BILLS RELATING TO THE GENERAL ACCOUNTING OFFICE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP77M00144R001100060005-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 141
• Document Creation Date: December 16, 2016
• Document Release Date: March 18, 2005
• Sequence Number: 5
• Publication Date: June 6, 1974
• Content Type: OPEN

Ap~ ~~~~~~~~G/~l~G~~Dii~~~~~~005-2
HEARINGS
SUBCOMMITTEE OF THE
COMMITTEE ON
(~OVERNDIENT OPERATIONS
HOUSE OF REPRESENTATIVES
NINETY-THIRD CONGRESS
H.R. 121,13
TO REVISE AND RESTATE CERTAIN FUNCTIONS AND
DUTIES OF THE COMPTROLLER GENERAL OF THE UNITED
STATES, AND FOR OTHER PURPOSES
H.R. 12181 ~_-
TO DIRECT THE COMPTROLLER GENERAL OF THE UNITED
STATES TO CONDUCT A STUDY OF THE BURDEN OF RE-
PORTING REQUIREMENTS OF FEDERAL REGULATORY PRO-
GRAMS O\T INDEPENDENT.' BUSINESS ES`1'ABLISHMENTS,
AND FOR OTHER PURPOSES
~ Cj
H.R. 14718 v OLD
TO DISCONTINUE OR MODIFY CERTAIN REPORTING
REQUIREMENTS OF LAW
U.S. GOVERNMENT PRINTING OFFICE
3b~46 O WASHINGTON :1974
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COMMITTEE ON GOVERNIiE\T OPER~ITIONS
CHET HOLIFIELD, California, Chatrmar~
JACK BROOKS, Texas FRANK NORTON, New York
L. H. FOUNTAIN, North Carolina JOHN N. ERLEDTBORN, Illinois
ROBERT E. JONES, Alabama JOHN W. WYDLETT, New York
.TOHN E. MOSS, California CLAAENCE J. BROWN, Ohio
DANTE B. FASCELL, Florida GUY VANDER JAGT, Michigan
HENRY S. REUSS, Wisconsin (}II,BERT GLIDE, Maryland
TORBERT H. MACDONALD, Massachusetts PAUL N. bicCLOSKEY, JR., California
WILLIAM S. MOORHEAD, Pennsylvania JOHN H. BUCHANAN, JR., Alabama
W3i. J. RANDALL, Diissouri SA';lf STEIGER, Arizona
BENJAMIN S. ROSENTHAL, New York CARRY BROWN, Michigan
JI>VS WRIGHT, Texas CHARLES THONE. Nebraska
FERNAND J. ST GERbiAIN, Rhode Island
JOHN C. CULVER, Iowa
FLOYD V. HICKS, .Washington
DON FUQUA, Florida
.JOHN CONYERS, JR., Dichigan
BILL ALE%ANDER, Arkansas
BELLA S. ABZUG, New York
HAROLD D. DONOHUE, Massachusetts
JAMES V. STANTON, Ohio
LEO J. RYAN, Californla
CARDISS COLLINS, Illinois
RICHARD W. MALLARY, Vermont
STANFORD E. PARRIS, Virginia
RALPH S. ftEGUL:1., Ohio
ANDREW J. HINSHAW, California
ALAN STEELbTAN, Texas
JOEL PRITCHARLi, Washington
ROBERT P. HANR.IHAN, Illinois
HERBERT ROBACK, YtaJJ Director
ELDSER W. HENDERBON, Gener?l CounaeZ
D'SILE9 Q. AODINEY, Counsel-Administrator
DOUGLAS G. DAHLIN, Associate Counsel
J. P. CARLBON, 3finority Counsel
WARREN B. BUFILER, kfinoritit Prolesaional u~t?,~
LEGISLATION AND MILITARY OPERATIONS SIJI'it'OMMITTEE
CHET HOLIFIELD, California, Chairman.
