LETTER TO MR. JAMES M. FREY FROM GEORGE L. CARY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP77M00144R001100210014-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 23
• Document Creation Date: December 19, 2016
• Document Release Date: January 18, 2006
• Sequence Number: 14
• Publication Date: May 6, 1976
• Content Type: LETTER

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CENTRAL INTELLIGENCE AGENCY
WASHINGTON, D.C. 20505
OLC 76-1034/a
6 MAY 1"76
Mr. James M. Frey
Assistant Director for Legislative Reference
Office of Management and Budget
Washington, D. C. 20503
Dear Mr.' Frey:
This is in response to your letter requesting this Agency's views
on H.R. 12729, a bill "To amend the Budgeting and Accounting Act, 1921,
to affirm the authority of the Comptroller General to have access to
any books, documents, papers, or records of any Federal department or
establishment for managerial and operational as well as for fiscal. reviews
and evaluations." ,
This bill does not appear to grant the Comptroller General additional
statutory authority beyond that now afforded under section 313 of the
Budgeting and Accounting Act of 1921 (31 U.S.C. 54) to gain access to
information from Federal agencies. Section 313 of the Budgeting and
Accounting Act gives the Comptroller General authority to require all
Federal "departments and establishments" to furnish "such information
regarding the powers, duties, activities, organization, financial
transactions, and methods of business of their respective offices"
as the Comptroller General may from time to time require. The
Comptroller General, or his authorized agent, "shall, for the purposes
of securing such information, have access to and. the right to examine
any books, documents, papers, or records of any such department or
establishment," as necessary to secure information from those agencies,
without specific restriction. The Comptroller General's authority under
this statutory provision is not limited to documents, books, etc.
"pertaining to the receipt, disbursement, or application of public
funds" as can be inferred from the language of H.R. 12729.
H.R. 12729 would amend section 313 of the Budgeting and Accounting
Act by making this blanket authority of the Comptroller General to
obtain information from Federal agencies specifically available to
the GAO when conducting congressionally-initiated studies under section
204 of the Legislative Reorganization Act of 1970, and when conducting
audits of Government agencies under sec-,:ion 117 of the Accounting and
~,PWTIpA,
b ~.
T AO i91 e
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Auditing Act of 1950. The provisions of section 313 of the Budgeting
and Accounting Act operate independently of the Legislative Reorganization
Act and the Accounting and Auditing Act. Thus, the amending language in
H.R. 12729 would seem to operate as an affirmation of a policy statement
rather than a provision granting new statutory authority to the GAO.
The GAO has not conducted any audits of the CIA since 1961, and in
July 1962, in conjunction with the House Armed Services Conmiittee, determined
that audits conducted under necessary security limitations were not of
sufficient value. The Agency has relied on the special statutory authorities
granted under the National Security Act of 1947 and the Central Intelligence
Agency Act of 1949, in working out proper security arrangements for outside.
auditing or review of Agency procedures and activities, specifically:
section 102(d) of the National Security Act placing responsibility for
protection of intelligence sources and methods from unauthorized disclosure
with the Director of Central Intelligence; section 5(a) of the CIA Act
authorizing the CIA to receive from and transfer appropriated funds to other
Government agencies without regard. to other laws restricting such transfers;
section 6 of the CIA Act exempting the CIA from other laws requiring publi-
cation of organizational, financial, and personnel matters; and section 8
of the CIA Act, granting the CIA authority to expend appropriated funds as
necessary, to be accounted for solely on the certificate of thee Director.
It is the firm position of this Agency that these provisions of
law afford sufficient and fully justifiable grounds from which to argue
that outside auditing and review of CIA activities and operations must
only be undertaken under special conditions and be based on particular
agreements. Although it is my impression that H.R. 12729 does not in fact
grant the GAO increased statutory authority with which to seek access to
CIA records and information, if enacted, it could be so cited and could
pose practical problems. Since the bill appears essentially superfluous
and somewhat misleading, this Agency would be opposed to enactment of
H.R. 12729.
Sincerely,
SIGNED
George L. Cary
Legislative Counsel
Distribution:
Orig - Addle
1 - OGC
1 - Compt. Office
OLC Subject
1 - OLC Chrono
1 OMB Liaison
OLC:RLB:ndl
(6 May 19 76)
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2
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EXECUTIVE: OFFICE CF `a HE PRESIDENT OFFICE. OF MANAGEMENT AND BUDGET
WASHINGTON, D.G. 20503
April 6, 19- J
.LEG'ISLA.TIVE REFLRR L MEMORANDUM
Legislative Liaison Officer
Department of Justice
Department of Health, Education
and Welfare
Department of L l r
General Services I?c~rninistration
Securities and. Excl tinge Cormiis i.on
Federal Trade Commission
Federal F :; erve Board
U.S. Postal Service
Civil Service Conti ssion
Overseas Private Investment Corporation
Department of Defense
Central Intoiligernce Agency
Department of State .
