BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP57-00384R000200080004-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 42
• Document Creation Date: December 16, 2016
• Document Release Date: January 14, 2005
• Sequence Number: 4
• Publication Date: July 13, 1950
• Content Type: REGULATION

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81ST CONGRESS t HOUSE OF REPRESENTATIVES NoEPO T
2d Session f
BUDGETING AND ACCOUNTING PROCEDURES ACT OF
1950
JULY 13, 1950.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. DAWSON, from the Committee on Expenditures in the Executive
Departments, submitted the following
REPORT
[To accompany H. H. 90381
The Committee on Expenditures in the Executive Departments, to
whom was referred the bill (H. R. 9038) to authorize the President to
determine the form of the national budget and of departmental esti-
mates, to modernize and simplify governmental accounting and audit-
ing methods and procedures, and for other purposes, having con-
sidered the same, report favorably thereon with amendments and
recommend that the bill as amended do pass.
The amendments are as follows:
Page 6 line 17 striker" Transitory Provisions".
Page 6, Beginning with line 18, strike all "SEC. 103." through line
9, page 7.
Page 7, line 11, strike " 104", insert " 103".
Page 7, line 20, strike " 105", insert " 104".
Page 8, line 2 strike " 106" insert " 105".
Page 18, line 2, strike "Transfers Between Appropriations".
Page 18, Beginning with line 3, strike all"SEC. 201." through line 14.
Page 18, line 16, strike "202", insert "201".
Page 19, line 1, strike "Reductions in Appropriations".
Page 19, Beginning with line 2, strike all of "SEC. 203", through
line 8.
Page 19, line 10, strike "204", insert "202".
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G BU IId AND ACCOUNTING PROCEDURFfs ACT OF 1950
GENERAL STATEMENT
The Commission oil Orga.nizal
Government advocated a general
Many of the present accounting r
the Budget and Accounting Act
tion are outnioded due to the tre:
in the past 30 years. They do
taxpayer with accurate and co
received and expenditures made
with its operations.
II. R. 9038 and companion bill
work for bringing the budgeting, i
of the Government up to date,
of an accounting system incorpor?
mental practices and providing be
Title I of the. bill provides for
procedures, to supplement the B
under a joint and continuous progr
Treasury, and the Director of th
modernized performance budgets
Part II of title I, in autllorizin
General to prescribe the princip
-
ments for accounting; to provide a
of each executive agency and the G
President to discharge their respe
responsibility for maintenance of a
tion of financial reports on the o
Secretary of the Treasury; and (c
agency authority and responsibili
own accounts under the general
requirements established by the
States.
The auditing of the Federal G
will continue to be conducted by
more comprehensive and more selec
with improved agency accountin
Title II provides that no rcqu
thorize subsequent appropriations
the bill makes ample provisi#in for a completely revised and
ion of the-Executive Branch of the
iethods which are now controlled by
nendous growth of our Government
nplete information as to revenue
by the Government in connection
S. 3850 provide a complete frame-
ccounting, and auditing procedures
twig sound commercial and covern-
riodernized budget and accounting
fidget and Accountingg Act of 1921
m designed to bring about improve-
'
nited Stages, the Secretary of the
perations and for effective control
roperty, and other assets.
the establishment of a balanced
basis for integrated accounting for
the results of financial operations
vernment as a whole, and financial
counting systems and the produc-
?rations of the executive agencies
inancial reporting vested in the
:y to establish and- maintain its
rniciples, standards, and related
vernmcnt's financial transactions
the Comptroller General of the
gross, under provisions permitting
we audits, to be developed in line
systems, internal controls, and
for legislation which would au-
)r a department or establishment
ansmitted to the Bureau of the
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BUDGETING AND A
Budget, to the President or to the Congress, by such department or
establishment or any organizational unit thereof, without the prior
approval of the head of the department or establishment. The fore-
going feature is in conformance with the recommendations of the
Commission on Organization of the Executive Branch of the Govern-
ment, since that Commission specifically outlined as its abiding
principle that clear lines of authority and responsibility should extend
within each agency structure "from the top to the very bottom."
In addition, this title also provides for adjustments of appropriations
made necessary by reorganizations.
Title III contains 106 provisions for repeal, in whole or in part, of
existing laws which are obsolete, or would be in conflict with the pro-
visions of the subject bill. Of this total, 89 are either inconsistent
with or superseded by the Budget and Accounting Act or other exist-
ing laws; 13 have been superseded by or modified by appropriation
acts, or can be more appropriately provided for on an annual basis,
in the texts of the various appropriation acts rather than in permanent
law; 3 call for reports having only doubtful value; and the final one
(No. 85), repealing existing requirements of law relating to personnel
ceilings and limitations, is considered by the committee to be unneces-
sary under existing budgetary controls and appropriation procedures.
This section also includes saving provisions made necessary to insure
the continuation of authority granted under the provisions of the
Budget and Accounting Act of 1921 which are not specifically repealed.
RECOMMENDATIONS OF THE COMMISSION ON ORGANIZATION OF THE
EXECUTIVE BRANCH OF THE GOVERNMENT
For the last 3 years a joint accounting program under the leadership
of the Comptroller General of the United States, Secretary of the
Treasury, and Director of the Bureau of the Budget has been making
marked advances in a constructive program for improvement and
i
ng report-
modernization of the Government's accounting and financ
ing. The Commission on Organization in their specific recommenda-
tions closely adhere to the progress and direction undertaken by the
Joint Accounting Program.
In the Report on Budgeting and Accounting by the Commission on
Organization were the following recommendations which have been
incorporated fully into this legislation. These recommendations may
be cited as follows:
Recommendation No. 1.-"We recommend that the whole budgetary
concept of the Federal Government should be refashioned by the adop-
tion of a budget based upon functions, activities, and projects: this
we designate as a `performance budget'."
Recommendation No. 3.-"We recommend that the budget estimates
of all operating departments and agencies of the Government should
be divided into two primary categories-current operating expendi-
tures and capital outlays." Budget estimates of all operating depart-
ments and agencies of the Government should be divided into two pri-
mary categories-current operating expenditures and capital outlays.
Recommendation No. 5.-"Therefore, the Commission recommends
that the review and revision by the Estimates Division of the Office
of the Budget be done from the first to the final stages in conjunction
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ACCOUNTIN, PROCEDURES ACT OF 1950
with representatives of the Adnni
"(a) The development of a
are common to various dep
ports)."
Recommendation No. G.-"The
.
opment of much closer relations b
the Office of the Budget and wit
_
personal staff, the Treasur
Dep
.
y
Recommendation No. 7.-"In dea
much greater emphasis on the deve
adequate budget work in the depa
*
es iimat*s. Aprogram or perfo
*J)
Recommendation No. 9.-"The
that authority be given to the Pr
statistical activities and that suc
Director of the Division of Statist
Recommendation No. 11.-"There
v
ouchers and supporting pap
P -11
"(b) But thus Commission re
growth of detail, that a spot s
where the expenditure voucher
checked might be substituted f
T of bringing all these documents
mends that the accrual basis of ace
revenues and expenditures. It reco
mental practices, procedures, nom
public debt accounting, which wo
The bill also contains authority t
.
continue the maintenance in the Go
priation, expenditure, limitation, rec
controls are sufficient to enable himmm
The Commission also recommc
Business Enterprises, that the Congr
.
Corporation Control Act of 1945 to
shall prepare annually business-typo
g
;
(c) 'rho coordination of cer[ain admiucstrative activities which
istrativo Management and Fiscal
consistent policy and program for
organization and mana
ement
ments (such as statistics and re-
)mmission recommends the devel-
tween the constituent divisions of
such agencies as the President's
inowith the budgets of the execu-
oping of policies and standards to
treats themselves, and compara-
mance budget should be the
)mmission therefore recommends
sident to effect improvements in
cal Services in the Office of the
ore the Commission recommends:
s to Washington be stopped as
mmends, in view of the fantastic
mpling process at various places
r much of the present procedure
to Washington."
ask force on accounting
should be applied to both
,nclature, better inventory= and
the Comptroller General to dis-
eral Accounting Office of appro-
ipt, and personal ledger accounts
o perform properly the functions
led, in -its Report on Federal
wnaed Government -corporations
uch rules and regulations as the
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 5
President may establish as to the date of submission, the form and
content, the classifications of data, and the manner in which such
budget program shall be prepared and presented.
The report on the Post Office includes a recommendation (No. 6) to
the effect that a business-type form of budget, accounting, and audit
under the Government Corporation Control Act of 1945 be applied
to the Post Office.
The Post Office Department is exempted generally from the ac-
counting provisions of this bill. This is necessary in view of the fact
that the House has recently passed a separate bill (H. R. 8923) which
would put into offect the same general provisions applying to all
other agencies of the Government under the subject bill with certain
other authorizations and controls applying specifically to that
Department.
This bill does not create an Accountant General under the Secretary
of the Treasury with authority to prescribe general accounting
'methods and enforce accounting procedures as set out in Report on
Budgeting and Accounting, Recommendation No. 10 (p. 39).
Under a policy established and steadfastly adhered to by the Con-
gress, the Comptroller Qeneral of the United States, as an agent of
the Congress, has been vested with authority to prescribe accounting
requirements for each of the executive agencies in order that appro-
priate audits might be made thereof and that the Congress might
exercise control of appropriations and expenditures in the executive
branch. The committee feels that this long-established policy of
Congress is an essential legislative control over public financial trans-
actions, and must be held inviolate. It has, therefore, rejected this
recommendation of the Hoover Commission. The bill does fill in
certain gaps in the Comptroller General's authority, however, and he
will be enabled to exercise all his authority on the same high level of
principles, standards, and related requirements, consistent with the
assumption by the agencies of their responsibility to develop their
own detailed systems and procedures so that accounting may be made
fully effective for management purposes.
The bill also vests, through appropriate provisions, in the Secretary
of the Treasury authority for central accounting and financial report-
ing, and in the heads of all departments and agencies authority to
establish accounting systems best suited to their own needs within the
framework of the principles and standards prescribed by GAO.
The Commission on Organization of the Executive Branch, in its
concluding report, stated that-as a matter of principle, the Commis-
sion has not been concerned with matters of substantive policy. In
practice, however, it has often been extremely difficult to separate
policy from administration, although a conscientious effort has been
made to do so.
In the opinion of this committee, not only is the question of appoint-
ing an Accountant General to supersede the representative of Con-
gress-the Comptroller General-a substantive policy matter, but
the committee further believes that this proposal also concerns pri-
marily the legislative branch of the Government rather than the execu-
tive branch, over which the Hoover Commission had no jurisdiction in
conducting its survey for reorganizations in the Federal Government.
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6 BUDGETING AND ACCOUNTP3G
TITLE I--BUDGETING
Title I on budgeting and accounttin
on budgeting, clarifies the Budget
emphasize authority for the prepar
with financial information in terms o
Government, and a segregation of ope
ment programs. Technical amend
Budget and Accounting Act are m
develop budgetary inforina.tion in th
the financial program of the Gover
placed on the development by the P
the Budget of plans for the organize
ment of the executive branch with a
service, and improvements in the gat
publication of statistical information
authority thus granted would supple
to these matters.
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ROCEDURES ACT OF 1950
kI`4`4D ACCOUNTING
contains two parts. The first,
ad Accounting Act of 1921 to
,lion of a performance budget
functions and activities of the
'sting and of capital and invest-
.ents to the. provisions of the
.dc in aid of the objective to
manner best suited to present
anent. Increased emphasis is
'esident through the Bureau of
ion, coordination, and manage-
iew to efficient and economical
icring, compiling, analysis, and
by the executive branch. The
tent existing authority relating
ANALYSIS---1 ITLE I
PART I-BUD ETING
DEFINITI L N
Section 101
This section adds a definition of th
tion 2 of the Budget and Accounting r
the use of this term is intended to inc]
contract authorizations wherever apt
term "appropriations" to see-
et of 1921 to make it clear that
ide nonappropriated funds and
'opriate.
Section 102
Subsection (a).-This subsection re
mitted to Congress during the first
instead of on the first day as presen
some flexibility in the tiuiin~ of the
Union message, the Economic Repor
(b), and (c) provide for the inclusion
detail as the President may determ
which are intended to make the budg
standable and which follow the reco
on the Organization of the Executi
Item (a) provides specifically that th
formance basis, under which emphasis
activities and justifications will be
possible on workloads and unit-cost 9
the budget to be tailor-made for each
budget request in the most practicab
Item (b) specifically requires a separ
from (2) capital and investment prop
classifications, item (c) permits the us
cations, such as grants, etc.
Item (d) requires a summary reco
appropriations, to provide the Congr
on expenditures of its action on app
uires that the budget be trans-
5 days of each regular session,
ly required. This will permit
submission of the State of the
t, and the budget. Items (a),
ii the budget, in such form and
ne, of certain specified items,
t more informative and under-
rnendations of the Commission
c Branch of the Government.
budget be presented on a per-
will be placed on functions and
lased to the maximum extent
ata. This process will permit
item in orJer to present each
La and understandable manner.
Lion of (1) operating programs
ions. In addition to these two
of any other desirable classifi-
nciliation of expenditures with
s with information on the effect
opriations.
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950
Items (e) and (f) clarify present wording of the Budget and Ac-
counting Act with respect to estimated expenditures, estimated re-
ceipts and proposed appropriations.
Items (g) and (h) require that the budget give information on ap-
propriations for the past year as well as for the current year and the
budget year. This provides for showing full information on a 3-year
basis, not only with respect to receipts and expenditures, but also with
respect to appropriations. The present requirement for the showing
of unobligated balances of appropriations as of November 1, is elimi-
nated.
Items (i), (j), and (k), requiring balanced statements of the con-
dition of the Treasury, facts regarding the bonded and other indebted-
ness of the Government, and other financial statements, are identical
with present provisions.
Subsection (b).-This subsection, relating to the submission of
proposed supplemental and deficiency appropriations, is the same as
present law except for clarification in terminology.
Subsection (c).-This subsection provides that, except as otherwise
provided in the Budget and Accounting Act, the content, order and
arrangement of the proposed appropriations and statements of expend-
itures contained in the budget shall conform to requirements pre-
scribed by the President. Subsection 204 (b) of the Budget and.
Accounting Act, relating to proposed lump-sum appropriations is
eliminated, as the provisions thereof are now obsolete.
Subsection (d).-This subsection requires the submission, whenever
a basic change is made in the form of the budget, of supplementary
notes and tables to relate the various items in the budget in which
such change is made to the corresponding items in the budget of the
prior year. The obsolete language pertaining to the alternative
budget for the fiscal year 1923 is eliminated.
Subsection (e).-This subsection clarifies present terminology. The
phrase relating to the preparation of the "alternative budget" is
deleted, in accordance with the change made by subsection (d).
Subsection (f).-This subsection places responsibility for the prepa-
ration of the departmental estimates on the head of the agency. This
will serve to bring provisions of the Budget and Accounting Act in
line with recommendations of the Commission on Organization of the
Executive Branch to strengthen the authority of the Department head
for budget formulation.
Subsection (g).-This subsection provides that the President shall
determine the date for submission of the departmental requests for
appropriations to the Bureau, as a substitute for the present require-
ment that such requests be submitted on or before September 15.
