gram for training the field audit staff in the art of preparing work papers with clarity and specificness to assure that audit work is properly documented to support conclusions. The establishment of such a program will require an additional person to assist in the developing of guides and standards in this area and to permit a more comprehensive program of visits by headquarters staff to regional offices and site of audit operations to determine that guides, standards, and recommended actions are being followed. (2) The field branch has been plagued with progressive increases for several years in the number of grant-in-aid programs audited and the increasing size of the field staff. During this period, this headquarters staff has not increased. As a result site inspections of audit operations have been abandoned and needed revisions of audit manuals have been backlogged. A more current and immediate problem needing attention is the need for developing know-how and guides to assist the auditors in effectively furnishing to State agencies consultative services in the field of automatic data processing. An increasing number of installations by State agencies will add to our audit problems and require technical assistance. Failure to meet this problem can result in an increase in backlog. Other increases include funds for space in regional offices to house new staff requested by operating agencies for fiscal year 1963 and to meet increased travel requirement of the auditors, regional aging representatives, State merit system regional representatives, and regional directors. All these increases are essential if we are to carry out our assigned mission in each of our activities effectively, efficiently, and economically. GENERAL STATEMENT Mr. LUND. The Office of Field Administration is responsible for the operation of nine consolidated regional offices, audit of grant-inaid programs and administering the personnel and merit system provisions applicable to the grant-in-aid programs of the Department. The request for 1963 is $5,060,000 and 654 positions, an increase of $286,000 and 25 positions over 1962. Senator HILL. That takes in your office here and your regional offices, too? Mr. LUND. Yes, sir. INCREASED WORKLOADS We are continuously faced with increased workloads on all fronts making it essential that we request an increase for fiscal year 1963. For example, our regional office management activities will provide various administrative services to 20,800 field employees in 1962. fiscal year 1963, it is anticipated we will service 22,200. In To enable us to meet these increases and to correct operating deficiencies, we are requesting 20 new positions for field administration and 5 new positions for grant-in-aid audits. Of the 20 positions for field administration, 9 are program analysts to assist the regional directors and 11 are clerical positions, all for the regional offices. New and expanded programs have increased the burdens and responsibilities of the regional directors which necessitates the request for the program analysts. The 11 clerical positions are needed for our personnel and payroll units to provide essential services to the new staff being requested by the operating agencies. This new staff represents a 7-percent increase over fiscal year 1962. Our request for the grant-in-aid audit function is for five additional positions needed primarily in connection with workloads resulting from the full impact in 1963 of the Social Security Amendments of 1960, and the act relating to aid to dependent children of unemployed parents, and also to expand our training of field auditors. Our audit backlog which was 74 man-years at the end of 1961 is expected to remain about the same in 1962. We are currently reviewing our audit working procedures and schedules and directing our regional auditors to make more intensive supervisory reviews in hopes of reducing this backlog. Senator HILL. You are definitely attacking this problem of the backlog, are you not? Mr. LUND. We are attempting to; yes, sir. BUDGET BUREAU REDUCTIONS Senator HILL. Did you come out pretty well with your request to the Bureau of the Budget? Mr. LUND. We were reduced 39 positions, and a number of other items, roughly totaling $420,000. Senator HILL. They allowed you 25 new positions, and you were denied 39; is that it? Mr. LUND. That is correct, sir. We were also required to carry a reduction into fiscal year 1963 of five positions administratively reduced in fiscal year 1962. Senator HILL. Most of them, as your statement shows, are in the field? Mr. LUND. Yes. There are only a very few for the Washington office. I don't remember exactly. Senator HILL. Most of them, as your statement shows, are in the field. Is that correct? Mr. LUND. That is correct. There are only two positions requested for the central office. SURPLUS PROPERTY UTILIZATION APPROPRIATION ESTIMATE "For expenses necessary for carrying out the provisions of subsections 203 (j), (k), (n), and (o), of the Federal Property and Administrative Services Act of 1949, as amended, relating to disposal of real and personal excess property for educational purposes, civil defense purposes, and protection of public health, [$862,000] $870,000." 