Classes: Searches made for Postal Savings System pursuant to request therefor Individual depositors' accounts.... Advices for reissuance in lost, destroyed, and stolen 6, 404 40, 345 Federal contracts received and filed during 1940.. Audit of postal-savings accounts: The following statistics show the volume of this work and Accounts (number). Disbursements. 23, 453 85,975 $913, 388, 898. 97 Paid certificates audited (number). Paid certificates arranged (number). Paid certificates filed (number)... Payments of certificates investigated, reconciliations $903, 988, 637. 71 15, 371, 593 13, 462, 836 11, 157, 743 62, 296 Amount $26, 870. 93 1, 003, 509. 43 946, 520. 93 The accounts audited covered the period February 1, 1939, to January 31, 1940. The number of paid certificates audited was about 400,000 less than for the preceding period, February 1, 1938, to January 31, 1939, and the amount paid depositors was also smaller by $32,411,420.59. UNITED STATES SAVINGS BONDS, INTERNAL REVENUE STAMPS AND MIGRATORY-BIRD-HUNTING STAMPS By various acts of the Congress sale of the above enumerated bonds and stamps was directed to be made by postmasters. Proceeds of sales are deposited in the Treasury as public debt, internal revenue, and miscellaneous receipts, respectively. The following tabulation shows the volume of accounts, sales, etc.: Checks audited (approximately). Depositary accounts reconciled and adjusted_____ Reports to the Secretary of the Treasury of checks to be covered into "Outstanding liabilities". 138, 535, 487 36, 312 Checks so reported. Amount involved.. Mail, pieces handled.. Names indexed........ 3, 173 121, 381 $1,490, 962. 21 300, 689 173, 153 Calls for military histories prepared and transmitted.. Potential claims caveated.... Liabilities matters: Checks on hand July 1, 1939.. 11, 782 1, 386 78, 555 General intra-office records matters-Continued Transcripts and miscellaneous information furnished General Requests for on hand July 1, 1939. Requests for received during 1940. Furnished during 1940--- Requests for on hand June 30, 1940.. Contracts examined, indexed, and filed: War.. Interior.. Receiving and computing: Accounts on hand July 1, 1939. Accounts received during 1940 1, 343 53, 645 52, 515 2, 473 21, 735 30, 719 31, 019 83, 473 269 18, 246 18, 170 345 15, 506 610, 395 619, 007 6, 894 Accounts checked, segregated, computed, and forwarded during 1940.___ Accounts on hand June 30, 1940. Searching and transcribing: Requests on hand July 1, 1939. Requests received during 1940... Requests completed during 1940 Requests on hand June 30, 1940.. Forgery matters developing into United States claims Cases on hand June 30, 1939- Cases referred to Secret Service for investigation during 1940---Cases referred to the Treasurer of the United States for reclamation during 1940.... Original checks forwarded to the Treasurer of the United States for reclamation, and for payments to claimants or deposit into the Treasury, during 1940___ Original checks returned by the Treasurer of the United States for 4,575 6, 308 8, 023 2, 860 1,500 5, 141 7,727 credit during 1940.......... 9, 234 Amount of the original checks forwarded to the Treasurer of the $250, 704. 87 Amount collected on duplicate payments and forged checks during 1940.... $148, 095. 80 Special Audits and Assignments SPECIAL AUDITS The transactions of the following agencies are specifically required by law to be audited by the General Accounting Office, and reports on such audits are required, in some instances, to be submitted to the agencies and/or to the Congress. They will not, therefore, be included herein: (a) Tennessee Valley Authority. (b) United States Maritime Commission. (c) Agricultural Marketing Revolving Fund, Farm Credit Administration. The transactions of other agencies, due to decentralized organization or the nature of their activities, must also be audited in the field. The reports made of such audits serve in facilitating the settlement of their accounts and to supplement the audit of their accounts in Washington. Among such agencies are the following: (g) Federal Farm Mortgage Corporation, Department of Agriculture.. (j) Panama Canal. (k) Collectors of Customs. SPECIAL AUDITS TENNESSEE VALLEY AUTHORITY Audit of the accounts, records, and transactions of the Tennessee Valley Authority was continued during the fiscal year pursuant to section 9 (b) of the Tennessee Valley Authority Act as amended August 31, 1935, 49 Stat. 1080, providing in part as follows: 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 * * * He shall make report of each such audit in quadruplicate, one copy for the President of the United States, one for the chairman of the Board, one for public inspection at the principal office of the Corporation, and the other to be retained by him for the uses of the Congress: Provided, That such report shall not be made until the Corporation shall have had reasonable opportunity to examine the exceptions and criticisms of the Comptroller General or the General Accounting Office, to point out errors therein, explain or answer the same, and to file a statement which shall be submitted by the Comptroller General with his report. Due to the broad provisions of the act, supra, vesting wide discretionary powers in the board of directors, the entirely novel character and experimental nature of activities conducted, and an apparent misconception by officials of the Corporation of the duties and responsibilities of the General Accounting Office, unusually difficult and complex audit problems have been encountered. Although audit of the Corporation's transactions has heretofore been delayed and/or retarded for one reason or another, such audit is now current insofar as it is possible. During the fiscal year 1940, audit functions respecting accounts of the Corporation were coordinated, resulting in prompt, uniform, and corrective measures to aid in securing a proper accounting for public funds. As a result of increased cooperation by Corporation officials, erroneous payments have been recovered, the number of voucher exceptions reduced, and questionable or unauthorized activities and procedures discontinued. In deference to requests of Corporation officials, complete accounts for periods subsequent to February 28, 1939, were not required to be forwarded to Washington for audit. Accordingly, all vouchers and supporting documents were retained in the files of the Corporation and are being audited by personnel detailed to Knoxville, Tenn., for that purpose. Although such procedure results in increased expense to this office and places greater responsibility on the auditors, it enables the auditors to obtain complete and material information, not otherwise available, regarding financial transactions, with a minimum of expense and inconvenience to the Corporation. Procedure has been adopted whereby the Corporation is currently advised of voucher exceptions, and replies thereto are being considered prior to formal presentation of audit reports to the board of directors. This arrangement makes it possible to dispose of a large number of differences prior to stating the final audit report. Such reports for the fiscal years 1935-39, inclusive, have been presented to the Corporation, certificates covering settlement of the accounts for the fiscal year 1934 have been issued, and examination of 1940 transactions is now in progress. In view of the amendment, approved August 31, 1935, to the organic act, the Comptroller Gen |