U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

29–010 

" ! SENATE 108TH CONGRESS

2d Session 

REPORT

2004

108–339 

Calendar No. 693 

TO REAUTHORIZE THE CONGRESSIONAL 

AWARD ACT 

R E P O R T 

OF THE

COMMITTEE ON GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

TO ACCOMPANY

S. 2639 

TO REAUTHORIZE THE CONGRESSIONAL AWARD ACT 

SEPTEMBER 14, 2004.—Ordered to be printed 


congress.#13
(II) 

COMMITTEE ON GOVERNMENTAL AFFAIRS 

SUSAN M. COLLINS, Maine, Chairman 

TED STEVENS, Alaska 

GEORGE V. VOINOVICH, Ohio 

NORM COLEMAN, Minnesota 

ARLEN SPECTER, Pennsylvania 

ROBERT F. BENNETT, Utah 

PETER G. FITZGERALD, Illinois 

JOHN E. SUNUNU, New Hampshire 

RICHARD C. SHELBY, Alabama 

JOSEPH I. LIEBERMAN, Connecticut 

CARL LEVIN, Michigan 

DANIEL K. AKAKA, Hawaii 

RICHARD J. DURBIN, Illinois 

THOMAS R. CARPER, Delaware 

MARK DAYTON, Minnesota 

FRANK LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas 

MICHAEL D. BOPP, Staff Director and Chief Counsel 

JOHANNA L. HARDY, Senior Counsel 

JOYCE A. RECHTSCHAFFEN, Minority Staff Director and Counsel 

LAWRENCE B. NOVEY, Minority Counsel 

AMY B. NEWHOUSE, Chief Clerk 

29–010 

Calendar No. 693 

108TH CONGRESS REPORT " ! SENATE 2d Session 108–339 

TO REAUTHORIZE THE CONGRESSIONAL AWARD ACT 

SEPTEMBER 14, 2004.—Ordered to be printed 

Ms. COLLINS, from the Committee on Governmental Affairs, 

submitted the following 

R E P O R T 

[To accompany S. 2639] 

The Committee on Governmental Affairs, to which was referred 

the bill (S. 2639) to reauthorize the Congressional Award Act, having considered the same, reports favorably thereon and recommends that the bill do pass. 

CONTENTS 

Page 

I. Purpose & Summary ..................................................................................... 1 

II. Background .................................................................................................... 1 

III. Legislative History ......................................................................................... 4 

IV. Section-by-Section Analysis .......................................................................... 4 

V. Estimated Cost of Legislation ....................................................................... 5 

VI. Evaluation of Regulatory Impact .................................................................. 5 

VII. Changes in Existing Law .............................................................................. 6 

I. PURPOSE AND SUMMARY

S. 2639 reauthorizes the Congressional Award Program for 5 

years, until October 1, 2009. Designed to promote initiative, 

achievement, and excellence among the youth of America, the Program arranges for medals to be awarded to young people who have 

satisfied specified standards of achievement. Members of Congress 

are included on the Board that administers the program, and they 

participate in the presentation of awards. 

II. BACKGROUND

The Congressional Award Act, Public Law 96–114, was enacted 

on November 16, 1979, as a bipartisan initiative led by Senator 

Malcolm Wallop (R–WY) and Representative James J. Howard (D– 

2 

NJ). Under the Congressional Award Program established by the 

Act, young people between the ages of 14 and 23 earn awards by 

completing a certain number of hours in each of four areas of 

achievement—volunteer public service, personal development, 

physical fitness, and expedition/exploration. The Award is non-competitive, and participants, with the guidance of adult advisors, establish their own goals and work to achieve them. Depending on 

how many hours are completed, participants earn Bronze, Silver, 

and Gold certificates, or Bronze, Silver, and Gold medals. Members 

of the House and Senate recognize their constituents who earn 

Bronze and Silver medals at in-state ceremonies, and Gold-medal 

winners are recognized at an annual ceremony in the Capitol presided over by House and Senate leadership. The Program is very 

popular, with more than 16,000 active participants and more than 

10,000 adult mentors involved across the Nation. 

