I. The I

er 1983 GAOREVIEW

i f-" . ___ I REVIEW The

Winter 1983 Contents Volume 18 Issue 1

1 From Our Bridcase Accounting Update President Signs Internal Control Legislation GAO StafFAppointed to AICPA Committees and Councils Auditing/Accounting Compendium Available Standards-Setting for Financial Reporting Financial Management Issues of the 1980’s Auditing and Accounting Trends Better Information Security Needed Toward a Government-wide Procurement Regulation Regulatory Process-Puzzling to Public Public Fund Digest 4 Onhcation Comptroller General Announces Organizational Changes GAO’s Honor Awards Ceremony Toward the Office of the Future Hispanic Heritage Celebration National Association of Accountants Holds Annual International Conference Association of Government Accountants Gives National Awards San Francisco Regional C%ce Staffer Honored Headquarters’ Writer-Editor Staffs Meet with Comptroller General IPS Director Receives Myrdal Award Third Annual Health Fair Management Development Center Moves s Manager’s Corner 11 Topics in Evaluation 0453~/3 CarlE. Wisler 14 Why AU the Puss Over Olympic Csins? Charles S. Cotton and Leonard W. Ellis 635-3 7 4” i 16 Equal Pay-Fair Play Margaret M. Armen dJ 5’345 21 me fiture of Cost Aeooutltting Stamdards Clark G. Adams and Ralph C. Dawn (57-5546 $44 what‘”ge” Tom Pastore 28 Trmspodation for &heElderly asld Hatldicapped: The Answer Remhs E~MS~VG 6d5-547 d Joanne E. Weaver er er PaulF. Math 3% At Home and Abroad in Paradise: GAO’s Far Ead Branch 88 Is mere a Greater Role fop GAO in hdy&mg the Defense Budget? 82 534% George E. Breen, Jr. and Donna M. Heivslin rL-1 Report Wd&ir@-h or Drudgery? Experknees 011 the Defense Budget Task

Force r -&$.&*$&+ Werner Grosshans 43 “AWee’s Worth” Anne Rucker 45 Boobimmk William k Broadus, Jr. 46 Boobark ]Laurie E. Ekstrand 47 [email protected] Judith Hatter 4s Reflecthams DianeE. Grant 52 GAO Staff Ch-es 55 New Staff Membem 58 ProfessSond Activitiies

Inthearticle ”Nuclear Deterrence-A Short Primer forthe Uninitiated” published in the Fall 1982 issueofthe GAOReview(p. 15), the photographs of authors Robert P. Kissel, Jr. and Elmer Taylor, Jr. were mistakenly transposed. We apologize for the error.

ii

From Our Briefcase

Administration, the Municipal Finance Offi- cers Association, the Office of Manage- ment and Budget, and the Securities and Exchange Commission. Copies of the compendium are available for $1 (postage and handling) by contacting Marti Dillon at (202) 872-8190.

To obtain more information on the items in Accounting Update or to suggest topics for future columns, call Bruce Michelson, (202)275-6222. Standards-Sewfor Finaxmeid Reporting

Ed. Note: In a recentspeech, Joseph E. Connor, Chairman and Senior Partner of Price the GAO Policy and Procedures Man- Waterhouse, the accounting firm, dis- ual for Guidance of Federal Agencies. cussed a subject which is close to The new legislation requires that each President Signs GAOers- improved financialreporting. Internal Federal agency include with its annual With permission from Price Waterhouse, Control Legislatiom statement on internal controls a report the Review staff abstracted some of Mr. on whether its accounting system con- Connor’s thoughts. The following gives a President Reagan, on September 8, forms to GAO’s principles,standards, and private-sector perspective on standards- 1982, signed into law the Federal related requirements. setting for financial reporting. Managers’ Financial Integrity Act of 1982, Public Law 97 - 255. The law establishes GAO Staff Appointed to InflationAccounting: Inflationaccount- within each executive agency a continu- MCPA Committees and ing is one issue on the Financial Account- ous process for reviewing and monitor- colunccils ing Standards Board’s agenda that could ing the effectivenessofits internal control significantly change present reporting system. The head of each executive Three GAO staff members have been practices. Mr. Connor described the agency must prepare an annual state- appointed or reappointedto 3-year posi- FASB’s ”Changing Prices” Statement ment on the quality of the agency’s inter- tions on four committees and councils of (FAS 33) as a step forward in providing nal controls, any weaknesses in them, the American Institute of Certified Public more meaningful financial reports, but and plans for correcting those weak- Accountants (AICPA). Those members he recommended that the impact of infla- nesses. and the committee or council are Ron- tion be reported in the primary income Federal agencies will also now be ald J. Points, Special Advisory Commit- statement. This would lead to a more required to establish internal controls in tee on Internal Controls in the Federal meaningful reflection of profits, and the accordance with standards prescribed Government; W.A. Broadus, Auditing effective tax rates and dividend payouts by the Comptroller General. GAO began Standards Advisory Council and the Man- on those profits, which would in turn result refining and consolidating GAO’s poli- agement Advisory Services Practice Stan- in better informed operating, investment, cies and standards of internal control in dards Committee; and Bruce K. Michel- and fiscal decisions. Mr. Connor added March 1982 (see GAO Review, Fall 1982, son, State and Local Government Ac- that standards should be set to facilitate p. 1 ). That project will be a starting counting Committee. consistent reporting practices regarding point for establishing a comprehensive the treatment of general purchasing power set of internal control standards for the gains on net monetary liabilities. Federal Government. AmIi~Aew-~ In a related move, GAO has embarked Compendium Avdable Pension Accounting: He also ad- on a major overhaul of the principles and dressed the controversy surrounding standards it has established for Federal A compendium of certain accounting pension accounting. “There is a basic agencies. Under the Budget and Account- and auditing pronouncements of inter- disagreement on whether a promise to ing Procedures Act of 1950, GAO is est to CPAs in Government has been pay employee pensions at some far-off required to take the initiative in establish- prepared by the AICPA Committee on future date creates a present liability- ing accounting principles and standards Members in Government. The listing which ought to be recorded-or a pres- for Federal agencies. Those principles includes pronouncements from the ent contingency-which need not be,” and standards are contained in title II of AICPA, GAO, the General Services he explained.

GAO ReVlewNinter 1983 I From Our Briefcase

Mr. Connor’s view is that pensionsare with his suggestions or existing action 0 Clark Adams, PLRD, “Cost Account- aformof compensation, the cost of which underway to resolve them, including ing Standards Implementation.” (See this should be allocated to the periods in which 0 the Federal budget process, issues’s article on Cost Accounting services are rendered. 0 accounting system approval, Standards.) Income Tax Accounting: Existing 0 accounting principles and standards, 0 Dave Bryant, OFM, “Financial Man- accounting principles require that tax 0 internal controls, and agement Improvement-An Agenda for benefits arising currently from timing dif- 0 the single audit concept. Managers.” ferences be deferred by all commercial At the end of his speech, Mr. Bowsher For details, contact GAO individual and industrial companies in all circum- emphasized how progress can be made speakers or write for a summary of the stances. According to Mr. Connor, reex- on these important financial management conference proceedings to C. Hamilton, amination of income tax accounting rules issues: Editor, Government Financial Manage- must consider the fact that some regu- ment TOPICS, Association of Govern- lated industries would suffer serious eco- First and foremost, we must be willing ment Accountants, 727 South Twenty- nomic setbacks if deferred tax accounting to exert necessary effort to effect posi- third Street, Arlington, Virginia 22202. were to disappear without compensa- tive change. Secondly, we must pro- tory changes to rate structures. He pro- vide leadership and communication not Better Mormatian posed that any new standards issued only within the financial management Sedty should preserve present exceptions that community, but with policymakers, pro- Needed recognize the unique circumstances of gram managers, and the public. regulated industries. Two 1982 GAO reports focused on Consolidations: Mr. Connor predicted A brochure of Mr. Bowsher‘s full speech issues within information systems devel- that another important business topic likely is available from GAO’s Office of Public opment and design, including the vulnera- to be debated in the near future isconsoli- Information,Room701 5, (202)275-2812. bility of informationsystems to fraud and dations and the equity method. He felt other illegal practices. The Mission Analy- that the predominant practice of not con- Auditing and sis and Systems Acquisition Division solidating finance subsidiaries will surely Accounting fiends (MASAD) and the Human Resources Divi- come under intense scrutiny because of sion (HRD), in close coordination with the increasing number of bankruptcy the General Government Division and candidates. In addition to Mr. Bowsher’s speech, the Accounting and Financial Manage- Closure: Mr. Connor said that, although numerous auditing and accounting topics ment Division, issued the complemen- the standards-setting process may seem made up the proceedings at the Denver tary reports. MASAD reviewed Federal- dictatorial, the FASB does offer demo- conference. Trends discussed in plenary wide vulnerability problems, and HRD cratic options by inviting businessmen to sessions included reviewed specific vulnerability problems comment on proposed standards. Finan- 0 the impact of government internalcon- at the Social Security Administration cial reporting has grown from adoles- trols in the private sector, (SSA). Both reports reinforce a need for cence to adulthood but has not yet 0 accounting for energy reserves from better information security within the Fed- reached responsible maturity. “That will a State and local perspective, eral Government. come,” he concluded, “only with our active 0 auditing in the 198O’s, Federal agencies rely on computers participation-for the benefit of financial ti budgeting in the 1980’s, and telecommunications networks to reports preparers and users alike.” @ self-developmentfor the 1980’s, and collect, process, store, and disseminate 0 accounting for the 1980’s. informatiowne of the Nation’s most For a reprint of Mr. Connor’s speech, The conference’s 44 workshops elab- important and costly resources. However, “Building a Better World of Financial orated on the messages conveyed by inadequate protection of the computers, Reporting,” write or call Mr. Frederick M. Mr. Bowsher and the other plenary ses- networks, and the informationthey con- Werblow, Price Waterhouse, 153 East sion speakers. GAO staff members con- tain leave them vulnerable to individuals 53rd Street, New York, New York 10022, ducted the following workshops: who would use them for fraudulent, (212) 371-2000. 0 Bill Broadus, AFMD, “Generally wasteful, abusive, and illegal purposes. Accepted Auditing Standardsfor Federal, MASAD and HRD stressed this point in State, and Local Governments--The Yel- their work. low Book.” MASAD reported that the potential for Ehamcial Management 0 Harry Havens, Assistant Comptroller further misuse is growing as Federal sys- Issues of the 1980’s General for Program Evaluation, “Gov- tems become larger and more complex. ernment Budgetary Reforms: An Agenda Their report stated that: In a keynote address before the annual for the 80’s.” (See Fall 1982 Review, p. 20, for a related article.) The Office of Managementand Budget, Professional Development Conference which is responsiblefor Federalinforma- of the Association of Government Accoun- 0 Virginia Robinson and Joe Donlon, tion policy, must clarify guidance con- tants held in Denver on June 14, 1982, AFMD, “Reflections on the New GAO cerning automated information security Comptroller General Bowsher called for Process for Approving Accounting Sys- and take a stronger oversight role. Execu- extensive change in Federal budget and tems.” tive agencies must establish and main- accounting procedures to meet the ris- 0 Ron Points, AFMD, “Generally Ac- tain cost-effectiveadministrative, physi- ing costs of Government programs. He cepted Accounting Principles-New cal, and technical controls to protect examined a number of important current Developments at the Federal, State, and their automated information systems from financial management issues, together Local Levels.” misuse.

2 GAO ReviewlWintm 1983 From Our Briefcxse

HRD,in its related report, presented vices Administration have signed a examples of continuing systems-planning Memorandum of Agreement with respect toa forthcoming Federal Acquisition Reg- problems as well as misappropriation of The InternationalConsortium on Gov- ulation (FAR). (See OMB 82-17.) This funds at SSA. One example involved the ernmental Financial Management, an agreement represents nearly 4 years of U.S. Attorney’s Office in Los Angeles, international grouping of organizations agency work to consolidate and simplify California. That office completed suc- and people involved in the management the agencies’ regulations into one FAR. cessful prosecution of an SSA field office of public funds, has recently published It includes procedures for coordinating employee who had fraudulently used the the Public Fund Digest. The Digest brings with the private sector on the new revised telecommunicationsnetwork to steal more together in one journal some of the best procurement regulations by requiring that $104,000 in supplemental security articles published by the Consortium’s publication of the FAR and its subse- income (SSlj benefits. membership, enabling all to benefit from quent revisions in the Federal Register the exchange of perspectives, information, This was the third such case prose- prior to effective dates. The FAR is and new concepts in governmental finan- cuted by that office since 1980. In each intendedto replace current Federal Pro- cial management. case, incorporation of a personal identifi- curement Regulations, most civil agency cation number (PIN) into SSA’s telecom- procurement regulations, the majority of munications software to identify all system the Defense Acquisition Regulations, and The Consortium represents over users and to trace all system transac- the NASA Procurement Regulations. 250,000 financial managers, accountants, tions probably would have prevented the During 1982-83, two groups familiar and auditors from all parts of the world. It crimes. At a minimum, PINS would have with defense and civilian procurement, encourages its members to promote a provided a means to quickly and easily the Defense Acquisition Regulation Coun- better understandingof professional finan- identify and trace the fraud. cil and the Civilian Agency Council, will cial management among public officiais HRD’s analysis of information secu- review individual portions of the FAR and through, for example: rity at SSA reiniorced MASAD’s Govern- will work to bring the current regulations ment-widefindings that central agencies into line with them. After the FAR’S publishingthe results of research and must cooperate more to coordinate implementation, now planned for Octo- training, policies, principles, standards, and guide- ber 1,1983, the councils will handle cases 0 providing an international clearing- lines for information protection to sub- arising out of FAR provisions, propose house of information relevant to govern- stantially reduce the vulnerabilities and changes to the FAR, and develop sepa- mental financial management, and risks presently associated with execu- rate operating guidelines. For additional e collaborating on financial management tive agencies’ automated information information, contact the Office of Man- technical assistance programs with devel- systems. Numerous specific recommen- agement and Budget’s Public Affairs oping countries. dations in both MASAD’s and HRD’s Office, (202) 395-3080, or GAO’s Bob reports amplified this theme. Bontempo, AFMD, (202) 275-4285. The areas which constitute the disci- plines of governmental financial manage- Ed. note: In response to reader ment-accounting, auditing, budgeting, requests, the Review will continue to @&8- data processing, debt administration, include items on ADPlinformation man- Ria? retirement administration, and treasury agementfields. For details on the reports management--provide the general frame discussed above, call Harold Podell in Reviewing regulations and interview- of refgrence forthe programs and opera- MASAD, (202) 275-181 1, or Dave Kent tions of the Consortium. ing their authors is often an auditor’s in HRD, (301) 597-3010. Copies of The Public fund Digest, Volume I, “Federal Information Systems Remain role. But according to The Washington Post, a Gallup Poll conducted for the No. ,, contains articles such as Highly Vulnerable to Fraudulent, Wasteful, in the Americas--What the Future Holds,3! Abusive, and IllegalPractices“ (MASAD League of Women Voters’ Education by Elmer Staats, “Accounting to Parha- - 82 - 18,Apr. 21,1982) and “Examina- Fund shows that many outside the Gov- ment,” by Joel Barnett, and “International tion of the Social Security Administration’s ernment aren’t sure where the regula- Dimensions of Governmental Financial tory process begins. (SSA’s) Systems Modernization Plan” Management...” by James Hamilton. (GAOI HRD - 82 83, May 28, 1982), Ten percent Of those polled said that - Readers are invited to request compli- the courts wrote Federal regulations,47 may be obtained from GAO Documents from Distribution, room 15 18, (202) 275-6241. percent said the Congress wrote them, mentaw c5pies* usually S3.O0 Diane Grant, (202) 275-5534. and only 17 percent correctly answered that the executive branch has that I- responsibility.Asked which were written first, laws or regulations, 29 percent said “No passion in the world is equal to the laws; 28 percent, regulations; and 14 passion to alter someone else’s draft” percent said both are written at the same H.G. Wells Three Federal agencies have taken a time. “Nor is there greater setisfaction in the major step toward achieving a single world when one 6oeoesn’t find a need to.” Government-wide procurement regula- Interested readers may request a copy D. Day tion. The Department of Defense, the of the regulatory poll or more information Second quote abovs may be attributed NationalAeronautics and Space Admin- from the League’s Government Voters to Donald E. Day, senior associate direc- istration (NASA), and the General Ser- Service, (202) 296-1770. tor in MASAD.

GAO ReviewAVinter 1983 On Location

1 the worst stereotype, Mr. Caplinsaid that, ~moulrces argamfza-during his years as IRS Commissioner, tiond Changes he was impressed with the honesty, loyalty, and dedication of the Federal On October 1, 1982, several GAO worker. organizationalchanges went into effect. “It is particularly important,” said Mr. Comptroller General Bowsher also estab- Caplin, “to put these criticisms in their lished several Assistant Comptroller Gen- proper setting. That’s why we need events eral positions, outlined in this issue’s “GAO like awards ceremonies to recognize Staff Changes.” excellence and special achievement, to The changes are shown on GAO’s help restore the public’s faith in the qual- current organization chart. ity and integrity of Government, and to sav ‘thank YOU’ for a iob well done.” Programs listing the GAO awardees GAo’S Rbmmr Awards and their achievements may be obtained Ceremony from Deborah Curtis, (202) 275-31 17.

On Stage Behidthe Ssemes

The U.S. Marine Band and the Joint In the midst of the preparationsfor this Armed Forces Color Guard opened this year’s awards ceremony, the Review year’s Office-wide Honor Awards Cere- interviewed Personnel’s Deborah Curtis, mony, held at 6:OO p.m. on October 14 in the Awards Committee’s executive the Rayburn House Office Building. Over secretary, for a behind-the-scenesview. 50 awards in 6 categories were presented, Ms.Curtis was responsible for coordinat- including best articles published in the ing the activities that made the program GAO Review, Equal EmploymentOppor- run smoothly, from composing the offi- tunity, MeritoriousService, Distinguished cial invitations to locking the last exit Service, the Comptroller General’s Award, door. (Wls. Curtis has been with GAO and the GAO Public Service Award. since 1980 and has an additional 8 years After introductory remarks by MASAD of experience in personnel work with the director Walton H. Sheley, who served Smithsonian Institution.) as this year‘sawardscommittee chairman, Deborah shares her experiences in Comptroller General Bowsher spoke. He preparing for the ceremony: noted that this was his second awards ceremony as Comptroller General-his After notifying divisions and offices of first after a full year in office-and that, the award recipients, my next step was “in honoring the few, we pay tribute to finding a suitable place for the ceremony. the many who work day in and day out to We anticipated a crowd of 400, and I accomplish the important role of the finally found a site at the Rayburn House GAO.” Office Building. i was impressed with Keynote speaker Mortimer Caplin, a the space and the reasonable refresh- partner in the law firm of Caplin and ment costs, but we needed a congres- Drysdale, Washington, D.C., and former sional sponsor for our event. After a few Commissioner of the Internal Revenue phone calls, Rep. Ed Jones agreed to Service, echoed Mr. Bowsher’s theme. be our sponsor. Caplin stated that the awards process is All the major details seemed to be in a consistent reminder of a remarkable order, when, about 2 weeks before the group: the able and dedicated people ceremony, /received a callfrom a mem- who serve in the career Federal service. ber of the Rayburn Building’s adminis- The awards process, he said, recognizes trative staff. She was requesting that a the crucial role the Federalservant plays list of names of all the guests at the in meeting the needs of our political and ceremony be provided to the Capitol social order. Police. In the past, we had encouraged Mr. Caplin pointed out that Vietnam, all GAOers to attend, so we felt it would Watergate, and the troubled economy be virtually impossible to get an accu- all contributedto unfair and unwarranted rate list of attendees prior to the night of criticisms of the career service. While October 14.

4 GAO Revlewrninter 1983 I I I On Location

exchanged among offices and sites all Future issues of the Review will high- zonte, a group of local professionals who over the country. In fact, it is now possi- light various aspects of this system. also work together a musicians to share ble for GAO staff at any telephone in the cultural awareness through their peifor- United States to communicate data and mances, followed by the keynote address text to and from our workstations by using of Mr. Tony Bonilla. Mr. Bonilla is the portable terminals (equipped with built-in president of the League of United Latin modems). American Citizens (LULAC), the Nation’s GAOs program marking Hispanic Heri- largest Hispanic membership organiza- Another advantage of this new net- tage Week included speeches, music, work is that, after being set up to tion, LULAC was established in 1929 to and an important announcement by improve the status of Hispanic persons communicate, the stations can receive Comptroller General Bowsher. He chose data unattended. They can also send or in the United States. Mr. Bonilla endorsed the occasion to describe a stepped-up the Comptroller General’s recruitment and receive information “in background while program to hire Hispanic and Asian- the screens, keyboards, and printers are hiring initiatives but pointed out that many Americans for both professional and of the Nation’s businesses and govem- being used for entirely unrelatedpurposes. administrative positions. During his talk, This is possible because the data is sent ments base their dealings with Hispan- Mr. Bowsher noted that in fiscal year ics on false images created by the media. and received from “floppy disks.“ 1983-84, he would like GAO to strive He concluded by insistingthat “civil rights toward the goal of employing 15 percent is not a negotiable item” and urged Floppy disks, which have replaced the Hispanic and 5 percent Asians among employers to provide Hispanics with their cassette tapes previously used with our both headquarters and regional co-ops- fair share of business opportunities and Lexitrons, look like 45 rpm phonograph employees who are cooperative educa- decisionmaking positions. A sizeable audi- records enclosed in 8-inch protective tion students. To the extent that GAO is ence of GAOers applauded his remarks. jackets. When a floppy disk, jacket and able to make permanent appointments Additional programs from the Seotern- beyond the conversion of co-ops, he ~ I--- . all, is inserted into the station, a drive ber 16,1962, program may be obtained inside the console rotates the disk at thought that hiring goals of 15 percenr from GAO, room 4063. high speed while information is plucked Hispanics and 5 percent Asian were chal- off at the operator’s command. lenging yet realistic, given Hispanic and Each floppy disk has a capacity of Asian representationin the labor market. 250,000 characters, or about f 27 pages Mr. Bowsher made his remarks after an of text, and any or all of the material can introductionto the morning’s program by be transmitted via the modems over tele- Rosa Mercado Johnson, Hispanic Em- phone lines. This capability is one of a ployment Program Manager, International variety of technological advances which Division, and a welcoming speech by wilt help move GAO from a “paper-bound’ Alex Silva, director, Civil Rights Office. In June 1982, numerous GAO staff environment toward becoming an “office Highlights of the program include the members participated in the National of the future.” Hispanic music of the Trio Nuevo Hori- Association of Accountant’s annual inter-

