Campbell, Hon. Joseph, Comptroller General of the United States; accompanied by George Staples, associate director, Civil Account- ing and Auditing Division; Frederick K. Rabel, assistant associate director, Civil Accounting and Auditing Division; and Robert F. Keller, assistant to the Comptroller General _ - Hollister, Hon. John B., director, International Cooperation Admin- Murphy, John E., controller, International Cooperation Administra- Ohly, John H., Deputy Director for Program and Planning, Inter- Ohly, John H., Deputy Director for Program and Planning, Inter- Staples, George, associate director, Civil Accounting and Auditing Division, General Accounting Office. Staples, George, associate director, Civil Accounting and Auditing Division; accompanied by Frederick K. Rabel, assistant associate director, General Accounting Office.. Letters, statements, etc., submitted for the record by- Brownson, Hon. Charles B., a Representative in Congress from the Hardy, Hon. Porter, Jr., a Representative in Congress from the State of Virginia, and chairman, International Operations Subcom- mittee: Quotation from the House Appropriations Committee, Hollister, Hon. John B., Director, International Cooperation Admin- Meader, Hon. George, a Representative in Congress from the State of Ohly, John H., Deputy Director for Program and Planning, Inter- national Cooperation Administration: Information re Pakistan's contributions as of June 30, 1956. International Cooperation Administration comments on example of overprograming listed in General Accounting Office memo- International Cooperation Administration's comments on General Accounting Office's presentation of status of selected major con- tinuing projects, for which funds were requested in 1957, as at International Cooperation Administration's comments with re- spect to General Accounting Office's suggestions on inclusion in the budget presentation of information on Public Law 480 International Cooperation Administration's comments on the International Cooperation Administration response to General Accounting Office proposal for separation of planning programs from unforeseeable activities. Letter from the Comptroller General, to John B. Hollister_ Letters, statements, etc., submitted for the record by-Continued Submission of International Cooperation Administration comment- ing upon examples of logging projects as disclosed in prior General Accounting Office audit reports. Rabel, Frederick K., assistant to the associate director, Civil Ac- counting and Auditing Division, General Accounting Office: Presentation of the General Accounting Office- Examples of lagging projects as disclosed in prior General Accounting Office audit reports____ Status of selected major continuing projects, for which funds were requested in 1957, as at June 30, 1956. Reddan, John T. M., chief counsel, International Operations Sub- Excerpt from General Accounting Office memorandum re "Finan- Excerpt from General Accounting Office report of January 9, 1957... 35, 153, 154 Excerpt from the General Accounting Office Report on Study of Obligating Bases and Related Administrative Practices, For- eign Operations Administration Excerpt of letter from George Staples, to J. E. Murphy, con- Excerpt of letter from Hon. John B. Hollister, to heads of divisions 1956. Foreign Operations Administration memorandum on examination International Cooperation Administration response to General Letter from George H. Staples, assistant director of audits, Gen- Letter from Hon. Joseph Campbell, Comptroller General of the United States, to Hon. John B. Hollister, January 9, 1957. Letter from Hon. John B. Hollister, to Hon. Joseph Campbell, Letter from Hon. John B. Hollister, to the directors of United States operations missions, August 17, 1956. Letter from John E. Murphy, controller, Foreign Operations Ad- 17 184 186 133 136 137 REVIEW OF THE BUDGET FORMULATION AND PRESENTATION PRACTICES OF THE INTERNATIONAL COOPERATION ADMINISTRATION THURSDAY, APRIL 4, 1957 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON INTERNATIONAL OPERATIONS OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, D. C. The subcommittee convened at 10: 10 a. m., in room 304, House Office Building, Representative Porter Hardy, Jr., chairman of the subcommittee, presiding. Members present: Porter Hardy, Jr., Elizabeth Kee, John A. Blatnik, Charles B. Brownson, George Meader, and Victor A. Knox. Also present: John T. M. Reddan, chief counsel; Richard P. Bray, Jr., counsel; Walton Woods, staff investigator; Phyllis M. Seymour, clerk; and Maurice J. Mountain, consultant. Witnesses present: Hon. Joseph Campbell, Comptroller General of the United States; accompanied by George Staples, Associate Director, Civil Accounting and Auditing Division; Frederick K. Rabel, Assistant to the Associate Director, Civil Accounting and Auditing Division; and Robert F. Keller, Assistant to the Comptroller General. Mr. HARDY. Let the subcommittee come to order. I have a brief statement I want to make in the opening of our session. The Congress has charged this subcommittee with the duty, among others, of making examinations of our nonmilitary foreign-aid program. The purpose of these examinations is to determine how that program is being administered. We look at it rather critically from a standpoint of efficiency and economy. The most practical means I know of by which this subcommittee can measure the effectiveness of our nonmilitary aid program in carrying out the stated purposes of the Mutual Security Act, and determine whether ICA is functioning in an efficient manner, is by comparing the activities of that agency for a given year with its budget presentation for the same year. If that budget presentation does not contain adequate information, we cannot possibly make an intelligent appraisal. Until fiscal year 1956, ICA used what is known as the illustrative method of budget presentation. That method merely told us that for the coming year ICA needed funds for projects of certain types in various countries. I might say, for instance, if they expected to initiate an agriculture program in Egypt, or a housing program somewhere else, all these 1 |