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EXHIBIT No. 4 SECTION 161 OF THE REVISED STATUTES OF THE UNITED STATES (5 U.S.C. 22),

(AS AMENDED BY PUBLIC LAW 85-619, 1958) Sec. 161. The head of each department is authorized to prescribe regulations, not inconsistent with law, for the government of his department, the conduct of its officers and clerks, the distribution and performance of its business, and the custody, use, and preservation of the records, papers, and property appertaining to it. This section does not authorize withholding information from the public or limiting the availability of records to the public.

EXHIBIT No. 5

THE BUDGET AND ACCOUNTING ACT

Comprising the act of 1921, as amended and extended by the Budget, and Ac

counting Procedures Act of 1950 and other enactments, through the 2d ses

sion of the 84th Congress (Prepared by Legislative Digest Unit, Office of Legislative Liaison, General

Accounting Office

(42 Stat. 20)
PUBLIC LAW 13—67TH CONGRESS
CHAPTER 18–18T SESSION

S. 1084

(As amended through the 2d sess. of the 84th Cong.)

[Additional and amending language shown in [brackets]] AN ACT To provide a national budget system and an independent audit of Government

accounts, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

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TITLE 1-DEFINITIONS Sec. 1. This Act may be cited as the “Budget and Accounting Act, 1921" (31 U.S.C. 1).

Sec. 2. When used in this Act-

The terms “depărtment and establishment” and “department or establishment" mean any executive department, independent commission, board, bureau, office, agency, or other establishment of the Government, including [any independent regulatory commission or board and] · the municipal government of the District of Columbia, but do not include the Legislative Branch of the Government or the Supreme Court of the United States ;

The term “the budget" means the Budget required by section 201 to be transmitted to Congress ;

The term “Bureau" means the Bureau of the Budget;
The term “Director" means the Director of the Bureau of the Budget; and

The term “Assistant Director" means the Assistant Director of the Bureau of the Budget.

[The term "appropriations” includes, in appropriate context, funds and authorizations to create obligations by contract in advance of appropriations, or any other authority making funds available for obligation or expenditure.) ? (31 U.S.C. 2).

TITLE II—THE BUDGET

[Sec. 201. (a) The President shall transmit to Congress during the first fifteen days of each regular session, the Budget, which shall set forth his Budget

1 Added by sec. 201, Public Law 19 (53 Stat. 561, 565), 76th Cong. * Added by sec. 101, Public Law 784 (64 Stat. 832), 81st Cong.

message, summary data and text, and supporting detail. The Budget shall set forth in such form and detail as the President may determine

[(1) functions and activities of the Government :

[(2) at such times as may be practicable, information on program costs and accomplishments;

[(3) any other desirable classifications of data ;

[(4) a reconciliation of the summary data on expenditures with proposed appropriations ;

[(5) estimated expenditures and proposed appropriations necessary in his judgment for the support of the Government for the ensuing fiscal year, except that estimated expenditures and proposed appropriations for such year for the legislative branch of the Government and the Supreme Court of the United States shall be transmitted to the President on or before October 15 of each year, and shall be included by him in the Budget without revision;

[(6) estimated receipts of the Government during the ensuing fiscal year, under (1) laws existing at the time the Budget is transmitted and also (2) under the revenue proposals, if any, contained in the Budget;

[(7) actual appropriations, expenditures, and receipts of the Government during the last completed fiscal year;

[(8) estimated expenditures and receipts, and actual or proposed appropriations of the Government during the fiscal year in progress ;

[(9) balanced statements of (1) the condition of the Treasury at the end of the last completed fiscal year, (2) the estimated condition of the Treasury at the end of the fiscal year in progress, and (3) the estimated condition of the Treasury at the end of the ensuing fiscal year if the financial proposals contained in the Budget are adopted;

[(10) all essential facts regarding the bonded and other indebtedness of the Government; and

[(11) such other financial statements and data as in his opinion are necessary or desirable in order to make known in all practicable detail the

financial condition of the Government.]' (31 U.S.C. 11.) [SEC. 201. (b) Whenever the President determines there has been established a satisfactory system of accrual accounting for an appropriation or fund account, each proposed appropriation thereafter transmitted to the Congress for such account pursuant to the provisions of this Act shall be accompanied by a proposed limitation on annual accrued expenditures. The President may include in the Budget with any such proposed limitation on annual accrued expenditures, proposals for provisions authorizing the head of a department or establishment to make transfers, within his department or establishment, between such limitations on annual accrued expenditures ; and such provisions may limit by amount or by per centum the size of any transfer so proposed.

