June 10, 1921. (S. 1084.] (Public, No. 13.]

Budget and Accounting Act, 1921.

Title of Act.

Meaning of terms.

"Department

establishment."

and

have been rendered homeless or are in needy circumstances as the result of the recent flood due to the overflow of the Arkansas River and its tributaries, and in executing this joint resolution, the Secretary of War is directed so far as possible to cooperate with the authorities of the State of Colorado, and the mayors of such cities on the Arkansas River or its tributaries as may have sustained damages.

Approved, June 8, 1921.

CHAP. 18.-An Act To provide a national budget system and an independent audit of Government accounts, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I.-DEFINITIONS.

SECTION 1. This Act may be cited as the "Budget and Accounting Act, 1921."

SEC. 2. When used in this Act

The terms "department and establishment" and "department or establishment" mean any executive department, independent comCongress and Su- mission, board, bureau, office, agency, or other establishment of the preme Court, not in- Government, including the municipal government of the District of Columbia, but do not include the Legislative Branch of the Government or the Supreme Court of the United States;

cluded.

"The Budget."

"Bureau."

"Director."

"Assistant

tor."

The Budget.

The term "the Budget" means the Budget required by section 201 to be transmitted to Congress;

The term "Bureau" means the Bureau of the Budget;

The term "Director" means the Director of the Bureau of the

Direc- Budget; and

President to send, annually to Congress.

Contents.

Estimates of expen

tions for ensuing year.

The term "Assistant Director" means the Assistant Director of the Bureau of the Budget.

TITLE II.-THE BUDGET.

SEC. 201. The President shall transmit to Congress on the first day of each regular session, the Budget, which shall set forth in summary and in detail:

(a) Estimates of the expenditures and appropriations necessary ditures and appropria- in his judgment for the support of the Government for the ensuing For Congress and fiscal year; except that the estimates for such year for the LegisSupreme Court with- lative Branch of the Government and the Supreme Court of the United States shall be transmitted to the President on or before October 15th of each year, and shall be included by him in the Budget without revision;

out revision.

Estimates of receipts for ensuing year.

Expenditures and receipts of the last year.

Estimates of expenditures and receipts of current year.

Amount available

November first of cur

(b) His estimates of the receipts of the Government during the ensuing fiscal year, under (1) laws existing at the time the Budget is transmitted and also (2) under the revenue proposals, if any, contained in the Budget;

(c) The expenditures and receipts of the Government during the last completed fiscal year;

(d) Estimates of the expenditures and receipts of the Government during the fiscal year in progress;

(e) The amount of annual, permanent, or other appropriations, rent year for expendi- including balances of appropriations for prior fiscal years, available for expenditure during the fiscal year in progress, as of November 1 of such year;

tures.

Condition of Treasury at end of last year,

(f) Balanced statements of (1) the condition of the Treasury at and estimates for cur the end of the last completed fiscal year, (2) the estimated condition rent and ensuing years. of the Treasury at the end of the fiscal year in progress, and (3)

the estimated condition of the Treasury at the end of the ensuing fiscal year if the financial proposals contained in the Budget are adopted;

Government indebt

(g) All essential facts regarding the bonded and other indebted-edness. ness of the Government; and

Other data of finan

Recommendations

less than proposed ex

(h) Such other financial statements and data as in his opinion are cial condition. necessary or desirable in order to make known in all practicable detail the financial condition of the Government. SEC. 202. (a) If the estimated receipts for the ensuing fiscal year to meet deficiency if contained in the Budget, on the basis of laws existing at the time estimated resources the Budget is transmitted, plus the estimated amounts in the Treas- penditures. ury at the close of the fiscal year in progress, available for expenditure in the ensuing fiscal year, are less than the estimated expenditures for the ensuing fiscal year contained in the Budget, the President in the Budget shall make recommendations to Congress for new taxes, loans, or other appropriate action to meet the estimated deficiency.

Recommendations if

sources.

(b) If the aggregate of such estimated receipts and such estimated proposed expenditures amounts in the Treasury is greater than such estimated expenditures less than estimated refor the ensuing fiscal year, he shall make such recommendations as in his opinion the public interests require.

Supplemental or de

sary expenses.

