Funding and personnel availability Section 904(a) is designed to help provide technical assistance to State and local governments involved in developing combined applications for joint projects. Under it, appropriations available to any Federal aid program for technical assistance or personnel training may be made available for the provision of such assistance in connection with joint projects involving that program and any other Federal aid program. In addition, the personnel of any Federal agency (pursuant to Section 904(b)) may be detailed from time to time, where necessary, other agencies to assist in processing combined applications or in administering approved joint projects. The authority of the Comptroller General of the United States to Section 905 states that the Comptroller General of the United States shall have access to any books, documents, papers, and records of recipients of intradepartmental or interdepartmental joint projects relating to moneys received from joint management funds for the purpose of GAO audit and examination. Effective date Section 402 states that sections 902 and 903 of the Intergovernmental Cooperation Act of 1968, as added by section 401 of this Act, shall become effective one hundred and twenty days after the date of enactment of this Act. TITLE V-CONGRESSIONAL AND EXECUTIVE OVERSIGHT OF FEDERAL ASSISTANCE PROGRAMS Section 501 of this Act amends the Intergovernmental Cooperation Act of 1968 by adding a new subsection at the end of Section 601. This amendment is designed to strengthen Congressional review procedures for grants-in-aid enacted on or after January 3, 1971 and having termination provisions of three or more years. During the year preceding the date on which the program authority is to expire, the relevant substantive Committees of Congress, either separately or jointly, will conduct studies of the program and advise their respective Houses of their andings with special reference to the factors cited in Section 601 (a) (1), (2), (3), tnd (4). The Committee report will be filed with the respective Houses not later than one hundred and twenty days before the program is slated to expire. Section 502 amends Title VI of the Intergovernmental Cooperation Act of 1968 by adding two new sections following Section 603 and appropriately renumbering Section 604. The first of these new sections authorizes establishment of the position of review specialist of each standing committee of the Senate and House responsible for the review, study, and oversight of two or more assitance programs. This additional professional staff member will be selected and appointed by the Chairman of the standing committee with prior approval of the ranking minority member. He would serve on a permanent basis, without regard to political affiliation, and solely on the basis of professional competence. His basic assignment would be to assist the Committee in its performance of functions assigned by this title and he would be under the joint direction of the Chairman and the ranking minority member. The second new section (Section 605) is geared to strengthening Executive Branch oversight with respect to Federal assitance programs. Under it, heads of Federal departments and agencies administering more than one program would submit annually a report to Congress and the President on the operations of these programs, beginning with the first fiscal year following the date of enactment. These departmental reports among other things would cover the progress and effectiveness of administrative efforts to carry out the programs' statutory goals; the consultative procedures utilized under each program to afford recipient governments a chance to review and comment on proposed administrative regulations and basic program changes; the various intradepartmental and interdepartmental arrangements for achieving proper headquarters-field program coordination; efforts to simplify and make more uniform application forms and procedures as well as fiscal reporting and auditing requirements; the feasibility of consolidating functionally related assistance programs; the practicability of delegating more administrative authority-including project or program approval power-to departmental field offices; whether the purpose, management, administrative procedures and requirements in such programs should be changed; and the degree to which such programs are meeting the growing and changing needs they were initially designed to support. This new section (Section 605) concludes with the requirement that the President shall submit a summary report on these various departmental studies not later than January 31 of each year following the first fiscal year after the date of enactment. This report would be a synthesis of the materials presented in the various departmental studies and would stress the broad problems confronting grants-in-aid as effective government-wide devices for intergovernmental cooperation. Presidential proposals for reform might well be a concluding feature of this report. AGENCY REPORTS (S. 2479) Hon. EDMUND S. MUSKIE, DEPARTMENT OF AGRICULTURE, Chairman, Subcommittee on Intergovernmental Relations, DEAR MR. CHAIRMAN: This is in response to your request for a