The purpose of this subsection is to provide flexibility in the timing
of the submission of departmental requests for appropriations. The
wording of this subsection has also been revised to be consistent
with the changes made in other sections of the bill.
Subsection (h).-This subsection makes no substantive change; it
merely provides clarifying language.
GOVERNMENT STATISTICAL ACTIVITIES
Section 103 .
This section clarifies the present law in accordance with the recom-
mendations of the Commission on Organization of the Executive
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f3 BUDGETING AND ACCOUNTING
Branch with respect to the super
Government's statistical activities, ar
and not in substitution for, the exis
the Budget with respect to Govern
activities.
Section 104
This section emphasizes the resp
Budget for improving the organiz
executive branch in accordance wit
Commission on Organization of th+
intended to be in substitution for the
of the Budget with respect to Govern
ment.
Section 105
This section amends the Govern
of 1945 to make it consistent with
as amended by section 102 of this
budgets of agencies subject to the 19
ACCOUNTING Al
Part II of title I comprises a con
Act of 1950. II. R. 90:38 embodies
the cooperative program which is be
ship of the Comptroller General of t'
of the Treasury, and the Director
improve the Government's account
diting. The provisions of this part
of the budgetary improvements pro
This part spells out clear-cut respo
same time providing for their exer
cooperation toward (lie common goal
reporting, budgeting, and auditing o'
The careful allocation of responsib
integrated accounting system for the
phasis is placed on the developmen
systems as the foundation for fuianci
necessary financial information. Pr,
improvement and simplification of
Government and a specific basis is I
selective performance of the indepe
counting Office to the fullest extent
tions. This legislation will provide fl
for putting into effect more economi
auditing procedures in order to obta
now going forward under the joint
solid foundation for carrying out
program.
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PROCEDURES ACT OF 1950
ision and coordination of the
1 is intended to be in addition to,
ing authority of the Bureau of
Went statistical and reporting
risibility of the Bureau of the
Lion and management of the
i the recommendations of the
Executive Branch. It is not
existing authority of the Bureau
went organization and manage-
nent Corporation Control Act
ie Budget and Accounting Act
gill as to date of submission of
5 act.
D AUDITING
plete Accounting and Auditing
(he principles and objectives of
rig conducted under the leader-
,Lc United States, the Secretary
f the Bureau of the Budget to
ig, financial reporting, and au-
ill also facilitate the attainment
idcd for elsewhere in the bill.
ibilitics and duties while at the
ise in proper relationship and
of making accounting, financial
the greatest value.
lities is designed to produce an
Government as a whole. Em-
and use of agency accounting
d control and the production of
)vision is made for progressive
the present accounting of the
id for more comprehensive and
dent audit by the General Ac-
)racticable at the site of opera-
xibilitY that is urgently needed
al and efficient accounting and
n maximum benefits from work
recounting program and lays a
c policies and objectives of the
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BUDGETING AND ACCOUNTING 0
ANALYSIS-PART IT, TITLE' I
SHORT TITLE
Section 110
This section provides a short title, "Accounting and Auditing Act
of 1950."
DECLARATION OF POLICY
Section 111
This section declares the congressional policy that:
(a) The accounting of the Government provide full disclosure of
the results of financial operations, adequate financial information
needed in the management of operations and the formulation and
execution of the budget, and effective control over income, expendi-
tures, funds, property, and other assets.
(b) Full consideration be given to the needs and responsibilities
of both the legislative and executive branches in the establishment
.~' of accounting and reporting systems and requirements.
(c) The maintenance of accounting systems and the producing of
financial reports with respect to the operations of executive agencies,
including central facilities for bringing together and disclosing infor-
mation on the results of the financial operations of the Government as
a whole, be the responsibility of the executive branch.
(d) The auditing for the Government, conducted by the Comp-
troller General of the United States as an agent of the Congress be
directed at determining the extent to which accounting and related
financial reporting fulfill the purposes specified, financial transactions
have been consummated in accordance with laws, regulations, or
other requirements, and adequate internal financial control over
operations is exercised, and afford an effective basis for the settlement
of accounts of accountable officers.
(e) Emphasis be placed on effecting orderly improvements resulting
in simplified and more effective accounting, financial reporting,
budgeting, and auditing requirements and procedures and on the
elimination of those which involve duplication or which do not serve
a purpose commensurate with the costs involved.
(J) The Comptroller General of the United States, the Secretary
of the Treasury, and the Director of the Bureau of the Budget conduct
a continuous program for the improvement of accounting and financial
reporting in the Government.
Section 112
Subsection (a) provides that the Comptroller General, after con-
sulting with the Secretary of the Treasury and the Director of the
Bureau of the Budget, and after considering the needs of other
executive agencies, shall prescribe the principles, standards, and
related requirements for accounting to be observed by each agency,
including requirements for suitable integration between the accounting
processes of the executive agencies and the accounting of the
Treasury Department.
Subsection (a) also specifies that requirements prescribed by the
Comptroller General shall be so designed as to permit the executive
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epp Qj:
agencies to carry out their individu
under section 113. At the same Lim
a basis for integrated accounting for
of the results of financial operations
and for the Government. as a whol
and control necessary to enable the C
charge thew respective responsibilitic
The subsection directs the Corn
exercise the authority vested in him
Property and Administrative Servic
U. S. C. 235 (b)), thereby assurin
property management responsibilities
Services under that act. The Compt
to exercise, to the extent he deems
in him by section 309 of the Budge
Stitt. 25; 31 U. S. C. 49). This latte
permit the Comptroller General to c
over appropriation and fund account-11
forms and procedures coordinate w
agencies of their responsibilities unde~
sistent with the provisions of this se
scribing authority to be exercised in
all the needs which accounting mus
will bring about appropriate coordin
systems.
Subsection (b) provides that the
cooperate with the executive agene
ment and establishment of the syste
porting required by section 114 of
subsection (b) for accounting system
troller General when deemed by him t
with the principles, standards, and
by him.
Subsection (c) directs the General
counting systems of the executive a
executive agencies concerned, the Se
Director of the Bureau of the Budge
ing systems to the Congress as he d
that there will be proper coordinaticci
such reviews and the audits by the G
Taken as a whole, this section fur
as the agent of the Congress with a
providing for a sound accounting stru
the standpoint of effective financial
on a basis consistent with the proper
financial reporting in the executive
management.
I responsibilities for accounting
the requirements must provide
f individual executive agencies
, and for financial information
ingress and the President to dis-
oller General to continue to
y section 205 (b) of the Federal
Act of 1949 (63 Stat. 389; 41
proper coordination with the
of the Administrator of General
oiler General is also to continue
ieccssary, the authority vested
and Accounting Act, 1921 (42
provision of the subsection will
ercise his prescribing authority
g systems m terms of principles,
ether than in terms of detailed
th the proper assumption by
section 113. An
exercise of
tion, thereby enabling the pre-
lie light of an understanding of
serve and in a manner which
ion of all pleases of accounting
encral Accounting Office shall
s in the development of their
ury Department in the develop-
i of central accounting and rc-
to be approved by the Comp-
be adequate and in conformity
elated requirements prescribed
'lccounting Office to review ac-
available to the heads of the
etary of the Treasury and the
ports on the review of account-
ns_ proper. It is contemplated
neral Accounting Office.
isbes the Comptroller General
etliority and responsibility for
Lure for the Government- from
-ontrol and independent audit
levelopment of accounting and
)ranch as an essential arm of
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RESPONSIBILITIES OF THE EXECUTIVE AGENCIES
Section 113
This section sets out the duties and responsibilities of the head of
each executive agency for the establishment and maintenance of the
systems of accounting and internal control in his agency. It is pro-
vided in subsection (a) that the systems of accounting and internal
control shall provide (1) full disclosure of the financial results of
the agency's activities; (2) adequate financial information needed for
management purposes; (3) effective control over and accountability
for all funds, property, and other assets for which the agency is respon-
sible, including internal audit; (4) reliable accounting results to serve
as the basis for the preparation and support of the agency's budget
requests, for controlling the execution of the agency's budget, and for
providing financial information required by the Bureau of the Budget
under section 213 of the Budget and. Accounting Act, 1921 (42 Stat.
23); and (5) suitable integration of the accounting of the agency with
the accounting of the Treasury Department in connection with central
accounting and reporting responsibilities imposed on the Secretary
of the Treasury by section 114 of the bill.
Subsection (b) provides that the accounting systems of executive
agencies shall conform to the principles, standards, and related re-
quirements prescribed by the Comptroller General.
The intent and purpose of section 113 is to place upon the head
of each executive agency for the first time the clear responsibility
for the establishment and maintenance of an adequate and complete
accounting system. It is not intended that the Comptroller General
normally shall be compelled to prescribe the details of each system
but the system developed by the agencies must conform to the prin-
ciples, standards, and related requirements prescribed by him.
RESPONSIBILITIES OF THE SECRETARY OF THE TREASURY
Section 114
This section recognizes the necessity of providing means for sys-
tematically bringing together and producing information needed re-
garding the results of the financial operations of the Government
as a whole. It recognizes further that central facilities for that
purpose should be in the Treasury Department because of the nature
of the fiscal operations, accounting, and reporting it performs.
Subsection (a) imposes on the Secretary of the Treasury the respon-
sibility for producing financial reports which will make adequate dis-
closure of the results of the financial operations of th
G
e
overnment.
Such reports obviously cannot serve all the many purposes of financial
reporting in the Government, but, they should supply a long-standing
need on the part of the legislative and executive branches and the
public for more useful and understandable presentations of financial
information from the standpoint of, the Government as a whole.
Provision is made for including in these over-all reports such data
as the Director of the Bureau of the Budget may require in connec-
tion with preparation of the Budget and other purposes of the Bureau.
This will not interfere with the authority of the Director to obtain
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12 BUDGETING AND ACCOUNTING
directly from the executive agencies
as he may need from then. To enab
responsibility for central reporting,
rules and regulations requiring from
each corporation and agency subject
Control Act, such financial reports a
necessary.
In order that an appropriate oper
produce the required reports, the Sc
under subsection (b) to reorganize.11
accounting procedures and flannel
Department and to establish organiz
sary for that purpose. The flexibil
the Secretary to establish the interns
Treasury Department on the most
to concentrate functions and respon
facilitate consolidating the account'
those of the Department on a consi
Under subsection (c) the system of
established by the Secret-fir pursuant
with the principles, standards, and
by the Comptroller General of thy;
of the bill.
Important related features of the
sections 112 and 113 for suitable in
processes of each executive agency a
ment where they coincide. This i
financial reports of the Government
and without repetitive recording of
REGULATIONS FOR RECEIPT, RETEiTI+
FUN]
Section 115
Under procedural requirements of
relates, particularly those codified ii
31, United States Code, the moneys
kept, and disbursed upon warrants
Treasury and countersigned in the
vances are required to tc made to
ment for disbursing purposes, foi
appropriation headings. Requisit
being acted on by the Secretary o+
sent to the General Accounting t
by those provisions of law codified
requirements were intended to pro
the receipt and disbursement of tI
therewith warrants are issued b3
countersigned in the General Accc
such matters as the setting up of ?
Government, transfers and adju
writing off of expired appropriation
to disbursing officers:
In order to provide a means for
the duplicating and overlapping of
' PbWP -2 8ARg9g300080004-0
uch other financial information
e the Secretary to carry out this
ach executive agency, including
to the Government Corporation
d related information as may be
tine center will be provided to
,retarv is given broad authority
ty thus provided should enable
tegrated and efficient basis and
ibility in such a manner as will
a remits of other agencies with
tent and reliable basis.
central accounting and reporting
related requirements prescribed
ill are the specific provisions in
e ration between the accounting
L d those of the Treasury Depart-
on a reliable and consistent basis
inancial transactions.
, AND DISBURSEMENT OF PUBLIC
/ft
existing law to which this section
sections 76, 147, and 529 of title
of the United States are received,
i drawn by the Secretary of the
General Accounting Office. Ad-
;lisbursing officers of the Govern-
the most part under separate
ons for such advances before
the Treasury are required to be
)ffice for approval as provided
in section 78 of title 31. These
ride safeguards and controls over
ie public funds, and in harmony
the Treasury Department and
,unting Office in connection with
ppropriations on the books of the
itmen is between appropriations,
balances, and advancing of funds
eliminating in an orderly manner
controls and accounting involving
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 13
the control of disbursements in relation to appropriations, this section
provides authority for modification or elimination of the present pro-
cedures involving the issuance and countersignature of warrants.
The Secretary of the Treasury and the Comptroller General, who now
issue and countersign warrants as a means of control over receipts and
disbursements, are authorized by this section to waive the present
requirements for the use of warrants by joint regulations which would
prescribe simpler and more efficient procedures. This authority will
be exercised when the Secretary of the Treasury and the Comptroller
General determine that sufficient safeguards over the control and
accounting for public funds are otherwise provided. Such regulations
issued by the Secretary of the Treasury and the Comptroller General
may provide further for the payment of vouchers by means of checks.
issued against the general account of the 'Treasurer of the United
States rather than against advances to disbursing officers by individual
appropriations.
It is contemplated that the process of substituting simpler pro-
cedures for those presently required in connection with the issuance
and countersignature of warrants will be based essentially on full
utilization of effective accounting and internal controls established in
the operating agencies supplemented by appropriate independent
audits and the coordinate modification or elimination of central con-
trol processes and accounting operations.
DISCONTINUANCE OF ACCOUNTS IN THE GENERAL ACCOUNTING OFFICE
Section 116
This section authorizes the Comptroller General to discontinue the
maintenance of certain accounts i.n the General Accounting Office
when, in his opinion, the accounting systems and internal control of
the responsible agencies are sufficient to enable him to perform the
functions to which such accounts relate. This is consistent with the
objective to utilize accounting systems established in the operating
agencies to the fullest extent possible for control and audit purposes.
/' Section 117
This section provides certain clarification of authority as the basis
for improvement and simplification of the audit function of the General
Accounting Office on a coordinated basis with the improvement of
accounting and internal control procedures in the agencies:
Subsection (a) provides that, except as otherwise specifically pro-
vided by law, financial transactions of each executive, legislative, and
judicial agency, including but not limited to the accounts of accounta-
ble officers, shall be audited by the General Accounting Office in ac-
cordance with such principles and procedures and under such rules
and regulations as may be prescribed by the Comptroller General of
the United States. It further provides that in the determination of
the auditing procedures to be followed and the extent of the examina-
tion to be made of vouchers and other documents, the Comptroller
General will give due regard to generally accepted principles of audit-
ing. This provides specific authorization to regulate the amount of
detailed audit work to be done in the light of the effectiveness of the
agency's accounting system, related internal control and other proce-
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14 BUDGETING AND ACCOUNTING P OCEDURF.S ACT OF 14350
lures, and of administrative ap~3licat m of statutes and other legal
requirements governing financial trap actions. This opens the. way
to greater use of selective examinat.io 1 of transactions and provides
specific statutory recognition and fo idation for the comprehensive
on-the-site audit program which has seen instituted by the General
Accounting Office as the basis for more effective and efficient discharge
of its responsibilities to the Congre in the audit of the financial
transactions of the Government and the settlement of accounts of
accountable officers. The provisions this subsection are based upon
the principle that external audit and control methods should be devel-
oped by the General Accounting Ofl'i , in balanced relationship with
features of agency accounting, interns control and interrelated proce-
dures, and the more effective the into nal controls, the more efficient
and economical will be the independe t audit.
