governments, quasi-governmental bodies, and private organizations in their capacity as recipients under, or administrators for, federal aid programs that are financed by loans, advances, grants, and contributions. The interest of the GAO also extends to certain activities of those parties that have negotiated contracts with the government. The audit activities of the GAO also include examining and settling accounts of the certifi- cation, disbursement, and collection officers of the federal government, including determina- tions involving accountability for improper or illegal expenditures of public funds. Balances that the comptroller general certifies are binding GAO’s Organizational Chart Congressional Relations Opportunity and Inclusiveness Inspector General Strategic Planning and External Liaison General Counsel Deputy General Counsel/ Ethics Counselor Managing Associate G.C. Goal 1 Managing Associate G.C. Goal 2 Managing Associate G.C. Goal 3 Managing Associate G.C. Legal Services Managing Associate G.C. Procurement Law Chief Operating Officer Chief Administrative Officer/CFO Strategic Issues Natural Resources and Environment Information Technology Financial Management and Assurance Defense Capabilities and Management Teams Acquisition and Sourcing Management Applied Research and Methods Legend: CFO - Chief Financial Officer The Executive Committee Indicates a support or advisory relationship with the teams/units rather than a direct reporting relationship Note: Everyone listed on this table, other than the Comptroller General, is an SES level manager. Also, with the exception of the Comptroller General of the United States, the Chief Operating Officer, the Chief Administrative Officer, the Deputy Chief Administrative Officer, the Inspector General, and the General Counsel, all managers are titled “Managing Director.” Education, Workforce, and Income Security Financial Markets and Community Investment Homeland Security and Justice International Affairs and Trade Physical Infrastructure Managing Associate G.C. Mission and Operations Public Affairs Comptroller General of the United States Field Operations Quality and Continuous Improvement Health Care Forensic Audits and Special Investigations Unit Human Capital Information Systems and Technology Services Professional Development Program Knowledge Services Controller/ Administrative Services Deputy Chief Administrative Officer ILLUSTRATION BY GGS CREATIVE RESOURCES. REPRODUCED BY PERMISSION OF GALE, A PART OF CENGAGE LEARNING. GALE ENCYCLOPEDIA OF AMERICAN LAW, 3 RD E DITION 58 GENERAL ACCOUNTING OFFICE on the EXECUTIVE BRANCH; however, any settled account can be reviewed on motion by the comptroller general or another interested party. In its audit work, the GAO makes recom- mendations for greater economy and efficiency in government operations and for improving the effectiveness of government programs. Within this audit authority is a responsibility to report significant matters to Congress for information and use in carrying out its legislative and executive branch surveillance functions. Accounting The comptroller general has the following statutory responsibilities with respect to the accounting systems of federal agencies: n Prescribe the accounting principles, stan- dards, and related requirements to be followed by the agencies n Cooperate with federal agen cies in devel- oping their accounting systems n Approve agency accounting systems when they are deemed adequate and meet pre- scribed principles, standards, and related requirements n Review, from time to time, agency account- ing systems in operation n Conduct—jointly with the Office of Management and Budget, the TREASURY DEPAR TM E NT , and the Office of Personnel Management—a continuous program to improve accounting and financial report- ing in the federal government By law, the comptroller general cooperates with the secretary of the Treasury and the director of the Office of Management and Budget in developing for use by all federal agencies standardized information and data- processing systems and also standard terminol- ogy, definitions, classifications, and codes for federal fiscal, budgetary, and program-related data and information. Legal Services and Decisions The legal work of the GAO is centered at the headquarters office in its Office of the General Counsel. The comptroller general makes final deter- minations as to the legality of actions taken by federal departments and agencies with regard to accountability for the use of public funds. These determinations are made in connection with actions that are already taken and on an advance basis upon request by certain responsible officers of the government. Decisions of the comptroller general concerning the legality of payments may arise from the audit work of the GAO or may be applied for by the heads of departments or agencies or by certifying and disbursing officers with regard to payments to be made or as a result of congressional inquiries. The comptroller general also considers questions