Accounting Sections of the old Accounts and Maintenance Division were transferred to the new Budget and Finance Division.

The Statistical Division was abolished and many of the statistical projects previously performed in that Division were discontinued for the duration of the war and a new Statistical Services Section created in the Budget and Finance Division. The functions of this section are to render statistical services to the various operating divisions of the Commission and to supervise all machine tabulation projects.

The new Budget and Finance Division includes five sections, viz: Budget Section, Statistical Services Section, Accounting Section, Audit Section, and Personnel Requisition Section.

The pay roll preparation work was transferred from the Budget and Finance Division to the Personnel Division, although the function of auditing the pay rolls after they have been prepared was retained in the Audit Section of the Budget and Finance Division.

(b) Reorganization of the Investigations Division: A study was made of the organization set-up of the Investigations Division. This study resulted in a number of significant changes in the organization set-up of that Division. The Senior Rating Board and the Junior Rating Board were abolished.

The investigations work and the rating and reviewing work formerly under the supervision and control of two different officials were merged and are now under supervision of the Chief of the Division. Several reassignments of functions and personnel within the Division were simultaneously made.

(c) Simplification of Reports on Personnel Actions to the Civil Service Commission: In an effort to eliminate all reporting and recording not absolutely necessary, a study was made of various types of personnel actions which had to be reported to the Commission by all departments and agencies. As a result of this study the departments were advised that certain types of actions, in the future, need not be reported to the Commission.

It is estimated that this reduced the number of actions required to be reported by approximately 750,000 a year.

At the same time, steps were taken which made it possible to discontinue the use of fanfold forms for these particular types of actions if the agencies cared to do so. Realizing the possible shortage of fanfold forms within the near future, the Commission discontinued the use of fanfold forms in these particular types of personnel actions and asked the various departments and agencies to make a study at once to determine whether they could do likewise.

(d) Application for Federal employment, Standard Form No. 57: In order to correct certain deficiencies in the Standard Application for Federal Employment, a study was made, in cooperation with the Forms Committee of the Council of Personnel Administration, of the use made of that form in various departments and agencies and as a result the format of the application was changed to meet more fully the needs of the majority of the agencies.

(e) Preparation of a complete set of Civil Service Commission organization charts: When the planning staff started to function, it was found that no organization charts for the various organizational units of the Commission had been prepared or maintained. Recognizing that these charts are necessary for management planning and control purposes a complete set was prepared.

(f) Use of Acco fasteners in establishing the Unified File of Service Record and Qualifications Records of all Government Employees: It was found that two Acco fasteners were used in each file-one to fasten the service record cards on one side of the folder and the second to fasten the qualification records on the other side of the folder. A study disclosed the fact that parts of the qualification records were frequently removed from this file and therefore the use of Acco fasteners was time consuming. In addition, the use of both Acco fasteners increased the amount of file space required, and since file cases and Acco fasteners were both difficult to secure, agreement was secured from the operating officials to discontinue the use of one of the Acco fasteners in each file. This resulted in a saving in time, file space, and several million Acco fasteners.

2. Projects assigned but not completed, planning staff.—(a) Development of work programs and work accomplishment and work load statistics for use in management control.

(b) Development of procedure for the submission of suggestions for improvements by employees and for the analysis of and action on such suggestions.

(c) Development of a systematic program for the improvement and simplification of personnel forms and procedures.

(d) Complete study of the contents of all files of the Commission with a view to destruction of such records and papers as may be dispensed with and microfilming of those which are not in continual use.

(e) Study of the possibility of consolidating the oath of office, personnel affidavit, and declaration of appointee.

(f) Preparation of a Civil Service Manual of Rules, Regulations, Procedures, and Instructions.

(g) Development of statistics for the War Manpower Commission on certain professional personnel now employed and future personnel needs in such professional occupations in the Federal Service.

BUDGET AND FINANCE DIVISION

General statement.-As indicated herein before in the justification for the office of the Chief, Administrative Services, the Budget and Finance Division is a new staff division resulting from the integration of the Commission's administrative activities. For the fiscal year 1943, this Division has an authorized personnel of 134, at an annual salary cost of $229,860. No increase in personnel is requested for the fiscal year 1944.

