Succeeding ding year. edT Jibus suns to Jest to -Man-hour allowance Regionibu granting and revision of quarterly man-hour allowances. Man-hour allowances may not be exceeded without notification too and proper authorization from the regional operations director Furthermore, Proper workload workhour relationships are maintained so that f estimated workload does not materialize, actual man-hour allowances are appropriately reduced Man,hours are converted to dollars for budget and financial-control purposes. Ten Tellorto 10. Budget function $800 to 89mvadam storios A.T IBModernization of the budget function of the Department has been an important part of the financial improvement program. Budget and accounting classifications were integrated and synchronized with the organizational structurer The allotment structure has been greatly simplified and the goal recommended by the Hoover Commiss sion of financing each operating unit with a single allotment for each appropriation involved in its operation has been substantially achieved et Integg bus venoitete Us 000,00% to 229979 n 19 Dimproved procedures. Improved budget controls at the depart mental level as well as at the regional and large post office devels were installed Mail volume estimates are related to man hours needed and current mail counts, are related to man hours used Performance ratios, are observed closely by management at all levels, as disclosed by respective period reportings п99d 978d giveа betnqioitae doidw Other improvements in 1960 budget The Department submitted a program, in the 1969 budget document, for complete modernization of the physical plant of the postal service. Initial funds were re quested and obtained for this purpose in a separate appropriation from the regular cápitul and research appropriations.”6 252 bNew language was provided in the 1960 administration, regional operations and research appropriation to cover cost increases out of current appropriation for prior year research contraets! This will enable the Department to provide for unforeseen changes at the time such contracts were originally entered and which may develop after thes close of the fiscal year m which the contract was executed! TO bollsteni 11. Internal audit program Internal audit area field offices were established at 5 locations in or der to effectively examine the accounts and financial activities of the 15 regional controller offices. The headquarters staff in Washington directs the major field activities and audits the departmental accounts and financial activitiesuod-nem quitroqer basgillortos gaitemites eplumotions transferredEffective August 1, 1957, the Division of Internal Audit was transferred from the Bureau of Finance to the Bureau of Chief Postal Inspector, ventralizing in one bureate and investigative and audit functions, and strengthening internal control. teProgram broadened broadened and more comprehensive audit program was launched in 19580 Training sessions in the use of statigo tieal samplingdin audits were instituted: The use of the verticalTM &pl proach to auditing was increased, wherein coordinated of simultaneous examinations are made of particular activities or functions at head FINANCIAL MANAGEMENT IN THE FEDERAL GOVERNMENT 189 bentibom пeed eved atпemeriuрer gпitroq9r Isпretni e'tпet qtreatersi upo at selected fierbinstallations tophe noddingpor tome maz hbub summarized theorite reperefbrotaha geneleven and action. Further use will be made of this audrand reporting approach as it results in more significant findings and focuses management's attention upon deficiencies which are nationwide in scope. 12. Reporting for management ajand t800 o no pritopbud.I The primary objective in developing the entire controllership program has been to furnish promptly the type of information, reports, interpretations, and analysis needed by management at the various levels of operation! for decisionmaking on a timely basis. tretro a Jag tror + periodic financial reports. As a result of the develop Controllars ment of an integrated accounting and financial reporting system the controller is able to furnish, management with timely and accurate Tis financial statements of operating results and interpretative analyses egional as well as national financial reports are prepared each a counting period temeiuper Towоgasm bas beoldrow Istot gri Lefast office operating reports In 1956, operating statements for large post offices were developed and prepared by regional controllers éach accounting period for the use of the postmasters at those offices, the regional operations directors and the regional teams reviewing post office operations.dt bas aiand too no togbud baut Leteoq odt II Rost office operating reports offices with annual receipts of $5 mile tion and over the 60 largest post offices do over one-half of the postal business Under the program of extending the controllership concept to post offices, the preparation of the accounting period reports! yas turned 9ver to the chief; accountants at thosel, offices in 1958 Copies of the reports are sent