: Because of subsequent legislation and refinements in prescribed requirements, most of the accounting systems that have been approved in the past now need reexamination and appropriate revision in the light of current requirements.

The Rural Electrification Administration is of the opinion that its accounting system
conforms with the current principles, standards, and related requirements of the Comp-
troller General and, accordingly, has established no target date for resubmission.

4 The Bureau of Public Roads formally submitted its accounting system for approval
in June 1963. In a report to the Congress dated June 30, 1966, on our review of the system,
it was pointed out that we were not stating our approval of the Bureau's accounting
system pending further development of the Bureau's accounting for costs and financial
reporting procedures. We advised the Department of Commerce that we will reconsider
the request for approval when notified that the proposed improvements, which had been
concurred in by the Federal Highway Administrator, have been implemented. In Sep-
tember 1966, the Bureau informally submitted to the assigned GAO staff for review the
Bureau's proposed changes in its cost accounting procedures.

The Bonneville Power Adininistration submitted segments of its system over the
period from 1958 to 1964, and submitted the final segment of the system, dealing with
consolidated reporting, in March 1966.

The Department of Interior has advised that studies to determine accounting needs
of the Federal Water Pollution Control Administration are now being made in this
recently established agency. These studies have not progressed sufficiently to enable the
setting of a realistic target date, but the date of June 1967 has been set as an objective.

The Post Office Department plans to revise its accounting system, where required,
to conform to the approved accounting policies and standards, and to intermittently
submit for approval individual portions or segments of the revised accounting system
prior to Dec. 31, 1968.

The Agency for International Development has established target dates for the sub-
mission of certain ancillary systems or segments comprising the remaining portions of its
accounting system during the latter part of 1966, and in March and June 1967 when the
final segments of the complete system are scheduled for submission.

The Department of State provides accounting services to the U.S. Arms Control and
Disarmament Agency on a reimbursable basis. Virtually all financial transactions of the
agency are processed through the accounting system of the Department of State. De-
velopment of the Agency's accounting system depends to a large extent on the activities
of the Department of State in this area, where a target date of December 1968 has been
established for submission of the departmental accounting system for approval.

10 The Bureau of Accounts formally submitted the first 2 of 7 charters of a manual for central accounting for cash operations of the Federal Government on Mar. 31, 1964, stating

that the 2 chapters submitted were intended to present the essential elements of the sys-
tem as a whole in terms of the underlying principles and basic operations which the Bu-
reau presumed was the type of information desired as a basis for approval. The General
Accounting Office informed the commissioner of accounts by letter dated Jan. 11, 1965,
that the material submitted was not sufficient to provide an adequate basis for approval
of the system. It is understood that the Bureau expects to revise and complete docu-
mentation of the system by January 1967.

11 The principles relating to accounting for public debt receipts and expenditures were
approved by the Comptroller General on June 14, 1957.

12 General Accounting Office staff is conducting a review of the financial management
system of the U.S. Coast Guard, with primary emphasis on the adequacy and effective-
ness of internal reporting to meet the informational needs of management. This review is
scheduled for completion about July 31, 1967, and an appropriate report thereon will
be issued.

13 The Civil Service Commission's work reporting and cost analysis system, approved
by the Comptroller General in March 1958, is now considered to be an integral part of
and ancillary to the 2 systems for administrative expenses and for the revolving fund,
investigations.

14 Because of limited size, the accounting and other financial management activities
for Federal Coal Mine Safety Board of Review and the Federal Maritime Commission
are now handled by the General Services Administration whose accounting system was
approved by the Comptroller General in June 1965.

15 The General Accounting Office issued a report to the U.S. Tariff Commission dated
Apr. 28, 1966, on its review of selected aspects of the Commission's financial management
system, including an outline of the principal deficiencies in the accounting system. The
Commission employed a management consulting firm to review the entire organization.
The Commission has advised that the observations and recommendations of the man-
agement consultants, the General Accounting Office, and the Bureau of the Budget
were still being reviewed and evaluated, but that the Commission is not yet far enough
along to establish target dates for specific accomplishments.

