standpoint of the work involved, The Sioux Tribe of Indians v. United States, petition No. C-531, amount claimed $221,945,139, and The Creek Nation of Indians v. United States, petition No. H-510, amount claimed $574,589.29. Supplemental work was performed in connection with prior reports on petitions in the form of answers to interrogatories submitted by attorneys for the Indians. There are stated elsewhere the names of the Indian tribal claimants, jurisdictional statutes under which each suit was filed and date suit filed, amounts involved (where ascertainable), the date reports thereon were forwarded to the Department of Justice for use in suits in the Court of Claims, suits in which reports were in process of preparation on June 30, 1932, petitions in cases before Indian tribal claims section on that date which were awaiting examination and report, and additional cases in which statutory authorizations for the filing of such suits then existed. (See pp. 124 to 128.) In connection with regular Indian tribal claims work for 1932 there were examined 41,333 Indian claims settlements, an increase of 21,543 over 1931, and 5,535 accounts of fiscal officers; and transcripts were made of 861 pages of Indian ledgers.

The original Indian tribal claims records are in the General Accounting Office, and there is no administrative accounting of the transactions under the treaties. There has therefore devolved upon the General Accounting Office, incidental to the preparation of the reports, the work of the examination of old Indian accounts and claims settlements and of preparing the necessary financial statements in connection with these claims, showing in some cases the entire fiscal relations between such tribes or bands and the United States. For research work involved in Indian tribal claims work, see page 128. A recommendation for the standardization of Indian tribal claims jurisdictional statutes for offset and/or counterclaim purposes, including gratuities, is found elsewhere. (See pp. 1 to 7.) Transportation claims. See pages 73, 116, 117. Check voucher claims.-See page 58.

poses,

Gasoline-tax claims, Federal; refunds for payments to States and District of Columbia.-See pages 54 to 57.

States and Territories, claims of for Federal moneys, simplification of procedure; legislative recommendation.-See page III.

Discount savings, contract claims.-The majority of claims under Federal contracts are those concerning which some question or dispute has arisen requiring investigation. During 1932 through prompt settlement action discounts were obtained to amount of $6,457.50. Additional discounts were also obtained by the General Accounting Office on postal contracts for the purchase of automobile parts and accessories.

Collections of indebtedness due to the United States through claims division. During 1932 indebtedness due to the United States was collected through the claims division aggregating $175,762.42. The collections comprised collections of duplicate and forged check payments; cash from defaulting contractors and on war contracts, and of other indebtedness growing out of contracts; cash from disbursing officers and sureties, for gasoline tax paid, for improper payments to Army, Navy, and civilian personnel, and for veterans' insurance,

compensation, etc.; of freight and passenger earnings through application of (with consent of carriers) to indebtedness of carriers to United States; and miscellaneous items. (See pp. 73, 105.)

Indebtedness to United States referred to Department of Justice for collection by suit.-During 1932 there were referred to the Department of Justice for collection by suit 43 claims of indebtedness to the United States, aggregating $128,379.35, an increase over 1931 of four and a monetary increase of $58,085.93. The names of the debtors and the amount of indebtedness of each are listed on page 107.

Preaudit. During 1932 there were preaudited through the claims division 217,930 transportation claims, aggregating in amount $17,310,363.25, of which $7,893,980.43 was for freight and $9,416,382.82 for passenger transportation. The percentage allowed was 99plus. (See pp. 79, 119.)

United States commissioners.-The volume of a large number of accounts of United States commissioners has materially increased during the past three years, particularly of those commissioners who reside in the more densely populated sections of the United States. There are at present approximately 1,400 United States commissioners, including those of Alaska, Puerto Rico, and Hawaii. In forwarding their accounts to the General Accounting Office during 1932 the Department of Justice recommended deductions aggregating $9,138.07 from the amounts claimed by the commissioners. There was deducted in the settlement of the accounts $9,138.07 as recommended and $9,130.04 additional, making the total deduction $18,268.11.

Postal claims and accounts.-There were adjusted during 1932 by the Post Office Department division of this office 541,883 postal claims and accounts, an average monthly of 45,157.

United States Shipping Board Merchant Fleet Corporation; claims.See pages 65, 116.

TRANSPORTATION

The General Accounting Office is vigorously continuing to check excess transportation costs on Government shipments, including supplies and materials shipped by contractors on Government bills of lading. The tendency of administrative officials to route shipments when there is no need for such routing and the responsibility is upon the receiving carrier to so route as to result in the lowest available rate, or, in the few instances when specific routing may serve a Government need, to select the more expensive of two or more available routes, frequently results in excessive and wholly unnecessary cost to the Government. Through specifically calling to administrative attention such cases and the amount of loss sustained by the Government this office is doing all possible to discourage this improper and costly tendency. To such end the facilities of this office are always available to determine in advance the route most advantageous to the United States when there is shown a Government need to route a particular shipment.

