personnel was increased later, the arrearage was partially cleared up and it is estimated that with the force available for the fiscal year 1938, it will be possible to complete by December 31, 1937, the audit to June 30, 1937, and maintain that relative position to June 30, 1938. On March 1, 1935, pursuant to Act of February 4, 1935 (49 Stat. 20), United States Savings bonds were placed on sale at 14,337 post offices of which number approximately 3,900 rendered monthly accounts to this Office, the others operating through a central accounting office.

The volume of bonds sold has increased greatly during the past fiscal year and the number of post offices rendering accounts to this Office is now nearly 4,400. Although these accounts are relatively free of complications found in the money-order and postal accounts it requires considerable time and care to verify the reports of sales, deposits of funds, etc.

Postal savings transactions increased during the fiscal year 1937. The number of postal-savings certificates paid during the fiscal year 1936 was 16,165,634 and it is estimated that for the fiscal year 1937, the number will be 17,781,000 and the amount of money involved should run over $1,000,000,000. As of December 1936, this Office is informed, the number of depositors in the system was 2,764,285.

RECORDS

The organization, functions, and activities of the records division of the General Accounting Office as outlined in previous annual reports (1927 report, p. 63; 1928 id, p. 70; 1929 id, pp. 97, 98; 1930 id, p. 96; 1931 id, pp. 116-118; 1932 id, pp. 98, 99) have changed to such a degree that it is deemed advisable to incorporate in this report considerable detail in order that a comprehensive picture of the functions performed by the division, as it is now constituted, may be shown.

The broadest and most far-reaching functions assumed by this division in recent years were those taken over under the provisions of General Regulations No. 82, whereby the check section in its entirety and the receiving and computing section, with the exception of certain voucher computing and typing duties, were transferred from the audit division to the records division, effective September 1, 1935, increasing the division personnel by approximately 1,000 employees, with a corresponding increase in duties as hereinafter outlined. Certain functions heretofore performed by the records division were released during the fiscal year 1937, due to the transfer of the claims development unit and the transportation preaudit unit of the preliminary section to the claims division, effective February 16 and March 16, 1937, respectively; and also the transfer of the transportation files group of the current files section to the claims division, effective May 1, 1937-decreasing the division personnel approximately 125 employees, with a resultant decrease in the duties performed.

In view of the tremendous increase in functions, duties, and personnel, the volume and varied nature of the work necessary to be promptly performed, the scattered filing of the records in custody of the records division, the myriad details in connection with the work, and the necessity for the efficient performance and coordination of all duties, it was necessary that a division organization be perfected

to meet the present needs, and the following portion of this report shows the component parts of the records division organization, with a brief description of the duties performed in the various sections.

Administrative.-The administrative unit conducts correspondence in connection with settled claims and various matters not involving a claim, including questions relating to the Civil Service Retirement Act, dual employment, contracts, accounts, military and civil services, suits of subcontractors under the Heard and Miller Acts, Indian treaties, international treaties, and other miscellaneous matters.

The photostat and forgery unit makes preliminary development of all check cases in which there is alleged forgery or nonreceipt, involving correspondence with the payees and administrative offices relating to all such inquiries, the furnishing of photostatic copies of checks, with forms of affidavit, to the payee, and in certain instances representatives thereof, or administrative offices; considers requests for and furnishes photostatic copies of documents on file in the General Accounting Office, many of which are used in court proceedings, requiring certification by the Comptroller General or the Assistant Comptroller General.

Checks. The duties consist of the audit, analysis, reconciliation, and adjustment of depositary accounts with the Treasurer of the United States, Federal Reserve banks, and bonded banks and Government depositaries abroad, of disbursing officers of all Government establishments, including postmasters (with the exception of checks drawn over certain symbols hereinafter referred to, which checks are not forwarded to the General Accounting Office); instructs disbursing officers by direct correspondence in the proper rendition of their accounts, passing upon the sufficiency of replies to exceptions taken, without further review; reports to the Secretary of the Treasury for covering into "Outstanding liabilities" all checks which have been outstanding and unpaid for 1 full fiscal year in accordance with section 21 of the Permanent Appropriation Repeal Act, 1934 (48 Stat. 1235), and verifies the correctness of claims for amounts of checks so covered into "Outstanding liabilities," and for lost checks, canceling all Government checks in possession of the General Accounting Office where claims are pending, where the amounts as a whole or in part are not due or the payees are indebted to the United States; audits individual Indian moneys and special deposit accounts of the United States Indian Service, and passes upon the sufficiency of replies to correspondence relative to exceptions taken in the accounts.

The following is a statement of the symbol numbers of accounts the paid checks of which are not transmitted to the General Accounting Office by the Treasurer of the United States, as required by law,

1 Checks under this symbol are forwarded to this Office by the Commodity Credit Corporation after receipt from the Treasurer of the United States.

