[COMMITTEE PRINT]

FEDERAL REAL AND PERSONAL PROPERTY INVENTORY REPORT (CIVILIAN AND MILITARY) OF THE U.S. GOVERNMENT, COVERING ITS PROPERTIES LOCATED IN THE UNITED STATES, IN THE TERRITORIES, AND OVERSEAS, AS OF JUNE 30, 1960

PART I

INTRODUCTION

This Federal property inventory report represents a compilation of the assigned values of real and personal property owned or controlled by the Federal Government. This is the sixth inventory report issued by the House Committee on Government Operations which records, in a comprehensive and concise manner, assets of the Government located throughout the world as of June 30, 1960. Previously the committee has compiled Federal property inventory reports as of June 30, 1955 (12th Intermediate Report, Report No. 1930, 84th Cong., 2d sess.), June 30, 1956, June 30, 1957, June 30, 1958, and June 30, 1959.

Each year the committee staff assigned to this project, together with Government department and agency representatives working with the staff, have delved further into the inventory accounting systems employed by the Federal departments and agencies in an effort to include assets not previously included because of incomplete records or because inventories were not under inventory accounting control. One needs only to compare the previous inventory reports to visualize clearly the great progress which has been made in the improved accounting methods and recordkeeping for the gigantic amounts of real and personal property owned or controlled by the Federal Government. Up-to-date accounting systems and stimulated interest in property inventories have strengthened the efforts of Government departments and agencies in bringing inventories under accounting control. This progress, which is being observed by Members of Congress and especially the membership of this committee, has been encouraging.

Again this year, additional refinements are reflected within this Federal property inventory report. Concentrated efforts will continue, in working with Government department and agency representatives, to improve and broaden the scope of the property inventory undertaking. It is the desire of the committee to prepare, in the not too distant future, an inventory report which will furnish the Congress and the public a complete and comprehensive listing of Federal personalty, recorded at acquisition cost, and Federal realty at known. or estimated acquisition cost as well as estimated present-day evaluations. This objective has been partially realized. In this report, as has been done previously, Capitol Hill realty is recorded at estimated present-day evaluations; also, public domain is recorded at estimated present-day evaluations. In addition, this report reflects estimated

present-day evaluations of Federal realty previously recorded at "zero value" or recorded at $1 for accounting purposes. Progress continues in the direction of attaining the ultimate objective of the committee of presenting a realistic and defensible inventory report reflecting "in-use" or estimated present-day evaluations.

In June of this year the committee published "The Federal Property Inventory Undertaking of the House Committee on Government Operations-An Endeavor To List Real and Personal Assets of the Federal Government on a Worldwide Basis-A Long Overdue Accomplishment." This study enumerated the history of the property inventory undertaking since its inception, the methods employed in obtaining real and personal property data from the Government departments and agencies, as well as Capitol Hill properties, and the improvements reflected in the individual annual reports. The accomplishments of the Committee on Government Operations, working with property representatives on the project, are set forth in the study. Such a study was prepared as a result of numerous inquiries from school and university libraries, as well as individuals, and others concerning this undertaking by the committee and the progress made to date in recording values of real and personal property of the Federal Government located throughout the world.

FEDERAL PERSONALTY

Most Federal personalty figures in this report are furnished the committee by the Department of the Treasury on request of the chairman of the committee. The Department of Defense reports all its inventories, real and personal, to the committee direct for inclusion in the report. These figures cover assets of the three military departments and the Corps of Engineers, civil functions. Personalty inventories of the Architect of the Capitol, the Sergeant at Arms of the U.S. Senate, the Clerk of the House of Representatives, the Library of Congress, the Supreme Court of the United States, the U.S. courts of appeals, U.S. district courts, and the special U.S. courts are reported to the committee direct.

Federal personalty (exclusiv of cash and related cash items) is reported herein at acquisition cost. This manner of reporting these assets has been discussed with representatives of the General Accounting Office and Department of the Treasury. It is the consensus of opinion that this approach represents a realistic method of recording personalty items, especially in light of replacement costs and in view of amounts received for such items when they are declared surplus and offered for sale. In recording values of items such as paintings, portraits, statues, numerous publications, and volumes of books where records are unavailable or the acquisition cost is unknown, an estimated or known value has been used. Numerous personalty assets of the Federal Government are listed on its inventory records at "no value" inasmuch as some such items were donated to the Federal Government (at no cost) and in many instances it is impossible to place a realistic value on these properties because of their patriotic or sentimental, rather than intrinsic value. Such is the case of many items to be found in the Library of Congress, the Smithsonian Institution, the National Archives, and in other storehouses of the Nation. Some months ago the famous Hope diamond was donated

to the U.S. Government. It is valued at figures ranging from something like $200,000 to $2 million. Even though it is a recognized fact that this asset is worth a considerable sum of money, it is not included in the inventory reports published by this committee.