SEC. 203. (a) The President from time to time may transmit to ficiency estimates auCongress supplemental or deficiency estimates for such appropria- thorized to meet necestions or expenditures as in his judgment (1) are necessary on account of laws enacted after the transmission of the Budget, or (2) are otherwise in the public interest. He shall accompany such estimates company. with a statement of the reasons therefor, including the reasons for their omission from the Budget.

Reasons for, to ac

Recommendations if

(b) Whenever such supplemental or deficiency estimates reach an exceeding estimated reaggregate which, if they had been contained in the Budget, would sources. have required the President to make a recommendation under subdivision (a) of section 202, he shall thereupon make such recommendation.

Former arrange

SEC. 204. (a) Except as otherwise provided in this Act, the ments of estimates, contents, order, and arrangement of the estimates of appropriations etc., continued. and the statements of expenditures and estimated expenditures contained in the Budget or transmitted under section 203, and the notes and other data submitted therewith, shall conform to the requirements of existing law.

Statements to ao

estimates.

(b) Estimates for lump-sum appropriations contained in the company lump sum Budget or transmitted under section 203 shall be accompanied by statements showing, in such detail and form as may be necessary to inform Congress, the manner of expenditure of such appropriations and of the corresponding appropriations for the fiscal year in progress In lieu of present reand the last completed fiscal year. Such statements shall be in lieu quirements." of statements of like character now required by law.

Alternative budget be submitted.

SEC. 205. The President, in addition to the Budget, shall transmit for fiscal year 1923, to to Congress on the first Monday in December, 1921, for the service of the fiscal year ending June 30, 1923, only, an alternative budget, Form, recommendawhich shall be prepared in such form and amounts and according to tions, etc. such system of classification and itemization as is, in his opinion, most appropriate, with such explanatory notes and tables as may be necessary to show where the various items embraced in the Budget are contained in such alternative budget.

Restriction on sub

SEC. 206. No estimate or request for an appropriation and no mission of estimates, request for an increase in an item of any such estimate or request, etc., by other officers or and no recommendation as to how the revenue needs of the Govern- employees. ment should be met, shall be submitted to Congress or any committee thereof by any officer or employee of any department or establishment, unless at the request of either House of Congress.

Budget Bureau created in Treasury Department.

ant Director for.

Duties of Assistant Director.

SEC. 207. There is hereby created in the Treasury Department a Bureau to be known as the Bureau of the Budget. There shall be in Director and Assist the Bureau a Director and an Assistant Director, who shall be appointed by the President and receive salaries of $10,000 and $7,500 a year, respectively. The Assistant Director shall perform such duties as the Director may designate, and during the absence or incapacity of the Director or during a vacancy in the office of Director he shall act Functions of Bureau. as Director. The Bureau, under such rules and regulations as the President may prescribe, shall prepare for him the Budget, the alternative Budget, and any supplemental or deficiency estimates, and to this end shall have authority to assemble, correlate, revise, reduce, or increase the estimates of the several departments or establishments.

Authority of Director over personnel, expenses, etc.

Pay restriction.

Application of civil service laws, etc.

Transfer of Federal employees permitted until June 30, 1922.

Vol. 34, p. 449.

Bureau employees allowed additional pay of $240 a year.

Vol. 41, pp. 689, 1308.

Detailed study by Bureau for securing

efficiency in public service.

SEC. 208. (a) The Director, under such rules and regulations as the President may prescribe, shall appoint and fix the compensation of attorneys and other employees and make expenditures for rent in the District of Columbia, printing, binding, telegrams, telephone service, law books, books of reference, periodicals, stationery, furniture, office equipment, other supplies, and necessary expenses of the office, within the appropriations made therefor.

(b) No person appointed by the Director shall be paid a salary at a rate in excess of $6,000 a year, and not more than four persons so appointed shall be paid a salary at a rate in excess of $5,000 a year. (c) All employees in the Bureau whose compensation is at a rate of $5,000 a year or less shall be appointed in accordance with the civil-service laws and regulations.

(d) The provisions of law prohibiting the transfer of employees of executive departments and independent establishments until after service of three years shall not apply during the fiscal years ending June 30, 1921, and June 30, 1922, to the transfer of employees to the Bureau.

(e) The Bureau shall not be construed to be a bureau or office created since January 1, 1916, so as to deprive employees therein of the additional compensation allowed civilian employees under the provisions of section 6 of the Legislative, Executive, and Judicial Appropriation Act for the fiscal years ending June 30, 1921, and June 30, 1922, if otherwise entitled thereto.

