[Senate Report 109-87]
[From the U.S. Government Publishing Office]
109th Congress Report
SENATE
1st Session 109-87
_______________________________________________________________________
Calendar No. 136
CONGRESSIONAL AWARD ACT
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
S. 335
TO REAUTHORIZE THE CONGRESSIONAL AWARD ACT
June 23, 2005.--Ordered to be printed
COMMITTEE ON HOMELAND SECURITY AND 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
TOM COBURN, Oklahoma THOMAS R. CARPER, Delaware
LINCOLN D. CHAFEE, Rhode Island MARK DAYTON, Minnesota
ROBERT F. BENNETT, Utah FRANK LAUTENBERG, New Jersey
PETE V. DOMENICI, New Mexico MARK PRYOR, Arkansas
JOHN W. WARNER, Virginia
Michael D. Bopp, Staff Director and Chief Counsel
Amy L. Hall, Professional Staff Member
Joyce A. Rechtschaffen, Minority Staff Director and Counsel
Lawrence B. Novey, Minority Counsel
Trina D. Tyrer, Chief Clerk
C O N T E N T S
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Page
I. Purpose and Summary........................................... 1
II. Background................................................... 1
III. Legislative History......................................... 3
IV. Section-by-Section Analysis.................................. 3
V. Estimated Cost of Legislation................................. 4
VI. Evaluation of Regulatory Impact.............................. 5
VII. Changes in Existing Law..................................... 5
Calendar No. 136
109th Congress Report
SENATE
1st Session 109-87
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CONGRESSIONAL AWARD ACT
_______
June 23, 2005.--Ordered to be printed
_______
Ms. Collins, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
[To accompany S. 335]
The Committee on Homeland Security and Governmental
Affairs, to whom was referred the bill (S. 335) to reauthorize
the Congressional Award Act, having considered the same reports
favorably thereon without amendment and recommends that the
bill do pass.
I. Purpose and Summary
S. 335 reauthorizes the Congressional Award Program through
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
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 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. In fiscal year 2004, 1,343 participants were
recognized with certificates, and 858 received medals,
including 164 who earned gold medals. The Program is very
popular, with more than 20,000 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--six 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 Cubin, 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 also
receives a small amount of in-kind services from the federal
government. As patrons of the Congressional Award program, the
U.S. Congress provides office space in a House Office Building
and an annual audit by the Government Accountability Office
(GAO); moreover, the award medals are designed and struck by
the U.S. Mint.\1\
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\1\ In the cost estimate prepared by the Congressional Budget
Office (CBO) for S. 335, CBO estimated that the Board's use of House
Office Building space and services costs less than $500,000 a year, and
the U.S. Mint's production of Congressional Award medals costs less
than $500,000 a year. These costs are under the threshold below which
CBO does not report more precise estimates. Estimates provided by the
U.S. Mint indicate that its costs are under $50,000 annually.
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GAO has reported that the Foundation, which sustains itself
with private donations, has faced increasing financial
difficulty in recent years.\2\ 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.\3\ Thus,
cash contributions decreased from over $1 million in fiscal
year 1999 to about $600,000 in fiscal year 2003. In the most
recent financial audit report for the Foundation, issued in
November 2004, 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.\4\ In its plan to deal with this deteriorating
financial condition, the Foundation has significantly cut
operating expenses, from over $1,700,000 in fiscal year 2002 to
$760,000 in fiscal year 2003, to under $500,000 in fiscal year
2004. The plan also calls for a modified approach to
fundraising. The Foundation has recently begun holding more
frequent but smaller and less expensive fundraising events, and
is undertaking other efforts to keep current and former donors
better informed and engaged in the award program's activities.
It is too soon to know the outcome of these efforts, but the
Foundation believes the trends are favorable.
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\2\ GAO, ``Financial Audit, Congressional Award Foundation's Fiscal
Years 2003 and 2002 Financial Statements,'' November 2004 (GAO-05-132).
\3\ Id.; Statement of Senator Craig, 149 Cong. Rec. S14939 (Nov.
17, 2003) (Senator Craig is a member of the Board of the Congressional
Award Program).
\4\ GAO, ``Financial Audit, Congressional Award Foundation's Fiscal
Years 2003 and 2002 Financial Statements,'' November 2004 (GAO-05-132).
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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. Public Law 106-63 extended the Act for 5 years, until
October 1, 2004. On September 14, 2004, the Committee on
Governmental Affairs reported a bill, S. 2639, to reauthorize
the Act for 5 additional years, until October 1, 2009. The
Senate passed the bill by unanimous consent on September 29,
but the House did not act on the legislation before the end of
the 108th Congress.
The Congressional Award Program is very popular and
continues to grow rapidly. The number of Program participants
has more than doubled over a recent 4-year period, from
approximately 8,000 in 2001 to over 20,000 at present. 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, at minimal cost to the taxpayer,
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.
The Committee therefore supports and recommends reauthorization
of the Program.
III. Legislative History
S. 335 was introduced on February 9, 2005 by Senator
Lieberman and is cosponsored by Chairman Collins and Senators
Baucus and Craig. The bill was referred to the Committee on
Homeland Security and Governmental Affairs, and on April 13,
2005, the Committee considered the bill and by voice vote
ordered it reported favorably without amendment. Present
wereSenators Akaka, Carper, Chafee, Coburn, Coleman, Collins,
Lautenberg, Lieberman, Levin, and Warner.
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 expired on
October 1, 2004. Paragraph (1) of subsection (b) extends the
existence of the Board until October 1, 2009, and paragraph (2)
of this subsection is a savings provision, affirming the
effectiveness of the Board's actions under the Act from October
1, 2004, until the date on which this reauthorization is
enacted.
Subsection (c) makes non-substantive technical corrections
to the Act.
V. Estimated Cost of Legislation
S. 335--A bill to reauthorize the Congressional Award Act
S. 335 would reauthorize the Congressional Award Act
through fiscal year 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. 335 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. 335 would increase direct spending by less than $500,000 a
year.
Under S. 335, 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. 335 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
(a) Membership; Composition; Appointment Criteria;
Derivation of Appointment--
(1) The Board shall consist of 25 members, as
follows:
(A) Six members appointed by the majority
leader of the Senate, 1 of whom shall be a
recipient of the Congressional Award.
(B) Six members appointed by the minority
leader of the Senate, 1 of whom shall be [a a
local] a local Congressional Award program
volunteer.
(C) Six members appointed by the Speaker of
the House of Representatives, 1 of whom shall
be [a a local] a local Congressional Award
program volunteer.
(D) Six members appointed by the minority
leader of the House of Representatives, 1 of
whom shall be a recipient of the Congressional
Award.
(E) The Director of the Board, who shall
serve as a nonvoting member.
* * * * * * *
(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, 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.