ture of amounts smaller than were appropriated. This section adopts a proposal of the Hoover Commission, which recommended that the legal basis for this authority of the President should be clarified. This provision would be desirable in the absence of other similar legislation. The general appropriations bill for 1951, however, includes in section 1111 a more detailed provision dealing with reserves. That bill has passed the House and has been approved by the Senate Appropriations Committee. We do not believe it desirable to have two similar statutes dealing with the same subject. We would, therefore, prefer to see section 203 omitted from this bill in the event of enactment of section 1111 of the general appropriations bill. The Bureau of the Budget is also in agreement with section 204, which authorizes the transfer of appropriation balances in connection with reorganizations effected pursuant to law. Reorganization statutes and plans usually make somewhat similar provision in connection with functions transferred from one department to another. On the other hand, it is desirable that department heads be given authority to transfer appropriation balances in connection with transfers of functions within their departments. The first part of section 204 is, in particular, a desirable adjunct to authority vested in several department heads by recently enacted reorganization plans and is in accord with the principles delineated by the Hoover Commission. I would now like to refer to certain of the accounting proposals incorporated in part II of title I of the bill. This title, cited as the Accounting and Auditing Act of 1950, is in keeping with the objectives and goals of the joint-accounting program now under way as a cooperative effort of the Comptroller General, the Secretary of the Treasury, and the Director of the Bureau of the Budget to improve accounting, financial reporting, and auditing in the Federal Government. Under this program considerable progress has been made. The program has now reached the point where statutory changes are deemed necessary in order to enable progress to continue. Three sections of this bill, those dealing with warrant procedures, administrative examination of vouchers, and auditing, are urgently needed. These sections conform to recommendations of the Hoover Commission. The proposed declaration of congressional policy set forth in section 111 is, in our opinion, a comprehensive and sound statement. Appropriate emphasis is placed, in this and other sections, on the importance of continued collaboration among the Comptroller General, the Secretary of the Treasury, and the Director of the Bureau of the Budget in the interest of improved accounting and auditing. The assignment to the heads of executive agencies of responsibility for establishing and maintaining their accounting systems represents an essential and significant step toward realization of improved accounting and budgeting. Other provisions of this part of the bill deserving commendation are those which deal with responsibilities of the Treasury Department for preparation of reports on the financial operations of the Government for the President, the Congress and the public and those which authorize the Comptroller General to discontinue the maintenance in the General Accounting Office of certain accounts when adequate accounting systems and internal controls have been established in other agencies of the Government. In addition, the auditing provisions which authorize the Comptroller General to require that agencies retain contracts, vouchers, and other fiscal records at the places where accounts are regularly kept rather than send them to the General Accounting Office not only paves the way for discontinuation of present practice whereby millions of vouchers and supporting papers are sent to Washington for audit, but also sets the stage for extending the practice of conducting site audits. The Director has expressed our approval of title III of the bill which repeals many statutory provisions that are no longer needed. The Bureau, in conjunction with the General Accounting Office and the Treasury Department, has analyzed these provisions and prepared a report showing the substance of each provision to be repealed and the reason which makes repeal destrable. We will be glad to make a copy of this report available to the committee. Mr. WARREN. May I say one word, Mr. Chairman? Mr. WARREN. Mr. Chairman, I would like to point out that our joint accounting program which this bill writes into law, has the enthusiastic endorsement of eminent accountants who also have knowledge of the Government's fiscal problems. Now one final thing, 10 days ago the House Committee on Post Office and Civil Service, by unanimous vote at a hearing, reported out the bill for better accounting in the Post Office Department. The House passed that bill by unanimous vote. It is now pending before the full committee of the Senate. That bill greatly implements and is a part of the bill that is being presented here today, so far as the Post Office Department is concerned. The CHAIRMAN. Before the gentlemen leave, there are certain sections in this bill that have been agreed to be eliminated, with any amendments made by this committee. Would you give us a list of those so that we might be clear on them? One of them is section 201; is that right? Mr. WEITZEL. That is right. The CHAIRMAN. What are the others? The CHAIRMAN. Is that right? Mr. LAWTON. 