H.R. 12729, a bill, "To amend the Bu geting and Accounting
Act, 1921, to affirm the authority of the Cc m troller G neral
to have access to any hooks, doci rrents, paters, or records
of any Federal department or e atabi.i e ?mcnt for nzragerial and
operational as well as for fiscal reviews and evaluations."
The Office of Management and Budget requests the views of
your agency on the above subject before advising on its
relationship to the program of the President, in accordance
with OMB Circular A--19.
A response to this request for your views is needed
no later than c.o.b. 'T'uesday, May 4, 1976
Questions should be referred to Robert F. Carlst-rom 72- 7,0
395--3890 M-__..._.r-_w__-__...{ M_._--..._
the legislative analyst in this office.
X , ;
Mr. Nichols!
Mr. Graves
Bernard II . Mr-tr tin for
Assistant Director for
f
Tt,n-CT~ CZ
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 ease
014=5
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 ROUT114G AND RECORD SHEET
SUBJECT: (Optional) 666 7(, - . L1646
FROM:
EXTENSION
NO.
Office of Legislative Counsel
7D35 HQS 1
1
DATE
1
28 April 1976
TO: (Officer designation, room number, and DA
building)
TE
OFFICER'S
COMMENTS (Number each comment to show from whom
RECEIVED
FORWARDED
INITIALS
to whom. Draw a line across column after each comment.)
OGC Attn:
111 y
e d'..,
Attached for your review and
2.
coordination is a draft letter
from this office to OMB outlining
the Agency's views on H.R. 12729,
a bill introduced by Representative
Abzug related to GAO access to
Agency information and material.
4.
OMB has requested that we furnish
our response no later than COB
Tuesday, May 4, 1976. Please
notify myself orI _j fTAT
you have any additional commenfi -AT
or suggestions regarding the views
letter by COB Friday, April 30, 1
97
7.
B,
Office o Legislative UE~~ff*
9
.
10.
11.
12.
3.
14.
15.
UNCLASSIFIED - FI [:1 SECRET
4-
ro
INTERNAL r-1 UNCLASSIFIED
FORM 61 O USEDITPREV IO S [--I SECRET r-1 CONFIDENTIAL El
3-62
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DRAFT:RLB:ndl (28 April 1976)
Mr. James M. Frey
Assistant Director for Legislative Reference
Office of Management and Budget
Washington, D. C. 20503
Dear Mr. Frey:
This is in response to your letter requesting this Agency's views
on H.R. 12729, a bill "To amend the Budgeting and Accounting Act,.1921,
to affirm the authority of the Comptroller General to have access to any
books, documents, papers, or records of any Federal department or establishment
for managerial and operational as well as for fiscal reviews and evaluations.."
This bill does not appear to grant the Comptroller General additional
statutory authority beyond that now afforded under section 313 of the Budgeting
and Accounting Act of 1921 (31 U.S.C. 54) to gain access to information from
Federal agencies. Section 313 of the Budgeting and Accounting Act gives the
Comptroller General'authority to require all Federal "departments and establishments'
to furnish "such information regarding the powers, duties, activities, organization,
financial transactions, and methods of business of their respective offices"
as the Comptroller General may from time to time require. The Comptroller
General, or his authorized agent, "shall, for the purposes of securing such.
;information, have access to and the right to examine any books, documents,
,.papers, or records of any such department or establishment," as necessary to
.secure information from those agencies, without specific restriction. The
Comptroller General's authority under this statutory provision is not limited
to documents, books, etc. "pertaining to the receipt, disbursement, or application
of public funds" as.can be inferred from the language of H.R. 12729.
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H.R. 12729 would amend section 313 of the Budgeting and Accounting
Act by making this blanket authority of the Coitroller General to obtain
information from Federal agencies specifically available to the GAO when
conducting congressionally-initiated studies under section 204 of the Legislative
Reorganization Act of 1970, and when conducting audits of Government agencies
under section 117 of the Accounting and Auditing Act of 1950. The provisions
of section 313 of the Budgeting and Accounting Act operate independently of
the Legislative Reorganization Act and the Accounting and Auditing Act.
Thus, the amending language in H.R. 12729 would seem to operate as an
affirmation of a policy statement rather than a provision granting new
statutory authority to the GAO.
