mature and be paid not later than the end of the budget year in which the original notes shall have been issued.

NOTES REDEEMABLE PRIOR TO MATURITY

SEC. 723. No notes issued pursuant to this part shall be made payable on demand, but any note may be made subject to redemption prior to maturity on such notice and at such time as may be stated in the note.

SALE OF NOTES

SEC. 724. All notes issued pursuant to this part may be sold at not less than par and accrued interest at private sale without previous advertising by the Director of the Department of Finance.

PART 3-PAYMENT OF BONDS AND NOTES

PAYMENT OF BONDS AND NOTES

SEC. 731. The power and obligation of the District to pay any and all bonds and notes issued by it pursuant to this title shall be unlimited and the District Council shall apply the proceeds of such taxes and other revenues as may be necessary to pay the principal of and the interest on such bonds and notes and may, for the purpose of paying such principal and interest, by ordinance levy ad valorem taxes without limitation of rate or amount upon all the taxable property within the District. The faith and credit of the District is hereby pledged for the payment of the principal of and the interest on all bonds and notes of the District hereafter issued pursuant to this title, whether or not such pledge be stated in the bonds or notes (in the case of bonds) in the law authorizing their issuance.

TITLE VIII-FINANCIAL AFFAIRS OF THE DISTRICT

PART I-FINANCIAL ADMINISTRATION

SURETY BONDS

SEC. 801. The Director of the Department of Finance and each other officer and employee of the District required to do so by the District Council by ordinance shall provide a bond with such surety and in such amount. as the District Council may require by ordinance. The premiums for all such bonds shall be paid out of appropriations for the Department of Finance.

DIRECTOR OF THE DEPARTMENT OF FINANCE; POWERS AND DUTIES

SEC. 802. The Director of the Department of Finance shall have charge of the administration of the financial affairs of the District and to that end he shall— (1) compile the current estimates for the budget;

(2) supervise and be responsible for the disbursement of all moneys and have control over all expenditures to insure that appropriations are not exceeded;

(3) maintain a general accounting system (including inventory and property control records) for the District government and each of its agencies; keep books for and exercise financial budgetary control over each agency; keep a separate account for each item of appropriation, showing the amount of the appropriation, the amounts paid therefrom, the unpaid obligations against it, and the unencumbered balance; require reports of receipts and disbursements from each receiving and spending agency of the District government to be made daily or at such intervals as he may deem expedient; (4) submit to the District Council through the District Manager a monthly statement of all receipts, disbursements, and obligations in sufficient detail to show the exact financial condition of the District;

(5) prepare for the District Manager, as of the end of each fiscal year, a complete financial statement and report;

(6) supervise and be responsible for the assessment of all property within the corporate limits of the District for taxation, make all special assess

ments for the District government, prepare tax maps, and give such notice of taxes and special assessments as may be required by law;

(7) supervise and be responsible for the collection of all taxes, special assessments, license fees, and other revenues of the District or for whose collection the District is responsible and receive all money receivable by the District from the Federal Government, or from any court, or from any agency of the District;

(8) have custody of all public funds belonging to or under the control of the District, or any agency of the District government, and deposit all funds coming into his hands in such depositories as may be designated, and under such terms and conditions as may be prescribed, by resolution of the District Council, or, if no such resolution be adopted, by the District Manager;

(9) have custody of all investments and invested funds of the District government, or in possession of such government in a fiduciary capacity, and have the safekeeping of all bonds and notes of the District and the receipt and delivery of District bonds and notes for transfer, registration, or exchange; and

(10) approve all proposed expenditures; unless he shall certify that there is an unencumbered balance of appropriation and available funds, no appropriation shall be encumbered and no expenditure shall be made.

WORK PROGRAMS; ALLOTMENTS; CONTROL OF APPROPRIATIONS

SEC. 803. The District Council may, by ordinance, provide for (1) the submission of work programs by the various departments and agencies, (2) the allotment by periods of the sums appropriated to such departments and agencies for the entire budget year, (3) the transfer of appropriations during the budget year of any unencumbered appropriation balance for one item of appropriation to another item of appropriation, and (4) the allocation to new items of funds appropriated for contingent expenditure.

ACCOUNTING SUPERVISION AND CONTROL

SEC. 804. The Director of the Department of Finance shall—

(1) prescribe the forms of receipts, vouchers, bills, and claims to be used by all the agencies of the District government;

(2) examine and approve all contracts, orders, and other documents by which the District government incurs financial obligations, having previously ascertained that moneys have been appropriated and allotted and will be available when the obligations shall become due and payable;

(3) audit and approve before payment all bills, invoices, payrolls, and other evidences of claims, demands, or charges against the District government and with the advice of the Director of the Department of Law determine the regularity, legality, and correctness of such claims, demands, or charges; and

(4) inspect and audit any accounts or records of financial transactions which may be maintained in any agency of the District government apart from or subsidiary to the accounts kept in his office.

