breach of any warranty, and (2) may withdraw therefrom amounts so to be refunded or paid, without regard to the origin of the funds withdrawn.

(e) Where any contract entered into by an executive agency or any subcontract under such contract authorizes the proceeds of any sale of property in the custody of the contractor or subcontractor to be credited to the price or cost of the work covered by such contract or subcontract, the proceeds of any such sale shall be credited in accordance with the contract or subcontract.

(f) Any executive agency entitled to receive cash under any contract covering the lease, sale or other disposition of surplus property may in its discretion accept, in lieu of cash, any property determined by the Munitions Board to be strategic or critical material at the prevailing market price thereof at the time the cash payment or payments became or become due.

(g) Where credit has been extended in connection with any disposition of surplus property under this title or by War Assets Administration (or its predecessor agencies) under the Surplus Property Act of 1944, or where such disposition has been by lease or permit, the Administrator shall administer and manage such credit, lease, or permit, and any security therefor, and may enforce, adjust, and settle any right of the Government with respect thereto in such manner and upon such terms as he deems in the best interest of the Government.

ANALYSIS

Section 204. Proceeds from transfer or disposition of property (Sec. 204, 63 Stat. 388, as amended by 68 Stat. 1051; 40 U. S. C. 485)

(a) Deposit of proceeds into miscellaneous receipts.-This subsection requires all proceeds from the transfer of excess property to a Federal agency or from the sale, lease, or other disposition of surplus property to be covered into the Treasury as miscellaneous receipts with the exceptions noted in subsections (b), (c), (d), (e) and (f).

(b) Payment of appraisers', auctioneers', and brokers' fees from the proceeds of disposal of Government surplus real property.-This subsection, which was added by Public Law 760 of the 83d Congress, approved August 31, 1954, provides for the deposit in a separate fund in the Treasury of the proceeds of dispositions of surplus real and related personal property made by the Administrator of General Services. Subject to the limitations as to amounts specified in the subsection, the fund is available for payment of the direct expenses incurred in such dispositions for fees of appraisers, auctioneers, and realty brokers (which shall be in accordance with the scale of fees customarily paid for such services in similar commercial transactions), and for advertising and surveying. Excess funds beyond current operating needs are transferred from the fund to miscellaneous receipts.

(c) Crediting of reimbursable funds.-This subsection provides that in cases where the property was acquired by funds either not appropriated from the general fund of the Treasury, or appropriated therefrom and by law reimbursable from assessments, taxes, or other revenues, the net proceeds of the disposition or transfer of such property shall be credited to the reimbursable fund or appropriation or paid to the Federal agency declaring such property excess. It further provides that the proceeds shall be credited to miscellaneous receipts if the agency declaring the property excess shall deem it uneconomical or impracticable to ascertain the amount of net proceeds.

(d) Refunds to purchasers.-This subsection provides that Federal agencies disposing of surplus property may deposit in a special account with the Treasury whatever amounts they deem necessary to permit refunds to purchasers when any disposition is rescinded, or for breaches of warranty, and may withdraw the amounts so to be refunded or paid. Funds received from any specific con

tract are not earmarked in the special deposit account, but are commingled with all other receipts from sales. The language which provides for withdrawal of "amounts so to be refunded or paid, without regard to the origin of the funds withdrawn" permits refunds to be made from any money remaining in the special deposit account whether or not the money collected under the particular contract remains in the special deposit account or has been transferred to general fund revenues as miscellaneous receipts.

(e) Proceeds from contractors' sales.-This subsection recognizes that the contractual provisions authorizing the proceeds of sales of property to be credited to price or cost of the work covered by the contract are controlling and are not subject to the requirements of the Act relating to covering proceeds into the Treasury as miscellaneous receipts.

(f) Acceptance of strategic and critical material in lieu of cash. This subsection permits any executive agency to accept on a projected basis strategic or critical material, as determined by the Munitions Board (the functions of which under this subsection were transferred to the Director of the Office of Defense Mobilization by Reorganization Plan No. 3 of 1953, effective June 12, 1953 (67 Stat. 634)), in lieu of cash, in payment of amounts due the Government for rent, interest, or principal installments under leases or sales of surplus property. The price to be allowed in computing the value of the strategic or critical material shall be the prevailing market price thereof at the time the cash payment or payments become or became due.

(g) Management of credit and security. This subsection makes it clear that the Administrator is authorized to administer and manage any credit, lease, or permit, and security therefor, taken in connection with the disposition of surplus property, and authorizes him to enforce, or suitably adjust, or settle the rights of the Government with respect thereto, as he considers in the best interests of the Government.

POLICIES, REGULATIONS, AND DELEGATIONS

SEC. 205. (a) The President may prescribe such policies and directives, not inconsistent with the provisions of this Act, as he shall deem necessary to effectuate the provisions of this Act, which policies and directives shall govern the Administrator and executive agencies in carrying out their respective functions hereunder.

(b) The Comptroller General after considering the needs and requirements of the executive agencies shall prescribe principles and standards of accounting for property, cooperate with the Administrator and with the executive agencies in the development of property accounting systems, and approve such systems when deemed to be adequate and in conformity with prescribed principles and standards. From time to time the General Accounting Office shall examine such property accounting systems as are established by the executive agencies to determine the extent of compliance with prescribed principles and standards and approved systems, and the Comptroller General shall report to the Congress any failure to comply with such principles and standards or to adequately account for property.

(c) The Administrator shall prescribe such regulations as he deems necessary to effectuate his functions under this Act, and the head of each executive agency shall cause to be issued such orders and directives as such head deems necessary to carry out such regulations.