Subsection (b) implements the fore ping provisions by authorizing
the Comptroller General to require a. y executive agency to retain in
whole or in part accounts of accounts ,le officers, contracts, vouchers
and other documents, which are requ red under existing law, codified
to be submitted to the
nd related pro isions
496
C
r
,
a
.
. S.
in 31 L
General Accounting Office. This wi provide for orderly expansion
of the program for auditing financial ra.nsaetions at the site of opera-
tions in the agencies and avoid the ,ecessity under appropriate cir-
cumstances for submission of docum ?nts to the General Accounting
Office in Washington. It will enable ,resent temporary arrangements
between the Office and executive age acies under which site and com-
prehensive audits are being perfori +d to be placed on a firm and
permanent basis.
Section IIS
Definition of executive agency.-This
Live agency': as used in this part to ni
independent establishment in the cxe,
but excludes from such definition, ex
114, 116, and 119, any Government
the Government Corporation Contrc
841). It is not intended to superse
corporations to maintain their ascot:
Lions made by them. With respect
the Government Corporation Contro
prchensive commercial-type audit of
Accounting Office and for report then
troller General. however, in the caf
the preparation by the Secretary of t
the results of the financial operatic
Government corporations, along wi
furnish the Secretary the financial rc
in subsection (a) of that section. 1
accounts for certain funds are main
Office under present law. The pr
enable the Comptroller General to
same basis with respect to corporatic
tive agencies. Similarly, in the cas
confer on the corporations the aut-h-
section defines the term ccexecu-
tall any executive department or
utive branch of the Government
cept for the purposes of sections
-orporation or agency subject to
,I Act (59 Stat. 597; 31 U. S. C.
to the existing authority of the
ntipg systems under determina-
:o the audit of such corporations,
I Act already provides for a com-
their transactions by the General
eof to the Congress by the Comp-
s of section 114, it is necessary to
he Treasury of reports presenting
as of the Government that the
th the other executive agencies,
ports and information referred to
a the case of a few corporations
a.ined in the General Accounting
-,visions of this section 118 will
liscontinue such accounts on the
as as with respect to other execu-
e of section 119, it is intended to
rity with respect to the adminis-
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 15
trative examination of fiscal officers' accounts when required under
present law.
This section further provides that the term "executive agency" as
used in this part shall not include the Post Office Department except
for the purposes of sections 111 (declaration of policy), 114 (central
accounting and reporting), and 116 (discontinuance of accounts in
General Accounting Office). The reasons for inclusion of the Post
Office Department in the last two sections are similar to those in the
case of the Government corporations. The substance of those pro-
visions in this part affected by exclusion of the Post Office Depart-
ment from the definition is dealt with in H. R. 8923, the Post Office
Department Financial Control Act of 1950, passed by the House of
Representatives, and S. 3829, an identical bill pending in the Senate.
Enactment of that measure, while consistent with these provisions,
will render their application to the Department unnecessary.
Section 119
Administrative examination of accounts.-This section will substan-
tially modify the present legal requirements that the head of each
executive agency perform an administrative examination of fiscal
officers' accounts at the seat of government in Washington. This is
an antiquated requirement inconsistent with the great amount of
decentralization of operations to the field and the development of
more effective means of controlling field operations than through the
administrative examination of vouchers after they have been paid by
disbursing officers or collection documents after the receipt and deposit
of funds. It is also completely inconsistent with the post-audit of
transactions by the General Accounting Office where the accounts
and records of agencies are normally kept. In those agencies where
strictly observed, it results in much unnecessary paper work and
handling and shipping of documents, which in many cases is a more
formality. While these conditions have in part been alleviated b,y
revised procedures under present law, the authority provided by this
section is necessary to attainment of maximum simplification. The
provisions of this section are in accordance with recommendations
growing out of an extensive joint study made by the General Account-
ing Office, Treasury Department, and Bureau of the Budget.
The section authorizes the head of each executive agency to
designate the place where the agency will conduct the administrative
examination of its accounts after payment. It further provides
that with the concurrence of the Comptroller General the administra-
tive examination may be waived, either in whole or in part. Similar
authority is conferred upon the officers responsible for the adminis-
trative examination of accounts for legislative and judicial agencies.
TITLE II-APPROPRIATIONS
Section 201
This section requires approval by the head, of an agency of requests
by any unit of the agency for proposed legislation which, if enacted,
would authorize appropriations. This provides a statutory basis for
present practice and is consistent with the recommendations of the
Commission on Organization of the Executive Branch with respect to
the authority of department heads.
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1G BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950
ADJUSTMENT OF APPROPRIAT X)NS FOR REORGANIZATIONS
Section 202
This section provides for the adj stment of appropriation accounts
and the transfer of balances in onnection with reorganizations.
Provisions similar to subsection (b) are ordinarily included in reorgan-
ization plans. This is intended t simplify the administration and
accounting pertaining to reorganiz ions.
REPEALS AND SA ING PROVISIONS
Title III repeals over a hundred !ts or parts of acts relating mainly
to the compilation of the estimates and the furnishing of certain finan-
cial data, most of which have been superseded or rendered outmoded
by other existing provisions of 1 w, particularly the Budget and
Accounting Act of 1921. Repeal 3f Heise provisions will clear the
statutes of many requirements whic e, though they had a good purpose
when enacted, do not meet present nditions. Also included in title
III are certain saving provisions w ich are considered to be necessary
in order that no misunderstanding will develop in implementing the
provisions of the proposed legislation.
CON CL SIONS
It is the firm conviction of yo committee that IT. R. 9038 will
accomplish a major advancement in the field of budgeting and account-
ing in the Federal Government, and that it conforms materially to
the objectives and conclusions o the Hoover Commission in its
Re Tort on Budgeting and Accounti ig.
The long-range objectives of th Commission on Organization of
the Executive Branch of the Government are no different, as far as
results are concerned, from the obj .Gives of the present joint program
to improve accounting in the Federal Government. It is the
opinion of your committee that tIe objectives can he accomplished
in the most realistic way practic Lie under the provisions of this
proposed legislation.
The continuation of the function; of the General Accounting Office,
as an agency of the Congress, i essential to the maintenance of
adequate appropriation and exp editure control by the Congress
over the Federal Government, an I the committee is convinced the
omission of the recommendation or the creation of an Accountant
General will in no way interfere wi e the accomplishment of any other
recommendation of the Commission on Organization of the Executive
Branch of the Government.
It is also the opinion of your ommittee that there is an urgent
need for the improvement of Lu Igceting accounting, and financial
reporting of the Government. 'here fields should be simplified,
modernized, and made effective to the maximum extent possible.
II. R. 9038 will provide the mean for accomplishing these objectives
with the result that the Congress and the President and responsible
officials in each agency will be pro -ided with the information and the
means of control needed for the management of our Federal fiscal
structure. In addition, the ta'Tic' yer will be afforded full disclosure
of the financial operations of Government. While H. R. 9038
Aft
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 17
provides the means for accomplishing these objectives it does not in
any way lessen the control over public expenditures which is exercised
by the Congress itself and by its agent, the General Accounting Office.
The Comptroller General, the Secretary of the Treasury, and the
Director of the Bureau of the Budget, it is contemplated, will continue
their close collaboration for the effectuation of the meritorious objec-
tives of this legislation. Legislation of this keystone importance will
..provide the means to carry out the desire on the part of the Congress
and the public for improvement of efficiency in service and reduction
in the costs of Government.
For the foregoing reasons, your committee urges the passage of
H. R. 9038, as amended.
Attached hereto and made a part of this report are the reports
from the Bureau of the Budget, Treasury Department, and the
General Accounting Office, recommending passage of this bill.
EXECUTIVE OFFICE OF THE PRESIDENT,
BUREAU OF THE BUDGET,
Washington, D. C., July 10, 1950.
Hon. WILLIAM L. DAWSON, Chairman, Committee on Expenditures in the Executive Departments,
House of Representatives, Washington, D. C.
MY DEAR MR. CHAIRMAN: Your letter Of 3uly 6, 1.950, requested my views on
H. R. 9038, a bill to authorize the President to determine the form of the national
budget and of departmental estimates, to modernize and simplify governmental
accounting and auditing methods and procedures, and for other purposes.
I am in general accord with the provisions of this bill and feel that it represents
a real advance in budget and accounting legislation.
The budgeting provisions of H. R. 9038 are designed, for the most part, to
clarify existing provisions of the Budget and Accounting Act of 1921 and to give
evidence of congressional support to certain recommendations on budgeting of the
Commission on Organization of the Executive Branch of the Government. An
analysis of these portions of the bill, as embodied in part I of title I and in title II
of the bill, will be provided in a statement to your committee by Mr. William F.
Finan, Assistant Director for Administrative Management.
The second part of title I, cited as the Accounting and Auditing Act of 1950, is in
keeping with the objectives and goals of the joint accounting program sponsored
by the Comptroller General, the Secretary of the Treasury, and the Director of
the Bureau of the Budget. The Bureau of the Budget endorses this part of the
bill and feels that it provides a practical. basis for continued progress under the
joint accounting program.
The Bureau also concurs in title III of 11. R. 9038, which would repeal many
statutory provisions that are no longer needed.
Sincerely yours,
GENERAL ACCOUNTING OFFICE,
Washington, July '7, 1950.
Chairman, Committee on Expenditures in the Executive Departments,
House of Representatives.
MY DEAR MR. CHAIRMAN: Reference is made to your letter'of July 6, 1950,
requesting an expression of my views on H. R. 9038 entitled "A bill to authorize
the President to determine the form of the national budget and of departmental
estimates, to modernize and simplify governmental accounting and auditing meth-
ods and procedures, and for other purposes."
The provisions of H. R. 9038 are identical to the provisions of S. 3850 which was
introduced in the Senate on June 29, 1950, and is now pending before the Senate
Committee on Expenditures in the Executive Departments. H. R. 9038 is the
result of extended study and discussion between the staffs of both the Senate and
H. Rept. 2556, 81-2--3
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18 BUDGETING AND ACCOUNTING ROCEDUirES ACT OF 1950
the House committees and representativ s of the Bureau of the Budget., the
Treasury Department, anti the General Ace unting Office. It grows out of recom-
mendations made from many viewpoints f r the improvement of budgeting, ac-
counting, financial reporting, and auditing for the Government. It lays a solid
foundation for modernization and improv meat in each of these fields without
doing away with any of the essential cont. "its which must be maintained by the
Congress. I feel strongly that the bill w 11 provide a complete framework for
bringing and keeping the budgeting, aceou Ling, financial reporting, and auditing
procedures of the Government up to date. It is the most progressive and impor-
tant piece of legislation in this field since the enactment of the Budget and Account-
Title I on budgeting and accounting coat ns two parts. The first, on budgeting,
clarifies the Budget and Accounting Act t emphasize authority for the prepara-
tion of a performance budget with finan ial information in terms of functions
and activities of the Government, and a :gregat.ion of operating and of capital
and investment programs, Technical a tendments to the provisions of the
Budget and Accounting Act. are made in ai 1 of the objective to develop budgetary
information in the manner best suited t present the financial program of the
Government. Increased emphasis is pla 'rl by the bill on the development by
the President, through the Bureau of the Budget, of plans for the organization,
coordination, and management of the ex cutive branch with a view to efficient
and economical service, and improvemen in the gathering, compiling, analysis,
and publication of statistical informatio by the executive branch. The au-
thority granted in these fields would supp ?ment existing authority of the Bureau
Part. II of title I comprises a complete Accounting and Auditing Act of 1950.
This legislation embodies the principles nd objectives of the joint accounting
program which is being conducted under tic leadership of the Comptroller General
of the United States, the Secretary of to Treasury, and the Director of the
Bureau of the Budget to improve the Co ernment's accounting, financial report-
ing, and auditing. The provisions of thi, part will also facilitate the attainment
of the budgetary improvements provid d for elsewhere in the bill. Part II
spells out clear-cut responsibilities and uties of the Comptroller General, the
Secretary of the Treasury, and the head of each executive agency, while at the
same time providing for the exercise of f ese duties and responsibilities in proper
ing in the executive agencies and an into
mcnt as a whole. I?hhhphads is placed
and simplification of the present aceou
bads is?laid for more comprehensive and
audit by the General Accounting Office
site of operations. This legislation will
the policies and objectives of the joint
flexibility that. is urgently needed for
Title I I provides for certain transfer.
limit in departments in order to prom
prior approval of dc-partncentt heads be
Budget, the President, or the Congress
antharizing subsequent appropriations.
the President to set up reserves from
tg of the greatest value.
is designed to produce proper account-
ated accounting system for the Govern-
n the development and use of agency
financial control and the production of
elective performance of the independent
to the fullest extent practicable at the
lay a solid foundation for carrying out
'counting program and will provide the
itting into effect more economical and
res in order to obtain maximum benefits
program.
ed by the Congress will be accomplished
ty is provided for transfer of balances of
been superseded or rendered outmode
ticularl_y the Budget and Accounting
when he determines the purposes intvn
by lesser expenditures. Further autho
tain financial data, most of which have
by other existing provisions of law, par-
visions which are considered to be neces-
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 19
sary in order that no misunderstandings will develop in implementing the provi-
sions of the bill.
To achieve full effectiveness and results from IT. R. 9038 will take considerable
time and a great deal of effort on the part of all parties concerned. Nevertheless,
it embodies what I believe to be the factors needed for carrying out budget and
accounting reforms.
H. R. 9038 in its present form has my unqualified and enthusiastic support and
I urge that early action be taken by your committee and by the Congress in order
that the budgeting, accounting, reporting, apd auditing of the Government can
be simplified, modernized and made effective to the maximum extent possible.
The bill before your committee will make this possible with the result that the
Congress and the President will be provided with the information and the means
of control needed for the management of our Federal fiscal structure and the
public will be afforded full disclosure of the financial operations of the Govern-
ment. At the same time the bill in no way lessens the control over public expendi-
tures which is exercised by the Congress itself and by its agent, the General Ac-
counting Office.
There is enclosed for your information a section-by-section analysis of part II
of title I of the bill.
In closing I wish to express my appreciation to both yourself and Rep.resenta-
tive Karsten for the interest you have shown in this legislation. I shall look
forward to appearing before your committee on Tuesday, July 11, at 10 a. m.
Sincerely yours,
LINDSAY C. WARREN,
Comptroller General of the United States.
TREASURY DEPARTMENT,
Washington, July 10, 1950.
Hon. WILLIAM L. DAWSON,
Chairman, Committee on Expenditures in the Executive Departments,
House of Representatives, Washington, D.. C.
MY DEAR MR. CHAIRMAN: This is in response to your letter of July 6, 1950,
requesting my views concerning H. R. 9038, a bill to authorize the President to
determine the form of the national budget and of departmental estimates, to
modernize and simplify governmental accounting and auditing methods and
procedures, and for other purposes.
The Treasury Department, by virtue of the extensive fiscal services and opera-
tions it performs, is vitally interested in seeing that the budgeting, accounting,
and auditing system of the Government is maintained on the soundest basis.
In my opinion H. R. 9038, if enacted, would provided a solid legislative founda-
tion in law for perfecting such a system.
