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Joint resolution of March 24, 1937, section 4 (d) (50 Stat. 53):

"The actions of the board, including any payment made or directed to be made by it from any trust funds, shall not be subject to review by any officer or agency other than a court of law." (Emphasis supplied.)

Printing for departments, etc.

Legislative Appropriation Act for 1938-Government Printing Office Appropriation (act of May 18, 1937, 50 Stat. 185):

66* * * and bills rendered by the Public Printer in accordance herewith shall not be subject to audit or certification in advance of payment: ***." (Emphasis supplied.)

Railroad Retirement Board

Act of June 24, 1937, Part I (50 Stat. 314):

"That the Act of August 29, 1935, entitled 'An Act to establish a retirement system for employees of carriers subject to the Interstate Commerce Act, and for other purposes', be, and it is hereby, amended to read as follows:

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"SEC. 10. * * * Decisions by the Board upon issues of law and fact relating to pensions, annuities, or death benefits shall not be subject to review by any other administrative or accounting officer, agent, or employee of the United States.' (Emphasis supplied.)

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Federal Surplus Commodities Corporation-
Act of June 28, 1937 (50 Stat. 323):

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66* * * That such transferred funds, together with other funds of the Corporation, may be used for purchasing, exchanging, processing, distributing, disposing, transporting, storing, and handling of agricultural commodities and products thereof and inspection costs, commissions, and other incidental costs and expenses, without regard to the provisions of existing law governing the expenditure of public funds and for administrative expenses, (Emphasis supplied.)

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To dispense with the necessity for insurance by the Government against loss or damage to valuables in shipment, and for other purposesAct of July 8, 1937, section 3 (50 Stat. 479):

(* * * Notwithstanding any provision of law to the contrary, the decision of the Secretary of the Treasury that such loss, destruction, or damage has occurred or that such shipment was made substantially in accordance with such regulations shall be final and conclusive and shall not be subject to review by any other officer of the United States: * (Emphasis supplied.)

Farmers' Home Corporation

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Act of July 22, 1937, title IV, section 41 (e) (50 Stat. 529):

"Make payments prior to audit and settlement by the General Accounting Office." (Emphasis supplied.)

Charles Carroll of Carrollton Bicentenary Commission-
Joint resolution of August 17, 1937 (50 Stat. 694):

"That for the purpose of carrying out its functions under the joint resolution of June 15, 1936, the Charles Carroll of Carrollton Bicentenary Commission, or the chairman acting for the Commission, is authorized * to determine its necessary expenditures and the manner in which they shall be incurred, allowed, and paid, without regard to the provisions of any other laws governing the expenditure of public funds." (Emphasis supplied.)

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PROVISIONS OF BILLS PENDING BEFORE THE SEVENTY-FIFTH CONGRESS Federal Crop Insurance Corporation

S. 1397, section 5 (i).

H. R. 6483, section 5 (i).

The Corporation "shall determine the character and necessity for its expenditures under this Act and the manner in which they shall be incurred, allowed, and paid, without regard to the provisions of any other laws governing the expenditure of public funds and such determinations shall be final and conclusive upon all other officers of the Government; * * * "" (Emphasis supplied.)

Office of Motion Pictures, Government Printing Office—

H. R. 7131, section 4 (c).

"Any Federal agency ordering services from the Office of Motion Pictures shall pay promptly by check to the Public Printer upon his written request, either in advance or upon completion of the services, all or part of the estimated or actual cost thereof, as the case may be, and bills rendered by the Public Printer in accordance therewith shall not be subject to audit or certification in advance of payment: (Emphasis supplied.)

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Commission for the Commemoration of the Seventy-fifth Anniversary of the Battle of Gettysburg

H. R. 7712, section 2 (b) (4).

66* * * the determinations of the Federal Commission on any matter in connection with the reunion shall be final and conclusive for all purposes; and funds appropriated pursuant to this Act for use by the Federal Commission may be expended without regard to any other provisions of law relating to the expenditure of public money.' (Emphasis supplied.)

Agricultural Adjustment

Surplus Reserve Loan Corporation

S. 2787, section 16 (d):

"The Secretary [of Agriculture] shall determine the character and necessity for its expenditures under this Act and the manner in which they shall be incurred, allowed, and paid, without regard to the provisions of any other laws governing the expenditure of public funds, and such determination shall be final and conclusive upon all other officers of the Government." (Material in brackets and emphasis supplied.)

H. R. 7532, title II, section 25 (a).
H. R. 7577, title II, section 25 (a).
H. R. 7972, title II, section 206 (a).
H. R. 8246, title II, section 206 (a).