that arise in connection with the award of government contracts and certain contracts under government grants. Statutory and regulatory procedures precisely define the manner in which these government awards are to be made, and those competing for such awards who believe that requirements have not been met in any particular instance may apply to the comptroller general for a determination. The legal work of the GAO also covers a wide range of advisory services: to Congress, its committees, and members, with respect to the legal effect of statutory provisions and implica- tions of proposed legislation as well as assistance in drafting legislation; to the JUSTICE DEPARTMENT, primarily in the form of litigation reports on court cases generated by, or related to, the work of the GAO; and to the courts in connection with cases involving the award of government contracts. In addition, there is daily coordina- tion between the staff of the Office of the General Counsel and the audit and operating staffs with regard to the legal consequences of issues raised in the course of reviews of government activities. Claims Settlement and Debt Collection The GAO settles claims by and against the United States as required by law. Claims may involve individuals; business entities; or foreign, state, and municipal governments as claimant or debtor. Settlement of these claims by the GAO is binding upon executive branch agen- cies. However, the comptroller general may review any settled claim on his or her own initiative or at the request of an interested party. Claimants and debtors have further recourse to the Congress or to the courts. Where an administrative agency has been unable to collect a debt due the government, the debt is certified to the GAO as uncollectible. After determining the amount due the United States, the GAO superintends its recovery, and ultima- tely makes final settlement and adjustment. GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION GENERAL ACCOUNTING OFFICE 59 Energy Data Verification Under the Energy Policy and Conservation Act (42 U.S.C.A. 6201), approved December 22, 1975, the comptroller general is empowered to conduct verification examinations of energy- related information developed by private busi- ness concerns under certain circumstances delineated in the act. For the purpose of carrying out this authority, the comptroller general may issue subpoenas, require written answers to INTERROGATORIES, administer oaths, inspect business premises, and inspect and copy specified books and records. Certain enforce- ment powers are provided, including, for some types of noncompli ance, the power to assess civil penalties and to collect such penalties through CIVIL ACTION. Rules, Regulations, and Decisions The comptroller general makes such rules and regulations as deemed necessary for carrying on the work of the GAO, including those for the admission of attor neys to practice before it. Under the SEAL of the office, he or she furnishes copies of records from books and proceedings thereof, for use as EVIDENCE in accordance with the act of June 25, 1948 (62 Stat. 946; 28 U.S.C.A. 1733). The GAO Personnel Act of 1980 (94 Stat. 27; 31 U.S.C.A. 52–1), approved February 15, 1980, requires the comptroller general to establish an independent personnel manage- ment system for employees of the GAO. The system would not be subject to regulation or oversight of executive branch agencies. Employ- ee rights, such as appeals from adverse actions, are protected by creation of a GAO Personnel Appeals Board. The GAO “Policy and Procedures Manual for Guidance of Federal Agencies” is the official medium through which the comptroller general promulgates principles, standards, and related requirements for accounting to be observed by the federal departments and agencies; uniform procedures for use by the federal agencies; and regulations governing the relationships of the GAO with other federal agencies and with individuals and private concerns DOING BUSINESS with the federal government. All decisions of the comptro ller general of general import are published in monthly pamphlets and in annual volumes. GAO Reports As required by law, a list of GAO reports issued or released during the previous month is furnished monthly to Congress, its committees, and its members. Copies of GAO reports are provided without charge to members of Congress and congressional committee staff members; offi- cials of federal, state, local, and foreign govern- ments; members of the press; college libraries, faculty members, and students; and nonprofit organizations. Since the late 1990s the GAO has worked to place more information on its web site. It has placed a large archive of its reports online and publishes current reports. These include legal decisions, opinions, and a vast array of resources to help both federal agencies and the general public. In addition, it has placed its bid- protest DOCKET online and has established FraudNet, which allows persons to file allega- tions of government FRAUD