B-169300 September 21, 1971
Highlights
Chairman: As your are aware of the Emergency Loan Guarantee Act. Requires the General Accounting Office to make a detailed audit of any borrower with respect to which a loan guarantee is made. A meeting to initiate our review was held on September 16. As you know the authority and responsibility of the GAO for making audits and investigations of Government agencies are stated in a number of laws inculding the Budget and Accounting Act. It further provides that the Comptroller General shall have access to any books. In view of the fact that Lockheed has already received a substantial amount of the guaranteed loan and is likely to receive additional amounts in the near future. We are anxious to begin our work as soon as possible.
B-169300 September 21, 1971
The Honorable John B. Connally, Jr. Chairman Emergency Loan Guarantee Board
Dear Mr. Chairman:
As your are aware of the Emergency Loan Guarantee Act, Public Law 92-70, requires the General Accounting Office to make a detailed audit of any borrower with respect to which a loan guarantee is made.
In this connection, a meeting to initiate our review was held on September 16, 1971, between representatives of our Office and Mr. Tim Greene, Secretary of the Emergency Loan Guarantee Board.
The discussion centered on three areas; decisions of the Board in approving, executing, and administering any guaranteed loans; the provisions of the guaranteed loan agreements established between the Board and the borrower; and the audit of the borrower. Mr. Green had some question concerning our authority and responsibility for review of Board decisions.
As you know the authority and responsibility of the GAO for making audits and investigations of Government agencies are stated in a number of laws inculding the Budget and Accounting Act, 1921, the Legislative Reorganization Act, 1946; and the Accounting and Auditing Act of 1950. For example, Section 312 of the Budget and Accounting Act requires the Comptroller General to examine all matters relating to the receipt, disbursement or application of public funds and report to the Congress the results of such examinations. Section 313 of the same Act states that all departments and establishements shall furnish information as may be required of them by the Comptroller General. It further provides that the Comptroller General shall have access to any books, documents, papers or records of such department or establishment to include boards such as the Emergency Loan Guarantee Board.
In view of the fact that Lockheed has already received a substantial amount of the guaranteed loan and is likely to receive additional amounts in the near future, we are anxious to begin our work as soon as possible. We would appreciate advice as to when the records of the Board can be made available for review.
Sincerely yours,
ELMER B. STAATS Comptroller General of the United States