Under the Act, the Congressional Award Program is administered by a 25-member Board. Twenty-four of the members are appointed by Congressional leadership—6 by each of the majority 

leader of the Senate, the minority leader of the Senate, the Speaker 

of the House of Representatives, and the minority leader of the 

House of Representatives. The Director of the Board, appointed by 

a majority vote of the Board, is the principal executive of the Program and sits as a non-voting member of the Board. By statute, 

four of the Board members must be Members of Congress. At 

present, Senator Max Baucus, Senator Larry E. Craig, Representative Barbara Cabin, and Representative Sheila Jackson-Lee serve 

on the Board. 

The Board operates as a private, nonprofit, tax-exempt organization (under section 501(c)(3) of the Internal Revenue Code), called 

the Congressional Award Foundation. Financial sponsors of the 

Program include business corporations, charitable foundations, and 

labor unions. The Foundation receives its support from these taxexempt contributions and, under current law, receives no federal 

appropriation. The Foundation does, however, receive a small 

amount of in-kind services from the federal government, including 

free office space in a House Office Building, an annual audit by the 

Government Accountability Office (GAO), and the design and striking of award medals by the U.S. Mint. 

The Act has been reauthorized several times since November 16, 

1979, when Public Law 96–114 was enacted, establishing the Board 

for a 6-year period. The Act was first reauthorized, for a further 

3-year period, by Public Law 99–161, the Congressional Award 

Amendments of 1985. Public Law 100–674, the Congressional 

Award Act Amendments of 1988, reauthorized the Act for an additional 2 years, contingent upon the Board’s complying with the established reporting requirements. Public Law 101–525, the Congressional Award Amendments of 1990, extended the Act for approximately an additional 2-year period, until October 1, 1992. 

Public Law 102–457, the Congressional Award Act Amendments of 

1992, extended the Act for a 3-year period, and Public Law 104– 

208 extended the Act for a 4-year period. Most recently, Public Law 

106–63 extended the Act for 5 years, until the current expiration 

date of October 1, 2004. 

The Congressional Award Program is very popular and continues 

to grow rapidly. The number of Program participants has doubled 

3 

1GAO, ‘‘Financial Audit: Congressional Award Foundation’s Fiscal Years 2002 and 2001 Financial Statements,’’ May 2003 (GAO–03–737); Statement of Senator Craig, 149 Cong. Rec. 

S14939 (Nov. 17, 2003) (Senator Craig is a member of the Board of the Congressional Award 

Program). 2GAO, ‘‘Financial Audit: Congressional Award Foundation’s Fiscal Years 2002 and 2001 Financial Statements,’’ May 2003 (GAO–03–737). 3Letter from Steven J. Sebastian, Director, Financial Management and Assurance, GAO, to 

Senator Collins, Senator Lieberman, Congressman Boehner, and Congressman George Miller, 

Subject: Congressional Award Foundation Audit and Reporting Delay, May 13, 2004. 

over a recent 3-year period, from approximately 8,000 in 2001 to 

over 16,000 at the end of the 2003 fiscal year. There are also more 

than 10,000 adult mentors involved in the program. By statute, 

GAO audits the Foundation’s financial statements annually and 

has issued generally favorable reports. The Committee believes 

that the Congressional Award Program performs a valuable service, encouraging initiative, achievement, public service, and personal development in the Nation’s youth, as well as providing an 

opportunity for service for the adult volunteers, and the Committee 

therefore supports and recommends reauthorization of the Program. 

The Committee has received information, however, indicating 

that the financial condition of the Foundation is deteriorating. In 

the past, the Foundation has sustained itself with private donations, but it has faced increasing financial difficulty in recent years. 

The rapid growth of the Program has strained the Foundation’s resources, and its financial situation has been further taxed by the 

downturn in the financial markets and by the general difficulty in 

maintaining charitable giving arising out of the recent recession.1

Thus, cash contributions decreased from over $1 million in fiscal 

year 1999 to about $550,000 in fiscal year 2003. The Foundation 

responded by cutting its operating expenses, from over $1,700,000 

in fiscal year 2002 to $725,000 in fiscal year 2003, but its overall 

financial situation is still in decline. In the most recent financial 

audit report for the Foundation, issued in May 2003, GAO found 

no reportable problem with the Foundation’s financial statements, 

but reported that the Foundation faced a worsening financial condition—raising substantial doubt about its ability to continue as an 

ongoing concern.2 On May 13, 2004, GAO wrote to Chairman Collins and Ranking Minority Member Lieberman, among others, indicating that the Foundation continues to experience financial difficulties, such that it no longer has the resources to prepare financial statements on a timely basis.3