The bill embodies, in all essential respects, the policies and objectives of the
present cooperative program to make the Government's accounting of the greatest
value and also it provides certain needed flexibility for putting into effect more
economical and efficient procedures to obtain maximum benefits from work that
is going forward under that program. An important factor is that the bill estab-
lishes a clear division of responsibilities and duties while at the same time provid-
ing for the exercise of such duties and responsibilities in proper relationship and in
harmony with the common objective of achieving an integrated accounting
system.
As I have indicated, the entire bill is favored as a well-balanced piece of legisla-
tion to provide an effective budgeting, accounting, reporting, and auditing struc-
ture for the Government. Since sections 114 and 115, however, deal with certain
special responsibilities and duties of the Secretary of the Treasury, I shall comment
more specifically on the provisions of those particular sections.
Section 114 of the bill recognizes the necessity of providing means for syste-
matically bringing together and producing information needed concerning the
results of the financial operations of the Government as a whole. It recognizes
further that central facilities for that purpose belong in the Treasury Department
because of the nature of the fiscal operations, accounting, and reporting it must
perform as the center of the Government's finances. With all of this I agree.
Subsection (a) of section 114 places on the Secretary the responsibility for pro-
ducing financial reports which will make adequate disclosure of the results of the
financial operations of the Government. Such reports obviously cannot serve all
the many purposes of financial reporting in the Government. They should,
however, supply a long-standing need on the part of the legislative and executive
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20 13UDGETLCG AND ACCOUNTING Pit CEDURES ACT OF 1950
branches and the puhlie for more complete an I consistent presentations concern-
ing the sources of the Government's revenue nd other income, the purposes for
which public funds are spent, and the Gov',r mcnt's position financially. It is
highly important that only reports which scree 'r truly useful purpose be produced,
that they be made both understandable and meaningful, and that they be an-
chored to a firm foundation of reliable ace inling result.-; obtained from the
various agencies of the Government properly ied in with those central financial
accounts which the Treasury Department niu t maintain because of the general
fiscal operations it performs, '1 he central fit ;ancial reports should meet those
tests and be deAgmed with due regard for the ecds and interests of all concerned.
Of necessity, these central reports must be a outgrowth of the proper develop-
ment. of accounting in the individual agencies of the Government, including the
Treasury Department itself, an the basis of tl c allocation of responsibilities and
duties made by the various provisions of the hill,
To enable the Secretary to carry out his r -sponsibility for central reporting,
authority is given him to issue rules and regula ions requiring from each executive
agency, including each corporation and agency subject to the Government Corpo-
ration Control Act, such financial reports ar d related information as may be
necessary. This authority is, Of course, csse ial and it must be exercised with
due regard for and in proper relationship to the responsibilities and authority
affixed to other agencies of the Government w th respect to accounting.
In order that an appropriate operating cent r will be provided to produce the
required central reports, the Secretary is given broad authority, under subsection
(b) of section 114, to reorganize accounting functions and change accounting
procedures and financial reports within the T casury Department and to estab-
lish organizational and other facilities necesss ry for that purpose. Such flexi-
bility is essential if the internal accounting nd reporting of the Department
is to be placed on the most efficient and integra ed basis and functions and respon-
sibilities are to be concentrated in a manner to u?ilitate consolidating true account-
ing results of other agencies with those of t e Department on a reliable and
The Treasury Department has a -dual interes in accounting-first, with respect
to the financial condition and operations of the Government; second, in the
financial administration of its own bureaus an offices. Just, as the Government
needs an operating center for its accounting an reporting as an over-all matter, so
also the Department's accounting and reporting work must be properly organized
and correlated. There is a natural tendency Mr any organizational unit to have
a self contained accounting system completcl independent of accounting work
performed by others, irrespective of the fact that financial transactions often
mutually affect different bureaus or offices. hat must be done is to determine
the extent to which accounting and reporting n different places is unnecessarily
duplicating or overlapping and to revise acco nting at the points of operations
in such a way that there will be a proper de give of reliance between accounting
systems and sufficient central accounting con rols established to make possible
a more unified system for the Department as a whole.
Under subsection (c) of section 114, the -stem of central accounting and
reporting established in the Treasury Depart gent must be consistent with the
principles, standards, and related requiremen s prescribed by the Comptroller
General of the United States under section 1 2 of the bill. This is consistent
with the declaration of congressional policy con wined in the bill and the intention
that various responsibilities shall be dischar .d in proper relationship and in
harmony with the general objective for an i egrated financial system. From
the standpoint of all concerned, the most satis actory results should be obtained
in building an efficient accounting and reporti system in the Treasury Depart-
ment by having the active assistance and partic pation of the Comptroller General
Important related features of the bill are the specific provisions of sections 112
and 113 for suitable integration between the a (counting processes of each execu-
tive agency and those of the Treasury Departn 'nt where such processes coincide.
This is highly important because I believe that lack of sufficient attention to this
factor in the past has been one of the chief lifficulties in providing adequate
financial reports for the Government in a CO ,osite sense. Such integration is
essential if central reports are to be prepared 'n a reliable and consistent basis
without excessive expense caused by the rcpeti ive recording of transactions and
the confusion involved in attempting to ex lain discrepancies between data
A"k
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 21
Section 115 of the bill gives the Secretary of the Treasury and the Comptroller
,General of the United States authority to issue joint regulations modifying or
'eliminating procedures, under existing law, which involve the issuance and
countersignature of warrants by them. The joint regulations further may
provide for the payment of vouchers by means of checks issued against the
general account of the Treasurer of the United States rather than against advances
to disbursing officers by individual appropriations. These provisions should
afford a means for eliminating in an orderly manner duplication and overlapping
of controls and accounting when more simple and economical procedures can be
substituted with sufficient safeguards with respect to the control and accounting
for the public funds.
The authority to substitute simpler and more economical procedures for those
presently required in connection with the issuance and countersignature of war-
rants is desirable and consistent with the general objectives of the bill in connec-
tion with accounting and auditing. The exercise of this authority should be based
essentially on the full utilization of effective accounting and internal control estab-
lished in the individual agencies responsible for operations supplemented by appro-
priate independent audit performed by the General Accounting Office.
Title III of the bill would repeal a number of existing laws relating mainly to
the submission of budget estimates. The Treasury Department has no objection
to the repeal of any of the laws specified in this title.
The long-range accounting objectives of the Commission on Organization of
the Executive Branch of the Government are no different, as far as results are
concerned, from the objectives of the present "joint program to improve account-
ing in the Federal Government." In my opinion, these objectives can be accom-
plished in the most realistic way under the provisions of this bill.
In view of the need of expediting this report for purposes of the hearings before
your committee on July 11, it has not been possible to secure the customary prior
clearance from the Bureau of the Budget.
Very truly yours,
JOHN W. SNYDER,
Secretary of the Treasury.
In compliance with paragraph 2a of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omitted
is enclosed in black brackets, new matter is printed in italics, existing
law in which no change is proposed is shown in roman):
That this Act may be cited as the "Budget and Accounting Procedures Act of 1950".
TITLE I-BUDGETING AND ACCOUNTING
PART I-BUDGETING
DEFINITION
SEC. 101. Section 2 of the Budget and Accounting Act, 1921 (42 Stat. 20), is
amended by adding at the end thereof the following:
"The term `appropriations' includes, in appropriate context, funds and authoriza-
tions to create obligations by contract in advance of appropriations."
SEC. 102. (a) Section 201 of such Act is amended to read as follows:
"SEC. 201. The President shall transmit to Congress [on the first day] during
the first ,fifteen days of each regular session, the Budget, which shall set forth [in
summary and in detail] his Budget message, summary data and text, and supporting
detail. The Budget shall set forth in such form and detail as the President may
determine-
"(a) functions and activities of the Government, constituting a performance
budget;
"(b) a segregation of operating, and of capital and investment programs;
"(c) any other desirable classifications of data;
"(d) a reconciliation of the summary data on expenditures with proposed
appropriations;
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2lL BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950
"(e) [a. Estimates of] r:stimatcd expel 'litures and proposed appropriations
necessary in his judgment for the support of the Government for the ensuing
fiscal year, except that (estimates] evti atcd cspendilures and proposed ap-
propriations for such Year for the Legisla 've Branch of the Government and
the Supreme Court of the United States s call he transmitted to the President
on or before October 15 of each year, and shall be included by him in the
Budget without revision:
"(f) [b. His estimates of] estimated ceipts of the Government during
the ensuing fiscal year, under (1) laws xisting at the time the Budget is
transmitted and also (2) under the reve sne proposals, if any, contained in
the Budget;
"(g) [c. The] actual appropriations, expenditures, and receipts of the
Government during the last completed & cal year;
"(h) [d. Estimates of the] estimated e. penditures and receipts, and actual
or proposed appropriations of the Government during the fiscal year in
progress;
[e. The amount of annual, permanent or other appropriations, including
balances of appropriations for prior fisc l years. available for expenditure,
during the fiscal year in progress, as of . ,vember 1 of such year:
"(e) [f] balanced statements of (1) t b- condition of the Treasury at the
end of the last completed fiscal year, O the estimated condition of the
Treasury at the end of the fiscal year in ogress, and (3) the estimated con-
dition of the Treasury at the end of the ensuing fiscal year if the financial
proposals contained in the Budget are ad pted;
"(j) [g] all essential facts regarding is bonded and other indebtedness
of the Government; and
"(k) [h] such other financial stateme is and data as in his opinion are
necessary or desirable in order to make nown in all practicable detail the
financial condition of the Government."
(b) Section 203 of such Act is amended to r,ad as follows:
"SEC. 203. (a) The President from time tot no may transmit to Congress such
proposed supplemental or deficiency appropri tions [estimates for such appro-
priations of expendiituresi as in his judgment ( ) are necessary on account of laws
enacted after the transmission of the Budget, or (2) are otherwise in the public
interest. Ile shall accompany such [estimates proposals with a statement of the
reasons therefor, including the reasons for thei omission from the Budget.
"(b) Whenever such proposed supplemental or deficiency [estimates3l appro-
priations reach an aggregate which, if they le d been contained in the Budget,
would have required the President to make a ?ccommendation under subsection
(a) of section 202, he shall thereupon make su it recommendation,"
lc) Section 201 of such Act is amended to r . id as follows:
"SEC. 201. [a] Except as otherwise rovid i in this Act, the contents, order,
and arrangement of the [estimates or-j prop red appropriations and the state-
ments of expenditures and estimated expend' ores contained in the Budget or
transmitted under section 203. and the notes a d other data submitted therewith,
shall conform to [the] requirements [of exis 'ng law] prescribed by the Presi-
dent."
"[b. Estimates for lump sum appropriation contained in the Budget or trans-
mitted under section 203 shall be accoinpanie I by statements showing, in such
detail and force as may be necessary to infor Congress, the manner of expendi-
ture of such appropriations, and of the corr -sponding appropriations for the
fiscal year in progress and the last completed seal year. Such statements shall
be in lieu of statements of like character no required by law.]"
(d) Section 205 of such Act is amended to r id as follows:
"Ssc. 205. Whenever any basic change is in de in the form of the Bud t, the
President, in addition to the Budget, shall t ?tnsueiL to Congress [on the first
day in Deceinl-er 1921, for the scrvices of the car ending June 30, 1923 only, an
alternative budget, which shall be prepared i such form and amounts, and ac-
cording to such system of classification and temization as is, in his opinion,
most appropriate, with] such explanatory not s and tables as may be necessary
to show where tl.e various ite 3 embraced i the Budget of the prior year are
contained in [such alternative] the new Budget,"
(c) The last sentence of secti in 207 of such et is amended to read as follows:
"The Bureau, under such rules and regulatie as the President may prescribe
shall prepare [for him] the Budget, [the allc cative Budget] and any proposed
supplemental or deficiency appropriations [esti tales], and to this end shall have
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1.950 23
authority to assemble, correlate, revise, reduce, or increase the requests for ap-
propriations [estimate] of the several departments or establishments."
(f) Section 214 of such Act is amended to read as follows:
"SEC. 214. [a] The head of each department and establishment shall prepare
or cause to be prepared [designate an official thereof as budget officer therefor,
who] in each year [under his direction and on or before a date fixed by him, shall
prepare the departmental estimates] his requests for regular, supplemental, or
deficiency appropriations."
[b. Such budget officer shall also prepare, under the direction of the head of
the department or establishment, such supplemental and deficiency estimates as
may be required for its work.]
(g) Section 215 of such Act is amended to read as follows:
"SEC. 215. The head of each department and establishment shall [revise the
departmental estimates and submit them] submit his requests for appropriations
to the Bureau on or before [September 15 of each year] a date which the Presi-
dent shall determine. In case of his failure to. do so, the President shall cause
such requests to be prepared [such estimates and date] as are necessary to enable
him to include such requests with the Budget [estimates and statements] in
respect to the work of such department or establishment."
(h) Section 216 of such Act is amended to read as follows:
"SEC. 216. [The departmental estimates and any] Requests for regular, sup-
plemental, or deficiency [estimates] appropriations which are submitted to the
Bureau by the head of any department or establishment shall be prepared and
.submitted [in such form, manner and detail] as the President may determine
[prescribe] in accordance with the provisions of section 201."
GOVERNMENT STATISTICAL ACTIVITIES
SEC. 103. The. President, through the Director of the Bureau of the Budget, is
authorized and directed to develop programs and to issue regulations and orders for
the improved gathering, compiling, analyzing, publishing, and disseminating of
statistical information for any purpose by the various agencies in the executive branch
of the Government. Such regulations and orders shall be adhered to by such agencies.
IMPROVED ADMINISTRATION OF EXECUTIVE AGENCIES
SEC. 104. The President, through the Director of the Bureau of the Budget, is
authorized and directed to evaluate and develop improved plans, for the organization
coordination, and management of the executive branch of the Government with a view
to efficient and economical service.
BUSINESS-TYPE BUDGETS
SEC. 105. The first two sentences of section 102 of the Government Corporation
'Control Act of 1945 (59 Stat. 597), are amended to read as follows: "Each wholly
owned Government corporation shall cause to be prepared annually a business-
type budget [program] which shall be submitted to the [President through the
Bureau of the Budget on or before September 15 of each year the] Bureau of
the Budget, under such rules and regulations as the President may establish
[is authorized and directed to prescribe] as to the date of submission, the form
and content [of], the classifications of data, and the manner in which such budget
program shall be prepared and presented."
PART II-ACCOUNTING AND AUDITING
SHORT TITLE
SEC. 110. This part may be cited as the "Accounting and Auditing Act of 1950".
DECLARATION OF POLICY
SEC. 111. It is the policy of the Congress in enacting this part that-
(a) The accounting of the Government provide full disclosure of the results
of financial operations, adequate financial information needed in the manage-
ment of operations and the formulation and execution of the Budget, and effective
control over income, expenditures, funds, property, and other assets.
(b) Full consideration be given to the needs and responsibilities of both the
legislative and executive branches in the establishment of accounting and reporting
systems and requirements.
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24 BUDGETING AND ACCOUNTING ROCEDURES ACT OF 1950
(c) The maintenance of accounting istems and the producing of financial
reports with respect to the operations g:f executive agencies, including central
facilities for bringing toflether and disc ,sing information on the results of the
financial operations of the Government is a whole, be the responsibility of the
executive brunch.
