B-114435, JAN. 9, 1957

B-114435, JAN. 9, 1957

TO THE SECRETARY OF DEFENSE:

THERE HAVE BEEN CONSIDERED THE LETTER DATED OCTOBER 3, 1956, FROM THE ASSISTANT SECRETARY OF DEFENSE (COMPTROLLER) AND ATTACHED COMMENTS FROM THE SECRETARIES OF THE MILITARY DEPARTMENTS RELATIVE TO THE REPORT OF THE JOINT DEPARTMENT OF DEFENSE--- UNITED STATES GENERAL ACCOUNTING OFFICE SURVEY OF MILITARY TRAFFIC MANAGEMENT AND RELATED FISCAL MATTERS IN EUROPE. THE LETTER STATES THE RECOMMENDATIONS SET FORTH IN THE REPORT ARE ACCEPTABLE IN PRINCIPLE TO THE MILITARY DEPARTMENTS AND THAT STEPS HAVE BEEN TAKEN TO IMPLEMENT CERTAIN RECOMMENDATIONS. ALSO, IT IS STATED THAT FURTHER CONSIDERATION IS NECESSARY BY YOUR DEPARTMENT TO FULLY IMPLEMENT OTHER PHASES OF THE PROGRAM RECOMMENDED BY THE SURVEY GROUP. LASTLY, THERE ARE REQUESTED OUR VIEWS ON REPORT RECOMMENDATIONS NUMBERED 3 AND 7 AND ANY OTHER COMMENTS AS TO THE REPORT AND THE ACTIONS NOW UNDER WAY TO EFFECT FINAL DISPOSITION OF THE PROBLEMS INVOLVED.

A REVIEW OF THE CONTENTS OF LETTER OF OCTOBER 3, 1956, AS WELL AS THE COMMENTS OF THE MILITARY DEPARTMENTS INDICATES ESSENTIAL AGREEMENT WITH THE REPORT RECOMMENDATIONS AND THE DESIRE TO INITIATE SUCH CHANGES AS WILL MAKE THEM EFFECTIVE AS SOON AS PRACTICABLE.

TO COMMENT GENERALLY WITH RESPECT TO THE SURVEY REPORT AND THE RECOMMENDATIONS SET FORTH THEREIN, OUR OFFICE IS IN AGREEMENT WITH THE VIEW EXPRESSED IN THE ASSISTANT SECRETARY'S LETTER OF OCTOBER 3, 1956, THAT THE FINDINGS OF THE SURVEY GROUP REFLECT A GENERAL IMPROVEMENT IN THE OVERALL SITUATION WHICH WAS THE SUBJECT OF OUR LETTER OF MARCH 27, 1953, B -114435, AND ENSUING CORRESPONDENCE. FURTHER, WITH RESPECT TO THE RECOMMENDATIONS SET FORTH IN THE REPORT, OUR OFFICE CONCURS THEREIN AND OFFERS TO EFFECTUATE SUCH CHANGES IN ITS PROCEDURES AND REQUIREMENTS AS WILL GIVE EFFECT IN A PRACTICAL MANNER TO THESE RECOMMENDATIONS AND TO ASSIST YOUR DEPARTMENT IN EFFECTUATING CHANGES WITHIN THE MILITARY DEPARTMENTS. IT IS RECOGNIZED THERE REMAINS THE NEED FOR CONTINUATION OF OUR JOINT EFFORTS SO THE CHANGES RECOMMENDED AND THE BENEFITS TO FLOW THEREFROM MAY BE BROUGHT TO FRUITION. AS A MEASURE IN THIS DIRECTION IT APPEARS JOINT FORMAL ACTION MAY BE UNDERTAKEN AT THIS TIME WITH RESPECT TO RECOMMENDATIONS NUMBERED 3 AND 7.

ACCORDINGLY, AS TO RECOMMENDATION NUMBER 3, OUR OFFICE IS AGREEABLE TO ACCEPTING WITHOUT FURTHER REVIEW BY OUR OFFICE THE TECHNICAL AND ADMINISTRATIVE EXAMINATION OF FREIGHT AND PASSENGER TRANSPORTATION BILLS, INCLUDING PROPRIETY OF RATES, FARES AND CHARGES, AS PERFORMED BY THE ARMY AT HEIDELBERG, GERMANY, AND THE AIR FORCE AT LONDON, ENGLAND, AND MADRID, SPAIN, SUBJECT TO SUCH PERIODIC ON-SITE TEST VERIFICATIONS AND PROCEDURAL REVIEWS AS MAY BE CONDUCTED BY OUR OFFICE AND PROVIDED THERE IS MAINTAINED AT THESE OFFICES SUCH PERSONNEL COMPLEMENTS AS MAY BE REQUIRED TO SUSTAIN AN ACCEPTABLE QUALITY OF OPERATION.

