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such as reviewing, analyzing, and testing accounting and operating data property records, budgetary statements, and other supporting evidence covering business operations. The results of comprehensive audits will be covered by reports which will be made available to the head of the agency involved. This procedure is in keeping with the General Accounting Office policy to correct deficiencies through cooperation with the agency staffs rather than by solely reporting such deficiencies to Congress.

5. The Comptroller General, in his letter to the Secretary of the Army dated October 9, 1956, has indicated his "audits will be conducted in full recognition of all internal review activities, and will evaluate their effectiveness and eliminate the necessity for duplicating much of their efforts.” The General Accounting Office intends, within the terms of this statement, as a part of its comprehensive audit procedure, to review the internal audit work accomplished within the Department of the Army. This review will serve to enable the General Accounting Office to give "due regard to * * * consideration of the effectiveness of * * * internal audit and control" and thereby minimize the effort devoted by the General Accounting Office to detailed review of installation activities. From this point of view, considerable benefit may be realized by the Army from a re lease to the General Accounting Office, upon request, of reports of internal audit and associated working papers. To the extent that the internal audit program has been the successful and effective aid to management, which it is designed to be, a corresponding reduction in the disruption of normal operations at the installation or activity by the General Accounting Office should result.

As a corollary, the General Accounting Office auditors will be able to devote more time to furnishing assistance to all levels of Army management in areas in which such assistance will be more beneficial.

6. Comprehensive audits will be directed only to the nontactical operations of the Army. Primarily, the effort by the General Accounting Office auditors will be for the purpose of evaluating the results of financial management within the Department of the Army.

7. It is incumbent upon officials of all levels within the Army to cooperate fully with General Accounting Office auditors in order to facilitate their work and reduce to a minimum the disruption of normal operations. Care should be taken to assure that proper working space and facilities are provided for the auditors as well as timely assistance in making necessary information, records, and personnel available.

8. Budget for any future fiscal year will not be released. Reports of nonArmy agencies (including FBI reports) should not be released unless the written consent of such agency has been obtained. Summaries of the facts set forth in investigation reports of Inspector General of Criminal Investigation Division reports should, upon request, be prepared and furnished. If any question should arise concerning access to the reports themselves, the matter will be immediately referred to the Assistant Secretary of the Army (FM).

9. Internal audit reports of the Army Audit Agency and associated working papers should be made available to the General Accounting Office auditors by the regional office of the Army Audit Agency as requested. To the extent possible Army Audit Agency reports when made available should be accompanied by a statement summarizing the official Army position with respect to each of the several recommendations of the report together with as appropriate a statement of the planned program of corrective action. The period required for review and study of an Army Audit Agency report and the formulation of an action program to correct deficiencies shown to exist should under normal circumstances not exceed 90 days from the date of issuance of the report. Should the General Accounting Office request a report prior to the establishment of the Army position with respect to the several recommendations, the transmittal letter forwarding the report to the General Accounting Office will clearly identify this fact and, as soon as possible thereafter, the established Army position with respect to the several recommendations will be furnished separately to the General Accounting Office.

EXHIBIT IX

COMPTROLLER GENERAL OF THE UNITED STATES,

Washington, June 19, 1958. The honorable the SECRETARY OF THE AIR FORCE.

DEAR MR. SECRETARY: The Defense Accounting and Auditing Division of this Office has begun a review of the research and development program of the Air Force. The basic objective of this review is to evaluate the effectiveness of Air Force policies, procedures, and management as they pertain to research and development activities.

In order to obtain a comprehensive understanding of the research and development activities, we have met with the Assistant Secretary (Research and Development); the Deputy Chief of Staff, Development; the Commander, Air Research and Development Center; and with members of their staffs. We have selected the ballistic missiles program for our initial review in the research and development field and our representatives are presently at the Ballistic Missiles Division in Inglewood, Calif.

We understand that a report was recently prepared by the Inspector General covering a survey of management of the ballistic missiles program. In view of our current survey in the management aspects of the ballistic missiles program, we believe it would be mutually advantageous for our representatives to review this report and thereby minimize duplication of work performed by the Inspector General's staff.

Your cooperation is requested in providing a copy of the Inspector General's report on the survey of management of the ballistic missiles program covering the period January 14 to February 21, 1958, to the Defense Accounting and Auditing Division of this Office for use in connection with their current review at the Ballistic Missiles Division. Mr. Harold H. Rubin, Assistant Director Defense Accounting and Auditing Division, may be contacted to arrange foi receipt of this report. Sincerely yours,

JOSEPH CAMPBELL, Comptroller General of the United States.

COMPTROLLER GENERAL OF THE UNITED STATES,

Washington, July 16, 1958. The honorable the SECRETARY OF THE AIR FORCE.

DEAR MR. SECRETARY: Your attention is inrited to my letter of June 13, 1958, requesting that a copy of the Inspector General's report on the survey of management of the hallistic missiles program, covering the period January 14 to February 21, 1958, be made available to the Defense Accounting and Auditing Division of this Office, Informatiou is requested as to when this report will be available. Sincerely yours,

JOSEPH CAMPBELL, Comptroller General of the United States.