WHEN CONTRACTS AND EXPENDITURES PROHIBITED

SEC. 805. No officer or agency of the District shall, during any budget year, expend or contract to expend any money or incur any liability, or enter into any contract which by its terms involves the expenditure of money, for any purpose, in excess of the amounts appropriated for any item of expenditure. Any contract, verbal or written, made in violation of this Act shall be null and void. Any officer or employee of the District who shall violate this section, upon conviction thereof, shall be summarily removed from office. Nothing in this section, however, shall prevent the making of contracts or of expenditures for capital improvements to be financed in whole or in part by the issuance of bonds, nor the making of contracts of lease or for services for a period exceeding the budget year in which such contract is made, when such contract is permitted by law.

LAPSE OF APPROPRIATIONS

SEC. 806. Except as may be provided in the budget, all appropriations shall lapse at the end of the budget year to the extent that they shall not have been disbursed or lawfully encumbered. Six months after the close of a fiscal year encumbered balances may be pooled and held until all encumbrances have been liquidated, but for a total period not to exceed two years immediately following the close of such fiscal year.

GENERAL FUND

SEC. 807. The general fund of the District shall be composed of the revenues of the District other than the revenues applied by law to special funds. All fees received by any agency, officer, or employee of the District shall belong to the District government and shall be paid promptly to the Department of Finance for deposit in the appropriate fund.

CONTRACTS EXTENDING BEYOND ONE YEAR

SEC. 808. No contract involving expenditure out of the appropriations of more than one year shall be made for a period of more than five years; nor shall any such contract be valid unless made or approved by ordinance.

PART 2-ANNUAL POST AUDIT BY GENERAL ACCOUNTING OFFICE

INDEPENDENT ANNUAL POST-AUDIT

SEC. 821. (a) The General Accounting Office shall audit the financial transactions of the District for the fiscal year ending June 30, 1953, and for each fiscal year thereafter, under such rules and regulations as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where the accounts are normally kept. The representatives of the General Accounting Office shall have access to all books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the District and necessary to facilitate the audit, and they shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians.

(b) (1) A report of each such audit for each fiscal year shall be made by the Comptroller General to the Congress and to the District Council not later than January 15 following the close of the fiscal year for which such audit is made. The report so made to the Congress shall be promptly published in the Congressional Record. The report shall set forth the scope of the audit and shall include such comments and information as may be deemed necessary to keep the Congress and the District Council informed of the operations and financial condition of the District, together with such recommendations with respect thereto as the Comptroller General may deem advisable. The report shall also show specifically every program, expenditure, or other financial transaction or undertaking, which, in the opinion of the Comptroller General, has been carried on or made without authority of law.

(2) After the District Manager and the Director of the Department of Finance have had an opportunity to be heard, the District Council shall by resolution provide for the publication of such report together with such other material as it deems pertinent thereto.

(3) The District Manager, within ninety days after the report has been made to the Congress and the District Council, shall state in writing to the Congress and the District Council what has been done to comply with the recommendations made by the Comptroller General in the report. Such statement in writing made to the Congress shall be promptly published in the Congressional Record.

COST OF AUDIT

SEC. 822. The cost (as determined by the Comptroller General of the United States) of making the audit provided for by section 821 shall be borne by the District in the manner prescribed by section 831.

AMENDMENT OF BUDGET AND ACCOUNTING ACT

SEC. 823. Section 2 of the Budget and Accounting Act, 1921 (U. S. C., 1946 edition, title 31, sec. 2), is hereby amended by striking out "and the municipal government of the District of Columbia."

PART 3-ADJUSTMENT OF FEDERAL AND DISTRICT EXPENSES

ADJUSTMENT OF FEDERAL AND DISTRICT EXPENSES

SEC. 831. (a) After June 30 and on or before December 31 of each year, beginning with the calendar year 1952, the Director of the Bureau of the Budget shall certify to the District Manager the amount determined by the Director as the payment to be made pursuant to this section by the United States to the District, or by the District to the United States, as the case may be, for the next fiscal year. The amount of such payment (and by and to whom it shall be made) shall be determined as follows:

(1) There shall first be ascertained the sum of the following:

(A) The estimated cost, during the fiscal year for which the payment is to be made, of

(i) auditing the financial transactions of the District by the General Accounting Office as provided in section 821,

(ii) services to be furnished by the Civil Service Commission to which sections 1307 and 1322 apply,

(iii) the care and custody of District inmates in Federal institutions the cost of which under sections 912 (b) (3) and 1403 is to be borne by the District; and

(iv) maintaining and improving the grounds, buildings, and other facilities used by the District under agreements with the National Park Service to the extent provided in section 904 (b); plus

(B) the estimated liability of the District under section 1321 to the United States (for the fiscal year for which the payment is to be made) with respect to retirement of officers and employees of the District; plus (C) the following percentages of the estimated expenditures, during the fiscal year for which the payment is to be made for purposes of the following courts and offices:

(i) 60 per centum in the case of the District Court of the United States for the District of Columbia,

(ii) 30 per centum in the case of the United States Court of Appeals for the District of Columbia, and

(iii) 60 per centum in the case of the office of the United States District Attorney for the District of Columbia and of the office of the United States Marshal for the District of Columbia.

