Financing: New obligational authority (proposed supplemental appropriation). 200 Under existing legislation, 1964.-It is anticipated that a supplemental appropriation will be needed to meet estimated costs in excess of currently available funds for the care of Federal prisoners in non-Federal institutions. Intragovernmental funds: FEDERAL PRISON INDUSTRIES, INCORPORATED The following corporation is hereby authorized to make such expenditures, within the limits of funds and borrowing authority available to such corporation, and in accord with the law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act, as amended, as may be necessary in carrying out the program set forth in the budget for the fiscal year [1964] 1965 for such corporation [including purchase (not to exceed ten) and hire of passenger motor vehicles], except as hereinafter provided: Program by activities: Operating costs, funded: Industrial manufacturing program: Costs of goods sold... 27,945 Administrative expense. 539 1963 actual 1964 estimate 1965 estimate Vocational training expense. 1.156 Other..... 1,249 850 875 31,349 Capital outlay: 3,958 Buildings and improvements. 2 41 Grants, subsidies, and contributions.. Machinery and equipment. 642 1,017 1,125 14 Total obligations. Total capital outlay... 2,095 2,829 2,706 Total program costs, funded. Change in selected resources Personnel Summary Total obligations............. 264 33,248 34,048 34,055 700-100-64-37 a Danbury, Conn., were discontinued during 1963. With the closing of Alcatraz, the brush factory was moved to Florence, Ariz., and the clothing and glove factories were moved to Terminal Island, Calif. During 1964 a new electronic shop will start operations at Danbury, Conn., canvas specialty shop will start operations at Sandstone, Minn. The rubber products shop at Texarkana, Tex., has been divided into two shops for efficiency of operations. During 1965, a new enterprise will start operations at Marion, Ill., and a tire reconditioning shop will open at Lompoc, Calif. This will bring the number of shops and factories to 57 at 24 locations. The following table indicates the scope of employment and training effort in the total prison program: Average number of prison inmates. Revenues and other receipts-Continued 14 37,329 329_37,500 37,500 1962 1963 1964 1965 actual actual estimate estimate 23,838 23,796 23,500 24,000 84 Capital transfer: Payment of earnings to Number of inmates for whom vocational Treasury. 12,100 12,150 -4,000 -3,500 -3,500 -13,171 | -13,116 53 52 55 57 33,248 34,048 34,055 The trend of expenditures for capital improvements is reflected in the following summary (in thousands of dollars): Georgia, Atlanta... Obligations (from program and financing). Decrease in gross unpaid obligations.... 33,248 34,048 34,055 Location CAPITAL EXPENDITURES 1963 actual Gross expenditures... 50 33,557 34,048 34,055 Increase (-) in accounts receivable, net.. Revenues and other receipts (from program and financing) California, Lompoc Applicable receipts... Budget expenditures.. ཙ 25 2 121 316 122 74 This is a wholly owned Government Corporation. A board of six directors appointed by the President controls its policies. Supervision is by the Director of the Bureau of Prisons who has jurisdiction over all industrial enterprises and vocational training programs in all Federal penal and correctional institutions. Products manufactured by inmates are sold only to the penal institutions and to other Government agencies. Earnings, in excess of operating requirements, are paid as dividends into the U.S. Treasury. Indiana, Terre Haute. Texas, Seagoville. Texas, Texarkana. tutions. Total capital expenditures.-- The Corporation is authorized, under the Attorney Machinery and equipment, various instiGeneral, to establish and operate industries in Federal penal and correctional institutions and disciplinary barracks (18 U.S.C. 4121-4128). Its objectives are to provide employment for physically fit inmates; to provide maximum voca regular institutional and industrial activivocational training for qualified inmates in ties; and to operate a placement service to assist released inmates to secure jobs. Earnings from the sale of these products pay expenses of the Corporation and have 3,053 2,095 2,829 2,706 att profit and is expects of the Corporation, which indion. Operating results. The Corporation has always operated a expected to continue to do so. Earnings general administration and vocational rehabilitation. These two activities, although financed from fund receipts are subject to annual appropriation limitations. Earn permitted payment of $51 million in dividends into the ings in excess of operating requirements are paid into the