At this point I will insert in the record, without objection, the biography of Mr. Keller and an outline of the functions of the General Accounting Office.

(The documents follow:)

BIOGRAPHY OF ROBERT F. KELLER

Robert F. Keller has been General Counsel for the United States General Accounting Office since October 1958, and is responsible for all legal work of the General Accounting Office including the development and formulation of its legislative program and the legislative liaison work of the Office. Mr. Keller has a staff of 201 of which 108 are attorneys.

Except when he entered the Navy in 1942 as Ensign and released from active duty in 1945 as Lieutenant, he has worked continuously in the General Accounting Office in positions of increasing responsibility.

He started in the General Accounting Office in 1935 as a clerk and rose to the position of a Principle Claims Reviewer before he entered active duty with the Navy.

Upon returning from military service he was selected to work in the Office of the Comptroller General as a Legislative Attorney. His duties included analyzing and reviewing legislation, preparing and presenting comments on legislation, conferring with members of Congress and officials of various Government agencies, and testifying before congressional committees.

In 1950 he was appointed an Assistant to the Comptroller General and in this position participated in the formulation, development, and execution of the legislative programs of the General Acounting Office including directing the legislative liaison activities of the Office. In 1953 he was promoted to Principal Assistant to the Comptroller General in which position he acted as personal advisor to the Comptroller General on policy matters in all fields of operation of the General Accounting Office, with particular reference to matters affecting the relationship of the Office with Congress, other Government agencies, and the public.

Mr. Keller is a member of the American Bar Association and is a Member of the Council of the Section of Public Contract Law. He also belongs to the Federal Bar Association and served during 1964-1965 as Vice Chairman, General Counsels' Committee of that Association. He is a member of the Board of Advisors of the National Contract Management Association.

After attending George Washington University he received an LLB degree in 1937 from the Washington College of Law (American University), and a BCS degree (Accounting) in 1952 from Benjamin Franklin University. In 1961 he completed the Management Course of the American Management Association.

In 1965 Mr. Keller received the Rockefeller Public Service Award in the field of law, legislation and regulation. In 1946 he received a commendation from the Secretary of the Navy for outstanding performance of duties as an officer of the Navy during World War II.

Mr. Keller was admitted to the Bar of the District of Columbia in 1936, and admitted to practice before the District Court of the United States for the District of Columbia and the United States Court of Appeals for the District of Columbia. Mr. Keller was born in Washington, D.C., August 22, 1913, and was married in 1939. He has two children.

FUNCTIONS OF THE GENERAL ACCOUNTING OFFICE

THE OFFICE OF COMPTROLLEr General anD THE ASSISTANT COMPTROLLER General The Comptroller General is the principal officer of the General Accounting Office, which was created as an arm or agent of the Congress. The Comptroller General is thus directly responsible to the Congress. The Assistant Comptroller General performs such duties as may be assigned to him by the Comptroller General, and during the absence or incapacity of the Comptroller General, or during a vacancy in the Office, shall act as Comptroller General.

The Comptroller General and the Assistant Comptroller General are appointed by the President with the advice and consent of the Senate. The law provides that these officers shall hold office for 15 years, and shall be subject to removal only by joint resolution of the Congress for specified causes or by impeachment. The Comptroller General is not eligible for reappointment.

THE GENERAL ACCOUNTING OFFICE

The General Accounting Office is under the direction and control of the Comptroller General of the United States.

The GAO is a nonpolitical, nonpartisan agency in the legislative branch of the Government created by the Congress to act in its behalf in examining the manner in which Government agencies discharge their financial responsibilities with regard to public funds appropriated or otherwise made available to them by the Congress and to make recommendations looking to greater economy and efficiency in public expenditures.

