General Accounting Office Act
PL 93-604 (H.R.12113), enacted 01/02/1975

88 STAT. ] 
PUBLIC LAW 93-604-JAN. 2, 1975 
(b) by amending the table contained in paragraph (1) of 
section 1787(b) 
"Column I 
Periods of training 
First 6 months 
Second 6 months._ 
Third 6 months,_. 
Fourth and any-
succeeding 
6-month periods 
to read as 
Column 
II 
No de-
pendents 
$196 
147 
98 
49 
follows: 
Column 
III 
One de-
pendent 
$220 
171 
122 
73 
Column 
IV 
Two de-
pendents 
$240 
191 
142 
93 
Column V 
More than two 
dependents 
The amount in 
column IV, 
plus the fol-
lowing for 
each depend-
ent in excess 
of two: 
$10 
10 
10 
10". 
SEC. 206. The provisions of this title shall become effective on 
January 1, 1975. 
Approved January 2, 1975. 
1959 
Ante, p. 1580. 
Effective date. 
38 u s e 1504 
note. 
Public Law 93-603 
AN ACT 
Designating the lake created by the Hidden Reservoir project, Fresno River, 
California, as "Hensley Lake". 
Be it enacted hy the /Senate and House of Representatives 
of the 
United States of America 
in Congress assembled^ That the lake 
created by the Hidden Reservoir project, Fresno River, California, 
authorized by the Flood Control Act of 1962, shall hereafter be known 
as Hensley Lake, and any law, regulation, document, or record of the 
United States in which such lake is designated or referred to shall be 
held to refer to such lake under and by the name of "Hensley Lake". 
Approved January 2, 1975. 
January 2, 1975 
[H.R. 12044] 
Hensley Lake., 
Designation, 
76 Stat. 1180. 
Public Law 93-604 
AN ACT 
To revise and restate certain functions and duties of the Comptroller General 
of the United States and for other purposes. 
Be it enucted 'by the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may be 
cited as ih^ "General Accounting Office Act of 1974". 
TITLE 
I—STATISTICAL SAMPLING 
PROCEDURES 
IN 
T H E EXAMINATION OF VOUCHERS 
SEC. 101. Subsection (a) of Public Law 88-521, approved August 
30, 1964 (31 U.S.C. 82b-l(a)), is amended to read: 
January 2, 1 975 
[H.R, 12113] 
General Ac-
counting Office 
Act of 1974, 
31 u s e 52c 
note. 
1960 
PUBLIC LAW 93-604-JAN. 2, 1975 
[88 STAT. 
"(a) Whenever the head of any department or agency of the Gov-
ernment or the Commissioner of the District of Columbia determines 
that economies will result therefrom, such agency head or the Com-
missioner may prescribe the use of adequate and effective statistical 
sampling procedures in the examination of disbursement vouchers 
not exceeding such amounts as may from time to time be prescribed 
by the Comptroller General of the United States; and no certifying 
or disbursing officer acting in good faith and in conformity with such 
procedures shall be held liable with respect to any certification or pay-
ment made by him on a voucher which was not subject to specific exam-
ination because of the prescribed statistical sampling procedure: Pro-
vided^ That such officer and his department or agency have diligently 
pursued collection action to recover the illegal, improper, or incorrect 
payment in accordance with procedures prescribed by the Comptroller 
General. The Comptroller General shall include in his reviews of 
accounting systems an evaluation of the adequacy and effectiveness of 
procedures established under the authority of this Act.". 
TITLE II—AUDIT OF TRANSPORTATION PAYMENTS 
SEC. 201. Section 322 of the Transportation Act of 1940, as amended 
(49 U.S.C. 66), is further amended: 
(1) By deleting from subsection (a) the first sentence thereof 
and substituting therefor the following: 
"Payment for transportation of persons or property for or 
on behalf of the United States by any carrier or forwarder shall 
be made upon presentation of bills therefor prior to audit by 
the General Services Administration, or his designee. The right 
is reserved to the United States Government to deduct the amount 
of any overcharge by any carrier or forwarder from any amount 
subsequently found to be due such carrier or forwarder. This does 
not affect the authority of the General Accounting Office to make 
audits in accordance with the Budget and Accounting Act, 1921, 
as amended (31 U.S.C. 41), and the Accounting and Auditing 
Act of 1950, as amended (31 U.S.C. 65).". 