(2) There shall then be ascertained the sum of the following:

(A) the estimated cost, during the fiscal year for which the payment is to be made, of the care and custody of Federal prisoners in District of Columbia Institutions the cost of which under section 912 (b) (3) is to be borne by the United States; plus

(B) the following percentage of the estimated collections of the fees and fines to be collected, during the fiscal year for which the payment is to be made, by the following courts and offices:

(i) 60 per centum in the case of the District Court of the United States for the District of Columbia,

(ii) 30 per centum in the case of the United States Court of Appeals for the District of Columbia, and

(iii) 60 per centum in the case of the Office of the United States District Attorney for the District of Columbia and of the Office of the United States Marshal for the District of Columbia.

(3) The sums estimated under paragraphs (1) and (2) shall be reduced or increased, as the case may be, by any amount by which the Director of the Bureau of the Budget finds that the estimates under such paragraphs for preceding fiscal years were too large or too small, except to the extent that such correction has already been made in connection with payments under this section for another fiscal year.

(4) After the adjustments required by paragraph (3) have been made the smaller of the two sums shall be subtracted from the larger sum. If the adjusted sum ascertained under paragraph (2) is the larger, then the difference shall be paid by the United States to the District. If the adjusted sum ascertained under paragraph (1) is the larger, then the difference shall be paid by the District to the United States.

(b) There is hereby authorized to be appropriated for the fiscal year ending June 30, 1954, and for each fiscal year thereafter the amount, if any, certified under subsection (a) of this section as payable by the United States to the District. Any amount appropriated under this authorization shall (on or before July 31 of the fiscal year for which the payment is made) be paid by the Secretary of the Treasury to the Director of the Department of Finance.

(c) The District budget shall include provision for payment by the District to the United States of the amount, if any, certified under subsection (a) of this section as payable by the District to the United States. Such amount shall (on or before July 31 of the fiscal year for which the payment is made) be paid by the Director of the Department of Finance to the Secretary of the Treasury.

CREDITING OF CERTAIN FEES AND FINES

SEC. 832. No portion of the fees and fines collected (after June 30, 1953) by the District Court of the United States for the District of Columbia, the United States Court of Appeals for the District of Columbia, the office of the United States District Attorney for the District of Columbia, or the office of the United States Marshal for the District of Columbia shall be credited to the District.

TITLE IX-THE EXECUTIVE DEPARTMENTS

GENERAL PROVISIONS

SEC. 901. (a) The following executive departments of the District are hereby created: The Department of Health, the Department of Welfare, the Department of Recreation, the Department of Public Safety, the Department of Finance, the Department of Law, the Department of Public Works, the Department of Libraries, the Department of Labor, the Department of Commerce, the Department of Corrections, and the Department of Professional and Occupational Standards.

(b) Each such department shall be headed by a director who shall be appointed by and serve at the pleasure of the District Manager. The directors shall receive salaries at a rate to be fixed by the District Council by ordinance. Each director may delegate any of his functions to any officer, employee, or agency in his department. He may, with the approval of the District Manager, redelegate to any such officer, employee, or agency any function delegated to him by the District Manager.

(e) For the purposes of the provisions of this title which transfer functions, the functions of an agency include (1) the functions of the head of such agency, and (2) the functions, if any, transferred to such agency or head by section 323. (d) Each agency not abolished by this title, all the functions of which are transferred by this title to the director of an executive department, is hereby transferred to such department.

(e) Whenever the director of any executive department deems it appropriate for the administration of his functions, he may, with the approval of the District Manager

(1) reorganize or abolish any agency (other than a board or commismission) transferred by subsection (d);

(2) create new agencies within his department, and reorganize or abolish any agency so created;

(3) abolish the office or position of any officer or employee (other than a member of a board or commission) transferred to his department by section 1501; and

(4) create new offices and positions within his department, and abolish any office or position so created.

(f) Any vacancy occuring in any board or commission transferred by subsection (d) (other than a vacancy occuring in an ex-officio position) shall be filled by appointment by the director of the transferee department with the