B-140997, NOVEMBER 25, 1959, 39 COMP. GEN. 400

B-140997: Nov 25, 1959

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IS SPECIFICALLY MADE APPLICABLE TO THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA. THAT AUTHORITY IS REQUIRED TO BE EXERCISED CONSISTENT WITH THE PROVISIONS OF SECTION 112 OF THE ACCOUNTING AND AUDITING ACT OF 1950. THE OMISSION OF THE DISTRICT OF COLUMBIA FROM THE SPECIFIC TERMS OF THE 1950 ACT IS IMMATERIAL INSOFAR AS THE APPLICATION OF THE PRINCIPLES. RELATED ACCOUNTING AND AUDITING REQUIREMENTS ARE CONCERNED. THE ESTABLISHMENT OF AN ACCOUNTING SYSTEM FOR THE DISTRICT OF COLUMBIA IS REQUIRED TO CONFORM TO THE STANDARDS PRESCRIBED BY THE COMPTROLLER GENERAL AND TO BE SUBMITTED FOR APPROVAL PURSUANT TO SECTION 112 (B) OF THE 1950 ACT. ADVISES THAT AFTER A STUDY OF THE MATTER YOU CONCLUDE THAT THE ACCOUNTING AND AUDITING ACT OF 1950 IS NOT APPLICABLE TO THE DISTRICT OF COLUMBIA.

B-140997, NOVEMBER 25, 1959, 39 COMP. GEN. 400

DISTRICT OF COLUMBIA - ACCOUNTING SYSTEM - CONFORMANCE TO PRESCRIBED PROCEDURES - SUBMISSION TO COMPTROLLER GENERAL SINCE THE AUTHORITY VESTED IN THE COMPTROLLER GENERAL TO PRESCRIBE FORMS, SYSTEMS AND PROCEDURES UNDER SECTION 309 OF THE BUDGET AND ACCOUNTING ACT, 1921, 31 U.S.C. 49, IS SPECIFICALLY MADE APPLICABLE TO THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA, 31 U.S.C. 2, AND THAT AUTHORITY IS REQUIRED TO BE EXERCISED CONSISTENT WITH THE PROVISIONS OF SECTION 112 OF THE ACCOUNTING AND AUDITING ACT OF 1950, THE OMISSION OF THE DISTRICT OF COLUMBIA FROM THE SPECIFIC TERMS OF THE 1950 ACT IS IMMATERIAL INSOFAR AS THE APPLICATION OF THE PRINCIPLES, STANDARDS, AND RELATED ACCOUNTING AND AUDITING REQUIREMENTS ARE CONCERNED; THEREFORE, THE ESTABLISHMENT OF AN ACCOUNTING SYSTEM FOR THE DISTRICT OF COLUMBIA IS REQUIRED TO CONFORM TO THE STANDARDS PRESCRIBED BY THE COMPTROLLER GENERAL AND TO BE SUBMITTED FOR APPROVAL PURSUANT TO SECTION 112 (B) OF THE 1950 ACT, 31 U.S.C. 66 (B).

TO THE PRESIDENT, BOARD OF COMMISSIONERS OF THE DISTRICT OF COLUMBIA, NOVEMBER 25, 1959:

YOUR LETTER OF OCTOBER 13, 1959, ADVISES THAT AFTER A STUDY OF THE MATTER YOU CONCLUDE THAT THE ACCOUNTING AND AUDITING ACT OF 1950 IS NOT APPLICABLE TO THE DISTRICT OF COLUMBIA, AND REQUESTS OUR VIEWS ON THE VALIDITY OF SUCH CONCLUSION.