6 GAO ReView/Winter 1983 national conference. For the first time in mick for her “exceptional professionalism, editors will held annually. It provides an 18 years, the conference was held in personality, dedication, and leadership excellent forum for exchanging informa- Washington, D.C. qualities (that) have earned her the trust tion and for presenting concerns to Frank Subalusky of the Resources, and respect of GAO’s management, audit, management. Community and Economic Development and administrative staffs.” Division headed the planning of the event. WEDirector Receives He noted that the conference was In addition to her role as a manage- MyrddAwad designed to provide a national perspec- ment assistant responsible for tracking tive on professional development and audit assignments and staffs, she is the education, not only for accountants, but On October 28, 1982, Dr. Eleanor administrative representative on the Chelimsky, director of GAO’s Institute also for auditors and many other people region’s Equal Employment Opportunity interested in financial management, for Program Evaluation (IPE), received Advisory Council and was in charge of the Evaluation Research Society’s 1982 productivity, and communications. the office’s Combined Federal Campaign. Conference sessions are available on Myrdal Award for Government “in recog- nition of her leadership in building a dis- cassette tapes, according to Mr. Suba- quarters9WPiblP- lusky. These include the keynoteaddress tinguished and highly regardedprogram by Donald T. Regan, Secretary of the r Staffs Meet with! evaluation unit within the US. General Treasury, as well as talks on the account- QCaPntap&raUerGemerd Accounting Office.” ing profession in the Arab world, small business computers, and the economy. A luncheon meeting with the Comptrol- For more information and a complete ler General highlighted the July 23 con- listing of sessions, call Frank Subalusky, ference for headquarters writer-editors (202) 443-8691, or Minute Tape, Inc., and editorial assistants. The main agenda (213) 997-1149. item was the Comptroller General’s nine- member Reports Task Force, a group establishedin June 1982 to research the report-writing process. Milt Socolar, Spe- cial Assistant to the Comptroller General, and Ira Goldstein, who heads the task force, were present to answer confer- ence participants’ questions. Other During its midJune 1982 Professional agenda items included talks by John Development Conference in Denver, the Heller, Assistant Comptroller General; Association of Government Accountants Patricia Moran, Information Officer; a dis- (AGA) awarded two of its top national cussion of the new Editorial Style Man- awards to recipients from GAO. ual soon to be issued; and a briefing on Ron Points, AFMD, received one of the new GAO course, “Managing the three distinguished leadership awards Review and Writing Process,” which for his work in fostering improved account- includes a unit on the functions of ing standards. AGA awarded its Robert writer-editors. W. King Memorial Award posthumously The luncheon meeting was the first of to Don Scantlebury “for his outstanding its kind in GAOs history. It gave Mr. contributions and dedicated service to Bowsher and his staff of writer-editors the Association and to the profession, of (most of whom were meeting him for the such significance as to have brought first time) the opportunity to share their national and internationalprestige to the thoughts on a much-discussed subject Association of Government Accountants.” within the agency: the quality of writing. The Evaluation Research Society Mrs. Scantlebury accepted the award. Mr. Bowsher expressed his concerns about the agency’s need to improve the (ERS) has been giving annual awards in San&mdsc@sRe@Csmd quality and timeliness of its reports and honor of Gunnar and Alva Myrdal and the need for employees who can write Paul Lazarsfeld, exemplary social scien- Office SWfer Homored well. He emphasized the importance of tists, to government executives, evalua- writer-editors within GAO and assured tors, and researchers who have made Clifteen Ann Amador of GAO’s San them that no change in their operations distinguished leadership and research Francisco Regional Office (SFRO) was was necessary at that time. contributions to evaluation research. honored in September with a nomina- Writer-editors talked with authority (Former Comptroller General Staats has tion for the 1982 Federal Clerical Em- about some of their successful and not- also received this award.) ployee of the Year award. Each year the so-successfulexperiences with reportwrit- Dr. Chelimsky was selected this year San Francisco Bay Area Federal Execu- ing and processing. They also offered from among a large number of nominees. tive Board recognizes outstanding Fed- their assistance in promoting the task Her award was presented at the ERS eral employees in several categories. force’s efforts. annual meeting in Baltimore. Ms. Amador, as one of the nominees, This 1-day conference was the third of , was cited by SFRO manager Tim McCor- many that regional and divisions’ writer- See L OCA JiON, p. 49 I

GAO ReviewA%‘inter1983 7 Manager’s Corner

The Management Development Pro- mally theirefforts, and (4) lacked reward must (a) communicate its needs to gram at GAO focuses on strengthening systems for changed behavior. In a for- employees in terms of expected behav- management practices so that GAO can estry company with 700 unionized iors, (b) monitor overall performance in accomplish its goals and objectives more employees, trainers used a “modeling- relation to its needs, and (c) communi- effectively, efficiently, and economically. based” training design to solve supervi- cate individual performance results to This issue of “Manager’s Corner” pres- sory problems which were lowering employees and follow up accordingly with ents the theory and pracice of manage- productivity, and they hoped to solve some praise, coaching, or remedial action. To rial training and explores its effect on of the problems with transferring learn- achieve job satisfaction, employees must both public and private instutions. ing to the job. know (a) what is expected of them, (b) Tom Franklin,directorofOOHD, asked After supervisors had indicated the top what they are accountable for, (c) the membersof OOHDs Management Devel- ten supervisory problems (such as han- acceptable standard of performance, and opment Unit to review articles on mana- dling employee complaints or getting com- (d) how they are performing in relation to gerial training. His introduction and their mitments to performance goals), the train- the sets of expectations. summaries accompany a bibliography ers taught a simple design of identifying To meet the organization’s need for on managerial training and a general the problem, solving it, and following up. each employee to see a clear relation- bibliography on selected management They did so in 7 weekly workshops of 6 ship between performance and the topics. hours which middle managers taught to organization’s ultimate goals, the firm GAO’s Management Development supervisors and employees. Their class- developed a communication-based man- Program is designed to improve man- room design was based on social learn- agement system. This system is organ- agerial performance at GAO, to develop ing theory. Its steps follow: ized around the “job model,” which programs for managers which will prompt e Present the concepts. specifies the results of activities as they them to improve theirskills, and to ensure 8 Demonstrate the successful use of the relate to the organization’s needs. The a pool of highly qualified candidates for skill. remainder of the article discusses in some future managerial and executive posi- o Rehearse theskills in front of the class. detail how to formulate the job model tions. Management literature stresses (This is different from role-play because and how the model can be used as a tool the need for managers to possess skills the skill is specific and must be for managing individual work units. in order to successfully accomplish the perfected.) (Reviewed by Sande L ehrer, Education goals of the organization. Well-trained e Discuss problems and strengths; rein- Specialist) managers help an organization to run force the skill. smoothly; they know how to manage 0 Make contracts with class to transfer Mahoney, Francis X. “ Targets, theirstaffs in order to provide for continu- the skill to a specific problem on the Time and Transfer: Key to ity in the organization; and they recog- job. Management Training Impact.” Per- nize the importance of continually e Follow up at the next session to see if sonnel, 57, No. 6(November-December developing and upgradingtheir own skills the skill worked. 1980). to meet changing expectations. Trainers found that by using these Training and development for these methods, they were able to change work Dr. Mahoney reasons that training has skills are complex, but as the following behaviors, decrease absenteeism, and impact if it is organized as a half-day articles suggest, an organization must even after 8 months,to increase produc- working session aimed at a particular plan for the use of its human resources. tivity.(Reviewedby Kathy Karlson, Edu- job target. This training design requires, Tom Franklin, Director, OOHD cation Specialist) first, that managers identify specific prob- lems or organizational topics which need (Please call Kathy Karlson at (202) Benford, Robert J. “Found: The Key attention, and second, that managers 272-3060 for questions or suggestions to Excellent Performance.” Person- schedule meetingswith decisionmakers about “Manager’s Corner.”) nel, 58, No. 3 (MaylJune 198l), 68-77. on the topic to plan, to solve problems, and to coordinate. If more time is needed, This article describes one firm’s search another meeting can be scheduled to Anderson, Brad and Jerry 1. Porras. for the key to why certain supervisors gather more data or test ideas. “Improving Managerial Effectiveness and work groups consistently achieve Through Modeling-Based Training.” superior productivity as well as outstand- This process is called “management Organizational Dynamics, 9, No. 4 ing employee satisfaction.The results of on purpose.” Managers reconvene up to (Spring 1981),60-77. an inquiry indicated that the more suc- eight times a year so that management cessful supervisors were able to increase informationcan be applied by practicing The authors describe a training pro- both productivity and employee job satis- managers. At each working session, credi- gram which solves some of the prob- faction by establishingeffective commu- ble managers present management the- lems in transferring learning to the job. nication with their subordinates and getting ory information relevant to the target issue. They suggest that managerial training them to see the relationshipbetween the Transfer of learning is accompllshed has often failed to produce change organization’s goals and their work units’ because managers go back to the job because trainers have (1 ) tried to change outputs. with new approaches and solutions and behavior by teaching theory, (2) been The author discusses the factors affect- the conviction needed to discuss them. ; unable to convert classroom learning to ing productivity and job satisfaction. To Management ”on purpose” depends on job behavior, (3) failed to diagnose for- achieve productivity, the organization five elements in the training:

GAO Reviewmhter 1983 Manages’s Corner

0 Accountability-Managers talk with Puffer, Sheila M. “Inside a Soviet Man- in-house programs as being glorified their superiors and subordinates before agement Institute.” Cabfornia Manage charm schools and and after the working session to set pur- ment Review, 24, No. 1 (Fall 1981), 0 select and build a program of high poses and to determine how to carry out 90-96. quality and high organizational accep- action plans. tance and impact. 0 Leadership-Sessions are led by sig- In reviewing a Soviet management The author’s 12 years of experience nificant managers of the organization. institute, Ms. Puffer states that, over the suggest to him that unsuccessful in-house 0 Design-Sessions use the manage- past decade and a half, the gross ineffi- programs typically have the following ment skills of diagnosing,analyzing, and ciencies of the Soviet economic system+ characteristics:the content is more of an developing, not skills such as labeling, wasted resources, unfulfilled production indoctrination than the development of defining, and classifying. quotas, low productivity, inferior product knowledge and skills, the content has 8 Preparation-Skills or information quality-have changed little. What has not been altered in years, one individual needed for the working session are changed is the Soviets’ attitude towards in the organization has primary ownership, acquired by presession work. managers who cope with these problems: and top management has little or no inter- 0 Follow-upTo facilitate accomplish- the Soviets have designed their own exec- est in the program and provides no posi- ing action plans, session leaders are utive development program. tive reinforcement of it. Overcoming these debriefed by the managers responsible This “upgrading-of-skills program” was problems depends on the involvement for the organizational target. founded in 1965 as part of the changing of all levels of management and of perti- These elements support the training economic emphasis on management of nent staff, what the author calls an and transfer of learning. (Reviewed by the national economy. The program’s increased usage of the collective term Janet Coffin, EmploymentDevelopment goal is “to equip managers of the national “we.” Specialist) economy with knowledge and skills in Main, Jeremy. “The Executive Yearn the field of management, economics and The author suggests other steps to to Learn.” Fortune, 105, No. 9 (May 3, organization of production, computers, ensure acceptability, steps such as choos- 1980), 234-248. and automated systems of management ing the appropriate learning mode, necessary for contemporary managers.” custom-designing course segments, and Mr. Main discusses the rapid growth Participants, mostly senior managers and periodically reviewing course content. His of management educatim and some of their assistants, attend the course on a main point is that top management sup- the issues in management education. full-time basis for 3 months. The class is port and commitment are the first logical He states that the need for management divided into four subgroups, which allows steps in the process of designing a man- education in this ever more complex participants to be grouped with peers agement development program. (Review- world is so diverse and changing that it from their sector of the economy. The ed by Cindy Clark, Supervisory Employee has not yet been measured as a whole. predominant instructional method is Development Specialist) The nc )profit American Management lecture, with the supplement of two Association, the largest provider of man- “concrete situations” (case studies) and Management Development agement education, has tripled itsannual management simulations. Major lecture andTraining offerings since the mid 1970’s. Profit- topics include general management, making firms are also growing fast, some industrial issues, and politicsand planning. Anderson, Brad and Jerry I. Porras. by over 30 percent a year, and many Upon completion of the program, parti- “Improving Managerial Effectiveness universities and colleges are expanding cipants are expected to prepare and pres- Through Modeling-Based Training.” their management education programs. ent a 60-page report in which they analyze Organizational Dynamics, 9, No. 4 The primary issue in management edu- a current problem in their enterprise and (Spring 1981), 60-77. cation is the assessment of its benefits. integrate the material learned in the Benford, Robert J. “Found: The Key to These benefits are difficult to identify course. The papers are to address any Excellent Performance.“ Personnel, 58, because most companies make no of the following general issues: the No. 3 (May/June 1981), 68-77. attempt to track the before and after per- increase of labor productivity, the reduc- Bresnick, David. “University/Agency Col- formances of their executives. Mr. Main tion of operating costs, the economical laboration in Management Develop- states that short seminars receive the use of raw materials, or the improve- ment Efforts. “ Public Administration most criticism and that the benefits of ment of management systems. (Review- Review, 41, No. 6 (November-Decem- longer courses at the better-knownbusi- ed by Marty Herrin, Employee Develop- ber 1981), 683-686. ness schools are accepted as a matter ment Specialist) Clement, Ronald W. “Evaluating the Effec- of faith by the corporations paying the tiveness of Management Training: Pro- bills. To overcome complaints that train- gress During the 1970’s and f rospects ing programs are often irrelevant, some Truskie, Stanley D. “Guidelines for for the 1980’s.“ Human Resource Man- management consulting firms have devel- Conducting In-House Management agement, 20, No.4 (Winter 1981), 8-13. oped programs especially designed for Development.”Personnel Administra- Condeni, Tony. “Building Skills Through the top management of a particular tor, 26, NO. 7 (July 1981), 25-27. Self-Awareness.” Management World, organization. While they are the most 11, No. 5 (May 1982), 33-34. expensive type of management educa- The author suggests that for an effec- Daly, Andrew. “Management Develop- tion, these programs are probably the tive management development program, ment Gears for the 80’s.” Training most effective and seem to be the most the management development consul- DevelopmentJournal, 34, No. 12 (De- pleasing to clients. (Reviewed by Don- tant must cember 1980), 88-92. ald Smart, Consultant) 0 overcome the tarnished image of Hodgson, Vivien, and Michael Reynolds.

GAO ReviewNinter 1983 9 Manager’s

“The Hidden Experience of Learning 35, No. 9 (September 1981), 68-70. Forbrum, Charles. “Conversation with Events: Illusions of Involvement.” Siegel, S.R. “Improving the Effective- Reginald H. Jones and Frank Doyle.” Personnel Review, 10, No 1 (1981), ness of Management Development OccupationalDynmics, (Winter 1982), 26-29. Programs.” PersonnelJournal, 60, No. 42-63. Jennings, Eugene E. “How to Develop 10 (October 1981), 770-773. Forbes, J. Benjamin and James E. Piercy. Your Management Talent Internally.” Treadgold, Rich. “At Last a Train- “Industry Differences in Chief Execu- PersonnelAdminstrator, 26, No. 7 (July ing Program That Works.” Personnel tive Offices.’’ MSU Business Topics, 1981), 20-23. Journal, 61, No. 2 (February 1982), 29, No. 1 (Winter 1982), 17-29. Kelsey, Harry, Jr. “Practicing What They 110-112. Garretson. Pamela and Kenneth S. Teel. Preach: Successful Management Truskie, Stanley D. ”Guidelines for Con- “The Exit Interview: Effective Tool or Development Programs.” Business ducting In-House Management Devel- Meaningless Gesture?” Personnel, 59, Horizons, 23, No. 6 (December 1980), opment.” Personnel Administrator, 26, NO. 4 (JUly-AUgUSt 1982), 70-77. 3-6. NO.7 (July 1981), 25-27. Gilmore, Carol 6. and William R. Fannin. Langdon, Danny G. “The Individual Man- Truskie, Stanley D. “Getting the Most “The Dual Career Couple: A Challenge agement Development Program.” From Management Development Pro- to Personnel in the Eighties.”Business Training and Deveiopment Journal, 36, grams.” Personnel Journal, 61, No. 1 Horizons, 25, No. 3 (May-June 1982), No. 3 (March 1982). 78-82. (January 1982), 66-68. 36-41. List, Charles E. “Behavior Modeling: Link- White, Michael C. “A Critical Review of Kaye, Beverly L. and Shelly Krantz. ing Theory With Practice.“ Training, Female Performance Training and “Preparing Employees: The Missing 19, No. 1 (January 1982), 28-30. Organizational initiatives Designed to Link in Performance Appraisal Train- Mahoney, Francis X. “Targets, Time and Aid Women in the Work-Role Environ- ing.“ Personnel, 59, No. 3 (May-June Transfer: Keys to Management Train- ment.” PersonnelPsychology, 34, No. 1982), 23-29. ing Impact.” Personnel,57, No. 6 (No- 2 (Summer 1981), 227-248. Kreitner, Robert. “Personnel Wellness: vember-December 1980), 25-30. It’s Just Good Business.” Business Main. Jeremy. “The Executive Yearn to Horizons, 25, No. 3 (May-June 1982), Learn.” Fortune, 105, No. 9 (May 3, 28-35. 1982), 234-236, 240-244, 248. Bobbe, Richard and Robert Schaffer. Latham, Gary P. and Herbert A. Marshall. Nichols, Leland C. and Joseph Hudson. “Want Productivity Improvement?Man- “The Effects of Self-set, Participatively “Dual Role Assessment Center: Selec- age It!” Administrative Management, Set and Assigned Goals on the Perfor- tion and Development.” Personnel 43, NO.8 (August 1982), 22-25, 78. mance of Government Employees.” Journal,60, No.5(May1981),380-386. Bozeman, Barry and James Massey. Personnel Psychology, 35, No. 2 (Sum- Owens, James. “A Reappraisalof Lead- “Investigation in Policy Evaluation: mer 1982), 399-404. ershipTheoryand Training.”Personnel Some Guidelines for Skeptical Public Mahoney, Francis X. “Team Develop- Administrator, 26, No. 11 (November Managers.” Public Administration ment, Part 6: Variations of Procedure 1981), 75-84,98-99. Review, 42, No. 3 (May-June 1982), Meetings.” Personnel, 59, No. 4 (July- Parke, Lauck E. “Management Develop- 264-270. August 19821, 64-69 ment Education in the Public Sector.” Clarke, Richard M. “Middle Management Mooney, Marta. “Organizing for Produc- New England Journal, 8, No. 1 (Fall Today: Who’s Calling the Shots?” tivity Management.” NationalProductiv- 1981), 65-74. Management Review, 71, No. 7 (July ity Review, No 2 (Spring 1982), Prekopenko, J. and Lester R. Bittel. “A 1982), 21-25. 141-150. Modular Course Format for Supervi- Cooper, Cary L. and Marilyn J. Davidson. Rainey, Glen W. and Laurence Wolf. sory Development.” Training and “The High Cost of Stress to Women “The Organizationally Dysfunctional Development Journal, 35, No. 2 Managers.” OrganizationalDynamics, Consequences of Flexible Hours: A (February 1981), 14-22. 10, No. 4 (Spring 1982), 44-53. General Overview.” Public Personnel Puffer, Sheila M. “Inside a Soviet Davis, Stanley M. “Transforming Organi- Management, 11, NO.2 (Summer Management Institute.” California zations:The Key to Strategy.” Organi- 1982),165-175 Management Review, 24, No. 1 (Fall zational Dynamics, (Winter 1982), Rohr, John A. “The Problem of Profes- 1981), 90-96. 64-80. sional Ethnics.” The Bureaucrat, 11, Rehder, Robert R. “American Business DeLong, Thomas J. “Re-examining the No. 2 (Summer 1982), 47-50. Educatiowls It Too Late to Change?” Career Anchor Model.” Personnel, 50, Sailer, Heather R., John Schlacter, and Management Review, 23, No. 2 No. 3 (May-June 1982), 50-61. March R. Edwards. “Stress: Causes, (Winter), 63-71. Driver, Russell W. and Ronald A. Ratliff. Consequencesand Coping Strategies.” Rosenthal, Steven M. and Bob Mezoff. “Employers’ Perception of Benefits Personnel, 59, No. 4 (July-August “Improving the Cost/Benefits of Man- Accrued from Physical Fitness.” 1982), 35-48. agement.” Training and Development Personnel Administrator, 27, No. 8 Tomkiewicz, Joseph and O.C. Brener. Journal, 34, No. 12 (December 1980), (August 1982), 21-26. “Organizational Dilemma: Six Differ- 102-106. Fielden, John S. “What Do You Mean ences in Attitudes Towards Women Seiler, Clarence J. “Let’s Put ‘Manage- You Don‘t Like My Style?” Harvard Held by Future Managers.” Personnel ment’ Into Management Training.” Business Review, 60,No. 3 (May-June Administrator, 27, No. 7 (July 1982), Training and Development Journal. 1982), 128-138. 62-65. Topics in Evaluation

CarlE. Wisler

Mr. Wider is an associate directorin GAO’s

This issue’s topic is causality. GAO addresses many questions about cause and effect which are on a grander People once believed that lightning scale than the questions posed in daily was the work of the devil and that a living. The following are just a few exam- thunderstorm could be dispelled by ring- ples of questions GAO examines: ing the bells in a church steeple. Such a 0 What accounts for the high unernploy- desirable effect was supposedly caused rnent rate of teenagers? by the sound of the bells agitating the air Does the Department of Agriculture’s and breaking up the devil’s fiery exhala- farmer-owned grain reserve program tions. This causal theory held sway until increase grain inventories? Benjamin Franklin’s experiments with e Did passage of the Natural Gas Act of electricity led him to “invent” and demon- 1978 cause higher gas prices? strate the effectiveness of the lightning Regardless of scale, the principle is rod. But before Franklin’s insight, hun- the same: we need information about dreds of bellringers in rain-drenched the relationship between cause and effect steeples were electrocuted. to guide rational behavior. We’ll use one of these questions-the one about natu- Causality exhibits an odd duality. In ral gas prices-to explore the nature of our daily living, we constantly behave in causality, hoping to avoid the fate of medi- accord with our beliefs about cause and eval bellringers. effect, frequently without conscious delib- eration about our actions. And yet, if asked EstabPishhg Cams&@ how we know that one event is caused by another, we may be hard-pressedto What do we have to do to show cause explain our reasoning precisely. and effect? We must establish three

GAO Review/Whter 1983 11 Topics in Evaluation

conditions: covariation, time order, and show that there is no third factor, then not only that the kitchen light sometimes nonspuriousness. Suppose that we had we say that the relationshipbetween our goes on when I throw the wall switch, but measured natural gas prices at a num- first two factors is a nonspuriouscovaria- also sometimes it goes on when I start berof places around the country immedi- tion. the furnace. Or when I open the kitchen ately before and 6 months after the The concept of nonspuriousness is faucet, the porch light sometimes goes passage of the Natural Gas Policy Act probably easier to understand by exam- on. Each light fixture may have multiple, (NGPA). We want to see if this kind of ple than in the abstract. Suppose some- probabilisticcauses. And the situation is data will allow us to determine if the two one argued that both the passage of the even more complicated, for when the phenomena-presence or absence of NGPA and the higher gas prices were outdoor temperature drops below 50°,the NGPA and variation in gas prices-are caused by actions of a natural gas cartel dining room light may go on. In addition causally related. and that the NGPA really had no bearing to my own actions, uncontrollable events Covariation, which literally means that on prices. We can say that our observed are now influencing my lighting system two phenomena vary together, can take covariation is nonspurious only if that in a way that is predictable only in a several forms. Consider two factors, X argument and similar ones can be refuted. probabilistic sense. Again, the analogy and Y, which we can measure. When This final causal condition, which is usu- is clear: public outcomes, such as natu- large values of X tend to be accompa- ally the most difficult to establish, is ral gas prices, are usually influenced by nied by large values of Y, that is covaria- attacked through a combination of the multiple causes, some controllable and tion. So is the tendency for larger values evaluation design and data analysis some uncontrollable, and ordinarily we of X to be associatedwith smaller values methods. In our example, the before- understand the cause-and-effect relation- of Y and vice versa. and-after design does not allow us to ships only in a probabilistic sense. Covariation is also applicable when rule out spurious variables, so we can- we can’t measure the phenomena. For not claim that passage of NGPA caused example, if event A tends to occur when an increase in gas prices. event B occurs, and A tends not to occur What, aside from rewiring his house, when B does not occur, we describe the Some Complications does an evaluator do when faced with relationship as covariation. such a situation involving multiple, prob- If our investigationshows, in a statisti- Establishing causality is a tricky abilistic causes? The goal is to identify cally convincing way, that natural gas business. When the subject is a public the causes, estimate their importance, prices tend to be low in the absence of program or policy, two factors compli- and know the conditions under which NGPA (the before measurement) and in cate the task: the probabilistic relation- they jointly produce observed effects. the presence of NGPA (the after meas- ship between cause and effect and the The tools for understanding the cause- urement), the policy act and the prices existence of multiple causes. The way and-effect relationships are evaluation exhibit covariation. We would thus have these considerations affect how we rea- designs, measuring instruments, and data taken the first step in demonstrating a son about causality can be illustrated analysis methods. Of the three, the eval- causal relationship. with an example. uation design is probably the most impor- Cause precedes effect. Time order If I throw a light switch in my house, a tant in terms of affecting our confidence means simply that we have to pin down light goes on (assuming the switch, the in causality statements. (GAO’s Institute which phenomenon, or variable, precedes circuitry, and the bulb are in working for Program Evaluation will be publish- the other in time. Just knowing that there order). That is a simple causal relation- ing a Methodology Transfer Paper on is covariation between the policy act and ship. But if the light sometimes goes on evaluationdesign in the near future.) For gas prices says nothing about which fac- and sometimes doesn’t, the relationship example, a true experimental design, with tor came first. Whether we know the time between the switch and the bulb is a random assignment of treatment and com- order usually depends upon the evalua- probabilistic one. To be precise about parison subjects, is usually regarded as tion design. In the natural gas example, the relationship, we could perform a num- the best way to identify and assess the which is particularly simple, the evalua- ber of trials and keep track of how often strength of cause-and-effect relationships. tion design was set up so that the first the light goes on. Suppose the light goes However, because it can’t often be used measurements were made immediately on 70 percent of the time. We would then with public programs and policies, other before passage of the act; it is clear, say that the switch causes the bulb to designs are frequently employed. then, that any changes in gas prices must light with a .7probability. Or, for an experi- Each design, when coupled with an have come after the policy change and ment more like a program evaluation, I appropriate data analysis method, gives not before. In many but by no means in might throw each of the switches in my an evaluator the means to address the all evaluations, it is relatively easy to house and tabulate the number of times causality conditions: covariation, time establish time order. that a light goes on. From this information, order, and nonspuriousness. It is impor- Nonspuriousness is usually the most we could make a probabilistic, causal tant to realize that, in examining the evi- difficult causal condition about which to statement about the population of switches dence for the three conditions, we may be certain. Two factors may covary, not in my house and their effects on my lights. sometimes become quite confident about because one causes the other, but Analogously, an uncertain connection our causal statements, but we can never because some third factor is causing each between cause and effect almost always prove causality. of the first two factors to behave as they characterizes the relationship between What are the designs and data analy- dL .If covariation between two phenom- public programs or policies and their sis methods that help us find causes? ena has been established, we must still intended effects. The table, which shows a number of be able to rule out the possibility that Now, suppose my house lighting sys- approaches, is based on four broad design some third factor is at work. If we can tem is even more complicated. Suppose categories which are widely used in

