Implementation of this plan will afford the following advantages to the agency:

1. Consolidate all administrative, management, and comptroller functions under one office for more effective administration and coordination.

2. Minimize fragmentation of organization at the top level.

3. Reduce the span of control for the Administrator.

4. Reduce the number of assistant administrator positions.

Approved plans call for implementation to be effected in early 1971, and accomplished within the present ceiling and funding limitations.

Accounting approved

The SBA's accounting system was approved in August 1970, by the Comptroller General as being adequate and in conformity in all material respects with prescribed principles, standards, and related requirements.

The approval represented a significant achievement in the area of financial management for the agency, and followed the installation of highly automated systems for revolving funds and appropriation accounting.

The agency also consolidated a major portion of the Washington fiscal examination disburesment function with the Denver fiscal office, resulting in annual savings of more than $100,000.

During the year, a study was conducted of existing loan processing for the purpose of streamlining and standardizing procedures throughout the agency.

A detailed examination made in several SBA field offices revealed significant variations existing in the paper flow methods. A procedural model for processing business loan applications was developed and pilot-tested in the SBA Baltimore office for 3 months. It provided more effective scheduling and control of actions and allowed some actions to be performed simultaneously, rather than sequentially. The Baltimore test indicated a reduction of processing time in a range of 50 to 65 days, compared with the previous 50 to 112 days.

The Office of Financial Assistance approved the new procedures and began implementing them agency-wide.

New Regional Network

Administratively, the SBA underwent a complete realinement and reorganization of its field structure, in compliance with a Presidential directive ordering uniform geographical boundaries in the Federal system.

Two new regional offices were created-Seattle and Kansas City-and added to New York, Boston, Philadelphia, Atlanta, Chicago, Dallas, Denver, and San Francisco. Field Offices were in operation in each of the 50 States and the District of Columbia, Guam, and Puerto Rico.