"The board [of directors] shall determine the character and necessity for its expenditures under this Act, other than administrative expenditures, and the manner in which they shall be incurred, allowed, and paid without regard to the provisions of any other laws governing the expenditure of public funds, and such determination shall be final and conclusive upon all officers of the Government. (Material in brackets and emphasis supplied.)

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SOCIAL SECURITY ACT PAYMENT PROVISIONS

Because of what are regarded as serious objections to the payment provisions of the Social Security Act of August 14, 1935 (49 Stat. 620), and the noticeable tendency of legislative draftsmen to follow those provisions as a precedent in drafting legislation providing for similar classes of payments, the following comment is made.

The following are typical of the payment provisions contained in the various titles of the Social Security Act:

As to payments to individuals, title II, section 207 (49 Stat. 624, 625):

"The Board shall from time to time certify to the Secretary of the Treasury the name and address of each person entitled to receive a payment under this title, the amount of such payment, and the time at which it should be made, and the Secretary of the Treasury through the Division of Disbursement of the Treasury Department, and prior to audit or settlement by the General Accounting Office, shall make payment in accordance with the certification by the Board." (Emphasis supplied.)

As to payments to States, title IV, section 403 (b) (2) and (3), (49 Stat. 628):

"(2) The Board shall then certify to the Secretary of the Treasury the amount so estimated by the Board, reduced or increased, as the case may be, by any sum by which it finds that its estimate for any prior quarter was greater or less than the amount which should have been paid to the State for such quarter, except to the extent that such sum has been applied to make the amount certified for any prior quarter greater or less than the amount estimated by the Board for such prior quarter.

"(3) The Secretary of the Treasury shall thereupon, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the State, at the time or times fixed by the Board, the amount so certified.' (Emphasis supplied.)

1. The provision is mandatory and requires the Secretary of the Treasury and the Chief Disbursing Officer to pay the amounts certified by the Board. They may not question the correctness of the amounts or decline to make a payment, once certified by the Board, even though they should be in possession of information indicating the amount certified to be erroneous.

If the Board should elect to submit to the Secretary of the Treasury a mere certificate as to amount with no accompanying factual data, there would come to the General Accounting Office for audit purposes only such certificate and the disbursing officer's voucher on which the payment was made a record wholly insufficient to permit of any determination other than whether the amount paid was in accordance with the certificate of the Board.

In practice under the Social Security Act the Social Security Board and the departments charged with administrative duties thereunder have been cooperative and willing to provide the information and records needed by the General Accounting Office but the above objection shows the possibility left open by such payment provisions and what may result if they should be made to apply to less cooperative agencies.

2. The provision prohibits the submission to the General Accounting Office for audit prior to payment (preaudit) any questionable payment as to which the Social Security Board or the Treasury Department might wish an advance audit rather than to proceed with the payment with the possibility of its disallowance later in the postaudit. Preaudit is made available by the General Accounting Office to administrative agencies at their election. The provision amounts to a restriction upon the Social Security Board and the Treasury Department against use of this safeguard and impresses as particularly objectionable in the case of continuing or monthly payments to individuals where the error may be repeated several times before being detected in the postaudit and reported.

Similar payment provisions are contained in the Railroad Retirement Act of 1937, approved June 24, 1937, section 10 (b) (3) (50 Stat. 315), and in the following bills, pending in the Seventy-fifth Congress. It is suggested there be considered by the Committees of the Congress payment provisions not open to the above objections. The aid of the General Accounting Office in drafting such provisions will be extended to the Committees whenever requested.

Noxious weed control

PENDING BILLS

H. R. 4009, section 3 (b) (3).

"The Secretary of the Treasury shall thereupon, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the State, at the time or times fixed by the Secretary of Agriculture, the amount so certified."

Adult civic education

S. 2300, section 4.

H. R. 6485, section 4.

(* * * The Secretary of the Treasury shall thereupon, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay quarterly to the treasurer of each State the apportionment or apportionments so certified."

Adult civic education-Continued.

S. 2503, section 5.

"The Secretary of the Treasury, through the Division of Disbursement of the Treasury Department, shall, upon the certification of the United States Commissioner of Education, pay, in equal semiannual payments, on the 1st day of July and January of each year, to the custodian of the funds for adult education of each State and Territory, the moneys to which the State or Territory is entitled under the provisions of this Act."