(d) The auditing for the Government conducted by the Comptroller General
of the United Stales as an agent of the ?ongress be directed at determining the
extent to which accounting and related financial reporting fulfill the purposes
specified, financial transactions have been consummated in accordance with laws,
regulations or other legal requirements, nd adequate internal financial control
over operations is exercised. and afford an effective basis for the settlement of
accounts of accountable officers.
(e) Emphasis be placed on effecting o lerly improvements resulting in simpli-
fied and more effective accounting., fina -al reporting, budgeting, and auditing
requirements and procedures and on to elimination of those which involve
duplication or which do not serve a pure 4e commensurate with the costs involved.
(f) The Comptroller General of the Un led States, the Secretary of the Treasury,
and the Director of the Bureau of the B dget conduct a continuous program for
the improvement of accounting and finan ial reporting in the Government.
Sec. 118. (a) The Comptroller General o1
Secretary of the Treasury and the Director of b
accounting, financial reporting. and budgeta
the other executive agencies, shall prescribe
requirements for accounting to be observed t
quirements for suitable integration between th
agency and the accounting of the Treasury Dr
the Comptroller General shall be designed to F
their responsibilities under section 113 of this
grated accounting for the Government, full di
operations of each executive agency and the
information and control necessary to enable
charge their respective responsibilities. The
exercise the authority vested in him by section
ministrative Services Act of 1049 (63 Slat. 38
the authority vested in him by section 309 of ti
Slat. 25). Any such exercise of authority sha
section.
(b) The General Accounting Office shall cog
development of their accounting systems, inct
development and establishment of the system
quired by section 114 of this part, Such acct
Comptroller General when deemed by him to
principles, standards, and related requireme
(r.) The General Accounting Office shall f
systems of the executive agen,-ies. The resui
the heads of the executive agencies concerned,
the Director of the Bureau of the Budget, and
reports thereon to the Congress as he deems p
Si-.c. 113. (a) The head of each executive a
tents of accounting and internal control desigi
(1) full disclosure of the financial rest,
(4) adequate financial information nt
pose.e;
(3) effective control over and accounts
nssrts for which the agency/ is responsibl
(.;) reliable accounting results to serve
of the agency's budget requests, for cont
for nrovidin-gfn'incial information reps
section 313 of the Budget and Accountir,
(51 suitable integration of the aecoun
of the Treasury Department in tonne
reporting responsibilities imposed on th
114 of this part.
the United States, after consulting the
!e Bureau of the Budget concerning their
-y needs, and considering the needs of
the principles, standards, and related
y each executive agency, including re-
v accounting processes of each executive
parinicnt. Requirements prescribed by
rrmit the executive agencies to carry out
part, while providing a basis for inie-
4closure of the results of the financial
Government as a whole, and financial
he Congress and the President to dis-
Comptroller General shall continue to
?05 (b) of the Federal Property and Ad-
i) and, to the extent he deems necessary,
Budget and Accounting Art, 1921 (48
1 be consistent with the provisions of this
pirate with the executive agencies in the
/ding the Treasury Department, in the
of central accounting and reporting re-
~inting systems shall be approved by the
)e adequate and in conformity with the
'ls prescribed by him.
am time to time review the accounting
is of such reviews shall he available to
to the Secretary of the Treasury, and to
he Comptroller G`enerat shall make such
roper.
gency shall establish and maintain sys-
ed to provide-
Its of the agency's activities;
rde for the agency's management pu--
I4lity for all funds, property, and other
,, including appropriate internal audit;
's the basis for preparation and support
rolling the execution of its budget, and
fired by the Bureau of the Budget under
'i Act, 1.1)21 (42 Slat. 23);
Ling of the agency with the accounting
-lion with the central accounting and
r Secretary of the Treasury by section
Aft
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 25~
(b) The accounting systems of executive agencies shall conform to the principles,
standards, and related requirements prescribed by the Comptroller General pursuant to
section 112 (a) of this part.
See. 111. (a) The Secretary of the Treasury shall prepare such reports for the
information of the President, the Congress, and the public as will present the results
of the financial operations of the Government: Provided, That there shall be included
such financial data as the Director of the Bureau of the Budget may require in con-
nection with the preparation of the Budget or for other purposes of the Bureau. Each
executive agency shall furnish the Secretary of the Treasury such reports and informa-
tion relating to its financial condition and operations as the Secretary, by rules and
regulations, may require for the effective performance of his responsibilities under this
section.
(b) The Secretary of the Treasury is authorized to establish the facilities necessary
to produce the financial reports required by subsection (a) of this section. The Secre-
tary is further authorized to reorganize the accounting functions and install, revise, or
eliminate accounting procedures and financial reports of the Treasury Department in
order to develop effective and coordinated systems of accounting and financial reporting
in the several bureaus and offices of the Department with such concentration of account-
ing and reporting as is necessary to accomplish integration of accounting results for
the activities of the Department and provide the operating center for the consolidation
of accounting results of other executive agencies with those of the Department. The
authority vested in and the duties imposed upon the Department by sections 10, 15,
and 21 of the Act entitled "An Act making appropriations for the legislative, executive,
and judicial branches of the Government for the fiscal year ending June thirtieth,
eighteen hundred ninety-five, and for other purposes", approved July 31, 1894 (28
Stat. 162, 208-110), may be exercised and performed by the Secretary of the Treasury
as a part of his broader authority and duties under this section and in such a manner
as to provide a unified system of central accounting and reporting on the most efficient
and useful basis.
(c) The system of central accounting and reporting provided for herein shall be
consistent with the principles, standards, and related requirements prescribed by the
Comptroller General pursuant to section 112 of this part.
SEc. 115. (a) When the Secretary of the Treasury and the Comptroller 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 v7ith the receipt, reten-
tion, 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 Treas-
urer of the United States: Provided, That in such case the regulations shall provide for
appropriate 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 circumstances, 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 executive, 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 trans-
actions of each executive, legislative, and judicial agency, including but not limited to
the accounts of accountable officers, shall be audited by the General Accounting Office in
accordance with such principles and procedures and under such rules and regulations
as may be prescribed by the Comptroller General of the United States. In the deter-
mination of auditing procedures to be followed and the extent of examination of vouchers
and other documents, the Comptroller General shall give due regard to generally
accepted principles of auditing, including consideration of the effectiveness of account-
ing organizations and systems, internal audit and control, and related administrative
practices of the respective agencies.
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26 BUDGETING AND ACCOUNT NG IOCEDURES ACT OF 1950
(b) Whenever the Comptroller General deter
at the place or places where the accounts and c
normally kept, he may require any executive
accounts of accountable officers, contracts, you
required under existing law to be submitted 1,
such conditions and for such period not exceed
a longer period is agreed upon with the execuli
menns between the Comptroller General and
provisions of this sentence may be extended to th
nines that the audit shall be conducted
her records of an executive agency are
agency to retain in whole or in part
hers, and other documents, which are
i the General Accounting Ofce, under
ng ten years as he may specify, unless
!c agency: Provided. That under agree-
legislative and judicial agencies the
accounts and records of such agencies.
SEC. 118. As used in this part, the term ",
department or independent establishment in t,
but (a) except for the purposes of sections 11.
Government corporation or agency subject to
Act (fig Stat. 597), and (b) except for the purpi
not include the Post Office Department.
,54:e. 119. The head of each executive agency
places, at the seat of government or elsewhere, a
of fiscal officers' accounts will be performed, and
General to waive the administrative examinatic
the same authority is hereby conferred upon l
trative examination of accounts for legislative a
Ssc. 201. No requests for legislation, which,
appropriations for a department or establishmev
merit, shall be transmitted to the Bureau of L
Congress by such department or establishment.
without the prior approval of the head of such di
.eecutive agency" means any executive
to executive branch of the Government
116. and 119 shall not include any
the Government Corporation Control
ies of sections 111, 114, and 116 shall
is authorized to designate the place or
which the administrative examination
with the concurrence of the Comptroller
it in whole or in part: Provided, That
e officers responsible for the adminis-
A judicial agencies.
if enacted, would authorize subsequent
t in the executive branch of the Govern-
re Budget, to the President, or to the
or by any organizational unit thereof,
partment or establishment,
t function or an activity is transferred
,enl or establishment to another agency
with funds in the applicable existing or neeel
accounts and thereafter accounte=d for as one fit
n activity so transferred or assigned,
by the department or establishment to
Sec. 301. (1) [Ssc. 10. That section sit
approved August twenty-fourth, nineteen I
read as follows:
"Sue. 6. That there shall be submitted
Estimates following every estimate for a
f the sundry civil appropriation Act
undred and twelve, is amended to
hereafter, in the annual Book of
eneral or lump-sum appropriation,
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except public buildings or other public works constructed under contract, a
statement showing in parallel columns:
"First, the number of persons, if any, intended to be employed and the rates
of compensation to each, and the amounts contemplated to be expended for each
of any other objects or classes of expenditures specified or contemplated in the
estimate, including a statement of estimated unit cost of any construction work
proposed to be done; and
"Second, the number of persons, if any, employed and the rate of compensation
paid each, and the amounts expended for each other object or class of expenditure,
and the actual unit cost of any construction work done, out of the appropriation
corresponding to the estimate so submitted, during the completed fiscal year
next preceding the period for which the estimate is submitted.
"Other notes shall not be submitted following any estimate embraced in the
annual Book of Estimates other than such as shall suggest changes in form or
order of arrangement of estimates and appropriations and reasons for such
changes."]
(2) SEC. 4. That the act entitled "An Act limiting the appropriation of certain
moneys for the preparation, issue, and re-issue of certain securities of the United
States, and for other purposes," approved May twenty-third, eighteen hundred
and seventy-two, and all other acts and parts of acts making permanent appro-
priations for the expenses of the national loan, except the second section of the
act approved July fourteenth, eighteen hundred and seventy, entitled "An Act
to authorize the refunding of the national debt," are hereby repealed, this repeal
to take place on the first day of July next; [and hereafter the Secretary of the
Treasury shall annually submit to Congress detailed estimates of appropriations
required for said expenses;]
(3) For payment of certain judgments, including costs of suit, which have been
rendered by the United States courts on mandate of the Supreme Court of the
United States and by the circuit court of Fond du Lac County, Wisconsin, and not
appealed, for which the United States is liable, certified to Congress at its present
session by the Attorney General in House Document Numbered Six hundred and
sixty-nine, except the two judgments in favor of the Coca-Cola Company, fifty-
seven thousand three hundred and seventy-two dollars and seventy-nine cents,
together with such additional sum as may be necessary to pay interest at a rate
not exceeding four per centum per annum on the respective judgments as may be
authorized by law from the date thereof: Provided, That none of the judgments
herein provided for shall be paid until the right of appeal shall have expired[:
Provided further, That hereafter estimates for the payment of all judgments against
the United States, including judgments in Indian depredation claims and of United
States courts shall be transmitted to Congress through the Treasury Department
as other estimates of appropriations are required to be transmitted].
(4) SEC. 5. That from and after the first day of July, eighteen hundred and
eighty-two, and of each year thereafter, the Secretary of the Treasury shall
i
ti
ons
a
cause all unexpended balances of the permanent and indefinite appropr
for collecting the revenue from customs which shall have remained upon the
books of the Treasury for two fiscal years to be carried to the surplus fund and
covered into the Treasury. [And it shall be the duty of the Secretary of the
Treasury to include in his next estimates to Congress, and annually thereafter,
a statement specifying in detail the number and class of officers and employees
of every grade and nature, with the rate of compensation to each, that may in
his judgment be necessary to properly conduct the business of collecting the
revenue at each port of entry in the United States, together with an estimate of
the amounts required for contingent expenses at each of said ports, and for such
additional expenses of the service as cannot be otherwise specifically provided
for.]
(5) MINTS AND ASSAY OFFICES
All laws and parts of laws, to the extent that they make a permanent indefinite
appropriation for the expenses of parting and refining bullion, are repealed to
take effect from and after June thirtieth, nineteen hundred and twelve[, and the
Secretary of the Treasury shall, for the fiscal year nineteen hundred and thirteen,
and annually thereafter, submit to Congress, in the regular Book of Estimates,
detailed estimates for the expenses of this service].
NOTE.-The above bracketed provision of the act of March 4, 1911 (36
Stat. 1292; U. S. C. 31, sec. 583 (4)), requires detailed estimates for parting
and refining bullion. Its repeal is proposed because it has. been. superseded
by sections 201 and 204 of the Budget and Accounting Act of 1921.
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(6) The Secretary of the Treasury ma,
as-sorters, feeders, and other employees,
and miscellaneous items and for the pure
paper-money laundering machines as m
install, maintain, and operate such law
Washington and at the suhtreasuries: Pre
for such purpose shall not exceed $00,00
the same to continue available during
thirteen[: Provided further, That estimate:
for the fiscal year nineteen hundred and f
FEDERAL FARM
(7) For salaries and expenses under ti
by the Act approved July seventeenth, n
the salaries of four members thereof at th
their actual necessary traveling expenses,
as are authorized by said Aet, also not e
in the District of Columbia for such burea
may be necessary to more in order to
Board in the Treasury Building, fiscal y
$100,000. [A detailed statement of cxp
Congress, and hereafter detailed estinnat
Farm Loan Board shall be annually subnii
FEDERAL FARM LOAN' RUREtu:
For salaries and expenses under the Fe
Act approved July seventeenth, nineteei
actual necessary traveling expenses of the
fees, and expenses as are authorized by s
examiners, and such attorneys, experts,
employees in the District of Columbia an
Board may find necessary, $182,080; in
of expenditures hereunder shall be made t
[F.stiniates in detail for all expenditures
for the fiscal year nineteen hundred and n
be submitted to Congress in the annual Pb
(8) [And hereafter the Secretary of k of L?tstimatcs.]
.r shall annually submit estimates in
required for the ensuing fiscal year
eluded in, and carried into the sum
ions for fortifications and other works
it the procurement of heavy ordnance
.ongress in the Book of Estimates for
reafter upon an annual basis,]
expenses of the Signal Service of the
id repair of field electric telegraphs,
=ses, telescopes, heliostats, and other
aetcorological instruments for use on
.ratus (exclusive of exchange service)
ollations and maintenance at military
d material for field artillery; mainte-
ies and cables, including salaries of
pairs, and other expenses connected
information for the Army by tele-
lollars: Provided, That of the receipts
id Telegraph System that have been
states, the sure of one hundred and
ereby, made available until expended
betteruieuts of the system as may be
of such extensions and the cost there-
try of Warj: Provided further, That
iitted to Congress for any further
e district of Alaska].
lie fiscal year eighteen hundred and
in the annual estimates to Congress
penses of the free delivery service.]
Alk
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 29
(12) Not exceeding twenty per centum of the foregoing sum and not exceeding
ten per centum of the sum for investigation as to causes of mine explosions may
be used during the fiscal year nineteen hundred and sixteen for personal services
in the District of Columbia; and for the fiscal year nineteen hundred and seventeen,
and annually thereafter, [estimates shall be submitted specifically for all personal
services required permanently and entirely in the Bureau of Mines at Washington,
District of Columbia, and previously paid from lump-sum or general appropria-
tions;]
(13) For clerk hire, and other services, at eighteen pension agencies during the
first seven months of the fiscal year nineteen hundred and thirteen and in the
office of the disbursing clerk for the payment of pensions during the last five months
of fiscal year nineteen hundred and thirteen and including not exceeding ten
thousand dollars for expenses of consolidating and removing records and equip-
ment of pension agencies, three hundred and seventy-five thousand dollars, or
so much thereof as may be necessary[: Provided, That estimates in detail shall
be submitted for the fiscal year nineteen hundred and fourteen and annually
thereafter for clerks and others employed in the office of the disbursing clerk
for the payment of pensions and the amounts to be paid to each].
