FINANCIAL SAVINGS ATTRIBUTABLE TO THE WORK OF THE GENERAL ACCOUNTING OFFICE IDENTIFIED DURING THE FISCAL YEAR 1966 The information included on pages A4 through A19 summarizes financial savings to the Government attributable to the work of the General Accounting Office during fiscal year 1966 including those both of a one-time and of a recurring nature. Many improvements are made by the Federal agencies as a consequence of General Accounting Office recommendations which cannot be identified or determined readily in monetary terms. In many other instances, it is feasible to compute the savings resulting from General Accounting Office activities. A summary appears on page A4. Specific criteria are applied to assure that savings and revenues computed are reasonable and appropriate for the actions taken, or planned, on the basis of General Accounting Office recommendations. For example, annual recurring savings that continue indefinitely are only included for a 12-month period. These savings and revenues were derived as follows: Nonrecurring savings in planned or current programs. Total Millions $73. 4 40.0 17.2 130. 6 Approximately $74.4 million of the above savings were achieved in supply management of Government-owned materials. Details of savings, other than actual refunds and collections, are included on pages A5 through A13. Examples of other improvements not readily measurable in monetary terms are included on pages A14 through A19. Summary of collections and other measurable savings DETAILS OF OTHER MEASURABLE SAVINGS Details of the measurable financial savings including additional revenues attributable to the audit work of the General Accounting Office during the fiscal year 1966, totaling $113,445,000, are listed below. Approximately $40 million of the savings or additional revenues are recurring in nature and will continue in future years. The items listed consist of realized or potential savings in Government operations directly attributable to action taken or planned on findings developed by the General Accounting Office in its examination of agency and contractor operations. In most instances, the potential savings are based on estimates and for some items the actual amounts to be realized are contingent upon future actions or events. Action taken or planned SUPPLY MANAGEMENT Estimated savings Transfer of excess material to agencies or contractors for use in -Cancellation of plans to purchase materials for which there was not Savings resulting from reduction of rates paid for farm storage of grains under the 1965 reseal program.... Reduction in losses from deterioration of limited-life and excess medical supply items in the civil defense medical stockpile_. Adjustment of prices under existing contracts or proposed amendments Annual savings in operating cost ($250,000) and reduction in replacement cost ($3,500,000) of seagoing tender used for aid-tonavigation work made available for partial support of the national oceanographic effort_____. Transfer and utilization of excess missile launching and handling rails in lieu of making new procurements__. Reduction in procurement costs as a result of qualifying additional suppliers as competitive sources for items previously purchased on a sole-source basis____ Savings by having fee-basis physicians prescriptions filled in VA pharmacies instead of in private pharmacies- Savings in procurement cost as a result of direct purchase from actual manufacturer___ Redistribution of ammunition provided under the military assistance program which was excess to recipient country needs--Cancellation of production of items obtainable at lower prices---Savings realized by replacing sedan delivery vehicles with lower cost pickup trucks__. Reduction in Government-wide procurement costs due to elimination of the requirement that general office desks be equipped with locks Annual savings resulting from change in method of contracting for photographic services from time and material contract to costplus-fixed-free contract--- Savings on purchase of aircraft parts for overhaul as a result of new pricing procedures.. $19, 940, 000 11, 595, 000 10, 006, 000 9, 200, 000 8, 691, 000 6, 707, 000 3,750,000 502, 000 439, 000 428,000 396, 000 392,000 361, 000 294, 000 250,000 145, 000 Reduction in charges to Government cost-type contracts of corporate and administrative expenses. Cancellation of unnecessary handtool procurements.. Utilization of excess property as a result of more adequate screen- 131, 000 126,000 125,000 125,000 116, 000 110,000 Action taken or planned—Continued SUPPLY MANAGEMENT Continued Savings resulting from the centralized procurement of certain drugs Estimated savings $108, 000 96,000 33,000 289,000 COMMUNICATIONS Reduction in number of leased telephone circuits in cable facility through utilization of unused telephone circuits in microwave facility (estimated annual savings). 503, 000 PAYMENTS TO GOVERNMENT EMPLOYEES, VETERANS, AND OTHER INDIVIDUALS Annual savings through reducing travel costs by making Government vehicles available for use in lieu of privately owned automobiles Savings resulting from revising travel regulations to permit the Savings resulting from the enactment of legislation granting leasing Annual savings resulting from reducing Federal unemployment Increase in charges for utilities furnished to industrial and agricul- MANPOWER UTILIZATION Reduction in staff at Army Finance Center (estimated annual savings) Annual savings in personnel costs resulting from the consolidation 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 installation (contract period). TRADE DEVELOPMENT AND ASSISTANCE Annual dollar savings and favorable effect on balance-of-payments position by requiring that certain sales agents involved in Public Law 480 transactions be paid sales commissions in foreign currency rather than in U.S. dollars provided by CCC-- 78-653-67- -43 1,500,000 1, 000, 000 244, 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 Action taken or planned Continued TRADE DEVELOPMENT AND ASSISTANCE Continued Annual dollar savings and favorable effect on balance-of-payments Consolidation of shipments of agricultural commodities donated un- Correction of erroneous payments of post differential and charge Estimated savings $1,042, 000 880,000 43,000 12,000 95, 000 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---. 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-- Prevention of unauthorized expenditure of funds on nonmatching basis_ Other items_. 9,500,000 601, 000 200, 000 200,000 160,000 263, 000 LEASING AND RENTAL COSTS Purchasing rather than leasing automatic data processing and related equipment-- Savings resulting from the purchase of leased automatic data proc- Annual savings in rental cost for equipment resulting from the con- Savings to be attained by purchasing rather than leasing certain Purchasing rather than leasing office copier_. Other items__ 2,836,000 518, 000 435, 000 227, 000 109, 000 97,000 23, 000 62, 000 RENTAL INCOME Additional revenue due to changes in rental rates and utility 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 Savings to be effected by direct procurement of certain equipment for construction projects__ 146, 000 29,000 Action taken or planned—Continued OPERATION AND MAINTENANCE Discontinuance of the use of a U.S. Navy landing ship tank in sup- TRANSPORTATION Savings in transportation costs by reduction in the number of empty Savings resulting from partial consolidation of duplicate shipping Estimated savings $704, 000 100, 000 1, 000, 000 534, 000 295, 000 OTHER ITEMS Increased postal revenues to be realized as a result of increasing Elimination of interest costs resulting from the accelerated payment Additional annual revenues resulting from the inclusion of sawlog 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 insurance Cancellation of contracts for consultant's services and reduction in Termination of costs to Government for property damage insurance Miscellaneous other items.. Total other measurable savings-----. 3, 000, 000 2,264, 000 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 ADDITIONAL FINANCIAL SAVINGS NOT FULLY OR READILY MEASURABLE Many significant financial savings of a one-time or recurring nature which are attributable to the work of the General Accounting Office are not fully or readily measurable in financial terms. These savings often result from actions |