online and it has established an email hotline for reporting small business fraud and abuse. FURTHER READINGS General Accounting Office Website. Available online at www.gao.gov (accessed May 25, 2009). CROSS R EFERENCES Congress of the United States; Federal Budget; Office of Management and Budget; Treasury Department. GENERAL AGREEMENT ON TARIFFS AND TRADE The GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) originated with a meeti ng of 22 nations meeting in 1947 in Geneva, Switzerland. By 2000 there were 142 member nations, with another 30 countries seeking admission. The detailed commitments by each country to limit tariffs on particular items by the amount negotiated and specified in its tariff schedule is the central core of the GATT system of international obligation. The obligations relatin g to the tariff sche- dules are contained in Article II of GATT. For each COMMODITY listed on the schedule of a country, that country agrees to charge a tariff that will not exceed an amount specified in the schedule. It can, if it wishes, charge a lower tariff. GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION 60 GENERAL AGREEMENT ON TARIFFS AND TRADE The World Trade Organization (WTO) heavily influences the workings of the GATT treaties through the efforts of various commit- tees. Representatives of member countries of the WTO comprise the Council for the Trade in Goods (Goods Council), which oversees the work of 11 committees responsible for oversee- ing the various sectors of GATT. The commit- tees focus on such issues as agriculture, sanitary measures, subsidies, customs valuation, and rules of origin. FURTHER READINGS Bagwell, Kyle, and Robert W. Staiger. 2002. The Economics of the World Trading System. Cambridge, MA: MIT Press. Irwin, Douglas A., Petros C. Mavroidis, and Alan O. Sykes. 2009. The Genesis of the GATT. New York: Cambridge Univ. Press. World Trade Organization Web site. 2009. Available online at http://www.wto.org/ (accessed September 3, 2009). CROSS REFERENCES Commodity; Tariff. GENERAL APPEARANCE The act by which a defendant completely consents to the jurisdiction of the court by appearing before it either in person or through an authorized representative thereby waiving any jurisdictional defects that might be raised except for that of the competency of the court. A GENERAL APPEARANCE differs from a SPECIAL APPEARANCE in which a DEFENDANT agrees to submit to the JURISDICTION of the court for a restricted purpose, such as to test whether the SERVICE OF PROCESS made upon him or her was legally sufficient. GENERAL AVERAGE LOSS General average loss refers to the distribution of maritime loss among various interests of vessels and cargo. The general average rules apply to losses that are incurred for the common benefit of participants in a maritime venture. These rules establish that losses should be shared ratably by those who participate in a venture. The doctrine of GENERAL AVERAGE LOSS is based on the principle that a voluntary sacrifice of a portion of the ship or cargo to save the remaining property and lives should be made good by all interests exposed to the common peril and saved by the sacrifice. General average loss is the opposite of PARTICULAR AVERAGE LOSS, which applies when a sacrifice was made for a separate interest or for a reason other than the common benefit of vessel and cargo. CROSS REFERENCES Admiralty and Maritime Law. GENERAL CREDITOR An individual to whom money is due from a debtor, but whose debt is not secured by property of the debtor. One to whom property has not been pledged to satisfy a debt in the event of nonpay- ment by the individual owing the money. GENERAL EXECUTION A court order commanding a public official, such as a sheriff, to take the personal property of a defendant to satisfy the amount of a judgment awarded against such defendant. When such officer is given the authority to seize only particular property or types of property, the writ or order is sometimes known as a special execution. GENERAL INTENT In criminal law and tort law, a mental plan to do that which is forbidden by the law. Unlike offenses that require a SPECIFIC INTENT , it is not necessary that the ACCUSED intend the precise harm or result. It is sufficient if the person meant to do the act that caused the harm or result. For example, BATTERY is a GENERAL INTENT offense. If a DEFENDANT commits a battery that results in harm to the victim, it does not matter if the defendant did not intend the harm. GENERAL JURISDICTION The legal authority of a court to entertain whatever type of case comes up within the geographical area over which its power extends. GENERAL JURISDICTION differs from special or limited JURISDICTION, which is the power of a COURT to hear only certain types of cases, or those in which the AMOUNT IN CONTROVERSY is below a certain sum or that is subject to exceptions. GENERAL LEGACY A monetary gift, payable out of the collective assets of the estate of a testator—one who makes a will—and not from a designated source. GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION GENERAL LEGACY 61 Unlike a SPECIFIC LEGACY,aGENERAL LEGACY is not subject to ADEMPTION, extinction that results when a testator revokes his or her intention to leave designated property to another either by altering the property or removing it from the estate. GENERAL SERVICES ADMINISTRATION The GENERAL SERVICES ADMINISTRATION (GSA) was established by section 101 of the FEDERAL Property and Administrative Services Act of 1949 (40 U.S.C.A. § 751). The GSA sets policy for and manages government property and records. More specifically, GSA duties include the construction and operation of buildings; procurement and distribution of supplies ; utilization and disposal of property; manage- ment of transportation, traffic, and commu- nications; and management of the government’s automatic data processing resources program. Like a large business CONGLOMERATE, the GSA conducts business in many different areas and operates on different levels of organization: the central Washington, D.C ., office, 11 regional offices, and field activities. The GSA is a large organization, the structure of which consists of several tiers of adminis- trators, offices, bureaus, and support agencies. U.S. General Services Administration White House Liaison Under the Office of the Administrator New England Region 1 Boston, MA Northeast and Caribbean Region 2 New York, NY Mid-Atlantic Region 3 Philadelphia, PA Southeast Sunbelt Region 4 Atlanta, GA The Heartland Region 6 Kansas City, MO Greater Southwest Region 7 FT. Worth, TX Rocky Mountain Region 8 Denver, CO Pacific Rim Region 9 San Francisco, CA Great Lakes Region 5 Chicago, IL Northwest/Arctic Region 10 Auburn, WA National Capital Region 11 Washington, DC Deputy Administrator National Services Regional Services Central Office Administrator Office of the Administrator Chief of Staff Federal Acquisition Service Public Buildings Service Office of Inspector General Civilian Board of Contract Appeals Office of the Chief Acquisition Officer Office of the Chief Financial Officer Office of the Chief Information Officer Office of the Chief Human Capital Officer Office of Congressional and Intergovernmental Affairs Office of Emergency Response & Recovery Office of General Counsel Office of Governmentwide Policy Office of Citizen Services and Communications Office of Performance Improvement Office of Civil Rights Office of Small Business Utilization ILLUSTRATION BY GGS CREATIVE RESOURCES. REPRODUCED BY PERMISSION OF GALE, A PART OF CENGAGE LE- ARNING. GALE ENCYCLOPEDIA OF AMERICAN LAW, 3 RD E DITION 62 GENERAL SERVICES ADMINISTRATION The first level in the HIERARCHY of the GSA consists of the administrator, the deputy admin- istrator, and the chief of staff. The administrator is the principal director for the entire organiza- tion, assisted by a deputy and chief of staff. The second tier in the GSA organization consists of four main offices: the Federal Supply Service, Federal Technology Service, Public Buildings Service, and the Office of Govern- mentwide Policy. These four offices oversee the majority of the agency’s work and collectively form the public face of the GSA. The Federal Supply Service (FSS) provides low-price, quality goods and services to federal departments and agencies. Its services include governmentwide programs for the management of transportation, mail, and travel; audits of transportation; management of a federal fleet; and management of aircraft owned or operated by civilian agencies in support of government missions. The FSS provides more than $25 billion annually in common-use goods and services to federal agencies. It emphasizes purchasing en- vironmentally safe products, and services and supplies more than 3,000 environmentally ori- ented products to the federal government, such as retread tires, shipping boxes made with recycled materials, and water-saving devices. The service also coordinates a worldwide program for the management of government property, through the Office of Property Dis- posal, which is responsible for allocating excess personal property among the agencies and donat- ing or disposing of property through public sales. The FSS Interagency Fleet Management Program controls approximately 185,000 vehi- cles, purchasing more than 58,000 new vehicles annually. The FSS also acts as the government’s civilian freight manager by providing rating and routing services to customer agencies and overnight delivery of small packages at reduced rates, and managing the postpayment AUDIT of freight and passenger transportation bills. Information Technology Service The Federal Technology Service (FTS) directs government- wide programs for automated data processing and local TELECOMMUNICATIONS equipment and services, coordinates programs for federal records and infor mation management practices, and provides in formation to the public through the Federal Information Center. The FTS helps federal agencies manage information resources through the Office of Information