1. Annualization of 5 new positions authorized in 1962 for Personnel compensation_-_ Other related costs- Total_ B. Program increases: 1. Travel funds. 2. Supply funds... Subtotal, program increases_ Gross increases__. Decreases: A. Nonrecurring equipment related to new staff in 1962-- Total net change requested----- EXPLANATION OF CHANGES $862, 000 -11, 000 851, 000 870,000 +19,000 9.128 727 9, 855 9.000 2,000 11,000 20, 855 1, 855 19, 000 Travel funds An increase of $9,000 is requested to keep abreast of increased workloads requiring additional travel both in real and personal property areas. Supply funds A $2,000 increase is requested for reproduction paper needed to duplicate the tremendous number of property lists for circulation to State agencies. Personal property made available to and received by State agencies for surplus property for distribution to public health and educational institutions and civil defense organizations and real property disposed of to public health and educational institutions (acquisition cost), fiscal year 1961 Senator HILL. Do you wish to proceed with the surplus property utilization, Mr. Lund? Mr. LUND. Yes, sir, if I may. I have a capsule statement I would like to present, and I would request that the full statement be included in the record. Senator HILL. You may proceed as you wish, Mr. Lund. (The statement referred to follows:) STATEMENT BY THE DIRECTOR, OFFICE OF FIELD ADMINISTRATION, ON "SURPLUS PROPERTY UTILIZATION" Mr. Chairman and members of the committee, our request for fiscal year 1963 is $870,000 and 107 positions, which is $19,000 more than our obligational anthority for fiscal year 1962. No additional positions are requested. As you know, this program is responsible for locating and allocating real and persona. property surplus to the needs of the Government. Personal property is channeled to State surplus property agencies for distribution to eligible health, education, and civil defense units. Real property is transferred direct to eligible health and educational institutions. We are also responsible for enforcing the compliance provisions as they affect the donations and transfers, and for assuring that State agencies meet the minimum standards of operations established for this program as required by law. In fiscal year 1961, based on acquisition cost, we allocated personal property valued at over $376 million, and transferred approximately $31 million worth of real property. Furthermore, we deposited in the Treasury about $650,000 as a result of our sales, abrogation and compliance activities. To accomplish the allocation of the personal property, we processed approximately 76,000 State applications. Although the dollar value of property allocated in 1961 was a small decrease of about 6 percent from the previous year. the number of documents processed was approximately 6 percent more. The major reasons for the decrease in dollar value were: 1. A significant change in the types of property becoming available for donation, e.g., less of the common-use items and more of the technical materials which require more time to identify and adapt for use; 2. Increased efforts for Federal utilization; and 3. A change in the screening procedures which temporarily affected the volume of property available. We also handled and reported 463 compliance and utilization cases in 1961. Our real property activity included 249 new transfers for both on- and offsite uses. The total onsite transfers, which normally require physical surveys to determine suitability and program uses, increased by about 7 percent; where as, the total offsite cases decreased by 22 percent. At the end of fiscal year 1961, we had 125 compliance enforcement cases pending, of which 80 percent represented offsite cases. We assisted a number of States in revising their plans of operations, due to deficiencies noted during reviews and audits, and as a result of changes in State laws, Executive orders, and new opinions of State attorneys general. ANTICIPATED ACCOMPLISHMENTS It is estimated that we will allocate in fiscal year 1962 personal property valued at $386 million, and $405 million in fiscal year 1963. This increased performance will be brought about by the three new screeners authorized in fiscal year 1962, improved screening methods, and other new procedures. In real property, we anticipate transfers valued at $35.5 million in fiscal years 1962 and 1963. The increase over fiscal year 1961 is primarily due to the anticipated closing of certain military bases throughout the country, as announced by the Department of Defense in March 1961. To provide more staff time to meet the increasing workload, our administrative policy was revised to require physical surveys of each deed case once every 3 years, instead of annually. Standards and reviews workload will also continue to be heavy in view of the number of deficiencies noted in recent surveys and audits which will require a close working relationship with the State agencies concerned. Our cash collection activity, as a result of current developments, will exceed $1 million during this fiscal year. I would like to add, at this point, that during the period 1950 through 1961, this activity collected approximately $8 ion, as compared to $5 million appropriated. יד |