The GAO has not conducted any audits of the CIA since 1961, and in
July 1962, in conjunction with the House Armed Services Committee, determined,
that audits conducted under necessary security limitations were not of
sufficient value. The Agency has relied on the special statutory authorities
granted under the National Security Act of 1947 and the Central Intelligence
Agency Act of 1949, in working out proper security arrangements for outside
auditing or review of Agency procedures and activities, specifically:
section 102(d) of the National Security Act placing responsibility for
protection of intelligence sources and methods from unauthorized disclosure
with the Director of Central Intelligence; section 5(a) of the CIA Act
authorizing the CIA to receive from and transfer appropriated funds to other
government agencies without regard to other laws restricting such tran,fers;
,Section 6 of the CIA Act exempting the CIA from other laws requiring publication
of organizational, financial, and personnel matters; and Section 8 of tie CIA
.Act, granting the CIA authority to expend apppproppriated funds as necessary,
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to be accounted for solely on the certificate of the Director.
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It is the firm position of this Agency that these provisions of law
afford sufficient and fully justifiable grounds from which to argue that outside
auditing and review of CIA activities and operations must only be undertaken
under special conditions and be based on particular agreements. Although
it is my impression that H.R. 12729 does not in fact grant the GAO increased
statutory authority with which to seek access to CIA records and. information,
if enacted, it could be so cited and could pose practical problems. Since the
bill appears essentially superfluous and somewhat misleading, this Agency
would be opposed to enactment of H.R. 12729.
Sincerely,
George L. Cary
Legislative Counsel
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94TH CONGRESS
2n SEssIoN
12729
IN THE HOUSE OF
MdARCI[ >3,19arf
Ms. ARZrc introduced the follo-ming bill; which was referred to the Com-
inittee on Government Operations
Co amend the Budgeting and A cctnnitin, Act, 1.921, to affirm
the authority of the Comptroller General to have access to
any looks, documents, paper;, or records of any Federal
department or establishment for nianagenal and operational
-11 as for fiscal reviews and evaluations.
as we
1 Be it enacted by the Senate and House of Repr?esenta-
2 tines of the United States of America in Congress assembled,
3 That section >l:3 of the Budgeting and Accounting Act, 1921
4 (.'> 1 U.S.C. 5-i) , is ainended hNv inn,ertin at the end thereof
5 tl)e following new- sentence: 'The a:utliority- contained in this
6 section shall he applicable to midihi under section 117 of the
7 Accountin and Auditing Act of 195( and to reviews and
S evaluations Linder ,ectimi 204 of the Le,.Isla.tlve 1 eoroaldza-
9 tion Act of 1970, and sllillt not be restricted to only those
I
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2
1 booh~ dociunents, papers, and records pertaining to the re-
2 ceipt, disbursement, or application of public fund.:, but shall
3 extend to all books, documents, papers, or records within
4 the possession or control of any snveh_ deeartmenl or esfiab--
5 relent.".
b
~n
x
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 H
is
orruation furnished to Comptroller G
departments and
b
a
fsh>rnenta
All departments and establishments shall fu
troller
nis
r
h
era such if to th C
normation regarding theeomp
powers, duties , ac-
tivities, organization, financial transactions, and methods of business
of their-respective offices as he may from time
them; and the Comptroller General, or any of his sistanequire of
ployees, when duly authorized by hi sha, asiurpo s or em-
curing such information, have aces
establishment to and for the to examine
any books, documents, paper, or records of any such department or
. The authority contained in this section shall not b
applicable to expenditures made under the provisions of section 107
of this title. be
June 10, 1921, c. 18, Title III, ? 313, 42 Stat. 26.
atoricaI Note
Codifoation. section. superseded a' ro-
vision in Act-L'eb, 19, 1897, p to inspection; and
Stet. 550, that all books, c. 28 S, ? 1, 20 Comptroller of the exreasury. by the
er matters relatin Rapers,e and 0th- Auditor authorized tores and the
g to the offic or ac- counts, settle d such of
counts of disbursing officers of the De- an the duly authorized filar r
o1
partmeuts; and commissions, boards, either; and also a somewhat simil
a pro-,
establishments of the Government and vision in Act Xtarnh
Jam: .. ,
1. Bids and contracts Notes -oP 2Uecisions
Requirement
Brat by the Comptroller Gen-
of information. from it detailed statement
Secretary of war relatin the former-, ceptin of reasons for ac-
g other th
t
`
an the l
o contt
racsowest bid was
showing that lowest bid was accepted or warranted by this section,
Atty.Gen. 446. 19 ~. 34 OR.
55. Eligible register for accountants for
Accountin General
o' Office
The Civil Service Commission shall establish an eligible regis-
ter for accountants for the General Accounting Offic
aminations of applicants for entrance upon e, andthe ex
such register shall be
based upon questions approved by the Comptroller General. June
10, 1921, c. 18, Title III, ? 314, 42 Stat:.,26.
? 56. Designation of e
person 'o sign Warrants
The Comptroller General is authorized to designate such person
or persons in his office as may be required from time to time to coun-
tersign in his name such classes of warrants as he may direct. Mar.
