It is designed to demonstrate simplified procedures that may be employed in satisfying the applicable principles and standards relating to accrual accounting and fund control.

GOVERNMENT-WIDE FISCAL PROCEDURES

Government-wide fiscal procedures prescribed by the Comp. troller General under section 309 of the Budget and Accounting Act, 1921, are found in Title 7 of the General Accounting Office Policy and Procedures Manual.

New or revised procedures prescribed during the fiscal year are listed in the appendix to this report. The principal revision during the year related to the new system of accounting and reporting by agencies of disbursements and confirmed deposits by appropriation, fund, and receipt accounts, which became effective at the beginning of the fiscal year 1962. This system eliminated duplication of certain accounting previously performed in the Treasury Department's regional disbursing offices.

AUTOMATIC DATA PROCESSING IN THE FEDERAL GOVERNMENT

During the fiscal year 1962, the General Accounting Office continued to provide a service of advice and assistance to Federal agencies on questions involving the acquisition and use of automatic data processing systems. Also, in carrying out our review and evaluation responsibilities, we assisted agencies by reviewing with agency officials deficiencies disclosed during our audits relating to the planning for and the use of such systems. In a number of instances, we made recommendations which, when fully followed, should materially improve the individual automatic data processing systems involved. In carrying out our assistance work, we discussed automatic data processing systems design matters and related accounting and auditing problems with the Bureau of the Budget, Treasury Department, Department of Defense, Department of Agriculture, General Services Administration, and other departments and agencies of the Federal Government.

In addition to advising and assisting Government agencies, representatives of our Office have continued making studies of

selected aspects of automatic data processing developments in the Federal Government. These studies are being made as a followup to the earlier broad studies that were the subject of comprehensive reports to the Congress in June 1958 and December 1960.

During the year, we submitted our final report to the House Committee on Post Office and Civil Service, Subcommittee on Census and Government Statistics, on a joint study with the Bureau of the Budget regarding the policies followed by Federal agencies in acquiring automatic data processing equipment by lease or purchase. In this report, we expressed the opinion that Federal agencies should give more favorable consideration to purchasing ADP equipment where savings could be demonstrated over a period of several years even though large capital outlays would be involved initially. Bureau of the Budget Circular No. A-54 issued on October 14, 1961, as a result of this joint study established policy for the guidance of executive departments and agencies on this subject.

ASSISTANCE THROUGH THE ADJUDICATION AND SETTLEMENT

OF CLAIMS

The departments and agencies refer claims against the United States to the General Accounting Office for adjudication and settlement when they involve doubt as to the validity of the claims or the entitlement of the parties presenting the claims. This action relieves the departments and agencies of the responsibility of determining the proper disposition of their claims when the facts and circumstances are unique or complicated and when definite applicable rulings and procedures have not been established. We observe and examine the practices and procedures of the departments and agencies by reviews and surveys of the claims received in our Office and suggest improved methods of operation or procedures when appropriate. The departments and agencies also report claims by the United States to our Office when they entail doubtful questions as to the amount due or the liability of the parties. We adjudicate the claims, determine the amount due and the parties liable, and take collection action if required. They also report

claims by the United States to us if they are unable to collect the full amount of the debts. This action permits them to proceed with their normal functions and operations and to be relieved of further collection efforts after their prescribed collection actions have been taken.

ASSISTANCE IN THE TRAFFIC AND TRANSPORTATION FIELD

During the year, we continued to assist in various Government programs and specific problem areas involving traffic and transportation. Our assistance included (1) furnishing information to the Bureau of the Budget on an analysis of domestic and foreign travel relating to the use of first-class air travel as opposed to other classes of service, (2) furnishing information to the Civil Aeronautics Board on our audit experience respecting the billing practices of supplemental air carriers for transportation services, (3) reporting to the De partment of Agriculture on freight transportation costs incurred by some Commodity Credit Corporation commodity offices in the storage of grain at certain warehouses (a copy of our report was furnished the Permanent Subcommittee on Investi gations, Senate Committee on Government Operations), (4) continuing advice to military and civil agencies on management errors disclosed in our audit of transportation payments, and (5) assisting the Defense Traffic Management Service in develop. ing measures to control the large volume of rate tenders submitted by carriers of household goods and to facilitate more effective procedures in the use and application of such tenders. During the year we again provided representatives to address the classes in the U.S. Army Transportation School, Fort Eustis, Va.

ASSISTANCE IN THE LEGAL FIELD

In the exercise of our decision authority, assistance is given to all departments and agencies in the executive branch of the Government, including Government corporations, regulatory agencies and temporary boards, committees and commissions. Many of the decisions have the effect of establishing the legal bounds within which the departments and agencies may properly

operate in carrying out their statutory functions. Notwithstanding that a decision is directed to one agency and concerns a particular factual situation, it nevertheless may have Government-wide precedent application. Some of the decisions resolve controversies involving two or more departments and agencies. Legal advice is given to other agencies in their promulgation of administrative regulations and directives. Members of the legal staff confer with representatives of other agencies on litigation, questions pending for decision, and legal problems arising in the day-to-day operations of the Government.

Decisions of uniform application or general interest are published in monthly pamphlets and an al volumes. Digests of these decisions are distributed, and copies of unpublished decisions are made available on request. Also, in response to telephone inquiries there is provided a research service on published and unpublished decisions.

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