Evening star., 1949-01-20
Hoover Proposal
OF GAO Staff Cut
Starts Hot Fight
Warren Begins Drive
To Check 1t Before
Plan Is Made Public
By jones Y. Newton

A sharp battle shaped up to
day over plans of the Hoove
Commission to recommend de
centralization of the Govern
ment's huge accounting func
ton that would result in a larg'
cut in personnel of the Gov
ernment Accounting Office.
Controller General Lindsay c
Warren sharply criticized the recon-
mendations of the group on Gov
ernment reorganization, describing
them as completely unrealistic" an;
prepared by "off campus professor
and advisers ="
1t was the first blast from a publi
official at the commission headed b,
former President Herbert Hoover.
The report referred to by MI
Warren has not been made public
but its contents were revealed IL
The Star yesterday. Whether th'
criticism of Mr.. Warren, who ha
charge of GAO, would bring abou
a change in the document could no
be learned Immediately.
Warren Sees Waste of Funds"
Mr.. Warren declared in state.
ment that unless other commission
reports are more accurate ano
factual," they will represent g
waste of public funds" Mr.. Hoover's
group was set up by Congress te
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 tc
the individual executive depart
ments. However, congressiora al
members of the group assailed
proposal and the report attache, 3
Mr.. Warren represented compro-
mise of views.
Some commission members be-
ieve that it is usurpation OF exec
utive branch authority for account
ing to be under an agency which
is part of the congressional estab-
Ishment.
Mr.. Warren said he was glad tc
know that there will be strong
minority report signed by members
of the Hoover Commission who know
the facts"
Day-to-Day Situate Hit.
The commission document de-
scrihed 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
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
ment and that official would super
wise and lay down procedures fol-
all Federal accounting. Mr.. War
rem would retain a right of review
Warren Sees Encroachment.
"The Hoover Commission" Mr.
Warren said, is not authorized tt
have anything to do with the Cen
eral Accounting Office, which is ir
the legislative branch chat is, ar
agent of Congress instead OF the
President).
"A similar attempt was made ir
1887 to encroach on and weaker
the legislative branch, and this
caused the defeat of the entire re-
organization drive that year.
II believe these recommendation
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 or
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 anc
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 thu
work to be done and services to ot
performed for the sums the Presl'
dent asks of Congress.
Mr.. Warren pointed out that he
Budget Director James E. Webb ane
Secretary of the Treasury Snyder
announced just a week ago join
program moving toward more con-
structive accounting and intergra'
tion of the Governments account
ing system"
He said that program has thu
"solid support Of the President" ant
has evoked enthusiastic response o.
the agencies"
Arlington Teen-Agers
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