4, 1909, c. 297, ? 1, 35 Stat. 866. May 29, 1920, c. 214
June 10, 1921, c. 18, Title 111, ? 304, 42 tat. 24. ' ? 1' 41 Stat. 647;
30
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31 ? 54; GENERAL. ACCOUNTING. OFFICE Ch.
?'S4 If I;
Cli. 1
Derivation. Sect.iot
vision of the Legisla
Judicial Appropriatio
Year 1921.
Act, J921, which con
Repeals. P.S. 1 275
1 s94, c. 174, 1 7, s u bd
See, also, historical
of this title.
? 57. (leaves
Under such rill
employees in the I
leave of absence u
the executive, dep.
piece-rate employ,
average quantity 4
for. Mar. 4,. 1913,
?? 1(a), 5(a), 6, of
References In. Text,
5, referred to In the
from the Code as cape
23 of Title 5, Executive,
Government Officers an,
Codification. Section
as n part. of the Budge
Act, 1.921, which -coiapr
Section was formerly
title.
Transfer of function':
the Bureau of Accounts
Department were transr,
master General and the
fished by 1949 Reorg, Plr
Annual and sick leave
Executive Departments P.
? 58. Transfer
es
l
 icy?
1a-
'us.
Ch. 2 SETTLEMENT & AUDIT 31 ? 107a
Settlement of expenses of intercourse with foreign
nations
Whenever any sum of money has been or shall be issued, from the
Treasury, for the purposes of intercourse or treaty with foreign na-
tions, in pursuance of any law, the President is authorized to cause
the same to be duly settled.-annually with the General Accounting
Office, by causing the same to be accounted for, specifically, if the_
expen_diture_ma_y,_in._his_judgment, be made public;. and by making
or causing the Secretary of State to make a certificate of the amount
of such expenditure, as he may think it advisable not to specify; and
every such certificate shall be deemed a sufficient voucher,for the
sum therein expressed to have been expended. R.S. ? 291,k/June 10,
1921, c. 18, Title III, ? 304, 42 Stat. 24.
Derivation. Act Feb. 9, 1793, c. 4. it
2, 1 Stat. 300.
Codification. A reference in the orig-
inal text of this section to the "proper
accounting officers of the Treasury" was
changed to refer to the "General Account-
ing Office" on authority of Act June 10,
1921.
An appropriation for the fiscal year 1927
to enable the President to meet unfore-
seen emergencies arising in the Diplo-
matic and Consular service, etc., to be ex-
pended pursuant to the requirement of
this section, was contained { Act April
29, 1926, c. 195, 44 Stat. 33.' Similar ap-
propriations were contained in prior acts.
Cross References
Comptroller General not entitled to information regarding expenditures. made under
this section, see section 54 of this title.
? 107a. Same; delegation of authority by Secretary of
State
The Secretary of State may delegate to subordinate officials the
authority vested in him by section 107 of this title pertaining to
certification of expenditures. Aug. 5, 1953, c. 328, Title I, ? 101, 67
Stat. 368.
Similar Provisions. Section is from the
Department of State Appropriations Act,
1954. Similar provisions were contained
in the following prior appropriation Acts.
1952-July 10, 1952, c. 651, Title 1,
? 101, 66 Stat. 550.
1951--Oct. 22, 1951, c. 533, Title 1:,
p 101, 65 Stat. 577?
1950--Sept. 6, 1950, c. 896, ch. 111,
Title I, ? 101, 64 Stat. 6111.
1949--July 20, 1919, c. 394, Title, 1,
? 101, 63 Stat. 449.
104&--June 3, 1048, c. 400, Title I, 1
101, 62 Stat. 208.
1947-July 9, 1947, c. 211, Title I. 1
101, 61 Stat. 282,
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64 STATJ 818T CONG., 2v SESS.-CFI. 94G-SEPT. 12, 1450
Src. 115, (a) When the Secretary of the Treasury and the, Comp-
troller General determine that existing procedures can be modified in
the interest of simplification, improvement, or economy, with sufficient
safeguards over the control and accounting for the public funds, they
may issue joint regulations providing for the waiving, in whole or in
part, of the requirements of existing law that--,
(1) warrants be issued and countersigned in connection with
the receipt, retention, and disbursement of public moneys and
trust funds; and
(2) funds be requisitioned, and advanced to accountable officers
under each separate appropriation head or otherwise.
(b) Such regulations may further provide for the payment of
vouchers by authorized disbursing officers by means of checks issued
against the general account of the Treasurer of the 'Unit:ed States :
Provided, That in'such case the regulations shall provide for appro-
priate action in the event of delinquency by disbursing, officers in the
rendition of their accounts or for other reasons arising out of the
condition of the officers' accounts, including under necessary circum-
stances, the suspension or withdrawal of authority to disburse.