Senator HRUSKA. They contain, I might say, the memorandum to which we referred, and also a copy of the Guide Lines of the Army of August 20, 1957, and other related matters. Thank you, Mr. Chairman.

Senator O'MAHONEY. Any other questions?
Senator HRUSKA. That is all so far as I am concerned.
Senator O’MAHONEY. Mr. Slayman, do you have anything to add?

Mr. SLAYMAN. May I ask a couple of questions and get some things put into the record, Mr. Chairman?

Senator O'MAHONEY. Yes.

Mr. SLAYMAN. Mr. Keller, do you have anything subsequent to this memorandum that Senator Hruska has just referred to that we ought to include in the record? Do you have a memorandum on that Inspector General's report referred to in connection with the ballistic missiles program? Could that be made available to the subcommittee?

Mr. KELLER. I am not sure, Mr. Slayman, just what memorandum you are referring to now. Ís it the memorandum as to our legal position ?

Mr. SLAYMAN. Yes.
Mr. KELLER. I would be glad to insert it.
(The document referred to follows:)

U.S. GENERAL ACCOUNTING OFFICE,

OFFICE OF GENERAL COUNSEL, Washington, D.C., November 4, 1958.

MEMORANDUM ON RIGHT OF THE COMPTROLLER GENERAL TO ACCESS TO A REPORT

OF THE INSPECTOR GENERAL OF THE AIR FORCE ENTITLED “SURVEY OF MANAGEMENT OF THE BALLISTIC MISSILES PROGRAM”.

The basic statutory authority of the Comptroller General for access to records of departments and agencies is set forth in section 313 of the Budget and Accounting Act, 1921, 31 U.S.C. 54. Section 313 provides :

“All departments and establishments shall furnish to the Comptroller General such information regarding the powers, duties, activities, organization, financial transactions, and methods of business of their respective offices as he may from time to time require of them; and the Comptroller General, or any of his assistants or employees, when duly authorized by him, 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. The authority contained in this section shall not be applicable to expenditures made under the provisions of section 291 of the Revised Statutes."

It will be noted that the only exception in section 313 relates to expenditures made under section 291, Revised Statutes (31 U.S.C. 107), which authorizes the Secretary of State to account for certain confidential expenditures in connection with intercourse or treaties with foreign nations by certificate where, in his judgment, he may think it advisable not to specify the details of such expenditure. Since that is the only exception stated and following the legal maxim that the specific setting forth of one type of exception precludes others from arising, it seems clear that the Comptroller General may require, and the departments are required to furnish, documents, etc., as to any other transaction or activity. Also, the language of section 313 itself (except as to the expenditures under 291 R.S.) in requiring the departments to furnish such information as the Comptroller General “may require of them” and its requirement that he be given access to any documents of the departments clearly gives him access to all such documentation. If he has access to any document, he has access to all. The legislative background of the Budget and Accounting Act, 1921, makes no qualification as to what records can be required; the provision itself apparently being considered sufficiently specific. The legislative reports do bring out that one of the principal functions of the Comptroller General is to enable the Congress to be kept advised as to expenditures of the Government, and that the

Comptroller General is expected to criticize extravagance, duplication, and inefficiency in executive departments. There is no doubt, in passing the act, the Congress did not intend that the executive agencies could, or would, withhold any books, documents, papers, or records needed by the Comptroller General. Otherwise, the very purpose of the act would be nullified.

The authority and duty of the Comptroller General was amplified by section 206 of the Legislative Reorganization Act of 1946, 31 U.S.C. 60, which authorized and directed him to make expenditure analyses of each agency in the executive branch of the Government which "will enable Congress to determine whether public funds have been economically and efficiently administered and expended" and to make reports thereon from time to time to the Committees on Government Operations, and Appropriations and other committees having jurisdiction over legislation relating to the operation of the agencies involved. The work of the Comptroller General, together with the activities of the Committees on Government Operations, were to serve as a check on the economy and efficiency of administrative management. See pages 6 and 7, Senate Report No. 1400 on the Legislative Reorganization Act of 1946.

The Congress has also directed that the Comptroller General in performing his duties give full consideration to the administrative reports and controls of the departments and agencies. The Government Corporation Control Act specifically provides in section 301(a), 31 U.S.C. 866, “That in making the audits * * * the Comptroller General shall, to the fullest extent deemed by him to be practicable, utilize reports of examination of Government corporations made by a supervising administrative agency pursuant to law.” The legislative reports on that act, Senate Report 694, page 10, contains the following significant language:

"The audit provisions are intended to give the Congress the independent audit reports of its agent, the Comptroller General, as to the operations and financial condition of every Government corporation in which the Government has a capital interest. * * * If the audit by the Comptroller General is to be a truly independent audit, he must not be restricted in such a way as to prevent him from examining into and reporting the transactions of any Government corporation to the extent deemed by him to be necessary.

