< Back to H.R. 11009 (94th Congress, 1975–1976)

Text of A bill to provide for an independent audit of the financial condition of the government of the District of Columbia.

...District of Columbia.

This bill was enacted after being signed by the President on September 4, 1976. The text of the bill below is as of Sep 4, 1976 (Passed Congress/Enrolled Bill).

PUBLIC LAW 94-399—SEPT. 4, 1976                                     90 STAT. 1205

Public Law 94-399
94th Congress
                                   An Act
To provide for an independent audit of the financial condition of tlie government      Sept. 4, 1976
                         of tlie District of Columbia.                                 [H.R. 11009]

   Be it enacted hy the Senate and House of Representatives of the
United States of Ainerica in Congress assembled^ That there is hereby                D.C. Government
established the Temporary Commission on Financial Oversight of the                   financial con-
District of Columbia (hereinafter referred to as the "commission").                  dition, audit.
                                                                                     D.C. Code
   (b) The commission shall consist of eight members as follows:                     47-101 note.
        (1) three Members of the Senate appointed by the President                   Temporary
     of the Senate (or any designee of any such Member so appointed,                 Commission on
     which designee shall act for such Member in his stead);                         Financial
        (2) three Members of the House of Representatives appointed                  Oversight of the
     by the Speaker of the House of Representatives (or any designee                 District of
     of any such Member so appointed, which designee shall act for                   Columbia.
                                                                                     Establishment.
     such Member in his stead) ;                                                     Membership.
        (3) the Mayor of the District of Columbia (or any designee
     of the Mayor, which designee shall act for the Mayor in his stead);
     and
        (4) the Chairman of the Council of the District of Columbia
      (or any designee of the Chairman, which designee shall act for
     the Chairman in his stead).
   (c) Five members of the commission shall constitute a quorum.                     Quorum.
   (d) (1) A chairman and vice chairman of the commission shall be
selected by a majority vote of the full commission from among the
members thereof. The vice chairman shall act in the place and stead
of the chairman in the absence of the chairman.
   (2) The commission is authorized to establish such operating pro-
cedures as it determines necessary to enable it to carry out its functions
under this Act.
   (e) The first meeting of the commission shall be called by the
majority leader of the Senate and the Speaker of the House of Rep-
resentatives, jointly.
   (f) The commission is authorized to utilize the personnel of the                  Personnel,
government of the District of Columbia, with the approval of the                     utilization.
Mayor, or the Chairman of the Council of the District of Columbia,
as the case may be, and the Committee on the District of Columbia
of the Senate, the Committee on the District of Columbia of the
House of Representatives, the Committee on Appropriations of the
Senate, or the Committee on Appropriations of the House of Repre-
sentatives, with the approval of the chairman of such committee. The                 GAO services and
commission is authorized to utilize, on a reimbursable basis, the serv-              personnel,
ices and personnel of the General Accounting Office to assist the com-               utilization.
mission in carrying out its functions under this Act.
   SEC. 2. (a) For the purpose of meeting the responsibilities imposed               Functions.
by the Constitution on the Congress with respect to the District of                  D.C. Code
Columbia, it shall be the function of the commission, after consulta-                47-101 note,
tion with the Comptroller General, to select such qualified persons                  u s e prec. title 1.
as the commission may determine necessary for the development of
certain plans on behalf of the government of the District of Columbia
 (including assistance in the implementation thereof) for the purpose