The Office was created by the Budget and Accounting Act, 1921, and placed under the direction and control of the Comptroller General of the United States, which Office also was established by the 1921 act. The act transferred audit responsibility from the Treasury Department in the executive branch to the General Accounting Office, which was declared by the act to be independent of the executive departments. The General Accounting Office was vested with all the powers and duties formerly prescribed by the Dockery Act of July 31, 1894, for the six auditors and the Comptroller of the Treasury and by other statutes extending back to the creation of the Treasury Department by the act of September 2, 1789. In addition, the 1921 act broadened the scope and objectives of the audit work. It requires the Comptroller General to investigate all matters relating to the receipt, disbursement, and application of public funds and to make recommendations looking to greater economy or efficiency in public expenditures; to make such investigations and reports as shall be ordered by either House of Congress or by a committee of either House having jurisdiction over revenue, appropriations, or expenditures; and, at the request of any such committee, to direct assistants from the General Accounting Office to furnish the committee such aid and information as it may request.

One of the purposes of the 1921 act was to provide for an independent audit of Government accounts. The need for an audit to be made by "an establishment of the Government independent of the executive departments," the term applied to the General Accounting Office in the 1921 act, is clearly expressed in the following excerpts from the legislative history of the act.

"The creation of an independent auditing department will produce a wonderful change. The officers and employees of this department will at all times be going into the separate departments in the examination of their accounts. They will discover the very facts that Congress ought to be in possession of and can fearlessly and without fear of removal present these facts to Congress and its committees. The independent audit will, therefore *** serve to inform Congress at all times as to the actual conditions surrounding the expenditure of publie funds in every department of the Government."

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"It was the intention of the committee that the Comptroller General should be something more than a bookkeeper or accountant; that he should be a real critic, and at all times should come to Congress, no matter what the political complexion of Congress or the Executive might be, and point out inefficiency

"The bill then provides for the appointment of an official termed the "Comptroller General," whose duty it is to follow every appropriation made by Congress and see that the money is properly spent. This will be of invaluable service to Congress, as this official, being entirely independent of every other branch of the Government, is directly responsible to Congress."

The Comptroller General and the General Accounting Office were declared to be part of the legislative branch of the Government by the Reorganization Act of 1945 (59 Stat. 616), and the Reorganization Act of 1949 (5 U.S.C. 133z-5). The Comptroller General was specifically designated an agent of the Congress by the Accounting and Auditing Act of 1950 (31 U.S.C. 65).

Authority and responsibility is also placed on the Office by many laws in addition to the 1921 act, such as the Government Corporation Control Act of 1945, the Legislative Reorganization Act of 1946, the Federal Property and Administrative Services Act of 1949, the Post Office Department Financial Control Act of 1950, and the Accounting and Auditing Act of 1950.

LIAISON WITH THE CONGRESS

Members of the staff of the Office of Legislative Liaison of the General Accounting Office are in constant contact with the committees of Congress and their staffs and with the Members of the Congress to confer with them and to supply such

information as they may require in connection with the several hundred audit, investigative, and legislative reports submitted by the Comptroller General each year to the Congress or to its committees, Members, and officers.

This staff also arranges for furnishing the various types of special assistance requested by the committees or Members of Congress. This includes arranging with the responsible operating divisions and offices for special audits, surveys, and investigations; for the assignment of personnel to assist congressional committees; and for the appearance of witnesses to testify before congressional committees on the subject matter of the audit and investigative reports, on legislative recommendations contained in the reports, or on bills before the committees for consideration.

PURPOSE

As an agency in the legislative branch, the General Accounting Office was created to assist the Congress in providing legislative control over the receipt, disbursement, and application of public funds. Its principal functions are in the fields of auditing, accounting, claims settlement, legal decisions, special assistance to the Congress, and records management and services.

AUDITING

The General Accounting Office performs an independent audit of receipts, expenditures, and use of public funds by departments and agencies of the Federal Government, and audits the records of certain Government contractors and their subcontractors and of certain recipients of Federal financial assistance such as loans, advances, grants, or contributions.

The primary purpose of audits by the General Accounting Office is to make for the Congress independent examinations of the manner in which Government agencies are discharging their financial responsibilities. Financial responsibilities of Government agencies are construed as including the administration of funds and the utilization of property and personnel only for authorized programs, activities, or purposes, and the conduct of programs or activities in an effective, efficient, and economical manner.

