I. THE BUDGET AND ACCOUNTING ACT, AMENDMENTS,

AND RELATED SUBJECTS

A. The Budget and Accounting Act of 1921

(42 Stat. 20)

This act was the result of the enactment of S. 1084, 67th Congress. It was approved on June 10, 1921, as Public Law 13, 67th Congress. The text of this public law appears in volume 42, Statutes at Large, pages 20-27. The provisions of this act are codified as 31 United States Code, section 1 et seq.

A. LEGISLATIVE HISTORY OF PUBLIC LAW 13, 67TH CONGRESS

1. CONGRESSIONAL RECORD REFERENCES TO DEBATES, ETC.

(Page references are to vol. 61, Congressional Record)

S. 1084: To provide a national budget system and an independent audit of Government accounts, and for other purposes. Mr. McCormick; Committee on Expenditures in the Executive Departments, 595. Reported back, 595. No written report. Debated, 657. Amended and passed Senate, 662. Made special order (see H. Res. 74), 974. Debated, 980-999, 1074, 8217. Amended and passed House, 1093. House insists upon its amendments to the Senate bill and asks for conference, 1093. Conferees appointed, 1093, 1122. Senate disagrees to House amendment, agrees to conference, 1122. Conference report submitted in Senate (S. Doc. 15), 1723, 1783. And agreed to, 1783. Conference report submitted in House (S. Doc. 15), 1768, 1851. Debated and agreed to, 1851-1859. Examined and signed, 1932, 1940. Approved by the President (Public Law 13), 2500.

2. SERIAL NUMBERS TO BOUND VOLUMES OF CONGRESSIONAL REPORTS RELATING TO PUBLIC LAW 13, 67TH CONGRESS

June 10, 1921. 18. 1684.1 [Public, No. 13.)

Budget and Ac

Founting Act, 1921.

Title of Act.

Meaning of terms.

"Department and establishment."

Congress and

Bu

B. TEXT OF PUBLIC LAW 13, 67TH CONGRESS

(THE BUDGET AND ACCOUNTING Act of 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."

SEO. 2. When used in this Act

The terms "department and establishment" and "department or establishment" mean any executive department, independent commission, 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;

"The Budget."

President to send,

annually to Congress.

Contents.

tions for ensuing year.

Bupreme Court without revision.

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 Budget; and

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

TITLE II.-THE BUDGET.

SEO. 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:

Estimates of expen- (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 Legislative 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;

Estimates of receipts for ensuing year.

Expenditures and receipts of the last year.

Estimates of expenditures and receipts of current year. Amount available

(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;

November Arst of cur- (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 Trens

ury at end of last year, (f) Balanced statements of (1) the condition of the Treasury at and animator 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 Batimated 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- ednoss 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 !! 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

Bources.

(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 aciency 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

sources.

(b) Whenever such supplemental or deficiency estimates reach an exceeding estimated reaggregate which, if they had been contained in the Budget, would 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 so

estimates.

(b) Estimates for fump-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 scal year. Such statements shall be in lieu quirements. of statements of like character now required by law.

Alternative budget

be submitted.

Form, recommenda

SEO. 205. The President, in addition to the Budget, shall transmit for fiscal year 1924, 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, which 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

SEO. 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 amoers of 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 AMAH

ated in Pressur partment.

ant Director for.

Duties of Assistant Director.

Ana. 907. 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

Authority of Direotor over personnel, expanses, etc.

Pay restriction.

Application of civil Bervice laws, etc.

Transfer of Federal employees permitted until June 30, 1922.

Vol. 34, p. 449.

Bureau

employees allowed additional pay of $240 a year.

establishments.

SEO. 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 Vol. 41, pp. 659, 1309. 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.

Detailed study by Bureau for securing

efficiency in public Bervice.

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 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.

Report to President of results.

Laws relating to pre paring receipts and ex- SEO. 210. The Bureau shall prepare for the President a codificapenditures 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 expendi Transmitally Prestures 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

eto.

Estimates to be com

piled.

SEO. 211. The powers and duties relating to the compiling of R. 8., 60. 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.