12 GAO ReviewlFC’inter 1983 Topics in Evaluation

evaluations: true experiments, quasi- experiments, sample surveys, and case studies. The confidence we can have in Some Designs and Data Analysis Methods for Finding Causes causal statements depends greatly upon the designs from which the statements Evaluation Design Data Analysis Methods are derived. In a true experiment, the evaluator has True Experiment Analysis of Variance direct control over the presumed causal Analysis of Covariance variable, a great advantage in trying to Regression Analysis demonstrate causality. Frequently used Log-Linear Models in certain fields, such as medicine and Quasi-Experiment agriculture, the true experiment is often Nonequivalent Comparison not feasible for evaluating social pro- Group Analysis of Covariance grams and policies. The associated data Regression Analysis analysis methods include the analysis of LISREL variance, the analysis of covariance, and Log-Linear Models regression analysis. Time-Series ARlMA Quasi-experimentaldesigns come in MANOVA many forms and are widely used in Regression Analysis evaluation. Though the evaluator is not able to manipulate the putative cause, Sample Survey Elaboration Model these designs can lead to causal state- Path Analysis ments strong enough for policy decisions. LISREL Common data analysis methods include Log-Linear Models analysis of covariance, regression analysis, ARlMA (auto-regressive inte- Case Study Analytic Induction grated moving average), and log-linear models. When used to derive causal statements, the general aim of these pro- and the search goeson with a new causal worth, 1979. An introductory text with cedures is to make statistical adjustments statement. A hypothesizedcause which much discussion of causality, includ- to compensate for the absence of con- survives the search for negativecases is ing achapterontheelaboration model. trol over causal variables. a good prospect as a real cause. Bohrnstedt, G.W. and D. Knoke. Sta- Sample surveys have long been used It should not be assumed, from this tistics for Social Data Analysis, F.E. to acquire descriptive information about brief review of design and analysis Peacock, 1982. An introduction tosta- a population. More recently, data analy- methods, thatthechoice of a strategyfor tistical analysis with a stress on causal sis methods have been developed to examining causality is cut and dried. Most inference. probe survey information for causal evaluations have resource constraints Cook, T.D. and D.T. Campbell. Quasi- relationships. As a class, sample survey and multiple objectives, both of which Experimentation: Qesign and Anal- designs and the associated analysis meth- will force trade-offs among strategies. ysis Issues for Field Settings. Rand ods often lead to controversial causal Also, all strategies have their weaknesses, McNaliy, 1979. A lengthy discussion statements because it is hard to rule out and this leads to the subject of triangula- of causality plus detailed treatments spurious variables. The procedures for tion. of designs and analysis methods that analysis include the elaboration model mostly fall within the quasi-experimental (also called multivariate contingency Isk.bZURgUI&iom category. analysis), path analysis, and LISREL No single approach to a question of Denzin, N.K. The Research Act: A The- (linear structural relations). causality is infallible. Nature seems to oretical Introduction to Sociologicai The cluster of ideas which constitute delight in obscuring causal relationships, Methods, Second Edition. McGraw- case study designs overlaps with similar so the evaluator is advised to employ Hill, 1978. A clear exposition of the approaches, such as participant obser- diverse strategies for uncovering causes. more qualitative, case study approach vation and field research. Like sample Triangulation means applyingseveral dif- tocausality through the method of ana- surveys, these designs have tradition- ferent design, measurement, and analy- lytic induction. Also, a stress on ally providedvery good descriptive infor- sis approaches to each evaluation triangulation. mation and are sometimes used to make question. The strength of one strategy Hirschi, T. and H.C. Selvin. Delin- causal inferences. The analysis methods, may offset the weakness of another so quency Research: An Appraisal of which are less structured than the statis- that, used in concert, multiple evaluation Analytic [email protected] Press, 1967. tical analyses used with other designs, approaches lead to stronger causal Almost completely devoted to issues go by names like analytic induction and statements. of causal analysis, this book is agood, negative case analysis. A common nontechnical introduction to the subject. approach, oversimplified here, is to begin -ere To bokfor Examples come from delinquency with a hypothesized causal statement More About C~SMS&~ research, but the principles are applica- and to look for cases which contradict ble to any topic. the proposition. A negative case rules Babbie, EA. The Practice of Social out the hypothesized cause and effect, Research, Second Edition. Wads- SEe TOPICS p. 49

GAO Rdew/Wiuter 1983 13 WhyAlltheFussOwer

Olympici Cobs? 535349 leading to port the 1984 Summer Olympic Games the recent enactment of the Olympic Com- and U.S. amateur athletics; however, we memorative Coin Act illustrates how GAO thought the Congress should consider can significantly aid the legislative pro- several key issues in evaluating pro- cess without issuing a report. We identi- posals for such a program. fied several important issues which we believed the Congress should consider &m&e@& pederd and provided optibns for revising exist- ing legislative proposals to resolve these issues. The Congress consequently passed a law that will help finance the 1984 Los Angeles Summer Olympic Our concern centered on three issues Games and US. amateur athletics. This that would determine how much the Fed- Charles S. Cotton law will save the Federal Government eral Government would indirectlyfinance perhaps about $360 million in indirect the Games through a coinage program. Charles S Cotton IS a senior evaluator with financing. According to our analysisof the proposed the Energy and Minerals Division Since reloin- At first glance, the legislative proposal legislation and the LAOOC's agreement ing GAO in 1971 from military service. he has to mint coins to commemorate the 1984 with a private marketingconsortium, indi- worked in two regional offices and three Los Angeles Summer Olympic Games rect Federal financing under the Senate- divisions Mr Cotton has a B S degree cum appeared innocuous. The Federal Gov- passed program could have exceeded laude in accounting from the American ernment would merely mint coins, which $360 million. Since proceeds to the Olym- University His awards include the 1980 WiI- would then be sold by a private marketer, pic committees would be less than $1 75 '!am A. Jump Memorial Foundation Certifi- million, the remaining $185 million, in cate of Recognition for noteworthy service in with a portion of the net proceeds going public administration. to help finance the Games and US. ama- effect, would go to the private marketer teur athletics. for operating expenses and as profit. The coinage program also appeared Although the marketing agreement was in keepingwith the Los Angeles Olympic ultimately revised as to preclude such Organizing Committee's (LAOOC) inten- analysis, estimated proceeds to the Olym- tion that the 1984 Games be the first not pic committees could be less than the to receive direct or indirect Government total indirect Federal financing. financing.The LAOOC trusts Americans will respond to the honor of holding the PamblemhmMon Olympic Games with an outpouring of patriotism and pride, fueled by the U.S. We faced two problems:finding a recep- hockey team's triumph in the 1980 Olym- tive congressional ear and translating pic Winter Games and our boycott of the three esoteric issues into understanda- 1980 Summer Games in Moscow. ble language. The first proved relatively Another portion of the net proceeds easy; the second seemed virtually from the coin sales would help the U.S. impossible. OlympicCornmittee (USOC) finance ama- Congressional interest came from the teur athletics. The USOC shared the Chairman of the House Subcommittee LAOOC's enthusiasm, noting that, for on Consumer Affairs and Coinage, who the first time in 52 years, the Summer was waging a one-man crusade against Olympic Games will be held in the United private marketing of the coins. He was States and that America's interest will be so receptive to our findings that we were unparalleled. the sole witnesses at an April 6, 1982 Leonard W. Ellis The Congress shared these senti- hearing, which lasted over 3 hours. ments. On December 9,1981, the Sen- Our prepared statement addressedthe Mr Ellis is a GAO evaluator with the Energy ate unanimously passed a bill to mint extent to which the Federal Government and Minerals Division He joined GAO in 1969 legal tender U.S. coins, and a compan- would in the Civil Division and has served in several e bear the risk of declining gold and headquarters divisions before joining EMD in ion bill in the House was introduced with 1981 He has a BA degree in social sci- 95 cosponsors, includingthe entire Cali- silver market prices and other costs asso- ences from Muhlenberg College in Pennsyl- fornia delegation. ciated with redeemingthese coins at face vania. Into this arena of motherhood and apple value, pie ventured GAO. We believed a well- e incur uneconomical manufacturing designed coinage program could sup- costs, thereby foregoing revenues histori-

14 GAO Review/"intm 1983 WhyAll the Fuss Over Olympic Coins?

cally derived from minting coins, and ARTIST’S RENDITIONS OF OLYMPIC COIN DESIGNS forego future tax revenues if the coins Coin Designs Illustrated Larger Than Actual Size are marketed as tax-deductible contribu- Actual Coin Specificationsare Contained in Brochure tions. We soon learned that not all our 1984 Silver Dollar Coin remarks were transparent. Such com- ments as “substituting gold and silver for copper and nickel in the Olympic coins, thereby reducing seigniorage, constitutes foregone revenues in the form of uneco- nomical manufacturing costs” and “the Federal Government has always subsi- dized amateur athletics in the form of foregone tax revenues” needed transla- tion. Undaunted, we measured three leg- islative proposals against the abovethree issues. The Federal Government would have foregone seigniorage revenues of about $260 million under the Senate bill. (Seigniorage is the difference between a coin’s face value and the value of its metal content.) In addition, foregone Fed- OBVERSE REVERSE eral tax revenues could have exceeded $1 00 million. We concluded that the Federal Gov- ARTIST’S RENDITIONS OF OLYMPIC COIN DESIGNS ernment could retain seigniorage reve- Coin Designs Illustrated Larger Than Actual Size nues only by recovering the value of the Actual Coin Specificationsare Contained in Brochure coins’bullioncontent plus their face value in the selling price. This solution also 1984 Gold Ten Dollar Coin eliminatesthe Government’s risk should gold and silver market prices fall, since both the benefit of appreciation as well as the risk of depreciationin the value of the coins’ bullion content would be the owner’s. Similarly, any enabling legisla- tion could make it clear that the coins may not be marketed to imply that they are tax-deductible. We then analyzed another version of the Senate bill, introduced a week before the hearing by the Chairman of the House Committee on Banking, Finance and Urban Affairs, and a bill by the chairman of the committee’s coinage subcommittee, introduced just the day before the hearing. Although the committee chairman’s bill addressed some of these issues, the OBVERSE REVERSE Government would forego about $210 million in seigniorage revenues and also tee hearings, including one in which we would risk a drop in gold and silver mar- *en Sports Illustrated were calledfrom the audience to respond ket prices. Conversely, the subcommit- Put (ha &he Heat to a statement by the Treasurer of the tee chairman’s bill favorably resolved United States; and had numerous con- every issue we had raised. The following weeks embroiled us in tacts with various congressional off ices. Both chairmen’s offices had sought an emotional controversy over who should Meanwhile, pressure began to mount our assistance in drafting their bills. And market the coins: the US. Treasury or a for House action. The private consor- since both were at the hearing along private marketer. The 100-meter dash to tium which had agreed with the LAOOC with the original sponsor of the Senate- have our issues considered before legisla- to market the coins, guaranteeing the passed bill, the rhetoric proved lively and tion was enacted turned into a decathlon LAOOC and the USOC $30 million, was probing. Although we sometimes felt like requiring stamina and perseverance. Dur- threateningto withdraw, taking with it $4 a pinball bouncing off three congressional ing that period, we wrote three letters million of the $5 million already provided cushions, we trusted the House would responding to congressional requests consider the issues we raised in evaluat- concerning the issues raised in our ing various coinage program proposals. testimony; attended several subcommit- See COINS, p. 49

GAO RevlewtWinter 1983 15 Equal Pay-Fair Play gas45 Women earn 59 cents of every dollar At every session of Congress between earned by men, according to the Depart- 1945 and 1962,one or more equal pay ment of Labor, which last published these bills were introduced. They all failed. In data in 1979.’The phenomenon of the 1963, Representative Charles Goodell “earnings gap” between men and women first suggested a compromise on the net- has persisted-and has even widened tlesome matter of enforcement5 Equal somewhat-in the nearly 20 years of pay legislation would be proposed as an enforcing Federalequal pay and antidis- amendment to the Fair Labor Standards crimination laws. Recently the concept Act, where it would be administered by of “equal pay for work of comparable the Wage and Hour Division of the Depart- worth” has been talked about as a way ment of Labor.‘ The ability to achieve of narrowing, or even closing, the earn- equal pay without creating a new enforce- ings gap. ment bureaucracy was just the push To appreciate how the comparable needed for passage.’ worth argument might help accomplish this, we should first look at why the 1963 Earlier, considerable debate had taken Equal Pay Act’ and the Civil Rights Act place over whether the equal pay stan- of 1 9W3have not stopped wage and sex dard to be establishedshould be a plied to “equal” or “comparable” work. Rep- Margaret M Armen, an attorney-advisor in discrimination. This article will explore f GAO’s Office of General Counsel, joined the the shortcomings of these two laws with agency in 1978 after receiving her J D degree respect to fair pay for women workers, a from Cleveland State University Prior to law recent Supreme Court decision in the school, Ms Armen worked for 5 years in the Gunther case that has positive implica- personnel administration area She served tions for the future, and the comparable as vice-chair of GAOP Women’s Advisory ‘“The Earnings Gap Between Women and worth theory. They help explain the sex- Men,” 1979, U S Dept of Labor, Office of Committee in 1980-81 and received GAO’s based salary discrepancies in the United Equal Employment Opportunity Award in 1981 the Secretary, Women’s Bureau These sta- States and how we can fix these discrep- She is a member of the Ohio and District of tistics are no longer published by the Labor Columbia Bars. ancies in the future. Department Before the E:cg(ud pay ’29 U S.C. 9 206(d) (1976) Because GAO is primarily an audit Act agency, most of the articles we publish 342 U S C § 2000e, et seq. (1976). The act generally outlawed discrimination in all gov- in the GAO Review deal with evaluation The idea of equal pay for working and related topics. In this issue, we are ernmental and commercial activities Title women really began with World War II. VI1 of the act banned discrimination in the presenting an article with a slightly dif- Before then, few women worked outside terms, conditions, and privileges of employ- ferent orientation: law. We would like to the home, and the wages for those who ment based on race,color, religion, national encourage more articles of this type from did were traditionally so low that most origin, and sex This part of the law is referred GAO’s legal staff. men did not actively seek “women’s work.” to throughout this article as “title VI1 ” Employers who hired men and women 4H R Rep No 88-309,88th Cong , 1st Sess., to perform the same jobs commonly set Supplemental Viewsof Rep. Frelinghuysen, two pay scales, one for men and a lower et af one for the women. Then, during the war, women filledthefactoryanddefense 5109 Cong Rec 9197 (remarks of Rep jobs iei-l behind by men who had joined Goodell) the armed forces. As a matter of national policy in the era of “Rosie the Riveter,” it 6Enforcement remained with the Wage and was unthinkable that the women work- Hour Division until July 1, 1979, when it ing in the national defense effort should was transferred to the Equal Employment be shortchanged for their labor, so Con- Opportunity Commission. Reorganization gress created the War Labor Board. The Plan No 1 of 1978, 43 F. Reg 19807 Board inspected plants and made sure that women workers were given fair pay ‘There were drawbacks to this approach, however. Most notable was the limited cov- for work comparable to that of men. The erage of the Fair Labor Standards Act 109 board was much resented by employers Cong Rec 9193 (remarks of Rep Bolton) and labor organizations. It was disbanded and 9202 (remarks of Rep. Kelly) Since soon after the war, but the bad taste left 1963, the act’s coverage has been greatly in the public mouth inhibited the pas- expanded sage of equal pay legislation for nearly 20 years4 ‘See 108 Cong Rec 14767-71, passim

16 GAO ReviewNinter 1983 Equal Pay-Fair Play

resentative Katherine St. Georgeg ob- To illustrate the “equal work” principle to win e ual a for female selector jected to the demeaning implications of in practice, considerthefollowing. Three packers. 8 py the word “comparable” and offered an different factory workers each carry 20 The inevitable result of this fuzzy state amendment to make the standard “equal” pounds of supplies the same distance. of the law is that, until challenged, employ- work. More than half of those who One carries two 10-pound buckets, ers continue their existing wage practices, addressed the issue in Congress argued another carries a 10-pound bucket and a whether “equal” or not. When challenged, that “equal work” was too restrictive a 10-pound tool box, the third carries a the narrow standards and their uncer- standard and that its adoption would 20-pound tool box. An employer might tain interpretation encourage the defend- handicap the effort to achieve economic well take the position that the employees ing employer to litigate rather than equality for women workers. However, are not performing equal work, because conciliate. Why do employers spend the many congressmen still feared an intru- different skill and effort is involved in time and money defending an equal pay sive enforcement bureaucracy, so they carrying two 10-pound weights than one action? First, the chances of winning are quickly supported the proposal for “equal 20-pound weight. Assume also that the work” because it allowed virtually no jud employees have equal training and senior- ment to be exercised in enforcement, % ity and that each makes the same num- and it also permitted employers to con- ber of trips per day with the tools and ’“1 have thought right along I have guessed tinue to set such wage rates as they buckets. Now assume that the employee what the word ‘comparable’ [means] In found to be necessary and economical. canying the 20-pound tool box is a woman reality. by using that word, you are not giv- The more restrictiveversion was accept- and the other two are men. The woman ing full equality * ‘ * You are going back ed, and the Equal Pay Act of 1963 reads could legally be paid less if she is per- to the good old adage that women are so as follows: forming different-that is, not “equal”- weak and delicate that they need protec- work. tion ” 108 Cong Rec 14768 (remarks of No employer having employees sub- The above story is not far-fetched; the Rep St George). first major Equal Pay Act case involved ject to [the Fair Labor Standards Act] ”109 Cong Rec 9197-98 shall discriminate, within any establish- similararguments.12Wheaton Glass Co., ment in which such employees are the employer, argued that its male “29 U S C §206(d) (1976) The act allows employed, between employees on the “selector packers” working on the same unequal pay for equal work only if based basis of sex by paying wages to employ- product line and performing the same on a seniority, merit, or piecework system ees in such establishment at a rate less duties as female “selector packers” were or when the pay differential is not based on than the rate at which he pays wages to justifiably paid more for selector packer sex These are the exceptions to the Equal employees of the opposite sex in such work because the men were also avail- Pay Act discussed in the text at footnote 27 establishment for equal work on jobs able for unskilled, lower paid utility work below the performance of which requires equal in the packing room. All the men were skill, effort, and responsibility, and which paid approximately $15 a week more ’2W/rtz v Wheaton Glass Co , 284 F Supp 23 (D N J 1968), rev’d sub nom , Schultz are performed under similar working than any of the women whether they v Wheaton Glass Co , 421 F 2d 259 (3d conditions, except where such payment actually did any utility work or not. The Cir 1970), cert denled, 398 U S 905 (1970) is madepursuant to (i) a senioritysystem; company agreed that only a few men (ii)a merit system; (iii)a system which actually performed any utility work, and 13Prior to 1969, most States had protective measures earnings by quantity or qual- those that did spent less than 20 percent laws restricting duties and working hours ity of production; or (iv) a differential of their time at it, but the company argued of female employees Applying these based on any other factor other than that the flexibility of male selector ack restrictions, female selector packers were sex: Provided, That an employer who is ers made their jobs worth more.’ f This.- not legally permitted to perform some of paying a wage rate differential in viola- wage differential was legal, the company the utility work Protective laws remain on tion of this subsection shall not, in order contended, because the possibility of the boo& in many States, but they are no to comply with the provisions of this being assigned to do utility work in the longer enforced packing room made the men’s and subsection, reduce the wage rate of any 14The District Court found 16 separate employee.” women’s jobs unequal. functions in the utility jobs and identified Wheaton won its case at the District all of them as distinctions between men’s Court level on the theory that men and and women’s work in the position of selec- Whak’sWmngWithEqual tor packer Pay for Equal Work? women were not performing equal ~0rk.l~ On appeal, the 3d Circuit reversed. That 15Compare, for example, Brennan v C/ty opinion indicated that minor differences Stores, lnc , 479 F 2d 235, 238 (5th Cir The main drawback to the existing in work duties did not make very similar 1973) (more than Comparability but less Equal Pay legislation is just what was jobs unequal. The case was eventually than complete identity required to meet debated on the House floor: the “equal presented to the Supreme Court, which equal work test) with Wheaton Glass work” language creates too narrow a allowed the 3d Circuit’s decision to stand. “substantial equality” test standard. “Equal work” is aterm defined Since the Supreme Court did not enunci- in the law as jobs requiring equal skill, ate its own standard, no fully reliable ’‘The fact that the employer was able to effort, and responsibility, performed under guideline has ever been developed on postpone raising female employees’wages similar working conditions; therefore, what for 7 years represented a savings which which to determine whether similar work partially balanced the costs of litigation constitutes equal work has not been sub- is in fact “equal work.”15 The outcome Additionally. back-pay claims under the ject to the courts’orthe public’s common- for Wheaton Glass was that it took the Fair Labor Standards Act are more limited sense interpretation in a spirit of fair play. Department of Labor 7 years of litigation than under title VI1