Recognizing the Foundation’s deteriorating financial situation, 

the Senate Appropriations Committee stated in its July 15, 2004 

Report to accompany S. 2666, the Legislative Branch FY2005 Appropriations bill— 

The Committee notes that the Congressional Award program was established by Congress in 1979 to recognize initiative, achievement and service in young Americans and 

encourage volunteer and community service. While the 

program has been funded entirely by the private sector, a 

decrease in donations and income has forced cutbacks in 

the program. The Congressional Award Board is due to be 

reauthorized later this year. The Committee will consider 

funding for this program in the future based on reauthorVerDate Aug 04 2004 06:34 Sep 15, 2004 Jkt 029010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR339.XXX SR339
4 

4Senate Committee on Appropriations, Report to accompany S. 2666, Legislative Branch Appropriations, 2005, S. Rep. 108–307, July 15, 2004, at pages 44–45. 

ization legislation, but anticipates any such funding will 

not supplant private donations.4

Senator Craig has advised the Governmental Affairs Committee 

that, when S. 2639 is considered by the Senate, he intends to offer 

an amendment authorizing an appropriation to the Board of 

$750,000 for each fiscal year through 2009, an amount that would 

cover between one-third and one-half of the Foundation’s anticipated budget. 

III. LEGISLATIVE HISTORY

S. 2639 was introduced by Senators Lieberman and Collins on 

July 13, 2004, and was referred to the Committee on Governmental 

Affairs. On July 21, 2004, the Committee considered S. 2639 and 

ordered the bill reported by voice vote without amendment. Senators present: Senators Collins, Voinovich, Specter, Fitzgerald, 

Lieberman, Akaka, Durbin, Carper, and Lautenberg. 

IV. SECTION-BY-SECTION ANALYSIS

Section 1, the only section of the bill, is entitled ‘‘Reauthorization 

of the Congressional Award Act.’’ 

Subsection (a) amends the Congressional Award Act to extend for 

5 years the Comptroller General’s responsibility to assess the fiscal 

controls and accounting procedures of the Congressional Award 

Program. Under section 104(c)(1) of the Act (2 U.S.C. § 804(c)(1)), 

as amended, the Director of the Board is responsible for ensuring 

that appropriate procedures for fiscal control and fund accounting 

are established for the Program, that operations are administered 

by personnel who are expert in accounting and financial management, and that the Board’s liabilities not exceed its assets for any 

fiscal year. Under section 104(c)(2)(A) of the Act (2 U.S.C. 

§ 804(c)(2)(A)), as amended, the Comptroller General must determine whether the Director has substantially complied with these 

requirements and must include his findings in annual reports to 

Congress. This subsection extends these responsibilities of the 

Comptroller General through calendar year 2009. 

Subsection (b) amends the Congressional Award Act to extend for 

5 years the existence of the Board. Under section 108 of the Act 

(2 U.S.C. § 808), as amended, the Board is now set to expire on October 1, 2004. This subsection extends the existence of the Board 

until October 1, 2009. 

Subsection (c) makes non-substantive technical corrections to the 

Act. 

5 

V. ESTIMATED COST OF LEGISLATION

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, July 28, 2004. 

Hon. SUSAN M. COLLINS, 

Chairman, Committee on Governmental Affairs, 

U.S. Senate, Washington, DC. 

DEAR MADAM CHAIRMAN: The Congressional Budget Office has 

prepared the enclosed cost estimate for S. 2639, a bill to reauthorize the Congressional Award Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

ELIZABETH ROBINSON, 

(For Douglas Holtz-Eakin, Director). 

Enclosure. 

S. 2639—A bill to reauthorize the Congressional Award Act 

S. 2639 would reauthorize the Congressional Award Act for fiscal 

years 2005 through 2009. The Congressional Award Program recognizes excellence in public service and personal development among 

young people. The program is overseen by the Congressional Award 

Board, a nonprofit organization that receives no federal funding. 

CBO estimates that implementing S. 2639 would cost less than 

$500,000 a year, assuming the availability of appropriated funds. 