For administrative purposes, these functions have been allocated to six offices or sections. The personnel statistics and work load statistics of each of these sections are presented below.

Personnel requirements, office of Chief of Division. The authorized strength is eight employees at an annual cost of $21,860 and the authorized personnel for 1943 is the same. No increase is requested for 1944.

Personnel requirements, Budget Section.-The authorized 1943 personnel strength of this section is 11 employees at an anual salary cost of $26,800. The burden of work for this section during the fiscal year 1944 will be approximately the same as it was for 1943 and therefore no increase is requested for 1944.

Personnel requirements and justification, Statistical Services Section.-For 1943 the personnel strength of this section is 73 employees, at an annual salary cost of $111,260.

Some improvements are being planned in the statistical program which may result in increased personnel needs in 1944 but, until these are developed, no increase work load is anticipated and no increase in personnel strength is requested. Personnel requirements, Audit Section.-The authorized 1943 personnel strength of this section is 27 employees, at an annual salary cost of $45,820. No increase is requested for 1944.

Work load statistics and justifications, Audit Section.-The basic item of work in the Audit Section is the recording, auditing, and scheduling for payment of all vouchers covering expenditures from the Commission's appropriations.

The large increase in the number of investigators in a travel status during the fiscal years 1943 and 1944 as compared with 1942 accounts for a considerable portion of the increase represented in the above statement. As the Commission's appropriations and personnel increase, the number of vouchers to be audited, recorded, and scheduled for payment naturally increase proportionately. The Commission has not been able to keep current in this work. These 2 factors account for the fact that we have an authorized personnel of 28 for this section during the fiscal year 1943 as compared with 17 assigned to the section in 1942. Since the work load will be approximately the same in 1944, no increase for that year over that authorized for 1943 is requested.

Personnel requirements, Accounting Section.—The authorized personnel strength of this section for 1943 is eight employees, at an annual salary cost of $12,960. No increase is requested for 1944.

Work load statistics and justifications, Accounting Section.-The following statement indicates the approximate number of encumbrances posted by fiscal year and represents the basic item of work for this section. The trend has been upward as appropriations of the Commission increased each year.

Work load statistics and justifications, Personnel Requisition and Clerical Section. In 1943 authorized personnel strength for this office is seven employees, at an annual salary cost of $11,160, and no increase is requested for 1944. No work load statistics have been maintained in this section.

PERSONNEL DIVISION

General statement.-The Personnel Division is responsible for administering a progressive personnel program for all employees of the Commission.

During the past month a study has been made and a reorganization effected of the functions of this Division. They have been allocated to five different offices

and sections, the detailed functions, personnel requirements, work load statistics, and justifications of which are presented below.

The authorized personnel strength of this Division for the fiscal year 1943 is 96 employees, at an annual salary cost of $175,635.

No increase is requested for the fiscal year 1944.

The work load estimates for 1944 in all instances are the same as those included in the 1943 column because it is anticipated that the slight decrease in Commission employees will be offset by an increase in turn-over and in the difficulty of filling vacancies.

The total appointments for permanent and indefinite employees for 1943 is estimated at 3,750. This figure is based on the total personnel of approximately 7,500 and a turn-over rate of 50 percent.

The estimated work load on other items in the 1943 column are based upon actual upward trends developed from statistics maintained in recent months. All of these items increase in direct proportion to an increase of the total employees on the Commission's staff. Accordingly, the estimated work loads indicated in the 1943-44 columns are believed to be conservative and based upon factual information at hand.

Justifications, Personnel Division.-Although there has been an increase in personnel for the fiscal years 1942 and 1943 over preceding years, the ratio of this increase has been very much less than the proportionate in crease of personnel for the Commission as a whole.

The work load statistics indicated in the table presented above show an increase of approximately 66 percent in 1942 over 1941, whereas the increase in personnel is approximately 30 percent.

OFFICE SERVICES DIVISION

General statement.-This is a new division, created in June 1942, as a result of the reorganization of all administrative, business management and planning functions of the Commission.

