DEPARTMENT OF DATA MANAGEMENT Mr. BOLAND. Turn to the "Department of Data Management." You are requesting the same average employment in 1974 as you estimate for 1973, 1,580. The table on page 1-43 shows program costs increasing except for equipment. That item goes down because of the nonrecurring cost, I presume, of computers in 1973; is that right? Mr. JOHNSON. That is correct, sir. TMI STUDY Mr. BOLAND. Last year we discussed the ADP study conducted by Technology Management, Inc. Mr. Willoughby indicated that the Administrator had in essence. adopted 27 of the 28 recommendations and that they were in the process of being implemented, or studies were being made. Have the 27 recommendations been fully implemented? Mr. BUDD. No, sir. Twenty-one have. Six of them are still in the process of being implemented. They are the type of recommendations that take a longer period. For example, development of a new budgetary system and cost accounting system. ADP TASK FORCES Mr. BOLAND. Very well. You talked about the three task forces last year. What about the findings of the three task forces in this area. Has any action been taken with respect to the findings, if there have been any findings? Mr. BUDD. Yes, sir. The task force reported on what we call the compensation, pension and education target system, and the findings were that this study should proceed. The Administrator assigned a team and it is now busily engaged in designing a system that would meet the new CP&E target system objectives. The medical ADP task force has submitted a number of reports to the Administrator and they are now in the process of review. Development of the medical ADP long-range plan is underway. The budgetary and cost accounting task forces are in the final processes of developing a proposal to the Administrator for the agency's policy on its approach for ADP budgeting and cost accounting in future years. REIMBURSEMENTS Mr. BOLAND. On page 1-43 you indicate that you received $486,000 in fiscal 1972 in reimbursements. Mr. BUDD. Yes, sir. Mr. BOLAND. What is this? Mr. BUDD. In that year, sir, we were sharing a large computer with the Internal Revenue Service at Austin, Tex. We were getting a new computer about that time. IRS wanted to do some testing before they bought their own computer. They wanted to use someone else's. We had the time to allow them to use it, so they used it and finally procured their own. NEW ADP APPLICATIONS Mr. BOLAND. Have you started any new study since last year or do you propose any for 1974? Mr. BUDD. The major studies we have, sir, are the C.P. & E. target system design, and the CALM study that Mr. Hoffman referred to. Essentially, both studies are expansions of the ones we have. Page 1-53 lists additional items. The VA has injected data processing into about all of its applications. We are expanding the number of hospitals to be served by the computer for clinical laboratories, and the education system, of course, has received much new legislation. This causes major changes in our education ADP system. Mr. BOLAND. Can you indicate what the costs of these studies would be? Mr. BUDD. Our costs would be hard to identify as a general rule. We could furnish costs for any particular study that the chairman would be interested in. ADP PROCESSING WORKLOAD Mr. BOLAND. On pages 1-50 and 1-51 you show various workloads. The entry patient treatment file, records maintained under patient care goes up, 1972 actual, 3,763,000; fiscal 1973 estimated, 4,463,000; and fiscal 1974 estimated, 5,163,000. In last year's justifications, on page 759 of the 1973 hearings, the workload for that entry was 1971 actual, 7,340,000; 1972 estimated, 8,177,000; and 1973 estimated, 8,927,000. How do you explain the great difference in these figures? Mr. BUDD. The patient treatment file that we now have is what we call phase 1. This file was started in 1966, or 1967. When we made those estimates, we were anticipating that the Chief Medical Director would ask us to go to phase 2. If we had gone to phase 2, those additional workloads would have been realized. POSTAGE COSTS Mr. BOLAND. Two of the major increases requested are for parcel post, $150,000, and $550,000 for mail. Will these costs continue to go up in the future? Mr. BUDD. Yes, sir. This actually represents the increased workloads of our data processing centers. As we move additional activities from our various regional offices and hospitals and put them on a computer, the two large mail rooms that we have in Austin, Tex., and in Hines, Ill., became responsible for handling that workload. Based on our accounting system it is charged to our budget. AVERAGE EMPLOYMENT Mr. BOLAND. The average employment is 1,580 for both 1973 and 1974. Mr. BUDD. Yes. Mr. BOLAND. It is down 61 from 1972. Has there been a decentralization of some of the ADP functions? Mr. JOHNSON. Yes, sir; there has been. In fact, there is a note that on page, 1-45, which says employment in fiscal year 1972 is not com parable to the fiscal years 1973 and 1974 because of a reorganization of ADP activities effective July 1, 1972. UTILIZATION OF COMPUTER INVENTORY Mr. BOLAND. On page 1-41 you state that at the end of fiscal 1972 you were operating 40 computers and most of them were operated around the clock 7 days a week. Will you supply for the record for each computer you operate the computer series and model identification; whether purchased or leased; and for each of the past 3 years, fiscal years 1970, 1971, and 