NOTE.-The number of systems subject to approval as shown in this report includes
only complete accounting systems for the reason that the number of segments of systems
on which tentative approval may be requested is not predictable. The number of complete
systems subject to approval may be affected by future changes in plans of individual
departments and agencies as development work progresses, and by the creation of new
agencies or the consolidation or termination of existing agencies.

CIVIL DIVISION

Mr. CASEY. The Civil Division appears on page 30. We shall place that page in the record. (Page follows:)

Actual or estimated obligations-Personnel compensation

The Civil Division is responsible for carrying out the accounting, auditing, and investigative functions of the General Accounting Office in all civil departments and agencies of the Federal Government; the Corps of Engineers (Civil Functions), Department of the Army; and the District of Columbia Government, except the programs and activities assigned to the International Division. This responsibility does not include the audit of transportation charges, which is assigned to the Transportation Division.

The Washington staff of the Civil Division performs its functions with assistance from the staffs of the Field Operations Division regional offices and the European and Far East Branches of the International Division.

During the fiscal year 1966, 200 reports relating to the civil departments and agencies were submitted to the Congress, to congressional committees, to individual members of the Congress, or to officers of the Congress. In addition 40 reports were issued to top agency officials, copies of which frequently were furnished to congressional committees or to members of the Congress, and 254 reports were issued to other agency officials. Our reports provide information and assistance to the Congress and also convey to agency officials our recommendations for administrative and financial improvement or corrective action on weaknesses and deficiencies observed during our audits.

At the request of congressional committees, representatives of this Division have testified at congressional hearings, commented upon proposed legislation, and furnished information on various matters.

Mr. CASEY. This shows a request for $6,918,300 and 671 positions. You are asking here for an increase of $371,300 and 33 new positions. You have on pages 30, 31, and 32 of the justifications the staff requirements and organization. Let us put those pages in the record. (Pages follow:)

STAFF REQUIREMENTS AND ORGANIZATION

The following table summarizes staffing requirements of the Division according to organizational units.

The Office of the Director is responsible for the supervision and direction of the Division. This responsibility includes the establishment of the Division policy and procedures; coordination of the work of the accounting, auditing, and in

78-653-67- 47

vestigative groups; administrative and technical supervision of the work programs; and processing of reports.

Accounting, Auditing, and Investigative Staff

The accounting, auditing, and investigative staff has the supervisory responsibility for carrying out General Accounting Office functions in the civil agencies and also performs accounting, auditing, and investigative work in the metropolitan Washington area. The accountants, auditors, and investigators of the Staff are located, to the extent possible, at the sites where the operations of the various departments and agencies are conducted. A breakdown of the accounting, auditing, and investigative staff, including the staff of the Office of the Director, follows:

The extension of reviews at the sites of operations and the audit of transactions at locations where the books and records are maintained will be continued in fiscal year 1968. At some departments and agencies, work coverage will be continued at about the same level as in the past and the cycling of audits will be extended to provide periodic reviews of important civil activities. As additional members are added to our staff, in accordance with our planned increase, work coverage at other departments and agencies will be increased. The audit and settlement of accountable officers' accounts, when a legal requirement, will be continued.

In our reports issued to the Congress and to agency officials, with particular emphasis on those aspects suspected or found to require corrective action or improvement, comments and recommendations will be made that should be of assistance to the Congress and to agency management in strengthening agency financial management systems and in promoting efficiency and economy through improved operating and administrative controls.

JUSTIFICATION OF INCREASES REQUESTED

Mr. CASEY. Enlarge a little on the accomplishment and work plans you have in some detail with regard to pages 33 through 40. You merely summarize that. Give us some justification for these new positions and the amounts of increase.

Mr. STAATS. I will ask Mr. Samuelson, head of our Civil Division to comment.

Mr. SAMUELSON. Of the increase, it is almost all in the professional area. For the accounting, auditing, and investigative staff we are asking for 580 positions, 86 in the administrative and clerical staff, and five fiscal auditors.

The increase in net salaries is roughly $235,000 for the increased number of positions and $135,000 for the

Mr. CASEY. Is that $235,000 for the 33 additional positions?
Mr. SAMUELSON. Yes.

Mr. CASEY. Of the $371,300?

Mr. SAMUELSON. Roughly $235,000.

Mr. CASEY. That is for the 33 additional positions?