(2) In the second proviso of subsection (a), by striking out 
"cognizable by the General Accounting Office" and by striking 
out "received in the General Accounting Office" and inserting 
in lieu of the latter "received in the General Services Administra-
tion, or by his designee"; and 
(3) By redesignating subsections (b) and (c) as subsections 
(c) and (d), respectively, and by inserting the following new 
subsection (b) : 
"(b) Nothing in subsection (a) hereof shall be deemed to 
prevent any carrier or forwarder from requesting the Comp-
troller General to review the action on his claim by the General 
Services Administration, or his designee. Such request shall be 
forever barred unless received in the General Accounting Office 
within six months (not including in time of war) from the 
date the action was taken or within the periods of limitation 
specified in the second proviso in subsection (a) of this section, 
whichever is later.". 
...v.,^=, ^.^^^..,, 
SEC. 202. (a) Incident to the transfer of functions pursuant to the 
'pVrs'onn'er, and '' 
amendments made by section 201 of this Act, there shall be transferred 
^"49^usc 66 note. ^'^ ^^ General Services Administration such records, property, per-
sonnel, appropriations, and other funds of the General Accounting 
Office as the Comptroller General and the Director of the Office of 
Management and Budget shall jointly determine after consultation 
with the Administrator of General Services and, with respect to per-
sonnel, with the Chairman of the United States Civil Service 
Commission. 
Transfer of 
functions. 
Transfer of 
records, property 
Personnel 
development pro-
88 STAT. ] 
PUBLIC LAW 93-604-JAN. 2, 1975 
1961 
(b) Personnel transferred pursuant to subsection (a) of this section 
shall not be reduced in classification or compensation for two years 
after such transfer, except for cause. After such two-year period, each 
person transferred pursuant to subsection (a) shall be subject to the 
provisions of section 5337 of title 5, United States Code, as if such 
person had continued to be an employee of the General Accounting 
Office. 
SEC. 203. (a) The transfer of functions and personnel under this 
4"usc''66'^no^te. 
title shall be effective on such date as is mutually determined by the 
Comptroller General of the United States and the Administrator of 
General Services, but not earlier than October 1, 1975, and not later 
than September 30,1976. 
(b) Upon the enactment of this Act the Comptroller General of the 
United States shall establish and carry out a continuing program of gram 
personnel development and improvement applicable to the personnel 
who will be transferred under this title. Such program shall include 
provisions for training, career development and counseling services, a 
review of equal employment opportunity problems and the taking of 
corrective action, where appropriate, and any restructuring, reclassifi-
cation, and redesigning of positions necessary to effectuate a full and 
adequate transfer of the functions as provided for under this title. 
(c) At least sixty days prior to the effective date determined under tio^^^i^'jfg^J'Jrar 
subsection (a), the Administrator of General Services shall estab- Register. 
lish a detailed plan for the transfer of functions and personnel under 
this title and shall publish such plan in the Federal Register. Such 
plan shall be based on a thorough survey of the availability of trans-
portation to any new location for functions and personnel transferred 
and of the availability of parking facilities and food, health, and 
other services for personnel transferred, and shall include a detailed 
description of a personnel development program to be conducted by 
the Administrator of General Services to assure the establishment 
and maintenance of procedures which guarantee equal employment 
opportunities, promotion opportunities, employment and career coun-
seling, and training and career development for personnel who are 
transferred. 
(d) Six months after the date of the transfer of the personnel and congress." 
functions under this title, the Administrator of the General Services 
Administration shall make a report to the Congress as to actions 
which he has taken to implement such plan and the transfer of such 
personnel and functions thereunder. 
TITLE III—AUDIT OF NONAPPROPRIATED 
FUND 
ACTIVITIES 
SEC. 301. (a) The (1) operations and funds (including central 
^^ ^^^ ^^^' 
funds) of nonappropriated fund and related activities authorized or 
operated by an executive agency to sell merchandise or services to 
military or other Government personnel and their dependents, such 
as the Army and Air Force Exchange Service, Navy Exchanges, 
Marine Corps Exchanges, Coast Guard Exchanges, Exchange Councils 
of the National Aeronautics and Space Administration, commissaries, 
clubs, and theaters, (2) systems of accounting and internal controls 
of such funds and activities, and (3) any internal or independent 
audits or reviews of such funds and activities shall, unless otherwise 
provided by law, be subject to review by the Comptroller General of 
the L^nited States in accordance with such principles and procedures 
and under such rules and regulations as he may prescribe. The Comp-
troller General and his duly authorized representatives shall have 
access to those books, accounts, records, documents, reports, files, and 
other papers, things, or property relevant to funds and activities 
1962 
PUBLIC LAW 93-604-JAN. 2, 1975 
[88 STAT. 
within this subsection as are deemed necessary by the Comptroller 
General. 
