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B-200951 1 (1981-07-02)

handle is hein.gao/gaobabkcc0001 and id is 1 raw text is: 4, COMPTROLLER GENERAL OF THE UNITED STATES ',§~ .. ; WASHINGTON D.C. =048 B-200951 July 2, 1981 The Honorable Pete V. Domenici Chairman, Committee on the Budget United States Senate Dear Mr. Domenici: The proposed amendment to Section 108 of the National Consumer Cooperative Bank Act, as stated in S.1377, to allow the National Consumer Cooperative Bank (Bank) to spend funds equivalent to the cost of terminating operations, contains language that would re- quire the General Accounting Office (GAO) to perform functions that are incompatible with its independent auditor status. We believe these functions would be better performed by the executive branch. S.1197 was passed by the Senate on June 3, 1981, and includes the statement: . . . the Bank may pay out of such amounts its operating expenses in an amount each year not to exceed that amount determined by the Comptroller General of the United States to be necessary for that year, but the total amount of such ex- penses shall not exceed the cost which would have been incurred if the Bank were terminated during fiscal year 1981 and its functions transferred to the Secretary of the Treasury. S.1377 proposes the same amendment. This would require the Comptroller General to establish budgetary amounts that are generally the province of the Administration. The Comptroller General's participation in executive decisions as proposed in this amendment would create a conflict of duties because of GAO's responsibilities to review and evaluate the Bank's policies and programs and, under the Government Corporation Control Act (31 U.S.C. 857), to audit the Bank's financial statements. I We have consistently opposed legislation giving us executive authority or related functions because of our responsibility to evaluate how those functions are carried out. We are concerned that if this amendment is enacted as proposed, future GAO work concerning the National Consumer Cooperative Bank might not be regarded as independent and objective, despite our effort to ensure indepen- dence and objectivity. The resulting loss in our credibility would leave the Congress without an objective source of reviews, audits, and evaluations on which it could rely. If the proposed amendment is retained when S.1377 comes to conference, we believe that the Congress would be better served if the amendment were 70 / ~ -4 A 4 O /ip? t te.f-, j7 4:6>/ - /

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