EXEQ BX CCOUNTING CLASSIFICATION This statement of recommended apportionment action and request for the allocation of funds necessary for the accomplishment of the program activitie for which I responsible is a summarization by quarterly time periods of my financial plan resource schedules. REQUESTING THE SPACE BELOW IS FOR USE BY THE OASA The Bureau of the Budget has apportioned the funds as recommended or adjusted. Such finds are regulation. TO BE COMPLETED AMENDMENT NO. 79 (authorized signature) DATE OL FORM 1-182 NOTIFICATION AND APPROVAL IS HEREBY GIVEN FOR THE ALLOTMENT DESCRIBED BELOW: HIS ALLOTMENT SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICY AND REGULATION. FUNDS WHICH BECOME AVAILABLE UNDER A CONTINUING RESOLUTION ACT, OR A "HIS ALLOTMENT SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICY AND REGULATION. MERITS OF LEASING EQUIPMENT Mr. FARNUM. One other question on the last page the comment by GAO is on whether or not you lease outright mechanized systems, or whether you have lease-purchase. I would like to ask this question: In relation to the position of the Department where you feel it is better to lease rather than to purchase, in your lease agreements have you had the advantage of any technological improvements in the use of this equipment that came about during the term of the lease? In other words, if they come out with a method that is faster and can give you more information and do it better during the course of your lease, would they step the equipment up so you could have the advantage of this improvement? Mr. WERTS. Not as much as they should have. We can give you a better answer, but it has not been as good as it should have been. Secretary WIRTZ. We shall answer that for the record. Mr. FARNUM. The criticism of the auditors in terms of efficiency in the use of dollars can well be substantiated if you do not have this written into a lease agreement, because if you are not going to be updating, really the equipment that you are paying for all the time is amortized many times during the lease, and you are still using the same old, antiquated equipment as a result of technological changes that happen each day. I would hope you could answer that for the record. Secretary WIRTZ. We will complete the record on that. (The requested information follows:) TECHNOLOGICAL IMPROVEMENTS IN LEASED ADP EQUIPMENT The General Services Administration negotiates Government-wide contracts with each computer manufacturer. Included in these contracts is the right of any agency to have full benefits from technological improvements made by the manufacturer. This relates to both equipment components and to programing improvements. The Department of Labor on a number of occasions has taken full advantage of improved equipment technology and has increased substantially the capability of its computer system. The reaction time for computer manufacturers in responding to the Department's requests for upgrading the capability of existing installations has always been excellent. Mr. FOGARTY. Mr. Secretary, I think you have done a really good job in your presentation this year. Again I want to say I understand the problems you had a year ago when I was not so kind. I think you have done a really good job this year. You are one of the best Secretaries we have had. Secretary WIRTZ. Thank you. Mr. Chairman, I wish to acknowledge the fine work done by Jim Hudson in assisting me in preparing the statement and other materials I have presented today. Mr. FOGARTY. Mr. Hudson is a really good man and does an excellent job as budget officer. James Dodson, I thought, was one of the best budget officers in the Government, also. You have had two really good men in the years I have been here." Thank you, gentlemen. The committee will stand adjourned until tomorrow morning. THURSDAY, FEBRUARY 3, 1966. MANPOWER ADMINISTRATION WITNESSES STANLEY H. RUTTENBERG, MANPOWER ADMINISTRATOR HUGH C. MURPHY, ADMINISTRATOR, BUREAU OF APPRENTICE- MARGARET E. THOMAS, ACTING ASSISTANT MANPOWER ADMINISTRATOR FOR ADMINISTRATION H. H. PREZLOMSKI, CHIEF, DIVISION OF ON-THE-JOB TRAINING, BUREAU OF APPRENTICESHIP AND TRAINING ALFRED M. ZUCK, ACTING DEPUTY ASSISTANT MANPOWER ADMINISTRATOR FOR ADMINISTRATION V. S. HUDSON, DEPUTY ASSISTANT SECRETARY FOR ADMINISTRATION RICHARD E. MILLER, DIRECTOR, OFFICE OF BUDGET ADMINISTRATION DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE JAMES CLARKE, ASSISTANT TO THE UNDER SECRETARY FRANCIS KEPPEL, ASSISTANT SECRETARY FOR EDUCATION DR. HOWARD MATTHEWS, DIRECTOR, MANPOWER DEVELOPMENT AND TRAINING, OFFICE OF EDUCATION JOSEPH G. KEEN, BUDGET OFFICER, OFFICE OF EDUCATION |