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Searches made for Postal Savings System pursuant to request therefor

Individual depositors' accounts....

Advices for reissuance in lost, destroyed, and stolen
certificates___

6, 404

40, 345

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Federal contracts received and filed during 1940..

Audit of postal-savings accounts:

The following statistics show the volume of this work and
the amounts involved:

Accounts (number).
Receipts...

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
of postmasters' liabilities, etc. (number).

$903, 988, 637. 71

15, 371, 593

13, 462, 836

11, 157, 743

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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.:

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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

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General intra-office records matters-Continued

Transcripts and miscellaneous information furnished General
Accounting Office and departments or other establishments:

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..
Navy.

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 received during 1940-
Cases disposed of during 1940..
Cases on hand June 30, 1940..

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
United States during 1940___.

$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.
(d) Federal Crop Insurance Corporation, Department of Agriculture.
(e) Treasury Department, Procurement Division, Branch of Supply.
(f) Gorgas Memorial Laboratory.

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..
(h) Emergency Crop and Feed Loan Offices, Farm Credit Administration.
(i) Welfare and Recreational Association of Public Buildings and Grounds,
Inc.

(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

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