9 0 STAT. 1206 PUBLIC LAW 9 4 - 3 9 9 — S E P T . 4, 1976 of improving the financial planning, reporting, and control systems of such government. Plans to be considered for development and implementation pursuant to this Act shall include, among others, plans for the following: immediate improvement in financial control and reporting; assessing the scope of further necessary improvements; financial management system improvements; personnel-payroll system improvements; water-sewage billing and information system improve- ments; purchasing and material management system improvements; property accounting system improvements; real property system improvements; welfare payments system improvements; human resources eligibility, payment, and reporting system improvements; health care financial system improvements; and traffic ticket system control improvements. System (b) Each contract entered into with a person pursuant to subsec- improvements tion (c) of this section for the development of a system improve- plan, contracts. ments plan shall contain a provision requiring that person to include within such plan procedures for the establishment of an ongoing training program for operating personnel of the government of the District of Columbia whose duties involve matters covered by such plan or part thereof in order to provide training for such personnel in connection with the operation of such system. Each such contract shall further contain provisions comparable to those provided by Standard Form 32, section 1-16.901-32 of title 41, Code of Federal Regulations. (c) Upon the selection by the commission of each qualified person to develop and implement a plan pursuant to this section, the chair- man of the commission shall enter into a negotiated fixed price contract or contracts with that person for the development and imple- mentation of such plan. (d) (1) Each such contract so entered into shall set forth the scope of the work to be performed, amounts to be paid thereunder, and a schedule of reporting and completion dates, including a schedule of implementation dates, for each portion of such work. Each contractor shall have full access to such books, individuals, accounts, financial records, reports, files, and other papers, things, or property of the government of the District of Columbia as such contractor deems necessary to complete such contract. The Comptroller General shall have full access to all documents produced under each contract. Reports to (2) After establishment of the schedule for completing each such commission and contract and until the completion of such contract, each contractor Comptroller shall report, at such time as such contract shall provide, to the com- General. mission and the Comptroller General on the progress toward comple- tion of such contract, except that each such contractor shall report at least once during the one-hundred-and-eighty-day period after establishment of such schedule for completion of such contract. System design (e) (1) With respect to any such contract or part thereof involving plan. the design (including a preliminary design) of a S3^stem referred to in subsection (a) of this section, the contractor, upon the completion of the plan or part relating to such design (including procedures for its implementation), shall submit such plan or part, together with a schedule for its implementation, to the Comptroller General. (2) With respect to any such contract involving work other than the design of such a system, the contractor, upon the completion of the plan or part thereof relating to such work, shall submit such plan or part thereof, together with a schedule for implementing such plan or part, to the Comptroller General.
PUBLIC LAW 94-399—SEPT. 4, 1976 90 STAT. 1207 (3) Notwithstanding the foregoing provisions of paragraphs (1) and (2) of this subsection, in no case shall any contractor under this Act submit a plan, part, or schedule to the Comptroller General unless such plan, part, or schedule has first been submitted by that contractor to the contractor responsible for the development and implementation of a financial management system improvements plan for such con- tractor's review, comments, and recommendations. A copy of such comments and recommendations, if any, shall be submitted, together with such plan, part, or schedule, to the Comptroller General in accord- ance with paragraphs (1) and (2) of this subsection. (4) Within the sixty-day period following the date of the receipt Approval. by him of such plan or part thereof, and after consultation with the commission, the Comptroller General shall approve, disapprove, or modify such plan or part (including any schedule for the implementa- tion thereof), in whole or in part. On or before the expiration of such Plan, submittal to sixty-day period, the Comptroller General shall submit such plan or Congress. part, as so approved, modified, or disapproved to the Congress for its consideration, together with his reasons for such modification or disapproval. (f) (1) Each such plan or part thereof so approved by the Comp- troller General without modification shall be deemed on the date of such approval, to be a part of the financial planning, reporting, accounting, control, and operating procedures of the government of the District of Columbia. Each such plan or part thereof modified by the Comptroller General shall, upon the expiration of the forty-five- day period of continuous session of the Congress following the date on which such modified plan or part thereof is so