GAO ReviewnVhter 1983 17 ,

Equal Pay-Fair Flay very g00d;l7 second, to cure an Equal prisoners were supervised by female "See text at footnote 11 and footnote 15, Pay Act violation, the employer must raise guards. Female guards were responsi- above. the wagesof the lower paid employees." ble for fewer prisoners and also performed Depending on the industry, the relative some clerical duties and, therefore, were lgTitle VI1 of the Civil Rights Act of 1964, 42 numbers of male and female workers, not performing equal workF4TheCounty's U.S C § 2000e et seq and the amount of the previous pay own job evaluation of male and female guard positions and its local wage sur- "The Senator noted the "many years of differential, quite a lot of money can be yearning by the members of the fair sex" at stake. vey showed that the female guards' ser- which precededthe enactment of the Equal vices were "worth" approximately 95 Pay Act and expressed his fear that the percent of the male guards' services. "wholesale insertion of the word 'sex' in Effect of Title VI1 of the The County, however, ignored its own [title VII]" might cause conflicts "The pur- study and set women's starting wages at pose of [the] amendment is to provide that Civil Rights Act of 1964 74 percent of the starting pay for men. It in the event of conflicts, the provisions of also adjusted the pay scale so that the the Equal Pay Act shall not be nullified " One year after passing the Equal Pay highest paid woman received 10 per- 110 Cong. Rec. 13647 Act, the Congress totally outlawed cent less than the lowest paid man. employment discrimination based on race, "The amendment is codified at 42 U S C 3 2000e-2(h) (1976) color, religion, national origin, and sex.lg The women argued that because the Today, employers can neither refuse to County's own survey indicated a higher hire an applicant on the basis of prohib- %ee, for example, Davis v Western Net- value for the female guards' positions, tric Co ,24 FEP Cases 65 (M D N C 1979), ited factors, nor can they set wage rates some of the pay differential must have Laffey v Northwest Airlines, 567 F 2d 469 based on them. With respect to women's been attributable to intentional sex (D C Cir 1976). cert demed, 434 U S wages, however, the Congress allowed dis~rimination.~~The District Court, 1086 (1978) a loophole in title Vll's broad protection. however, refused to accept any evidence An amendment, named for its author, of sex discrimination once the County 23452 U S 161 (1981) Gunfher was a 5-4 Senator Bennett, stated that the Equal demonstrated that the men and women decision, and Justice Brennan wrote Pay Act would continue despite the all- were not performing equal work. The the majority opinion encompassing languageoftitleV11.20The District Court held that the Bennett amend- Bennett amendment reads as follows: ment precluded any sex-based wage dis- 240regon law required that female prison- ers be under the supervision of female crimination claim under title VII, unless guards, so the employment of females It shall not be an unlawful employment the claim also showed a violation of the and the character of their duties were, to practice under [title Vll] for any Equal Pay Act.26 an extent ,predetermined 452 U S 161, employer to differentiate upon the basis The Supreme Court examined the leg- 164 at note 2 of sex in wages of compensation islative history of the Bennett amend- paid or to be paid to employees of such ment and concluded that it did not 25Plaintiffs' claim that sex discrimination employer if such differentiation is incorporatethe entire Equal Pay Act into played some role in the County's wage- authorized by the provisions of [the title VII. Its function, the Court said, was setting decisions was accorded some pre- Equal Pay Act]."' only to resolve conflicts between these sumptive validity when the County termi- two pieces of legislation by continuin nated all the female guards after they filed For many years this amendment was the four exceptions in the Equal Pay Act.29 their court action The charges of retaha- thought to incorporate the entire Equal The logical conclusion to draw from this tion were also under court examination in a Pay Act into title V11,22 meaning that wage separate case 623 F 2d 1303 (9th Cir is that general title VI1 principles will now 1979) differentials between men and women apply to employers' wage-setting rac- were legal as long as thetwo sexes were tices and to wage administratiom2f The 2620 FEP Cases 789 (D Ore 1976) not performing "equal work." Given the opinion did not expand on how title VI1 vicissitudes of the "equal work" stan- might be applied in sex-based wage dis- 271n so doing, it relied on the comments of dard discussed above, such an interpre- crimination cases, but it did set the stage Senator Bennett, quoted in note 20, above, tation severely hampered progress toward for future discussions of factors to be and on the Senator's representation (with economic equality for women, despite weighed in determining wages. the concurrence of Senators Humphrey and all the other gains achieved under title Dirksen) that his was only a "technical VII. In 1981, the Supreme Court arrived amendment " at a different interpretation of the Ben- nett amendment, which may open the "After Gunther, a plaintiff may allege sex door to implementingcomparable worth l7For example, the cases on whether nurse's discrimination in wages without alleging or other theories aimed at equalizing aides and hospital orderlies perform equal or proving that the Equal Pay Act was also work split about 50-50 Compare Hodgson violated The logic of this position was also earnings. v Golden Isles Nursing Homes, lnc 468 seen in l U € v Wesfinghouse, where the F 2d 1256, 1258, (5th Cir 1972) (no sub- court noted that continued exclusive Gunthercl'heFacts,~e stantial identity of ]ob functions) and enforcement of the Equal Pay Act would Caw, md The Future Hodgson v Brookhaven General Hospital, tolerate an employer's unfavorable treat- 1470 F 2d 729 (5th Cir 1972) (substantially ment of women in a way that would be equal effort expended by aides and order- illegal discrimination if the same practices In Countyof Washington v. G~nther,*~ lies on different tasks was "equal work") were applied to other protected groups male prison guards at the county jail were These cases were decided by the same 631 F 2d 1094, 1100 (3d Cir 1980), cert assigned to male prisonerswhile female court in the same year on similar facts denied, 452 U S 967 (1981)

1s GAO ReviewIWinter 1983 EQual Pay-Fair Play

Perhaps the cardinal rule of Federal The judge in the case was called on to systems. This alone has often meant the antidiscriminationlaw is that employees determine whether operating the indus- perpetuationof lower status and pay for may not be treateddifferentlyonthe basis trial sewing machines merited the same women, but pay-setting decisions are of race, color, religion, national origin, pay as 20 or more different men’s jobs often based on a job evaluation plus a and~ex.~’TitleVI1 not only outlaws inten- on the bindery floor. The judge analyzed survey of prevailing community wage rates tional discrimination, but also it prohibits the gross motor skills needed to operate for similar jobs. Market rates reflect the unintentionaldiscrimination that may result all the assorted machines.34 He also endemic sex-based wage discrimination from applying an apparently neutral rule looked at the need to lift and manipulate that began before Rosie the Riveter’s time with an adverse impact on a protected heavy volumes in the stitching and bind- and continueddespite the Equal Pay Act group.30Applyingthis principle to Gunther, ing processes. He compared the levels and the Civil Rights Act. When market if men’s wages were based on the Wash- of concentration and precision involved rates are used to determine wages in ington County study, women‘s wages in performing thevarious jobs. He evalu- jobs held predominantly by women, the should have been based on it as well. ated the training time needed to operate result is the continuation of historic under- Another possibility is that an employer the several machines competently. After valuation of women’s work. might be barred from using labor market comparing all the different elements of rates as a basis for setting wages if the the men’s bindery jobs and the women’s rMarketRatesand reference to market rates perpetuated industrial sewing jobs, the judge deter- Women’s Work artificially low wages for women. The mined that operating the industrial sew- latter is one of the principal tenets of the ing machines warranted the same pay One example of the negative effect of comparable worth theory. as the jobs on the bindery floor.35 Read- labor market rates on women is found in ing the opinion, one gets the impression Christensen v. lo~a.~~This was the first Cornpa that nearly every job that has been histori- cally sex-segregatedcould be success- Simply stated, a theory of comparable fully compared and evaluated by breaking 2gSee,for example, McDonnellDouglas Corp. worth argues that job functions and their it down into its component elements and v Green, 41 1 U S. 792 (1973). value to the employer ought to deter- fitting the job into the overall employ- mine compensation without any consid- ment scheme of a particular employer. 30See, for example, Gnggs v Duke Power Co, 401 U S 424,431 (1971) eration of the gender of the job seeker or The second point buttressing compa- job holder.31Proponents of comparable rable worth arguments is the historic undervaluation of women’s labor. On this 31 If an occupation has been historically sex- worth base their support of the theory on segregated, either because of past dis- two facts: (1) that, contrary to the assump- point, the late anthropologist, Margaret crimination or because women have tion underlying the Equal Pay Act, it is Mead, observed that disproportionatelyaffiliated to it, an assess- possible to evaluate fairly the knowledge, ment of comparable worth would require skill, and effort required to perform vari- [o]ne aspect of the social valuation of an employer to upgrade the wages of the ous jobs and to compare diverse jobs on different types of labor is the differential female occupation by comparing it to unre- the basis of these factors; and (2) that prestigeof men’s activities and women’s latedjobs requiring similar levelsof training, society has historically undervalued activities. Whatever men do-even if it skill, and effort, and producing equallyvalu- is dressing dolls for rdigiousceremonim- able results, but which were occupied mostly women’s labor, and this fact continues by men to have a depressing effect on women’s is more prestigious than what women do and is treated as a higher achieve- earnings. 32499F Supp. 1147 (D D.C 1979) A rare and interesting equal pay case offers some insight into how the job eval- This phenomenon crosses cultural 33Men earned $11 16 per hour, while 36 uation process might work. In Thomp- lines, as may be seen in the Soviet Union, womenoperating industrialtype machines son v. 50yle,~~women employees in the where more than 75 percent of doctors earned $7.59 per hour, and 5 group lead- bindery at the Government PrintingOffice are women. There, the medical profes- ers earned $8 01 per hour. filed an equal pay action contesting a $3 sion is held in low esteem, and wages to $4 per hour pay differential. The court are so low that the government has had 34E~ten~~~etestimony of job evaluation experts provided information on the com- found that GPO set its job standards for difficulty in etting men to enroll in medi- ponent operations of working on each of bindery work unrealistically high and that cal school.’ This is in sharp contrast to the machines examined by the court. it did not make training on binderyequip- the United States, where medicine, until ment available for women GPO employ- recently an almost exclusively male 35Several hundred lower graded female ees. These facts coupled with historic preserve, is one of the most prestigious employees who operated the lessdemand- discriminationagainst women in the print- and well-paid professions. Historical ing sewing machines did not receive mon- ing industry generally, kept women examples of underpaidwomen’s work in etary relief from the court employees from operating any of the our culture might be the frontier school- heavy equipment on the bindery floor, marm or the seamstresses in turn-of-the- 36Mead, Margaret, “Prehistory and the even though women did operate heavy- century sweatshops. Contemporary Women,’’ Barnard College Bullebn, April duty sewing machines in the gallery examples might be nurqes, retail clerks, 30, 1969 Supp , p 7. above. One particular type of sewing or typists. 37Dodge,Norton, “Women in theProfessions,” machine operated by someof the women Job evaluation, discussed above, has Women in Russia, Dorothy Atkinson, et a/. was of industrial capacity, but the bindery traditionally been used when an employer eds., Stanford University Press, 1977. jobs held by men paid more than the sought to rationalize existing employment women’s industrial sewing patterns and related compensation %63 F.2d 353 (8th Cir 1977).

GAO Reviewlwinter 1983 Equal Pay-Fair Play case to present a legal argument for com- objectively determines to be of equal value discrimination and achieving economic parable worth. The plaintiff was a female is a neutral practice on its face, it equality for working women, the ultimate employed as a clerk by the University of disproportionately burdens women. goal of comparable worth. Further judi- Northern Iowa. The University had divided Therefore, it violates title VI1 unless justi- cial application of the Gunther case will its employees into several different wage fied by business ne~essity.~’In hi-cl con- surely come in the next year or so, and it categories on the basis of job responsi- curring opinion in Christensen, Judge is likely to take this form. bility, training, and the value of the ser- Miller indicated a willingness to apply Whether any court might also venture vice to the university. To accomplish this, such a title VI1 disparate impact analy- a decision that affirmatively requires (or the university used a system of points sis but for the necessity, in his view, of de facto necessitates) employerjob eval- and factors known as the “Hayes Sys.em.” applying the Bennett amendme; and uations is more speculative. Instituting Based on this system, physical plant work- the equal work ~tandard.~‘ such a requirement seems more prop- ers were placed in the same labor Another early case clearly demon- erly the role of Congress or perhaps of gradehalaw range as clerical workers. strates the harsh economic consequences the Equal Employment Opportunity The plant workers (mail carriers and park- of using past wage trends to determine Commission.44An appropriate first step ing enforcement officers, among others) present and future pay. The plaintiff,Mary would probably be for the Commission were predominantly men. The clerical Lemons, was a nurse in a Denver County to issue guidelines on job evaluation workers (secretaries and keypunch hospital. Denver set its salaries for nurses factors, but this does not seem likely to operators, among others) were all women. by comparing wages at county hospitals happen any time soon. Meanwhile, if Local labor market statistics showed that to nursing salaries at private hospitals. employers are using job evaluation the prevailing wages in the community Salaries for other city jobs were deter- systems, they should be wary of disre- for jobs similar to the university plant mined by comparing local labor market garding or ignoring the results of their workers were higher than the prevailing rates for a wide variety of positions. The own studies, as Gunther amply demon- wages for traditionally female jobs like result was that Denver paid starting tree strates. secretaries and data-entry technicians. trimmers and outdoor painters more than Some employers resisted complying The university adjusted the starting sala- some experienced graduate nurses.42 with the equal pay initiatives of the early ries of plant workers to the middle of the Comparable worth advocates argue that, 1960’s. Also, there is no reason to assume established wage range but continued given the different levels of training, skill, an instantaneous,universal acceptance to pay beginning clerical workers at the and responsibilities involved in nursing of a comparable worth theory, even if it bottom of the range. The plaintiff alleged and tree trimming, a system that could has congressional and/or judicial bless- a violation of title VI1 on the grounds tolerate such wage discrepancies, let ings. A recent estimate of the cost to that, (a) by superimposing labor market alone endorse them as nondiscriminatory, employers of instituting comparable worth rates on its established job evaluation must be fatally flawed. runs to $1 1 billion a year. Perhaps $1 1 system, the university carried forward a The flaw is, of course, that existing billion is more than anyone is willing to traditional economic bias in favor of men, wages in female-dominated occupations spend to satisfy the sense of unfairness and (b) the requisite skills for the various are depressed because of traditional that the Lemons case evokes. That ques- jobs did not warrant such a differential biases and the lingering effects of past tion remains for others to decide. If, because the university had stated that discrimination. The Lemons court real- ’ however, $1 1 billion in additional wages the jobs were “worth” the same. ized this and assessed the situation this is ultimately disbursed to working women way: and their families in weekly pay checks, that fact would have a significant effect Because this case was decided sev- [tlhe relationship of pay for nurses to on the role of women in society and on eral years before the Supreme Court’s pay for other positions is obviously a women’s place in the work force. opinion in Gunther, which permitted title product of past attitudes, practices, and VI1 rules to cover sex-based wage dis- perhaps of supply and demand.43 crimination claims, it is surprising that 39/d.at 356 the Circuit Court cast its opinion in a title The Lemons court did not see this as a 4This analysis would correspond to the law VI1 analysis. The prevailingjudicial view legally objectionablesituation, however. in Gnggs v. Duke Power Co ,401 U S. 424 of the Bennett amepdment at the time What it seemed to say was that this state of affairs was lamentable but not subject (1971) This kind of analysis is referred to would have concluded simply that plant as “disparate impact ” It was discussed and clerical workers were not perform- to judicial scrutiny. The Supreme Court’s earlier in the text at footnotes 29-30 ing equal work. Judge Bright wrote: Gunther decision has allowed some judi- 4’563 F.2d 353, 357 (8th Cir. 1977) cial intervention, however, and the next incarnation of the Lemons case may have 42Lem~n~v City and County of Denver, 620 The value of the job to the employer F 2d 228 (10th Cir. 1980) represents but one factor affecting sweeter results. wages. * * We find nothing * * in Title 43/d.at 229. Both Lemons and Christensen mentioned “supply and demand” as mar- VI1 suggesting that Congress intended Conclusions surd ket issues bearing on salaries. The case of to abrogate the laws of supply and Possibilities nurses, a critical skilled occupation in demand or other economic principles chronic undersupply, belies the argument that determine wage rates for various The Supreme Court has stated that that the unrestricted operation of “free kinds of title VI1 principles may form the basis for market” factors necessarily results in ris- a claim of sex discrimination in compen- ing wages. There is a contrary but equally sup- sation. If the practice of using labor mar- 44The Commission scheduled hearings on portable analysis of title VI1 on these ket rates to set wages was to be prohib- the comparable worth issue in January facts. Although using community wage ited under title VII, this would go a long 1980 and issued a report in September rates to set wages for jobs the employer way toward easing the effect of past wage 1981 but has taken no further action

28 GAO ReviewlR‘inter 1983 The Cost Accounting Standards Board able to the Government. Further, prior to enjoys a unique status among U.S. Gov- the Cost Accounting Standards, contract ernment agencies. It's one that actually costing procedures did not allow compari- went out of business. Very few other sons between differing bidders or even agencies can make that claim. different contracts with the same con- This signal event occurred on Septem- tractor. To improve the Government's ber 30, 1980. The Board's demise was evaluation of a contractor's accounting quite unexpected and left the defense practices, uniform cost accounting prac- procurement community in a quandary. tices were needed. An evaluation of a Although the Board no longer exists, its contractor's accounting practices with- Clark 6. Adams promulgationsstill have the full force and out the guidance of uniform cost stan- Clark G Adams is a group director with the effect of law and must be observed in dards placed an extreme burden on Procurement. Logistics and Readiness both existing and future negotiated procurement officials. Division Prior to joining GAO, he served 10 national defense contracts. Without the years on the staff of the Cost Accounting board, there is no authority to interpret Standards Board Earlier. Mr Adams worked with the Rockwell International Corporation the standards, to provide waivers and where he directed the contracts and pricing exemptions, and to implement the board's activities for the corporation's Los Angeles promulgations. Therefore, much atten- division Mr Adams received his B S in Law tion has been focused on what the future and J D. degrees from the University of Utah may hold for the Cost Accounting Stand- Public Law 91 - 379 authorized estab- Mr Adams is a visiting lecturer at the Defense ards Board, its promulgations,and those lishing the board in August 1970 as a Systems Management College at Fort Belvoir, contractors subject to its rules and legislative agency. Former Comptroller Va and the Army Logistics Management Cen- regulations. ter at Ft Lee. Va He lectures frequently at General, Staats, as Board chairman, seminars and symposia for the National Con- To understand the future of Cost appointed four members to serve with tract Management Association, the Federal Accounting Standards (CAS), one must him. The members were prominent fig- Bar Association. the American Bar Association, understand some things about the past. ures from government, public accounting, and the Association of Government Auditors In 1970, GAO reported that the cost academia, and the defense industry. accountingpractices followed by defense From 1970to 1980, the Board promul- contractors provided profits to contrac- gated 19 standards covering virtually all tors in the guise of costs and promoted aspects of contract costing, shown in the contract terms that were less than favor- table.

Cost Accounting Standards 40 1 Consistency in Estimating, Accumulating and Reporting Costs 402 Consistency in Allocating Costs Incurred for the Same Purpose 403 Allocation of Home Office Expenses to Segments 404 Capitalization of Tangible Assets 405 Accounting for Unallowable Costs 406 Cost Accounting Period 407 Use of Standard Costs for Direct Material and Direct Labor 408 Accounting for Costs of Compensated Personal Absence 409 Depreciation of Tangible Capital Assets 41 0 Allocation of Business Unit General and Administrative Expenses to Final Cost Objectives 41 1 Accounting for Acquisition Costs of Material Ralph C. Dawn 41 2 Composition and Measurement of Pension Cost Ralph C Dawn is an evaluator with the 41 3 Adjustment and Allocation of Pension Cost Procurement, Logistics and Readiness 41 4 Cost of Money as an Element of the Cost of Facilities Capital Division He received his B S degree in politi- 41 5 Accounting for the Cost of Deferred Compensation cal science from the University of Maryland 41 6 Accounting for Insurance Costs and his M PA degree from the American 41 7 Cost of Money as an Element of the Cost of Capital Assets Under Construction University Mr Dawn is a member of the Ameri- can Society for Public Administration and has 41 8 Allocation of Direct and Indirect Costs received Certificates of Appreciation and Merit 41 9 (Withdrawn) from GAO divisions 420 Accounting for Independent Research and Development Costs and Bid and Proposal Costs

GAO Reviewmjnter 1983 21 The Future of Cost Accounting Standards

Cost Allocatio.11 ad Amend or Repeal CAS 409 Waiver Am&hority Measurement Recently, representatives of the Another recent development, which defense industry and the Department of illustrates the need for a CAS mainte- The Board’s promulgations improved Defense (DOD) have recommended nance function, is NASA’s granting a the allocation and measurement of con- repealing or amending the depreciation waiver to the standards. The Board rec- tract costs because the standards standard, CAS 409. The DOD Procure- ognized that urgent situations might call “minimized the risks which accompany ment Initiative recommends that, to for an immediate waiver from all or a reliance on cost as a basis for pricing, encourage capital asset investment and portion of the requirements of the Cost instead of market forces to establish con- to increase productivity in the defense Accounting Standards. The Board de- tract prices.”‘ By narrowing the avail- industry,CAS 409 should be repealed or signed the regulations so as to retain able cost accounting options and by amended to permit more rapid capital sole authority to grant waivers. Although providing for disclosure of cost account- equipment depreciation for contract cost- NASA processed a waiver to CAS, the ing practices,the Board’s promulgations ing purposes, and further, to recognize method of addressingthis legal question increased the certainty as to how vari- replacement depreciation accounting. has been ongoing since 1980. A mecha- ous costs will be treated during the life of nism is needed to grant essential waiv- a contract. Further, uniformity and con- Prior to promulgating this standard, ers more promptly. sistency in cost accounting practices research by the Board into fixed asset improved the Government’s ability to accounting practices found a range of cow Bnterest peate e evaluate proposals from competing depreciation methods available for con- suppliers, tract costing, without adequate criteria Another issue that warrants the atten- e obtain fair agreement on contract for the choices made. Also the Board’s tion of aCAS-type maintenance function prices, and research indicatedthat defense contrac- is the regulation penalizing a contractor e review contractor cost reports. tors relied upon the Department of Trea- for failure to comply with an applicable sury and Internal Revenue Service standard. If such failure results in Phal Report to guidelines for determining estimated peri- increased costs paid by the United States, Congress ods of useful service lives. The Board the law requires the Government to found that these guidelines were based recover these increased costs plus inter- Although the Board’s final annual report upon depreciation lives shorter than the est of seven percent per annum. This to Congress stated that it had substan- actual asset utilization periods for many unrealistically low interest rate may not tially completed its assigned task of individual contractors. The Board con- discourage noncompliance with the promulgating cost accounting standards, cluded that the asset lives and deprecia- standards. the report included some observations tion methods selected by contractors for continuing some of the work which under existing regulations resulted in Effect of ACRS Upon CAS was done by the Board. For example, unduly accelerated allocation of deprecia- 409 the final annual report stated that there tion costs. is a continuing need to To officially change or to interpret the e evaluate the effectiveness of the effect of the newly enacted Accelerated The standard was promulgatedto Cost Recovery System (ACRS) upon CAS standards, rules, and regulations, 0 provide criteria with respect to depre- 409 are more reasons to establish an e provide prompt consideration under ciation expense being identified with nego- organization like the CAS Board. This which procurement agencies request tiated defense contracts, standard requires that, for contract costing, waivers from the standards, e assign cost of tangible capital assets the contractor’s depreciation method e issue interpretationsof the standards, to cost accounting periods, and and should be acceptable for Federal income e allocate such costs to final cost objec- reflectthe e recognizesituations which suggest pos- tives in an objective and consistent t% purposes and expected consumption of services. Since sible amendments or new standards. manner. ACRS does not reflect expected con- Need for Continuation sumption of services but is, for tax To repeal or amend CAS 409 without purposes, the only recovery method of the Board considering all related factors, such as acceptablefor assets put in service after CAS 414, CAS 417, and DOD’s Profit 1980, there is an inconsistencywith this Recent developments necessitate cre- Policy, could dramatically increase the standard that should be formally address- ating a new CAS-type organization: size of DOD’s budget. This Procurement ed by a CAS Board or similar group. e DOD’s Procurement Initiative to amend Initiative fails to address the effect of Even if GAO or some other agency or repeal CAS 409, “Depreciation of Tan- destroying uniformity in the cost account- suggested modifications to the standards, gible Capital Assets,” ing practices followed by Defense rules, and regulations, a Board no longer e NASA’s processing of a waiver to the contractors. Further,this initiative fails to exists to address these inconsistencies. Board’s promulgations, require that if defense contractors are to e unrealistically low interest rates charged receive increased benefitsfrom their cur- to contractors for noncompliance with rent investment in plant and equipment, CAS, and then the additional cash flow should at ’Cumulative Progress Report TO The Con. e effect of the Accelerated Cost Recov- least be earmarked for future capital asset gress 1971-1980, November 1980 DASB, p ery System upon CAS 409. acquisitions. a