BENJAMIN S. ROSENTHAL, New York FRANK NORTON, New York
JIM WRIGHT, Texas JOHN N. ERLENB(1KN, Illinois
FERNAND J. ST GERbiAIN, Rhode Island JOHN W. WYDLER, New York
DON FUQUA, Florida CLARENCE J. BROWN, Ohio
WILLIAM S. MOORHEAD, Pennsylvania RICHARD W. MALLARY, Vermont
ROBERT E. JONES, Alabama
HERBERT ROBACK, Staff` Director
CHARLES GOODWIN, Counsel
bi1cIIAEr. McGINx, DeJenae Analvet
CATHERINE KUEBERLEIN, RBaeaYClL Anala/at
MARY ETTA HAaA, (clerk
WANDA C. JOHN8O1*, Clerk
MICHAEL A. VORHAII3, Clerical.4saiatant
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CONTENTS
Hearings held on-- race
June 5------------------------------------------------------- 85
June 6-------------------------------------------------------
Texts of H.R. 12113, H.R. 12181, and H.R. 14718_____________________ 3
Statement of-
Anthony, Col. William I3., Staff Judge Advocate, Air Force Account-
ing and Finance Center; accompanied by Heber Paul Wiemer,
Systems Accountant with the Deputy Assistant Comptroller of
the Air Force for Accounting and Finance_____________________ 79
Bingman, Charles F., Deputy Associate Director, Organization and
Special Studies, Office of Management and Budget_ _ _ _ _ _ _ _ _ _ _ _ 103
Fascell, Hon. Dante B., a Representative in Congress from the State 99
of Florida__________
Holifield, Hon. Chet, a Representative in Congress from the State of
California, and chairman, Legislation and Military Operations 1
Subcommittee: Opening statement_ _ _ _ _ _ _ _
Staats, Elmer B., Comptroller General of the United States; accom-
panied by Robert F. Keller, Deputy Comptroller General; Paul G.
Dembling, General Counsel; Phillip S. Hughes, Assistant Comp-
troller General; E. H. Morse Jr., Assistant Comptroller General;
T. E. Sullivan, Director, transportation and Claims Division;
William Conrardy, Director, Office of Program Planning; Cleris P.
Pin, Director, Office of Administrative Planning and Services;
Richard R. Pierson, Assistant General Counsel; Thomas F. William-
son, Senior Attorney; John Landicho, Associate Director, General
Government Division; Bertram H. Rosen, Assistant Director, Fi-
nancial anal General Management Studies Division; James Kar-
dokus, Supervisory Auditor, Financial and General Management
Studies Division; and Roger L. Sperry, Legislative Adviser, Office 30
of Congressional Relations_ _ _ _ _ _ _ _ _ _ _
Williford, Frederick L., director of government affairs, National
Federation of Independent Business; accompanied by John Motley, 110
legislative staff---------------------------------------------- 85
Yatron, Hon. Gus, a Representative in Congress from the State of
Pennsylvania____________
Zechman, Ronald E., Acting Associate Administrator, General Serv-
ices Administration; accompanied by Isaac E. Friedlander, Exec-
utive Director of the Public Buildings Service; John J. Lordan,
Director, Office of Financial Management Office of Federal Man-
agement Policy; and John Reutemann, ~irector Agency Trans-
portation Coordination Division, Federal Supply ~ervice_ _ _ _ _ _ _ _ _ 67
Letters, statements, et cetera, submitted for the record by-
Anthony, Col. William II., Staff Judge Advocate, Air Force Account-
ing and Finance Center: Sundry information relative to the hearings_ 82-84
Bingman, Charles F., Deputy Associate Director, Organization and
Special Studies, Office of Management and Budget:
Letter, dated July 15, 1974, to Chairman Holifield, re H.R.