Personnel requirements, Office Services Division. The authorized personnel strength of 1943 is 316 employees, at an annual salary cost of $454,545. No increase is requested for 1944.

Work-load statistics and justifications, Office Services Division.—The statement presented below indicates the basic items of work for this Division and the comparison of actual volumes by the years 1939 to 1942 and the estimated volumes for 1943 and 1944.

It is anticipated that the 1943 and 1944 work loads will be approximately the same as the actual work-load performance of 1942. For this reason the total personnel requirement is about the same for each year. The reduction of six employees in 1943 below the actual 1942 requirements is the result of a slight savings in time consumed in filing and searching since the destruction and microfilming of certain files started. In other words, by reducing the volume content of files, less time is required in searching and filing in those files. In all other items of work, however, there is more likelihood of an increase than there is of a decrease.

PROJECT 9. EXTENSION OF CIVIL SERVICE

Special appropriation in 1942 for the extension of civil service. In the Third Supplemental National Defense Appropriation Act, 1942, Congress appropriated $781,560 in a separate appropriation titled "Extension of civil service" for all aspects of examining and status work in connection with the extension of the classified civil service, under the provision of title I in Public, No. 880 (76th Cong.). Funds under that appropriation were made available for 18 months from January 1, 1942, through June 1943.

During the 6-month period, January 1 through June 30, 1942, very few cases were submitted to the Commission. As a result only $22,824 were expended on that work during the 6-month period ended June 30, 1942. The balance of the appropriation, or $758,736, will be available during the fiscal year 1943. Νο funds are requested for this purpose during fiscal year 1944 and all cases will be processed prior to the end of 1943 fiscal year.

OTHER OBLIGATIONS

There follows a comparative statement on "Other obligations," indicating the amount spent under each item during the fiscal year 1942 and the estimated requirement by items for 1943 and 1944.

The detailed justifications for each of these items follow.

02 Travel: A total of $1,061,876 is requested for travel expenditures during the fiscal year 1944. This represents a net increase of $2,400 over the funds available in the fiscal year 1943. In the original request made to the Bureau of the Budget, the Commission asked for $820,856 in supplemental funds to provide for travel requirements during the fiscal year 1943. This estimate was based on an increase of 400 in the number of field investigators and an increase of approximately 300 in the number of recruiting representatives of the Commission using travel extensively. On the assumption that the Commission could make extensive savings through the decentralization of both its investigative and recruiting work, the funds requested for 1943 were $320,856 less than would have been required if no decentralization had been effected. With this reduction, the total funds for travel for the Commission during the fiscal year 1943 would have been $1,165,333. A further reduction was made by the Congress in an amount of $110,957 which had the effect of reducing the funds for travel to the present 1943 level of $1,054,376, exclusive of $5,100 received from the emergency fund for the President.

In August 1942, the Commission had 1,252 employees outside the central office who would normally be in travel status a substantial part of their time. As a result of the decentralization program, 662 of these employees had been stationed at points outside the Commission's regional offices in an effort to reduce travel expenditures. It must, of course, be realized that investigators or recruiting representatives of the Commission must still perform travel even though they are stationed at strategic points throughout the country.

It is estimated that approximately 950 employees will be in a travel status almost continuously. On this basis, $1,061,876 will be required for transportation and subsistence expenses.

03 Transportation of things: More than 50 percent of the funds made available to the Commission for this purpose are utilized to pay for the transportation of household goods of investigators. During 1942 and the current fiscal year, efforts have been made to decentralize the work of the investigators by giving them permanent-duty stations at some 200 points throughout the United States. At the same time, the change in emphasis in the recruiting program has made necessary the use of large numbers of persons outside the regional or central office. Nine branch regional offices have been established. On the basis of these considerations, the same amount provided in 1943, namely $37,695, for "Transportation of things" will be required in 1944.

04 Communication services: The amount allotted for the current fiscal year, namely $155,580 is requested for 1944. This is $8,635 less than was actually spent in 1942. The creation of branch offices as well as the decentralization of recruiting and investigatory work will force every organizational unit of the Commission to effect every possible curtailment in the use of communication services. 05 Rents and utility services: The Commission is asking for an increase of $16,750 in this item of expenditure. Funds available in 1943 and estimated for

1944 are as follows:

Fiscal year 1944--
Fiscal year 1943..