report on S. 2479, a bill "To improve the financial management of Federal assistance programs; to facilitate the consolidation of such programs; to provide temporary authority to expedite the processing of project applications drawing upon more than one Federal assistance program; to strengthen further Congressional review of Federal grants-in-aid; and to extend and amend the law relating to intergovernmental cooperation." The bill would amend the Intergovernmental Cooperation Act of 1968 by providing authority for: (1) Simplified and standardized financial reporting by State and local government recipients of Federal assistance; (2) Maximum feasible reliance on State and local financial management systems for adequacy of audits; (3) Consolidation of similar Federal assistance programs, after recommendation by the President and concurrence by the Congress; (4) Joint funding simplification, within Departments, to permit combined applications for projects financed from more than one source; (5) Interdepartmental demonstrations of joint Federal assistance projects; (6) More systematic reporting to the Congress on the progress and effectiveness in carrying out program goals, and in simplifying administrative procedures in Federal assistance programs. The Department favors the objectives of this bill. We believe this bill will enable substantially increased interdepartmental cooperation at the Federal level. This is a key factor to more effective and efficient relationships with State and local governments, a goal to which we strongly subscribe. The Intergovernmental Cooperation Act of 1968 (P.L. 90-577) provides a general legal framework for special cooperative efforts and simplification of administrative procedures. The proposed amendments complement the objectives of the Act and provide specific mechanisms, on a temporary and trial basis, for simplifying administrative procedures. We are presently implementing these concepts in several specific areas: (a) coordination of functional and comprehensive planning covering multi-jurisdictional areas; (b) coordination of assistance in metropolitan areas; and (c) specific procedures for consultation with heads of State and local government. In addition, under a State-Federal cooperative arrangement, 21 States, the District of Columbia, Guam, and Puerto Rico are performing audits of the School Lunch and Special Milk programs. It is this Department's position that the proposed bill should strengthen these efforts by providing needed authority to develop more direct lines of communication with State and local governments, and reduce confusion and delay in evaluating and funding programs of local assistance. However, we recognize that cross-servicing arrangements for programs, such as program audits, must be carefully designed if they are to avoid past difficulties encountered with such arrangements. Certain Acts administered by this Depart ment have specific requirements that would require legislative authority before they could be combined in joint funding projects. Examples are the Smith-Lever Act and Clarke-McNary Act, among others. The bill states that the authorities it contains would be exercised pursuant to regulations prescribed by the President. We believe it to be consistent with the President's and our own efforts to improve the effectiveness of the programs administered by this Department. The Bureau of the Budget advises that there is no objection to the presentation of this report and that enactment of S. 2479 would be in accord with the President's program. Sincerely yours, RICHARD LYNG, Hon. JOHN L. MCCLELLAN, DEPARTMENT OF THE ARMY, Washington, D.C., October 24, 1969. Chairman, Committee on Government Operations, DEAR MR. CHAIRMAN: Reference is made to your request to the Secretary of Defense for the views of the Department of Defense on S. 2479, 91st Congress, a bill "To improve the financial management of Federal assistance programs; to facilitate the consolidation of such programs; to provide temporary authority to expendite the processing of project applications drawing upon more than one Federal assistance program; to strengthen further congressional review of Federal grants-in-aid; and to extend and amend the law relating to intergovernmental cooperation." The Department of the Army has been assigned responsibility for expressing the views of the Department of Defense on this bill. This bill appears to be directed to the improvement of Federal assistance programs carried out principally by grants and loans. We do not believe it would have a significant impact on the programs of this Department. Accordingly, the Department of the Army on behalf of the Department of Defense defers to those agencies which would be more directly affected by the provisions of S. 2479. This report has been coordinated within the Department of Defense in accordance with the procedures prescribed by the Secretary of Defense. The Bureau of the Budget advises that, from the standpoint of the Administration's program, there is no objection to the presentation of this report for the consideration of the Committee. Sincerely, STANLEY R. RESOR, Secretary of the Army. UNITED STATES CIVIL SERVICE COMMISSION, Hon. EDMUND S. MUSKIE, DEAR