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[(c) Whenever an appropriation is subject to a limitation on annual accrued expenditures, there shall be charged against the limitation the cost of goods and services and other assets received, advance payments made and progress payments becoming due, and the amount of any other liabilities becoming payable, during the fiscal year concerned.

[(d) At the end of the fiscal year concerned, any unused balance of the limitation on annual accrued expenditures shall lapse, except that whenever any liabilities are incurred within the limitation provided for in any fiscal year (whether or not recorded or reported in such fiscal year), nothing in this section shall be construed to prevent the making of payment therefor in any subsequent fiscal year.

[(e) Any obligations incurred during the fiscal year concerned or in prior fiscal years which do not result in liabilities becoming payable during the fiscal year concerned shall be charged against the limitation an annual accrued expenditures for any succeeding fiscal year in which such obligations may inliabilities becoming payable.

[(f) Nothing in subsections (b) through (e) of this section shall be construed to change existing law with respect to the method or manner of making appropriations or the incurring of obligations under appropriations).*

8 Amended by sec. 102(a). Public Law 784 (64 Stat. 832), 818t Cong., and sec. 1(a), Public Law 863 (70 Stat. 782), 84th Cong.

+ Added by sec. 1, Public Law 759 (72 Stat. 852, 85,3), 85th Cong.

NOTE.—The cited Public Law 759, 85th Congress, approved August 25, 1958, further provides : "Sec. 2. (a) It shall be in order to provide in any bill or joint resolution making appropriations, or in any amendment thereto, limitations on annual accrued expenditures covering amounts becoming payable as a result of obligations incurred both in the fiscal year concerned and in prior fiscal years, and to include in any such bill or joint resolution provisions authorizing the head of a depart. ment or establishment to make transfers, within his department or establish. ment, between such limitations on annual accrued expenditures; and such provisions may limit by amount or by per centum the size of any transfer so pro. vided for.

"(b) The provisions of subsection (a) of this section are enacted by the Congress

(1) as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such they shall be considered as part of the rules of each House, respectively, or of that House to which they spe. cifically apply; and such rules shall supersede other rules only to the extent that they are inconsistent therewith; and

(2) with full recognition of the Constitutional right of either House to change such rules (so far as relating to the procedure in such House) at any time, in the same manner and to the same extent as in the case of any other

rule of such House. "SEC. 3. This Act, and the amendments made thereby shall cease to be in effect April 1, 1962.”

SEC. 202. (a) If the estimated receipts for the ensuing fiscal year contained in the Budget, on the basis of laws existing at the time the Budget is transmitted, plus the estimated amounts in the Treasury at the close of the fiscal year in progress, available for expenditure in the ensuing fiscal year, are less than the estimated expenditures for the ensuing fiscal year contained in the Budget, the President in the Budget shall make recommendations to Congress for new taxes, loans, or other appropriate action to meet the estimated deficiency.

(b) If the aggregate of such estimated receipts and such estimated amounts in the Treasury is greater than such estimated expenditures for the ensuing fiscal year, he shall make such recommendations as in his opinion the public interests require (31 U.S.C. 13).

[SEC. 203. (a) The President from time to time may transmit to Congress such proposed supplemental or deficiency appropriations as in his judgment (1) are necessary on account of laws enacted after the transmission of the Budget, or (2) are otherwise in the public interest. He shall accompany such proposals with a statement of the reasons therefor, including the reasons for their omission from the Budget.

