[Senate Report 108-339]
[From the U.S. Government Publishing Office]
108th Congress
2d Session SENATE Report
108-339
_______________________________________________________________________
Calendar No. 693
TO REAUTHORIZE THE CONGRESSIONAL AWARD ACT
__________
R E P O R T
of the
COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE
to accompany
S. 2639
TO REAUTHORIZE THE CONGRESSIONAL AWARD ACT
September 14, 2004.--Ordered to be printed
COMMITTEE ON GOVERNMENTAL AFFAIRS
SUSAN M. COLLINS, Maine, Chairman
TED STEVENS, Alaska JOSEPH I. LIEBERMAN, Connecticut
GEORGE V. VOINOVICH, Ohio CARL LEVIN, Michigan
NORM COLEMAN, Minnesota DANIEL K. AKAKA, Hawaii
ARLEN SPECTER, Pennsylvania RICHARD J. DURBIN, Illinois
ROBERT F. BENNETT, Utah THOMAS R. CARPER, Delaware
PETER G. FITZGERALD, Illinois MARK DAYTON, Minnesota
JOHN E. SUNUNU, New Hampshire FRANK LAUTENBERG, New Jersey
RICHARD C. SHELBY, Alabama MARK PRYOR, Arkansas
Michael D. Bopp, Staff Director and Chief Counsel
Johanna L. Hardy, Senior Counsel
Joyce A. Rechtschaffen, Minority Staff Director and Counsel
Lawrence B. Novey, Minority Counsel
Amy B. Newhouse, Chief Clerk
Calendar No. 693
108th Congress Report
SENATE
2d Session 108-339
======================================================================
TO REAUTHORIZE THE CONGRESSIONAL AWARD ACT
_______
September 14, 2004.--Ordered to be printed
_______
Ms. Collins, from the Committee on Governmental Affairs, submitted the
following
R E P O R T
[To accompany S. 2639]
The Committee on Governmental Affairs, to which was
referred the bill (S. 2639) to reauthorize the Congressional
Award Act, having considered the same, reports favorably
thereon and recommends that the bill do pass.
CONTENTS
Page
I. Purpose & Summary................................................1
II. Background.......................................................1
III. Legislative History..............................................4
IV. Section-by-Section Analysis......................................4
V. Estimated Cost of Legislation....................................5
VI. Evaluation of Regulatory Impact..................................5
VII. Changes in Existing Law..........................................6
I. Purpose and Summary
S. 2639 reauthorizes the Congressional Award Program for 5
years, until October 1, 2009. Designed to promote initiative,
achievement, and excellence among the youth of America, the
Program arranges for medals to be awarded to young people who
have satisfied specified standards of achievement. Members of
Congress are included on the Board that administers the
program, and they participate in the presentation of awards.
II. Background
The Congressional Award Act, Public Law 96-114, was enacted
on November 16, 1979, as a bipartisan initiative led by Senator
Malcolm Wallop (R-WY) and Representative James J. Howard (D-
NJ). Under the Congressional Award Program established by the
Act, young people between the ages of 14 and 23 earn awards by
completing a certain number of hours in each of four areas of
achievement--volunteer public service, personal development,
physical fitness, and expedition/exploration. The Award is non-
competitive, and participants, with the guidance of adult
advisors, establish their own goals and work to achieve them.
Depending on how many hours are completed, participants earn
Bronze, Silver, and Gold certificates, or Bronze, Silver, and
Gold medals. Members of the House and Senate recognize their
constituents who earn Bronze and Silver medals at in-state
ceremonies, and Gold-medal winners are recognized at an annual
ceremony in the Capitol presided over by House and Senate
leadership. The Program is very popular, with more than 16,000
active participants and more than 10,000 adult mentors involved
across the Nation.
