ADDENDUM

BUREAU STATEMENTS

OFFICE OF THE SECRETARY

The estimate for the Office of the Secretary is $12,400,000, a net increase of $943,000 and 32 average positions over the proposed authorized level for 1972.

The $943,000 increase for 1973 is arrived at as follows: $579,000 is for the establishment of 27 new (21 average) positions and related costs to handle new and increased workloads; and $459,000 for 11 average positions, annualization for new positions authorized in 1972 and for miscellaneous operating expenses necessary to maintain current levels offset by a reduction of $86,000 due to non-recurring costs and savings.

The new positions include critically needed professional and clerical assistance in the various staff offices. Briefly they are as follows:

A Deputy Secretary and a Deputy Assistant to the Secretary are needed in the Office of the Secretary to assist the Secretary in planning and developing new ideas and initiatives. An Executive Assistant and an Assistant to the Secretary and two secretaries are also needed to help carry out the growing day-today functions of the office. One additional attorney and a secretary are needed in the Office of the General Counsel for the increasing workload in that office. In the Office of Tax Analysis, an Economist position is required to assist in the extensive research and collection and analysis of data in support of the new ADR (Asset Depreciation Rates) regulations.

Two Deputy Assistant Secretaries are urgently needed in the Office of Economic Policy to assist the Assistant Secretary and to alleviate added impacts occasioned by the assumption of revenue sharing responsibilities. In addition, an Economist and two secretarial positions are needed for daily workload increases. An Economist is needed in the Office of Financial Analysis to provide professional assistance with expanding economic developments in the domestic financial and non-financial areas. In the Office of the Assistant Secretary for Enforcement and Operations, three professional and two secretarial positions are required, (a) to take the initiative in examining organization and management problems; (b) establish a management information center; and (c) assist with an expected increase in anti-dumping and countervailing duty complaints. Two information officer positions (Public Affairs) are needed due to increased requests for information ranging from Environmental Financing Authority to how the antidumping law works.

In the Office of the Assistant Secretary for Administration, one Personnel Management Specialist is needed to assist with the pending CSC Federal Personnel Management Information System.

Two Personnel Intern positions are to be set up to provide for future Departmental needs for young, administrative-personnel talent. One Personal Property Management Officer is needed to develop guidelines toward efficient management, selection and use of personal property.

Other increases totalling $459,000 are principally to maintain in 1973 the current levels of employment and operations. Offsetting reductions for non-recurring costs and savings, including a reduction in the average grade of the Office, amount to $86,000.

FEDERAL LAW ENFORCEMENT TRAINING CENTER

The appropriation request for this interagency training center for the fiscal year 1973 is $2,000,000, an increase of $539,000 over the proposed authorized level for 1972.

The Treasury Law Enforcement School conducts a 6-week basic training program in criminal investigation and enforcement law for new agents of the five Treasury enforcement agencies. In fiscal year 1973 the school will add training of Department of State Security Agents, Bureau of Indian Affairs Investigators, Sports Fisheries and Wildlife Game Management Agents and Commercial Fisheries Agents. The expected student load in FY 1973 is 1,265.

Funds and positions are requested to maintain the operations of this activity.

During the current year the Department of Interior is using Center space to train 350 students. In FY 1973 the Center will set up and operate a basic police school to train U.S. Park Rangers, U.S. Park Police, Bureau of Indian Affairs Police, Sports Fisheries and Wildlife Visitor Protection Specialists, Smithsonian Zoo Police and Executive Protective Service Officers. The Center anticipates the training of 450 basic police students during fiscal year 1973. Ten positions (8 average positions) and $260 thousand are requested to set up and operate the Basic Police School.

In FY 1971 the Treasury Air Security Officers School (TASOS) began operations. During 1971, 1,319 Customs Security Officers were trained in this program on a fully reimbursable basis. The school staff is provided by the Center and the five Treasury enforcement agencies, using facilities at Fort Belvoir, Virginia. In FY 1972 the TASOS expects to train an additional 400 students. There are no current plans for continued operation in FY 1973.

In FY 1973 the Center is requesting 3 average positions and additional funds for curriculum development services. During 1971 a contract was placed to revise and update the course outlines. This effort will continue with further contracts to be entered into during FY 1972.

Also, in FY 1973 three additional average positions are requested to allow the administrative staff adequately to service the operational elements of the Center, and plan for the administration of the Beltsville facility.

Construction of the Beltsville facility

An appropriation of $21,000,000 was provided for FY 1972 and that, plus funds available from prior years, will be used for construction during FY 1973. An FY 1973 appropriation is not requested.

The U.S. Secret Service moved into the Special Training Building (STB) during the week of November 29, 1971. Equipment for outdoor firing ranges, indoor firing ranges and the Motorcade Training Area is now being installed.

Approval of the $52,664 thousand Revised Prospectus for this facility was granted by the House Public Works Committee on May 6, 1971, and by the Senate Public Works Committee on November 18, 1971.

The Architect for the facility has submitted to Treasury conceptional drawings.

The Construction Manager for the project is now developing the entire project design and construction schedule.

Action is underway to acquire a privately owned 47 acre tract to complete the 491 acre site.

The Department of the Treasury is working with Federal, State and local officials to resolve the matter of permanent sewer and water services for the total facility.

