units resulted in a revised costing formula on which a new contract for servicing was made, with an estimated annual recurring saving of approximately $32,000. The reduction of the size of wet currency paper from 19.00 by 16.31 inches to 19.00 by 16.06 inches will lower the amount of paper required by 27,420 pounds, at estimated recurring annual savings of $14,505. The size of the sheets of pregummed paper for postage stamps was reduced from 21 by 19 inches to 2012 by 184 inches. This will save one dollar per thousand sheets at an estimated annual saving of $10,000. Through the records management program, 821 cubic feet of noncurrent records were transferred from office space to the records storage area and 421 cubic feet of obsolete records were destroyed during fiscal 1960. In the forms management program, 1,103 requests for form services were processed, resulting in the preparation of 100 new forms, the elimination of 138 forms, and the improvement and revision of 319 forms. In fiscal 1960, 75 internal audit reports, covering both financial and management type audits, were released, containing 132 recommendations, of which 104 were cleared by the end of the year. The decrease in the number of audit reports released each year since 1955, when 153 reports were released, shows the progress made in the Bureau's aim to consolidate and revise audit segments without loss of coverage. Increased emphasis has been applied to the incentive awards program. The principal measure used in the promotion of this program has been the award of a suggestion pencil to each employee for the first suggestion made, with the added feature of presentation of a pencil to the immediate supervisor for the first suggestion originating in his unit. It is estimated that annual recurring savings of $31,802 will accrue to the Bureau from employee suggestions adopted during the fiscal year. Although the Bureau placed second among seven Treasury bureaus eligible for the Secretary's Safety Award for 1959, there has been no relaxation in safety efforts. Analyses continue to be made currently of all accidents and special attention is given to areas most in need of improvement. The Bureau's training program is based upon practicality and the Director's desire to continue to improve the efficiency of Bureau operations. The training program encompasses both outside and internal training in technical and administrative fields. Twenty-four supervisors recently concluded a supervisory training course designed to enhance their effectiveness and strengthen their recognized key role in the Bureau's management. The Bureau has continued an active and extensive research and development program conducted for improvement of the quality of its products, as well as for development of new deterrents to the counterfeiting of United States securities. The estimated savings resulting from management improvement efforts for the fiscal year 1960 totaled 40 man-years and approximately $275,400 on a recurring annual basis. All savings realized have been applied against the cost of production and have been reflected in billing rates and in inventory valuations. New issues of postage stamps and deliveries of finished work New issues of postage stamps delivered by the Bureau in the fiscal year 1960 are shown in table 98. A comparative statement of deliveries of finished work for fiscal 1959 and 1960 appears in table 99. Finances The Bureau operations are financed by reimbursements to a working capital fund authorized by law. Balance sheets and a statement of income and expense as of June 30, 1959 and 1960, follow. Statement of income and expense for the fiscal years 1959 and 1960 1 Effective July 1, 1958, the Bureau reduced the estimated remaining useful life of certain of its fixed assets to bring the Bureau's depreciation policy into line with prevailing practices elsewhere in the Government and in private industry, or to recognize obsolescence resulting from the Bureau's modernization program. This reduction resulted in an increase in the Bureau's annual depreciation expense of about $296,000. No amounts are included in the accounts of the fund for (1) interest on the investment of the Government in the Bureau of Engraving and Printing fund, (2) depreciation on the Bureau's buildings excluded from the assets of the fund by the act of August 4, 1950, and (3) other costs incurred by other agencies on behalf of the Bureau. 3 The act of August 4, 1950, provided that any surplus accruing to the fund in any fiscal year be paid into the Treasury as miscellaneous receipts except that any surplus would be applied first to restore any impairment of capital by reason of variations between prices charged and actual costs (31 U.S.C. 181a). Earned surplus, or deficit (-)'.... Total investment of the U.S. Government. 3,981, 863 3,745, 668 Total liabilities and investment of the U.S. Government.... 25, 250, 930 25, 250, 930 -64, 249 25, 186, 681 28,932, 349 25, 186, 862 29,168, 725 1 Finished goods and goods-in-process inventories are valued at cost. Except for the distinctive paper which is valued at the acquisition cost, raw materials and stores inventories are valued at the average cost of the materials and supplies on hand. 2 The act of August 4, 1950, establishing the Bureau of Engraving and Printing Fund, specifically excluded from the assets of the fund the land and buildings occupied by the Bureau (31 U.S.C. 181a). These assets are valued at about $9,000,000. Plant machinery and equipment, furniture and fixtures, office machines, and motor vehicles acquired on or before June 30, 1950, are stated at appraised values. Additions since June 30, 1950, and all building appurtenances are valued at acquisition cost. Dies, rolls, and plates were capitalized as of July 1, 1951, on the basis of average unit costs developed for fiscal 1950 reduced to recognize their estimated useful life. Since July 1, 1951, all costs of dies, rolls, and plates have been charged to operations in the year acquired. In July 1960 machinery and equipment with a net book value of $170,000 was declared excess property as a result of the Bureau's modernization program. As of June 30, 1960, this equipment, consisting of 49 flatbed intaglio presses and related equipment, was carried on the Bureau's records at $934,000 less accumulated depreciation of $764.000. 