203 is contingent upon the passage of the omnibus appropriation bill with section 1111 in its as it now stands. The CHAIRMAN. We can eliminate it and go to the floor and we can put that in by amendment if it is defeated, or they can do it in the Senate. We can leave it out and, if necessary, put it back in in conference.. We can do that. Mr. BONNER. I move we strike out the three sections, Mr. Chairman, and, as you say, if it is found necessary by the lack of enactment of the bill now pending by the Senate, it would be reinserted in this bill. Does that meet with your approval? Mr. LAWTON. Yes. Mr. BONNER. I move they be stricken. The CHAIRMAN. You have heard the motion. Are you ready to vote? All in favor say "aye." (Unanimous affirmative response.) Mr. BONNER. Gentlemen, I now move that we report out the bill favorably. The CHAIRMAN. You have heard the motion. Are you ready to vote? All in favor of the bill will please say "aye." (Unanimous affirmative response.) The CHAIRMAN. It is unanimously voted that the bill be reported out favorably. (The following statements and letters were received by the committee :) Hon. JOHN TABER, 1126 House Office Building, Washington, D. C. JULY 12, 1950. DEAR CONGRESSMAN TABER: I regret deeply that the knowledge of your desire to be heard on H. R. 9038, a bill to authorize the President to determine the form of the national budget and of departmental estimates, to modernize and simplify governmental accounting and auditing methods and procedures, and for other purposes, came to my attention after the committee had met and, without a dissenting vote, ordered reported the above-named bill with certain amendments. The bill was amended by striking out all of section 103, title I, and sections 201 and 203, title II. I am hopeful that the amendments made by the committee will serve to meet the objections you had in mind. However, if you still have objections to the bill as amended, I will be glad to include in the hearings, and call to the attention of the committee, any statement you may wish to make concerning the amended bill. Sincerely yours, WILLIAM L. DAWSON, Chairman. Hon. WILLIAM L. DAWSON, HOUSE OF REPRESENTATIVES, Washington, D. C., July 13, 1950. Chairman, Committee on Expenditures in the Executive Departments, 1501 House Office Building, Washington, D. C. DEAR CHAIRMAN DAWSON: I have your letter of July 12. If I had known that H. R. 9038 was pending before your committee, I would have asked for a hearing · just as soon as you had started on it. The first part of title I relating to the budget is the curse of the bill. Frankly, I have not had enough opportunity-in view of the other pressing matters with which I am beset-to go over the details and describe them to you. I can just say this: That the so-called performance budget which this bill provides is a cover-up to prevent the Congress from having an opportunity to pass on each project separately. These lump-sum appropriations, without specific provision for individual agencies and individual construction items, are such a menace to proper legislative consideration of a bill appropriating funds, that only those who have had no experience in appropriating funds could be deluded into believing that it was in the interests of the Government. Frankly, it will result in the Congress being unable to make anything but a meat-ax cut upon the estimates that are furnished with reference to any department. It will not be able, as it has always tried in the past, to make an intelligent appraisal of the needs of the agencies for an appropriation. Those connected with the executive branch of the Government have for many years tried to put across this cover-up proposal. They have obtained the support of certain groups of accountants who did not understand the situation. It has become a very serious menace at this time. It was a very serious menace in the Hoover report. It gives an administrative agency greater flexibility and the power practically to appropriate, but at the same time it takes away from Congress the power to handle these items itself and to control the way money shall be spent. To get down to the other side of the situation: It does away with the printing of the "green sheets" as a part of the budget submission. The green sheets show for the last completed fiscal year, the current fiscal year, and the next succeeding fiscal year, the number of employees by grade and salary and the amount of money required to meet those salaries for each grade. Without this information being submitted with the budget, it is absolutely impossible for us to tell the needs for personnel of each unit of the Government. This last year, the budget illegally omitted the information and when the agencies were asked for the information 95 percent did not have it available, and they did not make it available to the committee in time to be of service. It can only be of real service if the committees have it in the budget so that it is available to them when they start their hearings. This elimination, to my mind, was absolutely criminal. Frankly, I regard the performance budget and the elimination of the greensheet information as a step backwards-30 years at least-and as an attempt to destroy the control by Congress over the appropriations. I cannot even consider that the departments have made an honest approach to the proposition in any way, and the attempt by your committee to