submitted to the Congress, be deemed to be a part of the financial planning, reporting, accounting, control, and operating procedures of the government of the District of Columbia, unless within such forty-five-day period, the Congress adopts a concurrent resolution disapproving the action of the Comptroller General with respect to such modifications. In any case in which any such concurrent resolution is so adopted by the Congress, such plan or part thereof, as it existed immediately prior to any such modification, shall be deemed a part of such procedures as of the date of the adoption by Congress of such concurrent resolution. No such plan or part thereof disapproved by the Comptroller General shall take effect, unless, within such forty-five-day period following the date of its submission to the Congress, the Congress adopts a concurrent resolution disapproving the action of the Comptroller Gen- eral in disapproving such plan or part thereof. If such action of the Comptroller General is so disapproved, such plan or part thereof shall be deemed a part of such procedures as of the date of the adoption by Congress of such concurrent resolution. (2) For purposes of this section, the continuity of a session of Congress is broken only by an adjournment of the Congress sine die, and the days on which either House is not in session because of an adjournment of more than three days to a day certain are excluded in computation of such forty-five-day period. (g) With respect to any such plan or part so deemed to be a part Plan imple- of the financial planning, reporting, accounting, control, and operat- mentation. ing procedures of the government of the District of Columbia under subsection (f) (1), the Mayor of the District of Columbia, with the assistance of the contractor responsible for such plan or part, shall implement such plan or part for the government of the District of Columbia in accordance therewith. The Comptroller General shall
90 STAT. 1208 PUBLIC LAW 94-399—SEPT. 4, 1976 monitor such implementation and report as he deems appropriate to the commission. Balance sheet SEC. 3. (a) (1) For the purpose of meeting the oversight responsi- audit. bilities imposed by the Constitution on the Congress with respect to D.C. Code the District of Columbia, the Congress hereby authorizes the com- 47-101 note, use prec. title 1. mission, in accordance with the provisions of paragraph (2) of this subsection, to cause to be undertaken, on behalf of the government of the District of Columbia, by a certified public accountant licensed in the District of Columbia, a balance sheet audit of the financial position of the District of Columbia as of September 30, 1977. Such audit may— (A) include an identification of assets, liabilities, accumulated surplus or deficit; and (B) exclude statements of revenues and expenses, changes in fund balances, statements of changes in financial position for enterprise funds, and property and equipment. Notification. (2) The balance sheet audit authorized by paragraph (1) of this subsection shall cover the financial position of the District of Colum- bia as of September 30, 1977, unless the commission, on or before August 1, 1977, is notified by the Comptroller General to the effect that such an audit as of that date is not practicable, in which case the commission is authorized to cause to be undertaken a balance sheet audit of the financial position of the District of Columbia as of such date as the Comptroller General shall recommend to the commission. Audit. (b) The commission is further authorized to cause to be under- taken, on behalf of the government of the District of Columbia, by a certified public accountant licensed in the District of Columbia, an audit or audits of the financial position and results of operations of the District of Columbia for each fiscal year or years next following September 30, 1977, or the date recommended \>y the Comptroller General for the conduct of a balance sheet audit pursuant to subsec- tion (a) of this section, whichever last occurs, and which precede the fiscal year commencing October 1,1979. (c) Upon the selection by the commission of each qualified person to conduct an audit pursuant to this section, the chairman of the commission shall enter into a negotiated fixed price contract with that person for that purpose. Each such audit shall be carried out in accordance with generally accepted auditing standards and the finan- cial statements shall be prepared in accordance with generally accepted Audit results, accounting principles. The results of each such audit shall be sub- submittal to mitted to the Congress, the President of the United States, the Council Congress, of the District of Columbia, the Mayor of the District of Columbia, President, and the Comptroller General. Council of the District of (d) Such contractor shall have full access to such books, individuals, Columbia, Mayor, accounts, financial records, reports, files, tax returns, and other papers, and Comptroller things, or property of the government of the District of Columbia as General. such contractor deems necessary to complete each such audit required by such contract. Fiscal year audit. SEC. 4. (a) For the fiscal year beginning October 1, 1979, and each D.C. Code fiscal year thereafter, the government of the District of Columbia shall 47-120-2. conduct, out of funds of the government of the District of Columbia, an audit of the financial operations of such government. Each such audit shall be conducted by a certified public accountant licensed in the District of Columbia and carried out in accordance with generally acccepted auditing standards and the financial statements shall be prepared in accordance with generally accepted accounting principles.
