We also recognize that at the present time our build-up basis involves a considerable inflow and outflow of personnel, including numbers of Reserve officers. The large number of different items which go into determining the pay and allowances of military personnel place a serious administrative burden in determining all of those facts. For example, the authority contained in this statute is used to allow an officer upon his recall to duty to certify to his service for pay purposes. The amount of service which is creditable for pay purposes is rather complicated itself. It is set out in the Career Compensation Act, in section 202 (a). Under the old procedures, quite often it was necessary to delay the beginning of payment after a man had actually entered on active duty, or to make only a partial payment, a payment of a portion of his pay and allowances, until such later time as a full and complete check of his service for pay purposes could be made. Under the present procedures, the officer makes a certification; and then his pay and allowance account is processed and audited and a check is made at a later date for any discrepancies, for any misstatements of fact or otherwise. In view of our present situation and in view of the fact that this statute results in better business administration within the Armed Forces, we believe that it should be continued in effect as set out in this joint resolution. Mr. PICKETT. Why should it not be permanent legislation, Colonel? Lieutenant Colonel LUNCEFORD. Of course, sir, it is a matter of what level of activity we have in the Armed Forces. If we get on a permanent peacetime basis, then we would be the first to agree that we want to meet fully and completely any details in the administration of our pay and allowances accounts. This will be reviewed during the course of the next legislative program in the Department of Defense, and at that time an appropriate recommendation will be made, sir. Mr. PICKETT. Colonel, if I understand, one of the reasons for the desired extension of the act is to eliminate a great deal of what would be otherwise burdensome administrative work and time-consuming effort on the part of certain officers. Lieutenant Colonel LUNCEFORD. That is right, sir. Mr. PICKETT. That, of course, would not only take time but take some money. You would have to detail certain individuals to that assignment and displace them from other duties they are now performing. Is that correct? Lieutenant Colonel LUNCEFORD. That is right, sir. Mr. PICKETT. The reason for it under present conditions is that we have a tremendous number of men in the Armed Forces, an expanded program, and they have certain other primary functions and duties. that are much more important to be performed. Lieutenant Colonel LUNCEFORD. Right, sir. Mr. PICKETT. The same situation would be true only to a lesser degree as we reduce the numbers in our Armed Forces, would it not? Lieutenant Colonel LUNCEFORD. That is right, sir. Mr. PICKETT. It occurs to me, Colonel, that if it is desirable to have it under any conditions, it is desirable to have it as a permanent proposition. If there are any objections to it on a permanent basis, we would like to know it. Lieutenant Colonel LUNCEFORD. I certainly know of none, sir. I am merely stating that at the present time we do not have pending any legislative proposal to make this permanent law. We do anticipate that an appropriate recommendation-which in my own opinion would probably be for legislation of this nature-will be made to Congress. Mr. PICKETT. It is possible, of course, that there is some area for the exercise of fraudulent conduct in connection with it, is there not? Lieutenant Colonel LUNCEFORD. That possibility exists regardless of who makes this certification. As a matter of fact, our commanding officers establish their own internal checks. The Air Force finance people and disbursing officers in turn have their checks through all echelons. The air inspectors or the Army inspectors general and the appropriate personnel in the Navy also check these items against the factual situation to determine whether or not there has been a false certification; and on top of all of this, of course, the General Accounting Office performs their functions. Mr. PICKETT. Because I asked that question, I do not want to be understood to impute or imply that any of that is done, but I just mean by my question what it said, that there is that area where it could be practiced. To fail to extend the authority conferred in this statute would be to compound your administrative troubles and costs. Is that the effect of it? Lieutenant Colonel LUNCEFORD. That is right, sir. Mr. PICKETT. I might just make this comment, that I propose to suggest to the committee that all provisions of this act that are included in the committee's recommendations be extended for a definite period of time not to exceed 2 years, or the cessation of the emergency, whichever occurs earlier. So within that period of 2 years' time, if this is included, your departments will have an opportunity to decide whether to make a recommendation for permanent legislation if my suggestion to the committee is carried out. Lieutenant Colonel LUNCEFORD. Yes, sir. Mr. BRICKFIELD. You say that after payment is made there is an administrative check-up made at some later date. Lieutenant Colonel LUNCEFORD. That is right. Mr. BRICKFIELD. So would this in effect or in part be transferring the burden of work that was formerly necessary prior to payment, to work that will now be done subsequent to payment? Lieutenant Colonel LUNCEFORD. That is part of the general program of decentralization of pay and allowance matters. As you know, the finance center for the Air Force is now in Denver; for the Navy it is in Cleveland; and for the Army it is in St. Louis. Prior to this a statement of service had to be put in. That would be obtained from one office only. So everything was channeled through one place, and it held up payment, or required a partial payment, until such time as action could be taken. Mr. BRICKFIELD. Aside from holding up payment, would it be transferring the burden of work that was necessary to be done prior to payment and transfer that burden to a time subsequent to the payment of the officer? You say eventually there is a check-up. Lieutenant Colonel LUNCEFORD. That is right. Mr. BRICKFIELD. So the answer is yes. Lieutenant Colonel LUNCEFORD. Yes, that is right. Mr. FEIGHAN. Are there any other questions by members of the committee? (There was no response.) Very well, thank you very much. We will adjourn and reconvene at 10 o'clock Friday morning. (Thereupon, at 12: 20 p. m., the committee recessed until Friday morning, 10 a. m., March 28, 1952.) EMERGENCY POWERS CONTINUATION ACT FRIDAY, MARCH 28, 1952 HOUSE OF REPRESENTATIVES, The subcommittee met, pursuant to adjournment, at 10:20 a. m., in room 346, Old House Office Building, Hon. E. L. Forrester, presiding. Subcommittee members present: Representatives Forrester and Hillings. Also present: Cyril F. Brickfield, committee counsel; and Miss Velma Smedley, assistant chief clerk. Mr. FORRESTER. We will come to order. We are operating this morning without a quorum. I dislike to do that but, in view of the fact that we have spent so much time on these hearings, we are going to proceed. In view of the fact that we do not have a quorum, wonder if you have some miscellaneous matters, Mr. Burrus? I Mr. BURRUS. Yes; I think I do have two or three I can select. Mr. FORRESTER. If you do, would it inconvenience you for us to proceed with those for a while, with the idea that maybe another member of the subcommittee will appear in the meantime where we have a quorum? Mr. BURRUS. I will be glad to do that. I think we can arrange that. Mr. FORRESTER. All right, sir, What is the first item now, and the first witness? Mr. BURRUS. We will have Colonel Lunceford complete his testimony on miscellaneous items. The first item is 1 (a) (21). It is on page 19 of our summary at the bottom of that page. It is the authority for foreign exchange transactions for the benefit of armed forces personnel. It is related to the last item he testified on. The provision is the only statutory basis for such activities, as authority for disbursing offices to cash checks and contains authority to accept and dispose of foreign currencies. It also provides authority for the use of funds to cover any losses that arise from foreign exchange transactions. Colonel Lunceford will give you a fuller statement on that and answer any questions. Mr. FORRESTER. Let the Colonel proceed. 415 |