IT IS TO BE NOTED OUR CONCURRENCE DOES NOT EXTEND TO EXCEPTING FROM EXAMINATION BY OUR OFFICE THOSE PAYMENTS FOR FREIGHT AND PASSENGER TRANSPORTATION SERVICES IN ACCOUNTS GENERALLY OF MILITARY OFFICERS DISBURSING IN THE CONTINENTAL EUROPEAN, UNITED KINGDOM AND SPANISH AREAS OR ELSEWHERE OUTSIDE THE UNITED STATES WHICH ARE NOT SUBJECTED TO THE TYPE OF TECHNICAL EXAMINATION NOW CONDUCTED AT THE THREE CITED OFFICES. IT IS OUR VIEW THAT ONLY BY REASON OF THE QUALITY OF THE TECHNICAL EXAMINATION OF RATES, FARES AND CHARGES AS NOW CONDUCTED WITHIN THE THREE OFFICES CITED WITH RESPECT TO BILLS FOR FREIGHT AND PASSENGER TRANSPORTATION SERVICES FURNISHED FOR THE ACCOUNT OF THE MILITARY DEPARTMENTS IS OUR OFFICE WARRANTED IN AGREEING TO REVISE ITS PROCEDURES WITH RESPECT TO TRANSPORTATION AUDIT METHODS. IN THIS CONNECTION THERE IS PROJECTED FOR CONSIDERATION THE DESIRABILITY OF HAVING ALL BILLS FOR FREIGHT AND PASSENGER TRANSPORTATION SERVICES FOR ALL MILITARY ACTIVITIES IN THE EUROPEAN, UNITED KINGDOM, SPANISH, NEAR EAST AND NORTH AFRICAN AREAS SUBJECTED TO TECHNICAL EXAMINATION IN ONE OF THE THREE OFFICES CITED ABOVE SO THERE MAY BE REALIZED SUCH ADDITIONAL BENEFITS AND ECONOMIES AS APPEAR ATTAINABLE IN THIS AREA OF SPECIALIZED OPERATIONS.

WITH RESPECT TO RECOMMENDATION NUMBER 7, WHAT HAS BEEN STATED HERETOFORE AS TO REPORT RECOMMENDATION NUMBER 3 OBVIATES THE NECESSITY FOR MOVEMENT TO THE CONTINENTAL UNITED STATES SO FAR AS THE THREE CITED OFFICES ARE CONCERNED OF SUPPORTING DOCUMENTATION RELATING TO TRANSPORTATION PAYMENTS. ACCORDINGLY, THERE SHOULD BE FORWARDED TO OUR OFFICE THE ACCOUNTS OF EACH DISBURSING OFFICER AS HERETOFORE TOGETHER WITH THE ORIGINAL CERTIFIED VOUCHERS COVERING PAYMENTS FOR TRANSPORTATION CHARGES, WITH THE EXCEPTION THAT ALL SUPPORTING DOCUMENTATION TO THESE VOUCHERS WILL BE RETAINED AT THE SITE. IN THIS CONNECTION, AS TO ANY RECORDS RETENTION PROGRAM ESTABLISHED FOR THESE DOCUMENTS THERE SHOULD BE CONSIDERED THE TEN YEAR PERIOD WITHIN WHICH CLAIMS MAY BE PRESENTED TO OUR OFFICE AS WELL AS THE STATUTORY PERIODS FIXED BY FOREIGN COUNTRIES FOR THE INITIATION OF CLAIMS OR LITIGATION IN DISPUTED MATTERS.

WITH RESPECT TO CLAIMS AGAINST THE UNITED STATES WHICH ARE TRANSMITTED TO OUR OFFICE FOR ADJUDICATION AND SETTLEMENT AND WHICH RELATE TO THE PAYMENTS HEREIN CONSIDERED, PROCEDURES SHOULD BE ADOPTED WHICH WILL PROVIDE AS TO EACH CLAIM (A) THE ORIGINAL CLAIM DOCUMENT; (B) A COMPLETE FACTUAL AND FISCAL REPORT AND APPROPRIATE ADMINISTRATIVE RECOMMENDATION AS TO THE ACTION TO BE TAKEN HERE; (C) COPIES OF OR EXCERPTS FROM PERTINENT RETAINED RECORDS; AND (D) CITATION TO THE FUNDS TO BE CHARGED IN THE EVENT OF ALLOWANCE OF ANY OR ALL OF THE AMOUNT SOUGHT FROM THE UNITED STATES.

WE WILL APPRECIATE ADVICE OF THE DATE THE CHANGES HEREIN CONSIDERED ARE TO BE MADE EFFECTIVE SO THAT OUR INTERNAL ARRANGEMENTS MAY BE SCHEDULED ACCORDINGLY.