sneak the bill through without an opportunity to be heard is, to my mind, something that I cannot condone. I, nevertheless, appreciate your offer to print any statement that I wish to make and I hope that you will include this in the hearings and the report. I might say that I have written to Mr. Sabath, the chairman of the Rules Committee and asked for a hearing upon this bill and I hope that the Rules Committee will provide the hearing which your committee should have provided, before it reported the bill. Very sincerely yours, JOHN TABER. STATEMENT OF THE AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES ON H. R. 9038 AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES, Washington, D. C., July 13, 1950. Mr. Chairman and members of the committee: The American Federation of Government Employees desires to endorse H. R. 9038, currently under consideration by the Committee on Expenditures in the Executive Departments of the House of Representatives. Generally speaking, it is apparent that the measure will be a step forward in simplifying accounting and auditing procedures within the Federal Government. The size and necessary complexity of our Government business operations has increased in recent years to a point where action by Congress to modernize these business methods becomes essential. In addition to establishing by law the principle of a performance budget for Federal Government operations, the bill will give to the President of the United States and the Bureau of the Budget much-needed authority to develop improved statistical data. The provision authorizing the Director of the Budget to initiate improved plans for management in the executive branch of the Federal Government will establish an incentive for providing more efficient service by that Government to the citizens of the country. In all probability monetary savings will result also, which will further enhance the operations of our Federal service. Accounting and auditing provisions containing the policy of the Congress on these subjects will enable the Chief Executive through the Director of the Budget and the Comptroller General to improve the accounting and reporting functions of these agencies. Taken in its entirety, the bill presents a valuable attempt to streamline Federal fiscal and accounting procedures, which will increase materially the efficiency of the Federal budgetary system. Of particular interest to members of the American Federation of Government Employees, however, are the provisions on page 33, lines 22 to 25, repeating current statutes on personnel ceilings and restricting promotional opportunities for employees of the United States Government. Members of the federation through convention action have instructed their officers to support the elimination of artificial barriers to the efficiency of the Federal service. A system of arbitrary personnel ceilings which does not enable cognizant officials to give proper consideration to the workload at hand can only result in decreasing the effectiveness of an agency's operations. Similarly, limitations on the amount of expenditures for promotion of employees has on many occasions caused an agency to lose the valuable contributions of workers who are capable of filing positions of greater responsibility. In the final analysis, the sums appropriated by Congress for continued operation of Federal agencies, determines the number of employees who shall be retained and the funds available for providing promotions. When viewed from this aspect the repealing provisions noted above simply present a realistic approach to the problem of employing Federal personnel. In addition, these sections should result in monetary savings since the Bureau of the Budget will no longer be required to maintain the elaborate statistical system now in effect to meet the requirements of these laws. Favorable consideration of H. R. 9038 by the committee is earnestly requested by this federation so that Federal employees may be assured in the future that in arriving at the essential number of workers required to complete specific projects proper consideration will be given to the amount of work to be accomplished. Additional opportunities for promotion resulting from the repealing clauses in title III, section 301, will not only benefit individual employees meriting such advances, but will improve the caliber of Federal service by making the abilities of these workers more easily available. GOVERNMENT EMPLOYEES' COUNCIL OF THE AMERICAN FEDERATION OF LABOR, Washington 4, D. C., July 14, 1950. Hon. WILLIAM L. DAWSON, Chairman, House Committee on Expenditures in the Executive Departments, House Office Building, Washington, D. C. Mr. Chairman and members of the Committee on Expenditures in the Executive Departments: The Government Employees Council of the American Federation of Labor recommends that your committee favorably report H. R. 9038, a bill to simplify and expedite the accounting and auditing procedure within the Federal Government. We strongly endorse and recommend the adoption of page 33, lines 22 to 25, repealing the present statutes on personnel ceilings and restricting promotional opportunities for employees of the United States Government. We appreciate the opportunity of being permitted to file a statement on this most important legislation. Most sincerely, THOMAS G. WALTERS, Operations Director, (Thereupon, the committee hearing was closed at 12 noon.) |