1972, the average monthly hours in service. Use the hours in service definition found in OMB Circular A-83. Also the projected average monthly hours in service utilization for 1973 and, if available, 1974. [The information follows:] VETERANS' ADMINISTRATION COMPUTERS AVERAGE MONTHLY HOURS IN SERVICE 1 360/20's monthly use hours are expected to increase each year until reaching or near maximum available time. 21800's and 316's-all are used in clinical laboratory systems that are still in varying stages of development. Monthly use hours are expected to increase in future years. DEPARTMENT OF VETERANS BENEFITS Mr. BOLAND. We will turn to the "Department of Veterans' Benefits." You estimate that the average employment for the Department of Veterans' Benefits in 1974 will go down 838-from 17,795 to 16,957. Are these estimates correct? Mr. SILBERMAN. Yes, sir. Mr. BOLAND. They are? REORGANIZATION PLANS Mr. BOLAND. What are your plans to reorganize this Department? What is it going to cost and what is it based upon? Mr. SILBERMAN. The reduction of 838 average, Mr. Boland, does not relate to any realignment or reorganization per se. What it does represent, if you will look at the figures on page 1-66, is that a sizable number of reductions occurs in the office services activity. In other words, roughly one-half of the 838 relates to reduction of mail and files, fiscal activities, and transmission of data processing to the computer. This is due primarily to the procedural improvements that we have under way at the present time in terms of the things Mr. Budd talked about and the things that the Administrator mentioned on the first day. The other improvements all relate to the type of improvements in transmission of our data as well as general procedural improvements in the two programs of compensation pension and education. Mr. BOLAND. Do you have any plans to reorganize this department? Mr. JOHNSON. I want to make sure that we have the testimony correct. We did testify that first day that we are intensively studying now the realinement of certain functions within the Department, with the primary move to be the paper processing functions to the 10 standard Federal regional center cities. That realinement and that reorganization, yes, is contemplated, to some extent at least, in fiscal year 1974. Mr. BOLAND. Do you have any idea what the cost might be? Have you projected any cost for it? Mr. JOHNSON. Yes, and it is reflected in the budget. We estimate 300 individuals will be affected. We do have the moving costs which are involved in that move. The actual cost of the study by the outside consulting firm has been furnished. We could compute what our inhouse costs would be, at least in magnitude figures. We are in the process of reorganizing the chief attorney's office in the regional offices. Over the last few years the work of the chief attorneys has changed considerably. There had been an agreement between the Chief Benefits Director and the General Counsel that the chief attorneys, at least in certain matters, would come under the direction of the General Counsel. This is now made a part of the organizational manual. INSURANCE SERVICE In addition, we are moving the Insurance Service from Washington, D.C., to Philadelphia. Mr. TIERNAN. Before you move away from that, may I ask a question? Mr. BOLAND. Yes. Mr. TIERNAN. I see your insurance item for employment has been reduced by more than 10 percent. What is that reduction for? Mr. JOHNSON. Yes. Two reasons, Mr. Congressman. One is, of course, that the number of policy holders is decreasing annually because this program, other than the covering of midshipmen and cadets and reservists, has not had new insurance authorized by the Congress for some period of time. The other is more automation occurring in the field of insurance affecting the receiving of premiums and the mailing of notices. Mr. TIERNAN. How about the loan guarantee reduction of 127 positions? Mr. SILBERMAN. This relates again, sir, to the procedural improvements that we have under way. This would cover such things as elimination of staff inspection appraisals, the increased use of fee people or contract sources for some of our services such as inspection of model homes. Mr. JOHNSON. We, too, have automated much of the loan guarantee operation, in the receipt of payments on loans and sending of notices and the like. Mr. TIERNAN. It is a 10 percent cut of personnel in the operations? Mr. SILBERMAN. Generally five percent. 5 percent of 17,795 is about 838. Mr. TIERNAN. Were you directed to make a 5 percent cut in this area? Mr. JOHNSON. No, I recommended these changes. Mr. TIERNAN. This is the change you recommended to the Office of Management and Budget? Mr. JOHNSON. The realignment and reorganization, yes, sir. Mr. TIERNAN. Was that after you had submitted your budget in September? Mr. JOHNSON. No. Mr. TIERNAN. That was in your original presentation? Mr. JOHNSON. The overall concept of the realinement of func tion Mr. TIERNAN. The question is, was this what you submitted to the Office of Management and Budget? Mr. JOHNSON. Just a moment. Mr. SILBERMAN. Our original submission in September contained an average employment of 18,107 for 1974. Mr. TIERNAN. 18,107. Mr. SILBERMAN. Yes, sir. Mr. TIERNAN. Thank you. EDUCATION AND REHABILITATION SERVICE Mr. BOLAND. On page 1-62 you mention the Education and Rehabilitation Service. Why was this service created? This is a new service, is it not? Mr. JOHNSON. Yes, sir. |