12113, title III_____________ _ - 106-107
Letter, dated June 19, 1974, to Chairman Holifield, from Gov-
ernor Jaenke, Farm Credit Administration, re comments on
H.R.9091__________ __________________ 109-110
Fascell, Hon. Dante B., a Representative in Congress from the State
of Florida, statement__________________ --------------- 101-102
Friedlander, Isaac E., Executive Director of the Public Buildings
Service, General Services Administration: Exchange of corre-
spondence between Arthur F. Sampson and Elmer B. Staats, re 72-73
title V of the draft bill S. 2049-------------------------------
(III)
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Letters, statements, et cetera, submitted for the record by-Continued
Holifield, Hon. Chet, a Representative in Congress, from the State
of California, and chairman, Legislatian and Military Operations
Subcommittee: Letter, dated June 10, 1974, to Committee on
Government Operations, Subcommittee on Legislation and Mili-
tary Operations, from U.S. General Accounting Office Black
Caucus, Otha J. Miller president re H R 12113 T'tl II
i e
Audit of Transportation payments_ _~_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 55-57
McIntyre, Hon. Thomas J., a Senator in Congress from the State
of New Hampshire, statement_______________________________ 102-103
Staaes, Elmer B., Comptroller General of the United States:
Letter, with enclosure, dated June 21, 1974, to Chairman Holi-
field, from Comptroller General Staats, re Otha J. Miller's
letter of June 10, 1974, concerning title II of H,lt. 12113_ _ _ _ _ __ 57-67
Title III.-Audit of Nonappropriated Fund Actin ities_ _ _ _ _ _ _ _ _ _ _ 37-38
Title VIIL-Limitation of Time on Claims and Demands_ _ _ _ _ _ _ _ 38
Williford, Frederick L., director of government affairs, National
Federation of Independent Business, statement____ _ _ _ _ _ _ _ _ _ _ _ _ _ 114-119
Yatron, Hon. Gus, a Representative in Congress fram the State of
Pennsylvania: Sundry material relative to the hearings _ _ _ _ _ _ _ _ _ _ _ _ 89-94
APPENDIX
Other statements and correspondence relative to the hearins__ _ _ _ _ _ _ _ _ _ _ _ 125
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BILLS RELATING TO THE GENERAL ACCOUNTING
OFFICE
Ilousl: OF R,EPRE6ENTATIVES,
LEGISLATION AND MILITARY OPEILITIONS SUBCOMMITTEE
OF THE COMMIT'rF.E ON GOVERNMENT OPERATIONS,
Washington, D.C.
The subcommittee met, pursuant to recess, at 10 a..m., in room 2154,
Rayburn House Office Building, Hon. Chet Holifield (chairman of the
subcommittee) presiding.
Pi~sent : Representatives Chet Holifield and John W. Wydler.
.Also present : Herbert Roback, stafF director ; Charles Goodwin,
counsel; Warren Buhler, minority professional staff, Committee on
Government Operations.
Chairman IIOLIFiELD. The subcommittee will came to order.
OPENING STATEMEN'L' OI` CHAIRMAN CHET FIOLIFIELD
Today anal tomorrow the Subcommittee an Legislation and Military
Operations will hear the Comptroller General and other witnesses on
several bills relating to the audit functions of the General Accounting
Office and reporting requirements of the Federal Government.
These bills are as follows
H.R. 12113-To revise and restate. certain functions and duties of
the Comptroller General of the United States. This bill, requested by
the Comptroller General, would give the Comptroller General some
new audit responsibilities-as in the case of nonappropriated funds-
and remove others, either by transfer to the executive branch-as in
the case of transportation payment audits-or by decreasing the fre-
quency of audits from 1 year to 3 years.
H.R. 12181-To direct the Comptroller General of the United States
to conduct a study of the burden of re-parting requirements of Federal
regulatory programs on independent business establishments. 'T'his
bill, introduced by our colleague, Mr. Yatron, has numerous cosponsors
and reflects a problem of great concern and difficulty :How to balance
the needs of the Government and the public far certain types of busi-
ness information against t11e resulting burdens on industry, particu-
larly small business.
The Comptroller General, who was given certain responsibilities for
monitoring Federal regulatory reporting requirements Dn 'business by
an amendment to the Alaska Pipeline Act, will tell us tivhat he is doing
in this area, and will give ns his views on the proposed legislation.
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H.R. 14718=To discontinue or modify certain reporting require-
ments imposed on Federal agencies by statute. 'I'bis bill is the direct
result of a study conducted ~y the General Accounting Office at my
request, in, the interest of eliminating reports ?io longer considered
necessary, and of modifying others to produce more useful informa-
tion.
This bill has been checked out c]I fonds and activities, Ilule9s ot.herwisc provided by
11 1~,~,. hall he subject fio review b~~ the Gotrlhtrollcz' Gcnoral
12 of ,'IC United Mates iu ~iucordiulce with sac-h principles urid
l procedures and under s;uc11 talcs atld t~e~nlalions as he nlay
14 prescri~~bo. '1'hc Coluptroller C~cucl?al and his duly authorized
1~ rcpreycntativcs shall have access to such books, accouut~,
I6 recol?ds, documents, reports, filev, and atlter papcra, thinaa,
17 or property rc]atill}~ to suc11 funds and activities as are
18 dccnled ncccssaty by #lIC C'otnptr?ollcr (~cncral.
