EXECUTIVE BRANCH ACTION ON REPORTS BY THE GENERAL ACCOUNTING OFFICE ON AUDITS AND INVESTIGATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05844A000100010005-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: July 31, 2000
• Sequence Number: 5
• Publication Date: April 1, 1959
• Content Type: MEMO

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'ice r i_`
EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
April 1, 1959 CIRCULAR NO. A-50
SUBJECT: Executive branch action on reports by the General Accounting
Office on audits and investigations
1. Purpose. Agencies of the executive branch have regularly given
careful attention to reports made by the General Accounting Office in
connection with its audits and investigations. This Circular establishes
a uniform policy and procedure for such consideration by agencies of the
executive branch, including where appropriate the initiation of follow-up
action and the subsequent filing of a statement of views and results with
the Bureau of the Budget.
2. Policy on General Accounting Office reports. The General Account-
ing Office has the responsibility for making independent audits and in-
vestigations of the agencies and functions of the executive branch.
General Accounting Office reports, although varying in form and scope,
often contain good independent reviews of executive branch operations as
well as significant findings. In some cases, suggestions and recommenda-
tions are offered for changes in laws, policies, methods, and procedures.
Findings, suggestions, and recommendations in the reports will be
given careful consideration by the respective agencies of the executive
branch. The agencies are not obliged to accept these findings, sugges-
tions, and recommendations. However, it is the intention that system-
atic consideration of the reports result in constructive action on every
recommendation where such action is appropriate from the viewpoint of the
executive branch.
3. Action by the agencies. The head of each agency shall provide
for the systematic consideration of all General Accounting Office reports
on the work of his agency -- both those on which agency statements are
required by paragraph 4 below and those additional General Accounting
Office reports on which agency statements are not required. When review
in the agency indicates that action would be appropriate, the head of the
agency shall promptly initiate such action. Where the action requires
clearance by a central agency of the Government, or where it requires
action regarding legislation or appropriations to put it in effect, the
agency will proceed through the usual channels.
4. Requirement for agency statement to the Bureau of the Budget.
Within 60 calendar days after formal transmittal of a General Accounting
Office report to the agency, the head of the ,4ge ey_willcomment one t
(No. A-50)
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to the Bureau of the Budget whenever the report is addressed to the
Congress, to a congressional committee, or to the agency head by the
Comptroller General.
Such a statement is not required on reports addressed to subordinate
officials of an agency, or transmitted by subordinate officials of the
General Accounting Office, unless specifically requested by the Bureau
of the Budget. The statement may be omitted if none of the points
mentioned in paragraph 5 is applicable to the report.
5. Content of agency statement. The statement to the Bureau of
the Budget required by paragraph shall be submitted in an original and
3 copies and will cover the following points regarding the General Ac-
counting Office report:
a. If specific recommendations to the President, to the
Congress, or to the Bureau of the Budget are included,
the agency head should indicate his views on them and
state what events, if any, have taken place with
respect to the subject concerned since the time the
report was prepared.
b. If the report contains financial statements which are
accompanied by a qualified audit opinion, or a dis-
claimer of opinion -- as distinguished from an un-
qualified opinion -- that they fairly present the finan-
cial position and results of operations, the agency head
should explain the steps he is taking to remove the dif-
ficulties insofar as they are within the power of the
agency to correct.
c. If the report indicates a violation of law, the agency
head will explain his views and if a violation of law
is established, he will state what is being done to
prevent recurrence. If additional agency action is re-
quired (as in the case of violations of the Antideficiency
Act, Section 3679 of the Revised Statutes, as amended),
the agency head will include comments on the status of
his action in this respect.
d. If the report contains significant findings or recom-
mendations to the agency, the agency head will give a
brief statement of his views on them and the current
status of the matter. It will not be necessary to cover
those findings where the report itself indicates that
sufficient corrective action has been taken.
Copies of correspondence with the General Accounting Office may be
used, where appropriate, in reporting to the Bureau of the Budget on
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the above items (see paragraph 6). If action is incomplete at the
time the statement is made to the Bureau of the Budget, a supplementary
statement should be made when the matters outstanding are disposed of.
6. Relationship to comments on a preliminary draft of a report.
In some cases, the General Accounting Office furnishes to the agency
concerned a preliminary draft of its proposed report and invites com-
ments prior to the time that the report is put into final form. The
agency statement required by this Circular relates to the actual report,
not to preliminary drafts. However, where the final report and the pre-
liminary draft are substantially the same, the agency head may submit
to the Bureau of the Budget copies of his comments on the draft, but he
must also submit such additional data as required by paragraph 5 above.
7. Specific reports to congressional committees. Occasionally
congressional committees request an agency head to express views in
writing on a General Accounting Office report. In such cases, two
copies of the communication to the committee will be promptly furnished
to the Bureau of the Budget for its information. Where the communica-
tion to the committee includes an expression of views on proposed or
pending legislation, it will be subject to coordination and clearance
in advance in accordance with the regularly established procedures
set forth in Bureau of the Budget Circular No. A-19. Similarly, where
a statement of agency views deals with matters pertaining to other
agencies or with executive budget policies, four copies of the proposed
communication will be furnished to the Bureau of the Budget for coordina-
tion in advance of transmittal to the committee.
8. Effective date and transitional requirement. This Circular is
effective with respect to reports issued by the General Accounting Of-
fice after April 1, 1959.
In some cases, the Bureau of the Budget may desire comments on a
General Accounting Office report which was issued before April 1, 1959.
Such comments will be requested in writing and will be due within 60
calendar days after the request. The information desired will be along
the lines indicated in paragraph 5 unless otherwise specified in the
request.
By direction of the President:
MAURICE H. STAN S
Director
(No. A-50)
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