(b) When required by the Comptroller General for such nonap-
propriated fund and related activities with gross receipts from sales 
of more than $100,000 a year as he may designate by class, or upon 
specific request of the Comptroller General in/any other case, each 
executive agency shall furnish promptly a copy of the annual report 
of any nonappropriated fund or related activity referred to in sub-
section (a). If such information is not included in any activity's 
annual report, such agency shall also furnish a statement showing the 
yearly financial operations, financial condition, and cash flow, and such 
other annual information relating to the activity as may be agreed 
upon by the Comptroller General and the head of the executive agency 
concerned. 
TITLE IV—EMPLOYMENT OF E X P E R T S AND 
CONSULTANTS 
31 use 52c. 
5 use 5332 
note. 
31 use 51-1, 
31 use 51-1 
note. 
SEC. 401. The Comptroller General may employ experts and con-
sultants in accordance with section 3109 of title 5, United States 
Code, at rates not in excess of the maximum daily rate prescribed 
for GS-18 under section 5332 of title 5, United States Code, for 
J)ersons in the Government service employed intermittently. Ten 
such experts or consultants may be employed for periods not in 
excess of three years. 
TITLE V—GENERAL ACCOUNTING OFFICE BUILDING 
SEC. 501. (a) The Comptroller General of the United States shall 
be entitled to the use of such space in the General Accounting Office 
Building as he determines to be necessary, and the head of any 
Federal agency which exercises authority over such building shall 
provide the Comptroller General with such space within the building 
as the Comptroller General determines to be necessary. 
(b) Notwithstanding any other provision of law, during the one-
year period beginning on the date of enactment of this Act, the 
Administrator for General Services may contract for the rent of a 
building in the District of Columbia to the extent necessary to secure 
an amount of space equal to the amount of space which the Adminis-
trator makes available to the Comptroller General of the United 
States during such one-year period under the provisions of subsection 
(a). 
TITLE VI—AUDITS OF GOVERNMENT CORPORATIONS 
AMENDMENTS TO THE GOVERNMENT CORPORATION CONTROL ACT 
SEC. 601. (a) Section 105 of the Government Corporation Control 
Act (31 U.S.C. 850) is amended by adding thereto the following 
sentence: "Effective July 1, 1974, each wholly owned Government 
corporation shall be audited at least once in every three years.". 
f.?.°'V° 
(b) The first sentence of section 106 of such Act (31 U.S.C. 851) 
is amended to read as follows: "A report of each audit conducted under 
section 105 shall be made by the Comptroller General to the Congress 
not later than six and one-half months following the close of the 
last year covered by such audit.". 
(c) Section 202 of such Act (31 U.S.C. 857) is amended by adding 
thereto the following sentence: "Effective July 1, 1974, each mixed-
ownership Government corporation shall be audited at least once in 
every three years,". 
eongress 
31 use 850. 
88 STAT. ] 
PUBLIC LAW 93-604-JAN. 2, 1975 
1963 
(d) The first sentence of section 203 of such Act (31 U.S.C. 858) 
^^^P°[\'° 
is amended to read as follows: "A report of each audit conducted 
°"eress. 
under section 202 shall be made by the Comptroller General to the 
^^ "^^ ^^'^' 
Congress not later than six and one-half months following the close 
of the last year covered by such audit.". 
AMENDMENTS TO T H E FEDERAL DEPOSIT INSURANCE ACT 
SEC. 602. (a) Section 17(b) of the Federal Deposit Insurance Act 
(12 U.S.C. 1827(b)) is amended by adding thereto the following 
sentence: "The Corporation shall be audited at least once in every 
three years.". 
(b) The first and second sentences of section 17(c) of such Act (12 (,f^^P°3y° 
U.S.C. 1827(c)) are deleted and the following is inserted in their 
°"^'"^^^-
place: "A report of each audit conducted under subsection (b) of this 
section shall be made by the Comptroller General to the Congress not 
later than six and one-half months following the close of the last year 
covered by such audit.". 
