."
12 SIMPLIFICATION OF ALLOTMENT SYSTEM FOR
13 ALLOt)ATIN(: FUNDS
1.4 Si,c. 3. It, is the intent of the Congress that each
executive agency, as defined in section 118 of the Budget
and Recounting Procedures Act of -1950, shall take what-
ever steps are necessary toy simplify the allotment system
for allocating funds to operating units within such agency,
19 t,nd in making such simplification each agency shall work
20 toward the objective of financing each operating unit, at
21 . the highest practical level, from not more than one allot-
22 ment for each appropriation affecting such unit.
23 SINGLE A(ENCY AC(`OUNTS
24 SEC. 4. (a) Each executive agency, as defined in
25 section 118 of the Budget and Accounting Procedures
Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
 Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
8
Act of 1950, shall, in accordance with principles and stand-
ards prescribed by the Comptroller General, maintain a
single account under each appropriation title or fund.
(b) This section shall take effect on the first day of the
5 first fiscal year commencing after the date of enactment of
6 this Act.
7 JOINT STTXI)Y BY BUREAU OF BTTDCxPj'P
8
ACCOUNTING OFFICE
9 SI+;C. 5. (a) The Director of the Berea r of the Budget
10 and the Comptroller General shall jointly undertake a study
I1 and investigation to determine-
12 (1) what steps can be taken to eliminate (A)
13 duplicate accounts within the Treasury Department, and
14 (B) duplicate accounting as between the Treasury De-
15 pa.rtment and the other departments and agencies of the
16 Government ; and
17 (2) the adequacy of internal auditing in the execu-
18 five departments and agencies of the Government.
19 (b) The Director of the Bureau of the Budget and the
200 Comptrollers General shall report the results of their study
21 and investigation together with such recommendations .as
22 they deem appropriate, to the Congress not later than two
years after the date of enactment of this Act.
Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
 Approved For Release 2001/03/01: CIA-RDP59-00224A000100010012-1
Approved For Release 2001/03/01: CIA-RDP59-00224A000.100010012-1