Under the Act, the Congressional Award Program is
administered by a 25-member Board. Twenty-four of the members
are appointed by Congressional leadership--6 by each of the
majority leader of the Senate, the minority leader of the
Senate, the Speaker of the House of Representatives, and the
minority leader of the House of Representatives. The Director
of the Board, appointed by a majority vote of the Board, is the
principal executive of the Program and sits as a non-voting
member of the Board. By statute, four of the Board members must
be Members of Congress. At present, Senator Max Baucus, Senator
Larry E. Craig, Representative Barbara Cabin, and
Representative Sheila Jackson-Lee serve on the Board.
The Board operates as a private, nonprofit, tax-exempt
organization (under section 501(c)(3) of the Internal Revenue
Code), called the Congressional Award Foundation. Financial
sponsors of the Program include business corporations,
charitable foundations, and labor unions. The Foundation
receives its support from these tax-exempt contributions and,
under current law, receives no federal appropriation. The
Foundation does, however, receive a small amount of in-kind
services from the federal government, including free office
space in a House Office Building, an annual audit by the
Government Accountability Office (GAO), and the design and
striking of award medals by the U.S. Mint.
The Act has been reauthorized several times since November
16, 1979, when Public Law 96-114 was enacted, establishing the
Board for a 6-year period. The Act was first reauthorized, for
a further 3-year period, by Public Law 99-161, the
Congressional Award Amendments of 1985. Public Law 100-674, the
Congressional Award Act Amendments of 1988, reauthorized the
Act for an additional 2 years, contingent upon the Board's
complying with the established reporting requirements. Public
Law 101-525, the Congressional Award Amendments of 1990,
extended the Act for approximately an additional 2-year period,
until October 1, 1992. Public Law 102-457, the Congressional
Award Act Amendments of 1992, extended the Act for a 3-year
period, and Public Law 104-208 extended the Act for a 4-year
period. Most recently, Public Law 106-63 extended the Act for 5
years, until the current expiration date of October 1, 2004.
The Congressional Award Program is very popular and
continues to grow rapidly. The number of Program participants
has doubled over a recent 3-year period, from approximately
8,000 in 2001 to over 16,000 at the end of the 2003 fiscal
year. There are also more than 10,000 adult mentors involved in
the program. By statute, GAO audits the Foundation's financial
statements annually and has issued generally favorable reports.
The Committee believes that the Congressional Award Program
performs a valuable service, encouraging initiative,
achievement, public service, and personal development in the
Nation's youth, as well as providing an opportunity for service
for the adult volunteers, and the Committee therefore supports
and recommends reauthorization of the Program.
The Committee has received information, however, indicating
that the financial condition of the Foundation is
deteriorating. In the past, the Foundation has sustained itself
with private donations, but it has faced increasing financial
difficulty in recent years. The rapid growth of the Program has
strained the Foundation's resources, and its financial
situation has been further taxed by the downturn in the
financial markets and by the general difficulty in maintaining
charitable giving arising out of the recent recession.\1\ Thus,
cash contributions decreased from over $1 million in fiscal
year 1999 to about $550,000 in fiscal year 2003. The Foundation
responded by cutting its operating expenses, from over
$1,700,000 in fiscal year 2002 to $725,000 in fiscal year 2003,
but its overall financial situation is still in decline. In the
most recent financial audit report for the Foundation, issued
in May 2003, GAO found no reportable problem with the
Foundation's financial statements, but reported that the
Foundation faced a worsening financial condition--raising
substantial doubt about its ability to continue as an ongoing
concern.\2\ On May 13, 2004, GAO wrote to Chairman Collins and
Ranking Minority Member Lieberman, among others, indicating
that the Foundation continues to experience financial
difficulties, such that it no longer has the resources to
prepare financial statements on a timely basis.\3\
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\1\ GAO, ``Financial Audit: Congressional Award Foundation's Fiscal
Years 2002 and 2001 Financial Statements,'' May 2003 (GAO-03-737);
Statement of Senator Craig, 149 Cong. Rec. S14939 (Nov. 17, 2003)
(Senator Craig is a member of the Board of the Congressional Award
Program).
