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ACG-76-5 1 (1975-08-12)

handle is hein.gao/gaobaaaxs0001 and id is 1 raw text is: 0 COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 August 12, 1975 B-115398 LM096856 Speaker of the House President of the Senate We were furnished copies of deferrals and proposed rescissions which the President submitted to the Congress on July 26 in his second special message for fiscal year 1976 pursuant to the Impoundment Control Act of 1974. The special message transmits five rescission proposals, 23 new deferrals, and two revised deferrals. The President estimates that the new impoundments will reduce fiscal year 1976 outlays by $67.2 million. Enclosure I summarizes, by agency, the total budget authority and FY 1976 outlay reductions involved in the new messages. The Impoundment Control Act requires us to review each message and report promptly to the House and Senate as to the facts surrounding each action, including the probable effect thereof and, in the case of defer- rals, to render a judgment as to whether the action is in accordance with existing legal authority. We are also required to notify the Congress if supplementary information revising earlier messages necessitates changes in the original reports submitted by us. Enclosure II contains our comments on each impoundment transmitted by the President's July 26 special message. Most of the deferrals in- volve continuing resolution budget authority provided by Public Law 94-41, which expires at the end of the calendar year rather than at the end of the quarter, as in the past. The manner used by OMB to report these impound- ments, however, does not provide a timely and complete statement of the impoundment action concerning the total budget authority involved. The continuing resolution impoundments involve the first quarter of the year rather than the period the budget authority is available (six months in most cases). The primary reason given for reporting only one quarter's deferral is the contingency caused by the uncertain status of applicable appropriation acts; i.e., how much should be impounded and what form should the impoundment take. The purpose of the continuing resolution is to provide budget authority during this period of uncer- tainty required by the appropriation review process. In this instance Congress provided it for six months rather than one quarter as in the past. We believe, therefore, that these impoundments should have been reported for the time period the budget authority was provided by the continuing resolution. If actions occur during the appropriation review ACG-76-5

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