SEC. 209. The Bureau, when directed by the President, shall greater economy and make a detailed study of the departments and establishments for the purpose of enabling the President to determine what changes (with a view of securing greater economy and efficiency in the conduct of the public service) should be made in (1) the existing organization, activities, and methods of business of such departments or establishments, (2) the appropriations therefor, (3) the assignment of particular activities to particular services, or (4) the regrouping Report to President of services. The results of such study shall be embodied in a reTransmittal to Con- port or reports to the President, who may transmit to Congress such report or reports or any part thereof with his recommendations on the matters covered thereby.

of results.

gress.

be codified.

Laws relating to pre- SEC. 210. The Bureau shall prepare for the President a codificaparing receipts and expenditures and esti- tion of all laws or parts of laws relating to the preparation and mates for Congress to transmission to Congress of statements of receipts and expendiTransmittal by Pres- tures of the Government and of estimates of appropriations. The dations for changes, President shall transmit the same to Congress on or before the first Monday in December, 1921, with a recommendation as to the changes which, in his opinion, should be made in such laws or parts of laws.

ident with recommen

etc.

Estimates to becompiled.

SEC. 211. The powers and duties relating to the compiling of R. S., sec. 3669, p. estimates now conferred and imposed upon the Division of Bookkeeping and Warrants of the office of the Secretary of the Treasury are transferred to the Bureau.

722.

gress when requested.

SEC. 212. The Bureau shall, at the request of any committee of Information to Con either House of Congress having jurisdiction over revenue or appropriations, furnish the committee such aid and information as it may request.

Departments, etc.,

Access to records,

SEC. 213. Under such regulations as the President may pre- to furnish information scribe, (1) every department and establishment shall furnish to the to Bureau. Bureau such information as the Bureau may from time to time require, and (2) the Director and the Assistant Director, or any etc., for examination. employee of the Bureau when duly authorized, shall, for the purpose of securing such information, have access to, and the right to examine, any books, documents, papers, or records of any such department or establishment.

Budget officers of

thereof.

SEC. 214. (a) The head of each department and establishment departments, etc., to shall designate an official thereof as budget officer therefor, who, prepare estimates in each year under his direction and on or before a date fixed by him, shall prepare the departmental estimates.

estimates.

(b) Such budget officer shall also prepare, under the direction of Supplemental, etc., the head of the department or establishment, such supplemental and deficiency estimates as may be required for its work. SEC. 215. The head of each department and establishment shall revise the departmental estimates and submit them to the Bureau on or before September 15 of each year. In case of his failure so to do, the President shall cause to be prepared such estimates and data as are necessary to enable him to include in the Budget estimates and statements in respect to the work of such department or establish

ment.

Revision and subdepartments, etc. failure.

mission by heads of Preparation in case

of

Form, etc., of estimates to be pre

SEC. 216. The departmental estimates and any supplemental or deficiency estimates submitted to the Bureau by the head of any scribed. department or establishment shall be prepared and submitted in such form, manner, and detail as the President may prescribe.

for

Appropriation establishing, etc., Bu

SEC. 217. For expenses of the establishment and maintenance of the Bureau there is appropriated, out of any money in the Treasury reau. not otherwise appropriated, the sum of $225,000, to continue available during the fiscal year ending June 30, 1922.

TITLE III. GENERAL ACCOUNTING OFFICE.

General Accounting. Office.

Created as an independent establish

Offices of Comptrol

equipment, etc., as

SEC. 301. There is created an establishment of the Government to be known as the General Accounting Office, which shall be independ- ment, under Compent of the executive departments and under the control and direction troller General. of the Comptroller General of the United States. The offices of ler of the Treasury and Comptroller of the Treasury and Assistant Comptroller of the Treas- Assistant, abolished. ury are abolished, to take effect July 1, 1921. All other officers and Personnel, records, employees of the office of the Comptroller of the Treasury shall be- signed to General Accome officers and employees in the General Accounting Office at their counting Office. grades and salaries on July 1, 1921, and all books, records, documents, papers, furniture, office equipment and other property of the office of the Comptroller of the Treasury shall become the property of the General Accounting Office. The Comptroller General is authorized to adopt a seal for the General Accounting Office. SEC. 302. There shall be in the General Accounting Office a Comp- Comptroller General troller General of the United States and an Assistant Comptroller General of the United States, who shall be appointed by the President with the advice and consent of the Senate, and shall receive salaries of $10,000 and $7,500 a year, respectively. The Assistant Comptroller General shall perform such duties as may be assigned to him by the Comptroller General, and during the absence or incapacity of the Comptroller General, or during a vacancy in that office, shall act as Comptroller General.

