Cross References.-Institute of Inter-American Affairs as subject to this chapter, see section 281l of Title 22, Money and Finance.

§ 847. Preparation of annual budget program; form, content, and manner of presentation. - Each wholly owned Government corporation shall cause to be prepared annually a budget program, which shall be submitted to the President through the Bureau of the Budget on or before September 15 of each year. The Bureau of the Budget, under such rules and regulations as the President may establish, is authorized and directed to prescribe the form and content of, and the manner in which such budget program shall be prepared and presented. The budget program shall be a business-type budget, or plan of operations, with due allowances given to the need for flexibility, including provision for emergencies and contingencies, in order that the corporation may properly carry out its activities as authorized by law. The budget program shall contain estimates of the financial condition and operations of the corporation for the current and ensuing fiscal years and the actual condition and results of operation for the last completed fiscal year. Such budget program shall include a statement of financial condition, a statement of income and expense, an analysis of surplus or deficit, a statement of sources and application of funds, and such other supplementary statements and information as are necessary or desirable to make known the financial condition and operations of the corporation. Such statements shall include estimates of operations by major types of activities, together with estimates of administrative expenses, estimates of borrowings, and estimates of the amount of Government capital funds which shall be returned to the Treasury during the fiscal year or the appropriations required to provide for the restoration of capital impairments. (Dec. 6, 1945, ch. 557, Title I, § 102, 59 Stat. 598.)

§ 848. Transmission of budget programs to Congress; amendments; effective date. - The budget programs of the corporations as modified, amended, or revised by the President shall be transmitted to the Congress as a part of the annual Budget required by sections 1, 2, 11, 13-24, 41-43, 44-47, 49, 52-55, 71, 471, and 581 of this title. Amendments to the annual budget programs may be submitted from time to time.

Budget programs shall be submitted for all wholly owned Government corporations covering operations for the fiscal year commencing July 1, 1946, and each fiscal year thereafter. (Dec. 6, 1945, ch. 557, Title I, § 103, 59 Stat. 598.)

§ 849. Consideration of programs by Congress; enactment of necessary legislation; effect of section on certain existing authority of corporations. The Budget programs transmitted by the President to the Congress shall be considered and legislation shall be enacted making necessary appropriations, as may be authorized by law, making available for expenditure for operating and administrative expenses such corporate funds or other financial resources or limiting the use thereof as the Congress may determine and providing for repayment of capital funds and the payment of dividends. The provisions of this section shall not be construed as preventing Government corporations from carrying out and financing their activities as authorized by existing law, nor as affecting the provisions of section 831 of Title 16. The provisions of this section shall not be construed as affecting the existing authority of any Government corporation to make contracts or other commitments without reference to fiscal year limitations. (Dec. 6, 1945, ch. 557, Title I, § 104, 59 Stat. 598, amended July 30, 1947, ch. 358, Title III, § 307, 61 Stat. 584.)

1947 Amendment.-Act July 30, 1947, cited to text amended section to put the Congress in a position to place such limitations on the use of corporate funds as may be necessary to carry out the will of Congress.

§ 850. Audit of financial transactions; rules and regulations; retention of certain powers of Tennessee Valley Authority; place of audit; access to books, records, etc.; effective date. The financial transactions of wholly owned Government corporations shall be audited by the General Accounting Office in accordance with the principles and procedures applicable to commercial corporate transactions and under such rules and regulations as may be prescribed by the Comptroller General of the United States: Provided, That such rules and regulations may provide for the retention at the offices of such corporations, in whole or in part, of any accounts of accountable officers, covering corporate financial transactions, which are required by existing law to be settled and adjusted in the General Accounting Office, and for the settlement and adjustment of such accounts in whole or in part upon the basis of examinations in the course of the audit provided by this section, but nothing in this proviso shall be construed as affecting the powers reserved to the Tennessee Valley Authority in section 831h (b) of Title 16. The audit shall be conducted at the place or places where the accounts of the respective corporations are normally kept. The representatives of the General Accounting Office shall have access to all books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the respective corporations and necessary to facilitate the audit, and they shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents and custodians. The audit shall begin with the first fiscal year commencing after the enactment of this chapter. (Dec. 6, 1945, ch. 557, Title I, § 105, 59 Stat. 599.)