[(b) Whenever such proposed supplemental or deficiency appropriations reach an aggregate which, if they had been contained in the Budget, would have required the President to make a recommendation under subsection (a) of section 202, he shall thereupon make such recommendation. (31 U.S.C. 14.)

[Sec. 204. (a) Except as otherwise provided in this Act, the contents, order, and arrangement of the proposed appropriations and the statements of expenditures and estimated expenditures contained in the Budget or transmitted under section 203, and the notes and other data submitted therewith, shall conform to requirements prescribed by the President.

[(b) The Budget, and statements furnished with any proposed supplemental or deficiency appropriations, shall be accompanied by information as to personal services and other objects of expenditure in the same manner and form as in the Budget for the fiscal year 1950: Provided, That this requirement may be waived or modified, either generally or in specific cases, by joint action of the committees of Congress having jurisdiction over appropriation : And provided further, That nothing in this Act shall be construed to limit the authority of committees of Congress to request and receive such information in such form as they may desire in consideration of and action upon budget estimates.] ° (31 U.S.C. 581.)

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(SEC. 205. Whenever any basic change is made in the form of the Budget, the President, in addition to the Budget, shall transmit to Congress such explanatory notes and tables as may be necessary to show where the various items embraced

6 Amended by sec. 102(b), Public Law 784 (64 Stat. 832, 833), 81st Cong.
* Amended by sec. 102(c), Public Law 784 (64 Stat. 832, 833), 81st Cong.

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in the Budget of the prior year are contained in the new Budget.]? (31 U.S.C. 581a.)

SEC. 206. No estimate or request for an appropriation and no request for an increase in an item of any such estimate or request, and no recommendation as to how the revenue needs of the Government should be met, shall be submitted to Congress or any committee thereof by any officer or employee of any department or establishment, unless at the request of either House of Congress (31 U.S.C. 15).

SEC. 207. There is hereby created in the (Executive Office of the President] % a bureau to be known as the Bureau of the Budget. There shall be in the Bureau a Director and a [Deputy Director)," who shall be appointed by the President and receive salaries of ($22,500] 10 and ($20,500] "1 a year, respectively. The [Deputy]' Director shall perform such duties as the Director may designate, and during the absence or incapacity of the Director or during a vacancy in the office of Director he shall act as Director. (The Bureau, under such rules and regulations as the President may prescribe, shall prepare the Budget, and any proposed supplemental or deficiency appropriations, and to this end shall have authority to assemble, correlate, revise, reduce, or increase the requests for appropriations of the several departments or establishments.] (31 U.S.C., sup. III, 16.)

SEC. 208. (a) The Director, under such rules and regulations as the President may prescribe, shall appoint (and fix the compensation of] attorneys and other employees and make expenditures for rent in the District of Columbia, printing, binding, telegrams, telephone service, law books, books of reference, periodicals, stationery, furniture, office equipment, other supplies and necessary expenses of the office, within the appropriations made therefor (31 U.S.C. 17).

NOTE.—Subsections (b), (c), (d), and (e) of section 208, relating to appointment and compensation of certain employees of the Bureau of the Budget, omitted from this codification. Provisions of such subsections as to salaries were superseded by the Classification Act of 1949, Public Law

429, as amended (63 Stat. 954), 81st Congress. Sec. 209. The Bureau; when directed by the President, shall make a detailed study of the departments and establishments for the purpose of enabling the President to determine what changes (with a view of securing greater economy and efficiency in the conduct of the public service) should be made in (1) the existing organization, activities, and methods of business of such departments or establishments, (2) the appropriations therefor, (3) the assignment of particular activities to particular services, or (4) the regrouping of services. The results of such study shall be embodied in a report or reports to the President, who may transmit to Congress such report or reports or any part thereof with his recommendations on the matters covered thereby (31 U.S.C. 18). SEC. 210.

NotE.-This section, directing the Bureau of the Budget to prepare, for the President, a codification of laws relating to statements of receipts and expenditures of the Government and of estimates of appropriations, to be submitted by the President to Congress on or before the first Monday in December, 1921, with a recommendation as to changes, omitted from this

codification as obsolete. SEC. 211.