AMENDMENT TO FEDERAL CROP INSURANCE ACT 
SEC. 603. Section 513 of the Federal Crop Insurance Act (52 Stat. ge^rJ'ta'rVof 
76; 7 U.S.C. 1513) is amended to read as follows: "The Corporation Ag^cJiture. 
shall at all times maintain complete and accurate books of accounts and 
shall file annually with the Secretary of Agriculture a complete report 
as to the business of the Corporation.". 
AMENDMENTS TO THE HOUSING AND URBAN DEVELOPMENT ACT OF 
1 9 6 8 
SEC. 604. Section 107(g) of the Housing and Urban Development 
Act of 1968 (12 U.S.C. I701y(g)) is amended by: 
(1) adding a new sentence at the end of subparagraph (1) 
thereof as follows: "Such audit shall be made at least once in 
every three years.". 
(2) substituting the following sentence in lieu of the first sen- C(fng^es's!° 
fence in subparagraph (2) thereof: "A report of each such audit 
shall be made by the Comptroller General to the Congress not 
later than six and one-half months following the close of the last 
year covered by such audit.". 
AMENDMENT TO DISTRICT OF COLUMBIA REDEVELOPMENT ACT OF 1 9 4 5 
SEC. 605. Section 17 of the District of Columbia Redevelopment 
Act of 1945 (60 Stat. 801) is amended by deleting the word "annual" ^^D-C code s-
from the clause "such books shall be subject to annual audit by the 
General Accounting Office.". 
TITLE VII—REVISION OF ANNUAL AUDIT 
REQUIREMENTS 
AMENDMENT TO FEDERAL PROPERTY AND ADMINISTRATIVE 
SERVICES 
ACT OF 194 9 
SEC. 701. Section 109(e) of the Federal Property and Administra-
tive Services Act of 1949 (40 U.S.C. 756(e)) is amended to read as 
follows: 
"(e) (1) As of June 30 of each year, there shall be covered into the 
United States Treasury as miscellaneous receipts any surplus in the 
General Supply Fund, all assets, liabilities, and prior losses con-
sidered, above the amounts transferred or appropriated to establish 
and maintain said fund. 
716. 
31 use 65 note. 
1964 
PUBLIC LAW 93-604-JAN. 2, 1975 
[88 STAT. 
"(2) The Comptroller General shall make audits of the General 
Supply Fund in accordance with the provisions of the Accounting and 
Auditing Act of 1950 and make reports on the results thereof.". 
AMENDMENT TO THE FEDERAL AVIATION ACT OF 1958 
SEO. 702. That part of the second sen<"ence of section 1807(f) of 
the Federal Aviation Act of 1958 (49 U.S.C. 1537(f)) which pre-
cedes the proviso is amended to ren d as follows: "The Secretary shall 
maintain a set of accounts which shall be audited by the Comptroller 
General in accordance with the provisions of the Accounting and 
Auditing Act of 1950.". 
AMENDMENT WITH RESPECT TO THE BUREAU OF ENGRAVING AND 
PRINTING FUND 
SEC. 703. Section 6 of tlie Act entitled "An Act to provide for financ-
ing the operations of the Bureau of Engraving and Printing, Treas-
ury Department, and for other purposes"^ (31 U.S.C. 181d) is amended 
to read as follows: "The financial transactions, accounts, and reports 
of the fund shall be audited by the Comptroller General in accord-
ance with the provisions of the Accounting and Auditing Act of 1950.". 
A M E N D M E N T WITH RESPECT TO THE VETERANS' CANTEEN SERVICE 
SEC. 704. Section 4207 of title 38, United States Code, is amended 
to read as follows: 
"§ 4207. Audit of accounts 
"The Service shall maintain a set of accounts which shall be audited 
by the Comptroller General in accordance with the provisions of 
the Accounting and Auditing Act of 1950.". 
