Evening star., 1949-01-20
Hoover Proposal
OF GAO Staff Cut
Starts Hot Fight
Warren Begins Drive
To Check Ii Before
PIun Is Made Public
By jones Y. Newton

uoJ oNCl pAoAlS VI VIC 11OOfCI
Commission to recommend de-
centralization of the Govern
ment's huge accounting func-
ton that would result in a large
cut in personnel of the Gov
ernnlent Accounting Office.
Controller General Lindsay c
Warren sharply criticized the recon-.
mendaions of the group on Gov
ernment reorganization, describing
them as completely unrealistic" ano
prepared by of campus professors
and advisers ~
1t was the first blast from a public
official at the commission headed BY
former President Herbert Hoover
The report referred to by Mr.
Warren has not been made public
but its contents were revealed III
The Star yesterday. Whether the
criticism of Mr.. Warren, who has
charge of GAO. would bring about
a change in the document could not
be learned Immediately.
Warren Sees Waste of Funds"
Mr.. Warren declared in a state
ment that unless other commission
reports are more accurate and
factual," they will represent a
waste of public funds" Mr.. Hoover S
group was set up by Congress to
study reorganization of the execu-
tive branch and the controller gen.
eral is also accountable to Congress.
"A sharp fight already has been
going on in the commission over
proposals to change the Federal ac-
counting system. A number of COM
mission members favored doing
away with the GAO and returning
the entire accounting function to
the individual executive depart
ments. However, congressional
members of the group assailed that
proposal and the report attached by
Mr.. Warren represented compro-
mise of views.
Some commission members be-
lieve that it is a usurpation of exec
utive branch authority for account
ing to be under an agency which
is part of the congressional estab-
lishment.
Mr.. Warren said he was glad to
know that there will be strong
minority report signed by members
of the Hoover Commission who know
the facts"
Day-to-Day Situation Hit.
The commission document de-
scribed present accounting methods
as wasteful and bound up in red
tape. 1t stated that the system was
such that the heads of many agen-
cies never know from day to day
how much of their appropriation
has been spent and how much re-
mains, which the members said was
the first essential IN management.
It recommended that good part
of the accounting work be decen-
tralized and handled in the indi-
vidual departments and agencies.
The commission would do away
with the present practice of hauling
literally carloads of expense vouch-
ers from all parts of the country to
Washington for checking by the
GAO. Instead the vouchers would
be proceSsed by spot-checks at con-
venient locations over the country.
Under the commission plan. the
post of accountant general would
be created in the Treasury Depart
mcnt and that official would super
wise and lay down procedures for
all Federal accounting. Mr.. War
rem would retain right of review.
Warren Sees Encroachment.
"The Hoover Commission" Mr
Warren said. is not authorized to
have ANYTHING to do with the Cen
eral Accounting Office, which is in
the legislative branch (that Is, an
agent of Congress instead of the
PRESIDENT.
"A similar attempt was made in
1887 to encroach on and weaken
the legislative branch, and this
caused the defeat Of the entire re-
organization drive that year.
Il believe these recommendations
will again be resented and resisted
by Congress. They can be regarded
as an attempt to keep from the Con-
greSs and the people information on
how the taxpayers money is being
spent"
Commission sources said the
Hoover group felt it has the right
to suggest improvements in the
Governments accounting methods
and procedures.
Sees Changes Long Overdue.
In the report the commission
admitted that it lacked authority
to suggest reorganization of agen-
cies attached to Congress, but de-
clared that the accounting process
was so entwined with efficient oper-
alton of the executive branch that
they were compelled to recommend
changes. Those changes, the re-
port said, are long overdue and
must be made now.
The proposed shift in the system
obviously would reduce the work and
consequently. the number OF en-
ployes in the accounting office.
Other study suggestions call for
change in presidential budget re-
ports designed to emphasize the
work to be done and services to be
performed for the sums the PreSi-
dent asks of Congress.
Mr.. Warren pointed out that he
Budget Director James E. Webb ano
Secretary of the Treasury Snyder
announced just a week ago joint
program moving toward more con-
structive accounting and intergra-
ton of the Governments account.
ing system"
He said that program has the
"solid support of the President anc
has evoked enthusiastic response oi
the agencies"
Arlington Teen-Agers
As II.lfI .n 81