Technology INTEGRATION (ITI). The ITI provides assistance through three program s: the Federal Systems Integration and Manage- ment System, Federal Computer Ac quisition Center, and Federal Information System Sup- port Program. The ITS also procures automatic data processing and telecommunications hard- ware, software, and services involving informa- tion resources of governmentwide agencies. In addition to technical assistance, the service provides various management assistance programs and policies to governmentwide agencies concerning information-related func- tions and activities. It is in charge of the GSA’s governmentwide telecommunications service and assists with the interagency Informatio n Resources Management infrastructure. It also provides internal information systems manage- ment for the GSA. The FTS’s Office of Information Security supports all government activities conducting sensitive and classified national security, diplo- matic, and DEFENSE DEPARTMENT missions. Another program overseen by FTS is the Federal Information Center Program, which is a clearinghouse for information about the federal government. The center answers ques- tions regarding government programs and refers people to the appropriate agency. Depending upon their geographic location, residents may be able to access the center through a toll-free telephone number. Another resource, the Federal Domestic Assistance Catalog Program, provides information on federally operated programs that offer domestic assistance, such as loans, grants, and INSURANCE, to interested persons. The FTS also offers the Federal Information Relay Service to help hearing-impaired and speech-impaired individuals communicate with the government. The service manages numerous programs that maintain information on equip- ment, goods, and services bought by the govern- ment. The information is available to the public. The Public Buildings Service (PBS) designs, builds, leases, repairs, and maintains approxi- mately 7,300 federally controlled buildings in the United States. The service is also responsible for property management information systems throughout the government and for the main- tenance of public utilities and their costs. GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION GENERAL SERVICES ADMINISTRATION 63 The Office of Governmentwide Policy (OGP) functions to ensure that governmentwide policies allow and encourage agencies to develop and utilize the best, most cost effective management practices for the conduct of their specific programs. The OGP consolidates GSA govern- mentwide policy-making activities within one central office. These activities include the government’s plans for acquiring some $200 billion per year in goods and services, the $8 billion a year the government spends on government travel, and the tens of billions of dollars spent each year on internal administrative management systems. The OGP is focused on re- engineering the traditional policy development model to emphasize collaborative development. The third tier in the organizational structure of the GSA contains 11 regional offices: New England Region, Northeast and Caribbean Re- gion, Mid-Atlantic Region, Southeast Sunbelt Region, Great Lakes Region, The Heartland Region, Greater Southwest Region, Rocky Moun- tain Region, Pacific Rim Region, Northwest/ Arctic Region, and the National Capitol Region. These offices are distributed to facilitate the work of the GSA in diverse areas of the country. The fourth level in the structural hierarchy of the GSA consists of ten offices that support all GSA services: the Offices of the Chief Financial Officer, Office of the Chief People Officer, Office of Congressional & Interg overn- mental Affairs, Office of Services and Commu- nications, Office of the Chief Information Officer, Office of Small Business Utilization, Office of Performance Improvement, Office of General Counsel, Office of CIVIL RIGHTS, Office of Inspector General, along with the GSA Board of Contract Appeals. The Office of Portfolio Management man- ages all aspects of the portfolio management business line at the national level. FURTHER READINGS General Services Administration. 2003. U.S. General Services Administration Guide to Federal Government Sales. Washington, D.C.:.U.S. Independent Agencies and Commissions. U.S. General Services Administration. Available online at http://www.gsa.gov (accessed July 25, 2009). U.S. Government Manual Website. Available online at http:// www.gpoaccess.gov/gmanual/index (accessed July 21, 2009). CROSS REFERENCES Personal Property; Telecommunications. GENERAL TERM A sitting of the court en banc, with the participation of the entire membership of the court rather than the regular quorum. A phrase used in some jurisdictions to signify the ordinary session of a court during which the trial determin- ation of actions occur. GENERAL TERM is distinguishable from SPECIAL TERM , in that the latter entails the HEARING of motions, which are applications for court orders, arguments, the DISPOSITION