SEc. 116. The Comptroller General is authorized to discontinue the
maintenance in the General Accounting Office of appropriation,
expenditure, limitation, receipt, and personal ledger accounts when
in his opinion the accounting systems and internal control, of the execu-
tive, legislative, and judicial agencies are sufficient to enable him to
perform properly the functions to which such accounts relate.
SEC. 117. (a) Except as otherwise specifically provided by law, the
financial transactions of each executive, legislative, and judicial
agency, including but not limited to the accounts of accountable officers,
shall be audited %y the General Accounting Office in accordance with
such principles and procedures and under such rules and regulations
as maybe prescribed by the Comptroller General of the United States.
In the determination of auditing procedures to be followed and the
extent of examination of vouchers and other documents, the Comp-
troller General shall give due regard to generally accepted principles
of auditing, including consideration of the effectiveness of accounting
organizations and systems, internal audit and control, and related
administrative practices of the respective agencies.
(b) Whenever the Comptroller General determines that the audit
shall be conducted at the place or places where the accounts and other
records of an executive agency are normally kept, he may require any
executive agency to retain in whole or in part accounts of accountable
officers, contracts, vouchers, and other documents, which are required
under existing law to be submitted to the General Accounting Office,
under such conditions and for such period not exceeding ten years as
he may specify, unless a longer period is agreed upon. with the executive
agency: Provided, That under agreements between the Comptroller
General and legislative and Judicial agencies the provisions of this
sentence may be extended to the accounts and records of such agencies.
GENERAL ruOVISIO 'STS
SEC. 118. As used in this part, the term "executive agency" means
any executive department or independent f stablishment in the execu-
tive branch of the Government but (a) e :cept for the purposes of
sections 111, 116, and. 1.19 shall not, include my Government corpora-
tion or agency subject to the Government Corporation Control Act
837
Discontinuanco of
Accounts in General
Accounting Office.
Audits by Qeneral
Accounting Office.
Retention of ac-
counts, etc.
"Executive agen-
cy?
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1168 ' PUBLIC LAW 91-51.0-OCT. 26, 1970 [84 STAT.
AVAILABILITY TO CONGRESS OF BUDGETARY, FISCAL, AND RELATED DATA
SEC. 203. Upon request of any committee of either house., or of any
joint connnittee of the, two Houses, the Secretary of the 'I'reasnly
and the Director of the Office of Management and Budget shall---
(1) furnish to such committee or joint.+sommittee information
as to the location and nature of data available in the various
Federal agencies with respect to programs, activities, receipts,
and expenditures of such agencies; and
(2) to the extent feasible, prepare for such committee or joint
connnittee summary tables of such data.
SEc. 206. Nothing contained in this Act shall be construed as impair-
ing any authority or responsibility of the Secretary of the Treas-
ury, the Director of the Office of Management and Budget, and the
Comptroller General of the United States under the Budget and .c-
counting lot, 1921, as amended, and the Budget and Accounting
Procedures Act of 1950, as amended, or any other statutes.
"Federal
ngency."
SEC. 204. (a) The Comptroller General shall review and analyze
the results of Government programs and activities carried on under
existing law, including the making of cost benefit studies, when
ordered by either House of Congress, or upon his own initiative, or
when requested by any committee of the House of Representatives or
the Senate, or any joint committee of the two Houses, having juris-
t7l
diction over such programs and activities.
(b) The Comptroller General shall have available in the General
Accounting Office employees who are expert in analyzing and con-
ducting cost benefit s tudles of Government programs. Upon request
of any committee of either House or any joint committee of the two
Houses, the Comptroller General shall assist such committee or joint
committee, or the staff of such committee or joint conunittee-
(1) in analyzing cost benefit studies furnished by any Federal
agency to such. committee or joint committee ; or
(2) in conducting cost benefit studies of programs under the
jurisdiction of such connnittee or joint committee.
POWER AND DUTIES OF COMPTROLLER GENERAL IN CONNECTION WITH
BUDGE'riRy, I'ISCAL, AND RELATED DS A I'TERS
SEC. 205. (a) The Comptroller General shall establish within the
General Accounting Office such office or division, or such offices or
divisions, as lie considers necessary to carry out the functions and duties
im )osed on him by the provisions of this title.
b) The, Comptroller General shall include in his annual report; to
the Congress information with respect to the performance of the
functions and duties imposed on him by -the provisions of this title.
('RESERVATION OF EXISTING AUTHORITIES AND DUTIES UNDER IBL7)GET AND
ACCOUNTING AND OTHER STATUTES
SEC. 207. As used in this title, the term "Federal agency" means
any department, agency, wholly owned Government co-poration,
establishment, or instrumentality of the Government of time United
States or the government of the District of Columbia.
S,';.