Audit of Federal Housing Administration. - Section 501(b) of Act Aug. 10, 1948, ch. 832, Title V, 62 Stat. 1283, provided in part: "That, as to the Federal Housing Administration, the audit required by section 105 of said Act [this section] shall begin with the fiscal year commencing July 1, 1948."

Cross References. --Payment of unpaid checks, see sections 132-134 of this title.

§ 851. Audit report to Congress; scope and contents; specific itemization of operations without color of authority; copies to President, etc.-A report of each such audit for each fiscal year ending on June 30 shall be made by the Comptroller General to the Congress not later than January 15 following the close of the fiscal year for which such audit is made. The report shall set forth the scope of the audit and shall include a statement (showing intercorporate relations) of assets and liabilities, capital and surplus or deficit; a statement of surplus or deficit analysis; a statement of income and expense; a statement of sources and application of funds; and such comments and information as may be deemed necessary to keep Congress informed of the operations and financial condition of the several corporations, together with such recommendations with respect thereto as the Comptroller General may deem advisable, including a report of any impairment of capital noted in the audit and recommendations for the return of such Government capital or the payment of such dividends as, in his judgment, should be accomplished. The report shall also show specifically any program, expenditure, or other financial transaction or undertaking observed in the course of the audit, which, in the opinion of the Comptroller General, has been carried on or made without authority of law. A copy of each report shall be furnished to the President, to the Secretary of the Treasury, and to the corporation concerned at the time submitted to the Congress. (Dec. 6, 1945, ch. 557, Title I, § 106, 59 Stat. 599.)

§ 852. Corporation deemed Government agency; approval by Congress; effect; entity unaffected. - Whenever it is deemed by the Director of the Bureau of the Budget, with the approval of the President, to be practicable and in the public interest that any wholly owned Government corporation be treated with respect to its appropriations, expenditures, receipts, accounting, and other fiscal matters as if it were a Government agency other than a corporation, the Director shall include in connection with the budget program of such corporation in the Budget a recommendation to that effect. If the Congress approves such recommendation in connection with the budget program for any fiscal year, such corporation, with respect to subsequent fiscal years, shall be regarded as an establishment other than a corporation for the purposes of sections 1, 2, 11, 13-24, 41-43, 44-47, 49, 52-55, 71, 471, and 581 of this title, and other provisions of law relating to appropriations, expenditures, receipts, accounts, and other fiscal matters, and shall not be subject to the provisions of this chapter other than this section. The corporate entity shall not be affected by this section. (Dec. 6, 1945, ch. 557, Title I, § 107, 59 Stat. 599.)

SUBCHAPTER III.-MIXED-OWNERSHIP GOVERNMENT CORPORATIONS

§ 856. Definition of "mixed-ownership Government corporations." As used in this chapter the term "mixed-ownership Government corporations" means (1) the Central Bank for Cooperatives and the Regional Banks for Cooperatives, (2) Federal Land Banks, (3) Federal Home Loan Banks, and (4) Federal Deposit Insurance Corporation. (Dec. 6, 1945, ch. 557, Title II, § 201, 59 Stat. 600.)

§ 857. Audit of financial transactions; rules and regulations; place of audit; access to books, records, etc.; effective date. The financial transactions of mixed-ownership Government corporations for any period during which Government capital has been invested therein shall be audited by the General Accounting Office in accordance with the principles and procedures applicable to commercial corporate transactions and under such rules and regulations as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where the accounts of the respective corporations are normally kept. The representatives of the General Accounting Office shall have access to all books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the respective corporations and necessary to facilitate the audit, and they shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, and custodians. The audit shall begin with the first fiscal year commencing after the enactment of this chapter. (Dec. 6, 1945, ch. 557, Title II, § 202, 59 Stat. 600.)

Payment of unpaid checks, see sections 132-134 of this title.