SENATOR MUSKIE: This is in further reply to your request for the Commission's views on S. 2479, the "Intergovernmental Cooperation Act of 1969." This proposal would amend title VI and add three new titles to the Intergovernmental Cooperation Act of 1968. Title III of S. 2479 is also similar to S. 2035, the "Grant Consolidation Act of 1969" on which we submitted a report to the Senate Committee on Government Operations on August 15, 1969. These proposals are designed to meet the serious fiscal and administrative problems present in the grant-in-aid system which plague not only State and local governments but Federal agencies as well. We strongly support the purposes and principles of S. 2479. This proposal is specifically designed to improve the financial management of Federal assistance programs; to facilitate the consolidation of such programs; to provide temporary authority to expedite the processing of project applications drawing upon more than one Federal assistance program; to strengthen further congressional review of Federal grants-in-aid; and to extend and amend the law relating to intergovernmental cooperation. Each of these provisions has a key role to play in the overall effort to improve the administration and effectiveness of the grant-in-aid system. The Commission's concern in improving the grant-in-aid system stems, in part, from its general interest in promoting better execution of the laws, more effective management of the executive branch and of its agencies and functions, and the expeditious administration of the public business. A second and more concretely related factor is the Commission's involvement in intergovernmental affairs under the Intergovernmental Cooperation Act of 1968 and the expansion of that activity which will result from the enactment of a bill now under consideration by your committee-the Intergovernmental Personnel Act of 1969 (S. 11). The Intergovernmental Personnel Act would require the Commission to coordinate the personnel administration, technical assistance and training support given to State and local governments under authority of this act with any such support given under other Federal programs. This includes making the necessary arrangements to avoid duplication and insure consistent administration of related Federal activities. The sheer number of programs under which personnel administration and training support is provided to State and local governments makes this a tremendous administrative undertaking. In the hearings on the Intergovernmental Personnel Act of 1966 (S. 3408), Exhibit 10 (pages 52-54) indicates that in FY 1967 fourteen Federal departments and major agencies would administer 95 different programs which would train more than 1,500,000 personnel for State and local government employment. Both the number of programs and the number of trainees have grown since that time. The extent to which these programs relate to one another and need to work in concert represents an increasing problem of coordination. Consolidating closely related programs, harmonizing financial reporting requirements, and simplifying procedures for joint funding of Federal assistance programs will go far in alleviating this problem. These improvements will help to overcome the difficulties facing those seeking to "package" grant applications and such problems as lack of information concerning sources of available funds and overlapping and duplication among grant programs—each with its own administrative requirements. We feel this proposal can correct much of the inflexibility resulting from the many separate programs which have sapped the capacity of both administrative and elected officials to execute, coordinate, and effectively evaluate grant-in-aid programs. With regard to specific provisions of S. 2479, we have the following comments and suggestions: Title II would amend the Intergovernmental Cooperation Act of 1968 by adding a new title VII dealing with accounting, auditing, and reporting of Federal assistance funds. On page 3, line 1, "Title VIII" should be changed to read "Title VII". Section 701 of the proposed new title states that one of its purposes is "to authorize the Comptroller General of the United States to prescribe rules and regulations for use of audits of States and political subdivisions in meeting the responsibilities of the General Accounting Office with respect to such programs." This statement apparently has reference to the proposed section 704 in a similar bill now pending before the House of Representatives, H.R. 7366. It pertains to the functions of the Comptroller General. However, no similar section appears in S. 2479. We defer to the judgment of the Comptroller General as to whether a section of this nature should be included in S. 2479. If it is not included, the reference to the Comptroller General in section 701 should be deleted. Title III of S. 2479 would add a new title VIII to the Intergovernmental Cooperation Act of 1968. This proposed new title, dealing with the consolidation of Federal assistance programs, to a large extent parallels S. 2035, the "Grant Consolidation Act of 1969” on which the Commission has already reported to your committee. Many of the differences between the two