General Accounting Office, created by the Budget and Accounting Act, 1921 (31 U.S.C. 41), was vested with all powers and duties of the six auditors and the Comptroller of the Treasury, as stated in the act of July 31, 1894, and other statutes extending back to the original Treasury Act of 1789. The 1921 act broadened the Government's audit activities and established new responsibilities for reporting to the Congress and to others. The scope of the activities of the General Accounting Office was further extended by the Government Corporation Control Act (31 U.S.C. 841); section 206 of the Legislative Reorganization Act of 1946 (31 U.S.C. 60); the Budget and Accounting Procedures Act of 1950 (31 U.S.C. 65); the act of August 15, 1970, establishing a Cost Accounting Standards Board (50 U.S.C. App. 2168); title II of the Legislative Reorganization Act of 1970 (31 U.S.C. 1151-57, 1171-76); and other legislation.

In general, the audit authority of the General Accounting Office extends to all departments and agencies of the Federal Government. Exceptions to this audit authority relate principally to the activities of the Federal Reserve Board and Federal Reserve Banks, the activities of the Comptroller of the Currency, and funds relating to certain intelligence activities.

Where audit authority exists the General Accounting Office has the right of access to, and examination of any books, documents, papers, or records of the departments and agencies. The law provides that departments and agencies furnish to the Comptroller General such information as he may require including that re

JOHN E. THORNTON. OYE V. STOVALL. THOMAS E. SULLIVAN. JAMES M. CAMPBELL. HERSCHEL J. SIMMONS. LEO HERBERT.

lated to their powers, duties, activities, organization, financial transactions, and methods of business.

ORGANIZATION.-The General Accounting Office is under the control and direction of the Comptroller General of the United States. The Comptroller General and the Assistant Comptroller General are appointed by the President with the advice and consent of the Senate, for a term of 15 years. They are subject to removal only by a joint resolution of the Congress for specified causes or by impeachment. The organizational components of the General Accounting Office are shown in the chart on page 638.

PURPOSE. As an independent agency in the legislative branch, the General Accounting Office was created to assist the Congress in providing legislative control over the receipt, disbursement, and application of public funds.

REVIEWS OF MANAGEMENT PERFORM

ANCE AND PROGRAM RESULTS.-The General Accounting Office audits the receipt, expenditure, and application of public funds by the departments and agencies of the Federal Government. The primary purpose of these audits is to make for the Congress independent examinations of the way in which Government agencies are discharging their financial responsibilities. This includes examining into the efficiency of operations and program management, and determining whether Government programs are achieving the purposes intended by Congress and whether alternative approaches have been examined which might accomplish these objectives more effectively and more economically.

The scope of the work of the General Accounting Office extends not only to the programs and activities

which the Federal Government itself conducts, but also to the activities of State and local governments, quasigovernmental bodies, and private organizations in their capacity as recipients under, or administrators for, Federal aid programs financed by loans, advances, grants, and contributions. The interest of the General Accounting Office also extends to certain activities of those having negotiated contracts with the Government.

In all its audits the General Accounting Office looks to make recommendations to effect greater economy and efficiency in Government operations and to improve the effectiveness of Government programs. Implicit in the audit authority is a responsibility to report significant matters to the Congress for information and use in carrying out its legislative and executive branch surveillance functions.

SPECIAL ASSISTANCE TO THE CON

GRESS.-The General Accounting Office provides special assistance to the Congress, its committees, members and officers, on request. This special assistance can be in any of the following forms:

Legislation may be enacted directing the General Accounting Office to examine a specific matter; special audits, surveys, and investigations may be performed for the committees, members or officers of Congress; professional staff members may be assigned to assist committees in conducting studies and investigations; the Comptroller General or his representatives may testify before committees on matters considered to be within the special competence of the General Accounting Office; and committees or members may request comments on or assistance in drafting proposed legislation or other advice in legal and legislative

matters.

Further, the General Accounting Office may respond to numerous requests from congressional sources for information relating to or resulting from its work and provide advice on

congressional administrative and financial operations.

LEGAL SERVICES AND DECISIONS.

Decisions of the Comptroller General may be applied for or they may arise from the audit work of the General Accounting Office.

When requested by the head of an executive department or independent agency, or a certifying or disbursing officer, the Comptroller General must, by law, determine the legality or propriety of a payment of public funds to be made by them, under them, or pursuant to their certification.

In the area of Government procurement, the Comptroller General has granted to contracting and procurement officers the privilege of obtaining decisions on questions which arise incident to proposed awards of Government contracts. In addition, any bidder may request a decision on the legality of a proposed or actual award of a Government contract adversely affecting him.

Comptroller General's decisions are also required for many legal questions which continually arise from the audit and settlement work of the General Accounting Office.

These decisions are legally binding on the executive branch of the Government and on the General Accounting Office. However, they are not binding on the Congress or the courts.

The legal work of the General Accounting Office also includes the review of proposed additions to or revisions of Government procurement regulations; the preparation of litigation reports for the Department of Justice on court cases generated by or related to the work of the General Accounting Office; and the preparation of reports to the Office of Management and Budget on enrolled legislation awaiting executive action.

FINANCIAL MANAGEMENT IMPROVEMENT WORK.-The General Accounting Office actively encourages and assists executive departments and independent agencies to improve their

financial management systems so that they can administer Federal programs and funds more effectively and economically in accordance with the intent of Congress.