22 GAO Review/Whtm 1983 The Future of Cost Accounting Standards

&tame of CAS The continuing maintenance responsl- Urban Affairs Committee deleted all ref- bility for the standards could be transfer- erences to the CAS Board during a com- The immediate and long-termfuture red to the executive branch, which has mittee markup session. On October 1, of the Cost Accounting Standards, rules. been the most widely accepted alternative. 1982, both Houses agreed to Simply and regulations is uncirtain. Several alter: However, the Board’s functions have not extend the DPA for 6 months without natives exist: yet been transferred because the con- any provisions for a CAS Board. cerned parties have been unable to agree e incorporate the CAS Board function The final alternative is to maintain the in GAO, on several issues: limitations on staff size, status quo. Preliminary GAO studies have 0 appropriate funds to the original author- shown that the standards are widely imple- izing legislation, e location within the executive branch, 0 exemption from the CAS rules and mented into the Government procure- 8 transfer certain CAS Board functions ment process and, in general, defense to the executive branch, and regulationsfor contracts awarded under “adequate price competition,” and contractorsare in compliance with them. 0 maintain the status quo. e prohibition against issuing interpreta- A few problems have been observed in In November 1977, then the Comptrol- the implementing of the Board’s rules ler General Staats, as Chairman of the tions or new standards. In May 1982, the Senate Committee and regulations, and a continuing CAS Cost Accounting Standards Board, rec- function is required to assist in solving ommended legislation to transfer the func- on Banking, Housing, and Urban Affairs recommended transferring several of the these problems. We will watch with inter- tions and standards to the General est the Congress’ direction in address- Accounting Office. This proposal assures Board’s functions to the Director, Office of Management and Budget. This com- ing the future of the Cost Accounting the type of independence essential for Standards Board. the continued effectiveness of the mittee introduced the “Defense Produc- standards. Mr. Staats stated that: tion Act (DPA) Amendments of 1982; which provided that all standards, rules, Wherever the CAS maintenance func- tion is reestablished, it must use the Placing the Board’s responsibilities in regulations, waivers, exemptions, and certain other actions of the Board would defunct board’s operating procedures. A an executive branch agency raises a number of authoritative bodies exist to serious question as to whether such an remain in effectat the time of the transfer. This statute prohibited the issuance of issue pronouncements affecting account- agency couldbe sufficiently independent. ing and financial reporting, but the Board’s By contrast, the GAOis bylawindepen- new standards, although it did authorize the amendment of the standards, rules, process of developing standards provided dent and has the benefit of having viewed an unprecedented approach that was the procurementprocess from that van- and regulations. If enacted, this legislation would have characterized by an in-depth study of tage point. Its historicalindependentrole the subject, by participation of numer- with respect to the procurement func- terminated on September 30, 1984, “by which time it was intended that the cost ous interested parties, and by an inde- tion seems ideally suited to enabling it pendent agency ideally suited to ensure to assume the future responsibilities for accounting standards, rules, and regula- tions would become incorporated into a uniformity and consistency in cost cost accounting standards matters. accounting matters. Under the Accounting and Auditing act single government-wideprocurement reg- of 1950, the Comptroller General was ulation so that they would be integrated directed toprescribe the principlesstan- fully into the existing system for promul- dards and related requirements for gation, amendment, and rescission of accounting to be observedby each exec- procurement regulation^."^ utive agency . . . The expertise devel- To eliminate the CAS at some future oped in this area will be of great value in time was not the legislative intent. carrying on the work ofthe Cost Account- However, if the standards were down- ing Standards Board2 graded to regulations, they would run a greater risk of being crippled by amend- This proposal would have required ments or being rescinded outright with- cooperation from representatives of the out the benefit of the previous Board’s accounting profession, industry, the aca- open participative process for develop- demic community, and Government. The ing the standards. defense industry had strongly opposed this alternative and contributed greatly At one point, the House Subcommit- to its defeat. tee on Economic Stabilization, Commit- A second alternative is for the Con- tee on Banking, Finance, and Urban gress to fund the Board’s original authoriz- Affairs recommended transferring sev- ing legislation. In 1980, the committee eral of the Board’sfunctions to the Admini- on Banking, Housing, and Urban Affairs strator, Office of Federal Procurement wanted to place the continuing activity Policy. This subcommittee proposal to with an appropriate agency because it amend the DPA contained substantiallv believed this would be less costly. With stronger provisions regarding the issue 2Statement of Elmer Staats, chairman, Cost continued congressional emphasis on Of the CAS Board than did the Accounting Standards Board beforethecorn- budget austerity and strong industry Senate version. For example, it provided mittee on Banking, Housing, and Urban Affairs, opposition,this alternativedoesn’t seem for the promulgation of new standards, u.s Senate viable. but the House Banking, Finance, and ’Senate Report No 97-412, p 4

GAO Review/Whtm 1983 The keyboard. To the pianist, it’s an Change instructs the machine to print instrument to create melodic rhythms; out a typed hard copy of his draft chapter, to the secretary, it’s an instrument to which he will edit when he returns in create printed messages; and to the about 10 minutes. Since the draft is now auditor, it’s usually either an anathema on disc memory, he merely needs to or a management tool. make some editorialand perhaps organi- zational changes before printing a final, The time: 1984. The characters: Two copy that same afternoon. Because dead- GAO auditors-auditor “Know Change” lines on his job are tight, he will also and his twin brother, auditor “No Change.’’ immediately transmit the entire chapter Auditor Know Change is a progres- to the operating group in Washington, sive leader who taught himself how to D.C. via the EWS‘s communications typeand enthusiasticallywelcomeschange device. and office automation as a means of increasing his productivity. On his way to the meeting, Know . ”_ Auditor No Change is a conservative Change stops by the desk of his twin individual who resists change and likes brother, auditor No Change, who for 2 Tom Pastore days has been diligently but laboriously to perform tasks the way he was initially taught and with which he is most comfort- writing out the first chapter of a report. Mr Pastore has been an evaluator with the Change has almost completed his able. No Denver regional Office for approximately 4 25-page handwritten draft, which he will years Before joining GAO, he was an associ- Soerne F1~l&mristicthen submit to the typing pool. He hopes ate director of the National Center for State I: A it will be typed by the next day so that he Courts, the budget director of the $100 rnil- GAO Re@smd lion Regional Transportation District in Denver, can begin editing it. Because he per- and a project manager with the Mayor’s Office formed all his data analysis manually in New York City Mr Pastore has a B A At 8 a.m. this Monday morning, audi- instead of using an EWS, No Change is degree, magna cum laude, in psychology tors Know change and No Change arrive already behind the work milestone sched- from Trinity College (Hartford, Conn ) and an at the regional office and, after getting ule jointly developedwith his supervisor. M B A degree, with distinction, in rnanage- their usual cups of coffee, go to different Even though use of the EWS was called ment and finance from New York University work areas. No Change sits down behind for in the assignment plan, No Change Like the character in this article. Mr Pastore his assigned desk; Know Change sits didn’t want to use the newfangled, unfa- has a twin brother (who does not, how‘ever. down at an electronic work station (EWS). miliar machine; just the though of it made work for GAO) (An EWS is an advanced word and data his stomach churn and his palms sweat. processing machine which includesequip- While listening to No Change complain ment such as a standard typewriter about how rushed he is, Know Change keyboard, a display screen, a control reflects on how the differences between unit, a memory unit plus disc drives, a the two of them occurred. Both had started printer, etc.) with GAO on the same day about 8 years Know Change begins typing the sec- ago, after having been recruited from ond chapter of his report to the Congress. the same college campus. Both had excel- Having outlined his chapter the week lent student records, were conscientious before, he drafts quickly; after only 2 workers, and now were considered good hours of typing, he completes afirst draft auditors. But Know Change had under- consisting of 1Otypewrittendouble-spaced taken a change in operating style a few pages. He had previously used the EWS’s years ago, when the office received some mathematical capability to analyze some electronic work stations. That seemingly of his aata and had designed a variety of minor change in style had now become forms, charts, and graphs with the a major reason for Know Change’s dra- machine. Since much of his audit mate- matic increase in productivity. rial (such as interview write-ups, sum- Know Change had always enthusiasti- maries, charts, graphs, and schedules) cally accepted change, including auto- is already in the machine’s memory, he mated office techniques and methods. merely has to “call up” certain files and He had made a deliberate decision to insert previously prepared information become proficient in all the capabilities directly into his chapter. He had also of the new electronic work stations. He used the machine’s “sort” capability to had been encouraged by the Informa- categorize workpapers by major topics. tion Policy committee’s 1980 statement Before getting up from his chair for a that it was GAO’s policy to actively pro- brief meetingwith his supervisors,Know mote the efficient and effective use of

24 GAO Reviewrninter 1983 What Type”Auditor Are You?

information technology ot increase the quite legible, and I’ve achieved an excel- paragraphs around-even between productivity of its workforce. Similarly, lent work record by handwriting all my pages-simply by pressing a key or two. he had heartily agreed with Comptroller work.” You don’t have to bother with the preva- General Bowsher‘s 1982 statement before Know Change knows it will be difficult lent “cut and paste” technique; no more the 41st International Conference of the to convince his brother of the benefits of scissors and scotch tape. Dictating Institute of Internal Auditors: “Productivity acquiring typing skills and becoming profi- machinesdon’t permit this flexibility either.” improvement is the ‘bottom line’ on the cient on the office’s automated equipment. Neatness is a pleasant byproduct. Nation’s economic balance sheet. Pro- Taking a deep breath and a sip of water, “Fourth, typed documents are easier to ductivity is not someone else’s problem he faces the challenge. read and understand than handwritten but is a problem in which we all share.”’ “You know, No, you now make excel- ones, not only by the writer but also by Know Change had long ago learned lent use of a hand-held dictating machine. the supervisor. Neatness is especially that auditors must do a considerable I really helps in you work. But do you important for auditors (probably the amount of “creative” writing in preparing remember the resistance you originally majority) whose penmanship is not very documents, such as interview write-ups, had to it? The same applies to typing legible.” letters, memos, workpaper summaries, skills. Let’s look beyond your resistance A permanent record is established. reports, and digests. Although the spe- and examine some possible benefits. 1’11 “Fifth, while handwritten workpapers are cific audience could differ, the goal was bet I can give you 10 good reasons why usually prepared in pencil, typed prod- usually the same: to produce an orga- you should learn to type.” Know Change ucts are in ink, which provides a perma- nized, well-written, and timely document proceeds to do just that. nent record of the message. Furthermore, that correctly and completely conveyed Speedwriting is possible only by if you’re typing on a machine that has a the message@).Auditors also performed typing. ”First of all, handwriting is to memory device, as our electronic work a considerable amount of mathematical typing as the tortoise is to the hare. Most stations do, permanent and compact analysis. Since auditors spent about 35 GAO auditors appear to perform their document storage is also available.” percent of their time on data analysis writing responsibilities with zeal by tak- Support staff can more easily assist and written reporting functions, Know ing their trusty pen or pencil in hand and auditors. Sixth, the support staff’s task Change had reasoned that any method laboriously writing out their messages at is easier since, having initial product on of increasing his analysis and writing the tortoise-like speed of about 15-25 a word processor with a memory device, speed would make him more productive. words per minute. the typist merely has to make correc- In retrospect, he had been correct. “In contrast, the auditor with keyboard tions and adjustments” abilities can write with much greater Spelling and punctuation are im- The anxiety in his brother’s voice brings alacrity, at a ‘hare-raising’speed of 40 to proved. “Seventh, as you probably know, Know Change abruptly back to the 80 words per minute, as much as two to some handwriting isso illegible that writers present. “I don’t know what I’m going to four times faster than the tortoise! can often blur or ‘fudge’ spelling and do, Know. This job won’t be finished any- “While orally dictating messages into punctuationof which they are uncertain. wherenc arthetarget date; mysupervisor’s a dictating machine is faster than typing, Because typing presents a clear picture already on my back about being behind, dictation also has several disadvantages of words and punctuation marks, the typ- and I’ve been working late almost every which frequently make it impractical for ing writer is compelled to learn proper night trying to get caught up.” Stretching many of our writing needs. But more spelling and punctuation. Such learning his cramped fingers, No Change sighs about that later.” is undoubtedly to the writer’s long-range and looks at his brother searchingly. “What benefit, as is the discipline required to more can I do?” Organization is facilitated. “Second, acquire the learning.” Know Change has agreat deal of empa- by consolidating more sentences, para- thy for his brother’s situation, so he invites graphs, and thoughts on a single page, Electronic workstationscanbe used No Change to have lunch with him that you can much better organize the moreeffectively. “Eighth, you can more afternoon. By giving some brotherly, but message, without having to flip through easily and effectively use an electronic professional advice, Know Change hopes many pages to check your though flow. work station, or any word processor, if to be able to help increase his twin’s Also, by typing the initial draft, you are you know how to type. GAO’s ‘office of productivity. immediately working with something that the future’ sneaked up on us faster than resembles the finished product, rather we anticipated with the introduction of Scemeg: Ahcal than having to waite for your handwritten electronicworkstations.These machines draft to be typed. Dictating machines can’t provide data analysis and word process- offer this advantage, because they don’t ing capabilities as well as remote termi- produce an immediate, tangible record nalaccess.Withthesemachines, youcan of the message. When dictating, you have rework textual or numeric information and After ordering lunch, Know Change suc- to rely on your memory to organize your transmit it directly from the field audit site cinctly but bluntly addresses the issue. thoughts and messages.” to the home office or the headquarters, if “No Change, if you’d learn to type you Editing is expedited. “Third, having needed. could probably advance your career!” an immediate, legible hard copy of your “GAOs experience with these work sta- Know Change anticipates his brother’s initial draft allows you to start editing tions has clearly demonstrated that using startled expression, knowing well No’s right away; in fact, much editing can be automated technology to gather, analyze, opinions on the subject. done directly on the machine. For and communicate audit information can “Auditors audit and typists type,” retorts example, if you’re typing your draft on a help improve productivity. But many of No Change, appearing somewhat an- word processing machine, you can make the EWS‘s capabilities cannot be as effec- noyed. “Furthermore, my handwriting is changes and move sentences and entire tively used if you lack typing skills.”

GAO ReviewAVinter 1983 What Type’’ Auditor Are You?

Computer accessibility is enhanced. dures could be taught within a short period machine or methods may be of great “Ninth, auditors of the future will find that to time. Maybe the course could be taught use in settlements and publick (sic) automatic data processing knowledge even in the regional office during duty records, the impression being deeper and skillswill become increasingly impor- hours, since the resultingincrease in pro- and more lasting than any other writ- tant in conducting daily tasks. Because ductivity would benefit the off ice as well ing * * *.2 computer access is through a standard as the course participants. keyboard terminal, having keyboard skills “Another option would be to take a Some historians claim that Mill never can assist you in the transition to audit- typing course at school. Or you could really invented a typewriter but merely ing technologies of the near future. teach yourself at home with guidance patented an idea. History is unclear about “Maybe you’re a ‘cyberphobiac’-a per- from a typing book, a variety of which are whether the original idea was to fulfill son who hates or fears computers. In the available for purchase in college book- a need for better legibility or speed. early 1980’s, according to professor San- stores. However, once the basic idea was ford Weinberg of St. Joseph’s University “Still another way to learn is to ask established, writing machine inventions in Philadelphia, about 30 percent of the someone you know to teach you. I’d began to proliferate. people who used computers in their work be happy to show you how, or you could By the late 1700’s,many different ver- hated or feared them. ‘Cyberphobiacs’ ask another staff member-either another sions of a writing device appeared from suffer the same symptoms as other pho- auditor or someone from the support staff. such countries as France, Austria, bic people, including nausea, sweaty “Once you’ve learned the basics-the Switzerland, Italy, and France. The United palms, and high blood pressure. Wein- hand positions and the functions of the States entered the field some years later berg said that the fear of losing control is typewriter’s different parts-all you need when President Andrew Jackson granted one of the main causes of cyberphobia, to do is practice to build up your speed a patent to William Burt of Michigan in and can be eased through education and proficiency. You can do that during 1829. about the technology. Keyboard familiar- your lunch break or after work on any of ity could be one step in that direction.” the available off ice typewriters. You could Ear* MaebeFailures Typing is fun! “And last, but not least, type text from books or even compose work need not always be drudgery; you letters. Mom and Dad would love to hear WilliamBurtwasamemberoftheMichi- should try to get as much enjoyment out from you!” gan Territorial Legislative Council; as of your work as possible. And typing can such, he had more paperwork than he help you do that. Initially, you may not could handle involving contracts, corre- consider typing to be ‘fun’; but once you spondence, reports, records, and state- master the skills, you’ll find that the ments. He needed a method by which to mechanical rhythm achieved by using write faster. His attempted solution was your fingers and hands is a joy-especially an ingeniouswritingmachine, createdout when compared to the tedium of hand- No Change has just finished eating of wood, with an assortment of letter writing. This fun is further enhanced when dinner with his family and settles into his type obtained from a newspaper friend. you type on an electronic work station, favorite rockingchair. The evening news- This machine, which he called a “typo- because of the great flexibility it offers. paper rests on a table beside him, but grapher,” was based on a principle much On an EWS you can correct errors, delete No Change instead picks up a book on like that of the familiar toy typewriter: the or insert material, move sentences and “The Wonderful Writing Machine.” The type was mounted on a rotating wheel paragraphs around, and much more!” book had mysteriously appeared on his which could be moved around by the desk that afternoon, a not-so-subtle gift operator until the desired letter came to ***** from his brother. the printing point and was pressed down No Change starts to read the history No Change has been listening patiently against the paper with a lever. Although section and finds it fascinating. The need the “typographer” did a pretty good job- to his brother but, as their lunch arrives, for fast writing that existed centuries ago its print was neat and legible-it had one takes advantage of the pause. “But I still exists today. “Listen to this, Honey,” serious flaw from Burt’s point of view: can’t type!” he pleads plaintively. he says, and reads aloud to his wife. “That‘s a simple problem with a simple writing with the “typographer” was much solution,” replies Know Change calmly. slower than with the pen. Even though Burt was disappointedwith the machine, “I couldn’t type either when I first began Typewriter’s Be s hisnewspaperfriendwasnot. InMay 1829, using the electronic work station. But I learned. It’s as easy as learning to ride a The first record of a typewriting device ~urt’sfriend wrote to President Andrew bicycle, but without skinned elbows and was a patent given by Queen Anne in bruised knees! And once learned, like 1714 to a prominent English engineer, bicycling, it’s a skill not readily forgotten. Henry Mill. The patent gave Mill exclu- “There are several ways you can learn sive rights for 14 years to typing skills, that is, if you don’t want me to give you ‘hands-on’ instruction,” kids an artificial machine or method for the Know Change, putting his hands on his impressing or transcribing of letters sin- brother’s shoulders. gly or ProgressivelY one after ’GAO Management News, Vol 9, No. 44, “First, you could check with the train- as in writing, whereby all writings what- jUiy 13, 1982, p, 2. ing coordinator about the possibility of a soever may be engrossed in paper or ’Bruce Bliven, Jr., The Wonderful Writing typing course for interested auditors. Basic parchment so neat and exact as not to Machme. New York. Random House, 1954, typing techniques and practice proce- be distinguished from print; that the said P. 24.

26 GAO Review/Wtnter 1983 What T-e” Auditor Are You?

This is a specimen of the printing done Iam trying to get the hang of this new This fislful of ”change” represents the by me on Mr. Burt’s typographer. * * I fangled writing machine, but I am not “cents” you knockedintomy headlately. am satisfied * * that the typographer making a shining success of it. Uow- I’mletting my fingers do the talking from will be ranked with the most novel, use- ever this is the first attempt I have ever nowon. /can finallyunderstandthepracti- ful and pleasing inventions of this age.3 made & yet Iperceive Ishall soon & cality of typing in my daily work. Now easily acquire a fine facility in its that Iknow the benefits, I‘m eager to Despitethepatent, nobody wasinterested use. The machine has several change mybabits!“ Your Brother, kNOw in buying the rights to manufacture the virtues. Ibelieve it will print faster than I Change, Too. machine, so Burt and his friend aban- write. * It piles an awful stack of The year is not far away. What doned the idea. words on one.page. Itdon’t muss things 1984 or scatter ink blots around. Of course it type of auditor will you be? Other versions also failed due to their saves paper * * *.4 lack of speed. One model used a special alphabet of character signs made up of only about half a dozen straight lines, so MarkTwain did become proficient on the that only half a dozen keys were neces- machine; in 1876 he became the first ?bid., pp. 30-31. sary. The operator superimposed one American author to submit to a publisher ‘?bid., p. 61. impressionon top of another and built up atypewritten (double-spaced and on one ?bid., p. 67. the letters individually, obviously an side of the paper) book manuscript. That extremely slow process. book was entitled Tom Sawyer. In spite of these failures, the need for By 1909 a total of 89 separate type- a faster way to write continued. The pen writer companies existed in the United was annoyingly slow. In 1853 the hand- Statesalone. Thetypewriterwas promoted writing speed record was only 30 words as a safeguard against “pen paralysis, per minute! loss of sight, and curvature of the spine.’I5 A Success At Castt In 1933 International Business Ma- chines entered the typewriter field by The 52nd person to invent a printing taking over a firm called Electromatic machine was Christopher Sholes of Typewriters, Inc., which had been strug- Milwaukee, who is commonly thought of gling for a decade to add electricityto the as the typewriter’s “father” since his was machine. IBM succeeded, and the rest the first practicalcommercial machine. After of the typewriter’s history is now recent several versions, in 1867 Sholes pro- memory. duced a working machine with piano- Despite the rapid technological ad- style keys; he called it a “type-writer.” vances in machine capability, an ancient Although Sholes’ typewriter permit- vestige of the typewriter’s long history ted a speed of approximately 40 words still remains: the keyboard. Much contro- per minute, commercial and public accep- versy exists over the reasoning behind tance of the machine was at first an the arrangement of the keys, which is obstacle. Some people’s feelings were considered to be very inefficient. The hurt by receiving a “type-written” letter; letters were perhaps intentionally scram- theythoughtthattheprinting wasanasper- bled in an attempt to keep finger speed sion cast on their ability to read longhand. down to machine capability. Although Even the Government was not interested. modern-day machines can print at 400 Although quite a few bureaucrats were words per minute, the ancient keyboard complimentary about the invention, its still remains, long rooted in the skill of adoption was out of the question. Every millions of people who resist any change, Government agency was bound by miles even though human typing speed could of red tape prescribing in excruciating be considerably enhanced through a rede- detail what records were to be kept and signed keyboard. how they were to be kept; nowhere was mention made about typewritten matter. Ssemne4: TheNext Fortunately, as newerversionspermit- Mardug Know tedgreatermachinespeed, thetypewriter’s at popularityclimbed. For example, in 1874, Change’s Desk after seeing a demonstration of speed- typing at 57 words per minute, Samuel After getting a cup of coffee, Know Clemens (MarkTwain) was so impressed Change sits down at his desk and is that he paid $125 for a typewriter of his surprised to find a handful of change on own. He enthusiastically wrote to his top of a typewritten message that myste- brother, Orion Clemens, on December9, riously appeared on his desk. He reads 1874: the not-so-subtle note from his brother.

