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Action taken or planned-Continued

Payments to Government employees-Continued
Savings resulting from the enactment of legislation granting
leasing authority to the Coast Guard and the issuance of in-
structions to implement the Coast Guard's leased housing pro-
gram to permit leasing FHA houses in certain areas.-
Improved housing administration procedures reduction vacancy
periods and resulting in a reduction in payments for housing
allowance (estimated annual savings) _-.

Increased use of quarters in Air Force-leased hotels to prevent
unnecessary payments of quarters, lodging, and per diem al-
lowances to military personnel on official duty in London,
England (estimated annual savings)

Annual savings resulting from reducing Federal unemployment
benefits payable to certain Federal military retirees..
Revision of method used to compute living quarters allowance
to civilian employees overseas (estimated annual savings) ___
Correction of erroneous pay and allowance computations and
records

Increase in charges for utilities furnished to industrial and agri-
cultural lessees, and nonappropriated fund activities (es-
timated annual savings) –.

Manpower utilization:

Reduction in staff at Army Finance Center (estimated annual
savings)

Annual savings in personnel costs resulting from the consolida-
tion of certain data processing operations--

Savings resulting from reduction of positions for the Chicago
Employment Service offices____

Savings in salary costs resulting from utilization of available
automatic data processing equipment (estimated annual
savings)

Elimination of unnecessary guard post positions at security in-
stallation (contract period).

Trade development and assistance:

Annual dollar savings and favorable effect on balance-of-
payments position by requiring that certain sales agents in-
volved in Public Law 480 transactions be paid sales commis-
sions in foreign currency rather than in U.S. dollars provided
by CCC...

Annual dollar savings and favorable effect on balance-of-pay-
ments position by requiring foreign governments to bear their
proper share of ocean transportation costs of shipping Public
Law 480 commodities on U.S.-flag vessels---.
Consolidation of shipments of agricultural commodities donated
under Public Law 480 to voluntary relief agencies, resulting in
annual savings in ocean transportation freight costs---
Reduction in costs of allowances for quarters by discontinuing
payments of housing allowances to military personnel without
dependents living in quarters provided by the Republic of
China (estimated annual savings).

Correction of erroneous payments of post differential and charge
pay from Foreign Service personnel and salary overpayments
to reemployed civil service annuitants__.
Other items___

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
empty CONEX containers shipped from Europe to the United
States (estimated annual savings).

Savings resulting from partial consolidation of duplicate ship-
ping services to the Canal Zone (estimated annual savings) –
Reduction in travel costs through greater utilization of Air
Force passenger aircraft----

Other items:

Increased postal revenues to be realized as a result of increasing
the selling prices of stamped envelopes___.
Elimination of payments of excess sales proceeds to defaulted
small home mortgagors upon resale by FHA of foreclosed
property

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
of refrigerator cars---

Elimination of interest costs resulting from the accelerated
payment of unamortized construction costs of a laboratory
building

Increased revenues resulting from an increase in bus fares and
and savings resulting from discontinuance of nonessential
bus services___

Annual savings in interest cost resulting from termination of
check-cashing agreement and discontinuance of the practice
of compensating Washington, D.C., area banks for cashing
Government salary checks--

Additional annual revenues resulting from the inclusion of saw-
log clip values in timber appraisals----
Additional revenue resulting from an increase in the volume
of timber to be cut from a Forest Service management area
(working circle)_

Savings resulting from discontinuing the purchase of title in-
surance on properties acquired as a result of default on
guaranteed housing loans___

Cancellation of contracts for consultant's services and reduc

tion in number of employees by a nonprofit corporation fi-
nanced under Government contracts (estimated annual
savings)

Additional income resulting from increases in prices charged
for meals served employees and visitors at penal insti-
tutions

Savings in interest costs as a result of deferring payment for
new computer systems----

Termination of costs to Government for property damage in-
surance on Government-owned property being utilized by
contractor (estimated annual savings) –

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

Estimate of 1968 cost for operation of GAO foreign offices, International Division

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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.)

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