Management Improvement Program1 Annual recurring savings resulting from recorded management improvements during the fiscal year 1961 totaled $8 million and one-time savings amounted to $2.3 million, the highest figures in recent years. Of these amounts over $3 million resulted from the military and civilian incentive awards programs. However, since the value of many of the most significant changes cannot be measured in dollars and cents, these figures are only a small indication of the magnitude of the Treasury's efforts to streamline its organization and operations. A few of the more noteworthy management improvements of the Treasury bureaus are discussed in the administrative reports of the individual bureaus found later in this document. Developments of a more general nature are described below. Mechanization of operations By far the most substantial monetary savings have come from the continued mechanization of Treasury operations. Important benefits continue to come from the utilization of automatic data equipment. The Treasury's entire disbursing process, from initial checkwriting to final reconciliation, is being adapted to automatic data processing methods. Savings bonds now also are processed electronically. The Internal Revenue Service has initiated the use of automatic data processing equipment in processing tax returns and is establishing a central facility where information on all taxpayers and tax sources will be available by electronic means. Several of the larger bureaus use electronic equipment for administrative-type operations, while even the smaller bureaus are exploring means of using this equipment to improve their work programs and administrative activities. These installations have freed many Treasury employees for other work and resulted in substantial savings. Personnel management The Department's Office of Personnel has been reorganized and expanded to strengthen its effectiveness in providing leadership, coordination, and guidance to the bureaus on their personnel programs. Four specialized areas; employment, classification and wage administration, employee relations, and training, have been set up under the Director of Personnel. In addition, the staff handling personnel operations for the Office of the Secretary have been transferred from the Office of Administrative Services to the Office of Personnel. Goals have been established which the Office of Personnel expects to achieve through the cooperative efforts of the Treasury bureaus. A list of 22 projects has been developed for study by work committees composed of departmental and bureau representatives. In order to help the smaller bureaus without the staff resources available to the I See bureau reports for significant bureau improvements. 614359-62-10 139 larger Treasury organizations, the Personnel Office plans to institute personnel administration workshops on the development of programs and procedures and the improvement of operations. In keeping with principles of maximum utilization of personnel, emphasis in several bureaus has continued to shift from meeting immediate training needs to identifying and satisfying career requireMoreover, throughout the Department, there has been a sizable overall increase in training activity to meet problems created by changes in workload, organization, and methods. This increase reflects a greater awareness and acceptance of training responsibility on the part of supervisors and operating officials. Because of the many law enforcement activities of the Treasury Department and the critical importance of its 4,000 enforcement agents, greater emphasis was given to basic and advance training for these employees. During fiscal 1961 the Treasury Law Enforcement Officers Training School continued to improve its curriculum and facilities for basic training of all Treasury agents and significant improvements were made by the Internal Revenue Service in developing comprehensive advance training programs for their agents. Executive development programs in several bureaus were further strengthened by better replacement planning and development, better structuring of jobs for career purposes, and participation in professional executive development courses and other activities which broaden knowledge and increase skill. Financial management Progress in improving financial practices and controls continued, a complete account of which may be found in the Annual Report on Financial Management Improvement Activities for the fiscal year ended June 30, 1961, obtainable from the Bureau of Accounts. Standards were prepared for the content and arrangement of accounting systems manuals to be prepared by the Treasury bureaus, and progress was made in their compilation. Developmental work is continuing in the interest of furnishing management with better and more timely financial information and otherwise providing more effective internal use of cost-based budgets. Also, as part of a continuing program, the Department appraised the internal audit systems of the Bureau of the Public Debt and the Office of the Treasurer with a view to their improvement. In connection with the Treasury's Government-wide responsibility for central accounting and financial reporting, accounts kept in regional accounting offices were streamlined with estimated annual savings of $70,000 resulting. An inventory of Government-wide reports was compiled, and a number of improvements suggested by users were put into effect. These studies and improvements were made in collaboration with the Bureau of the Budget and the General Accounting Office. Property management The Department continued its vigorous efforts to dispose of excess real and personal property promptly and to take full advantage of surplus property available from other agencies. Fourteen excess properties, consisting of land and improvements with an acquisition cost of $285,000, were declared excess to the General Services Administration. Seven other properties previously declared excess to the GSA were sold for $102,000. Sixty-eight parcels of real property not involving acreage, with a total acquisition cost of over $1 million, were disposed of, while 75 additional properties involving an acquisition cost of $1.8 million were reported to the GSA for disposal. In addition to immediate monetary returns, the disposal of such properties reduced maintenance and protection costs to the Treasury. Several Treasury bureaus were moved into improved space in new, modern buildings at field locations, including Internal Revenue Service offices which were moved into new buildings at 11 locations. During the fiscal year the Treasury received from other Federal agencies without reimbursement excess personal properties with an original acquisition cost of $9.8 million. In the same period, personal properties with an acquisition cost of $13.6 million were determined to be excess and available for disposal. Safety program Accident prevention efforts in the Treasury were successful in decreasing the calendar year 1960 accident frequency rate (the number of lost time injuries per million man-hours) to an all time low of 3.9. In addition to a more favorable frequency rate the Treasury record was improved in several other ways. The number of injuries dropped from 730 in calendar 1959 to 633 in calendar 1960; the number of days lost from the job decreased from 40,143 to 37,002; and the total direct cost was cut by $138,000. The severity rate (number of days lost per million man-hours) improved from 252 to 229, and the total direct cost per employee decreased from $7.46 to $5.56. Incentive awards program At the departmental level, responsibility for the incentive awards program was transferred from the Office of Management and Organization to the Office of Personnel. Excellent progress continued to be made, with the number of employee suggestions adopted increasing to 2,464 in fiscal 1961, an increase of 6 percent. Superior performance awards jumped 25 percent to a new high of 2,714. Estimated annual savings rose to over $1 million, 13 percent above the previous year. In addition, $2 million was saved under the military incentive awards program of the U.S. Coast Guard. In that Bureau one award alone saved an estimated $1.8 million. The Bureau of Engraving and Printing won the second annual award of the Secretary of the Treasury for the bureau showing the best average results under the program. Bureau of the Comptroller of the Currency 1 The Bureau of the Comptroller of the Currency is responsible for the execution of laws relating to the supervision of national banking associations. Duties of the office include those incident to the forma 1 Additional information concerning the Bureau of the Comptroller of the Currency is contained in the separate annual report of the Comptroller of the Currency. tion and chartering of new national banking associations, the examination of all national banks, the establishment of branch banks, the consolidation of banks, the conversion of State banks into national banks, recapitalization programs, and the issuance of Federal Reserve notes. Abstract of reports of condition of active national banks on the date of each report from June 15, 1960, to June 30, 1961 Total liabilities and capital accounts.. 131, 433, 174 133, 240, 337 139, 260, 867 136, 100, 845 137, 298, 995 |