“The Comptroller General has stated that in making his audits he will give full consideration to the effectiveness of the existing systems of internal accounts, procedures and controls and of external examinations by an administrative supervisory agency. The bill includes a specific provision requiring the Comptroller General in making his audits to utilize, to the fullest extent deemed by him to be practicable, reports of examinations of Government corporations by a supervising administrative agency pursuant to law."

The Budget and Accounting Procedures Act of 1950 requires each executive agency to maintain systems of accounting and internal control and provides, in section 117(a), 31 U.S.C. 67(a), that the Comptroller General in determining auditing procedures and the extent of examination to be given accounts and vouchers give consideration to “the effectiveness of accounting organizations and systems, internal audit and control, and related administrative practices of the respective agencies.”

The Comptroller General is required to audit the activities of the executive departments and agencies; to make expenditure analyses to determine whether funds have economically been expended ; and to give consideration to the departments internal audit and control and related administrative practices. To perform these duties he is given the clear statutory authority to require information of the departments and agencies regarding their organization, activities, and methods of business, coupled with the right to access to any books, documents, papers or records of any such establishment [except as to the confidential State Department funds.]

There have been no court cases construing the statutes giving the Comptroller General access to records. However, in 1925, the Attorney General in an opinion to the Secretary of War, 34 Op. Atty. Gen. 446, concerning a request by the Comptroller General for information relative to an award of a contract showing that the lowest bid was accepted, or if otherwise, a statement for the reasons for accepting other than the lowest bid, advised, in part, as follows:

It will be observed that the Comptroller General states that this require. ment is made necessary in order that a satisfactory audit may be made. What papers or data he should have to make such an audit would seem to be a matter solely for his determination. Moreover, section 313 of the Budget and Accounting Act provides (p. 26):

"All departmens and establishments shall furnish to the Comptroller General such information regarding the powers, duties, activities, organization, financial transactions, and methods of business of their respective offices as he may from time to time require of them; and the Comptroller General, or any of his assistants or employees, when duly authorized by him, 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. * * *"

Questions as to whether the General Accounting Office has a right to access to records claimed to be confidential for security or other reasons have arisen from time to time and the General Accounting Office has always taken the position that it has the right to the information, even though certain provisions of law relating to disclosure might be applicable to it.

The General Accounting Office recognizes that certain of the functions of the Inspectors General, such as criminal and personnel investigations, are of a confidential nature and it will normally accept summaries of facts contained in such reports to the extent they are needed in connection with its work. However, the Inspectors General also have as a part of their respective missions and duties responsibility for conducting inspections, surveys, and examinations of the effectiveness of operations and overall efficiency of a command, installation or activity. These functions may be performed on a periodic or special basis as directed by competent authority. The performance of these functions constitutes an important part of the process of management evaluations and internal reviews as distinguished from criminal or personnel investigations. They provide officials and appropriate personnel of authority with an indepedent appraisal of the effectiveness of operations and overall efficiency. Moreover, a very considerable part of the inspections and reviews made by the Inspectors General involve reviews of procedures and policies and as such are an important segment of the internal reviews and control which the General Accounting Office, under section 117(a) of the Budget and Accounting Procedures Act of 1950 is required to consider and recognize in determining the audit procedures to be followed in its reviews.

The scope of inspection and survey programs of the Inspectors General is similar in character to much of the work the General Accounting Office has scheduled in requirements, procurement, supply management, and research and development areas. The programs of the Deputy Inspector General for Inspection of the Air Force covering the period July 1 to December 31, 1958, include (1) a survey of Air Force procurement methods (advertising versus negotiation), (2) a survey of procurement quantitative and qualitative program changes; (3) a survey of procurement of commercial communications and utility services; (4) a survey of contract cost overruns; (5) a survey of maintenance programs; (6) a survey of modification programs; (7) a survey of the application of electronic data processing systems and other like subjects. All of these subjects represent internal and management evaluations which would clearly be a part of "internal audit and control” within the meaning of section 117 (a) of the Accounting and Auditing ct of 1950. It is essential that such reports be made available to the General Accounting Office in order that it can evaluate the effectiveness of the Department's system of internal control and to preclude unwarranted and unnecessary duplication of effort in the internal audit and the independent review made by this Office. The Air Force Inspector General's Report on the ballistic missiles program clearly falls within the term “internal audit and control."

The Secretary of the Air Force in refusing the Comptroller General access to the Inspector General's Report on the ballistic missiles program stated that the Inspector General's reports are prepared solely for the use of responsible officials within the Air Force, and that the objective of self-criticism can be obtained only if the Inspector General's organization has the assurance that its reports will, without exception, be kept within the Department. The Secretary also stated that the report in question concerned the internal management of the Department, and was prepared solely for the benefit and use of those officers and employees of the Department who are responsible for its administration, and that the release of such reports to persons outside the Department would have a serious effect on the effective administration of the Department. The Secretary concluded that these considerations compelled him to conclude that the public interest would best be served by not releasing the report.

It is our understanding that the position of the Secretary is premised on paragraph 151 (b) (3) of the Manual for Courts-Martial (1951) which was prescribed by the President on February 8, 1951, through Executive Order 10214,

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