LIMITATION ON ADMINISTRATIVE AND VOCATIONAL TRAINING EXPENSES, FEDERAL PRISON INDUSTRIES, INCORPORATED Not to exceed [$650,000] $690,000 of the funds of the corporation shall be available for its administrative expenses, and not to exceed [$1,450,000] $1,490,000 for the expenses of vocational training of prisoners, both amounts to be available for services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), and to be computed on an accrual basis and to be determined in accordance with the corporation's prescribed accounting system in effect on July 1, 1946, and shall be exclusive of depreciation, payment of claims, expenditures which the said accounting system requires to be capitalized or charged to cost of commodities acquired or produced, including selling and shipping expenses, and expenses in connection with acquisition, construction, operation, maintenance, improvement, protection, or disposition of facilities and other property belonging to the corporation or in which it has an interest. (18 U.S.C. 4121-4128; Reorganization Plan No. II, pt. 1, sec. 3a, approved Apr. 3, 1939; Departments of State and Justice, the Judiciary, and Related Agencies Appropriation Act, 1964.) Program and Financing (in thousands of dollars) a Danbury, Conn., were discontinued during 1963. With the closing of Alcatraz, the brush factory was moved to Florence, Ariz., and the clothing and glove factories were moved to Terminal Island, Calif. During 1964 a new electronic shop will start operations at Danbury, Conn., canvas specialty shop will start operations at Sandstone, Minn. The rubber products shop at Texarkana, Tex., has been divided into two shops for efficiency of operations. During 1965, a new enterprise will start operations at Marion, Ill., and a tire reconditioning shop will open at Lompoc, Calif. This will bring the number of shops and factories to 57 at 24 locations. The following table indicates the scope of employment and training effort in the total prison program: Average number of prison inmates..... 1962 1963 1964 1965 actual actual estimate estimate 23,838 23,796 23,500 24,000 Changes in accepted orders on hand.. Capital transfer: Payment of earnings to Treasury.. Unobligated balance carried forward.. -4,000 -3,500 -3,500 -13,220 -13,171 -13,116 Financing applied to program.. Number of shops and factories.. 53 52 55 57 33,248 34,048 34,055 The Corporation is authorized, under the Attorney Machinery and equipment, various instiGeneral, to establish and operate industries in Federal penal and correctional institutions and disciplinary barracks (18 U.S.C. 4121-4128). Its objectives are to provide employment for physically fit inmates; to provide maximum vocational training for qualified inmates in connection with regular institutional and industrial activities; and to operate a placement service to assist released inmates to secure jobs. Earnings from the sale of these products pay expenses of the Corporation and have permitted payment of $51 million in dividends into the Treasury since January 1, 1935. It is anticipated that dividends of $3.5 million will be paid in both 1964 and 1965. Budget program. During 1963 the Corporation operated 52 shops and factories at 23 locations. The typewriter repair shops at McNeil Island, Wash., and Earnings of the fund pay expenses of the Corporation, which include 1965. Commodities for sale or manu LIMITATION ON facture.. Supplies, deferred charges, etc. Buildings and equipment, net..... 11,811 80 19,395 ADMINISTRATIVE AND VOCATIONAL TRAINING EXPENSES, FEDERAL PRISON INDUSTRIES, INCORPORATED Not to exceed [$650,000] $690,000 of the funds of the corporation shall be available for its administrative expenses, and not to exceed [$1,450,000] $1,490,000 for the expenses of vocational training of prisoners, both amounts to be available for services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a), and to be computed on an accrual basis and to be determined in accordance with the corporation's prescribed accounting system in effect on July 1, 1946, and shall be exclusive of depreciation, payment of claims, expenditures which the said accounting system requires to be capitalized or charged to cost of commodities acquired or produced, including selling and shipping expenses, and expenses in connection with acquisition, construction, operation, maintenance, improvement, protection, or disposition of facilities and other property belonging to the corporation or in which it has an interest. (18 U.S.C. 4121-4128; Reorganization Plan No. II, pt. 1, sec. 3a, approved Apr. 3, 1939; Departments of State and Justice, the Judiciary, and Related Agencies Appropriation Act, 1964.) Program and Financing (in thousands of dollars) |