A-32923, JUN. 30, 1961

A-32923: Jun 30, 1961

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COPIES OF THESE LICENSES WERE ORIGINALLY REQUIRED TO BE FORWARDED TO THE GENERAL ACCOUNTING OFFICE FOR THE REASON THAT WE WERE PERFORMING A DETAILED VOUCHER AUDIT OF ALL PAYMENTS THEREUNDER ON A CENTRALIZED BASIS. WE NOW ARE PERFORMING MOST OF OUR AUDITS AT THE SITES WHERE THE RECORDS ARE KEPT BY THE AGENCIES AND IN SUCH CASES WE ARE AUTHORIZED BY SECTION 117 (B) OF THE ACCOUNTING AND AUDITING ACT OF 1950. WHILE THE AUDIT OF THE FEDERAL POWER COMMISSION IS STILL BEING PERFORMED CENTRALLY. THE LICENSES ARE NOW BEING USED ONLY TO A VERY LIMITED EXTENT. WE UNDERSTAND THAT COPIES OF THESE LICENSES WILL BE RETAINED BY THE COMMISSION AND REPRESENTATIVES OF THIS OFFICE WILL BE GIVEN ACCESS THERETO.

A-32923, JUN. 30, 1961

TO THE CHAIRMAN, FEDERAL POWER COMMISSION:

MR. JOSEPH H. GUTRIDE, SECRETARY OF THE COMMISSION, HAD DISCUSSED WITH MR. R. F. KELLER, GENERAL COUNSEL OF THE GENERAL ACCOUNTING OFFICE, A PROPOSAL TO REPEAL THE REQUIREMENT IN SECTION 4 (B) OF THE FEDERAL POWER ACT, AS AMENDED, 16 U.S.C. 797 (B), THAT CERTAIN COST STATEMENTS BE FILED WITH THE SECRETARY OF THE TREASURY, AND HAS ASKED WHETHER THE FILING OF COPIES OF CERTAIN LICENSES WITH THE GENERAL ACCOUNTING OFFICE AS REQUIRED BY SECTION 6 OF THAT ACT, AS AMENDED, 16 U.S.C. 799, SERVED ANY USEFUL PURPOSE TO US.

COPIES OF THESE LICENSES WERE ORIGINALLY REQUIRED TO BE FORWARDED TO THE GENERAL ACCOUNTING OFFICE FOR THE REASON THAT WE WERE PERFORMING A DETAILED VOUCHER AUDIT OF ALL PAYMENTS THEREUNDER ON A CENTRALIZED BASIS. WE NOW ARE PERFORMING MOST OF OUR AUDITS AT THE SITES WHERE THE RECORDS ARE KEPT BY THE AGENCIES AND IN SUCH CASES WE ARE AUTHORIZED BY SECTION 117 (B) OF THE ACCOUNTING AND AUDITING ACT OF 1950, 31 U.S.C. 67, TO PERMIT THE AGENCIES TO RETAIN THE ACCOUNTS, CONTRACTS, VOUCHERS AND OTHER DOCUMENTS IN THEIR FILES.

WHILE THE AUDIT OF THE FEDERAL POWER COMMISSION IS STILL BEING PERFORMED CENTRALLY, WE DO NOT BELIEVE THAT THE USE OF THE LICENSES IN OUR PRESENT CENTRALIZED AUDIT JUSTIFIES THE EXPENSE INCURRED IN FORWARDING THEM TO US. THE LICENSES ARE NOW BEING USED ONLY TO A VERY LIMITED EXTENT, THE PAYMENTS UNDER A LARGE PORTION OF THEM BEING IN THE AMOUNT OF ONLY ONE DOLLAR EACH. WE COULD ACCOMPLISH OUR PURPOSES EQUALLY WELL BE REVIEWING THE LICENSES RETAINED IN YOUR FILES AS AND WHEN THE NEED ARISES.

WE UNDERSTAND THAT COPIES OF THESE LICENSES WILL BE RETAINED BY THE COMMISSION AND REPRESENTATIVES OF THIS OFFICE WILL BE GIVEN ACCESS THERETO. UNDER THE CIRCUMSTANCES WE WOULD RECOMMEND REPEAL OF THE LAST SENTENCE OF SECTION 6 OF THE FEDERAL POWER ACT.