19 (b) To aid dIC Conlptl'oller General in plannirla audits
2U Or 1'eVICWS llndel' SILhHCCtll111 ('a) of t11iS SCet1011~ each n0I1-
appropriated fund activity within t]IC c~ceutivc branch oC
the Goternnlcnt shall 1'uruish to the Comptroller Gcncriil
at such times and iii such form as lIC s~a)1 require. stn annliHT.
report of the operations of such activity, ineludin~, _ark alb-_
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(;
1 nual statement of financial operations, finE=octal condition,
2 and cash flow.
3 `TITLE IV-EMPLOYMENT OF EXPI+:RTS AND
4 CONSULTANTS
5 SEC. 401. (a) The Comptroller Gener:~l is authorized
6 to employ not to exceed ten experts on a permanent, tempo-
? rary, or intermittent basis and to obtain services as authorized
S by section 3109 of title 5, United States Code, but in either
9 case at a rate (or the daily equivalent) for individuals not
10 to exceed the rate for level V of the Executive Schedule ( 5
11 U.S.C. 5316) .
12 (b) The provisions of sections 3323 (a) , 532, and 8344
13 of title 5, United States Code, and any other law prohibiting
14 or limiting the reemployment of retired officers or employees
15 or the simultaneous receipt of compensation and retired .pay
16 or annuities shall not apply to individuals employed as ex-
17 perts or consultants under subsection (a) of this section.
18 TITLE V-~-GENERAL 1~CCOUNTING OFFICE
19 BUILDING
20 SF,c. 501. Notwithstanding any other provision of law,
21 the Comptroller General shall have exclusive custody and
22 control over the General Accounting Office Building, includ-
23 ing the operation, maintenance, repairs, alterations, and
24 assignment of space therein. fihe Comptroller General and
25 the head of any Federal agency may enter into agreements
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1 for space to be occupied in the (xneral ;Accounting :Office
2 }3uilding by such agency at such rates as, may .be agreed
3 upon. Amounts received by the General Accounting Office
4 .pursu:~nt to such agreements will be deposited. to the appro-
5 priation initially charged for providing operation, mainte-
6 nancc, repair. and alteration services with respect, to such
7 space. The Comptroller General is authorized to lease build-
8 ings or parts of buildings in the District of Columbia (with-
9 out regard to section 34 of title 40, United States Code) or
10 elsewhere for the use of the General Accounting Office.. for .a
11 period not to exceed ten years.
12 TITLE VI--AUllITS OI' GOVERNMENT
13 CORPORATIONS
14 AMENDMENTS TO TI[E GOVERNMENT CORPORATION
15 CONTROL ACT
1ti SEC. 601. (a} Section 105 of the Government. Corpora-
17 tion Control Act (31 IJ.S.C. 850) is amended by adding
18 thereto the following sentence; "Effective January 1, 1.973,
19 each wholly owned Government corporation shall be audited
20 at least once in every three years".
21 (b) The first sentence of section 106 of sgch Act (31
22 U.S.C. 851) is aanended to read as follows.; "A report of
23 each audit conducted under section 105 shall be made by
24 the Comptroller General to the Congress not later than six
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acid one-half months following the close of the lest year
covered by such audit".
(e) Section 2U3 of such ~1ct (31 ]T.y.C. 857) is
amended by adding thereto the following sentence: "Effec-
tive January i, 1fl73, each mired-owuersl(ip Govei7(ment
corporative shall be audited at least once in every three
years".
(d) The first sentence of section 303 ~~f such Act (;l
U.Q.C. 858 )
is amended lu read as follow:: "A report of
each audit conducted under section 303 shall be made bar
the Comptroller General to the Congress not later than sic
and one-half months follon?iug the close ~f the last year
covered by such audit".
1$ ~MENllIiENTg TU 'riil~. FF,nF,N~1i. Ili~;l'OS1T Tti 9IIRANCE ACT
~SEU. G02. (a) i~eclio(( f 7 (b) of the .federal lleposit
L(;?urance ~lct (13 U.Q.C. lf~:~7 (b)) is amended by addiu
d(creto the follvwin~ sentence: "19;c Corl;oration shall be
18 audited at least once in every three years".
(b~ The first and second tieutences of se;~tion 1"r (c) of
such ~1ct (l32 I?.S.C. 1837 (c)) arc deleted a(ul the follow-
in; is inserted in tlicir place: ",1. report of e~(ch audit co3i-
dltcted uiidcr subsection (I;) of this section shall Le made
by-thc~ Comptroller General to the Cvn~ress sot later than
six and oiie-half months following the close of the last ~=c:u?
covered by such audit".