NOTE.—This section, providing for the transfer to the Bureau of the Budget of powers and duties relating to the compiling of estimates formerly imposed upon the Division of Bookkeeping and Warrants, Office of the Secretary of the Treasury, omitted from this codification as obsolete. Such Division and its functions were transferred to the Bureau of Accounts, Fiscal Service, Treasury Department, by Reorganization Plan No. III (54 Stat. 1231).

? Amended by sec. 102(d), Public Law 784 (64 Stat. 832, 833), 81st Cong. 8 Bureau of the Budget transferred from the Treasury Department to the Executive Office of the President by Reorganization Plan No. 1, effective July 1, 1939 (53 Stat. 1423).

9 Title of the position of the Assistant Director of the Bureau of the Budget changed to Deputy Director and two positions of Assistant Director authorized by. Public Law 176 (67 Stat. 298, 299), 83d Cong.

10 Annual rate provided by Public Law 854 (70 Stat. 736), 84th Cong.
11 Annual rate provided by Public Law 854 (70 Stat. 736, 737), 84th Cong.
13 Amended by sec. 102(e). Public Law 784 (64 Stat. 832. 833). 81st Cong.
13 Subject to Public Law 429, as amended (63 Stat. 954, 973), 81st Cong.

40377 0—59—pt. 1-19

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Sec. 212. The Bureau shall, at the request of any committee of either House of Congress having jurisdiction over revenue or appropriations, furnish the committee such aid and information as it may request (31 U.S.C. 20).

Sec. 213. Under such regulations as the President may prescribe, (1) every department and establishment shall furnish to the Bureau such information as the Bureau may from time to time require, and (2) the Director and the [Deputy] ” Director, or any employee of the Bureau when duly authorized, shall, for the purpose of securing such information, have access to, and the right to examine, any books, documents, papers, or records of any such department or establishment (31 U.S.C. 21).

(Sec. 214. The head of each department and establishment shall prepare or cause to be prepared in each year his requests for regular, supplemental, or deficiency appropriations.) 15 (31 U.S.C. 22.)

(SEC. 215. The head of each department and establishment shall submit his requests for appropriations to the Bureau on or before a date which the President shall cause such requests to be prepared as are necessary to enable him to include such requests with the Budget in respect to the work of such department or establishment.] (31 U.S.C 23.)

[Sec. 216. (a) Requests for regular, supplemental, or deficiency appropriations which are submitted to the Bureau by the head of any department or establishment shall be prepared and submitted as the President may determine in accordance with the provisions of section 201.

[(b) The requests of the departments and establishments for appropriations shall, in such manner and at such times as may be determined by the President, be developed from cost-based budgets.

[(c) For purposes of administration and operation, such cost-based budgets shall be used by all departments and establishments and their subordinate units. Administrative subdivisions of appropriations or funds shall be made on the basis of such cost-based budgets. ] (31 U.S.C. 24.) Sec. 217.

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NOTE.—This section, appropriating funds for the Bureau of the Budget for the fiscal year ending June 30, 1922, omitted from this codification as obsolete.

NEW SECTIONS ADDED BY THE BUDGET AND ACCOUNTING PROCEDURES ACT OF 1950

(64 Stat. 832, 834)

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 (31 U.S.C. 18b).

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 (31 U.S.C. 18a).

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 which shall be submitted to the Bureau of the Budget, under such rules and regulations as the 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” (31 U.S.C. 847).

14 Same as footnote 9.
16 Amended by sec. 102(f), Public Law 784 (64 Stat. 832, 833), 81st Cong.
18 Amended by sec. 102(g), Public Law 784 (64 Stat. 832, 834), 81st Cong.

17 Amended by sec. 102(h). Public Law 784 (64 Stat. 832, 834), 81st Cong. and sec. 1(b). Public Law 863 (70 Stat. 782), 84th Cong.

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