(14) That the Secretary of Commerce and Labor shall submit to Congress for
the fiscal year nineteen hundred and five, and annually thereafter, estimates in
detail for all personal services and for all general and miscellaneous expenses for
the Department of Commerce and Labor].
(15) SEc. 12. That to enforce the provisions of this Act and such regulations as
he may -establish in pursuance thereof, the Secretary of Commerce and Labor is
authorized and directed to depute, in addition to the agent and assistant agent of
salmon fisheries now provided by law, from the officers and employees of the
Department of Commerce and Labor, a force adequate to the performance of all
work required for the proper investigation, inspection, and regulation of the
Alaskan fisheries and hatcheries [, and he shall annually submit to Congress
estimates to cover the cost of the establishment and maintenance of fish hatcheries
in Alaska, the salaries and actual traveling expenses of such officials, and for such
other expenditures as may be necessary to carry out the provisions of this Act].
(16) CENSUS OFFICE: The unexpended balance of the appropriation made by the
sundry civil appropriation Act approved March third, nineteen hundred and one,
for salaries and necessary expenses for taking and compiling results of the Twelfth
Census is hereby reappropriated and made available for continuing the work of
taking the Twelfth Census, and for all expenses, including cost of all printing,
arising under and authorized by the Act to provide for a permanent Census Office,
approved March sixth, nineteen hundred and two, including the purchase of
necessary law books, books of reference and periodicals, and manuscripts[: Pro-
vided, That estimates in detail for the expenses of the permanent Census Office for
the fiscal year nineteen hundred and four and annually thereafter shall be sub-
mitted in the regular Book of Estimates].
(17) [Estimates in detail for all expenditures under the Federal Trade Com-
mission for the fiscal year nineteen hundred and seventeen, and annually there-
after, shall be submitted to Congress in the annual Book of Estimates.]
(18) [The Secretary of Labor shall submit to Congress, for the fiscal year
nineteen hundred and fifteen, and annually thereafter, estimates in detail for all
personal services and for all general and miscellaneous expenses for the Depart-
ment of Labor.]
(19) For additional assistants, clerical and otherwise, necessary to establish and
maintain a division of information in the Bureau of Immigration and Naturaliza-
tion, Department of Commerce and Labor, until June thirtieth, nineteen hundred
and eight, fifty thousand dollars, which shall be paid from the permanent appro-
priation for expenses of regulating immigration[: Provided, That detailed esti-
mates shall be submitted in the manner required by law for appropriations re-
quired to meet this object during the fiscal year ninqteen hundred and nine and
thereafter].
(20) [UNITED STATES PENITENTIARY, MCNEII,s ISLAND, WASHINGTON: That
for the fiscal year nineteen hundred and ten, and annually thereafter, the Attorney-
General shall submit estimates in detail for all expenses of maintaining said
penitentiary, including salaries of all necessary officers and employees therefor.]
(21) [For the fiscal year nineteen hundred and fourteen and annually thereafter
estimates in detail shall be submitted for all personal services required in the
Indian Office,]
(22) * * * [Provided, That for the fiscal year 1922 and annually thereafter
estimates of appropriations shall be submitted to Congress in the manner pre-
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scribed by law for expenses arising in tonne
various Liberty Bond Acts and the Victory
(23) [SEC. 3600. The heads of Depart:
expenditures and appropriations to Congre,
shall specify, as nearly as may be convent
mates are derived, and the calculations up
discriminate between such estimates as a
such as are framed upon actual informat-~
officers. They shall also give references to
posed expenditures are, respectively, autl
and the volume and page of the Statutes
as the case may be, and the section of the act
(24) [Sec. 4. Hereafter the estimates for
those for sundry civil expenses, shall be pre
ing to the order and arrangement of the app
And any changes in such order and arran
one office or bureau to another office or b
bureaus desired by the head of any Exccut
note in the estimates. The committees of
priation bills shall, as far as may be prat
arrangement of the respective appropriatio
[hereafter the heads of the several E
officers authorized or required to make c
include in their annual estimates furnishe
inclusion in the Book of Estimates all est
the service of the fiscal year for which tl
special or additional estimates for that fisca.
out laws subsequently enacted, or when d
public service by the Department in whit
such special or additional estimate shall
its imperative necessity and reasons for its
(25) [SEC. 4. When estimates hereafter
mission to Congress do not in form and ar
of section four of the legislative, execut
approved June twenty-second, nineteen hu
Lion of the Secretary of the Treasury, be
requirements of law.]
(26) [SEc. 2. hereafter there shall be sub
to Congress under and as it part of the
estimates for all printing and binding requi
ments, their bureaus and offices, and other
ington, District of Columbia. for each fiscal
hundred and seven no appropriations other
for printing and binding shall be used for s
ment or other Government establishment f
That nothing in this section shall apply to
articles of stationery other than letterheads
of manufacture.]
* * * [Provided. That nothing in sec
tion Act for the fiscal year ending June i
shall hereafter be held to apply to so much
sary to expedite the work of that branch
was formerly known as the Record and Pc
(27) [SEC. 3661. The head of each of t
other public officer who is authorized to h
Congressional Printing Office for the use of
include in his annual estimal.e for appropri
or sums as may to him seem necessary "fu
under the direction of the Congressional
(28) * * * [Provided further, That all
ical Survey, the Coast and Geodetic Survey
Department, and the Signal Service shall
and in detail, and appropriated for separat
(29) [SEc. 3662. All estimates for the
law to be employed shall be founded upon
upon the authority of executive distributio
IA-RDP57-00384R000200080004-0
ROCEDURES ACT OF 1950
lion with the loans authorized by the
liberty Loan Act).
tints, in communicating estimates of
i, or to any of the committees thereof,
it, the sources from which such esti-
~n which they, are founded, and shall
conjectural in their character and
.,n and applications from disbursing
any lab or treaty by which the pro-
u,rized, specifying the date of each,
It Large, or of the Revised Statutes,
in which the authority is to be found.]
expenses of the Government, except
aced and submitted each year accorcl-
?opriat ion Acts for the year preceding.
;?ment., and transfers of salaries from
,au, or the consolidation of offices or
ye Department may be submitted by
Congress in reporting general appro-
icable, follow the general order and
Acts for the year preceding.]
cccutive -Departments and all other
tdmatcs for tire public service shall
I the Secretary of the Treasury for
mates of appropriations required for
'y are prepared and submitted, and
year shall only be submitted to carry
?emed imperatively necessary for the
they shall originate, in which case
accompanied by a full statement of
,mission in the annual estimates.]
transmitted to the Treasury for sub-
nngement comply with the provisions
ve, and judicial appropriation Act,
dred and six, they shall, under direc-
earranged so as to comply with said
nitted in the regular annual estimates
xpenses for "Printing and binding,"
red by each of the Executive Depart-
Government establishments at Wash-
rear; and after the fiscal year nineteen
.ban those made specifically and solely
ch purposes in any Executive Depart-
i the District of Columbia: Provided
stamped envelopes, or envelopes and
and noteheads, printed in the course
ion two of the sundry civil appropria-
iirticth, nineteen hundred and seven,
if the printing and binding as is neees-
r The Military, Secretary's Office that
ion Office of the War Department].
me Executive Departments, and every
We printing and binding done at the
his Department or public office, shall
t ions for the next fiscal year such sum
printing and binding, to be executed
'rtnter. ]
printing and engraving for the Gcolog-
the hydrographic Office of the Navy
hereafter be estimated for separately
1y for each of said Bureaus].
:rmpensation of officers authorized by
the express provisions of law, and not
i.]
Aft
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 31
(30) [Sac. 3663. Whenever any estimate submitted to Congress by the head
of a Department asks an appropriation for any new specific expenditure, such as
the erection of a public building, or the construction of any public work, requiring
a plan before the building or work can be properly completed, such estimate shall
be accompanied by full [plan] [plans] and detailed estimates of the cost of the
whole work. All subsequent estimates for any such work shall state the original
estimated cost, the aggregate amount theretofore appropriated for the same, and
the amount actually expended thereupon, as well as the amount asked for the
current year for which such estimate is made. And if the amount asked is in
excess of the original estimate, the full reasons for the excess, and the extent of
the anticipated excess, shall be also stated.]
(31) [SEc. 3664. Whenever the head of a Department, being about to submit
to Congress the annual estimates of expenditures required for the coming year,
finds that the usual items of such estimates vary materially in amount from the
appropriation ordinarily asked for the object named, and especially from the
appropriation granted for the same objects for the preceding year, and whenever
new items not theretofore usual are introduced into such estimates for any year,
he shall accompany the estimates by minute and full explanations of all such
variations . and new items, showing the reasons and grounds upon which the
amounts are required, and the different items added.]
(32) [Sac. 3665. The head of each Department, in submitting to Congress
his estimates of expenditures required in his Department during the year then
approaching, shall designate not only the amount required to be appropriated
for the next fiscal year, but also the amount of the outstanding appropriation,
if there be any, which will probably be required for each particular item of
expenditure.]
(33) [That it shall be the duty of the Secretary of the Treasury to submit the
estimates for the Revenue-Cutter Service for the fiscal year eighteen hundred and
ninety-one, and for each year thereafter, in detail, showing separately, the amount
required for pay of officers, rations for officers, pay of crews, rations of crews,
fuel, repairs and outfits, ship-chandlery
and for traveling and contin
ent
x
,
g
-
e
penses. He shall also include in the annual Book of Estimates a statement
showing the authorized number of officers and cadets in the Revenue Cutter
Service, their rank and pay; also the number of men constituting the crews of
vessels in said service.]
(34) [That the Secretary of the Treasury shall for the fiscal year eighteen
hundred and eighty-seven, and for each fiscal year thereafter in the annual esti-
mates, report to Congress the number of persons employed outside of the Dis-
trict of Columbia, as superintendents, clerks, watchmen, and otherwise, and paid
from appropriations for the construction of public buildings showing where said
persons are employed, in what capacity, the length of time, and at what rate of
compensation,]
(35) [; and hereafter the Secretary of the Treasury shall annually report to
Congress in the Book of Estimates a statement of the expenditure of the appro-
priation for "repairs and preservation of public buildings" which shall show the
el amount expended on each public building and the number of persons employed
and paid salaries from such appropriation.]
(36) [and the Secretary of the Treasury shall submit for the fiscal year 1921,
and annually thereafter, an estimate of appropriations to refund and pay back
duties or taxes erroneously or illegally assessed or collected under the internal-
revenue laws, and to pay judgments, including interest and costs, rendered for
taxes or penalties erroneously or illegally assessed or collected under the internal-
revenue laws.]
(37) [And hereafter the Secretary of State shall in the estimates for the annual
expenditures of the expenses of diplomatic and consular service estimate for the
entire amount required for its support, including all commercial agents and other
officers, whether paid by fees or otherwise, specifying the compensation to be
allowed or deemed advisible in each individual case.]
(38) [Hereafter the Secretary of State shall, in submitting estimates for the
consular service, segregate, and submit separately, estimates for rent of consular
offices, and under contingent expenses estimate for the amount required annually
to be expended at consular offices for purposes within the discretion of the Depart-
ment.]
(39) [And hereafter the Secretary of War shall annually submit estimates in
detail for river and harbor improvements required for the ensuing fiscal year to the
Secretary of the Treasury to be included in, and carried into the sum total of, the
Book of Estimates.]
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32 BUDGETING AND ACCOUNTING PR CEDURES ACT OF 1954
(41) fIlereaftor all estimates for fortifica
to be expended at each harbor in each insula
For one clerk. at twelve hundred dollars; o
dollars each; two ward-masters,n at four hun
intendent of buildings, at_ five hundred and
dollars each; in all, fourteen thousand six hu
(
-3,
Estimates for the fiscal year nineteen bun re
under the respective bureaus and offices of th
the rate of compensation of each under appro
3668. The Postmaster-General
fiscal~yearr under each offthe following head
%
t
nitted to Congress for appropria-
cries, modernizing older emplace-
;incer Department, in connection
es of cost shall have been prepared
ens for insular possessions of the
:ongress showing amount proposed
possession.]
-Y HOSPITAL
e chief steward, seven hundred and
dred and eighty dollars; two cooks,
nurses, at three hundred and sixty
fired and twenty dollars each- one
Vi laundresses, at one hundred and
tired and twenty dollars; one super-
twenty dollars; two laborers and
each; six bathhouse attendants, at
waiters, at two hundred and forty
idred and twenty dollars; said sum
eeretary of War, as a part of the
to Army[[ and the estimates for this
f the military establishment].
f the Navy to submit in the Book of
I and two, and annually thereafter,
Navy Department, a Statement in
l during theprevious fiscal year and
nations for 'Increase of the Navy"
shall submit to Congress at each
at will be required for the ensuing
u mat . . .
First. q ransportatton o
Compensation of postmasters.
Second
.
Third. Compensation of clerks in post-of i
Fifth. Compensation of blank-agents and 4ssistants,
Eighth. Ship, steamboat, and way letters.
Ninth. Dead letters.
Tenth. Mail-bags.
Eleventh. Mail locks, keys, and stamps.
Twelfth. Wrapping-paper.
Thirteenth. Office-furniture.
Fourteenth. Advertising.
Fifteenth Balances to foreign countries.
Sixteenth. Rent, light, and fuel for post-o
Seventeenth. Stationery.
Miscellaneous.
hteenth
Ei
.
g
Such estimates shall show the sums paid
names of persons employed in detecting de
(45) Office of the Second Assistant Po
dred and fifty thousand dollar.: Provided, T
for railway transportation[: Provided, Ti a
given in.his annual report, next succeeding
- . d "A
ac+ to
n
priation for transportation of mails by rail
-.. -.__d -nd R e
t
n
under each head, and the names of
t of the miscellaneous fund; but the
redations on the mail, and of other
tmaster General.-For inland mail
'y postal cars, one million two hun-
tat the Postmaster General may use
n-iation as may be spared from it to
i3ufficicnt appropriations in the item
hereafter, in making his estimates
treral shall separate the estimate for
and in case any increase or diminu-
j)y him, the reasons therefor shall be
such increase or diminution]. And
rovide for a deficiency in the appro-
oads for the fiscal year ending June
ine", approved December twenty-
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 33
first, eighteen hundred and seventy-eight is hereby repealed: Provided, That the
Postmaster General shall make no deficiency in the appropriation for the current
fiscal year by placing postal cars on any line.
(46) For the United States Geological Survey: For the Geological Survey,
and the classification of the public lands, and examination of the geological
structure, m?neral resources, and products of the national domain, and to continue
the preparation of a geological map of the United States, including the pay of
temporary employees in the field and office, and all other necessary expenses, to
be expended under the direction of the Secretary of the Interior, four hundred
thousand dollars[; and hereafter the estimates for the Geological Survey shall be
itemized
(47) Hereafter, in lieu of the specific. estimates for personal services now
required by law, there shall be submitted in the Annual Book of Estimates, under
each item of appropriation under "General expenses of the Geological Survey,"
notes showing the number of persons employed and the rate of compensation
paid to each from each of said appropriations during the fiscal year next preceding
the fiscal year for which estimates are submitted.]