To carry out these functions, the Comptroller General or his authorized representatives are authorized by law to have access to and examine any books, documents, papers, or records except those pertaining to certain funds for purpose of intercourse or treaty with foreign nations-of any department or establishment.

Implicit in the audit responsibilities is a responsibility to report to the Congress information obtained in the audits. In addition, section 312(a) of the 1921 act requires the Comptroller General to submit to the Congress an annual report of the work of the General Accounting Office. In this report, or in special reports to the Congress, he is to make recommendations looking to greater economy or efficiency in public expenditures.

Accounting. The Comptroller General is responsible for prescribing principles, standards, and related requirements for accounting by the executive agencies. The agencies are responsible for establishing and maintaining the accounting systems, but these are to conform with the prescribed principles, standards, and related requirements.

The General Accounting Office cooperates with the agencies in the development of their accounting systems, reviews the systems from time to time, and approves them when deemed to be adequate and in conformity with the requirements of the Comptroller General.

Also the Comptroller General, the Secretary of the Treasury, the Director of the Bureau of the Budget, and the Chairman of the U.S. Civil Service Commission conduct a continuous program for the improvement of accounting and financial reporting. The other Government agencies also participate in this joint financial management improvement program.

Settlement of accounts and claims.-The General Accounting Office has responsibility for settling the accounts of disbursing and collecting officers who are accountable for public funds and for making settlements with certifying officers when there are improper certifications on vouchers. The Office also settles claims (1) against the United States as required by law or where doubt of legal entitlement exists, (2) by the United States where efforts by the responsible agencies have not been successful. GAO also reviews private cases where indivduals may be dissatisfied with rulings or decisions of the executive departments or agencies. Such reviews may be obtained on the individuals own initiative without the use of legal counsel.

The balances certified by the Comptroller General are final and conclusive upon the executive branch. However, the Comptroller General may review any settled account or claim either on his own motion or at the request of an interested party.

Debt collection. The responsibility for collecting debts stems from the provision in 31 U.S.C. 71 that all claims and demands by the Government of the United States shall be settled and adjusted in the General Accounting Office and from 31 U.S.C. 93 which provides that the General Accounting Office shall superintend the recovery of all debts finally certified by it to be due to the United States.

Decisions of the Comptroller General.-The Comptroller General is required by law to render decisions as to the legality of expenditures of public funds to heads of executive departments or independent agencies, or disbursing or certifying officers who are authorized to apply for a decision upon any question involving a payment to be made by or under them or pursuant to their certification. In addition, many legal questions arise in the audit and settlement work of the General Accounting Office which requires determination.

Under certain circumstances, contracting officers may request advance decisions on questions involving the awarding of a contract. Also, any bidder may request a decision on the legality of a proposed or actual award of a contract adversely affecting him.

By law, the decisions of the Comptroller General are final and conclusive on the executive branch of the Government and establish the validity of the individual payments and, in some instances, the legality of entire programs.

Special assistance to the Congress.-In addition to the work which it initiates, the General Accounting Office makes many special audits, surveys, and investigations at the specific request of congressional committees, as required by law. Special audits, surveys, and investigations are also made and information, often relating to the legality of specific transactions or to their conformance with existing regulations, is furnished at the request of Members of Congress.

General Accounting Office representatives may be assigned to assist specified committees at their request and are called upon frequently to testify before congressional committees on various matters. Another service to the Congress consists of furnishing comments on proposed legislation.

Rules, regulations, and decisions.-The Comptroller General makes such rules and regulations as deemed necessary for carrying on the work of the General Accounting Office, including those for the admission of attorneys to practice before it. Under the seal of the Office, he furnishes copies of records from books and proceedings thereof, for use as evidence in accordance with the act of June 25, 1948 (62 Stat. 946; 28 U.S.C. 1733).

The General Accounting Office "Policy and Procedures Manual for Guidance of Federal Agencies" is the official medium through which the Comptroller General promulgates (1) principles, standards, and related requirements for accounting to be observed by the Federal departments and agencies, (2) uniform procedures for use by the Federal agencies, and (3) regulations governing the relationship of the General Accounting Office with other Federal agencies and with individuals and private concerns doing business with the Government.