In addition, by requiring the U.S. Mint to design and strike medals 

at the request of the Congressional Award Board, S. 2639 would increase direct spending by less than $500,000 a year. 

Under S. 2639, the Congressional Award Board would continue 

to receive in-kind services from the federal government. Those 

services consist of free office space in the Ford House Office Building, including maintenance and utilities, and the performance of an 

annual audit by the Government Accountability Office. CBO estimates that the board’s continued use of such services would cost 

less than $500,000 a year in appropriated funds. 

In addition, young people recognized by the Congressional Award 

Program are awarded medals produced by the U.S. Mint. Based on 

information from the board and the Mint, CBO estimates that reauthorizing the program would increase direct spending from the 

U.S. Mint Public Enterprise Fund by less than $500,000 annually. 

S. 2639 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Matthew Pickford. 

This estimate was approved by Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

VI. EVALUATION OF REGULATORY IMPACT

Pursuant to the requirements of paragraph 11(b) of rule XXVI of 

the Standing Rules of the Senate, the Committee has considered 

the regulatory impact of this bill. The enactment of this legislation 

will not have a significant regulatory impact. 

6 

VII. CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new matter is printed in italic and 

existing law, in which no change is proposed, is shown in roman): 

Congressional Award Act, as amended, Pub. L. 96–114, Nov. 

16, 1979 

Sections 103, 104, and 108, as codified at 2 U.S.C. §§ 803, 804, 

and 808 

UNITED STATES CODE 

TITLE 2, THE CONGRESS 

CHAPTER 19—CONGRESSIONAL AWARD PROGRAM 

Subchapter I—Congressional Award Program 

§ 803. Board organization 

* * * * * * * 

(b) TERMS OF APPOINTED MEMBERS; REAPPOINTMENT.— 

(1) Appointed members of the Board shall continue to serve 

at the pleasure of the officer by whom they are appointed, and 

(unless reappointed under paragraph (3)) shall serve for a term 

of 4 years. 

(2) For the purpose of adjusting the terms of Board members 

to allow for staggered appointments, the following distribution 

of Board terms shall take effect at the first meeting of the 

Board occurring after November 6, 1990: 

(A) Those members who have served 10 years or more, 

as of the date of such meeting, shall have an appointment 

expiring on a date 2 years from October 1, 1990. 

(B) Those members who have served for 6 months or 

less, as of the date of such meeting, shall have an appointment expiring on a date 6 years from October 11, 1990. 

(C) All other members shall apportion the remaining 

Board positions between equal numbers of 2 and 4 year 

terms (providing that if there are an unequal number of 

remaining members, there shall be a predominance of 4 

year terms), such apportionment to be made by lot. 

(3)(A) Subject to the limitations in subparagraphs (B) and 

(C) of this paragraph, members of the Board may be reappointed, provided that no member may serve more than 2 

consecutive terms. 

(B) Members of the Board covered under paragraph (2)(A) of 

this øsection¿ subsection shall not be eligible for reappointment 

to the Board. Members of the Board covered under subparagraphs (B) and (C) of paragraph (2) of this øsection¿ subsection 

may be reappointed for 1 additional consecutive 4 year term. 

* * * * * * * 

7 

§ 804. Administration 

* * * * * * * 

(c) REQUIREMENTS REGARDING FINANCIAL OPERATIONS; NONCOMPLIANCE WITH REQUIREMENTS.— 

(1) The Director shall, in consultation with the Board, ensure 

that appropriate procedures for fiscal control and fund accounting are established for the financial operations of the Congressional Award Program, and that such operations are administered by personnel with expertise in accounting and financial 

management. Such personnel may be retained under contract. 

In carrying out this paragraph, the Director shall ensure that 

the liabilities of the Board do not, for any calendar year, exceed the assets of the Board. 

(2)(A) The Comptroller General of the United States shall determine, for calendar years 1993, 1994, 1995, 1996, 1997, 1998, 

1998, 1999, 2000, 2001, 2002, 2003, øand 2004¿ 2004, 2005, 

2006, 2007, 2008, and 2009, whether the Director has substantially complied with paragraph (1). * * * 

* * * * * * * 

§ 808. Termination 

The Board shall terminate øOctober 1, 2004¿ October 1, 2009. 

Æ