Federal Deposit Insurance Corporation: Home Owners' Loan Corporation:

92-700

92-711

Federal home-loan banks:

79-988 to 79-999

13-801 to 13-812

13-830

899-800 to 899-999

Philippine Islands:

17-300

19-693

19-694

19-695

Receiving and computing. In addition to maintaining a complete system of accounts control, and requiring disbursing officers to submit their accounts in accordance with general regulations of this Office, this section checks and computes all vouchers and schedules of disbursements, collections, and adjustments in said fiscal officers' accounts. with respect to amounts disbursed or collected, appropriations charged or credited, official projects, appropriation limitations, etc., and segregates all vouchers with respect to class of voucher, Government agency, and disbursing officers' symbols, summarizing same by official project, appropriation, and appropriation limitation, for posting in the accounting and bookkeeping division.

Maintains a searching and transcribing unit to fill all requests for vouchers, contracts, transcripts of accounts, and miscellaneous data

for use by all divisions of the General Accounting Office and records the pay and allowances of officers of the Regular Army, National Guard, Reserve Corps, Coast Guard, and officers and surgeons of the Coast and Geodetic Survey and Public Health Service.

The preliminary section receives, searches, indexes, and jackets correspondence in connection with claims, miscellaneous cases, United States commissioners' and consular agents' accounts; maintains the check liabilities file, containing over 100,000 unnegotiated undelivered checks, and prepares reports of them for covering into "Outstanding liabilities" when they are more than 1 full fiscal year old.

The current files section coordinates and assembles, after audit, all fiscal officers' accounts settled in the General Accounting Office, verifies whether all vouchers have been audited, and maintains a control of accounts, service pay rolls, settled claims, and completed contracts, retaining custody of settled claims and completed contracts; has custody of, and gives information from, old records in the custody of the General Accounting Office; searches accounts and papers and transcribes information from all files in its custody; verifies the collection and deposit of funds for use in the settlement of claims or adjustment of fiscal accounts.

The consolidated files section has custody of, and supervises all work on, the major part of old files in the General Accounting Office, maintains a card index thereon, and repairs all torn or mutilated papers; searches accounts and papers and transcribes information from all files in its custody; prepares memorandums and detailed statements from files for claims settlements, etc.

A statement of the volume of work accomplished during the fiscal year 1937, by sections, follows:

The check section audited approximately 185,000,000 checks, reconciled and adjusted 34,015 depositary accounts, and reported 76,343 checks amounting to $1,360,749.15 to the Secretary of the Treasury for covering into "Outstanding liabilities."

The receiving and computing section received, checked, computed, and segregated 20,192 disbursing officers' accounts, containing in excess of 20,000,000 vouchers; recorded 790,173 officers' and enlisted men's vouchers and pay rolls; searched and complied with 474,162 requests for vouchers, transcripts, verification of deposits, information, etc., from the General Accounting Office and other departments and agencies.

The preliminary section received and disposed of 412,859 pieces of mail, indexed 173,081 names, caveated 7,478 potential claims, and prepared 3,971 calls for military histories. The check liabilities unit received and filed 90,481 unnegotiated checks, and disposed of 29,757 by cancelation, covering into "Outstanding liabilities" and claims settlement.

The administrative section developed and disposed of 20,639 check forgery cases, collected $187.95 for 1,253 photostats furnished with charge, furnished 92,702 photostats without charge, and wrote in excess of 25,000 letters relative thereto. A total of 20,471 miscellaneous correspondence cases relating to various subjects was disposed of during the fiscal year.

The current files section assembled for permanent file 20,359 disbursing officers' accounts, with a voucher total in excess of 20,000,000, filed in excess of 300,000 completed contracts with respective index

cards, 158,011 settled claims, 150,000 certificates of settlement, and 450,000 returned vouchers, in addition to other miscellaneous duties. The consolidated files section furnished 39,634 transcripts and requests for information; examined, indexed, and filed 18,196 War, 21,765 Navy, and 32,158 Interior, or a total of 72,119 returns office copies of contracts; filed a large number of returned vouchers; and repaired mutilated vouchers, in addition to other miscellaneous duties. While the records division has custody of the fiscal accounts of the Government covering the period from 1789 to date, and maintains these records so that they are always available for reference and compliance with requests for information therefrom, this work constitutes but a small percentage of the work of the division. In this connection, however, it is deemed proper to call to your attention the unsatisfactory conditions under which these important files are housed.

The records in the custody of the General Accounting Office are now filed in 12 different buildings scattered over the city of Washington and as far away as Alexandria, Va. Some of the buildings are poorly heated and lighted, with little or no ventilation, necessitating the use of hand flashlights for light, and men have to work in lumber jackets, heavy shoes, and mittens in winter to keep comfortable. It can readily be appreciated that confusion, loss of time, misplacement, loss and destruction of valuable papers, additional work, and other unsatisfactory conditions must necessarily result from this situation. To correct this it is urged that a building or buildings with proper facilities and of sufficient size be provided in order that the files of the General Accounting Office may be centralized and consolidated.

25974-37-8