J921,a.
an
an
ad
ac
au
01)
(b)
amend
and ot:
lieu the
(b)
June 1
of the
by the
mental
mI
of
foe
vlc
III".I
est
dii
cc (e)
Jllne 1
he may
iis,
Wi)
ti''
pr,
col
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 AVAILABILITY TO CONGRESS OF BUDGETARY, FISCAL, AND RELATED DATA
SEC. 203. Upon request of any committee of either House, or of any
joint committee of the two Houses, the Secretar of the Treasury
and the Director of the Office of Management and Budget shall-
(1) furnish to such committee or joint committee information
as to the location and nature of data available in the various
Federal agencies with respect to programs, activities, receipts,
and expenditures of such agencies; and
(2) to the extent feasible, prepare for such committee or joint
committee summary tables of such data.
PUBLIC LAW 91-510--OCT. 26, 1970 [84 ST-AT.
ASSISTANCE TO CONGRESS BY GENERAL ACCOUNTING OFFICE
Report to Con_
gres s.
42 Stet. 20.
31 USC 1.
64 Stat. 832.
31 USC 2 note.
"Federal
agency."
Ievlew and anal ze
the r . is of Government pro grams and activities ca d
rr
SEC. 204 ,(a) The Comptroller General shall
ie on un er
exlstin law i_nc cling the ma cl o' cs ene Ies, when
or ere ctHier House of onnress. or )on Is own initiative, or
w I~ en re uestecfl>
the Senate, or any Joic committee of l the l two Houses, having jur s-
diction over such prop rams and activities.
(b) The -Comptroller General shall have available in the General
Accounting O Bice emplo ees who are e_ xpert in analyzing and con-
ducting cost benefit stir- Ies o overnrnentt programs. Upon request
of any committee of either House or any joint committee of the two
Houses, the Comptroller General shall assist such committee or joint
committee, or the stair of such committee or joint committee-
(1) in anal zing; cost, benefit studies furnished by any Federal
agency to sucT i committee or J I bFnmittee ; or
(2) in conducting cost benefit studies of programs under the
jurisdiction of such committee or joint committee.
POWER AND DUTIES OF COMPTROLLER GENERAL IN CONNECTION WITH
BUDGETARY, FISCAL, AND RELATED MATTERS
SEC. 205. (a) The Comptroller General shall establish within the
General Accounting Office such office or division, or such offices or
divisions, as lie considers necessary to carry out the functions and duties
im posed on him by the provisions of this title.
(b) The Comptroller General shall include in his annual report to
the Congress information with respect to the performance of the
functions and duties imposed on him by the provisions of this title.
PRESERVATION OF EXISTING AUTrIOI,ITIES AND DUTIES UNDER BUDGET AND
ACCOUNTING AND OTHER STATUTES
SEC. 206. Nothing contained in this Act shall be construed as impair-
ing any authority or responsibility of the Secretary of the Treas-
ury, the Director of the Office of Management and Budget, and the
Comptroller General of the United States under the Budget and Ac-
counting Act, 1901, as amended, and the Budget and Accounting
Procedures Act of 1950, as amended, or any other statutes.
DEFINITION
SEC. 207. As used in this title, the terra "Federal agency" means
any department., agency, wholly owned Government corporation,
establishment, or instrumentality of the Government of the united
States or the government of the District of Columbia.
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 31. ?54: GENERAL ACCOUNTING OFFICE Ch. 1.
Information furnished to Comptroller General by
departments and establishments
All departments and establishments shall furnish to the Comp-
troller General such information regarding the powers, duties, ac-
tivities, organization, financial transactions, and methods of business
of their respective offices as he may from time to ' time require of
them; and the Comptroller General, or any of his assistants or em-
ployees, when duly authorized by him, shall, for the purpose of se-
curing such information, have access to and the right to examine
any books, documents, papers, or records of any such department or_
establishment. The authority contained in this section shall not be
applicable to expenditures made under the provisions of section 107
of this title. June 1.0, 1921, c. , 18, Title 111,' ? 313, 42 Stat. 26.
Codification. Section superseded a pro-
vision in Act Feb. 19, 1897, c. 265, ? 1, 29
Stat. 550, that all Looks, papers, and oth-
er matters relating to the office or ac-
counts of disbursing officers of the De-
partments, and commissions, boards, and
establishments of the Government in the
District of Columbia, should be subject
Historical Note
to inspection,- and examination by the
Comptroller of the Treasury, and the
Auditor authorized to settle such ac-
counts, or the duly authorized agents of
either; and also a somewhat similar pro-
vision in Act March 15, 1898, c. fib, ? 5, 30
Stat. 310.
Requirement by the Comptroller Gen- a detailed statement of reasons for ac-
eral of information from the former - cepting other than the lowest bid was
Secretary of war relating to contracts warranted by this section. 1925, 34 Op.
showing that lowest bid was accepted or Atty.Gen. 440.