The increase in personalty figures in our reports are mainly a result of refinements brought about by improved recordkeeping within the Government and inventories having been brought under inventory accounting control. The Treasury Department has been instrumental in furnishing personalty data to the committee which reflect refinements in many areas of accounting throughout the Government. This has been particularly noted in the worldwide inventories of the Department of Defense.

FEDERAL REALTY (EXCLUDING PUBLIC DOMAIN)

Federal realty is listed herein, for the most part, at acquisition cost, with usage categories and number of acres noted. In many instances, realty which has been donated to the Government, or obtained at no cost, has been recorded previously in our property inventory reports at "no value" or at $1, for accounting purposes.

Last year departments and agencies having such properties under their jurisdiction were requested to affix an estimated present-day evaluation on such realty. Cooperation in this endeavor was received from each department and agency having such realty and methods and practices employed in the evaluation of public domain lands were used in the establishment of current evaluation on "no value" lands. These up-to-date evaluation figures have been furnished the committee direct by the departments or agencies concerned. This additional refinement has been accomplished by the efforts of experienced and qualified personnel within the departments, thus making it unnecessary to bear the expense of engaging outside appraisal firms for the undertaking. The committee is gratified at its accomplishment of having its property inventory report reflect either estimated present-day or acquisition cost values placed on all Federal realty.

In keeping with the desires of the committee, the Architect of the Capitol has again furnished realty figures for inclusion in this report which reflect estimated present-day evaluations on properties under his control.

It should be noted that this inventory report records, for the first time, the realty assets of the St. Lawrence Seaway Development Corporation. This joint project, involving the United States, was recently completed and dedicated; however, because of the intricacies involved in property accounting, accurate property records have only recently been made available.

Construction work-in-progress figures for all Government departments and agencies, including the Department of Defense, are again recorded in the realty portion of this report. Ordinarily the accepted Government procedure of recording a Federal project is to await its completion. When the Government actually takes possession of the project, it is then recorded on the books of the Government. The committee feels that a realistic manner of recording the Government's investment in a project which is in the process of construction is to record the actual investment at the close of the fiscal year, rather than await a project's completion to record its value. Our manner of re

cording construction-in-progress figures reflects the ultimate objective of a comprehensive and complete listing of all Federal assets in all areas at a given time, rather than limited reporting in selected areas. This is also representative of accepted good bookkeeping methods and practices.

It should be borne in mind that the acquisition costs recorded for some buildings and facilities are representative of present-day evaluations. This is true when considering the value of buildings and facilities which have been constructed or purchased recently.

An additional refinement in the realty portion of our report this year is the listing of Federal realty, excluding public domain, not only by departmental jurisdiction and general location (whether located in the United States, in the territories, or overseas), but by a breakdown of the acreage by States. This additional information is of particular interest not only to the congressional offices, but to the general public as well. A further breakdown of real property by State, county, and department, as well as cross indexed department and individual State listings, is available in the office of the Committee on Government Operations, or from the General Services Administration.

FEDERAL REAL ESTATE THE ULTIMATE ADOPTION OF PRESENT-DAY ESTIMATED EVALUATION PROCEDURES

As pointed out previously, Federal realty under the jurisdiction of the Architect of the Capitol, public domain acreage, as well as realty heretofore list at "zero value," is recorded in this report at estimated present-day evaluation. Other realty is recorded at acquisition cost. In most instances the acquisition-cost figures in no way represent present-day value. In many instances values have increased tremendously while in others the properties have decreased in value.

Assistance has been pledged, at the convenience of the Committee on Government Operations, by the American Institute of Real Estate Appraisers to assist and advise in setting guidelines and appropriate criteria which can be employed in the reevaluation of Federal realty. These end results will determine the methods to be utilized in recording estimated present-day evaluations of Federal realty presently recorded at acquisition cost. This invaluable assistance has been offered on a pro bono publico basis by the institute.

Avenues are being explored in an endeavor to reach agreement between Government representatives as to a suitable approach to this undertaking. The multitude of properties, their age, and jurisdiction make the undertaking a complex one, but one which the committee feels can be accomplished and one that is long overdue.

It has been concluded that an honest approach to the evaluation of Federal realty is to use a formula of "estimated replacement cost, less depreciation." From this formula, it is expected that reevaluation criteria will be developed and put into practice. The committee deplores a continuation of the present practices of evaluation by governmental authorities who are aware that such practices result in misleading and antiquated evaluations which demand a more convincing defense than has been made of them. Remedial practices which will correct this situation should be initiated immediately.

Renewed efforts are being made to secure the adoption of improved standards in evaluation procedures and practices. The committee