(48) [SEC. 4. That hereafter the estimates for appropriations for the Indian
service shall be presented in such form as to show the amounts required for each
of the agencies in the several States or Territories, and for said States and Terri-
tones respectively.]
(49) [After July first, nineteen hundred and fourteen, the estimates for appro-
priations for the Indian Service submitted by the Secretary of the Interior, shall
be accompanied by a detailed statement, classified in the manner prescribed in
the first paragraph of this section, showing the purposes for which the appropria-
tions are required.]
(50) [Hereafter the Secretary of the Interior shall submit in the annual Book
of Estimates, following the estimates for each of the national parks, a classified
statement of the receipts and expenditures for the complete fiscal year next pre-
cedin the fiscal year for which estimates of appropriations are submitted.]
(51) [Insular and Territorial Affairs: For defraying the necessary expenses
incurred in the conduct of insular and other territorial matters and affairs within
the jurisdiction of the Department of Justice, including the payment of necessary
employees at the seat of government or elsewhere, to be selected and their com-
pensation fixed by the Attorney-General, and to be expended under his direction,
twenty-five thousand dollars: Provided, That estimates under this appropriation
shall hereafter be submitted in detail under Legislative, Executive, and Judicial
expenses.]
(52) [Hereafter the estimates for expenses of government in the Territories
shall be submitted through and be subject to revision by the Department of the
Interior.]
(53) [Detailed Estimates For Executive Officers, Clerks, and Employees Below
the Grade of Clerk: The Secretary of Agriculture for the fiscal year nineteen
hundred and eighteen, and annually thereafter, shall transmit to the Secretary
of the Treasury for submission to Congress in the Book of Estimates detailed
estimates for all executive officers, clerks, and employees below the grade of clerk,
indicating the salary or compensation of each, necessary to be employed by the
various bureaus, offices, and divisions of the Department of Agriculture, and shall
include with such estimates a statement of all executive officers, clerks, and em-
ployees below the grade of clerk who may have been employed during the last
completed fiscal year on any lump fund appropriation for the department and
the salary or compensation of each.]
(54) Rent of Buildings, Department of Agriculture: For rent of buildings and
parts of buildings in the District of Columbia, for use of the various bureaus,
divisions, and offices of the Department of Agriculture, $123,689[: Provided,
That the Secretary of Agriculture shall submit annually to Congress in his esti-
mates of appropriations a statement showing what proportion of this appropria-
tion is paid for the quarters occupied by the various branches of the department].
(55) [Hereafter there shall be submitted in the annual Book of Estimates,
under each item of appropriation under the head of "Light-House Establishment,"
notes showing the number of persons employed and the rate of compensation paid
to each from each of said appropriations during the fiscal year next preceding the
fiscal year for which estimates are submitted.]
(56) [Hereafter there shall be submitted, following each estimate for support
of the Light-House Establishment, statements showing the amount required for
each object of expenditure mentioned in each of said estimates, together with a
statement of the expenditures under each of such objects for the fiscal year ter-
minated next preceding the period of submitting said estimates.]
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in of appropriations for the Fish Coinmi:
fiscal year terminated next preceding the pe
unskilled laborers proposed in be paid and
ensuing fiscal yearand those paid at the clo
period when said estimates are prepared an
personal services, the amounts actually 'ix
th
e i ewe
two That
of the current appropriations for printing fo Congress, the sum of six hundred and
~__.-- -.- a,.n.,-...,,,,a t..,, ,,,,,.ta fn reimh?rc. him for exocnditures on the index of
the Treasury shall, at the commencement
amount clue each claimant whose claim h
,1A-RDP57-00384R000200080004-0
WCEDURES ACT OF 1950
following the estimates under the
-ipplies, under the heads of construe-
sus civil government, and following
horized to pay to Albert Ordway, out
yes and the presiding officer of the
[And hereafter all estimates of appropria
the Treasury, and in no other manner; and
he the duty of the head of each Executi
establishment to furnish him, within thirty
payments. if any, matte from such funds d
to
h
..
get
transmitteed by the Secretary of the 'Pre
each regular session.]
(62) Purchase of subsistence supplies:
(63) [Sirc. 7. That no part of anyaman
it and seeking the action of any of the
s, estimates, and appropriations of his
he Treasury shall require, and it shall
e Department or other Government
lay after the close of each fiscal year,
'eds of pnblic property of any kind or
ice, received by said head of Depart-
luring the previous fiscal year for or
other manner in the discharge of his
(-nsation, which was not paid into the
gether with a detailed account of all
firing such year. All such statements,
to the Treasury Department, shall be
.ury to Congress at the beginning of
section five of the Act of June thirtieth,
attites, page seven hundred and sixty-
the Subsistence Department].
y contained herein or hereafter appro-
the payment of (personal services at a
for the same or similar services during
!rson employed at a specific salary be
Aft
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 35
hereafter transferred and hereafter paid from a lump-sum appropriation a rate of
compensation greater than such specific salary, and the heads of departments
shall cause this provision to be enforced: Provided, That this section shall not
apply to mechanics, artisans, their helpers and assistants, laborers, or any other
employees whose duties are of similar character and required in carrying on the
various manufacturing or constructing operations of the Government.]
(64) [That hereafter section seven of the Act approved August twenty-sixth,
nineteen hundred and twelve (Thirty-seventh Statutes, page six hundred and
twenty-six), and any amendments thereto, shall not apply to the payment, out
of moneys appropriated or which may be hereafter appropriated in lump sum
for the Department of Agriculture, for personal services of employees engaged in
strictly scientific or technical work: Provided, That nothing contained herein
shall be construed to authorize the transfer of any person employed at a specific
salary and the payment of compensation from lump-sum appropriations at a rate
greater than said specific salary.]
(65) To pay amounts found due by the accounting officers of the Treasury on
account of the appropriation "Transportation, recruiting, and contingent, Bureau
of Navigation," for the fiscal year nineteen hundred, nine hundred and thirty-nine
dollars and sixty-six cents[: Provided, That the transportation to their homes, if
residents of the United States, of enlisted men and apprentices discharged on
medical survey; and the transportation to the place of enlistment, if residents of
the United States, of enlisted men and apprentices discharged on account of ex-
piration of enlistment, shall hereafter be chargeable to the appropriation "Trans-
portation recruiting, and contingent].
(66) ['ghat no part of the appropriations heretofore, herein, or hereafter made
for "Increase of the Navy" under the Bureau of Ordnance and no part of allot-
ments of appropriations heretofore or hereafter made to said bureau shall be
available for the payment for services or materials used in the construction of
any shop, building, living quarters, or other structures, except such temporary
structures costing not in excess of $5,000 each as may be incident to current work
of said bureau, or for additions and betterments to any existing shore station
facilities unless the appropriation shall in terms specifically authorize such con-
struction or additions and betterments: Provided, That nothing herein shall be
construed as interfering in any way with any existing contract or any work in
progress on the date of the approval of this Act:]
(67) For additional amount for the objects mentioned in the foregoing para-
graph and in lieu of expenditures heretofore made therefor from general appro-
priations for the naval establishment, twenty-six thousand dollars[: and hereafter
it shall not be lawful to expend, for any of the offices or bureaus of the Navy
Department at Washington, any sum out of appropriations made for the naval
establishment for any of the purposes mentioned or authorized in the said foregoing
paragraph].
(68) Increase of the Navy, Equipment: The unexpended balance on June
thirtieth, nineteen hundred and fifteen, shall be transferred to appropriation
"Increase of the Navy, construction and machinery[," and beginning with July
first, nineteen hundred and fifteen, equipment outfits shall be charged to appropria-
tion "Increase of the Navy, construction and machinery]."
(69) Fuel and Transportation: Coal and other fuel for steamers' and ships' use,
including expenses of transportation, storage, and handling the same; maintenance
and general operation of machinery of naval coaling depots and coaling plants;
water for all purposes on board naval vessels; and ice for the cooling of water,
including the expense of transportation and storage of both, $4,500,000[: Pro-
vided, That hereafter, when the lowest obtainable cost of transportation of fuel
between the Atlantic and Pacific coasts of the United States by merchant carriers
is considered excessive, the appropriation "Fuel and transportation" may be
charged with the expense of pay, transportation, shipping, and subsistence of
civilian officers and crews, and such other incidental expenses as cannot be paid
from other appropriations, of naval auxiliaries engaged in the transportation of
fuel: Provided, That the appropriation "Maintenance of naval auxiliaries" is
insufficient therefor].
(70) For allowance for travel, retained and detained pay, clothing not drawn,
and for interest on deposits, payable to enlisted men on discharge, seven hundred
and eighty-eight thousand two hundred and nine dollars and thirty-three cents[:
Provided, That hereafter sums known as detained pay, which have already been
or may hereafter be withheld from the monthly pay of enlisted men of the Army .
in obedience to court-martial sentences, shall, when repaid, become a charge
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,1A-RDP57-00384R000200080004-0
PROCEDURES ACT OF 1950
against the fund "pay of the Army" for Of., year in which said enlisted men have
arms target practice," and "Ordnance stogy
rately the amounts required for such Iran
payment of freight charges on ordnance o
(74) General expenses of public buildin
*
(Provided. That expenditures for traveli
of same, for public buildings" for the re
ment, Bureau, or office, shall be applied
merce when the aggregate amount invol
(78) For contingent expenses of the P
Provided, That hereafter the expendita
Office Department -,hall be expended as
expenses of the Post Office Department'
named in the appropriation for the "
De artment".]
(79) [SEC. 3684. All appropriations f
the act containing such appropriations.]
ment, shall he deemed to be available onl
building Acts, so far as tlie same relate t
7 reasury I,etlnr LAIJOL4, auua. .,o from the estimates of appropriations pr vidingg specifically for the salaries of cer-
tain officers and employees in the Of c, of the Supervising Architect; that the
appropriations for said administrative I-ork, when made, shall be immediately
rdnance-stores ammunition," "Small-
-cs and supplies" shall be available for
by them.3
t of transportation of material in con-
'hasing activities of the Signal Corps,
Service, Air Service, Medical Depart-
ist Artillery Corps, and in connection
fire-control projects at seacoast fortifi-
'e charged to the appropriations for the
'portation charges are required[; and
iropriations shall hereafter carry sepa-
;portation costs].
i;, and issuing arms at the national
and dollars[- Provided, That hereafter
Ordnance Department shall be used in
ordnance stores issued by said Depart-
nt inspector of furniture may continue
d or paid for official or clerical com-
gent fund appropriated to any Depart-
u, or office, and shall, by written orner,
ed does not exceed the sum of $25.]
it Office Department:
pecifically named, and that no moneys
)ended, by the superintendent and dis-
whatsoever other than the specific ones
ontingent expenses of the Post Office
ihle immediately upon the approval of
made to carry into effect the provisions
action, enlargement, extension, remodel-
ar incident- to, or requisite for, the admin-
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950? 37
available for such personal services and all other expenses and supplies, both for
office and field work, as the Secretary of the Treasury may deem necessary and
specially order or approve to carry into effect the provisions of this and subse-
quent Acts relating to the acquisition of land for sites or the enlargement thereof,
or for the construction, enlargement, extension, remodeling, or special repairs of
public buildings under the control of the Treasury Department, including the
annual appropriations under the control of the Supervising Architect: Provided,
That such persons as may be regularly appointed and paid from such appropria-
tions shall be subject, in all respects, to the laws, rules, and regulations respecting
entrance into or separation from the classified civil service of the United States,
and shall be employed only in the Office of the Supervising Architect or in field-
work of construction and repair under his supervision and control, and the Secre-
tary of the Treasury shall annually submit to Congress in the Book of Estimates a
statement, showing the names of all persons whose salaries or compensation are
paid from said appropriations, their duties, and the rate of compensation and the
amount paid to each of them, respectively: And provided further, That this Act
shall not be construed as rendering unavailable for the employment of personal
services in the Office of the Supervising Architect, or for any other purpose
now authorized by law, any of the appropriations or balances of appropriations
made prior to July first, nineteen hundred and seven, for the acquisition of land for
-, sites, or the enlargement thereof, or for the erection, enlargement, extension, re-
modeling, or special repairs of public buildings under the control of the Treasury
Department, or any of the annual appropriations under the control of the Super-
vising Architect. And all appropriations made in full or in part subsequent to
July first, nineteen hundred and seven, for extension of the limits of cost of public
buildings or sites, or for the acquisition of land for sites, or the enlargement thereof,
or for the erection, enlargement, extension, remodeling, or special repairs of public
buildings under the control of the Treasury Department, or for any annual appro-
priation under the control of the Supervising Architect, shall be subject to the
provisions hereof.]
(81) Pay of Assistant Custodians and Janitors: For pay of assistant custodians
and janitors, including all personal services in connection with the care of all
public buildings under control of the Treasury Department outside of the District
of Columbia,, one million and eighty-six thousand two hundred dollars; and the
Secretary of he Treasury shall so apportion this sum as to prevent a deficiency
therein[, and hereafter no other fund appropriated shall be used for this service].
(82) A detailed statement of the expenditure of the appropriations for the
United States Commerce Court shall be submitted to Congress at the beginning
of each regular session thereof.]
(83) [SEC. 26. On or before the first day of July, nineteen hundred and fourteen,
the Secretary of the Interior shall cause a system of bookkeeping to be installed in
the Bureau of Indian Affairs, which will afford a ready analysis of expenditures by
appropriations and allotments and by units of the service, showing for each class
of work or activity carried on, the expenditures for the operation of the service,
for repairs and preservation of property, for new and additional property, salaries
Tim and wages of employees, and for other expenditures. Provision shall be made by
the Secretary of the Interior for further analysis of each of the foregoing classes of
ex enditures, if, in his judgment, he shall deem it advisable.
Annually, after July first, nineteen hundred and fourteen, a detailed statement
of expenditures, as hereinbefore described, shall be incorporated in the annual
report of the Commissioner of Indian Affairs and transmitted by the Secretary of
the Interior to Congress on or before the first Monday in December.
[Before any appropriation for the Indian Service is obligated or expended, the
Secretary of the Interior shall make allotments thereof in conformity with the
intent and purpose of this Act, and such allotments shall not be altered or modified
except with his approval.
[After July first, nineteen hundred and fourteen, the estimates for appropria-
tions for the Indian Service submitted by the Secretary of tAe Interior, shall be
accompanied by a detailed statement, classified in the manner prescribed in the
first paragraph of this section, showing the purposes for which the appropriations
are required.]
(84) [No appropriation or fund made available by this or any other appropria-
tion Act to the executive departments and establishments, including corporations,
for personal services shall be available to pay any increased cost resulting from
the allocation or reallocation hereafter of a position to a higher grade, or resulting
from the creation of a new position, if such increased cost would result in an in-
crease in the total obligations on an annual basis under such appropriation or
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38 BUDGETING AND ACCOUNTING
fund: Provided, That this prohibition sift!
positions to carry out new programs or fun
are made available.]
