GAO's Authority to Audit Capitol Concerts, B-284610, March 3, 2000

B-284610 Mar 03, 2000 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights The concert series is financed with both appropriated and private funds. We were asked to verify the receipt and use of funds derived from concert-related federal grants and private fund raising activities to pay for producing. We have begun our review under 40 U.S.C. Representative Dingell offered an amendment that was adopted and eventually became section 451. The language of section 193m-1 is very broad. It refers to private organizations without concern over whether the organization is for profit or generates income for the benefit of a person. The authorized audit is of the private organization's accounts. . . . [and] what the expenses are and what the contracts are and how the contracts are derived. View Decision Subject: GAO's Authority to Audit Capitol Concerts File: B-284610 Date: March 3, 2000 Subcommittee on Economic Development, Public Buildings, Hazardous Materials and Pipeline Transportation Committee on Transportation and Infrastructure House of Representatives The Honorable Bob Franks Chairman Dear Mr. Chairman: This responds to your joint January 27, 2000, request /1/ for an opinion concerning the authority of the General Accounting Office (GAO) to audit private funds used by a private organization in connection with the annual Capitol concert series. For the reasons discussed below, we believe 40 U.S.C. Sec. 193m-1 authorizes GAO to audit the private funds a private organization uses to perform services or conduct activities on United States Capitol grounds. Background Congress authorizes the National Park Service (NPS) to annually sponsor a series of National Symphony Orchestra (NSO) concerts on Capitol grounds under conditions provided by the Architect of the Capitol. H. Cong. Res. 133, May 21, 1981. NPS awards a grant to NSO to perform the concert series, comprised of the Memorial Day, July 4th, and Labor Day concerts. To televise the Memorial Day and July 4th concerts, NSO enters into an agreement with a concert producer, Capital Concerts, Inc. /2/ The producer's responsibilities include television production; engaging the conductor, artists, technical staff; audio-visual reproduction; and specified logistical arrangements. The concert series is financed with both appropriated and private funds, including donations raised and used by the producer. The Senate Majority and Minority Leaders and the Chairman and Ranking Member of the Senate Committee on Rules and Administration asked GAO to audit the costs and related sources of funding for the 1999 Capitol concert series held on Capitol grounds. Specifically, we were asked to verify the receipt and use of funds derived from concert-related federal grants and private fund raising activities to pay for producing, staging, and broadcasting the three concerts. To satisfy the request, we have begun our review under 40 U.S.C. Sec. 193m-1, which authorizes GAO to audit private organizations performing services or conducting activities on the United States Capitol grounds. Discussion A number of statutes provide GAO with broad audit authority. Our enabling legislation, the Budget and Accounting Act, 1921, authorizes the Comptroller General to investigate all matters relating to the receipt, disbursement, and use of public money. 31 U.S.C. Sec. 712. Later, in the most important budget and accounting legislation since 1921, the Accounting and Auditing Act of 1950, the Congress specifically authorized GAO to audit the financial transactions of executive, legislative and judicial agencies. 31 U.S.C. Sec. 3523. Subsequently, Congress endorsed GAO's evolving program evaluation work by passing the Legislative Reorganization Act of 1970, which specifically authorized the Comptroller General to review and evaluate the results of government programs. 31 U.S.C. Sec. 717. During the floor debate on the Legislative Reorganization Act of 1970, Representative Dingell offered an amendment that was adopted and eventually became section 451, now codified at 40 U.S.C. Sec. 193m-1. Section 193m-1 provides that "[a]ny private organization, except political parties and committees constituted for election of Federal officials, whether or not organized for profit and whether or not any of its income inures to the benefit of any person, which performs services or conducts activities in or on the United States Capitol Buildings or Grounds, . . ., shall be subject, for each year in which it performs such services or conducts such activities, to a special audit of its accounts which shall be conducted by the General Accounting Office." The language of section 193m-1 is very broad. It refers to private organizations without concern over whether the organization is for profit or generates income for the benefit of a person.