\2\ GAO, ``Financial Audit: Congressional Award Foundation's Fiscal
Years 2002 and 2001 Financial Statements,'' May 2003 (GAO-03-737).
\3\ Letter from Steven J. Sebastian, Director, Financial Management
and Assurance, GAO, to Senator Collins, Senator Lieberman, Congressman
Boehner, and Congressman George Miller, Subject: Congressional Award
Foundation Audit and Reporting Delay, May 13, 2004.
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Recognizing the Foundation's deteriorating financial
situation, the Senate Appropriations Committee stated in its
July 15, 2004 Report to accompany S. 2666, the Legislative
Branch FY2005 Appropriations bill--
The Committee notes that the Congressional Award
program was established by Congress in 1979 to
recognize initiative, achievement and service in young
Americans and encourage volunteer and community
service. While the program has been funded entirely by
the private sector, a decrease in donations and income
has forced cutbacks in the program. The Congressional
Award Board is due to be reauthorized later this year.
The Committee will consider funding for this program in
the future based on reauthorization legislation, but
anticipates any such funding will not supplant private
donations.\4\
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\4\ Senate Committee on Appropriations, Report to accompany S.
2666, Legislative Branch Appropriations, 2005, S. Rep. 108-307, July
15, 2004, at pages 44-45.
Senator Craig has advised the Governmental Affairs Committee
that, when S. 2639 is considered by the Senate, he intends to
offer an amendment authorizing an appropriation to the Board of
$750,000 for each fiscal year through 2009, an amount that
would cover between one-third and one-half of the Foundation's
anticipated budget.
III. Legislative History
S. 2639 was introduced by Senators Lieberman and Collins on
July 13, 2004, and was referred to the Committee on
Governmental Affairs. On July 21, 2004, the Committee
considered S. 2639 and ordered the bill reported by voice vote
without amendment. Senators present: Senators Collins,
Voinovich, Specter, Fitzgerald, Lieberman, Akaka, Durbin,
Carper, and Lautenberg.
IV. Section-by-Section Analysis
Section 1, the only section of the bill, is entitled
``Reauthorization of the Congressional Award Act.''
Subsection (a) amends the Congressional Award Act to extend
for 5 years the Comptroller General's responsibility to assess
the fiscal controls and accounting procedures of the
Congressional Award Program. Under section 104(c)(1) of the Act
(2 U.S.C. Sec. 804(c)(1)), as amended, the Director of the
Board is responsible for ensuring that appropriate procedures
for fiscal control and fund accounting are established for the
Program, that operations are administered by personnel who are
expert in accounting and financial management, and that the
Board's liabilities not exceed its assets for any fiscal year.
Under section 104(c)(2)(A) of the Act (2 U.S.C.
Sec. 804(c)(2)(A)), as amended, the Comptroller General must
determine whether the Director has substantially complied with
these requirements and must include his findings in annual
reports to Congress. This subsection extends these
responsibilities of the Comptroller General through calendar
year 2009.
Subsection (b) amends the Congressional Award Act to extend
for 5 years the existence of the Board. Under section 108 of
the Act (2 U.S.C. Sec. 808), as amended, the Board is now set
to expire on October 1, 2004. This subsection extends the
existence of the Board until October 1, 2009.
Subsection (c) makes non-substantive technical corrections
to the Act.
V. Estimated Cost of Legislation
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 28, 2004.
Hon. Susan M. Collins,
Chairman, Committee on Governmental Affairs,
U.S. Senate, Washington, DC.
Dear Madam Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2639, a bill to
reauthorize the Congressional Award Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Elizabeth Robinson,
(For Douglas Holtz-Eakin, Director).
Enclosure.
S. 2639--A bill to reauthorize the Congressional Award Act
S. 2639 would reauthorize the Congressional Award Act for
fiscal years 2005 through 2009. The Congressional Award Program
recognizes excellence in public service and personal
development among young people. The program is overseen by the
Congressional Award Board, a nonprofit organization that
receives no federal funding.
