Comments on S. 1792

Comments were requested from GAO on S. 1792 which would provide a uniform 3-year limit on the time that any agency could require a person to retain records. While GAO believes that reducing records retention requirements is a desirable goal, GAO does not believe that imposing a single maximum retention period is a desirable way to achieve the goal. Should Congress decide that a uniform retention period for all federally mandated recordkeeping is desirable, GAO must recommend several changes to S. 1792. The bill does not adequately define what is meant by a transaction or event. Therefore, it could seriously curtail the postaward audit capabilities of GAO and agency audit efforts, especially with contracts of long duration. Records are needed for the entire period of a contract for audit purposes. Currently, GAO has access to contractors' records for 3 years from the date of final payment under a contract, and it favors the continuation of this authority. S. 1792 could also severely impact on the administration of Medicare and Medicaid programs which require the retention of accurate cost records. GAO recommended that records relating to government contracts, grants, loans, or other mechanisms for transferring funds or benefits be exempted from the provisions of the bill. The bill would conflict with existing 5-year limitations on the bringing of actions by the government. Additionally, the bill would limit the effectiveness of laws dealing with the protection of health and the environment. While it permits the keeping of records which could be used in criminal proceedings and actions for damages, the records could not be used in proceedings for collections of fines, penalties, or forfeitures which relate to actions more than 3 years old. The bill could result in shifting recordkeeping requirements from the public to the Government. If the bill were enacted, agencies might require that private pension plans furnish records to the Government. Thus, present recordkeeping requirements could become reporting requirements and result in increased Federal records storage. Estimating the paperwork and regulatory impact of the bill would require a program-by-program analysis and consideration of similar requirements imposed by other levels of government. Agency recordkeeping reports submitted to the Office of Management and Budget could provide a basis for measuring the potential impact of S. 1792.