Eligible register for accountants for General
Accounting Office
The Civil Service Commission shall establish an eligible regis-
ter for accountants for the General Accounting Office, and the ex-
aminations of applicants for entrance upon such register shall be
based upon questions approved by the Comptroller General. June
10, 1921, c. 18, Title III, ? 314, 42 Stat. 26.
? 56. Designation of person to sign warrants
The Comptroller General is authorized to designate such person
or persons in his office as may be required from time to time to coun-
tersign in his name such classes of warrants as he may direct. Mar.
4, 1909, c. 297, ? 1, 35 Stat. 866; May 29, 1920, c. 214, ? 1, 41 Stat. 647;
June 10, 1921, c. 18, Title III, 8 304, 42 Stat. 24.
Derivation
vision of tb
Judicial Ap]
Year 1921.
Codificatie
as a part of
Act, 1921, w
Repeats.
and Comptr
sign certific
bounties. It
1894, c. 174,
See, also,
of this title.
? 57.
Under i
employees
leave of a
the execul
piece-rate
average q1
for. Mar.
?? 1(a), 51
References
5, referred t
from the Cot
23 of Title 5,
Government 1
. Codification
as a part of
Act, 1921, wh
Section wa;
title.
Transfer of'
the Bureau of
Department m
master Generi
ished by 1.949
Annual and
Executive Del
 ~ncy,,
:o la-
rolls.
s sole
r de,
duty
olfi-
g re-
mess.
Navy
at a
n of-
n
ty, is
f the
d by
that
3udg-
~prov.
round
funds,
Id.
xes,
nd-
t ting
isfa.c-
nt of
coxn-
Ch. 2 SETTLEMENT & AUDIT 31 ? 107a
? 107. settlement of expenses of intercourse with foreign
nations
Whenever any sum of money has been or shall be issued, from the
Treasury, for the purposes of intercourse or treaty with foreign na-
tions, in pursuance of any law, the President is authorized to cause
the same to be duly settled,-annually with the General Accounting
Office, by causing the same to be accounted for, specifically, iLihe,_
expenditure may,_in_.his. .udgment,_be made public; and by making
or causing the Secretary of State to make a certificate of the amount
of such expenditure, as he may think it advisable not to specify; and
every such certificate shall be deemed a sufficient voucher7for the
sum therein expressed to have been expended. R.S. ? 291 - June 10,
1921, c. 18, Title III, ? 304, 42 Stat. 24.
Derivation. Act Feb. 9, 1703, C. 4, ?
2, 1 Stat. 800.
Codification. A reference in the orig-
inal text of this section to the "proper
accounting officers of the Treasury" was
changed to refer to the "General Account-
ing Ofdce" on authority of Act June 10,
1921.
An appropriation for the fiscal year 1927
to enable the President to meet unfore-
seen emergencies arising in the Diplo-
matic and Consular service, etc., to be ex-
pended pursuant to the requirement of
this seetiou, was contained Act April
20, 1.926, c. 195, 44 Stat. 33: Similarap-
propriations were contained in prior acts.
Cross Refore.ces
Comptroller General not entitled to information regarding expenditures made under
this section, see section 54 of this title.
? 107a. Same; delegation of authority by Secretary of
state
The Secretary of State may delegate to subordinate officials the
authority vested in him by section 107 of this title pertaining to
certification of expenditures. Aug. 5, 1953, c. 328, Title I, ? 101, 67
Stat. 368.
SimUar Provision. Section is from the
Department of State Appropriations Act,
1054. Similar provisions were contained
in the following prior appropriation Acta.
1952-.July 10, 1952, c. 651, Title 1,
? 101, 66 Stat. 550.
1951-Oct. 22, 1951, c. 633, Title 1,
1 101, 65 Stat. 577.
1030-Sept. 6, 1050, c. 896, ch. 111,
Title I, i 101, 64 Stat. 610.
1949--July 20, 1949, C. 334, Title I,
? 101, 63 Stat. 449.
1948--June 3, 1948, c. 400, Title I, ?
101, 62 Stat. 308.
1947-July 9, 1047, c. 211, Title I, ?
101, 61 Stat. 282,
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Sro. 115. (a) When the Secretary of the Treasury and the Comp-
troller General determine that existing procedures can be modified in
the interest of simplification, improvement, or economy, with sufficient
safeguards over the control and accounting for the public funds, they
may issue joint regulations providing for the waiving, in whole or in
part, of the requirements of existing law that-
(1) warrants be issued and countersigned in connection with
the receipt, retention, and disbursement of public moneys and
trust funds; and
(2) funds be requisitioned, and advanced to accountable officers
under each separate appropriation head or otherwise.
(b) Such regulations may further provide for the payment of
vouchers by authorized disbursing officers by means of checks issued
against the general account of the Treasurer of the United States :
Provided, That in"such case the regulations shall provide for appro-
priate action in the event of delinquency by disbursing officers in the
rendition of their accounts or for other reasons arising out of the
condition of the officers' accounts, including under necessary circum-
stances, the suspension or withdrawal of authority to disburse.
