140 OCEANOGRAPHY 1961 — PHASE 3 



Comptroller General op the United States, 



Washington, March 28, 1961. 

 Hon. Herbert C. Bonner, 



Chairman, Committee on Merchant Marine and Fisheries, 

 House of Representatives 



Dear Mr. Chairman : Your letter of February 15, 1961, requests our comments 

 on H.R. 4276. The purpose of the bill is to expand and develop the aquatic re- 

 sources of the United States and the bill would establish a National Oceanog- 

 raphic Council. 



We have no special information concerning the subject matter of the bill and, 

 therefore, we make no recommendation with respect to its enactment. However, 

 concerning section 10 of the bill under existing law (31 U.S.C. 67 and 72) we 

 have the authority to initially audit all expenditures from the Treasury except 

 where otherwise specifically provided by law. Also, under existing law we have 

 the right to examine the books and records of certain Government contractors. 

 See for example Public Law 245, 82d Congress, 65 Stat. 700. The provisions of 

 section 10 would appear to have the effect of restricting this existing authority 

 in the case of expenditures of $50,000 or less. We do not feel our existing au- 

 thority should be so restricted. Further, in view of the increase in grant pro- 

 grams over the last several years we feel that in order to determine whether 

 grant funds have been expended for the purpose which the grant was made the 

 grantee should be required to keep records which would fully disclose the disposi- 

 tion of such funds. We also feel that the agency making the grant as well as the 

 General Accounting Office should be permitted to have access to the grantee's 

 records for the purpose of audit and examination. Consistent with the foregoing, 

 we suggest that section 10 be changed to read as follows : 



" (a) Each recipient of assistance under section 9(a) (3) of this Act shall keep 

 such records as the Secretary of the Smithsonian Institution shall prescribe, in- 

 cluding records which fully disclose the amount and the disposition by such 

 recipient of the proceeds of such assistance, the total cost of the project or under- 

 taking in connection with which such assistance is given or used, and the amount 

 and nature of that portion of the cost of the project or undertaking supplied by 

 other resources, and such other records as will facilitate an effective audit. 



"(b) The Secretary of the Smithsonian Institution and the Comptroller Gen- 

 eral of the United States, or any of their duly authorized representatives, shall 

 have access for the purpose of audit and examination to any books, documents, 

 papers, and records of the recipient that are pertinent to assistance received 

 under section 9(a) (3) of this Act." 



In administering the above provision we do not contemplate making a detailed 

 examination of the books and records of every recipient of a grant, or even a 

 major part of them. However, selective checks may be made to provide reason- 

 able assurance that grant funds are being properly applied or expended. 

 Sincerely yours, 



Joseph Campbell, 

 Comptroller General of the United States. 



Department of Health, Education, and Welfare, 



June 26, 1961. 

 Hon. Herbert C. Bonner, 



Chairman, Committee on Merchant Marine and Fisheries, 

 House of Representatives, Washington, D.C. 



Dear Mr. Chairman : This letter is in response to your request of February 

 15, 1961, for a report on H.R. 4276, a bill to expand and develop the aquatic re- 

 sources of the United States including the oceans, estuaries, and rivers, the 

 Great Lakes and otlier inland waters, to enhance the general welfare, and for 

 other purposes. 



The bill would establish the National Oceanographic Council, composed of the 

 Secretaries of the Treasury, Defense, Interior, Commerce, and the Chairman of 

 the Atomic Energy Commission, and the Director of the National Science 

 Foundation, among whom the President is to appoint the Chairman : direct the 

 Council to establish a National Oceanographic Data Center or centers, and a 

 National Instrumentation Test and Calibration Center ; and assign their func- 

 tions. The Council is directed to develop long-range plans for research, devel- 

 opment, studies, and surveys of aquatic environment and to coordinate the efforts 