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1 11n~sE~n~r7r:~T To rruE~t 1L error i~sui;~hcE ~o~ .
2 SEC. G0.3. Section ~ ~ L3 of the Federal Crop Iustrrance
3 Act (5~ Stat. 7G; 7 U.S.C. 15.t3~ is anicnded to read as
~ follows : "The Corporation shall at. all times maintain com-
plotc and accaratc bunks of accounts and shall filo anntta~lly
G ~~'ith the Secretary of Agriculture a campletc report as to
7 tlro business of the Corporation".
S nn~EVnatE~ Ts To Tzn, a of ~r~Tc ~:~'~ uttlr:~:~r
g vE~~Ei,or~ri;~~ T ~c~r oi~ t a u s
10 SEC. 604. Section 107 (g} of the housing and Urban
l_i Dcvcloprncrtt Act of 1~G9 (12 U.S.C. 1701 (g)) is
12 amended by
1:~ (1) adding a new sentence at the crxl of 'stthpara,
14 graph= (1) thereof as follows : "Such audit shall be
15 rnade at least once iu ?every three years".
1G (~) substituting dre following sentence in lieu of
17 the first sentence in subparagraph (2) thereof: "~ re-
18 pm?t of each such audit shall be made by the Comp-
]9 troller Gcncral to the Congress not later than sis and
20 one-ha-lf ntor-d-s fallowing the close of the last year
21 covrrcd icy such audit".
2`2 ~ d111:1ll:1[E\T 'rU Dl~i'L`it[CT O1~ C'nLU"~1~SI~1
23 1{EDECELOl'JIEST 4CT t)1~ 194u
2} ~ Sxc. 005. Section 17of tho Districtof Columbia Re-
2~ development -Act of 1945 (60 Stat. 901) is amended by
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1 deleting the word "annual" from the clau.~.e "such books
2 shall be subject to annual audit by the General Accounting
3 Ofpice".
4 'rITLI+) VII-It~EVhSIflN OF ANNUA L AUDIT
5 RERUIREMENTS
6 AMENDMENT TO FEDERAL PROI'F.RTY AND ADMINIS7`RA-
7 TIVE SERVICES ACT OF 1949
8 SEC. 701. Section 109 (c) of the I+'ederal Property
9 and Administrative Services to ct of 1949 (40 U.S.C.
10 756 (e)) is amended to read as follows:
11 " (c) (1) As of June 30 of each yeax, there shall be
12 covered into the >7nited States Treasury as miscellaneous re-
13 ceipts any surplus in the General Supply Fund, all assets, lia-
14 bilities, and prior losses considered, above the amounts trans-
15 ferred or appropriated to establish and maintain said fund.
]~ "(2) The Comptroller General sha.]1 make audits of the
17 General Supply I+'und in accordance with the previsions of
18 the Accounting and Auditing Act of 1950 and make reports
19 on the results thereof."
20 AMENDMENT TO TnE I~`EI)ERAI. AVIATION A('T OF 1958
21 SEC. 702. That part of the second sentence of section
22 1307 (f) of the Federal Aviation Act of 1958 (49 U.S.C.
23 1537 (f)) which precedes the proviso is amended to read as
24 follows : "The Secretary shall maintain a set of accounts
25 which- shall be audited by the Comptroller General in ac-
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1 cordance with the provisions of the Accounting and Auditing
2 E1ct of 1950".
3 AMENDMENT WITII RESPECT TO THE BUREAU OI'
4 ENGRAVING AND PRIN'PING FUND
5 SEC. 703. Section 6 of the Act entitled "An Act to pro-
6 vide for financing the operations of the Bureau of Engraving
7 and Printing, Treasury Department, and for other purposes"
8 (31 U.S.C. 181d) is a,tnended to read as follows: "The finan-
9 vial transactions, accounts, and reports of the fund shall be
10 audited by the Comptroller Gleneral in accordance with the
11 provisions of the Accounting and Auditing Act of 1950".
12 AMENDMENT WITH RESPECT TO TIIE VETERANS'
13 CANTEEN SERVICE
14 SEC. 704. Section 4207 of title 38, United States Code,
15 is amended to read as follows
16