Increase

$102, 750

86, 000

16, 750

Practically the entire amount is for the rental of office space for regional offices and for the rental of tabulating machine equipment.

06 Printing and binding: An increase of $21,695 is requested for printing and binding during the fiscal year 1944 over the amount available for 1943. There follows a summary of the funds expended, available, or requested for printing and binding under the appropriations "Printing and binding" and "Salaries and expenses, national defense":

The net increase requested for this object of expenditure amounts to less than one-half of 1 percent. Despite economies such as in item 4, shown in the attached tables, the increase in price or in quantity of other items has unmistakably pointed toward a slightly higher expenditure for printing and binding during the fiscal year 1944.

In estimating the Budget needs for printing and binding, an attempt has been made to anticipate actual needs for the fiscal year 1944. Quantities in certain classes of work have been revised upward to meet the anticipated increase in demand occasioned by the need for a more intensive recruiting program in 1944 because of the scarcity of eligibles. Various factors have been considered in revising upward the unit price for the fiscal year 1944. It is believed that printing costs are certain to rise because of the great amount of overtime going into the production of the Commission's printing at the Government Printing Office. It is also reasonable to expect the prices of paper to rise as well as the prices of various commodities entering into the production of printed material.

There follows a summary of reasons for estimated increases or decreases in the estimated quantities and changes in unit prices. Details as to each class, the average number of pages, the number of copies, the unit cost, etc., are shown in the attached statements.

1. In classes 1, 2, 5, and 6 the unit price has been revised upward to cover anticipated rises in cost of printing for the fiscal year 1944. Inasmuch as the quality of paper used on this type of work will not be lowered, there is no compensating factor to meet the expected rise in printing cost. Quantities have been estimated as closely as possible to meet the expected needs.

2. With regard to class 3 the unit price has not been revised upward because it is believed that substantial savings can be made by the substitution of lower grades of paper and by careful planning and ordering. The saving in unit price is somewhat offset by a slight increase in quantity.

3. The unit price for class 4 has been reduced to correspond with the smaller size of the annual report.

4. Unit prices for class 7 have been revised upward to meet expected rise in prices and to cover new composition and plates made necessary on letterheads by change in designation of district offices to that of regional offices. It is not thought possible to affect savings through reduction in quality of paper on this class of work.

5. Much of the work in class 8 is affected by various changes in rules and laws of the Commission, making changes in plates or new composition and plates necessary. While there has been an upward revision in the unit price, considerable savings will be affected by reduction in the quality of paper and through careful planning of the work before submission to the printer. Quantities have been estimated to allow for the printing of much of this material which is now being processed.

6. There is no change anticipated in the needs for work included in class 9. The unit price has been revised upward to allow for the increased cost of binding.

07 Other contractual services: The estimated needs for this type of service during the fiscal year 1944 amount to $23,530. The item "Other contractual services" includes the cost of repairing and inspecting equipment, emergency procurements, laundry service, etc. More than 90 percent of the amount requested will be used for inspection and repair service to equipment, particularly typewriters and dictating machines. In view of the decreased rate of replacement of equipment now in effect as a result of war shortages, it is believed that the amount estimated herein is a conservative one which may not be reduced. 08 Supplies and materials: For the fiscal year 1944, $436,454 is being requested for purchases of supplies and other materials. This represents a reduction of $57,910 below the amount of $494,364 available during the fiscal year 1943. It should be emphasized that the decrease in the estimate for the fiscal year 1944, amounting to $57,910, was made by the Commission not on the basis of specific items of expenditure, but rather on the basis of an arbitrary determination to economize. The small reduction in total personnel of the Commission now anticipated for the fiscal year 1944 will result in some savings. Other important factors which it is believed will make possible the required economy will be the reduction in the size of mailing lists maintained by the Înformation and Recruiting Division, the reduction in frequency of circularization, and reduction in the size of the publications issued,

It is believed that some economy may also be achieved through more careful use of paper stock, reduction in the number of carbons, and the elimination of rough drafts where possible.