Decisions of the Comptroller General of the United States

APPENDIX

REGULATIONS UNDER THE GOVERNMENT CORPORATION

CONTROL ACT

Effective January 1, 1948

[B-59153]

DECEMBER 1, 1947.

10. Sections 105, 106, 202, and 203 of the Government Corporation Control Act, 59 Stat. 597, 599, 600, as amended, 31 U. S. C. 841, provide that the General Accounting Office, "under such rules and regulations as may be prescribed by the Comptroller General of the United States," shall audit wholly owned and mixed ownership Government corporations and the Comptroller General shall report thereon. Pursuant to such authority the following regulations, effective as of January 1, 1948, are made applicable to the corporations subject to the said act.

20. It is the responsibility of each corporation to develop, install, and maintain an adequate system of accounts, records, and internal control. It is the duty of the Comptroller General of the United States to report regarding the adequacy of such systems and to suggest improvements which will make for better control over operations, provide more useful information for management, Congress, or others entitled thereto, or result in simplification of methods and consequent economies. Systems of administrative appropriation and fund accounting pertaining to appropriated funds or funds in an accountable warrant status are subject to the approval of the Comptroller General under the Budget and Accounting Act of 1921, 42 Stat. 25. Requests for such approval and accounting and auditing matters pertaining to the functions of the General Accounting Office under the Government Corporation Control Act should be routed to the Corporation Audits Division, General Accounting Office.

30. Audits will be conducted at the place or places where the accounts of the respective corporations normally are kept. Such audits will be made in accordance with the principles, procedures and standards applicable to commercial corporate transactions and will include, but not be limited to, (a) the audit of corporate financial transactions and (b) the audit of accounts of accountable officers involving transactions of Government corporations which are required by law to be settled and adjusted in the General Accounting Office. The law provides that each corporation shall reimburse the General Accounting Office for the full cost of audits under the Corporation Control Act as billed therefor by the Comptroller General. (Sec. 301 (a), 59 Stat. 601.)

40. Accounts, books, checks (whether canceled, voided, paid, or otherwise), collection documents, contracts, files, financial records, reports, vouchers, and all other papers pertaining to financial transactions or financial status shall be preserved by the respective corporations, unless disposed of pursuant to the act of July 7, 1943, 57 Stat. 380, 44 U. S. C. 366, or other lawful authority. Representatives of the General Accounting Office shall have access thereto, and to all things or property belonging to or in use by the corporations and necessary to facilitate the audit, and such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, and custodians. (Secs. 105, 202. See, also, sec. 313 of the Budget and Accounting Act, 42 Stat. 26.)

50. Officers or agents of Government corporations charged with appropriated funds or funds in an accountable warrant status will not be required to submit accounts current (General Accounting Office Standard Form No. 1019-Revised) to the General Accounting Office, but such officers or agents shall, at the end of each month, promptly render such accounts to the corporations concerned.

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Such officers or agents and the respective corporations shall, as may be required from time to time, furnish statements for use in establishing the status of, or in reconciling, the accounts involved. The adjustment and settlement of such accounts, under the Budget and Accounting Act of 1921, and related laws, will be made by the Corporation Audits Division, after audit thereof has been completed. 60. Each corporation using the facilities of the Chief Disbursing Officer, Treasury Department, must make the necessary arrangements with the Treasury Department to provide for a separate checking-account symbol, a separate series of check numbers, and a separate series of disbursing officer's voucher numbers. 70. All statements of account of the Treasurer of the United States with corporations or disbursing officers (including the Chief Disbursing Officer, Treasury Department) accountable to and acting as agents for corporations, together with paid checks, will be obtained from the Treasury Department by authorized officials of the respective corporations for their use in reconciling such accounts. After reconciling such accounts, the respective corporations shall certify and transmit to the Corporation Audits Division monthly statements, on G. A. 0. Form No. 5092, for use by the General Accounting Office in settling and adjusting the accounts of the Treasurer of the United States.

80. At the termination of each Federal fiscal year, the respective corporations shall certify and transmit to the Corporation Audits Division a list in quintuplicate of all checks drawn on the Treasurer of the United States which shall then have been outstanding and unpaid for one full year after close of the Federal fiscal year in which issued, stating the date, number, and amount of each check and the symbol on which it was drawn, for use by the General Accounting Office in reporting to the Secretary of the Treasury under the provisions of the act approved July 11, 1947, 61 Stat. 308, 309.

LINDSAY C. WARREN, Comptroller General of the United States.