GAO RmiewlWinter 1983 27 !&ansportation for the Elderly and Handicapped: The Answer Remains Elusive 62-47 1 j 2\\5q Making the Nation’s transit systems billion; annu I o erating costs were esti- accessible to the elderly and handicapped mated to increase by about $70 million. is a highly controversial issue that has The antiquated subway systems of New raised many difficult questions: York, Chicago, Boston, and Philadelphia 0 Should the elderly and handicapped were most affected by these regulations. have the right to expect access to the For example, some transit industry offi- mass transit facilities used by the rest of cials believed that the estimated cost of society? retrofitting New Yorks transit and com- 0 Should transit systems be required muter rail systems alone would be $2.5 Stephen L. Keleti to make buses, subway cars, and sta- billion. Mr Keleti is a senior group director responsi- tions accessible to the elderly and ble for audits of mass transit and railroad handicapped? Many transit industry representatives programs in the Community and Economic 0 Should existing transit systems be were concerned that the required changes Development Division He holds a B S degree required to retrofit aging facilities and would also discourage public transit use. in accounting from Saint Joseph’s College in make them accessible? They claimed that operating time for buses Philadelphia and has studied at American 0 Who should pay for the cost of mak- would be lengthened because of the extra University Mr Keleti received the GAO Meri- ing transit: systems accessible? time required to operate the lifts and torious Service Award in 1972 and 1973 and In 1970, the Congress passed legisla- securely fasten wheelchairs in the vehicle. was a member of a group that received the General Government Division Directots Award tion declaring that the elderly and the This could mean that more buses and in 1976 for a legislatively mandated audit of handicapped should have the same right subway cars would be needed to rnain- the Small Business Administration He has as anyone else to use mass transit facili- tain a reasonable service frequency. had several previous articles published in ties and services. The much stronger Opponents to accessibility also con- the GAO Review. Rehabilitation Act of 1973, passed 3 years tended that a door-to-door transporta- later, stated that ”no handicapped indi- tion system would be the most practical vidual shall be excluded from participat- for the handicapped. They questioned ing in, be denied the benefits of, or be the usefulness of lift-equipped buses in subjected to discrimination under any cases where the handicapped person program or activity receiving Federal finan- could not reach the bus stop due to curbs, cial assistance.” lack of sidewalks, or bad weather. In 1978, the Department of Transpor- But it was the low usage of lift-equipped tation (DOT) issued regulations stating buses that caused concern in the transit that new transit facilities had to be acces- industry. For example, Los Angeles has sible to the handicapped and existing more than 1,300 lift-equipped buses but facilities had to be rebuilt or retrofitted for the lifts are used only about 13 times a accessibility. DOT’s regulations meant day. At National Airport in Washington, that all transit systems had to buy buses D.C., where handicappedriders telephone equipped with wheelchair lifts until at least for a special bus to pick them up, and half of their peak-hour bus fleets had average of 4 or 5 handicapped riders wheelchair lifts; all new rapid-rail facili- used the service each month. ties had to be accessible; key stations of The American Public Transit Associa- existing rail systems had to be retrofitted tion, among others, filed a suit challeng- to make them accessible; and by July ing DOT’s rule. In May 1981, a Federal Joanne E. Weaver 1982, interim accessible transportation court decided that the rule exceeded the Ms Weaver is a senior GAO evaluator in the had to be provided for handicapped per- authority provided by section 504 of the Community and Economic Development Divi- sons until permanenttransit service acces- 1973 act, and returnedthe regulationsto sion and was project manager for the assign- sibility was achieved. the Secretary of Transportationto deter- ment described in this article She Joined These regulations aroused consider- mine whether the mass transit accessi- GAO in 1967 after receiving a B S degree able controversy among DOT, the tran- bility requirements might be authorized from Indiana University of Pennsylvania She sit systems receiving Federal mass transit by other statutes. has done graduate work at George Washing- assistance, and various organizations rep- Accordingly, DOT issued an interim ton University, is a C P A (Virginia), and is a resenting the elderly and handicapped. rule on July 20, 1981, rescinding the member of the American Institute of Certified The total cost of making equipment acces- accessible mass transit requirements and Public Accountants and the American Wo- man’s Society of Certified Public Accountants sible was estimated to be as high as $9 substituting a local option approach.

28 GAO ReviewhVinter 1983 Transportation for the Elderly and Handicapped

DOT'Sinterim policy is that recipients of or made no special effort to use the lifts. they had at the time the regulationswere Federal assistance for mass transit are Only 35 systems indicated that they made changed. responsible for providing mass transpor- special efforts to schedule lift-equipped tation to the handicapped and that local buses on specific routes, and 5 systems ed Sedces communities are responsible for decid- were preparing to start such service in ing how such transportation is to be 1982. Under the interim regulations, locali- provided. DOT just requires that finan- Only three systems provided lift- ties may offer specialized services for the cial assistance recipients certify that they equipped service on all of their bus routes. elderly and handicapped instead of mak- are making special efforts to provide trans- Generally, the systems scheduled lift- ing the regular transit system accessible. portation to the handicapped.This interim equipped buses on their main routes or These specialized services generally are rule will remain in effect until a new, per- on specific routes where the need was paratransit operations which consist of manent regulation is published. (DOT identified. Handicapped groups gener- some form of demand-responsive,door- has not established a formal target date ally consider this limited coverage to be to-door service using buses, vans, or for issuing the permanent regulations.) inadequate. They point out that handi- taxis. Of the areas we contacted, 66 Because of the Reagan Administra- capped persons have the same transpor- offered paratransit service-generally tion's philosophy of minimizing Federal tation needs as any other individual and contracted for or operated by the transit involvement in local operations, each com- that the bus system is, in effect, defining system, but in some instances, operated munity will be responsiblefor monitoring where they can go. by a local government agency. its own compliance with the interim The hours of service on lift-equipped No widely accepted criteria exist to regulations. The Urban Mass Transpor- buses may also be limited. For example, evaluate the adequacy of a paratransit tation Administration (UMTA) will take one wheelchair user we talked to in service or its comparability to regular action only if a grantee fails to certify it is Washington, D.C., who normally com- transit service. Localities must consider making special efforts or if UMTA receives mutes to work by bus and the subway, the following factors when evaluating a complaint of noncompliance. The regu- told us about an instance where he wanted paratransit service: lations state that noncompliance must to attend a public hearing about changes Eligibility requirements for using be based on a consistent pattern of fail- in the local transit system. He had to go the service. A loose eligibility require- ing to make special efforts to provide home after work and switch to his own ment, such as everyone with a mobility transportation for the handicapped and specially equipped vehicle becausethere impairment or over a specified age, may not just on isolated problems, such as were no lift-equipped buses scheduled result in people who are able to use the the failure of a vehicle to arrive as on his route after the hearing. regular transit service selecting this more scheduled. costly alternative. This may overburden In January 1982, members of the Sen- Thirty of the transit systems are still the available equipment and deny ser- ate Committee on Banking, Housing, and planning to have at least half of their vice to people who really cannot use Urban Affairs asked GAO to find out what buses equipped with wheelchair lifts. In other services. The eligibillty requirements communitieswere doing to meet the trans- fact, 10 of them intend to have all of their for the services we contacted varied from portation needs of the elderly and handi- buses lift-equipped to eliminate schedul- very loose ones (everyone entitledto the capped since the interim rule was issued. ing problems. For a variety of reasons, elderly and handicapped discount fare All of the transit systems receiving DOTS the transit systems will continue to make on the regular transit service) to very financial assistance had certified that they their regularly scheduled service acces- strict ones (only those people who could were making special efforts to serve the sible to the handicapped. Some had to not use the regular service). Many opera- elderly and handicapped. We surveyed do it to comply with State laws, some tors required a medical certification veri- 84 of the more than 350 transit systems were under pressure from local handi- fying the individual's handicap, and one across the country to find out what these capped groups, and some admittedthat, system required that individuals actually special efforts were and what changes while they believed demand-responsive, take a test to see whether they were able had occurred since the Federal regula- door-to-door service was a better ap- to negotiate the bus steps. tions were loosened. proach, in the long run it will cost them Advance reservationsrequired. This less to use lift-equipped buses. is a touchy subject with handicapped per- EMS $ieS"d@e sons because it denies them flexibility, In our survey, we found that 19 of the SeRwise but service providers claim they would 84 systems deleted wheelchair lifts from need more vehicles if they did not use buses that were on order at the time of Of the 14 rail systems we contacted, advance notice to schedule their equip- the change in regulations, and 15 sys- the 3 newest systems (Washington's ment efficiently. Most of the systems (49 tems that had initiated bus procurements Metro, San Francisco's BART, and out of 66) we contacted required 24 hours between July 1981 and March 1982 were Atlanta's MARTA) are all fully accessible, advance reservations; only four required buying buses without wheelchair lifts. and they plan to continue accessibility less than 24 hours. Regular users of the At the time of our survey, 55 of the with any new construction. One other service (such as commuters who use it systems had some wheelchair lift- system planned to make all of its sta- daily or kidney dialysis patients who have equipped buses. The information on the tions accessible, and two others planned weeklytreatments) aregenerallynot sub- number of systems with lift-equipped to make 50 percent of their stations ject to this requirement-they notify the buses wassomewhat misleading because accessible. The remaining eight systems operator only when they do not intend to only 8 systems had lifts on 50 percent or either had not yet made any decisions more of their buses, and 15 systems on accessibility or did not plan to provide admitted that they either made no use of accessibility beyond the minimal amount See ELDERLY,p. 50.

GAO ReviewA%'inter1983 “Shadowins$’ The Comptroller General

Grooming new executives for top man- do you do anything other than sit around agerial positions in GAO is the business and observe Mr. Bowsher? And, I con- of the Executive Development Candi- tinue to field these types of questions as date Program. (See GAO Review, Fall I move on to different assignments in the 1982.) I am one such candidate and would Office. like to share my experience regarding The purpose of this article is to briefly one of the program’s assignments- answer some of these questions. shadowing. General Accounting Office personnel are paid to be inquisitive, paid to ask questions when introduced to new programs, assignments, systems, and To briefly dispel one rumor, there is people-especially people who unexpect- nothing mystical about my sudden appear- edly appear at high-level management ance on the Seventh Floor, and more meetings with no known invitation. specifically in the Comptroller General’s Paul F. Math This inquisitive trait was amply evi- suite. denced by many colleagues during my Under the Executive Candidate Devel- experience as “shadow” to the Comp- opment Program, a candidate’s Individ- Mr Math entered the SES candidate pro- troller General. Numerous, varied ques- ual Development Plan may feature gram as a senior group director in the tions were either directly addressed to shadowing an agency executive as an Procurement, Logistics and Readiness assignment or a component of an Division tie began his career with the Chi- me, exchanged between participants at meetings Iattended, orvisually portrayed assignment. My plan proposed, as a high cago Regional Office and came to Washing- priority assignment, working in a staff ton via the European Branch He a CPA through inquisitive facial expressions, IS position with either the Special Assistant (District of Columbia) and has an M S. degree such as: in administration from George Washington e Who is that person tagging along to the Comptroller General or an Assis- University Mr. Math has spent 3 months in behind and two steps to the right of Mr. tant Comptroller General. Mr. Bowsher the Philadelphia Regional Office working as Bowsher? had an interest in assigning potential exec- an assistant regional manager, doing spe- e What is that person at the end of the utives to his staff on a rotating basis with cial projects, and shadowing the regional table doing here; is he cleared for basically the same goals and objectives manager Mr Math is currently shadowing of the candidate program. When briefed the Comptroller General classified/sensitive information? e If he is part of this meeting, why doesn’t on the program, the parallelism became he say anything? evident, and the two became one. e “Does Mr. Bowsher have a body- Although commonly referred to as Mr. guard?” This question arose because Bowsher’s shadow, I actually combined my desk was “strategically” located where the activities of shadowing, administra- I could observe everyone entering and tive support, special projects, and self- leaving Mr. Bowsher’s office, as well as development. This experiencetherefore those coming up the G Street corridor. represents one way the candidate pro- “Does Mr. Socolar have a second gram provided me opportunities to get secretary?” My desk was also formerly an executive perspective on GAO’s over- used by his second secretary. all mission and activities. My assignment also generated a few rumors. “He must be slated for an Asso- Gods and Experiences ciate Director slot in that Division. . . it’s the only Division he has visited with Mr. The Executive Candidate Development Bowsher.” “It is obvious that Defense Program definition of shadow expands work will have a higher priority in our Webster’s “inseparable companion or work, otherwise, Mr. Bowsher would not follower” by stating that candidates who have selected a Defense person as his shadowtop level executives usually attend ‘aide de camp’.’’ all meetings with the executive and receive The more directed questions were copies of all memoranda, work assign- asked when people were informedthat I ments, etc., directed to or involving the was Mr. Bowsher’s shadow. These executive. included “what is a shadow; what are This definition is a guide, no! fixed your duties and responsibilities; do you criterion. Each assignment is different in really know everythingthat is happening that it is tailored to the candidates’devel- in the Office; if so, when will the new opmental goalsheeds, as well as the organization chart be unveiled, what does executives’ duties, responsibilities and it look like, and who are the key players; needs. In effect, shadowing may include

30 GAO ReviewlWhter 1983 “Shadowing”the Comptroller General

anything from one activity-bserving a A Sometimes Frustrat- ing selected issues or in preparing for staff meeting chaired by an executiv+to presentations, briefings, or discussions. an entire assignment with an executive. ing Role My assignment with the Reports Task My primary goals in this activity were to Force, which made an initial evaluation (1) learn as much as possible about the Each shadow’s role varies and is nor- on report timeliness, could be catego- diverse subjects being addressed by top mally based upon agreements reached rized as indirect support to the Comptrol- management-intemal operating, as well between the executive shadowed, the ler General. Nonetheless, it too was as external reporting issues and con- candidate, and the candidate’s mentor. exceptional in terms of the subject cerns- and (2) observe the different In my case, all parties agreed that, in the matter-a major organization concern managerial and leadership styles, and interest of efficiency and effectiveness, for some time-and the process. The the decisionmaking processes both on a the silent observor role with the CG would process could be described as achiev- collective (large and small groups) and be most appropriate. I would listen and ing resultsthrough a “leaderless group.” individual basis. observe, but comment by invitationonly. Although a chairman was assigned, he Although I wholeheartedly supported was basically an “outsider” who, having My shadowing assignment meant this decision, I must admit that comply- been with GAO only a few months, acted attending the Comptroller General’s ing with it representedthe most frustrat- as a facilitator. Matters were decided by meetings, discussions, brainstorming ing part of this assignment. It is difficult consensus-no easy feat when the sessions, and presentations. The types to assume a passive role when you believe decisionmakers included high-level of sessions I attended included those of that valuable contributions can be made- executives with diverse backgrounds, a recurring and selective nature. Recur- and more often than not our egos tell us opinions, sensitivities, and conflicting ring sessions included the Comptroller that our cpntributions are valuable. demands (such as running a division or General’s daily 8:15 meetings with the At these sessions, I divided my time office), who had to produce a product Special Assistant to the CG and the Assis- between learning more about the sub- within 3 weeks. The group worked tant CG for Policy and Program Plan- jects being addressed, and when famil- extremely well together, so well in fact, ning where “new assignment starts” were iar with the subjects, observing the that Mr. Bowsher asked them to con- discussed, Office of Congressional management styles and decisionmaking tinue to address the issues/optionsthey Relations’ meetings, Program Planning process. Such time sharing can have its raised as well as some other related Conferences, report and job review pitfalls because the choice between leam- Comptroller General concerns. sessions, etc. Selective ones were Con- ing and observing may be ill-timed. If solidated Administrative Management caught in the “other” mode, one could Self Development Information System and Electronic Work be perceived as being inattentive. In my Station presentations,Comptroller Gen- case, where participationwas based on Self development principally centered eral testimonies, luncheons, brainstorm- invitation only, I tended to concentrate on reading as much material as time ing sessions with the Personnel Task on observing the process more often than permitted which was generated for and Force and Steering Committee, official following the subject matter. For example, by the 7th floor. This included a wide ceremonies, Division visits, etc. on a couple of occasions I was evaluat- variety of reports issued during this period, ing the process when I got caught off division issue area plans, testimonies, Perhaps the most fruitful sessions for guard with an invitation to comment on administrative correspondence, etc. The me, in terms of observing managers and the subject mater with which I had some objectives of this activity were to gain a gaining insights into the process and expertise. Frustrations aside, the experi- greater appreciation of all the diverse issues, were the 8:15 meetings and the ence was exceptional. issues which are addressed by the Comp- brainstormingsessions of the Personnel troller General, while at the same time Systems Development Project (PSDP). attain a better understanding as to how The 8:15 meetings were unique in light and Pmjecds seemingly diverse issues tie together. of the myriad topics confronting the partici- pants on a daily basis. Although I had Administrative duties consisted of those Conelusion read about various GAO reports in tasks specifically performed upon request, newspapers, GAOs clippings service, and those of a general nature which were Shadowing, as either an assignment I .. and the Monthly List of Reports, didn’t designed to reduce the time required by or activity, represents one means for an really appreciate the diversity and depth Mr. Bowsher to review and analyze the executive-development candidate to of our efforts until I heard them discussed significant volume of information which improve on the managerial and leader- at these sessions. he receives as Comptroller General. shipskills expected of effectiveexecutives. This latter effort was accomplished There was no mystique about my assign- Similarly, the after-hours brainstorm- through daily screening, summarizing, ment as Mr. Bowsher’s shadow. However, ing sessions on the PSDP were most and highlighting information such asoffice because I was the first in a program enlightening, principally in termsof observ- of Congressional Relations’ communica- which is also in its implementation infancy, ing collective decisionmaking by top level tions, Congressional Record data, gen- there were many important and humor- managers and consultants in GAO. I was eral correspondence, periodicals, publi- ous questions asked. And, because of also impressed by the number of inter- cations, etc. the questions, some revisions have been vening variables the participants in both Special projects were normally quick made in the approach to shadowing. the 8:15 meetings and the PSDP faced turnaround efforts (no more than a week when deciding internal management to complete), and basically consisted of issues. requests for information for use in clarify- See SHADOW, p. 50.

GAO ReviewlWinter 1983 31 No alien land in all the world has any At Home and Abroad in deep strong charm for me but that one, no other land could so longingly and so beseechingly haunt me, sleeping and waking, through half a lifetime, as that one has done. Other things leave me, but itabides; other things change, but it r remains the same. For me its balmy airs are always blowing, its summer seas flashing in the sun; the pulsing of its surfbeat is in my ear; I can see its gar- Kauai N landed crags, its leaping cascades, its 4 , , ,., , , plumy palms drowsing by the shore, its 20 0 20 remote summits floating like islands NllhakP@ - above the cloud wrack; Ican feel the Kaula Oah Molokai spirit of its woodland solitudes, I can hear the plash of its brooks; in my nos- UI trils still lives the breath of flowers that perished twenty years ago. Kahoolawe Mark Twain said it over 100 years ago, and although he might no longer recog- PACIFIC OCEAN nize the land, his description of Hawaii expresses what most of us in the Far Hawai East Branch (FEB) feel about the place where we live and work. As in the other overseas branches, foreign travel is a way of life here, and HAWAIIAN ISLANDS our staff usually spends half its time visit- STATE OF HAWAII ing and working in exotic places most people only read about. Time and distances, however, set us uniquely apart ippines around midnight on Saturday, denly become Monday. This magical from the rest of GAO.For instance, when he travels through six time zones. When transformation occurs because of the FEB starts work in the morning, Denver he reaches Manila, his body knows full boundary called the “International is taking its midmorning coffee break, well that it has been on the road for 12 Dateline,” which can turn a 12-hour trip Washington has just finished lunch, Frank- hours, but his watch tells him it’s only into a 36-hour odyssey. furt is sitting down to dinner, and our 8:OO in the morning, time for a full day’s The hours stolen by the Dateline are staffers on assignment in Korea are sleep- work. Our traveler’s calendar tells him not lost forever. Flying from Tokyo’s Narita ing soundly in the early hours of tomorrow. something elsethat Saturday has sud- Airport at 9:30 p-m. on Friday night, one

The distances between Hawaii and work locations in Asia are huge. FEB’s territory covers almost half the earth’s surface-an expanse of almost 100 mil- lion square miles of land and water- extending west to Afghanistan and south to Australia and New Zealand. Even Japan, one of the closest foreign work locations, lies almost 4,000 miles and more than 7 hours west of Hawaii. Traveling throughout this vast area is one of the most exciting and challenging aspects of life in FEB. Consider this list of faraway places waiting to be explored: Hong Kong, Jakarta, Bangkok, Kuala Lumpur, Katmandu. Even less exotic places, such as Diego Garcia, Guam, and Johnston Island have their appeal. Getting there, however, entails problems of time and distance. For example, when John Meenan. kneeling, and John Trembler in Seoul, Korea. (Photo by F. Comito) a passenger leaves Honolulu for the Phil-

32 GAO R&ew/Whtm 1983 stumbles out of the plane in Honolulu at about 9:00 o’clock Friday mornin~l2 hours and 30 minutes before one left Japan. When one adds all this to the lonely hours spent waiting for delayed or con- necting flights, misplaced baggage, dehu- manizing customs-clearance procedures, and taxi drivers bent on self-destruction, travel in the Far East soon becomes less than glamorous. Most FEB staffers, though, will gladly endure these hard- ships for the chance to travel to cities and countries they have never seen before. ma Man KeEa d)ka&a P ffi Bono

Translated from the Hawaiian, the State motto speaks of the land which from ancient times has been closely linked with Hawaiian spiritual beliefs. The Hawai- ian Islands are part of a vast undersea mountain range, higher even than the Himalayas and extending in a northeast- erlydirection as far as Midway Island. Of .. . the seven principal islands, Hawaii is the largest, while Oahu, the main island, has Honolulu and 90 percent of the State’s population. Hawaii is the transportation hub of the Pacific and a cultural and ethnic cross- King Kamehameha I united the Hawaiian Islands and started the Kamehameha roads, where the varied traditions and dynasty. (Photo courtesy Hawaii Visitors Bureau) races of Polynesia, the Occident, and the Orient have combined to create an aligned themselves with the chiefs against On August 21, 1959, Hawaii joined unusual society. The first inhabitants are some of these evils. Perhaps the strong- the Union as the 50th State. The decades thought to have arrived more than 1,000 est instrument of change proved to be after statehood have produced unprece- years ago from the Marquesas and Soci- agriculture. On Oahu, which had more dented growth and change. Rapidly devel- ety Islands in southeastern Polynesia. than half of Hawaii’s best agricultural oping air transportation, culminating in Their crossing several thousand miles of land, sugar companies consolidated larger and faster jets, has brought more ocean in open canoes stands as one of landholdings, introduced irrigation, and and more visitors here: an average of the more remarkable seafaring exploits imported large numbers of laborers. 10,000 a day. Tourism has become of all time. When British Captain James Henceforth,the economic fortunes of the Hawaii’s largest source of income, fol- Cook “discovered” the islands in 1778, islands and the sugar industry rose and lowed by Federal military expenditures. he found a well-organized,self-sufficient, fell together. In 1980, tourism poured more money feudal society. Cook named the archipel- The Kingdom of Hawaii that Kameha- into the economy than all legal agricul- ago the Sandwich Islandsafter his patron mehaestablishedlasted until 1893, when tural products combined. the Earl of Sandwich, and for many years it was deposed in a bloodless revolution. Hawaii’s wide range of ethnic groups the islands were so known to the west- The provisional government then con- reflects successive waves of immigration. ern world. Shortly after Cook’s arrival, verted Hawaii into a republic and re- Numbering almost 300,000 when Cap- King Kamehameha I dominated all the quested annexation by the United States. tain Cook arrived in 1778, Hawaii’s islands and moved his capital to Oahu. Hawaii became a U.S. territory in 1900. population, ravaged by foreign diseases, In 1820, the first American missionar- For Hawaii, 41 years later, the trauma was only 54,000 a century later. Before ies arrived from New England. Besides of World War II went beyond the tragic long, however, the population began to introducingChristianity, they represented events of P@arlHarbor. Quickly mush- increase due to the growing sugar the first of several migrations which led rooming into an armed camp, Hawaii industry’s demand for plantation work- to the present cosmopolitancharacter of became the nerve center of America’s ers and the rush to import laborers to Hawaii’s people. Following Cook’s arrival, entire Pacific struggle. The islands played expand crop production.Starting in 1852, the introductionof western diseases and a major part in supporting America’s role Chinese, Japanese, Portuguese, and liquor and a breakdown of the ancient in the Korean War, while during the Viet- Filipinoswere brought in under contract, morality created chaos. The missionar- nam era they were a rest and recreation thus beginning the stream of labor into ies gained great success because they area for combat troops. Hawaii that continued until 1946.

