B-45108, JUN. 23, 1967

B-45108, JUN. 23, 1967

TO THE SECRETARY OF THE TREASURY:

THIS IS IN REPLY TO LETTER OF APRIL 13, 1967, FROM THE COMMISSIONER OF ACCOUNTS, REFERENCE CARD, REQUESTING A REVISION OF THE PROCEDURE APPROVED BY THE COMPTROLLER GENERAL IN LETTER DATED JUNE 23, 1952, B 45108. APPROVAL WAS GRANTED IN THAT LETTER TO THE USE OF AN ADJUSTMENT WARRANT (TREASURY FORM 424) DESIGNATED AS TYPE XII FOR THE PURPOSE OF MAKING FUNDS AVAILABLE TO THE RAILROAD RETIREMENT ACCOUNT REPRESENTING AN AMOUNT EQUAL TO AMOUNTS COVERED INTO THE TREASURY (MINUS REFUNDS) PURSUANT TO THE RAILROAD RETIREMENT BOARD APPROPRIATION ACT, 1952, APPROVED AUGUST 31, 1951, 65 STAT. 222. UNDER PRESENT PROCEDURE AN ADJUSTMENT WARRANT IS PROCESSED EACH MONTH TO APPROPRIATE TO THE RAILROAD RETIREMENT ACCOUNTS A NET TOTAL AMOUNT EQUAL TO THE DAILY AMOUNTS OF RAILROAD RETIREMENT TAX ACT RECEIPTS COVERED INTO THE TREASURY DURING THE MONTH, LESS THE AMOUNT OF REFUNDS OF TAXES.

IT IS NOW PROPOSED BY THE COMMISSIONER OF ACCOUNTS, FOR APPROVAL BY OUR OFFICE, THAT THE ADJUSTMENT WARRANT BE PROCESSED TO APPROPRIATE AN AMOUNT EQUAL TO THE GROSS AMOUNT OF RAILROAD RETIREMENT TAX ACT RECEIPTS COVERED INTO THE TREASURY EACH MONTH, AND THAT THE REDUCTION OF REFUNDS OF RECEIPTS BE PROCESSED ON A SEPARATE MONTHLY STANDARD FORM 1081, VOUCHER AND SCHEDULE OF WITHDRAWALS AND CREDITS, TO CHARGE THE TRUST ACCOUNTS AND CREDIT GENERAL FUND ACCOUNTS "20X0903 REFUNDING INTERNAL REVENUE COLLECTIONS" AND "20X0904 REFUNDING INTERNAL REVENUE COLLECTIONS, INTEREST," AS APPLICABLE. THIS PROPOSAL IS STATED BY THE COMMISSIONER TO BE IN THE INTEREST OF CONSISTENT TREATMENT OF TRANSACTIONS IN THE DETAILED OPERATIONS OF THE OFFICE, AND THAT NO CHANGE WOULD BE MADE IN THE PRESENT TIMING OF TRANSACTIONS MAKING FUNDS AVAILABLE TO THE TRUST ACCOUNTS. ALSO, IT IS STATED TO BE ADVANTAGEOUS IN THAT IT WOULD PROVIDE FOR CONSISTENT ACCOUNTING TREATMENT FOR REFUNDS OF RECEIPTS AS THEY RELATE TO TRUST FUNDS, SINCE THIS PROCEDURE IS PRESENTLY BEING FOLLOWED WITH RESPECT TO THE FEDERAL OLD-AGE AND SURVIVORS INSURANCE TRUST FUND, FEDERAL DISABILITY INSURANCE TRUST FUND, FEDERAL HOSPITAL INSURANCE TRUST FUND AND UNEMPLOYMENT TRUST FUND. IN ADDITION, IT IS STATED THAT THE PROPOSED PROCEDURE WOULD MORE ACCURATELY SHOW THE ACTUAL FLOW OF FUNDS AND THEREBY PROVIDE GREATER DISCLOSURE.

THE RAILROAD RETIREMENT BOARD APPROPRIATION ACT, 1953, APPROVED JULY 5, 1952, 66 STAT. 371, CONTAINS A PERMANENT-INDEFINITE APPROPRIATION AS FOLLOWS:

"PAYMENT TO RAILROAD RETIREMENT ACCOUNT: FOR ANNUAL PREMIUMS AFTER JUNE 30, 1952, TO PROVIDE FOR THE PAYMENT OF ALL ANNUITIES, PENSIONS, AND DEATH BENEFITS, IN ACCORDANCE WITH THE PROVISIONS OF THE RAILROAD RETIREMENT ACTS OF 1935 AND 1937, AS AMENDED (45 U.S.C. 228-228S), AND FOR EXPENSES NECESSARY FOR THE RAILROAD RETIREMENT BOARD IN THE ADMINISTRATION OF SAID ACTS AS MAY BE SPECIFICALLY AUTHORIZED ANNUALLY IN APPROPRIATION ACTS, FOR CREDITING TO THE RAILROAD RETIREMENT ACCOUNT, AN AMOUNT EQUAL TO AMOUNTS COVERED INTO THE TREASURY (MINUS REFUNDS) DURING EACH FISCAL YEAR UNDER THE RAILROAD RETIREMENT TAX ACT * * *.'

THE FOREGOING APPROPRIATION LANGUAGE AUTHORIZES AN AMOUNT EQUAL TO AMOUNTS COVERED INTO THE TREASURY (MINUS REFUNDS) DURING EACH FISCAL YEAR. UNDER THE PROCEDURE AS NOW PROPOSED THE GROSS AMOUNT OF THE TAX WILL BE APPROPRIATED EACH MONTH AND A DEDUCTION FOR REFUNDS PROCESSED ON A SEPARATE MONTHLY STANDARD FORM 1081. WITH THE UNDERSTANDING THAT THERE WILL BE NO CHANGE IN TIMING OF TRANSACTIONS MAKING FUNDS AVAILABLE TO THE TRUST ACCOUNTS, AND SUBJECT TO THE ESTABLISHMENT OF ADEQUATE ACCOUNTING CONTROLS TO ASSURE THAT UNDER THE NEW PROCEDURE FUNDS MADE AVAILABLE TO THE RAILROAD RETIREMENT ACCOUNT EACH FISCAL YEAR DO NOT EXCEED THE STATUTORY AUTHORIZATION, WE HAVE NO LEGAL OBJECTION TO ADOPTION OF THE PROPOSAL.