BUREAU OF ACCOUNTS

Salaries and Expenses Appropriation

The 1973 estimate for the Bureau of Accounts is $62,270,000 a net increase of $1,759,000 above the proposed authorized level for 1972. This net increase is wholly to keep pace with uncontrollable rises in workload. Most of it, a net of $1,683,000, is for the fixed cost of postage on an increased volume of check issuances for social security and other benefit payments. Only $76,000 is the net cost of all the other expenses of producing this additional output and conducting the other activities of the Bureau.

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The central disbursing operation financed by this appropriation will issue 514 million checks in 1973 22 million (4%) above 1972. At the current productivity level, this increased workload would require an additional 79 average positions of employment. However, after giving effect to projected management savings and increased productivity, the net increase for manpower has been reduced to only 36 average positions.

The funding requirements for the other four activities in the Bureau of Accounts are lower in 1973 than in 1972 and show a reduction of 3 average positions.

Government Losses in Shipment

This self-insurance account covers losses in shipment of government property such as coins, currency, securities, certain losses of the Postal Service and losses in connection with the redemption of savings bonds. An appropriation of $700,000 was provided to meet FY 1972 claims which included an unusual loss of $330,000 in connection with the hijacking of a postal delivery truck. Claims in FY 1973 are expected to return to the normal level of about $300,000 -- the amount of this appropriation request.

BUREAU OF ENGRAVING AND PRINTING

The production operations of this Bureau are conducted on a completely reimbursable basis, financed by means of a revolving fund authorized by the Congress. An appropriation of $6 million is being requested for fiscal year 1973 to increase the working capital of the Bureau. Working capital available has been found to be insufficient for the purchase of equipment at current prices to accomplish a necessary modernization program. Faced with continuing increases in the demand for its products, bureau management conducted an in-depth analysis of equipment needed to maintain capacity and efficiency. A program was initiated covering fiscal years 1972 to 1974 for the acquisition of additional modern printing presses and other specialized equipment to mechanize some of the more costly manual processing operations.

The $6 million appropriation for FY 1973 follows the appropriation of $3 million in FY 1972 and will be used to complete the second phase of the Bureau's modernization program. Two additional modern high-speed currency presses together with urgently needed photographic equipment for use in making engraved cylinders will be acquired for $1.3 million to enhance the Bureau's production capacity to meet continuing increases in the level of currency requirements and will result in substantial savings in the cost of printing this major product. Also, for $2.6 million, the Bureau will acquire four production models of the prototype currency numbering and processing equipment acquired last year. This equipment is successfully supplanting the essentially allmanual processing operations after the currency notes are overprinted with the Treasury seal and serial numbers.

Special automatic booklet making machines will be obtained for $.9 million to eliminate the many manual operations employed in making the present postage stamp booklets and more modern surface printing equipment will be purchased for $.9 million to permit more economical production of revenue stamps and a wide variety of products printed by the offset and typographic methods.

In addition to the equipment outlined above, the appropriation request includes $.3 million to initiate a two-year program to modernize the Bureau's security procedures, techniques and controls.

With the increased emphasis being placed on the acquisition of more modern equipment and the further mechanization of some of its more costly manual operations, the Bureau will hold operation costs increases to a minimum and maintain its excellent record of economy and efficiency.

BUREAU OF CUSTOMS

The 1973 request of the Bureau of Customs is $203,400,000 a net increase of $14,400,000 over the authorized level for 1972. Of this increase, $2,000,000 is for a new import statistical program to provide data on valuation of imported commodities, $8,095,000 is to expand the narcotic interdiction program, and the remainder is the increase for maintaining staff and other uncontrollable items after recognition of nonrecurring costs and savings and a $4,500,000 cut in Customs' employment under the President's five percent personnel reduction program.

While reflecting program increases, the budget will in fact require this Bureau to process a greater workload volume and with a smaller work force than was provided by the 1972 appropriation. All major workload indices increased in fiscal year 1971 and have continued their upward advance in 1972. With more merchandise, passengers' baggage and other Customs duties to perform, we will do our best to avoid reducing the quality of the work or increasing backlogs.

On the enforcement side, narcotic and dangerous drug seizure results have been spectacular, reflecting the personnel and technical equipment increases granted by the Congress in late fiscal year 1970 and again last year for FY 1972. In calendar 1971, Customs seizures of hard narcotics exceeded its total seizures in the previous seven calendar years. Seizures of 1,109 pounds of heroin, 48 pounds of opium, 272 pounds of cocaine and other narcotics, 202,106 pounds of marihuana, 6,819 pounds of hashish, and 8,841,105 5-grain units of dangerous drugs were made. The street value of these seizures was more than $327 million. While these results are extremely good, much is still needed to be done to curtail the flow of illegal drugs into the United States. We are working in the area of direct Customs-to-Customs contact with foreign countries seeking international cooperative action while advancing our own expertise in inspection techniques and methodology and application of intelligence to border enforcement.

Surveys have shown that a great number of illegal aircraft are entering this country. We think many of these are engaged in illicit drug traffic. In 1972, Congress provided Customs funds for sophisticated equipment to undertake an air intrusion program. The acquisition and preparation of this equipment is being handled for Customs by the Department of Defense which has been working very cooperatively on this program. The special aircraft and equipment are just being put into service, and we expect them to show significant results. Customs is requesting funds to expand its narcotic program in 1973 in the following areas: $2,506,000 for domestic investigations and intelligence gathering; $3,755,000 for special equipment to expand its air intrusion program, and $1,834,000 for an expansion of its automated intelligence network along the Canadian border and at major airports.

We are currently furnishing some 1,300 security officers on a reimbursable basis to FAA for inflight protection and pre-departure inspection. The requirement is expected to be lower in FY 1973.