Rates. The rate work of this office necessarily requires consideration of every rate and transportation factor and every part of the rate structure of the United States. The various freight-rate adjustments throughout the rate structure during the year vitally affected the tariff schedules and the audit of accounts.

Claims and demands.-Transportation claims and demands other than for the transportation of the mails are adjusted, either by direct settlement, preaudit, or through the audit of disbursing officers' transportation payments. During 1932 an aggregate of 225,087 transportation claims and demands were disposed of, of which 7,157 (5,216 freight and 1,941 passenger) were by direct settlement and 217,930 (96,970 freight and 120,960 passenger) by preaudit action. (See pp. 117, 119.)

The amount claimed in the 5,216 freight claims disposed of through direct settlements was $767,902.22, of which $686,352.80 was allowed; and the amount claimed in the 1,941 passenger claims so disposed of was $290,023.55, of which $251,684.49 was allowed. The total amount claimed in the 7,157 claims disposed of was $1,057,925.77, of which 89 per cent minus was found correct. (See p. 117).

The amount claimed in the 217,930 preaudited transportation claims (96,970 freight and 120,960 passenger), an increase of 12,417 preaudited claims over 1931, was $17,310,363.25, an increase over 1931 of $1,461,880.18. Of said $17,310,363.25 claimed $7,893,980.43 was for freight transportation, of which $7,786,243.67 was allowed, and $9,416,382.82 for passenger, of which $9,398,164.60 was allowed. Of said total claimed amount of $17,310,363.25 there was allowed 99 per cent plus. (See p. 119.)

In addition to the total of 225,087 transportation claims and demands disposed of there were postaudited 82,115 transportation vouchers of disbursing officers, an increase of 2,586 over 1931, of which 46,818 were for freight transportation and 35,297 for passenger. The 82,115 vouchers audited amounted to $11,180,862.09, of which $5,498,343.52 was for freight transportation and $5,682,518.57 for passenger. Of said total amount of $11,180,862.09 audited $68.870.18 was suspended ($16,178.48 freight and $52,691.70 passenger) and $29,928.31 refunded as the result of suspensions in the accounts of disbursing officers ($19,343.52 freight and $10,584.79 passenger). Collections of indebtedness due United States from common carriers. In addition to the $29,928.31 collected through refunds, there was collected during 1932 from common carriers through the application to indebtedness of earnings otherwise due for freight and passenger service $1,512.84, an increase over 1931 of $1,010.71, making the total collections from common carriers by means of freight and passenger refunds and offsets $31,441.15. (See pp. 106, 118.) In addition to said $31,441.15 settlements were held in abeyance of claims for freight and passenger earnings aggregating $136,381.06, in which the carriers had not admitted the application of the amounts to the indebtedness.

Additional to said $31,441.15 collected from common carriers, $68,870.18 postaudit suspensions, and $136,381.06 withheld from settlement, the General Accounting Office through its Post Office Department division collected $19,618.89 during 1932 from common carriers by withholding amounts otherwise due for the transportation of the mails as in whole or partial liquidation of indebtedness due to the United States Railroad Administration or under the transportation act of 1920, as amended, and suspended $304,524.92 from payment for transportation of the mails pending liquidation of such indebtedness. The names of the railroads and amounts so collected or suspended are listed elsewhere. (See pp. 106, 118.)

Total collections during 1932 from common carriers of indebtedness due to the United States $51,060.04.

Round-trip tickets.-The Government travel regulations are enforced requiring the use of round-trip tickets and there are collected amounts involved because of not complying therewith.

Stop-overs.-Stop-overs at interchange points longer than the authorized limit under rules of the Pullman Company result in additional cost. A close check is made on unauthorized stop-overs and there is collected any additional cost to the Governement.

Defaulting railroad companies.-There were 19 railroad companies listed as in default in the payment of Federal indebtedness at the close of 1932. Of said 19 defaulting companies 13 were indebted to the United States under the transportation act of 1920 (act of February 28, 1920, 41 Stat. 468), as amended, 4 were indebted to the United States Railroad Administration, 1 was indebted under both said transportation act and to the United States Railroad Administration, and I was in default in the payment of refund of excess

earnings,

Foreign mail transportation (including aircraft service); cost.See page 84.

