Oversight of Exchange Stabilization Fund Operations and Senate Bill 2093 to Discontinue Use of the Fund to Pay Administrative Expenses

GAO presently has no authority to audit the operations of the Exchange Stabilization Fund except for its administrative expenses. Current legislative constraints impair access to information needed to review international trade and monetary matters. An agreement has been reached with the Treasury Department that provides for GAO access to information related to their audits and reports on such matters as U.S. participation in the International Monetary Fund and debt policies toward developing countries. Information concerning highly sensitive monetary transactions affecting foreign exchange markets and other governments will not be made available to GAO. H.R. 9065 requires that salaries and other administrative expenses be paid from regular Treasury appropriations rather than from Exchange Stabilization Fund resources. The bill also provides for the Treasury Department to report to and consult with Congress concerning the Fund. S. 2093, which also makes administrative expenses of the Fund payable from regular Treasury appropriations, does not contain the oversight provisions of the House bill. These provisions ensure that all administration expenses of the Treasury Department will be handled in a consistent manner.