GAO Reviewm’inter 1983 33 At Home and Abroad in Paradise: GAO’s Far East Branch

If the name Oahu means “gathering place,” it fits, for Hawaii is truly the gath- ering place for a myriad of races and people. Ethnically, the population is quite diverse, as shown in figure 1. This amalgamation of races continues as people come here from Indochina, Samoa, the Pacific islands, the Philip- pines, andthe US.mainland. In addition, tourists visit from around the world. Fram TS~Ot~ HonoldM: me His&ory of PEB

Since its establishment in 1956, the FEB has undergone several organiza- tional changes. At present, its one office in downtown Honolulu coordinates all GAO’s Far East activities. First estab- lished in Tokyo in 1956 under the direc- tion of the Defense Division, the office had responsibilityfor carrying out GAO’s work in all Department of Defense activi- ties throughout the Far East. This area lolani Palace, home of Hawaii‘s reigning monarchs, is better known as the Governor‘s then included Japan, Formosa, the Palace on Hawaii Five-0. (Photo courtesy Hawaii Visitors Bureau) Philippines, the Mariana Islands, Cam-

remained under the International Division. How to say ”hello“ in some of In August 1965, FEB moved its head- the languages of the Far East/Pacific Basin quartersto Honolulu. Then itsgeographic area of responsibility broadened to include ...... HAFA ADA1 ...... ALOHA Hawaii (previously directed by the San ...... SELAMAT DATANG Francisco Regional Office), Australia, and ...... IKAGA DESKA New Zealand. In August 1966, asubofficewasopened ...... SALAM in Saigon, where GAO audited in a com- ...... SELAMAT bat area for the first time. This suboffice ...... concentrated on activities within Vietnam. s) ...... KUMUSTA KA Saigon’s effectiveness led to the estab- ...... WADEE KRUP lishment of another suboffice, initially located in Manila. Here, GAO staffers carried out fieldwork not only in the Figure 1 Hawaii’s Ethnic Profile Philippines, but also in Laos, Thailand, Burma, Malaysia, and Indonesia. Since Ethnic Groups Percent much of this suboffice’s work occurred outside the Philippines, it was transfer- Caucasian 27.7 red to Bangkok in 1972. Meanwhile, the Japanese 26.6 Vietnam War was ending, and in Decem- Hawaiian and part Hawaiian 17.7 ber 1973, that office officially closed. Filipino 10.2 The Bangkokofficethereupon became Chinese 4.3 FEB’s only suboffice. This office oper- Mixed other than part Hawaiian 9.2 ated until June 1982, when its responsi- All others 4.3 bilities and staff movedto FEB headquar- 100.0 ters in Honolulu. The Staff bodia, Laos, Vietnam, Thailand, and coun- Nevertheless, FEB continued to operate tries as far east as Pakistan. underthe Defense Division until the Inter- Before 1975, no regulation limited an The branch’s activities expanded in national Operations Division (now the evaluator’s stay in the branch. Since then, 1961 to include Civil Division reviews of International Division) was established all audit staif receive an initial 2-year economic assistance to Asian countries. in August 1963. Since then, FEB has assignment, while some may be given

3# GAO Review/Whter 1983 At Home and Abroad in Paradise: GAO's Far East Branch

ments with two nations which allow US. Forcesto lease bases and other facilities. Commerce with Asian-Pacific countries accounts for about 25 percent of all U.S. foreign trade and exceeds our business with the European Economic Community. The flow of oil through the Indian Ocean sea lanes alsocritically concerns us. About 95 percent of the Middle East's produc- tion traverses this area to reach oil- importing countries. Thus, we need to keep this area politically and economi- cally stable.

FQWSom FEB Work

The branch works in several issue areas and for several divisions. This variety reflects the growing importance of Asia and the Pacific to the United States. Our FEB's lifeblood, the administrative staff. From I to r: Aloha Hanohano, Jane ilyeno. evaluations have covered military readi- Janet Sasaoka, and Wini Murakami. (Photo by F. Comito) ness, security assistance, international trade and finance, development assist- ance, U.S. territories and trusteeship, and energy issues. Military Readiness

The Pacific Command, geographically the largest of the four U.S. unified mili- tary commands, IS based in Honolulu. The command includes two subordinate unified commands (US. Forces, Japan and U.S. Forces, Korea) and three ser- vice component headquarters in Hawaii (U.S. Pacific Fleet, U.S. Pacific Air Forces, and the Army's Western Command).The Pacific Command defends U.S. national interests in the Pacific and Indian Ocean area and represents the United States in five major collective defense arrange- The FEB management team discusses future assignments. From I to r. assignment ments: mutual defense treaties with manager Lee Furr, assistant branch directors John Payne and Jim Abts. and the Japan, Korea, and the Philippines, the director Vic Lowe. (Photo by F. ComitoJ Manila Pact, and the ANZUS treaty with Australia and New Zealand. As part of our work in military readiness, the option of remaining an additional 2 bers help the Honolulu office in its work. we recently evaluated U.S. Forces in years. After 4 years, they are reassigned Unlike the audit staff, they are all hired Korea. FEB has also audited fleet readi- to the mainland. locally and need not rotate out. Indeed, ness in the Pacific and considered the Given this staff rotation and staff selec- they bring stability and continuity to our Air Force's capability to logistically sup- tion through agencywidecompetition, the office. Each indispensable support per- port operations in Asia. office enjoys real diversity. Of our cur- son has served the branch for at least 10 rent 29 audit staff, less than half come years. Seed@Assistance from Washington,D.C. headquarters;the remainder are from the regions. Boston, Because security assistance is essen- New York, Philadelphia,Norfolk, Cincin- tial to our national security and foreign nati, Chicago, Atlanta, Dallas, Denver, policy, we help our allies to acquire, use, San Francisco, and the Washington and maintain self-defense. In fiscal year Regional Office all have representatives 1983, almost $1 billion in security assis- here. Four people are also former mem- The United States has important tance programs will go to several coun- bers of the disbanded Bangkok suboffice military, economic, and strategic inter- tries in FEB's area of concern. These and are completing their 4-year tours ests in the Asian-Pacific area. Besides programs range from a $20,000 grant to here. its role in five major collective defense Papua, New Guinea, for military educa- Four permanent support staff mem- arrangements, our country has agree- tion and training, to $275 million in for-

GAO ReviewATinter 1983 35 At Home and Abroad in Paradise: GAO's Far East Branch

countries, host-country contracting rity assistance, we also pay for updating, procedures, and U.S. participationin the constructing, operating, and maintain- International Fund for Agricultural Devel- ing these facilities. opment Bank. In the Far East, the United States has agreements for basing in Diego Garcia U.S. Territaries and and the Philippines. We will spend Trusteeship approximately$825 million upgradingthe existing facilities, building an anchorage, The US. territories of American Samoa, and expanding the Diego Garcia airfield. Guam, and the Trust Territory of the FEB is currently reviewing the Navy's Pacific are in our work area. These terri- construction plans for Diego Garcia. toriesdependheavily upon Federalfinan- Since 1947, the Philippine Islands have cia1 assistance to operate their govern- providedmajor support and basing facili- ments, finance their capital improvements, ties for U.S. forces. Under a 1979 and develop their economies. In fiscal agreement, the Republic of the Philip- year 1981, Federal assistance totaled pines is to receive about $500 million in about $400 million through direct appro- security assistance payments over a 5- priations, grant programs, and taxes. In year period. In addition, the U.S. spends addition, the Department of Defense main- about $350 million annually to operate tains facilities on some of these islands. and maintain these facilities. FEB will be FEB's work in the territories covers evaluating pertinent issues in this cur- several issue areas. The staff recently rent agreement, which comes up for evaluated the fairness of how electric review in 1984. Frank Comito inspects an M-48 tank, part power is provided to military and civilian EnerSY of the U.S. prepositioned war reserve users on Guam, as well as the effective- stock in Korea. (Photo by J. Meenan) ness of (1) Guam's income tax collection The everchanging energy situation system, (2) Federal comptrollers' execu- touches every Asian and Pacific country eign military sales credits to Pakistan. tion of audit responsibilities in the U.S. according to particular energy require- Our staff recently led a worldwide review territories, and (3) U.S. efforts to prepare ments. The branch has responded by of the overseas management of the secu- the trust territories for self-government. helping to analyze how this situation rity assistance program involving 14 Base Rights affects our country and its energy policy. countries. Past reviews in security assis- FEB staff members have also reviewed tance considered how the United States The United States has agreements the federally assisted alternative energy consults with its allies in mutual security with foreign governments authorizingour projects of the State of Hawaii. The state matters, the Taiwan Relations Act, and military forces to use bases and other plans to use its indigenous, renewable the US. security assistance program in facilities in their countries. Besides direct energy resources (geothermal, solar, Korea. payments, generally in the form of secu- wind, ocean thermal, and biomass) to Economic Assistance

Between 75 and 80 percent of the poor people of the world live in the Asian- Pacific area, and their needs are dire. Most direct U.S. assistance comes through the Agency for International Development (AID) programs, which emphasize food production, health care, population control, and energy develop- ment. In this region. AID concentrates on economic and social growth and alle- viating poverty. Other U.S. departments and agencies administer development assistance programs involving food and health. Our country also participates in United Nations' agencies that aid devel- opment as well as in multilateraldevelop- ment banks. In this issue area, we have evaluated the effectivenessof US. efforts to chan- nel and manage its development assis- tance resources. Recent reviews have The Trust Territories crew. Standing I to r: John Wooditch (ID headquarters staff focused on post-harvest food losses, member), Thad Hecht. Tip Blue, Charlie Culkln. and Doug Toxopeus Front: Ed Young. trade strategies in less developed (Photo by A. Lee)

36 GAO Review/Winter 1983 At Home and Abroad in Paradise: GAO’s Far East Branch

part of foreign travel, our staff enjoys the part of Christmas in Hawaii as they are scenic and cultural riches of the Far East on the mainland. Large shipments of and the Pacific Basin. On weekends, we Christmas trees are brought in from the have visited Mt. Fuji, the Khyber Pass, Pacific Northwest. the Taj Mahal, Panmunjom, Bali, Hong Although the luau is probably the best Kong, Singapore, and Australia. known of Hawaii’s gastronomic traditions, When not on the road, FEB staff have Honolulu offers an extraordinary assort- a full range of leisure activities available ment of cuisines. Here one can find to them in paradise. Hawaii is best known American, Chinese, Filipino, French, for its ocean competitions in surfing. But German, Greek, Hawaiian, Italian, for those who care to enjoy the water at a Japanese, Korean, Mexican, Polynesian, more unhurried pace, there’s swimming Thai, and other restaurants. atoneof Oahu’smanybeautifulbeaches, At night, Honolulu’s downtown and Wai- where staff picnics are frequently held. kiki sections offer a range of entertain- Besides permitting boating and deep- ment and nightlife rivaling that of any sea fishing, the surrounding ocean pro- large city on the mainland. Waikiki is vides a breeding ground for tropical reef perhaps Hawaii’s biggest attraction and fish and sea turtles, which enhances snor- is the place where most of our 3.9 million keling and scuba diving in many nearby visitors stay. Statistics indicate that trav- bays. elers are pleased by what they have found: A view of Diamond Head from Waikiki. about 40 percent of Hawaii’s visitors make (Photo courtesy Hawaii Visitors Bureau) Just inland from the beaches are the return trips. eliminate dependence upon imported oil. islands’ beautiful green mountains, laced No tour in FEB would be complete Although the geothermal project is prom- with hiking and hunting trails amid a pro- without visiting the other Hawaiian islands. ising because the Hawaiian Islands are fusion of colorful flowers. Some of the Each island offers unique, scenic splen- volcanic cones and have great geother- staff and their families hike in the moun- dors. These wonders include the island mal energy potential, the technical, tains and camp in the many convenient of Hawaii’s Volcano National Park, where, economic, and environmental problems national, State, and municipal parks. from time to time, Madam Pele awakens still exist. For example, the project’ssuc- Hawaii’s ideal weather lends itself to to shower the countryside with glowing cess necessitates transmitting generated many outdoor activities in which the staff lava; Maui’s Haleakala Crater, the “House power from the less-populated island of participate. These include our annual golf in the Sun,” 10,000 feet about sea level Hawaii to populous Oahu, but the neces- outing on a lovely course overlooking with a magnificent view of the sunrise; sary submarine cable would operate at the ocean, the annual touch football and Kauai’s Waimea Canyon, the Grand depths (7,000 feet) and over distances “mustard bowl,” and occasional volley- Canyon of the Pacific. (150 miles) never before attempted. ball games. Last year our softball team, Mark Twain might not recognize the Otltaer Issums composed of staff members, spouses, Hawaii he knew in the 19th century, given and others competed in a city league. all the recent modernization. Neverthe- FEB has worked for most GAO divi- The team was known as the “Hapa less, his description still holds true for sions, covering issues from seafood prod- Haoles” which literally means “Half much of Hawaii. And for us in the Far uct quality to the taxation of individuals Caucasian. ” East Branch, it’s more than just para- overseas. We’ve had significant roles in Honolulu has the greatest per capita dise or a temporary residence. It‘s home. GAO reviews of refugee programs, includ- number of runnerdjoggers of any city in ing resettlement efforts, conditions at tran- the world, and throughout the year FEBers sit centers and resettlement camps, and have competed in dozens of events. Last the health of refugees resettling in the year, four of the staff finished the Hono- United States. lulu marathon. Reviewing the administration of the In addition to our get-togethers after foreign meat and poultry inspection pro- the staff’s athletic outings, we mark rota- gram gave us rare travel opportunities tions and promotions with an officewide and an unusual work environment. This celebration. Notwithstanding the substan- review aroused keen interest because tial amount of travel involved in an FEB of a recent discovery that Australian horse assignment, there are enough festivities and kangaroo meat had been substi- the year round to accommodate every- tuted for beef exported to the United one’s busy schedule. Last year‘s Christ- States. The staff spent 6 weeks in Aus- mas party was a Hawaiian luau and tralia and New Zealand, where the team Polynesian show on one of Oahu’s met with U.S. agricultural attaches and beaches. ambassadors and visited meat slaugh- Honolulu’s cosmopolitan residents cel- ter and processing plants. ebrate such holidays as Chinese New Year, Japanese Cherry Blossom Festival, St. Patrick‘s Dav. Kamehameha Dav.,. and Between the long-distance flights and Fiesta Filipina: Despite the warmer Rainbow Falls on the island of Hawaii. concentrated work schedules that are climate, Christmas trees are as much a (Photo courtesy Hawaii Visitors Bureau)

GAO Review/Wnter 1983 37 Is There A Greater Role

for GAO in Analyzjng- the a nse BM e Given the Federal est and concern. Newspaper and maga- tralized organization, important decisions zine articles, along with radio and in Washington involve budget and television discussions, reflect and focus resource allocation. Because of our this expanding public controversy. As Nation'scurrent preoccupationwith tight the number of people discussing budget budgets, deficit spending, huge increases and budgeting issues grows, their knowl- for the Department of Defense (DOD), edge increases. This increased sophisti- and across-the-board cuts almost every- cation recently appeared in debates on George E. Breen, Jr. where else, the Congress wants to know how to categorize the spending of Fed- Mr. Breen joined GAO in 1973 and is cur- if these hundreds of billions of dollars eral monies. How spending is divided rently with the Defense Budget Task Force are being wisely spent. Thus, the budget frames the argument over resource allo- His former position was executive assistant now serves as a powerful management cation and determines what issues are to Mr. Thomas D Morris, Advisor to the Comp- tool to investigate, evaluate, and control raised. troller General for Defense Matters Mr Breen spending priorities, procedures, and Recently the Comptroller General con- was GAO's 1980 representative to the results. In this regard, GAO has a splen- tributed to this national discussion by President'sExecutive Exchange Program and did opportunity to sewe the country's suggesting that the budget be resectioned served as the Special Assistant to the Direc- tor of Corporate Budget of Sterling Drug, Inc need for accurate information on this vital in terms of seven policy areas.' These Mr Breen holds an M S In operations research issue. We can meet this need only if we areas are from George Washington University and an examine our task with fresh vision and 0 investment in capital assets, both M A in mathematicsistatistics from the Uni- accept the complex challenges implicit defense and domestic, versity of Maryland His B A is in mathemat- in the Federal budget as a whole and in 0 research and development, icsfrom Boston College He IS amember and DOD's portion in particular.Accordingly, 0 aid to State and local governments, past Chapter President of Omega Rho, the we will argue that GAO can handle these 0 credit assistance, National Honor Society for Operations challenges and that, indeed, we are begin- o entitlements for individuals, Research. ning to do so already. After briefly dis- 0 interest, and cussing current congressional budgetary 0 operating expenses. concerns, we will consider the Comptrol- Each category involves large portions ler General's response. Then we will of the Federal budget and requires differ- describe the work of the Defense Bud- ent planning, financing, and management get Task Force and show how it serves approaches. GAO's mission in this area. As the Comptroller General pointed out, one could restructure the budget in Congressional Concern many ways. For example, one might use another set of categories: national Over the past few years, the Federal defense, international programs, domes- budget has so consumed congressional tic programs, and interest. These catego- attention that little remains for other legis- ries would globally indicate our budget lative matters. The most pressing bud- priorities. get issues include No matter how one resections the 0 allocation decisions, budget, a major portion of Federal spend- 0 deficit size, ing goes to defense and warrants close e off-budget spending, GAO attention. Review of the Budget 0 effectofcreditandotherspendingnot Functions reveals the National Defense readily apparent in the budget materials, Function as second only to income secu- 0 timeperiods, theirappropriateness, and rity in magnitude of spending. Donna M. Heidin the rationale for biennial budget, The 1982 CongressionalBudget Res- Ms Heivilin is manager of the Defense Bud- 0 redundancy of decisionmaking, olutions proposed a sharp reduction in to get Task Force She came GAO's Finan- 0 the decisionmaking process, Federal spending growth and a dramatic cial and General Management Studies Division 0 accountability or the lack thereof for shift in relative spending priorities from in 1974 from Department of Army Headquar- ters Prior to joining the Defense Task Force, spending, non-defense to defense programs. The she was a group director with the Program e estimation practices and underlying annual growth of Federal outlays was to Analysis Division Ms Heivilin received a B A assumptions, and be held at 5.4 percent during FY 82 to FY from the University of Minnesota and an M PA e use of the budget to install manage- 84, but the national defense share was from George Washington University She rep- ment reforms. to increase from around 24 percent in resents the American Association of Budget These issues become even more FY 81 to 31 percent in FY 84. These and Program Analysts on the National Coun- urgent given the public's increased inter- outlays rose 18 percent in FY 81 to $159.8 cil of Associations of Policy Science

3s GAO ReviewAVinter 1983 Is There A Greater Role for GAO in Analyzhg the Defense Budget?

billion. According to recent projections analysis. The first year's effort had two of life, or sustainability. The challenge of the Congressional Budget Office basic thrusts. First, we identified, devel- was in measuringwhat, if any, effect the (August, 1982), national defense outlays oped, and implemented an approach for additional funds had. will grow by 18 percent in 1982, 14 per- analyzing the effects of the proposed This problem is not unique to this spe- cent in 1983,13 percent in 1984, and 11 spending. Second, we discussed our cificfunding request, but rather pervades percent in 1985. The 1985 projection efforts with various committees to learn the entire Defense budget. DOD neither places national defense outlays at $281 how GAO could better help congressional reports nor measures its performance billion, which is 31 percent of the total budget analysis. against the justification used, unless spe- projected Federal outlays and 6.8 per- cifically requested to do so. Consequently, cent of the projected gross national prod- Assessing the Impact if voters were to demand an accounting uct (GNP), up from 5.5 percent of the in terms of how much readiness, quality projected gross. Our approach depended upon the time of life, and sustainability had improved available. Although the Task Force itself DOD could not give one. Certainly, DOD The Focus of GAO Work was not officially established until August could report that the funds had been 7,1981, its report had to be ready for the spent. In most cases, they could also As an organization, GAO's approach spring authorization markup.' Conse- say the funds had been spent along lines towards examining aspects of Federal quently, the Task Force used ongoing which should positively influence those spending has evolved from routine exami- and recently completed assignments, factors, but they could not report con- nations to its current procedures. The while its members concentrated on areas cretely on the degree of improvement. bulk of GAO's work responds to per- the divisions were not currently reviewing. In essence, the Task Force saw lim- ceived or predicted congressional needs; For its focal point, the Task Force chose ited accountability.This situation further the effectiveness of GAO's products DOD's increases since fiscal year 1980. complicatedour task, because we could depends on their congressional use. As This had two practical benefits: not fully assess the effect of additional the congressional focus shifts, so GAO e It limited the portion of the Defense funding on our overall Defense capability. has begun to shift the focus and packag- budget which the Task Force would This lack of accountability, coupled with ing of its work to help the Congress dur- examine, and the results of ongoing assignments, sug- ing the budget debates. e It provided programs which could be gested that DOD was using money as a Since the reorganization which restnrc- audited, since fiscal year 1981 would panacea for its ills. In some cases, man- tured the Defense Division along func- end midway through the evaluation. agement initiatives, not necessarily more tional lines, GAO has concentrated on Also, fiscal year 1980 is the last of the money, would probably have helped alle- programmatic reviews, often spanning post-Viet Nam Era budgets; and both the viate the problem. For example, DOD several fiscal years. Thus, the organiza- Carter and the Reagan administrations had increased its request for spare parts tion had developed expertise along had proposed increasing defense expen- to almost $7 billion. This represented a$4 selected programmatic lines. But the ditures in fiscal years 1981 and 1982. billion increase since 1980. Yet GAO Reagan administration'sstrong commit- From this perspective,the Task Force has reported that many of the spares' ment to revitalizeour defense presented selected the issues which it would shortages could be alleviated through a new challenge. Within two months after address. Basically, we followed a top- better management practices. In other taking off ice, the administration proposed down approach. During the election instances, accounts, especially those substantial additions to both the 1981 campaign, the hostage situation in Iran, which support the day-to-dayoperations and 1982 Defense budgets. This totaled coupled with the abortive rescue attempt, of the forces, are so decentralized that approximately $33 billion more than the prompted constant questions about the even the Service Headquarters may not increases which the previous administra- condition of the United States' fighting know what is actually being done. We tion had already approved. forces. Some believed that troop readi- also observed projects, such as building In light of the administration's unprece- ness and fighting capability were deterio- rehabilitations,which we believed were dented actions, the Comptroller General rating. Reagan campaigned and won on of questionable urgency and only mar- decidedthat GAO must direct more of its a commitment to change. He promised ginally associated with quality of life, resources and analysis toward the to begin the task of rearming. The $33 readiness, or sustainability. Defense budget. Accordingly, the organi- billion increases represented a first step Both the written report and committee zation had to prepare itself to comment towards fulfilling that promise. The key briefings focused on the budget. Appro- on theentire Defense budget. To address phrases used for justifying the additional priation accounts, fiscal year amounts, this need and deliver work directly appli- funding were improvingthe quality of life and line items and their amounts were cable to the budget debates, the Comp- for the soldiers, improving the readiness identified where possible. troller General formed the Defense Budget and sustainability of the forces, and mod- Task Force. ernizing the forces. We used these same criteria to assess the effect. GAO's Experience in Com- Difficulties arose almost immediately. 'Testimony of Charles A Bowsher before men% on the DOD Budget When the additional funding request was the Committee on Governmental Affairs, United being compiled, supporters quickly real- States on S 2629, the Budget Reform Act of 1982, Aug 19, 1982 The Task Force was a multidivisional ized that using the above key phrases 2For a description of Task Force members' response. Divisions and regions support- greatly improved the chances of having experiences in writing the report, see this ing the effort provided people with exten- the request approved. Consequently, issue's article entitled "Report Writing-Fun or sive experience in either personnel, much was justified because it suppos- Drudgery? Experienceson the Defense Bud- operations, investments, or budget edly helped improve readiness, quality get Task Force," by Werner Grosshans

GAO ReviewiWinter 1983 39 Is There A Greater Role for GAO in Anatyzfng the Defense Budget?