SEu. 116. The Comptroller General is authorized to discontinue the
maintenance in the General Accounting Office of appropriation,
expenditure, limitation, receipt, and personal ledger accounts when
in his opinion the accounting systems and internal control of the execu-
tive, legislative, and judicial agencies are sufficient to enable him to
perform properly the functions to which such accounts relate.
AUDITING PitOVISIONS
EC 7 (a) Except as otherwise specifically provided by law the
fin`a~s ei :ti_ xansactions of each executive, legislative, and judic aT
agency, includinu not limited to the accounts of accountable officers,
shall be a ditedi _t_he General Accountin Office in accordance with
such principles and liroce ure.; an iin`c er suci rules and regulations
as may be prescribed by the Comptroller General of the United States.
In the determination of auditing procedures to be followed and the
extent of examination of vouchers and other documents, the Comp-
troller General shall give due regard to generallyy _ ccepted rinciples
of auditing, including considel,at ou of-the etivene"ss of accounting
organizations and vernal audit and control, and related
-dm' ilk rt"ative es of the respective agencies.
(b) ~4Fieriever f:omp Ilex Genel I etermines that the audit
shall be conducted at the place or places where the accounts and other
records of an executive agency are normally kept, he may require any
executive agency to retain in whole or in part accounts of accountable
officers, contracts, vouchers, and other documents, which are required
under existing law to be submitted to the General Accounting Office,
under such conditions and for such period not exceeding ten years as
he may specify, unless a longer period is agreed upon with the executive
agency : Provided, That under agreements between the Comptroller
General and legislative and judicial agencies the provisions of this
sentence may be extended to the accounts and records of such agencies.
SEc. 118. As used in this part, the term "executive agency" means
any executive department or independent establishment in the execu-
tive branch of the Government but (a) except for the purposcs of
sections 114, 116, and 119 shall not include any Government corpora-
tion or agency subject to the Government Corporation Control Act
837
Discontinuance of
accounts in General
Accounting Office.
Audits by General
Accounting Office.
Retention of ac-
counts, etc.
"Executive agen-
cy. 11
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2
1 books, documents, papers, and records perbiiiiimmg to the re-
2 ceipt, disbursement, or application of public fur).ds, but 'Shalt
3 extend to all books, documents, papers, or records within
4 the possession or-control of any such depurt;mcnt or estab-
5 went.".
tv
P
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91TiI CONGRESS
2D SESSION Ho R. 1272
IN TIIE IIOIJSE OF REPRESENTATIVES
M n1tcu 2 21,1976
Ms. Anzuc; introduced the following bill; which was referred to the Com-
mittee on Government Operations
A BILL
To
amend the Budgeting and Accounting Act, 1921, to affirm
the authority of the Comptroller General to have access to
a,ny books, documents, papers, or records of any Federal
department or establishment for managerial and operational
as well as for fiscal reviews and evaluations.
L Be it enacted by the Senate and house of Representa-
2 tines of the United States of America in Congress assembled,
3 That section 31.1 of the Budgeting and Accounting Act, 1921
4 (31 U.S.C. 54), is amended by inserting at the end thereof
5 the following new sentence: "The authority contained in this
6 section shall be applicable to audits under section 1.17 of the
7 Accounting and Auditing Act of 1950 and to reviews and
S evaluations under section 204 of the Legislative R.eorganiza-
9 Lion Act of 1970, and shall not be restricted to only those
I
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1 books, documents, papers, and records pertaining to the re-
2 ceipt, disbursement, or application of public funds, but -shall
3 extend to all books, documents, papers, or records within
4 the possession or control of any such department or estab-
5 ment.".
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im,ft, CONGRESS
2D SESSION
:, 11mittee on Government OPO Ions
IN TIIE HOUSE OF REPRESENTATIVES
MARCH 23, 1976
MMis. ABZ1JO introduced the following bill; which t, tis referred to the Corn-
any hooks, documents; papers, or records of any Federal
department or establishment for managerial and operational
as well as for fiscal reviews and evaluations.
the authority of the CoinPtroller General to have access to
,. .
AecoLlntl.nr' Act, 1921, to affirm.
Be it enacted by the Senate and House of Represenla-
2 tives of the United States of America in Congress assembled,
3 That section 313 of the Budgeting and Accounting Act, 192:1
4 ( 1 U.S.C. 54), is ari-tended by inserting at the end thereof
5 the following new sentence : "The authority contained in this
6 section shall be applicable Ito audits under section 117 of the
7 Accourting and Auditing Act of 1.950 and to reviews and
S evaluations under section 204 of the Legislative I~eorg.u]iza-
9 tion Ac, of 1970, and shall not be restricted to only those
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