The Comptroller General is responsible for prescribing principles, standards, and related requirements for accounting to be followed by the executive branch departments and agencies. The General Accounting Office assists in the development of acceptable accounting systems and approves them when adequate and in conformance with these requirements. The General Accounting Office also makes periodic reviews of approved accounting systems in operation, the results of which are made available to the heads of the appropriate executive agencies and, when warranted, to the Congress.

In addition, the General Accounting Office, together with the Treasury Department, the Office of Management and Budget, and the Civil Service Commission, conducts a Governmentwide cooperative effort to improve the policies and practices within all aspects of the broad field of financial management. All other Government agencies participate in this Joint Financial Management Improvement Program.

AUDIT OF FINANCIAL STATEMENTS AND ACCOUNT SETTLEMENT.-The General Accounting Office has the statutory responsibility for auditing the financial transactions of certain wholly and partially owned Government corporations and other Federal activities in accordance with the principles and procedures applicable to commercial corporate practice transactions.

It also has responsibility and authority for examining and settling accounts of the Federal Government's certifying, disbursing, and collection officers, including determinations involving accountability for improper or illegal expenditures of public funds. Balances certified by the Comptroller General are binding on the executive branch; however, any settled account

can be reviewed on motion by the Comptroller General or other interested party.

By law, Federal agencies are required to pay bills of carriers subject to the Interstate Commerce Act and the Federal Aviation Act upon presentation prior to audit by the General Accounting Office. In addition bills presented by carriers not subject to these acts are also normally paid before audit. The General Accounting Office is responsible for determining the propriety of rates and classifications on payments made for freight and transportation services furnished to the Federal Government. Associated with this responsibility is the authority to recover overcharges and to settle transportation claims brought for or against the Government.

CLAIMS SETTLEMENT AND DEBT COL

LECTION.-The General Accounting Office settles claims (1) against the United States as required by law or where doubt of legal entitlement exists, (2) by the United States where there are questions about the amount or propriety of the debt, or the liability of the debtor, or the administrative agency has not been able to collect the debt. Claims for or against the United States may involve individuals, business entities, or foreign, State, and municipal governments as claimant or debtor. Settlement of these claims by the General Accounting Office is binding upon executive branch agencies. However, the Comptroller General may review any settled claim on his own initiative or at the request of an interested party. In addition, the claimant or debtor may have further recourse to the Congress or to the courts.

Where an administrative agency has been unable to satisfactorily collect a debt due the Government, and has not been successful in compromising it where the principal amount does not exceed $20,000, the debt is to be certified to the General Accounting Office as uncollectable. After determining the amount due the United States, the

General Accounting Office will superintend the recovery of, and settle and adjust, the debt.

RULES, REGULATONS, AND DECISIONS.-The Comptroller General makes such rules and regulations as deemed necessary for carrying on the work of the General Accounting Office, including those for the admission of attorneys to practice before it. Under the seal of the Office, he furnishes copies of records from books and proceedings thereof, for use as evidence in accordance with the act of June 25, 1948 (62 Stat. 946; 28 U.S.C. 1733).

The General Accounting Office "Policy and Procedures Manual for Guidance of Federal Agencies" is the official medium through which the Comptroller General promulgates (1) principles, standards, and related requirements for accounting to be ob

served by the Federal departments and agencies, (2) uniform procedures for use by the Federal agencies, and (3) regulations governing the relationships of the General Accounting Office with other Federal agencies and with individuals and private concerns doing business with the Government.

All decisions of the Comptroller General of general import are published in monthly pamphlets and in annual volumes.

For further information, contact the Information Officer, General Accounting Office, 441 G Street NW., Washington, D.C. 20548. Phone, 202-3866471.

Approved.

ELMER B. STAATS, Comptroller General of the United States.

EDWARD F. ROTHMAN.
JOHN J. BOYLE.
WILLIAM H. CARR.

H. KENNETH KINGSBURY.
LESLIE P. Cox, JR.
HOWARD W. Aмos.
RAYMOND E. GEEGH.
ERWIN E. M. BERGER.

BERNARD B. HENNING.
CLIFFORD W. SHANKLAND.
FRED MICHEL.

MRS. ALICE J. PURSE.
KEITH F. GODSEY, JR.
(Vacancy).

RAYMOND F. NOYES.
WILLIAM J. Barrett.

Activities

The Assistant Public Printer (Operations) directs actions to provide all ordered printing and binding services. He is also responsible for planning, production, and providing assistance in design of publications.

PRINTING PROCUREMENT DEPART

MENT. Invites bids from commercial suppliers on a wide variety of printing and binding services, awards and administers contracts, and maintains liaison between ordering agencies and

contractors.

PRODUCTION

DEPARTMENT.-Performs all printing and binding work assigned to the Central Office. The processes used are electronic photocomposition; linotype, monotype and hand composition; letterpress; electrotype, photoengraved, and stereotype platemaking; offset photography, stripping, platemaking, and press; and manual and machine bookbinding.

The Assistant Public Printer (Management and Administration) directs the Public Documents Department and personnel, financial, data processing, supply, and maintenance services required in office operations.

MATERIALS MANAGEMENT SERV

ICE.-Procures machinery, operating and maintenance supplies, parts and contractor services required. Acts to salvage, scrap or sell unserviceable or surplus equipment or materials. Administers movement of freight.