to the regional controller for reviewe comment, and interpretation, and one copy forwarded by him to the regional operations director. The format of the reports has beeni improved from time to time tom tot amotaya gitu to not Post office operating reports offices with annual receipts of $1 tibe $5 million In 1959 the preparation of the operating report, for the next 213 post offices with receipts of between $10 and $50 million was turned over to the chief accountant at each of those officesite The dista tribution is the same as the $5 million office reports anoiter9qo gailb fegional summary of results of operation In 1959, a summarized report of operations of all post offices with receipts over $1 million was prescribed. This summary report is prepared for the regional operations director and Bureau of Operations andd Financeiato headquarters.gotai won 91 229тgao of anoiaeimdre togbird oft bas ooos II. Section 114. Financial reports, .anoitsoftizaslo a most gobo stamit JU of the Treasury; inclusion of Preparation by Secretary of the Trea data, be furnished by agencies. information" by agencies Requirement of law. This Section requires that each executive to fortgobs oft oldiazog agency shall furnish the Secretary of the Treasury such reports and information relating to its financial condition and operations as the Secretary of the Treasury, by rules and regulations may require fors the effective performance of his responsibilities under this section Department's action.-With the installation of the Department's new accounting system and improvements made alb along the line, reports to the Secretary of the Treasury relating to financial condirg tion and operations have been more accurate and timely. The Department's internal reporting requirements have been modified, wherever possible, to meet not only its own operating requirements but also those of the Treasury Department, Bureau of the Budget, and the Congress. PUBLIC LAW 84-863 I. Budgeting on a cost basis Provision of law.-This act provides for the development of costbased budgeting practices and submission of requests for appropriations developed from cost-based budgets. Department's action.-The development of cost data and unit cost techniques are providing management with effective tools for costbased budgeting. A system has been developed which determines the man-hours required to handle variable daily amounts of mail. The workload measurement program, along with the financial operating statements of post offices, provides a yardstick for estimating total workload and manpower requirements. The Department is close to cost-based budgeting now because depreciation and capital expenditures are such a relatively small part of total expenditures, and, for the Department, obligations and expenditures are practically synonymous. For fiscal year 1962, the Department plans to present the postal fund budget on a cost basis, and the five appropriations, paid from the fund, on an obligation basis. It is planned that full coverage on a cost basis will be achieved in the 1963 budget. Simultaneously with the budget presentation, internal use of cost-based budgeting and accrued cost statements are being formulated with a target date of July 1961 for official incorporation in the reporting structure. Development of facilities costs.-Important strides have been made in the development of postal facilities costs, especially in the installation of cost accounting systems for motor vehicles, mail equipment shops, and the six mailbag repair units. Man-hours and workloads. The system of man-hour budget control and the development of workload factors provides the justification and substantiation of various programs on a cost basis, such as mail-handling operations at large post offices, manufacturing operations, Government vehicle program, the mail equipment shops, and the mailbag repair units. Classifications.-The Department's budget and accounting classifications have been integrated in the general classification of accounts, and the budget submissions to Congress are now integrated with the account classifications. Ultimate adoption. The statistics, cost, and accrual accounting programs that have been or will be installed will eventually make possible the adoption of an effective cost-based budgeting system. II. Use of consistent classifications Provision of law.-Public Law 84-863 provides for review and appropriate revision of budget and accounting classifications for consistency and synchronization with organization units to the extent possible. Department's action.-In accordance with the Department's program pursuant to this act, the general classification of accounts was added to give effect to changes necessitated by administrative reorganizations and appropriation changes. Further revisions were made to bring budgetary classifications in line with general ledger account classifications effective July 1, 1958. III. Justification data by organization Provision of law.