Mr. SAMUELSON. Yes, sir-20 additional average positions. We take the average number. This is for the average increase in number of staff which works out to about $235,000.

Mr. CASEY. What will they be doing?

Mr. SAMUELSON. Primarily we are increasing our effort in the Department of Health, Education, and Welfare; Department of Labor; and Office of Economic Opportunity. Those are the three areas where we will be increasing our efforts.

There is also a growth in the other agencies and their programs so there will be some increase in some of these areas.

We follow the practice of trying to review most of the programs of most of the large departments and agencies over a period of a few years, so we will be selecting activities or programs within the several individual agencies. It will vary between years as to the number of people we have in any one department or agency.

However, for the immediate future our largest increases will go into Health, Education, and Welfare; Labor; Office of Economic Opportunity, and I should have mentioned also the Department of Housing and Urban Development. The largest increases will be in those four

areas.

Mr. STAATS. We have 20 separate studies underway currently in the poverty program. We have a greatly expanded program planned in the Department of Labor, as Mr. Samuelson indicates. Then there is the Department of Health, Education, and Welfare. Medicare will be a major problem for us.

Then we have the area of Housing and Urban Development. We feel there is a real need for additional work in this area, too.

COST TO TRAIN JOB CORPS ENROLLEE

Mr. ANDREWS. Mr. Staats, I have seen it estimated that the cost of educating a Job Corpsman ranges anywhere from $7,500 to over $100,000.

Can you tell us what it costs to send through the Job Corps school a Job Corpsman? Have you run across any authentic figures?

Mr. STAATS. I believe we developed such a figure for the Tongue Point program.

Mr. SAMUELSON. It would vary between the centers. Some centers go as high as $15,000 per individual.

Mr. ANDREWs. Is that for a 9-month course?

Mr. SAMUELSON. The time the person has been there computed on a man-year basis.

Mr. CASEY. How long did he stay there? Do you know?

Mr. SAMUELSON. It varies from a short period of time to-
Mr. ANDREWS. You say the average was $15,000?

Mr. SAMUELSON. Average cost for the period of time that they are there computed on a man-year basis is up to $15,000.

Primarily this may be due to the fact they have not built up to the full number of people they have scheduled to go into the center.

Mr. ANDREWS. It has been said many times in many places that a man can go through Harvard cheaper than he could through one of these Job Corps plants. Is that right?

Mr. SAMUELSON. I don't know what it costs to go through Harvard. Mr. ANDREWS. I mean for a year.

Mr. SAMUELSON. That is right. This cost includes construction and rehabilitation of facilities, and so on, so far as the centers are concerned.

Mr. STAATS. Off the record.

(Discussion held off the record.)

Mr. ANDREWS. Submit that information for the record, please. (Information follows:)

Costs to train a Job Corps enrollee at centers reviewed by General Accounting Office

1. All costs incurred by contractor for operation and maintenance of the center, including construction and rehabilitation of facilities,

2. All costs paid directly by OEO for enrollee pay, allotment, and travel,

3. Costs of material and supplies obtained from Government sources and paid directly by OEO (food, clothing, equipment, etc.),

4. Costs of OEO headquarters and regional support which OEO estimates at $114 per man-month for men's centers and $103 per man-month for women's centers.

DEFENSE DIVISION

Mr. CASEY. Defense division. We shall insert the chart which appears at page 44 of the justifications. This shows that they are requesting an increase of $270,800, which would make their total request equal $3,391,400, and they are asking for 316 positions, which is an increase of 29 in positions.

(Page follows:)

SCOPE AND NATURE OF WORK PROGRAM

Actual or estimated obligations-Personnel Compensation

The Defense Division is responsible for carrying out the accounting, auditing, and investigative functions of the Comptroller General and the General Accounting Office in the Department of Defense, including the military departments, except for the civil functions of the Corps of Engineers, the Military Assistance Program, and the audit of transportation charges.

The functions and duties of the division are performed by its Washington staff with assistance from the regional offices of the Field Operations Division and the foreign branches of the International Division.

During fiscal year 1966, 92 reports by this Division were submitted to the Congress, its Committees, or individual Congressmen. An additional 279 reports were