AMENDMENT WITH RESPECT TO THE HIGHER EDUCATION INSURED LOAN 
PROGRAM 
SEC 705. (a) Paragraph (2) of section 432(b) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1082(b)(2)) is amended to read as 
follows: 
"(2) maintain with respect to insurance under this part a 
set of accounts, which shall be audited by the Comptroller Gen-
eral in accordance with the provisions of the Accounting and 
Auditing Act of 1950, except that the transactions of the Com-
missioner, including the settlement of insurance claims and of 
claims for payments pursuant to section 428, and transactions 
related thereto and vouchers approved by the Commissioner in 
connection with such transactions, shall be final and conclusive 
upon all accounting and other officers of the Government.", 
(b) Section 402(a) (2) of the Housing Act of 1950 (64 Stat. 78; 12 
U.S.C. 1749a(a) (2)) is amended to read as follows: 
"(2) maintain a set of accounts which shall be audited by the 
Comptroller General in accordance with the provisions of the 
Accounting and Auditing Act of 1950: Provided^ That such finan-
cial transactions of the Administrator as the making of loans and 
vouchers approved by the Administrator in connection with such 
financial transactions shall be final and conclusive upon all officers 
of the Government.". 
AMENDMENT TO THE FEDERAL CREDIT UNION ACT 
SEC. 706. Section 209(b)(2) of the Federal Credit Union Act as 
added by section 1 of Public Law 91-468 (12 U.S.C. 1789(b) (2)) is 
20 use 1078. 
88 STAT. ] 
PUBLIC LAW 93-605-JAN. 2, 1975 
1965 
amended by deleting the word "annually" therefrom. 
AMENDMENT WITH RESPECT TO AUDIT OF THE GOVERNMENT PRINTING 
OFFICE 
SEC. 707. The third sentence of subsection 309(c) of title 44 of the 
United States Code is amended to read as follows: "The Comptroller cfn"'^es's^ind 
General shall audit the activities of the Government Printing Office PubUc Printer. 
at least once in every three years and shall furnish reports of such 
audits to the Congress and the Public Printer.". 
TITLE VIII—LIMITATION OF TIME ON CLAIMS AND 
DEMANDS 
SEC. 801. Section 1 of the Act of October 9, 1940 (54 Stat. 1061, 
ch. 788), is amended by deleting the phrase "10 full years" and sub- 
^^ "sc 71 a. 
stituting "6 years" therefor. 
SEC. 802. The amendment provided for in section 801 shall go into 
Effective date. 
effect 6 months after the date of enactment and will have no effect on 
claims received in the General Accounting Office before that time. 
Approved January 2, 1975. 
Public Law 93-605 
A N A C T 
January 2, 1975 
To amend section 510 of the Merchant Marine Act, 1936. 
[H.R. 12427] 
note. 
Vessels. 
Exchange. 
46 use 1191 
Be it enacted hy the Senate and House of Repi^esentatwes of the 
United States of Atnenca in Congress assemhled^ That subsection 510 
(i) of the Merchant Marine Act, 1936 (46 U.S.C. 1160(i)) is amended 
to read as follows: 
"(i) The Secretary of Commerce is authorized, within two years 
after enactment of this subsection, to acquire mariner class vessels 
constructed under title VII of this Act and Public Law 911, Eighty-
first Congress, in exchange for obsolete vessels in the National Defense 
^^ ^*'''' ^22^' 
Reserve Fleet that are scheduled for scrapping. For purposes of this 
subsection, the traded-in and traded-out vessels shall be valued at the 
higher of their scrap value in domestic or foreign markets as of the 
date of the exchange: Provided^ That in any exchange transactions 
the value assigned to the traded-in and traded-out vessels will be 
determined on the same basis. The value of the traded-out vessel shall 
be as nearly as possible equal to the value of the traded-in vessel plus 
the fair value of the cost of towing the traded-out vessel to the place 
of scrapping. To the extent the value of the traded-out vessel exceeds 
the value of the traded-in vessel plus the fair value of the cost of tow-
ing, the owner of the traded-in vessel shall pay the excess to the Secre-
tary of Commerce in cash at the time of the excliange. This excess shall . vessel opera-
be deposited into the Vessel Operations Revolving Fund and all costs F°nd. ^^° ^ "^ 
incident to the lay-up of vessels acquired under this xlct may be paid 
from balances in the Fund. No payments shall be made by the Secre-
tary of Commerce to the owner of any traded-in vessel in connection 
with any exchange under this subsection. Notwithstanding the pro-
visions of sections 9 and 37 of the Shipping Act, 1961, vessels traded '^^ "^"^ ^°^' 
out under this subsection may be scrapped in approved foreign mar-
kets. The provision of this subsection (i) as it read prior to this 
amendment shall govern all transactions made thereunder prior to 
this amendment.".