§ 858. Audit report to Congress; scope and contents; specific itemization of operations without color of authority; copies to President. etc.-A report of each such audit for each fiscal year ending on June 30 shall be made by the Comptroller General to the Congress not later than January 15, following the close of the fiscal year for which such audit is made. The report shall set forth the scope of the audit and shall include a statement (showing intercorporate relations) of assets and liabilities, capital and surplus or deficit; a statement of surplus or deficit analysis; a statement of income and expense; a statement of sources and application of funds; and such comments and information as may be deemed necessary to keep Congress informed of the operations and financial condition of, and the use of Government capital by, each such corporation, together with such recommendations with respect thereto as the Comptroller General may deem advisable, including a report of any impairment of capital or lack of sufficient capital noted in the audit and recommendations for the return of such Government capital or the payment of such dividends as, in his judgment, should be accomplished. The report shall also show specifically any program, expenditure, or other financial transaction or undertaking observed in the course of the audit, which, in the opinion of the Comptroller General, has been carried on or made without authority of law. A copy of each report shall be furnished to the President, to the Secretary of the Treasury, and to the corporation concerned at the time submitted to the Congress. (Dec. 6, 1945, ch. 557, Title II, § 203, 59 Stat. 600.)

§ 859. Presidential recommendations as to return of Government capital to Treasury. - The President shall include in the annual Budget any recommendations he may wish to make as to the return of Government capital to the Treasury by any mixed-ownership corporation. (Dec. 6, 1945, ch. 557, Title II, § 204, 59 Stat. 601.)

SUBCHAPTER IV. - MISCELLANEOUS PROVISIONS

§ 866. Auditing expenses-Payment by General Accounting Office; reimbursement; disposition of reimbursing funds; utilization of reports.-(a) The expenses nses of auditing the financial transactions of wholly owned and mixed-ownership Government corporations as provided in sections 850 and 857 of this title shall be borne out of appropriations to the General Accounting Office, and appropriations in such sums as may be necessary are authorized: Provided, That each such corporation shall reimburse the General Accounting Office for the full cost of any such audit as billed therefor by the Comptroller General, and the General Accounting Office shall deposit the sums so reimbursed into the Treasury as miscellaneous receipts: Provided further, That in making the audits provided in said sections the Comptroller General shall, to the fullest extent deemed by him to be practicable, utilize reports of examinations of Government corporations made by a supervising administrative agency pursuant to law.

(b) Employment of personnel; compensation.-For the purpose of conducting such audit the Comptroller General is authorized in his discretion to employ not more than ten persons without regard to sections 661-663, 664-669, 670-672, 673, and 674 of Title 5, only one of whom may be compensated at a rate of as much as but not more than $10,000 per annum, and to employ by contract, without regard to section 5 of Title 41, professional services of firms and organizations for temporary periods or for special purposes.

(c) Audit authorization. The audit provided in sections 850 and 857 of this title shall be in lieu of any audit of the financial transactions of any Government corporation required to be made by the General Accounting Office for the purpose of a report to the Congress or to the President under any existing law.

(d) Limitation of payment for private audits; exception.-Unless otherwise expressly provided by law, no funds of any Government corporation shall be used to pay the cost of any private audit of the financial records of the offices of such corporation, except the cost of such audits contracted for and undertaken prior to April 25, 1945. (Dec. 6, 1945, ch. 557, Title III, § 301, 59 Stat. 601.)

§ 867. Depositary for banking or checking accounts; exemption of temporary accounts and accounts of certain corporations. The banking or checking accounts of all wholly owned and mixed-ownership Government corporations shall be kept with the Treasurer of the United States, or, with the approval of the Secretary of the Treasury, with a Federal Reserve bank, or with a bank designated as a depositary or fiscal agent of the United States: Provided, That the Secretary of the Treasury may waive the requirements of this section under such conditions as he may determine: And provided further, That this section will not apply to the establishment and maintenance in any bank for a temporary period of banking and checking accounts not in excess of $50,000 in any one bank. The provisions of this section shall not be applicable to Federal Intermediate Credit Banks, Production Credit Corporations, the Central Bank for Cooperatives, the Regional Banks for Cooperatives, or the Federal Land Banks, except that each such corporation shall be required to report annually to the Secretary of the Treasury the names of the depositaries in which such corporation keeps a banking or checking account, and the Secretary of the Treasury may make a report in writing to the corporation, to the President, and to the Congress which he deems advisable upon receipt of any such annual report. (Dec. 6, 1945, ch. 557, Title III, § 302, 59 Stat. 601.)

§ 868. Bonds, notes, and debentures, etc. - Maturity dates, interest rates, terms, and conditions.(a) All bonds, notes, debentures, and other similar obligations which are on or after December 6, 1945, issued by any wholly owned or mixed-ownership Government corporation and offered to the public shall be in such forms and denominations, shall have such maturities, shall bear such rates of interest, shall be subject to such terms and conditions, shall be issued in such