(85) [SEC. 607. (a) It is hereby declared
the interest of economy and efficiency the
ent establishments or agencies, in the exc
owned or controlled corporations, shall ter
employees thereof as are not required for t
the functions of their respective depart.me
[(b) The heads of departments, and of i
in the executive branch, including Govern
shall present to the Director of the Bureau
Director shall from time to time, but at I
of determining the number3 of full-time
intermittent employees who are paid on a
full-time employees paid nominal compen
and the man-months of part-tine civilian
plovment by intermittent employees who a
basis, and part-tinge employment by empl
as $1 a year or $1 a month) required wvithi
efficient performance of the authorized fun,
establishments, and agencies. The Diree
date of enactment of this Act and from time
after, determine the numbers of full-time es~
employment, which in his opinion are re
sonnet or employment in such departine
thereof shall be released or terminated at
Such determinations, and any numbers of
ment paid in violation of the orders of the
the Congress. Each such report shall i
department, independent establishment, a
in such employees and employment as c
contained in the next preceding report, tog
may have for legislation which would brim
use of Government personnel. As used
States" shall include the Territories and p
[(c) Determinations by the Director of
of employment required shall be by such a
as he may deem appropriate.
[(d) The Director shall maintain a con
contract authorizations in relation to pe
policies as the President may prescribe, r
salaries, wages, or other categories of exp
as a result of reduced personnel require
by the Director for expenditure only tipor
[(e) Casual employees, as defined b
employers hired without compensation m
and reports required by this section.
[(f) Until the cessation of hostilities i
President, the provisions of this section
employed or paid by or through the War
outside the United States, (B) to whom t
of March 24, 1943 (Public Law Numbe
applicable. (C) who are undergoing a con
Maritime Service or who have completed
men[ to ships, or (D) who are on stand-,
As used in this subsection the term "I;
the District of Columbia.
[(q) ((A) Irwicarrying
espect s to thethprovisions
departs
Army and the Department of the
(including Government-owned or co
branch, the Director shall so deter
employees and the man-months of p
relative needs of such departments,
net, that the aggregate number of
full-time equivalent of man-month
.IA-RDP57-00384R000200080004-0
ROCEDURES ACT OF 1950
lions for ;which specific appropriations
to be the sense of the Congress that in
to time, but at least quarterly, there-
employees or man-months of employ-
propriat ion units or organization units
inuous study of all appropriations and
serve from expenditure any savings in
the Civil Service commission, and
be excluded from the determinations
hall 'not be applicable to individuals
Shipping Administration (A) who are
provisions of section I (a) of the Act
such training and are awaiting assign-
of subsection (b) of this section-
nts (other than the Department of the
mtrulled corporations) in the executive
uch civilian employees (including the
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BUDGETING AND ACCOUNTING PROCEDURES ACT OF 1950 39
exceed (i) five hundred and twenty-eight thousand nine hundred and seventy-
five for the quarter beginning October 1, 1946; (ii) five hundred and one
thousand seven hundred and seventy-one for the quarter beginning January
1, 1947; (iii) four hundred and seventy-four thousand five hundred and sixty-
seven for the quarter beginning April 1, 1947; and (iv) four hundred and
forty-seven thousand three hundred and sixty-three after June 30, 1947;
[(B) with respect to the Department of the Army and the Department
of the Navy, the Director shall so determine the numbers of civilian em-
ployees (including the full-time equivalent of man-months of part-time
employment) that at the earliest date practicable, but in no event later than
July 1, 1947, the number shall not exceed one hundred and seventy-six
thousand with respect to the Department of the Army, or one hundred
thousand with respect to the Department of the Navy.
The numbers of employees specified in this paragraph shall be regarded as maxi-
mum numbers, and nothing herein shall be construed to limit the authority of
the Director to establish lower aggregate numbers whenever, in his opinion, the
numbers so specified are in excess of those necessary for the proper and efficient
exercise of the authorized functions of the departments, establishments, and
agencies to which this subsection applies. The procedural provisions of sub-
section (b) of this section shall be applicable with respect to determinations under
Nww~ this par ago raph.
[(2) N provision of law enacted authorizing the employment of personnel
by, or appropriating funds for the compensation of personnel of, or conferring
additional functions upon, any department, establishment, or agency, shall be
construed to authorize the employment of, or payment of compensation to, a
greater number of employees subject to this subsection than the number so
determined by the Director with respect to such department, establishment, or
agency unless such provision of law specifically authorizes the employment or
payment of salaries of personnel in excess of such number, or exempts such de-
partment, establishment, or agency from the provisions of this subsection, and
any such employment or payment not so authorized shall be deemed to be a
violation of the provisions of section 3679 of the Revised Statutes of the United
States (U. S. C., 1940 edition, title 31, sec. 665).
[(3) The provisions of this subsection shall not apply with respect to employees
whose basic compensation is fixed and adjusted from time to time in accordance
with prevailing rates by wage boards or similar administrative authority serving
the same purpose. The provisions of subparagraph (A) of paragraph (1) shall
not apply with respect to officers and employees in the field service of the Post
Office Department or to officers and employees of the Veterans' Administration,
but shall apply with respect to officers and employees outside the United States
whose compensation is fixed in accordance with the Classification Act of 1923,
as amended, and who are not excluded from the provisions of this section by the
provisions of subsection (f). The provisions of subparagraph (B) of paragraph
(1) shall not apply with respect to officers and employees outside the several
States and the District of Columbia.]
Nwe (86) SEC. 3. That it shall be the duty of the heads of the several Executive
Departments, and of other officers authorized or required to make estimates, to
furnish to the Secretary of the Treasury, on or before the first day of October
of each year, their annual estimates for the public service, to be included in the
Book of Estimates prepared by law under his direction [; and the Secretary of the
Treasury shall submit, as a part of the appendix to the Book of Estimates, such
extracts from the annual reports of the several heads of Departments and Bureaus
as relate to estimates for appropriations, and the necessities therefor].
(87) That there are authorized to be appropriated, annually such sums as may be
necessary to enable the President, in his discretion and under such regulations
as he may prescribe and notwithstanding the provisions of any other Act and
upon recommendation of the Director of the Budget, to meet losses sustained
on and after July 1, 1933, by officers, enlisted men, and employees of the United
States while in service in foreign countries due to the appreciation of foreign
currencies in their relation to the American dollar, and to cover any deficiency
in the accounts of the Treasurer of the United States, including interest, arising
out of the arrangement approved by the President on July 27, 1933, for the con-
version into foreign currencies of checks and drafts of officers, enlisted men, and
employees for salaries and expenses: Provided, That such action as the President
may take shall be binding upon all executive officers of the Government: Provided
further, That no payments authorized by this Act shall be made to any officers,
enlisted men, or employees for periods during which their checks or drafts were
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4~ BUDGETING AND ACCOUNTING P OCEDURES ACT OF 1950
Provided further, That allowances and expo
(with the Budget estimates].
(88) Foreign trade and treaty relations:
this purpose to Congress annually
persons to he employed and paid in the D partment of State at Washington,
District. of Columhia'i
(89)
DEPARTMENT OF AI
WORKING CAPITA.
For the establishment of a working capital
limitation, for the payment of salaries and of
tenance and operation of (1) central duplies
services, (2) a central motor-transport servi(
operation of motor-transport vehicles and otl
service for the purchase, storage, handling,
statiouery, supplies, equipment, blank forma
which stocks thereof, not to exceed $200,001
blank forms) at the close of any fiscal year, to
in whole or in part, requirements of the hurt
in the city of Washington and elsewhere, and
tarv, with the approval of the Director of the
may be performed more advantageously as cc
bursed from applicable funds of bureaus, o1Tii
are performed on the basis of rates which shall
for personal services, materials, equipment. (i
depreciation) and other expenses: Provided, '
the fullest extent practicable, be used to mat
separate like services in the bureaus, offices
[: Provided further, That a separate schedule o
and a statement of the current assets and liabi
of the close of the last completed fiscal yea
Budget].
(90) The Civil Service Commission shall su
Budget] estimates of the appropriations neces
disability fund and to continue this Act in full
(91) [Si-.c. 31. That the commission shall s
the Treasury estimates of the appropriations
mission.]
(92) SEC. 35. That there is hereby authori
money in the Treasury not otherwise appropri
aside as a separate fund in the Treasury, to
pensation fund. To this fund there shall be
from time to time appropriate for the purpose.
that may be made to it, is hereby authorized I
the payment of the compensation provided L
surgical, and hospital services and supplies 1
transportation and burial expenses provided h
commission shall submit annually to the Seer
the appropriations necessary for the maintenat
fund, $400,000, without fiscal year
ter expenses necessary to the main-
ling, photographic, and tabulating
v for the maintenance, repair, and
for equipment, (3) a central supply
issuance, packing, or shipping of
and miscellaneous materials, for
in value (except for the value of
iy be maintained sufficient to meet,
Maus and offices of the Department
(4) such other services as the Secre-
Bureau of the Budget, determines
itral services; said fund to be reim-
os, and agencies for which services
include estimated or actual charges
icluding maintenance, repairs, and
'hat such central services shall, to
:e unnecessary the maintenance of
and agencies of the department
expenditures and reimbursements,
lities of the working capital fund as
shall be included in the annual
'mit [annually to the Bureau of the
Lary to finance the retirement and
force and effect,
ibmit annually to the Secretary of
)ccessary for the work of the com-
ed to be appropriated, from any
tied, the suns of $500,000, to be set
be known as (lie employees' com-
dded such sums as Congress may
Such fund, including all additions
o be permanently appropriated for
y this Act, including the medical,
lrovided by section nine, and the
y sections nine and eleven. [The
.Lary of the Treasury estimates of
ice of the fund.]
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 ApprovedB DG 1'INeG AND ACCOUNTING PROCEEDUR S ACT OF
(93) [and the Signal Corps of the Army shall remain a part of the Military
Establishment under the direction of the Secretary of War, and all estimates for
its support shall be included with other estimates for the support of the Military
Establishment]
(94) SEC. 4. The net proceeds of the sale of the surplus War Department real
property hereinbefore designated, and the net proceeds of the sale of surplus
War Department real property, including net proceeds derived from the sale of
surplus buildings heretofore authorized and not heretofore covered into the
Treasury, shall be deposited in the Treasury to the credit of a fund to be known
as the Military Post Construction Fund, to be and remain available until ex-
pended for permanent construction at military posts in such amounts as may
be authorized by law from time to time by the Congress: Provided, That where
the lands sold were originally reserved from the public domain for military
or other public purposes of the United States, before the deposit of the net pro-
ceeds of the sale, into the Treasury there shall be deducted from the net proceeds
of the sale, and paid to the State in which the land is situated in each case the
5 per centum as provided by the Act of March 3, 1845 (Fifth Statutes, page
788), and similar Acts, of the net proceeds of the sale of all such lands as were
reserved subsequently to the passage of such Act or Acts, but excepting and
excluding, however, from such deduction the appraised value of any buildings
or improvements that may have been constructed by the United States upon
the said lands [: And provided further, That estimates of the moneys to be ex-
pended from the said Military Post Construction Fund, including a statement
of the specific construction projects embraced in such estimates, shall be sub-
mitted annually to Congress in the Budget].
(95) [and the Secretary of the Interior is directed to submit, for the fiscal
year nineteen hundred and nineteen and annually thereafter, estimates of the
amounts required for the care, maintenance, and development of the said parks].
(96) The Director of National Park Service shall provide for the care and
maintenance of the national military cemeteries [and for this purpose shall
submit an estimate with his annual estimates to the Bureau of the Budget].
(97) [The aggregate of all estimates of appropriations from the "reclamation
fund" contained in the Bud et for any fiscal year shall be included in the totals
of the Budget for that year.
(98) [The estimates for the support of the navy shall hereafter show, under the
head of Pay of the Navy, the sums allowed for pay of officers belonging to the line,
to the several departments of the staff, and to the retired list; the estimates to
show under each head the amount allowed for pay proper, for increases due to
longevity and foreign service, and for pay at sea rates to officers employed on
shore; together with the total number of warrant and petty officers and seamen
of the several grades and designations, including as to each class the amount allowed
for pay proper and for longevity or service increases. The estimates shall include
a list giving the rates of pay for all petty officers and other enlisted men of the
navy.]
(99) [The. Postmaster-General shall for the fiscal year eighteeen hundred and
ninety-eight, and annually thereafter, submit in the annual estimates to Congress
estimates in detail for all expenses of the money-order branch of the postal
service.]
(100) * * * [Provided further, That it shall be the duty of the managers
of said Home, on or before the first day of October, in each year, to furnish to the
Secretary of War estimates, in detail, for the support of said Home for the fiscal
year commencing on the first day of July thereafter, and the Secretary of War
shall annually include such estimates in his estimates for his Department]
(101) [SEc. 119. ANNUAL ESTIMATES REQUIRED.-The Secretary of War shall
cause to be estimated annually the amount necessary for carrying out the pro-
visions of so much of this Act as relates to the militia, and no money shall be
expended under said provisions except as shall from time to time be appropriated
for carrying them out.]
(102) Hereafter such amount may be expended annually for pay of drafting,
technical, and inspection force from the several lump sum appropriations in which
specific authority for such expenditure is given, as the Secretary of the Navy may
deem necessary within the limitation of appropriation provided for such service
in said lump sum appropriations at such rates of compensation as the Secretary
of the Navy may prescribe[; and the Secretary of the Navy shall each year, in
the annual estimates, report to Congress the number of persons so employed, their
duties, and the amount paid to each].
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 Ap ov%VGj Jee$ 39Cs#1 %:
(103) Salaries, force employed on work
office of the Treasurer of the United States
Treasury may employ such number of clerk
and at the several rates of compensation
sums for contingent and miscellaneous iter
ment, to transact. the business of the Poste
Treasurer of the United States: Provided,
clerks and employees, and contingent an(
$18,000 for the fiscal year nineteen hundred
Secretary of the Treasury at regular interv
for the establishment, maintenance, and ea
[: Provided further, That estimates hercunc
fiscal year nineteen hundred and fourteen,
(104) [SEC. 27. He shall prepare and sul
annually, in time to have the same embrac
ment, detailed estimates of the sums wbic
printing, engraving, lithoggraphing, bindi
expenses of said Printing Office for the cnsui
(105) [The Public Printer shall submit
and ten, and annually thereafter, estimate
additional to the foregoing who may be requ
?
offices of the Government Printing Office
cally appropriated under said estimates s1ii
services in the Government Printing Office
mates and appropriated for thereunder.
(106) [and hereafter it shall be the du
to furnish estimates in detail for the law[ . u
the Secretary of the Treasury on or before t
b, q?-gp8&Rgqg300080004-0
Df the Postal Savings System in the
(reimbursable) : The Secretary of the
i and employees of the several classes
recognized by law, and expend such
is, as may be necessary, in his judg-
,1 Savings System in the office of the
'hat the money required to pay such
miscellaneous items, not exceeding
and thirteen, shall be advanced to the
i.Is out of any available appropriation
tension of postal savings depositories
or shall be submitted in detail for the
..nd annually, thereafter
mit to the Secretary of the Treasury,
!d in the estimates from that Depart-
i will be required for salaries, wages,
ig, materials and other necessary
ug fiscal ycar.I
for the fiscal year nineteen hundred
s for all clerks and other employees
ired in the executive or administrative
md no funds other than those speeifi-
11 be used during said fiscal year for
of the character specified in said esti-
;y of the secretary of each Territory
I expenses thereof, to be presented to
Ito first day of October of every year.]
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