Sincere interest in the report is constantly being expressed and favorable commendations are being received on the project itself and the work the committee is doing in constantly improving this long overdue public undertaking. The report has been the subject of several newsletters originating in congressional offices. In some instances, information in a newsletter will list the total Federal property assets as well as figures covering Federal assets located in a particular area or State. The committee feels that each Federal property inventory report it releases is a step forward in realizing the objectives of House Resolution 26, introduced in the House of Representatives on January 5, 1955, by former Congressman Martin Dies and referred to the House Committee on Government Operations. Our initial report, as of June 30, 1955, was a starting point and represented efforts in recording Federal assets in one document-in the form of an annual inventory report. Until that time there was no central place where one could find data covering all Federal real and personal assets located in continental United States, the Territories, and at overseas bases. Since this initial undertaking, each Federal property inventory report has reflected improvements and refinements. A primary objective in improving our Federal property inventory reports has been the recording of real and personal assets of the Federal Government in a realistic way to record realty assets at acquisition cost as well as at estimated present-day evaluations and to record personalty assets at acquisition cost. The undertaking of evaluating public domain properties and real property hereto recorded at zero value or at $1 (for accounting purposes) has been a tremendous task and one made possible by interest in, and participation by, the departments and agencies having such properties under their control. The property representatives of these departments and agencies who have worked with the committee staff in completing this assignment are to be congratulated on the job which has been done. Federal personalty will continue to be reported at acquisition cost. This decision has been on the advice of the General Accounting Office representatives and other accounting specialists within the Government. The committee is proud of the accomplishment of having this inventory report reflect present-day estimated evaluations on vast areas of realty. It is expected that in the near future evaluation criteria will be formulated and put into practice which will enable the committee to compile and present to the Members of Congress and to the public an inventory report which will be more realistic, practical, and useful than one which merely reflects acquisition cost figures in certain realty areas. The Territory of Alaska became our 49th State by Presidential proclamation on January 3, 1959. As a result of this action, some change has taken place in the location of assets of this State in our report. Assets of the new State will be found listed with assets of the "Continental United States" and separated from the "Territories" listings in most intances. The Territory of Hawaii, which became our 50th State by Presidential proclamation on August 21, 1959, continu es to have its assets listed herein under the "Territories" listings this year. For the sake of clarity, reference is made to section 48 of Public Law 86-70, 86th Congress, 1st session, dated June 25, 1959, which reads: DEFINITION OF "CONTINENTAL UNITED STATES" SEC. 48. Whenever the phrase "Continental United States" is used in any law of the United States enacted after the date of enactment of this Act, it shall mean the 49 States on the North American Continent and the District of Columbia, unless otherwise expressly provided. Therefore, it should be understood that assets of the Federal Government located in Alaska are considered as being located in Continental United States without any particular additional reference being made thereto. It is understood that an omnibus bill is in preparation at the present time further clarifying the term, "Continental United States." This has been brought about by the Hawaii statehood proclamation. It is expected that the words "Continental United States" will be changed to read "States of the Union." This further change will be reflected in subsequent property inventory reports. The scope of an inventory of the properties owned by the Federal Government is tremendous and complex. These inventories are located in areas throughout the world and the recording and reporting of such assets is a massive undertaking. Improved bookkeeping methods and accounting controls are proving to be most helpful, both within the civilian and military departments of the Government. Government property representatives assisting in this endeavor are most interested in improving records which represent the Government's investment in the real and personal property fields. It has been established that the need is great for an up-to-date Federal property inventory project such as the committee has undertaken. This project will continue to reflect various economic changes in values as well as improved inventory reporting practices. These results, represented in informative report form, will be of constant utility. In compiling and reporting data of a classified nature for inclusion in this report, the committee has, of course, complied with necessary security regulations. Efforts have been made to record classified data in a manner which will insure secrecy and at the same time remain informative and accurate. Breakdown figures have been used in each instance possible and only in restricted areas have lump-sum figures been recorded. Substantiating data covering classified areas are available within the departments for those qualified to see and study on a need-for-use basis. Since 1950 there has been a remarkable increase among county, city, and State officials in interest and activities of property values. Numerous requests for our property inventory report have been received from State governments. For a long time many State governments have been interested in having up-to-date inventories of their real properties which reflect present-day evaluations. Although there is a great difference in the methods and manner of recording property and its value in States at the present time, there are strong indications that a uniform pattern will be established in the not too distant future for recording these inventories. There is an aroused interest in this subject at the present time and State officials are exchanging ideas, methods, and proposed procedures for improving real property accounting and evaluation processes. The Federal property inventory report, issued by the Committee on Government Operations, is being used as a handbook in many States at the present time and more and more attention is being focused on this publication, not only in the Washington area, but throughout the United States. The committee's deadline for issuing our inventory reports is December. However, this deadline has been extended this year as is evidenced by the issue date of our current report. The delay this year has been caused by the untimely fire in the Pentagon back in the early summer. Unfortunately, some of the files covering real property of the Department of the Air Force were completely destroyed by the blaze and it has been necessary for the Department to obtain needed data for reconstructing files from field offices of major Air commands. Because the Department of Defense furnishes the committee with comparative figures for the current year as well as the preceding year on its inventories, it has been necessary to encounter a short delay in the compilation of essential statistics. Therefore, instead of our report being released in December of 1959, it is being released in January. This Federal property inventory report records Federal real and personal assets, worldwide, as being over $264 billion as of June 30, 1959. These are sizable amounts and it is quite evident that recordkeeping operations involved in inventories of this magnitude are tremendous. It is also interesting to observe, in this connection, that the size of the national debt, as of June 30, 1959, was recorded as being over $284 billion-an all-time high. Efforts will continue in making additional improvements in our property inventory undertaking. Eventually the committee expects to be able to present an inventory report which will reflect not only acquisition cost of Federal real estate, but at the same time its estimated present-day evaluation. At that time the basic objective of the undertaking will have been accomplished. With continued interest in and cooperation by Government department and agency representatives, working with the committee staff, the ultimate objective can be accomplished. The results so far attained bear eloquent testimony to the effective performance, by the Committee on Government Operations, of a task assigned to it by Congress. There will obviously always remain the job of keeping the inventory currently in correspondence with the assets of the Government. 49199-602 |