An Act to improve governmental budgeting and accounting methods and procedures, and for other purposes
PL 84-863 (S.3897), enacted 08/01/1956

T82 
PUBLIC L
(
A
W 863-AUG. 1, 1966 
[70 ST A T . 
Bonds. 
Repeal. 
service desired or continue the service originally contracted for in 
such manner and in such equipment as he may deem to be in the 
public interest for a term of not to exceed one year. 
SEC. 7. The Postmaster General may require such bond or bonds 
as he deems necessary to protect the interests of the Government. 
Such bond shall be in the form and amount and contain such condi-
tions as he may prescribe. 
SEC. 8. Sections 1 and 2 of the Act of July 11, 1940, entitled "An 
Act to provide for the transportation and distribution of mails on 
motor-vehicle routes" (54 Stat. 756; 39 U. S. C. 505, 506) are hereby 
repealed. 
Approved August 1, 1956. 
August 1
, 1956 
ueust 1. I 
15. 
3897] 
Public Law 863 
CHAPTER 814 
AN ACT 
To improve governmental budgeting and accounting methods and procedures, 
and for other purposes. 
G o v e r n m e n t 
b u d g e t 
and ac -
counting pr o c e d-
ure« 
64 Stat. 832. 
64 Stat. 834. 
C o s t 
budgets. • b a s e d 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, 
AMENDMENTS IX) THE BUDGET AND ACCOUNTING ACT, 19 21 
SEC. 1. (a) Section 201 of the Budget and Accounting Act, 1921, 
as amended (31 U. S. C. 11), is further amended by inserting " ( a ) " 
after the words "SEC. 201.''; by changing subsection (a) to subpara-
graph (1); by adding after subparagraph (1) a new subparagraph 
'•'(2) at such times as may be practicable, information on program 
costs and accomplishments"; by changing subsections (b) through 
(j) to subparagraphs (3) through (11), respectively. 
(b) Section 216 of such Act, as amended (31 U. S. C. 24), is further 
amended by inserting " (a)" after the words "SEC. 216." and by adding 
the following new subsections: 
"(b) The requests of the departments and establishments for appro-
priations shall, in such manner and at such times as may be determined 
by the President, be developed from cost-based budgets, 
"(c) For purposes of administration and operation, such cost-based 
budgets shall be used by all departments and establishments and their 
subordinate units. 
Administrative subdivisions of appropriations or 
funds shall be made on the basis of such cost-based budgets." 
64 Stat. 834. 
31 u s e 847. 
64 Stat. 836. 
AMENDMENTS TO THE BUDGET AND ACCOUNTING PROCEDURES ACT OF 19 50 
SEC. 2. (a) The Budget and Accounting Procedures Act of 1950 is 
amended by inserting after section 105 thereof the following new 
section: 
(( 
ACCOUNTING AND BUDGET CLASSIFICATIONS 
"SEC. 106, The head of each executive agency shall, in consultation 
with the Director of the Bureau of the Budget, take whatever action 
may be necessary to achieve, insofar as is possible, (1) consistency in 
accounting and budget classifications, (2) synchronization between 
accounting and budget classifications and organizational structure, 
and (3) support of the budget justifications by information on 
performance and program costs by organizational units." 
(b) Section 113 of such Act (31 U, S, C, 66a) is amended by adding 
at the end thereof the following new subsection: 
70 STAT.] 
PUBLIC LAW 8e4-AUG. 1, 1956 
783 
"(c) As soon as practicable after the date of enactment of this sub-
section, the head of each executive agency shall, in accordance with 
principles and standards prescribed by the Comptroller General, 
cause the accounts of such agency to be maintained on an accrual 
basis to show the resources, liabilities, and costs of operations of such 
agency with a view to facilitating the preparation of cost-based budgets 
as required by section 216 of the Budget and Accounting Act, 1921, 
as amended. The accounting system required by this subsection shall 
include adequate monetary property accounting records as an integral 
part of the system." 
(c) Section 118 of such Act is amended by inserting "113 (c)" after 
f^ ^^^ ||J; 
the words "section 111". 
SIMPUFICATION OF SYSTEM FOR SUBDIVIDING FUNDS 
SEC. 3. Section 3679 (g). Revised Statutes, as amended (31 U. S. C. 
665 (g)), is further amended by adding at the end thereof the following 
sentence: "In order to have a simplified system for the administrative 
subdivision of appropriations or funds, each agency shall work toward 
the objective of financing each operating unit, at the highest practical 
level, from not more than one administrative subdivision for each 
appropriation or fund affecting such unit." 
Approved August 1, 1956. 
Public Law 864 
CHAPTER 815 
AN ACT 
August 1, 1956 
To increase the borrowing power of Commodity Credit Corporation. 
[S. 3820] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, 
INCREASE IN BORROWING AUTHORITY 
SECTION 1. (a) Section 4 (i) of the Commodity Credit Corporation 
Charter Act, as amended (15 U. S. C. 714b (i)), is amended by striking 
^^ stat. 634. 
out "$12,000,000,000" and inserting in lieu thereof "$14,500,000,000". 
(b) Section 4 of the Act of March 8, 1938, relating to the Com-
modity Credit Corporation, as amended (15 U. S. C. 7l3a-4), is 
amended by striking out "$12,000,000,000" and inserting in lieu thereof 
"$14,500,000,000". 
AMENDMENT TO PENAL PROVISIONS 
SEC. 2. Subsection (c) of section 15 of the Commodity Credit Cor-
poration Charter Act, as amended (15 U. S. C. 7l4m (c)), is amended 
^^ stat. 1074. 
to read as follows: 
"LARCENY; CONVERSION or 
PROPERTY 
"(c) Whoever shall willfully steal, conceal, remove, dispose of, or 
convert to his own use or to that of another any property owned or 
held by, or mortgaged or pledged to, the Corporation, or any property 
mortgaged or pledged as security for any promissory note, or other 
evidence of indebtedness, which the Corporation has guaranteed or is 
obligated to purchase upon tender, shall, upon conviction thereof, if 
such property be of an amount or value in excess of $500, be punished 
by a fine of not more than $10,000 or by imprisonment for not more 
than five years, or both, and, if such property be of an amount or value 
of $500 or less, be punished by a fine of not more than $1,000 or by 
imprisonment for not more than one year, or both." 
Approved August 1, 1956.