-Agency action to develop supporting information by organizational unit where budget classifications do not coincide with the organization of the agency is provided under this act. Department's action.-The Post Office Department has revised its activity schedule on a bureau responsibility basis under five appropriations. In addition, a new classification of accounts for programing, budgeting, accounting, and financial reporting has been developed and installed. Every digit of the five-digit number code has a significance which permits accumulation of data by major accounting classification, balance sheet, appropriation or nonappropriation budgetary organization, and object categories. Accounting classifications and organizational units synchronized.— Budget classifications and major organizational units coincide. The objectives of section 2(a), item (3), of Public Law 84-863 have been substantially accomplished through synchronization of accounting and budget classification and organizational structure. IV. Accounting on an accrual and cost basis Provision of law. The law requires maintenance of accounts on an accrual basis, including the use of adequate inventory and property records, as soon as practicable and in accordance with principles and standards prescribed by the Comptroller General. Department's action. Changes in the accounting system to facilitate the integration of obligation and accrual accounting were made during fiscal year 1960. The system will continue to meet the need for control of and accountability for funds at the point of their irrevocable commitment, as required by law. It will also provide a medium for producing cost data on a modified accrual basis and for integrating obligation and accrual accounting for capital items and inventories. V. Simplification of allotment structure Provision of law. The law requires agency action in order to have a simplified system for administrative subdivision of appropriations or funds by financing each operating unit, at the highest practical level, from not more than one administrative subdivision for each appropriation or fund affecting such unit. Department's action. The Post Office Department has instituted allotments of funds on a responsibility basis, with flexible provisions to the extent possible to assure efficient control and use in relation to revenue and workload fluctuations. Man-hour allowances.-A man-hour budget control system was developed and installed whereby allowances are made to postmasters at first- and second-class post offices in man-hours instead of dollars, thus providing a more stable unit of measurement which is not affected by changes in salary rates. Man-hours are converted to dollars for budget purposes. 101 тиамият ант и тияМЕРАИАМ ЈАНИЛИГ Status of reporting funds simplified. The Bureau of the Budget has granted authority (fiscal year 1957) to permit, the Post Office Department to report the status of funds on a public enterprise basis Jinstead of an appropriation basis as heretofore. This eliminates the necessity for attempting to identify disbursements by separate appropriation and is a significant step toward a business-type budget. III Allotments. The objective of financing each operating unit at the -Thighest practical level by a single allotment from each appropriation or Jofund has been substantially accomplished. Holders of allotments are Jsubject to the penal and reporting provisions of the Anti-deficiency atiAbteiver and theme of 20 Traston & Framtro g s -1998 V POSTAL podcrtido 98 PUBLIC Lebada vivitos -019 10 90s to noiteoilizaslo wen & noftibbs l .anoitsinq Bostal policy oqer Isionsait bas gitanos gnitegbud nimeTO ebosThe most significant development in financial management of the 10Post Offices Department was the effäetment of Public Law $85 $426 -0172 Stat. 1844147) on May 2731958, which makes possible the Department's determination to restore fiscal soundness to postal operations. -The act sets forth for the first time a comprehensive statement of erpostal policy which provides that postal rates and fees shall be adnjusted from time to time as may be required to produce revenue equal bto the total cost of operating the Postal Establishment, mif mifits the amount attributable to performing certain public service items enumerated in the act. ajand t800 bro Touroon no no pritmiooo A.VI Provision for biennial reportTiuper wel enT-aral to sroigivor I yrsThis dot also provided that the Postmaster General shah sifbmit a breport to partment and need for adjusting the car status the De bottitani and JMPROVEMENT PROGRAMS FOT FOR THE FUemt noge a of angiaivong oldizelt dtiwaiand vtilidianoq no about to etnemtolls of The Department is continually endeavoring to improve the entire accounting system. Due to constantly changing economic conditions there is also a continued effort to provide a rate structure that will 2 substantially eliminate the postal deficited ballsteni bпs beqolevab arellob to bretani aro-nam ni 29offo taoq aarlo-broosa bus an ts Proxisions of Bostal Roller Act of 1958 codified and enacted as part ofiute 39 or the 101 21slob of bef1970 916 21od-M 291T VIslsa ni agad yd .2920qing jogbud |