of various types of formal business, or the trial of a special list or class of cases. GENERAL VERDICT A decision by a jury that determines which side in a particular controversy wins, and in some cases, the amount of money in damages to be awarded. GENERAL WARRANTY DEED Another name for a WARRANTY DEED. GENERAL WELFARE The concern of the government for the health, peace, morality, and safety of its citizens. Providing for the WELFARE of the general public is a basic goal of government. The PREAMBLE to the U.S. Constitution cites promo- tion of the GENERAL WELFARE as a primary reason for the creation of the Constitution. Promotion of the general welfare is also a stated purpose in state constitutions and statutes. The concept has sparked controversy only as a result of its inclusion in the body of the U.S. Constitution. The first clause of Article I, Section 8, reads, “The Congress shall have Power To lay and collect Taxes, Duties, IMPOSTS and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States.” This clause, called the General Welfare Clause or the SPENDING POWER Clause, does not grant Congress the power to legislate for the general welfare of the country; that is a power reserved to the states through the TENTH AMENDMENT. Rather, it merely allows Congress to spend FEDERAL money for the general welfare. The principle underlying this distinction—the limitation of federal power—eventually inspired the only important disagreement over the meaning of the clause. According to JAMES MADISON, the clause authorized Congress to spend money, but only GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION 64 GENERAL TERM to carry out the powers and duties specifically ENUMERATED in the subsequent clauses of Article I, Section 8, and elsewhere in the Constitution, not to meet the seemingly infinite needs of the general welfare. ALEXANDER HAMILTON maintained that the clause granted Congress the power to spend without limitation for the general welfare of the nation. The winner of this debate was not declared for 150 years. In United States v. Butler, 56 S. Ct. 312, 297 U.S. 1, 80 L. Ed. 477 (1936), the U.S. Supreme Court invalidated a federal agricultural spend- ing program because a specific congressional power over agr icultural production appeared nowhere in the Constitution. According to the Court in Butler, the spending program invaded a right reserved to the states by the Tenth Amendment. Though the Court decided that Butler was consistent with Madison’s philosophy of limited federal government, it adopted Hamilton’s INTERPRETATION of the General Welfare Clause, which gave Congress broad powers to spend federal money. It also established that determi- nation of the general welfare would be left to the discretion of Congress. In its opinion, the Court warned that to challenge a federal expense on the ground that it did not promote the general welfare would “naturally require a showing that by no reasonable possibility can the challenged legislation fall within the wide range of discre- tion permitted to the Congress.” The Court then obliquely confided, “[H]ow great is the extent of that range we need hardly remark.”“[D]espite the breadth of the legislative discretion,” the Court continued, “our duty to hear and to render judgment remains.” The Court then rendered the federal agricultural spending program at issue invalid under the Tenth Amendment. With Butler as precedent, the Supreme Court’s interest in determining whether congres- sional spending promotes the general welfare has withered. In South Dakota v. Dole, 483 U.S. 203, 107 S. Ct. 2793, 97 L. Ed. 2d 171 (1987), the Court reviewed legislation allowing the secretary of transportation to withhold a percentage of federal highway funds from states that did not raise their legal drinking age to twenty-one. In holding that the statute was a valid use of congressional spending power, the Court in Dole questioned “whether ‘general welfare’ is a judicially enforceable restriction at all.” Congress appropriates money for a seem- ingly endless number of national interests, ranging from federal courts, policing, IMPRISON- MENT , and national security to social programs, environmental protection, and education. N o federal court has struck down a spending program on the ground that it failed to promote the general welfare. However, federal spending programs have been struck down on other CONSTITUTIONAL grounds. FURTHER READINGS Rosenthal, Albert J. 1987. “Conditional Federal Spending and the Constitution.” Stanford Law Review 39. Sky, Theodore. 2004. To Provide for the General Welfare: A History of the Federal Spending Power. Newark, DE: Univ. of Delaware Press. Sorenson, Leonard. 1995. Madison on the “General Welfare ” of America. New York: Rowman & Littlefield. CROSS REFERENCES Congress of the United States; Constitution of the United States; Federal Budget; Federalism. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad ACCOUNTING principles and specific practices. For example, accountants use GAAP standards to prepare financial statements. In response to the STOCK MARKET crash of 1929 and the ensuing Great Depression, Con- gress passed the SECURITIES Act in 1933 and the Securities Exchange Act in 1934. Among other things, these acts established a methodology for standardizing accounting practices among pub- licly held companies. The task of creating and maintaining accounting standards was handled by the American INSTITUTE of Certified Public Accountants (AICPA) from 1936 until 1973. In 1973, the responsibility was taken over by the Financial Accounting Standards Board (FASB), which was established the same year. The Financial Accounting Standards Advi- sory Council (FASAC ), which is composed of 33 members from both the public and private sectors, advises the FASB on matters that may affect or influence GAAP rules. These 33 individuals meet quarterly to discuss accounting GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION GENERALLY ACCEPTED ACCOUNTING PRINCIPLES 65 issues and gather information, which they then present to FASB. Essentially, FASAC serves as FASB’s sounding board. FASAC is overseen by the Financial Accounting Foundation, an inde- pendent organization whose 16-member board of trustees chooses FASAC’s 33 members. The FASB is also monitored by the Corporation Finance division of the SECURITIES AND EXCHANGE COMMISSION (SEC). Among the organizations that influence GAAP rules are the AICPA and the INTERNAL REVENUE SERVICE (IRS). Other countries have their own GAAP rules, which are set by their versions of the FASB. For example, the Canadian Institute of Chartered Accountants (CICA) sets GAAP standards in Canada. Publicly held companies are required to conform to GAAP standards. Specifically, the Securities Act and the Securities Exchange Act established a requirement that publicly held companies must undergo an external AUDIT by an independent ACCOUNTANT once per year. In the early 2000s, companies faced increased scrutiny in light of the widely publicized cases involving such major corporations as Enron and World- Com, along with the firm of Arthur Andersen, one of the world’s largest accountancy firms. In the case of Enron, for example, the company manipulated its financial information to give the appearance that revenues were much higher than they actually were. After the company declared BANKRUPTCY in 2001, Arthur Andersen came under attack because its auditors had signed off on Enron’s financials despite numerous misgivings. Andersen was found GUILTY of obstruction of justice by a jury in Houston, Texas, in June 2002. In July 2002, President GEORGE W. BUSH signed the Sarbanes-Oxley Act, which estab- lished new regulations for accounting reform and investor protection. Among the provisions of Sarbanes-Oxley was the creation of the five- member Public Company Accounting Over- sight Board, overseen by the SEC. Accounting firms that audit publicly held companies are required to register with the board, which has the authority to inspect audits. Sarbanes-Oxley also requires chief executive officers and chief financial officers of publicly held companies to provide a statement attesting to the veracity of their financial statements. FURTHER READINGS Financial Accounting Standards Board Web site. Available online at http://www.fasb.org (accessed July 26, 2009). Schilit, Howard, 2010. Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud on Financial Reports. New York: McGraw-Hill. Squires, Susan E., et al. 2003. Inside Arthur Andersen: Shifting Values, Unexpected Consequences. Upper Saddle River, NJ: Prentice-Hall. United States Securities and Exchange Commission Web site. Available online at http://www.sec.gov (accessed July 26, 2009). GENETIC ENGINEERING The human manipulation of the genetic material of a cell. GENETIC ENGINEERING involves the process of isolating individual DNA fragments, coupling them with other genetic material, and causing the genes to replicate themselves. Introducing this newly created complex to a host cell causes it to multiply and produce clones that can later be harvested and used for a variety of purposes. Current applications of the technology include, but are not limited to, medical investigations of gene structure for the control of genetic disease (particularly through antenatal diagnosis); food crop development to resist plant disease or harsh weather; the creation of new antibiotic and antiviral drugs; genetic cloning to save endangered species; and the development of sustainable energy through bio-fuels. The syn- thesis of hormones and other proteins (e.g., growth hormone and insulin), which are otherwise obtainable only in their natural state, is also of interest to scientists. International Codes and Ethical Issues for Society An international code of ethics for genetic research was first established in the World Medical Association’s Declaration of Helsinki in 1964. The guide prohibited outright most forms of genetic engineering and was accepted by numer- ous U.S. professional medical societies, including the AMERICAN