CBO estimates that implementing S. 2639 would cost less
than $500,000 a year, assuming the availability of appropriated
funds. In addition, by requiring the U.S. Mint to design and
strike medals at the request of the Congressional Award Board,
S. 2639 would increase direct spending by less than $500,000 a
year.
Under S. 2639, the Congressional Award Board would continue
to receive in-kind services from the federal government. Those
services consist of free office space in the Ford House Office
Building, including maintenance and utilities, and the
performance of an annual audit by the Government Accountability
Office. CBO estimates that the board's continued use of such
services would cost less than $500,000 a year in appropriated
funds.
In addition, young people recognized by the Congressional
Award Program are awarded medals produced by the U.S. Mint.
Based on information from the board and the Mint, CBO estimates
that reauthorizing the program would increase direct spending
from the U.S. Mint Public Enterprise Fund by less than $500,000
annually.
S. 2639 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Matthew
Pickford. This estimate was approved by Peter H. Fontaine,
Deputy Assistant Director for Budget Analysis.
VI. Evaluation of Regulatory Impact
Pursuant to the requirements of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory impact of this bill. The enactment of
this legislation will not have a significant regulatory impact.
VII. Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic and existing law, in which no
change is proposed, is shown in roman):
Congressional Award Act, as amended, Pub. L. 96-114, Nov. 16, 1979
Sections 103, 104, and 108, as codified at 2 U.S.C. Sec. Sec. 803, 804,
and 808
UNITED STATES CODE
TITLE 2, THE CONGRESS
CHAPTER 19--CONGRESSIONAL AWARD PROGRAM
Subchapter I--Congressional Award Program
Sec. 803. Board organization
* * * * * * *
(b) Terms of Appointed Members; Reappointment.--
(1) Appointed members of the Board shall continue to
serve at the pleasure of the officer by whom they are
appointed, and (unless reappointed under paragraph (3))
shall serve for a term of 4 years.
(2) For the purpose of adjusting the terms of Board
members to allow for staggered appointments, the
following distribution of Board terms shall take effect
at the first meeting of the Board occurring after
November 6, 1990:
(A) Those members who have served 10 years or
more, as of the date of such meeting, shall
have an appointment expiring on a date 2 years
from October 1, 1990.
(B) Those members who have served for 6
months or less, as of the date of such meeting,
shall have an appointment expiring on a date 6
years from October 11, 1990.
(C) All other members shall apportion the
remaining Board positions between equal numbers
of 2 and 4 year terms (providing that if there
are an unequal number of remaining members,
there shall be a predominance of 4 year terms),
such apportionment to be made by lot.
(3)(A) Subject to the limitations in subparagraphs
(B) and (C) of this paragraph, members of the Board may
be reappointed, provided that no member may serve more
than 2 consecutive terms.
(B) Members of the Board covered under paragraph
(2)(A) of this [section] subsection shall not be
eligible for reappointment to the Board. Members of the
Board covered under subparagraphs (B) and (C) of
paragraph (2) of this [section] subsection may be
reappointed for 1 additional consecutive 4 year term.
* * * * * * *
Sec. 804. Administration
* * * * * * *
(c) Requirements Regarding Financial Operations;
Noncompliance With Requirements.--
(1) The Director shall, in consultation with the
Board, ensure that appropriate procedures for fiscal
control and fund accounting are established for the
financial operations of the Congressional Award
Program, and that such operations are administered by
personnel with expertise in accounting and financial
management. Such personnel may be retained under
contract. In carrying out this paragraph, the Director
shall ensure that the liabilities of the Board do not,
for any calendar year, exceed the assets of the Board.
(2)(A) The Comptroller General of the United States
shall determine, for calendar years 1993, 1994, 1995,
1996, 1997, 1998, 1998, 1999, 2000, 2001, 2002, 2003,
[and 2004] 2004, 2005, 2006, 2007, 2008, and 2009,
whether the Director has substantially complied with
paragraph (1). * * *
* * * * * * *
Sec. 808. Termination
The Board shall terminate [October 1, 2004] October 1,
2009.