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GGD-78-36 1 (1977-12-23)

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                         DOCUMENT RESUE
05953 - (B13663391 f (4WP1 I).JJil77

Audit of Ford-Carter Presidential Transition Expenditures.
GGD-78-36; B-149372; B-158195. December 23, 1977. Released
December 11, 1977. 41 pp. * 4 appendices (17 pp.).

Report to Rep. :ack Brooks, Chairman# House Committee on
Government Operations; by Elmer B. Staats, Comptroller General.

contact: General Government Div.
Budget Function: General Government: Executive Direction and
    Banagement (802).
Organization Concerned: General Services Administration.
Congressional Relevance: House Committee on Government
    Operations. Re . Jack Sroaks.
Authority: Presidential Transition Act of 1963 (3 u.S.C. 102).
    Former Presidents Act of 1958. Civil Service Retirement act.
    Federal Employees Compensation Act. Federal Imployees Group
    Life Insurance Act of 1954. Federal Employees Health
    Benefits Act of 1959. P.7  94-499. P.L. 94-363. P.L. 94-438.
    P.L. 95-550. 40 U.S.C. '0.

         The Presidential Transition Act of 1963 authorized the
appropriation of $900,000 for each Presidential transition and
authorized the use of Government employees on a reimbursable or
nonreimbursable basis. Oct.ber 1976 amendments to the act
authorized the appropriation of up to $2 million for the
incoming administration and up to $1 million for the outgoing
administration. The amendments also deleted the authority to
provide Government employees on a nonreimbursable basis. The
Gerald Ford-Jimmy Carter transition vas the first to test the
workability of financing a transition entirely with Presidential
Transition Act funds. Findings/Conclusions: as of August 31,
1977, about $1.7 million of the $2 million appropriated for the
incoming Carter administration had been obligated, leaving an
unobligated balance of about $300,000. At the same time, about
$635,000 of the $1 million appropriated for the outgoing Ford
administration had been obligated, leaving an uncbligated
balance of $365,000. Host of the problems encountered by the
incoming administration involved use of a checking account in a
private bank under control of the Carter/Mondale transition
staff. It was more than 4 months after the end of the transition
period before the records pertaining to this account were
released. False authorizations were used to obtain cash advances
of about $18,000 for 69 indivi.dnals; this subterfuge was used
because the General Services administration payrcll system was
not fast enough to accommodats the needs of some staff mahers
for salary payments. A longer presidential transition period
provided President Ford with several advantages not available to
former Presidents. Recommendations: The Congress should amend
the Presidential Transition Act to: delete provisions dealing
with outgoing administrations, add provisions dealing with
militany and chartered aircraft, and include approval of