Transportation of mails; expenditures for, during 1932.-See pages 84, 118,

Ocean mail contracts under merchant marine act, 1928; prohibition of loans to corporations having unless contracts approved by Comptroller General of the United States. See page 40.

Forms; transportation.-There were approved during 1932 for the use of the Post Office Department 11 special accounting forms, 6 for weight of ocean mail, etc., and 5 for the transportation of the mail by railroad and electric lines.

For standard forms for transportation of passengers and freight and express promulgated during 1931 (series 1067 to 1068e), see 1931 ropart, pages 66, 132, These forms replaced Government transportation stock formis Nos, 9 to 20, inclusive, and differ therefrom in that claims of public carriers for service over land-grant and nonland-grant railroads are stated on the same form. Thereby the number of forms was reduced from 12 to 8. (See also General Regulations No. 75, General Accounting Office, June 26, 1931.)

AUDIT

Andu division; functions and organization.-The functions and organization of the audit division of the General Accounting Office have been outlined in previous reports. (See 1927 report, pp. 51 to 58; 1928 24. p. 46; 1981 4. p. $6.) No material change therein occurred during 1980

Preandu; distinction derween and postaudit and outline of procedure for. Federal agencies to which being applied, etc.-See page

See also 1981 mport, pp. 88, 183 40 138; 1980 nà., pp. 82 to 85; 1929 2, pp. 73 30 77, 1928 16, pp. 86 to 39, 1927 s. pp. 43 to 47;

Postedit; increased expanse of orar preandit, and need for legisJaena permitng of aachat. See page 76, and 1981 roport, page 2. Advanced pasaría; procedure for, prompt notice of diferences, and dazadas. The new aaaažier ink gumzod for giving the BCHLIDUPLO alas pranzi notice di toconpuións taken to paymaras in the

accounts of disbursing officers and the advantages thereof were outlined fully in report for 1931 (pp. 86, 87). (See also 1930 report, pp. 85, 86; 1929 id., p. 78.) It is not believed necessary to again outline the procedure or discuss its advantages. It is, however, desired to report that this new system operated successfully during 1932. There was a further distinct improvement in the condition of accounts. Where in the past it had frequently been necessary at the time of the settlement of an account to embody hundreds of items in the statement of differences between the credits for disbursements claimed and those allowed, the preliminary clearing now in effect has made it unusual for a statement to contain more than 10 items, and about 50 per cent of the statements issued show no differences. Under this new postaudit procedure accounts are so promptly adjusted that the final accounts of officers who have ceased disbursing or who have had a change of bond or change of station do not so frequently show unadjusted items, and it is less often necessary to resort to legal proceedings to effect recovery of an outstanding balance of indebtedness to the United States. This procedure is receiving the hearty indorsement of those directly concerned with the disbursement of public funds.

Checks. Through the check section the audit division during 1932 audited approximately 33,000,000 checks, an increase over 1931 of approximately 1,500,000; made 1,059 reports to the Secretary of the Treasury of the proceeds of checks as outstanding liabilities; reported to the Secretary of the Treasury 40,111 checks for such covering-in purposes, amounting to $478,253; and reconciled and adjusted 27,254 depositary accounts, an increase over 1931 of 817 depositary accounts. Contracts, volume of, filed in audit division. During 1932 the audit division received, promptly examined for errors, omissions, or other defects, and filed 200,904 Federal contracts, an increase over 1931 of 1,369, and a monthly average of over 16,742.

Collections of indebtedness due to the United States through audit division. The collections through the audit division during 1932 of indebtedness due to the United States aggregated $164,722.15, and were made by recoveries through suspensions and disallowances in accounts of disbursing officers or advance notice that such action would be taken. A list of the departments and establishments to which such indebtedness pertained and the respective amounts recovered as to each are found on page 106.

Volume of work of audit division. For the volume of work of the audit division for 1932, including accounts of disbursing officers settled, classes of vouchers, etc., preaudited, bureaus, etc., for which preaudited, percentages of preaudited vouchers for each found correct, and civil and service accounts settled, see statistical tables, pages 119, 122, 123, 129.

Postal accounts, audit of. See pages 80 to 97, 129 to 131.

Rendition of accounts, legislation recommended to facilitate.-See page III.

Delinquency in rendering accounts.-There were 196 officers delinquent during 1931 in rendering or transmitting accounts to proper officers in Washington, and on June 30, 1931, there were 1,185 Federal officers who had failed to pay into the Treasury their indebtedness as shown by final balances, aggregating $1,980,496.60. (See p. 32.) Advance payments in foreign countries; legislative recommendation. See page IV.

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