THE ACCOUNTING AND AUDITING ACT OF 1950, COMPRISING PART II OF TITLE I OF THE BUDGET AND ACCOUNTING PROCEDURES ACT OF 1950, PUBLIC LAW 784, 81ST CONGRESS, APPROVED SEPTEMBER 12, 1950, 64 STAT. 834, 31 U.S.C. 65, ET SEQ., USES THE TERM "EXECUTIVE AGENCY," AND THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA IS NOT MENTIONED THEREIN. SECTION 118 OF THE ACT, 64 STAT. 837, 31 U.S.C. 65A, DEFINES THE TERM "EXECUTIVE AGENCY" AS MEANING "ANY EXECUTIVE DEPARTMENT OR INDEPENDENT ESTABLISHMENT IN THE EXECUTIVE BRANCH OF THE GOVERNMENT" AND THERE IS NO NECESSITY TO DISCUSS THE PROPOSITION HERE. SEE DISTRICT OF COLUMBIA V. WOODBURY, 136 U.S. 450; METROPOLITAN RAILROAD CO. V. DISTRICT OF COLUMBIA, 132 U.S. 1. THUS, IT IS APPARENT THAT THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA IS NOT AN EXECUTIVE AGENCY AS THAT TERM IS USED IN THE ACCOUNTING AND AUDITING ACT OF 1950. HOWEVER, THAT FACT OF ITSELF DOES NOT RENDER THE ACT INAPPLICABLE TO THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA IN ITS PRACTICAL APPLICATION. SECTION 112 (A) OF THE ACT, 31 U.S.C. 66 (A), PROVIDES IN PERTINENT PART THAT:

THE COMPTROLLER GENERAL SHALL CONTINUE TO EXERCISE * * * TO THE EXTENT HE DEEMS NECESSARY, THE AUTHORITY VESTED IN HIM BE SECTION 309 OF THE BUDGET AND ACCOUNTING ACT, 1921 (42 STAT. 25). ANY SUCH EXERCISE OF AUTHORITY SHALL BE CONSISTENT WITH THE PROVISIONS OF THIS SECTION.

SECTION 309 OF THE BUDGET AND ACCOUNTING ACT, 1921, 31 U.S.C. 49, PROVIDES:

THE COMPTROLLER GENERAL SHALL PRESCRIBE THE FORMS, SYSTEMS, AND PROCEDURE FOR THE ADMINISTRATIVE APPROPRIATION AND FUND ACCOUNTING IN THE SEVERAL DEPARTMENTS AND ESTABLISHMENTS, AND FOR THE ADMINISTRATIVE EXAMINATION OF FISCAL OFFICER'S ACCOUNTS AND CLAIMS AGAINST THE UNITED STATES.

SECTION 309 IS SPECIFICALLY MADE APPLICABLE TO THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA BY 31 U.S.C. 2.

THE EXERCISE OF OUR AUTHORITY UNDER SECTION 309,"CONSISTENT WITH THE PROVISIONS OF" SECTION 112 OF THE 1950 ACT, 31 U.S.C. 66, TOGETHER WITH THE GENERAL AUDITING AUTHORITY OVER THE DISTRICT OF COLUMBIA SPECIFICALLY GRANTED BY 31 U.S.C. 72, RENDERS OUR RELATIONSHIP WITH THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA, INSOFAR AS THE PRINCIPALS, STANDARDS, AND RELATED REQUIREMENTS FOR ACCOUNTING AND OUR AUDIT ARE CONCERNED, EXACTLY THE SAME AS IT WOULD BE IF THE MUNICIPAL GOVERNMENT HAD BEEN SPECIFICALLY INCLUDED IN THE 1950 ACT. HENCE, THE OMISSION OF THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA FROM THE SPECIFIC TERMS OF THE ACCOUNTING AND AUDITING ACT OF 1950, IS IMMATERIAL WITH REGARD TO THE APPLICABILITY TO THAT GOVERNMENT OF THE PRINCIPLES, STANDARDS, PROCEDURES, SYSTEMS, ETC., DEVELOPED AND ESTABLISHED UNDER THAT ACT.

WE BELIEVE IT IS CLEAR THAT AN ADEQUATE ACCOUNTING SYSTEM FOR THE DISTRICT OF COLUMBIA CONFORMING TO OUR PRESCRIBED PRINCIPLES, STANDARDS, AND RELATED REQUIREMENTS FOR ACCOUNTING IS REQUIRED, AND THAT WHEN SUCH SYSTEM IS ESTABLISHED IT SHOULD BE SUBMITTED TO US FOR APPROVAL IN ACCORDANCE WITH OUR CIRCULAR LETTER OF MAY 28, 1959, B 115390, FOR APPROVAL UNDER SECTION 112 (B) OF THE 1950 ACT, 31 U.S.C. 66 (B).