PUBLIC LAW 94-399—SEPT. 4, 1976 90 STAT. 1209 (b) F o r the purpose of conducting an audit for each such fiscal Fiscal year year as required by subsection (a) of this section, the Mayor of the audits. District of Columbia shall, on or after J a n u a r y 2,1979, select, subject to the advice and consent of the Council of the District of Columbia, a qualified person to conduct such audits for the fiscal year commenc- ing October 1, 1979, and the next following three fiscal years. There- after, each individual elected as Mayor in a general election held for Mayor of the District of Columbia shall, on or after J a n u a r y 2 next following his or her election to, and the assuming of, the Office of Mayor, select, subject to the advice and consent of the Council of the District of Columbia, a qualified pereon to conduct such audits for the fiscal year commencing October 1 of the calendar year in which such Mayor takes office, and the next following three fiscal years. T h e person previously selected for a four-year period shall not succeed himself or herself. If the Council fails to act on any such selection within a thirty-day period following the date on which it receives from the Mayor the name of such person so selected, the Mayor shall be authorized to enter into a contract with t h a t person for the conduct of such audits. I f any person so selected by the Mayor to conduct any such audits for such fiscal years is rejected by the Council, the Mayor shall submit to the Council the name of another qualified person selected by the Mayor to conduct such audits. I n the event t h a t the Notice to Council rejects the second person so selected by the Mayor, the Mayor congressional shall, within t h i r t y days following t h a t rejection, notify the chairman committees. of the Committee on Appropriations of the Senate and the chairman of the Committee on Appropriations of the House of Representatives, in writing, of t h a t fact. W i t h i n fifteen days following the receipt of t h a t notice, such chairmen shall jointly select a person to conduct such audits and shall inform the Mayor, in writing, of the name of the person so selected. W i t h i n ten days following the receipt by t h e Mayor of such name, the INIayor shall enter into a contract with such person pursuant to which t h a t person shall conduct such audits for such fiscal years as herein provided. (c) The Mayor shall submit a copy of the audit report with respect Report, submittal to each such audit so conducted to the Congress, the President of the to Congress, United States, the Council of the District of Columbia, and the Comp- President, troller General. Council of the District of SEC. 5. (a) F o r the purpose of making payments under contracts Columbia, and entered into under sections 2 and 3 of this Act, for reimbursing the Comptroller Comptroller General under subsection (f) of the first section of this General. Act, and for meeting other expenses incurred by the commission under Appropriation this Act, there is authorized to be appropriated to the commission the authorization. sum of $16,000,000, of which $8,000,000 shall be from funds in the D.C. Code Treasury not otherwise appropriated, and $8,000,000 shall be from 47-101 note. funds in the Treasury to the credit of the District of Columbia. Sums appropriated p u r s u a n t to this section are authorized to remain avail- able until expended. (b) No funds appropriated pursuant to subsection (a) of this section out of funds in the Treasury to the credit of the District of Columbia may be used for any payment under any contract entered into pursuant to section 2 or 3 of this Act, for any payment as reimbursement to the General Accounting Office, or for expenses of the commission, in an amount greater t h a n 50 per centum of the total amount of any such payment. (c) The chairman of the commission may enter into contracts under sections 2 and 3 of this Act only to the extent and in such amounts as are provided in appropriation Acts.
90 STAT. 1210 PUBLIC LAW 94-399—SEPT. 4, 1976 Definitions. SEC. 6. As used in this Act, the term— D.C. Code (1) "person" means any individual, partnership, firm, corpo- 47-101 note. ration, or other entity; and (2) "government of the District of Columbia" includes the Mayor of the District of Columbia, the Council of the District of Columbia, the courts of the District of Columbia, and all agencies (as defined in paragraph (3) of section 3 of the District of Columbia Administrative Procedure Act (D.C. Code, sec. 1-1502(3))). Termination. SEC. 7, Thirty days after notification by the Comptroller General D.C. Code to the commission of the completion and implementation of all plans 47-101 note. and designs under this Act, or thirty days after final payment of all contracts entered into pursuant to sections 2 and 3 of this Act, which- ever last occure, the commission shall cease to exist. Approved September 4, 1976. LEGISLATIVE HISTORY: HOUSE REPORTS: No. 94-1094 (Comm. on the District of Columbia) and No. 94-1381 (Comm. of Conference). SENATE REPORT No. 94-1015 (Comm. on the District of Columbia). CONGRESSIONAL RECORD, Vol. 122 (1976): May 24, considered and passed House. July 1, considered and passed Senate, amended. Aug. 23, House agreed to conference report. Aug. 24, Senate agreed to conference report.