SUMMARY OF ACTIVITIES OF THE GENERAL ACCOUNTING OFFICE

Following is a summary of the activities of the General Accounting Office which appears in its most recent annual report to the Congress (covering fiscal year ending June 30, 1968):

AUDIT REPORTS ISSUED

As a result of its audit work in the departments, agencies, commissions, and corporations of the Federal Government in Washington, throughout the United States, and in Western Europe, Africa, Latin America, and the Near and Far East, the General Accounting Office during fiscal year 1968 issued 1,153 reports: 157 to the Congress; 231 to congressional committees, officers of the Congress, or individual Members; 765 to officials of departments and agencies.

These covered virtually every activity of the Government. As examples

In the International Area, GAO

Issued a comprehensive report to the Congress on the U.S. Commercial Import Program in Vietnam, a program with obligations totaling $397 million in fiscal year 1966.

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Reported that the United States lost about $2.2 billion in its balance-ofpayments deficit through devaluation and other changes in the value of foreign currencies and outlined areas in Government operations where balance-ofpayments advantages may be possible.

Reviewed U.S. economic development programs in Colombia and India, reporting a need for better planning and supervision; and issued a report on overall U.S. economic assistance to Chile, providing a broader perspective of U.S. foreign assistance as it relates to this country than has been available heretofore.

In Department of Defense Operations, GAO

Found a need for the Department of Defense to improve its system of controls over Government-owned facilities, special tooling, and material in the possession of private contractors, a report that led to further inquiry by the Joint Economic Committee.

Reviewed the U.S. Army Tank-Automotive Command's system of financial management, as a result of which the Comptroller of the Army, in coordination with the Army Chief of Staff, directed that a further study be conducted, a study that resulted in a series of recommendations for improvements in other Army commodity commands.

Found a need for the Office of Civil Defense, Department of the Army, to exercise more effective control over contractors engaged to make independent research studies so as to provide greater assurance that the reports obtained are truly useful.

In the Area of Civil Operations in the United States, GAO

Made a series of reports on Government operations in connection with the "war on poverty." These included reviews of the Community Action Programs (Office of Economic Opportunity) in Los Angeles, Chicago and Detroit, and the Neighborhood Youth Corps Program (Department of Labor) in Cleveland.

Proposed fundamental changes in the management and operations of the U.S. Post Office, suggesting that mail be collected for processing and distribution through 550 sectional centers rather than at more than 33,000 independent post offices in 50 States, as is done at present.

Analyzed and reported on the reasons for the escalation in estimated cost (from $46.7 million to $127.1 million) and time of completion (from 5 to 81⁄2 years) of Project Mohole, the project to drill through the earth's outermost crust.

These were among the more important reports issued by GAO this year.

Of this year's reports, 73 reviewed particular U.S. international activities— 21 relating to programs and activities being conducted in Vietnam. The majority of the latter were in response to requests from congressional committees or individual Members of the Congress, and are discussed more fully in Chapter Six.

A total of 554 reports related to activities of the Department of Defense. Principal defense areas where GAO findings showed a need for improvement in management controls involved supplies, procurement programs, administration of military and civilian pay and allowances and utilization of manpower, and administration of transportation matters.

Special reports were made on procurement of F-111 aircraft, and acquisition and installation of new automatic data processing equipment for use in computerized management systems, and a number of other matters, at the request of committees of the Congress and individual Members. See Chapter Five.

A total of 511 reports were issued on reviews of the activities of civil departments and agencies of the executive branch and in the legislative and judicial branches. Ninety-four of these reports were submitted to the Congress as a whole and 120 were submitted to its committees, officers, or Members on reviews made in response to their specific requests. In addition, 297 reports were made to agency officials.

EXPENSES AND STAFFING

GAO operating expenses for fiscal year 1968 amounted to $53.5 million. Over 89 percent of this amount-$47.8 million-was required to pay salaries and other personnel costs. The staff at June 30 totaled 4,310, a net increase of 94 over 1967. During the past 10 years, GAO staff has been reduced by 1,079-over 20 percent-but the professional accounting and auditing staff has increased by 678 to 2,450.