MEDICAL ASSOCIATION (AMA). In 1969 the AMA promulgated its own ethical guidelines for clinical investigation, key provisions of which conflicted with the Helsinki Declaration. For example, the AMA guidelines proposed that when mentally competent adults were found to be unsuitable subjects for genetic engineering stu- dies, minors or mentally incompetent subjects could be used instead. The Helsinki Declaration did not condone testing on humans. The growth of genetic engineering in the 1970s aroused international concern, but GALE ENCYCLOPEDIA OF AMERICAN LAW, 3RD E DITION 66 GENETIC ENGINEERING governments and medical societies took only limited measures to control it. Concern focused on the production of dangerous bacterial mutants that could be used as harmful eugenics tools or WEAPONS. The Genetic Manipulation Advisory Group was established in England based on the recommendations of a prominent medical group, the Williams Committee. Scien- tists were required to consult this group before carrying out any activity involving genetic manipulation in England. Additional measures required scientific laboratories throughout the world to include physical containment labs to prevent manipulated genes from escaping and surviving in natural conditions. These policies were subsequently adopted in the United States. In 2000 a group of 138 countries, including the United States, approved the Cartagen a Protocol on Biosafety Environment. Interna- tional concerns over the handling of genetically modified organisms (GMOs) prompted the passage of the protocol. It governs such issues as the safe transfer, handling, use, and disposals of GMOs among member countries. Another area of developing law, summarized by Sonia Miller in a May 29, 2007, article in The New York Law Journal, concerns genetic privacy. With the advancement of genetic engineering technology comes the human benefit of having disease, deformity, and DISABILITY potentially eradicated, enhancing life and health expectan- cies, and a better world as a whole. However, the same innovation has the potential to be misused for purposes of creating, and perceiving as superior, “designer babies,” and genetics-based economic or social communities. Critics of the developing field warn that INSURANCE companies and employers may misuse private genetic information about individuals to discriminate. Both houses in Congress have contemplated LEGISLATION that would prohibit DISCRIMINATION on the basis of genetic information, and would extend privacy and confidentiality requirements. (See, e.g., prior legislative efforts such as the Genetic Information Nondiscrimination Act of 2007 (H.R. 493, S. 358).) The Breakdown of Regulation: Genetic Inventions and Patents in the United States In 1980 the U.S. Supreme Court created an economic incentive for companies to develop genetically engineered products by holding that such products could be patented. In Diamond v. Chakrabarty, 447 U.S. 303, 100 S. Ct. 2204, 65 L. Ed. 2d 144, the COURT held that a PATENT could be issued for a novel strain of bacteria that could be used in the cleanup of oil spills. In 1986 the U.S. DEPARTMENT OF AGRICULTURE approved the sale of the first living genetically altered organism. The virus was used as a pseudorabies vaccine, from which a single gene had been cut. Within the next year, the U.S. Patent and Trademark Office announced that non-naturally occurring, non-human, multicellular living organisms, in- cluding animals, were patentable under the Patent Act of 1952 (35 U.S.C.A. § 101). The Department of Agriculture formally became involved in genetic engineering in April 1988, when the Patent and Trademark Office issued the first animal patent, granted on a genetically engineered mouse used in cancer research. U.S. scientists began experiments with the genetic engineering of farm animals, such as creating cows that would give more milk, chickens that would lay more eggs, and pigs that would produce leaner meat. These developments only raised more objections from critics who believed that genetic experimentation on animals violated religious, moral, and ethical principles. In spite of the controversy, the U.S. House of Representatives approved the Transgenic Animal In 1997, a team of scientists at the Roslin Institute in Edinburgh, Scotland, cloned the first adult mammal, a sheep named Dolly. AP IMAGES GALE ENCYCLOPEDIA OF AMERICAN LAW, 3 RD E DITION GENETIC ENGINEERING 67 . Chief Financial Officer Office of the Chief Information Officer Office of the Chief Human Capital Officer Office of Congressional and Intergovernmental Affairs Office of Emergency Response & Recovery Office. the Offices of the Chief Financial Officer, Office of the Chief People Officer, Office of Congressional & Interg overn- mental Affairs, Office of Services and Commu- nications, Office of the. Information Officer, Office of Small Business Utilization, Office of Performance Improvement, Office of General Counsel, Office of CIVIL RIGHTS, Office of Inspector General, along with the GSA Board of