proposals are merely matters of style and format. We feel, however, that S. 2035 contains more appropriate and complete provisions as to what the President's consolidation authority will be and also what the specific limits on his authority will be. In addition we prefer the provisions of S. 2035 which permit consolidation plans to become effective after 60 days unless disapproved by either House-rather than the 90-day period authorized by S. 2479. We note that the recently extended reorganization statute, after which these grant consolidation proposals are patterned, provides for a 60-day period. On page 8, line 9, strike out "program" and insert in place thereof "programs". On page 14, line 23, strike out "point" and insert in place thereof "joint". The Bureau of the Budget advises that from the standpoint of the Administration's program there is no objection to the submission of this report. By direction of the Commission: Sincerely yours, (Signed) ROBERT E. HAMPTON, Chairman. Hon. EDMUND S. MUSKIE, DELAWARE RIVER BASIN COMMISSION, 221 Old Senate Office Building, Washington, D.C. DEAR SENATOR MUSKIE: Your letter of July 11, to the Federal Commissioner, asking for comment on S. 2479, has been referred to us by his office. Let me say that we are, from direct experience, wholly in sympathy with the objectives of this bill and with many of the provisions therein. The proposal under Section 703(a), (b), (c) for audits and acceptability of audits of different jurisdictions is highly desirable since our own experience has been that as many as three or four agencies frequently, cover the same ground in their auditing procedures. With respect to Section 801, our own experience from the receiving end is that it would be far more effective for everybody if federal assistance programs were consolidated on the basis of the same functional areas and administered by a single agency responsible for such functional areas. Thus, in the water supply, and waste disposal fields, we think that no more than two agencies should be involved in federal assistance programs regardless of the many different agencies now having some part of the program under the multitudinous grant structure that has grown up. With respect to Section 802, present procedures concerning matching formulae are a hodge-podge. Bureau of the Budget document Circular #87 is a step, but only a step, in the right direction. The probability of effective results arising from Article IX, Sections 901 and 902, appears dubious. Joint projects and joint funding might reduce some of the confusion but would not be as positive as full consolidation on a functional basis within a single agency. Section 604, calling for Congressional Review Specialists, is highly desirable. May I suggest, however, that the limitation of one Congressional Review Specialist to each committee may be an unwise restriction. With experience it may be found that more than one will be needed on certain committees. Section 605 calls for reports from federal agencies administering assistance programs and spells out the points to be included in these reports. I should like to suggest, also, that certain selected field agencies in the receiving categories also be permitted or required to submit reports upon the effectiveness of the procedures, together with suggestions for simplification of forms, programs and the like. One of the final proofs of efficiency will be reflected not so much by the ease with which the federal administering agency disposes of the various assistance grants, but by the facility with which receiving agencies are able to deal with the federal managers of these programs. Sincerely, JAMES F. WRIGHT. COMPTROLLER GENERAL OF THE UNITED STATES, Hon. EDMUND S. MUSKIE, DEAR MR. CHAIRMAN: Reference is made to your letter of July 11, 1969, requesting our comments on S. 2479. The bill is designed to amend and expand upon the Intergovernmental Cooperation Act of 1968 and, if enacted into law, would be cited as the "Intergovernmental Cooperation Act of 1969." Title II of the bill would add a new title VIII to the Intergovernmental Cooperation Act of 1968 regarding accounting, auditing, and reporting of Federal assistance funds. This new title VIII should be changed to title VII. Section 701 thereof states in part that the purpose of such title is "to authorize the Comptroller General of the United States to prescribe rules and regulations for use of audits of States and political subdivisions in meeting the responsibilities of the General Accounting Office with respect to such programs." Since nothing presently contained in the proposed title VIII [VII] specifically provides for carrying out such purpose, we recommend that that portion of section 701 quoted above be deleted. Section 704 of H.R. 7366 and section 704 of the draft Senate bill which evolved into S. 2479 dealt with the audit functions of the General Accounting Office, and required the Comptroller General to (1) prescribe rules and regulations on auditing (2) accept the audit work of States and political subdivisions, and (3) make an annual report to the Congress on this matter. Out letter of April 24, 1969, to your Committee, commenting on the draft bill which evolved into S. 2479, |