(d) The Administrator is authorized to delegate and to authorize successive redelegation of any authority transferred to or vested in him by this Act (except for the authority to issue regulations on matters of policy having application to executive agencies, the authority contained in section 106, and except as otherwise provided in this Act) to any official in the General Services Administration or to the head of any other Federal agency.

(e) With respect to any function transferred to or vested in the General Services Administration or the Administrator by this Act, the Administrator may (1) direct the undertaking of its performance by the General Services Administration or by any constituent organization therein which he may designate or establish; or (2) designate and authorize any executive agency to perform such function for itself; or (3) designate and authorize any other executive agency to perform such function; or (4) provide for such performance by any combination of the foregoing methods. Any designation or assignment of functions or delegation of authority to another executive agency under this section shall be made only with the consent of the executive agency concerned or upon direction of the President.

(f) When any executive agency (including the General Services Administration and constituent organizations thereof) is authorized and directed by the Administrator to carry out any function under this Act, the Administrator may, with the approval of the Director of the Bureau of the Budget, provide for the transfer of appropriate

personnel, records, property, and allocated funds of the General Services Administration, or of such other executive agency as has theretofore carried out such function, to the executive agency so authorized and directed.

(g) The Administrator may establish advisory committees to advise with him with respect to any function transferred to or vested in the Administrator by this Act. The members thereof shall serve without compensation but shall be entitled to transportation and not to exceed $25 per diem in lieu of subsistence, as authorized by section 5 of the Act of August 2, 1946 (5 U. S. Č. 73b-2), for persons so serving.

(h) The Administrator shall advise and consult with interested Federal agencies with a view to obtaining their advice and assistance in carrying out the purposes of this Act.

ANALYSIS

Section 205. Policies, regulations, and delegations (Sec. 205, 63 Stat. 389, as amended by sec. 9, 64 Stat. 591; 40 U. S. C. 486)

(a) Presidential policies.-By reason of the impact of this legislation upon all agencies in the executive establishment, this subsection authorizes the President, if he deems it advisable, to prescribe over-all policies and directives which shall govern the Administrator of General Services and executive agencies in operations under the Act. (See the letter of the President dated July 1, 1949, to all executive agencies, set forth in Appendix A.)

(b) Property accounting systems.-This subsection requires the Comptroller General, after considering the needs and requirements of executive agencies, to prescribe principles and standards of accounting for property, to cooperate with the Administrator of General Services and the executive agencies in developing property accounting systems, to approve satisfactory systems, to examine agency systems to determine the extent of compliance with principles, standards, and approved systems, and to report to the Congress cases of failure to comply therewith or adequately to account for property.

This is more flexible and vests more authority in the operating agencies than the recent Independent Offices Appropriations Acts, which prohibit the several agencies there named from installing or maintaining any property accounting system not prescribed or approved by the Comptroller General. The Congressional intent was that there should be the greatest cooperation between the Comptroller General and other agencies in order that operating needs and costs may be fully considered. This section applies to all executive departments and agencies, with the exception, as provided in section 602 (c), of corporations and agencies subject to the Government Corporation Control Act. (See paragraph 2 of the letter of the President to all executive agencies, set forth in Appendix A.)

(c) Regulations of the Administrator.-This subsection requires the Administrator to prescribe regulations for the effectuation of his functions under the Act, and also requires the head of each executive agency to issue such orders and directives as are necessary to carry out such regulations.

(d) Delegations of authority.-Under this subsection the Administrator may redelegate his authority, excepting, however, the authority to issue policy regulations, the authority to make reorganizations within the General Services Administration, and as otherwise provided in the Act (see sec. 307 (b)). Delegations of authority under this subsection and subsection (d) following may be given to other executive departments and agencies after the Administrator has determined that he has received a full disclosure of the facts and circumstances where such delegation is requested, and the department or agency making such request has received basic legal authority from the Congress, where appropriate. (e) Designation of other agencies.-So as to provide the greatest use of existing personnel and facilities within established agencies, this subsection authorizes the Administrator to designate other executive agencies to perform various procurement, utilization, or disposal functions with the proviso that any designa

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tion or assignment of functions or delegation of authority shall be made only with the consent of the agency concerned or upon direction of the President. This proviso would not apply to the authority of the Administrator to prescribe regulations and the duty of agency heads to implement them under subsection (c).

(f) Transfer of personnel and funds.—When any designation is made by the Administrator of an executive agency to carry out any function under the Act, the Administrator may, with the approval of the Director of the Bureau of the Budget, provide for the transfer of appropriate personnel, funds, etc., to the affected executive agency.

(g) Advisory committees.-This subsection authorizes the Administrator to establish advisory committees to advise with him in carrying out his functions. Experience has demonstrated the value of such committees to Government officers where Government programs affect closely business and industry. Specific statutory authorization is necessary because of the prohibitions against unauthorized boards and commissions in title 31, United States Code, section 673. Compare also title 5, United States Code, section 83, and title 31, United States Code, section 551. Because of the better control over the membership and activities of these committees which is possible when they are established pursuant to statute, it was deemed advisable to provide specifically for such committees even apart from these laws.

(h) Consultation with other agencies.-This subsection makes it mandatory for the Administrator to advise and consult with affected Federal agencies in carrying out the Act. In Public Law 152 as originally enacted the last word in this subsection was "title," which was changed to "Act" by section 9 of Public Law 754. Thus the Administrator's duty to advise and consult was expanded from the limited field of title II to the entire Act.