Evening star., 1937-03-28
BY WILL p. KENNEDY.

branch OF the Government and snoulo
maintain its pre-audit to prevent un-
lawful and irregular expenditures OF
money it appropriateS to admlnStra-
tive agencies This is the recommeh-
dation of the Brookings Institution re-
earding the Presidents proposal ID
take the functions of the Controller
General, now an agent Of Congress,
away from Congress and deliver them
to the Treasury Department, leaving
Congress only post audit by an
auditor general.
This Is the issue on which Congress
leaders have expressed themselves as
most determined to oppose IN the
Presidents reorganization bill, III
which he asks absolute and unNmlteo
mower to reorganize and abolish any
and all agencies of the Government.
The Brookings Institution was hired
Jointly by the three special commit
tees set up in the last session OF con-
press. The report yesterday is an
other chapter in its survey on Govern
ment agencies. This new chapter was
rushed through, Senator Byrd ex-
planned, so the new joint commlttee
set up to give intensive consideration
to the reorganization program should
have the benefit of the exteqslFe
st,dies The committee will have the
report before it tomorrow.
Urges Qualification Of System.
Numerous defects in the present
svsten, of financial administration, the
Brookings Institution vigorously con-
tends should be corrected by strength
ening and clarifying the existing sys-
tenn rather than by changing funda-
mental principles or curtailing con-
gressional authority to prevent unla"-
full or irregular expenditures. The re-
mort describes financial administra-
tion as an administrative overhead
which should be conducted with the
maximum of prompt and ehclent
service to operating agencies which Is
consistent with economical operation
and efficient control. 1t CONTENDS
there should be:
! The essential implements OF CEN
tralized budgetary and administrative
management.
2 An independent review OF nnan-
cial acts of administrative omcers as
basis for final audit and settlement o1
their accounts.
By the budget and accounting ac1
of 1921, the report points ou''
budgetary and administrative man
aeement was placed under a centraI
agency directly responsible to the
President, while the function OF
nnal audit and settlement with power
to disallow improper obligations De-
fore expenditure is made, were as
sipned to an agency fully and dlrectly
responsible to Congress
It makes clear the distinction be-
tween administrative management
and legislative control Senator byro
emphasizes, by showing that ao-
ministrative management requires only
systematic reporting OF admlnlstra-
tive accounting information "nne
the legislative control requires oe-
tailed audit prior to final settlement
of accounts by an agency responsible
to Congress and independent OF the
agencies to be audited.
Would Strengthen AScHCy.
This recommendation Senator Byro
pointed out, would strengthen the
Budget Bureau as STAN agency
directly responsible to the President
for estimating needs Of administra-
tive agencies"
It would also, he says, strengthen
the ONCE Of the controller general
AZ an agency responsible to Con-
Rress for determining whether obllga-
tions incurred by administrative
agencies are regular and legal under
acts Of Congress and whether subse-
ouent accounting is true and accu-
rate"
These recommendations would
eliminate, at very substantial saw
ing, the emergency accounting and
disbursing system in the Treasury
Department, employing some 26,O0o
persons. Change in title OF the
controller general to auditor general
and the General Accounting ONCE to
"Ofice of Audit and Settlement"
also Is suggested to eliminate con-
fusion through use of the terms ac-
counting and controlling.
That the Treasury Department be
relieved Of "all functions properly
belonging to either auditing or
budgetary Offices" is another major
recommendation. Cooperative work.
ing arrangement between the Budget
Bureau and the auditing agency with
particular reference to the character
Of administrative accounting records
is urged, with an interagency COM
nittee suggested.
Treasury Accounting Favored.
It is recommended that the
treasurer of the United States be
required to render a proper account
ing Of all special deposits as a
remedy for the present lack OF
proper control over that officer.
Senator Byrd explained that the re-
port also carries numerous recon-
mendations for Qualification, simplifi-
cation, economy and efficiency in the
Treasury Department and the present
General Accounting Office.
Removal Of the Budget Bureau from
it, present anomalous structural posi-
ton in the Treasury Department to
an independent status under the
President, giving the President more
direct control over budgetary mat
ters, Is another recommendation.
Other proposals to strengthen the
Budget Bureau are: (a) expansion
Of functions OF the existing division Of
research and investigations; (b) crea-
tion Of a division Of coordination; (c)
replacement Of the existing division OF
estimates with q division Of budgetary
accounting.
Suggestions for improvement Of the
Federal revenue collecting system are
also made in the report, and there Is
a. oflaar ehanuaS