3 Effective July 1, 1958, the Bureau reduced the estimated remaining useful life of certain of its fixed assets to bring the Bureau's depreciation policy into line with prevailing practices elsewhere in the Government and in private industry, or to recognize obsolescence resulting from the Bureau's modernization program. This reduction resulted in an increase in the Bureau's annual depreciation expense of about $296,000. Outstanding commitments, consisting of undelivered purchase orders and unperformed contracts, totaled $4,480,585 on June 30, 1960, compared with $6,942,326 on June 30, 1959; of these amounts, $2,582,783 on June 30, 1960, and $3,804,375 on June 30, 1959, related to contracts entered into prior to June 30, but not to be performed until the ensuing fiscal years. The act of August 4, 1950, provided that any surplus accruing to the fund in any fiscal year be paid into the Treasury as miscellaneous receipts except that any surplus would be applied first to restore any impairment of capital by reason of variations between prices charged and actual costs (31 U.S.C. 181a). Fiscal Service The Fiscal Service consists of the Office of the Fiscal Assistant Secretary, the Bureau of Accounts, the Bureau of the Public Debt, and the Office of the Treasurer of the United States and is under the general supervision of the Fiscal Assistant Secretary of the Treasury. The Fiscal Assistant Secretary, under the general direction of the Under Secretary for Monetary Affairs, is responsible for the administration of the financing operations of the Treasury; preparation of estimates for the future cash position of the Treasury for use of the Department in its financing; direction of the distribution of funds. between the Federal Reserve Banks and other Government depositaries; preparation of calls for the withdrawal of funds from the special depositaries to meet current expenditures; administration of Treasury responsibilities under Executive orders with respect to the purchase, custody, transfer, and sale of foreign currencies acquired under international agreements in connection with United States programs operated abroad; and direction of fiscal agency functions in general. Additional responsibilities of the Fiscal Assistant Secretary include continuous liaison with other departments and agencies of the Government with respect to and the coordination of their financial operations with those of the Treasury; supervision of the administration of accounting functions and related activities of all units of the Treasury Department through the Commissioner of Accounts; and participation in the joint financial management improvement program of the Secretary of the Treasury, the Director of the Bureau of the Budget, and the Comptroller General of the United States pursuant to the provisions of the Budget and Accounting Procedures Act of 1950. More detailed explanations of the operations involved under the responsibilities of the Fiscal Assistant Secretary are given in the reports of the Bureau of Accounts, the Bureau of the Public Debt, and the Office of the Treasurer of the United States which follow. BUREAU OF ACCOUNTS The Bureau of Accounts was established by the President's Reorganization Plan III, dated April 2, 1940, and reorganized in its present form by Treasury Department Order No. 164, dated December 12, 1952. The functions of the Bureau involve varied operations of the Treasury, most of which are of Government-wide significance. Many of its functions relate to statutory responsibilities of the Secretary of the Treasury performed under delegation of authority. Included in the responsibilities and functions of the Bureau are: Maintenance of the Government's system of central accounts; participation with the Office of the Fiscal Assistant Secretary in the joint program for improvement of financial management in the Government; preparation of the central financial reports of the Government and their continuous development and improvement of such reports; accounting and reporting for foreign currencies in the custody of the Secretary of the Treasury; coordination and appraisal of the internal audit activities of the Department and assisting Treasury bureaus in the development of comprehensive internal audit programs; issuance of checks to Government creditors in payment of obligations incurred by the executive departments and agencies, with certain exceptions; administrative work relating to the designation of Government depositaries; determination of qualifications and underwriting limitations of surety companies to write fidelity and other surety bonds to cover Government activities; investment of social security and other Government trust funds; and administration of the loans and advances by the Treasury to Government corporations and other Federal agencies. The Bureau of Accounts also administers the payment of claims under certain international agreements; maintains accounts and collects amounts due from foreign governments under lend-lease and other agreements; furnishes technical guidance and assistance in accounting matters to Treasury bureaus and other executive agencies; and performs such other fiscal work as may be required. Accounting, Reporting, and Related Operations Accounting systems The Accounting Systems Division provided assistance to the Internal Revenue Service, the Bureau of Customs, the Secret Service, the Office of Administrative Services, and the Bureau of Accounts in the major revision of their accounting systems and the preparation of accounting manuals which will meet the requirements of law and regulations of the General Accounting Office. In cooperation with all agencies a test was made of a recommended change in central accounting operations which would affect the Treasury and the agencies for which it disburses. The proposed change would require Treasury regional disbursing offices to keep summary accounts by agency for transactions handled, rather than detailed accounts according to each appropriation and fund. Under the proposal each of the administrative agency accounting offices (some 1,400) instead of the Treasury regional disbursing offices, would report monthly information to the Treasury for central accounting and reporting purposes. The purpose of the test was to determine the feasibility of the proposal and whether such a change would prove more efficient and economical. Evaluation of the results of the test have not been completed. If they prove to be favorable it is planned to place the new procedures in effect with the beginning of the fiscal year 1962. Changes in procedure were developed under which consolidated reports of transactions in accounts of U.S. marshals and clerks of court will be used in the fiscal year 1961 for central accounting purposes. The Division participated in the revision of regulations relating to cash held at personal risk as contained in Treasury Department Circular 1030, dated July 24, 1960, and reviewed requirements for the implementation of similar requirements prepared by other departments and agencies. Procedures were developed to take effect in fiscal 1961, whereby amounts withheld as Federal taxes from the compensation of Federal employees will be reflected as budget receipts in the accounting period in which they are withheld instead of quarterly, as theretofore. |