Seal of Office.

and Assistant to be

appointed.

Salaries.

Duties of Assistant.

SEC. 303. Except as hereinafter provided in this section, the Comp- Tenure of office, etc. troller General and the Assistant Comptroller General shall hold

Method causes for specified.

and

sole

office for fifteen years. The Comptroller General shall not be eligible removal for reappointment. The Comptroller General or the Assistant Comptroller General may be removed at any time by joint resolution of Congress after notice and hearing, when, in the judgment of Congress, the Comptroller General or Assistant Comptroller General has become permanently incapacitated or has been inefficient, or guilty of neglect of duty, or of malfeasance in office, or of any felony or conduct involving moral turpitude, and for no other cause and in no other manner except by impeachment. Any Comptroller General or Assistant Comptroller General removed in the manner herein provided shall be ineligible for reappointment to that office. When a Comptroller General or Assistant Comptroller General attains the age of seventy years, he shall be retired from his office.

Reappointment for

bidden.

Age retirement.

Duties of Comptroller of the Treasury, the Auditors, and of per

Division, vested inde

ing Office.

SEC. 304. All powers and duties now conferred or imposed by law sonal ledger accounts upon the Comptroller of the Treasury or the six auditors of the Treasby Bookkeeping, etc., ury Department, and the duties of the Division of Bookkeeping and pendently in Account- Warrants of the Office of the Secretary of the Treasury relating to keeping the personal ledger accounts of disbursing and collecting officers, shall, so far as not inconsistent with this Act, be vested in and imposed upon the General Accounting Office and be exercised without direction from any other officer. The balances certified by Revision of auditors' the Comptroller General shall be final and conclusive upon the execusettlements after July tive branch of the Government. The revision by the Comptroller General of settlements made by the six auditors shall be discontinued, except as to settlements made before July 1, 1921.

Finality of certified balances.

1, 1921, discontinued."

Postal service.

Post Office Depart

tion of accounts.

be appointed.

Duties to be performed.

Salary of Auditor transferred.

Vol. 41, p. 1269.

Bureau of Accounts, The administrative examination of the accounts and vouchers of ment, created for ad- the Postal Service now imposed by law upon the Auditor for the Post ministrative examina- Office Department shall be performed on and after July 1, 1921, by Comptroller for, to a bureau in the Post Office Department to be known as the Bureau of Accounts, which is hereby established for that purpose. The Bureau of Accounts shall be under the direction of a Comptroller, who shall be appointed by the President with the advice and consent of the Senate, and shall receive a salary of $5,000 a year. The Comptroller shall perform the administrative duties now performed by the Auditor for the Post Office Department and such other duties in relation thereto as the Postmaster General may direct. The appropriation of $5,000 for the salary of the Auditor for the Post Office Department for the fiscal year 1922 is transferred and made available for Transfer of person- the salary of the Comptroller, Bureau of Accounts, Post Office Department. The officers and employees of the Office of the Auditor for the Post Office Department engaged in the administrative examination of accounts shall become officers and employees of the Bureau of Accounts at their grades and salaries on July 1, 1921. The approVol. 41, PP. 1269, and tabulating equipment for such office for the fiscal year 1922, Vol. 41, pp. 1269, priations for salaries and for contingent and miscellaneous expenses and all books, records, documents, papers, furniture, office equipment, and other property shall be apportioned between, transferred to, and made available for the Bureau of Accounts and the General Accounting Office, respectively, on the basis of duties transferred.

nel.

Appropriations

transferred.

1273.

SEC. 305. Section 236 of the Revised Statutes is amended to read as follows:

"SEC. 236. All claims and demands whatever by the Government Accounting of the United States or against it, and all accounts whatever in which the Government of the United States is concerned, either as debtor or creditor, shall be settled and adjusted in the General Accounting Office."

General administrative laws applicable.

SEC. 306. All laws relating generally to the administration of the Effect of copies of departments and establishments shall, so far as applicable, govern records, etc., as evi- the General Accounting Office. Copies of any books, records, papers, or documents, and transcripts from the books and proceedings of the

dence.