Action taken or planned-Continued Payments to Government employees-Continued Increased use of quarters in Air Force-leased hotels to prevent Annual savings resulting from reducing Federal unemployment Increase in charges for utilities furnished to industrial and agri- Manpower utilization: Reduction in staff at Army Finance Center (estimated annual Annual savings in personnel costs resulting from the consolida- Savings resulting from reduction of positions for the Chicago Savings in salary costs resulting from utilization of available Elimination of unnecessary guard post positions at security in- Trade development and assistance: Annual dollar savings and favorable effect on balance-of- Annual dollar savings and favorable effect on balance-of-pay- Correction of erroneous payments of post differential and charge Loans, contributions, and grants: Additional interest earnings by making payments under the medicare program on a reimbursement rather than on an advance payment basis_‒‒‒ Disallowance of excessive noncash grant-in-aid credits for school, park, storm drain, sewer, and parking facility Estimated savings $244, 000 218, 000 159, 000 138,000 104, 000 75,000 24, 000 1, 276, 000 1,038, 000 421, 000 160,000 152, 000 1, 200, 000 1,042, 000 880,000 43, 000 12,000 95, 000 9,500,000 601, 000 Action taken or planned-Continued Loans, contributions, and grants-Continued Additional funds available to extend the cropland conversion program to more farmers by discounting at the rate of 5 percent a year advance payments made to farmers participating in the 1966 program_ Reduction in cost of federally financed project-. Estimated savings $200, 000 200, 000 Prevention of unauthorized expenditure of funds on nonmatching basis. 160, 000 Other items__ 263, 000 Leasing and rental costs: Purchasing rather than leasing automatic data processing and related equipment__ 2,836, 000 Savings resulting from the purchase of leased automatic data processing machines at reduced prices____ Annual savings in rental cost for equipment resulting from the consolidation of certain data processing operations--Annual savings resulting from the conversion to usable space of a Government-owned building which had been declared unsuitable for use by Federal agencies and was scheduled for disposal -- 518, 000 435,000 227,000 Savings to be attained by purchasing instead of continuing to lease radio and telewriting equipment-- 109,000 Savings to be attained by purchasing rather than leasing certain office copying equipment- 97,000 Purchasing rather than leasing office copier_ 23,000 Other items__. 62,000 Rental income: Additional revenue due to changes in rental rates and utility charges for Government-owned housing and quarters---Other items____ 126,000 21,000 Construction, repair, and improvement costs: Savings in construction and furniture costs to be effected because of revisions in seating and capacity standards for school dining facilities__. 146,000 29,000 Savings to be effected by direct procurements of certain equipment for construction projects-- Operation and maintenance : Discontinuance of the use of a U.S. Navy landing ship tank in support of recreational facility in Hawaii (estimated annual savings) Estimated annual reduction of dollar expenditures for the purchase of bags for the distribution of commodities donated under Public Law 480, by requesting the recipient country to to provide bags from its own resources_ Transportation: Savings in transportation costs by reduction in the number of Savings resulting from partial consolidation of duplicate ship- Other items: Increased postal revenues to be realized as a result of increasing 704, 000 100.000 1, 000, 000 534,000 295, 000 3,000,000 2,264, 000 Action taken or planned-Continued Other items-Continued Savings in mail transportation costs by discontinuing the use Elimination of interest costs resulting from the accelerated Increased revenues resulting from an increase in bus fares and Annual savings in interest cost resulting from termination of Additional annual revenues resulting from the inclusion of saw- Savings resulting from discontinuing the purchase of title in- Cancellation of contracts for consultant's services and reduc tion in number of employees by a nonprofit corporation fi- Additional income resulting from increases in prices charged Savings in interest costs as a result of deferring payment for Termination of costs to Government for property damage in- Miscellaneous other items--- Total other measurable savings--- Estimated savings $2,000, 000 1,200,000 364, 000 340,000 275,000 228, 000 180,000 125,000 110,000 95, 000 39, 000 400,000 113, 445, 000 INTERNATIONAL DIVISION Senator BARTLETT. You are requesting additional positions for the International Division? Mr. STAATS. Yes, sir. Senator BARTLETT. How many? Mr. SIMMONS. An increase of 42 positions from fiscal year 1967 to fiscal year 1968. Senator BARTLETT. Will you detail the cost of operating these posts including dependents cost, education, whatever else will be involved? Mr. STAATS. We will be happy to do so. (The information follows:) 79-512-67- -3 OVERSEA AUDIT DETERMINATION AND PAYMENT OF PERSONNEL Senator BARTLETT. At the same time inform the subcommittee whether those oversea personnel are paid in dollars, in local currencies, or both. (The information follows:) USE OF LOCAL CURRENCY BY GAO Our personnel overseas are paid in dollars. However, we follow the policies of the United States Government as administered by the Embassy in the country where we are located. In Viet Nam our staff members, under the general rules followed by the Embassy and the military there, convert dollars to military payment certificates or local currency for their expenditure needs in Viet Nam. In New Delhi we have the additional opportunity, which we are taking advantage of, to use excess rupees for expenses of our office there to the fullest extent possible. Add a statement, if you will be kind enough to do so, telling the subcommittee how you determine when investigations or audits are to be undertaken overseas. (The information follows:) BASIS FOR INITIATING OVERSEAS WORK In addition to the audits we make in response to requests from members or committees of the Congress, we undertake a large number and variety of audits overseas on our own initiative. As in our audit work generally we endeavor to direct our available resources overseas into the areas or subjects in which they can be most effectively used to fulfill the greatest apparent need and benefit to the Government. In developing our work plans and making judgmental determinations for specific work projects, we consider such factors as: (1) general interest within the Congress (2) size and importance of the program (3) relative likelihood of administrative difficulties (4) known clues as to potential areas of waste or inefficiency, and (5) prospects for specific recommendations for savings or other management improvements We place primary emphasis on the foreign assistance programs in consideration of the above factors. Since we do make selective tests of the management controls, we give consideration to the fullest practicable extent, to the internal audits and investigations or other management control processes of the departments and agencies concerned, and encourage them to expand such activities wherever we find them deficient. In our selections of subjects for investigation we also seek out places in which we believe that we may be able to develop information helpful to congressional committees and their staffs in matters of current interest. Senator BARTLETT. I have no further questions. Thank you very much, Mr. Staats, and all your associates. Mr. STAATS. Thank you, Mr. Chairman. SUBCOMMITTEE RECESS Senator BARTLETT. The subcommittee will be in recess until 10 a.m. tomorrow morning, when the Public Printer will be heard from. (Whereupon, at 3:20 p.m., Monday, May 22, 1967, the subcommittee was recessed, to be reconvened at 10 a.m., Tuesday, May 23, 1967.) |