in drafting proposed legislation or other advice in legal and legislative

matters.

Further, the General Accounting Office responds to numerous requests from congressional sources for information relating to or resulting from its work and provides advice on congressional, administrative, and financial operations.

The Congressional Budget and Impoundment Control Act of 1974. specified numerous additional ways in which the General Accounting Office is to assist the Congress: (1) provide information, services, facilities, and personnel (as mutually agreed) to the Congressional Budget Office; (2) assist congressional committees in developing statements of legislative objectives and goals and methods for assessing and reporting actual program performance; (3) assist such committees in analyzing and assessing Federal agency program reviews and evaluation studies; (4) develop and recommend methods for review and evaluation of Government programs; (5) conduct a continuing program to identify needs of committees and Members of Congress for fiscal, budgetary, and program-related information; (6) assist congressional committees in developing their information needs; (7) monitor recurring reporting requirements of the Congress; (8) develop, in cooperation with the Congressional Budget Office, the Treasury, and Office of Management and Budget, an up-to-date inventory and directory of sources and information systems for fiscal, budgetary, and program-related information; (9) assist committees and Members to obtain information from such sources and to appraise and analyze it; (10) develop, with the Congressional Budget Office, a central file of data and information to meet recurring requirements of the Congress for fiscal, budgetary, and program-related information; (11) review and report to the Congress on deferrals and rescissions of budget authority proposed by

the President; and (12) bring suit, where necessary, to assure the availability for obligation of budget authority.

AUDITING

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 agencies engaged in bank supervision and regulation and to 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 related to their powers, duties, activities, organization, financial transactions, and methods of business.

The General Accounting Office has statutory authority to investigate all matters relating to the receipt, disbursement, and application of public funds. Additionally, GAO's audit authority covers wholly- and partially-owned Government corporations. By law, it is authorized and directed to make expenditure analyses of executive agencies to enable the Congress to determine whether public funds are efficiently and economically administered and expended; and to review and evaluate the results of existing Government programs and activities.

The scope of the audit 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 contribu

tions. The interest of the General Accounting Office also extends to certain. activities of those having negotiated contracts with the Government.

GAO's audit activities also include 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.

The responsibilities of the General Accounting Office for determining the propriety of rates and classifications on payments made for freight and transportation services furnished to the Federal Government and for recovering overcharges and for settling transportation claims brought for or against the Government were transferred to the General Services Administration in October 1975, under the General Accounting Office Act of 1974 (31 U.S.C. 52c).

In its audit work the General Accounting Office makes recommendations for greater economy and efficiency in Government operations and for improving the effectiveness of Government programs. Within this 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.

ACCOUNTING

The Comptroller General has the following statutory responsibilities with respect to the accounting systems of Federal agencies:

Prescribe the accounting principles, standards, and related requirements to be followed by the agencies;

Cooperate with Federal agencies in developing their accounting systems; Approve agency accounting systems when they are deemed adequate and

meet prescribed principles, standards, and related requirements;

Review from time to time agency accounting systems in operation;

ADAN

Conduct, jointly with the Office of Management and Budget and thei Treasury Department, a continuous program to improve accounting and financial reporting in the Federal Government. (By invitation, the Civil Service Commission and the General Services Administration also participate in a leadership role in this Joint Financial Management Improvement Program.)

By law, the Comptroller General cooperates with the Secretary of the Treasury and the Director, Office of Management and Budget, in developing for use by all Federal agencies standardized information and data processing systems and also standard terminology, definitions, classifications, and codes for Federal fiscal, budgetary, and program-related data and information.

LEGAL SERVICES AND DECISIONS

The legal work of the General Accounting Office is centered at the headquarters office in its Office of the General Counsel.

So far as most Federal departments and agencies are concerned, the Comptroller General makes final determinations as to the legality of actions taken by them with regard to accountability for the use of public funds. These determinations are made in connection with actions already taken and on an advance basis upon request by certain responsible officers of the Government. Decisions of the Comptroller General concerning the legality of payments may arise from the audit work of the General Accounting Office or may be applied for by the heads of departments or agencies or by certifying and disbursing officers with regard to payments to be made.

The Comptroller General also considers questions which arise in connection with the award of Government

contracts and certain contracts under Government grants. Statutory and regulatory procedures precisely define the manner in which these Government awards are to be made, and those competing for such awards who believe that requirements have not been met in any particular instance may apply to the Comptroller General for a deter

mination.

Decisions of the Comptroller General are binding upon the executive branch of Government but do not bind the Congress or the courts.

The legal work of the General Accounting Office also covers a wide range of advisory services-to the Congress, its committees, and Members with respect to the legal effect of statutory provisions and implications of proposed legislation as well as assistance. in drafting legislation; to the Department of Justice primarily in the form of litigation reports on court cases generated by or related to the work of the General Accounting Office; and to the courts in connection with cases involving the award of Government contracts. In addition there is daily coordination between the staff of the Office of the General Counsel and the audit and operating staffs with regard to the legal consequences of issues raised in the course of reviews of Government activities.

CLAIMS SETTLEMENT AND
DEBT COLLECTION

The General Accounting Office settles claims by and against the United States as required by law. Claims 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. Claimants and debtors have further recourse to the Congress or to the courts.

Where an administrative agency has been unable to collect a debt due the

Government (or has not been successful in compromising it if under $20,000), the debt is certified to the General Accounting Office as uncollectable. After determining the amount due the United States, the General Accounting Office superintends its recovery, and ultimately makes final settlement and adjustment.

REGULATORY REPORTS REVIEW

Under the Federal Reports Act amendments (44 U.S.C. 3512) of November 16, 1973, GAO reviews the existing information-gathering practices of independent regulatory agencies. Information report forms designed by these agencies for the collection of information from the public are required to be cleared by GAO before they may be issued. The purposes of the review and clearance functions are to ensure that information is obtained with minimum burden on those businesses required to provide the information, to eliminate duplicate data-collection efforts, and to ensure that collected information is tabulated so as to maximize its usefulness.

ENERGY DATA VERIFICATION

Under the Energy Policy and Conservation Act (42 U.S.C. 6201), approved December 22, 1975, the Comptroller General is empowered to conduct verification examinations of energy-related information developed by private business concerns under certain circumstances delineated in the act. For the purpose of carrying out this authority, the Comptroller General may issue subpoenas, require written answers to interrogatories, administer oaths, inspect business premises, and inspect and copy specified books and records. Certain enforcement powers are provided, including for some types of noncompliance the power to assess civil penalties and to collect such penalties through civil action. A new regional suboffice has been established at Houston, Texas, to carry out the responsibilities created by this act.

RULES, REGULATIONS, 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: principles, standards, and related requirements for accounting to be observed by the Federal departments and agencies; uniform procedures for use by the Federal agencies; and 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.

GAO REPORTS

As required by the Legislative Reorganization Act of 1970, the Comptroller General sends each month to the Congress, its committees, and its Members a list of GAO reports issued or released during the previous month.

Copies of GAO reports are provided without charge to Members of Congress and congressional committee staff members; officials of Federal, State, local, and foreign governments; members of the press; college libraries, faculty members, and students; and nonprofit organizations. The price to the general public is $1 a copy, except as noted.

Copies of these reports are available from the General Accounting Office, Room 4522, 441 G Street NW., Washington, D.C. 20548. Phone, 202-2756241.

For further information, call the Information Officer, General Accounting Office, 441 G Street NW., Washington, D.C. 20548. Phone, 202275-6202.

Approved.

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