Health camps for children of indigent families

H. R. 5970, section 4 (b).

(* * * Upon receipt of such certification, the Secretary of the Treasury shall, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay in accordance with such certification. In case of under or over payment for any quarter, adjustment shall be made in succeeding quarterly payments." Needy incapacitated adults

H. R. 4797, page 5-section 1203 (b) (3).
S. 2880, page 5-section 1203 (b) (3).

"The Secretary of the Treasury shall thereupon, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the State, at the time or times fixed by the Board, the amount so certified, increased by 5 per centum.” Public education-

S. 419 (print as reported in the Senate, amended, No. 224 Senate Calendar), section 4.

H. R. 1634, section 4.

H. R. 5360, section 4.

H. R. 5413, section 4.
H. R. 5803, section 6.

H. R. 5962, section 4.

"'* * * The Secretary of the Treasury shall thereupon, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay quarterly to the treasurer of each State or Territory the apportionment or apportionments so certified." S. 1355, section 4.

H. R. 3133.

(* * * The Secretary of the Treasury shall thereupon, through the Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, pay to the treasurer of each State or Territory the apportionment or apportionments so certified.

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H. R. 3160, section 3.

"The Secretary of the Treasury shall make payments under this Act at the times and in the amounts certified to him by the Commissioner of Education in the Department of the Interior. The Commissioner shall compute the amounts of such payments on the basis of reports on attendance from the State boards of education and the schools entitled to benefits under this Act. The computation made by such Commissioner shall be final and not subject to review by any other officer or agency of any State or of the United States."

H. R. 6099, section 3.

66* * * Upon so finding with respect to any State or Territorial plan the Commissioner shall certify the apportionment for such State or Territory to the Secretary of the Treasury and the Secretary of the Treasury shall thereupon, prior to audit or settlement by the General Accounting Office, pay to the treasurer of such State or Territory the apportionment so certified."

COMPENSATION OF POSTMASTERS OF FOURTH-CLASS POST OFFICES-METHOD OF

COMPUTING

From time to time, various suggestions for simplifying the method of compensating postmasters of fourth-class post offices are proposed. The present method based on percentages of certain items is complicated and results in many errors in computation. The adoption of a simpler method would seem desirable.

AFFIDAVIT ON TRAVEL EXPENSE VOUCHERS

It would facilitate the prompt rendition and settlement of the expense accounts of officers and employees of the Government when traveling on official business away from their official stations or posts of duty if the affidavit in support of such accounts was not required and payment authorized on the certificate of the claimant that the account is just and true in all respects.

The oath was required when practically all the expenses incident to travel were on an actual expense basis as authorized in section 3 of the Subsistence Expense Act of 1926 (44 Stat. 689). However, the Congress in section 207 of the act of June 30, 1932 (47 Stat. 399), amended section 3 of the Subsistence Expense Act of 1926, supra, by providing that civilian officers and employees of the Government while traveling on official business away from their designated posts of duty shall be allowed, in lieu of their actual expenses for subsistence and all fees or tips to porters and stewards, a per diem allowance to be fixed by the head of the department or establishment concerned within limits stated in the act.

This amendment of the Subsistence Expense Act of 1926 placed the allowances to an official traveler on a definite fixed per diem so that his voucher is on the same basis as that of any other claimant, i. e., a claim largely for payment of a fixed amount; and it seems that a certificate by the traveler that the account is just and true in all respects will be sufficient. This is all that is required from other claimants. I recommend that legislation be enacted to eliminate the affidavit from the expense vouchers of Government officers and employees when traveling on official business away from their official station or post of duty.

SALES OF GOVERNMENT PROPERTY-ADVERTISING

It seems as essential that there be advertising in the sale of Government property as when purchases are being made for the Government. The requirement that there be competition in such matters has only been definitely applied to purchases-section 3709, Revised Statutes. While it has been the practice of this Office to suggest that, as a matter of good business, bids should be solicited in the sale of Government property, there is no law definitely requiring such action.

It is believed that it would be in the interest of the United States to enact legislation specifically covering the matter of competition in making sales. Such a law should specify the methods of advertising considered adequate, as, (1) auction sales, advertised in a certain number of local papers a certain number of times, and circulars sent to all local dealers; (2) advertising for bids under similar requirements.

TENNESSEE VALLEY AUTHORITY-AUDIT

Section 9 (b) of the act of May 18, 1933 (48 Stat. 63), provides. that

The Comptroller General of the United States shall audit the transactions of the Corporation at such times as he shall determine, but not less frequently than once each governmental fiscal year * * The expenses for each such audit may be paid from moneys advanced therefor by the Corporation, or from any appropriation or appropriations for the General Accounting Office, and appropriations so used shall be reimbursed promptly by the Corporation as billed by the Comptroller General.

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