The Comptroller General received priations, and Budget Committeescover To date, the proponents of scaling down many comments encouraging him tocon- mth long- and short-term financing issues, the proposed increases lack a unified tinue this type of effort. The report itself and want information on the available platform. Even administration support- and the briefings for the Committee staffs options and their financial implications. ers question the need for continued siz- were well received. Overviews, such as But there are differences in what each able increases. Both groups are seeking theTask Force report, put individualpro- Committee considers as significant ways to reduce expenditures without grams in better perspective. Although amounts. The Budget Committee, for weakening our defense capability. Accord- many in the audience had specific areas example, deals in billions, while the other ing to the Comptroller General, this Task of interest, most welcomed a single Committees deal in hundreds of thou- Force project, together with established session, overall assessment from GAO sands and millions. reviews by the divisions, could heighten on the direction and consequences of The Task Force believes GAO could GAO’s responsivenessto the Congress. DOD spending. Understandably, some be more responsive towards addressing The Comptroller General’s commitment questions became rather detailed. And the specific budget information needs of remains unmistakably clear. Under his so we supplied the names of GAO divl- the different committees without jeopard- leadership, GAO will strengthen its capa- sional personnel who could serve these izing its independence. Meeting these bility to review DOD’s budget submis- individual interests. This is an example requirements is not a one-time effort. sions and identify programs for quick of how GAO can flexibly respond to con- Consistent with the Comptroller General’s analysis, thereby giving more help to the gressional needs. directions, the Task Force will concen- Congress during its budget review. In trate this year on supporting GAO’s FY 83 budget request, Providing Additsoanal Assis- e determining whether Congress, DOD, Mr. Bowsher identified defense as an tance to Congress Services, and Commands have suff icient area of special program empha~is.~The information to ascertain if DOD is mak- approaches and strategies being used The Comptroller General discussed ing adequate progresstoward achieving to address these questions vary from the Task Force efforts with Congressmen, its short-and long-term objectives, using the well-known GAO audit approach techniques to developing and analyzing in committee hearings, and with profes- e identifying systemic problems that sional associations. Reactions to the trend data. In one case, a GAO-DOD need correction in DOD’s planning, Joint Study is being launched. GAO’s Task Force efforts were positive, programming, and budgeting, including but the Congress wants more. They want Where this will lead GAO in analyzing developing and incorporating an execu- the Defense budget is not yet clear. Our GAO to relate informationto the way the tion feedback loop, Congress makes its budget decisions new direction will evolve as we find out 0 identifying historic DOD baselinedata what works best in GAO and concur- and noted some overlap among the dif- for major programs, missions, and ferent Congressional Committee’s needs. rently better satisfies the Congress. As accounts to help analyze current pro- the Congress uses the results of this work, Both the Appropriations and the Author- grams and assess the reasonableness izing Committees, for example, request their questions will change, and so will of out-year projected force levels and our process and the data we examine. informationrelating DOD’s performance budgeted amounts, to the current and past fiscal year’s bud- What remains is the results and account- 0 assessing management control of ability orientation. What is new is the use get allocations and the future year’s bud- outlays, and get request. They wish to know what the of the budget as the main theme. This e evaluating the effect of program theme uses the central decision process, nation bought with its defense spending instability. and what it will buy with the proposed with budgeting as a guide, in organizing budget. The Budget Committees are most and structuring the work, determining the interested in identifying long-term financ- issues, analyzing the data, organizing ing issues, available options, and finan- the reporting, and setting reporting dates. cial implications.The Authorizing, Appro-

3Testimony before the Subcommittee on Legislative Branch Appropriations. Commit- tee on Appropriations, House of Representa- tives, Mar. 9. 1982

40 GAO Review/mTinter 1983 Report Writhag-Fun or Drudgery? Experiences on the Defense Budget

During their careers, all GAO evalua- ered data very quickly, using audit infor- tors are going to be involved in writing mation that other GAO divisions dealing some type of report. How can we ap- with DOD had already obtained. With proach this particular task? That is the some added planning, we were able to key question which determines our suc- ”piggyback” on assignments already cess in the writing aspect of audits and underway. One should recognize at the evaluations. outset that normal GAO audit procedures, The key to being a good report writer, testing, and sampling techniques were and a good evaluator, is a simple one: not viable for this job; time simply did not outlook. If we approach report writing as permitthem. Therefore,the report-writing being fun-a challengethen the right phase was extremely important; the types of energy and talent are channeled quickly gathered information had to be Werner Grosshans into this very important phase of auditing. presented logically and cohesively. If, on the other hand, report writing is Our views on the major issues crystal- Mr Grosshans is the deputy director of the viewed as an undesirable chore, some- lized early in the audit; however, we gath- Procurement, Logistics and Readiness how it never gets finished on time. The ered data right to the last moment. With Division He joined GOA’S San Francisco draft gets delayed, it gets “bounced a wealth of information to be synthe- Regional Office in 1958 and became its assis- around,” and it never really manages to sized into key issues, we assigned differ- tant regional manager in 1967 He joined the ent writers to develop the separate U S Postal Service in 1970 as Assistant engender the level of enthusiasm that Regional Chief Inspector-Audit, then rejoined should exist during the audit’s writing chapters. Each writer followed a writing GAO in 1972 in the former Logistics and Com- phase. format’ designed by the task force, so munications Division Mr Grosshans held posi- In this article, I’d like to relate an inter- the individual chapters fit together quite tions of increasing responsibility in that division esting experience I had as a member of well. until being named the PLRD deputy director the Defense Budget Task Force, work- We all felt very good about the report. in 1980. He received a B A in accounting ing with the Comptroller General on a What we did not know was how the Comp- from San Jose State College in 1958 and an key writing effort in GAO. This task force troller General would react to it. What M S in business administration from George better way to find out than to give him an Washington University He also attended the could have encountered major problems 10-month residence course at the Industrial while writing its report. But the group opportunity to review the report? College of the Armed Forces Mr Grosshans remained enthusiastic and flexible, and Feedback from the is a CPA (California), a member of the Califor- the problems of report writing under tight nia Institute for CPAs, and the Northern Vir- timeframes were never insurmountable. Comptroller General ginia Chapter of the Association of Government I hope readers can relate some of our We hand-delivereda draft-hot off the Accountants experiences to their own, and thereby word processor-to Mr. Bowsher’s home make those necessary writing jobs more at about 9:00 p.m. on Friday. The report enjoyable. had involved a tremendous team effort by the evaluators and the secretarial staff, Writing Under Time not only from the task force, but also Constraids from the Procurement, Logistics and The Defense Budget Task Force, estab- Readiness Division, the Mission Analy- lished in 1981, was given a very definite sisand SystemsAcquisition Division, and charter: to assess the large increases in the Program Analysis Division. defense budgets and expenditures and By Monday morning the anxiety level to ascertain whether the Department of had reachedaclimax. The$64,000ques- Defense (DOD) was prudently using these tion was, would the Comptroller General funds. To meet its responsibilities, the be happy with the report? We did not task force had about 2 months to get have to wait too long. organized, do the proposal work, scoping, Monday morning at 9:00 a.m., I received and planning, and about 6 months to do a call from Mr. Bowsher’soffice to come the actual audit work, brief DOD and the up and meet with him. The Comptroller committees, assist the Comptroller Gen- General interrupteda meeting already in eral with testimony, and issue a final progress to discuss with Don Horan (the report. This 8-month undertaking, needless ‘In a future issue, the writer plans to dis- to say, was an enormous one. We gath- cuss aconceptual framework for report writing

GAO Review/R‘hter 1983 41 Report Writing-Fun or Drudgery?

PLRD director) and me his reaction to days to write and polish the summarv. easily it flowed. The recommendations, the report. Mr. Bowsher felt this review By the due date, however, it was appar- particularly, did not seem as awkwardly of DOD's budget was such an important ent that our alternate plan of having the phrased as some in more stylized GAO issue that he wanted to get the message editors rewrite the digest would not versions. However, we raised one into just the right format. He asked if we succeed. Time simply was not on our concern: the executive summary did not would mind trying something new in terms side. They had not worked on the audit provide the reader with an easy cross- of writing this type of report. After over- and were unfamiliar with the subject referenceto the report section.This might coming the initial shock, I naturally assured matter, and it was difficult for them to present difficulties in getting from the him that we would be happy to try some- summarize a lengthy report into aconcise, executive summary to those sections in thing new. I hope my poker-playingexpe- easy-flowing, issue-oriented executive which the reader would be most interest- rience paid off during those short mo- summary within the time allowed. Given ed. We suggested that a cross-reference ments. additional time, I am convinced that we to the pages, or at least the chapters, Finding the format the Comptroller Gen- would have gotten some very productive would be helpful. Mr. Bowsher agreed eral had in mind proved much more diffi- input from these two sources; however, and had no objections to incorporating cult than we first envisioned. Being good we were pushed against a deadline, and the cross-references. auditors, we first consulted the Office of it was a "mission impossible" task that During the remainder of that day, our Policy and the Assistant Comptroller Gen- we had asked them to do. On the other secretarial staff made final corrections eral for Policy and Program Planning, hand, Jim Morris had been making to the draft, and we met with Julius Brown, then obtained some examples of reports progress, and Monday evening, before director of Administrative and Publish- issued by the Comptroller General's for- the Comptroller General left for a meet- ing Services. He agreed to give the report mer firm and compared them with the ing in Chicago, we were able to get the top printing priority once it was signed. style and format of traditional GAO "blue- revised executive summary to Mr. Bow- We also arranged for hand-delivery of cover" reports. Next, by analyzing the sher's office. the copies to some 40 key staffers of Comptroller General's comments in the On Wednesday, Mr. Bowsher called congressional committees that had draft, we quickly discerned what con- from Chicago to give us feedback on the expressed interest in the report. cerned him: it was the report format itself. rewriting. This probably was the second On Monday, the report package was Of more concern than the substance were biggest anxiety point that we reached on delivered to Mr. Bowsher, and he signed the charge paragraphs and the redun- this assignment. We really did not know it in the morning. Julius Brown then put dancy within the digest, opening state- what to expect, but we hoped for the all other printing work on hold and had ments, and chapter captions. Mr. Bowsher best. Therefore, Mr. Bowsher's first words our report printed the same day.' questioned why we would state our con- were quite a relief. He thought the execu- AsatismExperience clusions before presenting the factual tive summary read very well. He was information, and he suggested writing particularly happy with the second part We all recognize that this is not the an executive summary in lieu of adigest. of the summary which dealt primarilywith normal routine we follow in writing GAO The definition of an executive sum- the recommendations. He still felt we reports. However, it does demonstrate mary proved somewhat elusive. Assis- could improve the first part by focusing that, once GAO staffers chart a course, tant Comptroller General John Heller more sharply on the issues and making the task is never too big for imaginative provided some sound advice and com- the side captions more descriptive. Dur- people to do. Although we had some fort to the team by pointing out that we ing our discussion, we realized that the anxious moments, the writing was a lot had the green light to experiment, and issues he liked best were those we had of fun and one of the most memorable we should not be concerned with GAO illustratedwith agood example. Iassured phases of this review. The entire task Report Manual requirementsfor this par- Mr. Bowsherthatwe would get the remain- force felt very good about the exercise, ticular job. Mr. Heller also suggested we der of the report, as well as the executive and we were particularly pleased with give the report to two top-notch editors summary, repitched along the lines we the interaction and prompt feedback we and let them, as independent writers, felt would be more acceptable to him. received from the Comptroller General. handle the executive summary. At the The team quickly beefed up the execu- In my opinion, this type of communica- same time, Jim Morris, our mainstay in tive summary and made appropriate tion is one of the key elements in a satis- this reporting phase, tried his own hand changes to the report's style. The entire fying report-writing experience. All of us at rewriting the digest into an executive package was typed in final by Thursday are anxious to please the boss and don't summary. evening, and again we hand-carriedit to mind making changes when we know On Thursday, 4 days after receiving Mr. Bowsher's home so that he could what is wanted and why.3 the Comptroller General's feedback, John review it upon his return from Chicago. I hope your next report-writing effort Heller and I met with Mr. Bowsher. Our The next morning, Jim Morris, Don will be as memorable for you as this one purpose was to discuss his expectations Horan, and I met with the Comptroller was for me. and, to the extent possible,chartacourse General to discuss the additional changes of action that would get the report to the he might want. Although there were a committee within the desired timeframe. few minor points to be cleared up, Mr. The meeting was very helpful and clari- Bowsher was happy with the report and 'Report is available from GAO's Document fied some of the concerns Mr. Bowsher was pleased with what had been accom- Distribution Section, Room 1518, (202) 275- plished. At this stage, Jim Morris and I 6241 Tltle "Defense Budget Increases How had. We resolved the major issues dur- Well Are They Planned and Spent?" (PLRD - ing the meeting and agreed that the writ- felt very relieved. 82 - 62, Apr 13, 1982) ing experiment should proceed. We Mr. Bowsher asked us how we felt 3This report is just one style GAO has tried; agreed that an executive summary should about the writing exercise and the new currently a Task Force on Report Processing be in the Comptroller General's hands style. We assured him that we liked the is studying the changes GAO should con- by the following Monday, leaving us 4 format and were quite surprised at how sider in making its reports more readable

42 GAO ReVlewiWhter 1983 A Week’s Worth

MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY

Mumday purchase order. After several more phone calls, I decided to finish the matter the Monday seems like a slow day for me, next day. at least for the first hour. Being a working Another document-connected request mother and wife, I find myself working came when Mr. Fitzgerald, OCR’sdirector, just as hard on weekends as on week- asked me to get him the December 1979 days. Today I feel like “back to work issue of fortune magazine. I called the heRucker again, and I didn’t get any rest!” A cup of Technical Library to order it but did not coffee gets me started. know for which week. Mr. Fitzgerald had In the Office of Congressional Rela- assumed that fortune was a monthly, Mrs Rucker IS secretary to the director, Office but he did have a general idea about the of Congressional Relations She joined GAO tions (OCR), the telephone rings con- in 1969 and has worked in OAS, AFMD, and stantly with calls from congressional staff article’s subject. Thus, I ordered it by most recently, PAD She has receivedseveral and from all GAO divisions and offices. subject and went back to my administra- division awards for outstanding service and The most frequent question that our sec- tive tasks. Right after that, Senator a Comptroller General’s Meritorious Service retarial and administrative staffs handle Sasser’s office called for six copies of Award concerns the status of jobs requested by our report on the Clinch River Breeder Congress. We also process numerous Reactor. The Senate Veterans Affairs requests for copies of GAO reports. Some Committee office called for a copy of typical calls follow: GAO’s monthly list of reports issued in Senator Nickles’ staff inquired about April and requested that they be added an article in The Washington Post. The to our mailing list for it. Senator had read GAO’s recommenda- tions concerning a study of Nazi involve- aesday ment in World War II and wanted to know if the Post had quoted GAO correctly. I will have to get busy right away this The first thing I thought was, “How am I morning. I arrived at work about 7:15, going to find that article quickly and com- and sure enough, Mr. Fitzgeraldleft four pare it with the report‘s recommenda- notes for me to call the divisions and tions while I put this caller on hold?” follow up on a few outgoing congres- Instead of trying that, I offered to send sionals. We usually have a staff meeting him a copy of the report, but he said, every Tuesday when all the legislative “No, I wanted only to confirm the advisers get togetherto discuss congres- statement.” And so, very professionally, sional requests and other important I asked if he would give me the date of issues. Each adviser is assigned certain the article and I would get back to him congressional committees with which they with some answers. I tracked the article coordinate GAO’s work. Because Mr. Fitz- to a GGD report and asked the evaluator- gerald is in Denver giving a speech on in-charge to give the man a call. “Congressional Oversight: The Role of Later in the day, I received a call from the General Accounting Off ice,’‘ at a con- the Congressional Quarterly office to ference sponsored by the Office of Per- request payment of a bill for the Weekly sonnel Management, we don’t have our Congressional Monitor, a document we meeting today. use quite often in our office. This bill was Getting right to my list of things to do, I paid sometime in 1981, according to called PLRD for a copy of a congres- GAO’s Procurement Section. The Con- sional contact memo confirming an agree- gressionalQuarterly caller wanted a copy ment with Chairman Addabbo’s staff to of the canceled check, front and back. I put a IO-day restriction on one of our called Administrative Finance to request reports. Division staffs prepare contact it and was referred to Procurement for a memos whenever they meet or talk with

GAO Review/Winter 1983 43 AWeek’s Worth

congressional staffs to share important employees. When I arrived at Personnel these contacts cross my desk at one information. I found that there was no and introduced myself, I was surprised time or another, and a positive letter contact memo stating such an agreement, to learn that the receptionist there had makes my job both interesting and but an oral agreement had been made. I never heard of our office. With so many rewarding. advised PLRD that they would have to sections within GAO, though, I’m sure it I just received a call from Kim Barret in call Chairman Addabbo’s staff and docu- takes a while for newer employees to Congressman Marlenee’s District Office. ment the agreement for the restriction become familiar with all of them. So I She stated that the congressman had before OCR could sign off on Form 1 15, took a few minutes to explain how OCR written a letter to the Comptroller Gen- the form which approves report distribu- coordinates GAO’s activities with the eral in July, but he had not received any tion. Then I spoke with a group director Congress. The receptionistthen explained response from GAO. The letter concerned in AFMD about another report. The the official procedure I had to use to an allegation of fraud reported by an report’s transmittal letter stated that a check out the folder I had requested. anonymous constituent. I told Ms. Barret copy was being provided to the Speaker Later in the morning, after more con- that I would have to do some research of the House, yet this fact was not indi- gressional calls, I met with a Procure- and call her back. This really puzzled me cated on the Form 115. We took care of ment Branch staffer to find out whether because we always acknowledge a let- that with a handwritteninsert on our sep- the payment of the Weekly Congressional ter, either in writing or orally. It took me a arate copies of the Form 1 15. Monitor had ever been processed. We while to get all the information together Late in the day, Congresswoman were still receiving billing letters for it, to call her back. The first thing I did was Oakar’s office called to ask if we had a and there was no record of payment at check the list for incoming congressionals. recent GAO report on railroad retirement the Quarterly office. Surely, if he could I then checked some other sources and disability. Since that topic is handled by locate GAO’s records, things would move discovered that, yes, we had received HRD, I called the Social Security Admin- right along! the letter, but we had sent our acknowl- istrationaudit site in Baltimoreto find out By this time of the day, all the morning edgement to the congressman’s main what they had done lately on this subject. mail had been sorted among the legisla- office since the request did not state that As it turned out, an HRD associate direc- tive advisers. I decided to log in the con- it came from the District Office. I con- tor had testified on the subject the day gressional requests so that Mr. Fitzgerald tacted Ms. Barret and explainedthe mixup. before. Ms. Oakar’s staffer was sure that could sign off on them. This morning I As I hang up, I hear my boss dictating a copy of the statement would be assigned seven cases, including one from something. Unless it’s a rush job, I’ll let it sufficient. I put a copy in the mail and felt Chairwoman Oakar requesting GAO to wait until tomorrow. It’s now time for me good that so many matters were being testify on the Pay Continuity Act and one to leave for home, and believe me, today resolved today. from Chairman Ford asking GAO to exam- I welcome quitting time. One of my ongoing projects has ine the justification for one Federal involved writing a justification for OCR’s agency’s staffing and budget restrictions. Thursday 1983 administrative staff levels. Estimates For each of these I typed up a control of staff needs are due to the Office of case-activity record and prepared ack- Program Planning tomorrow, and Mr. Fitz- nowledgement letters to each of the This is timecards day. Even though is I gerald had asked if 1 would prepare that requesters. That took the rest of the after- my vacation just around the corner, section of the memo. With so many tele- noon because each letter needed two was very tempted to take annual leave phone and written requests from the Hill, copies for our files and about seven to today. we need extra help in the administrative be distributed among the divisions, other I started on the timecards around 8:OO area. We also requested a temporary interested parties, and GAO’s Index and a.m. so that I could turn them in by late clerk-typist to assist the congressional Files Section, whose staff creates a list afternoon. Although I have only 15 time- correspondence assistant, who receives of incoming congressional correspon- cards to do, I know from experience that all our congressional mail, distributes it dence. it takes time to get the legislative advis- to the appropriate advisers, and reviews A nice relief from all the daily mail, ers to sign for leave taken. The advisers much of the final copy of our letters and phone calls, and administrative duties in are usually on the Hill or doing business reports to the Congress. I drafted my ouroffice is an occasional letterof thanks. away from the office about half the time. response and attached a copy of our In today’s mail was acommendationfrom Also, I know I’ll have to leave the time- recent workload statistics for Mr. Fitz- Senator Addabbo, Chairman of the Sub- cards to answer the telephone and do gerald’s review when he returns from committee on Defense, House Commit- some quick research projects. Denver. Tomorrow, he’ll find that on the tee on Appropriations, thanking GAO for I received a call from a private firm top of his “to do” list. our assistance on reviews of Defense asking if we had done any work related Department programs during the past to a recent Mississippi River flood. Right Wednesday year. Another commendation letter we afterthat, I received an inquiryfrom Sen- received was from Representative Cardis ator Eagleton’s staff about the status of Collins, Chairwoman of the Manpower a job he requested only a week ago. 1’11 Today starts out slowly, but I’m sure it and Housing Subcommitteeof the House never finish the timecards! I asked my will pick up. After a quiet evening at home Committee on Government Operations. coworker, Kim Bussey, to answer the with my husband, son, and daughter, I I recalled this one especially because it phone if it rings again. We share the felt a little less rushed this morning. I appeared in the GAO Management News workload and often handle similar start a list of things to do that were post- and stressed how well GAO staff met requests. poned by all those congressional calls. tight deadlines to testify at hearings on My first task was to ask Personnelto get the Railroad Retirement Board. Most of See WEEK, p. 50. an official personnelfolder for one of our

44 GAO Reviewmhter 1983 Bookmark

and will not provide. They point out that the financial audit’s primary focus is to laboris nisi ut ah quip ex ea comn lodo consequel LISautern est determine the fairness of and to render irure dolor on reE rehendent ~nYOI ~ptatevelit esse molesraie conre illum dolore e4 f 13iat nulla pariat ~r At vero eor accusamet iustr an opinion on the organization’s finan- digntssum quin landti est praesc nt luptatum ael enit aigue duo cial statements. The financial review rnolestias excep leur s!nl occae 3: cupidatat nor I prowdent sm mollit anim id ’st laborum et serves as the foundation for most gov- sun? In culpa a I offma deserun Et harumd de Jd tacllls est er expedil disttncf Nam liber tern ernment audit agencies. Expanded scope soluta nobis rlii lend optio cong ue nihil impf doming id quc auditing, on the other hand, concentrates soluia nobiselig ent oplio est cor que nihil imped it doming id quo Lorem ipsurn do lor sit amet c .ectetur adipisci igelit sed diarn on how an organization’s resources are eiusmod tempo, inctdunt ut labc ,re et dolore ma 3na aliquam lostrud exercif lion ullamcorpor used and determines whetherthe objec- Ut enim ad min rn veniam quis I laboris nisi ut a‘ quip ex ea comr nodo consequa Duis autern YE tives established by the legislature or uptate velil esse molestaie cons5 irure dolor in re rehenderil in YO other authorizing body are being met. illumdoloreeul igiat nulla pari ur At vero eo5 e ’accusam et ius! dignissurn qui b landit praesent uptatum deleni aigue duos do The authors recognize the Standards molestias exce teur sin1 OCCae‘ at cupIdala1 no! 1 provident. SI forAudit of Governmental Organizations, t mollit anim id stlaborum et a sunt in culpa qu I offlcla deserLn Et harumd derm id factlis est er xpedit dktinct Nam liber ternpc Programs, Activities and Functions (the “yellow book”) issued by the Comptrol- ler General as a landmark for govern- ment sector auditing. Part two presents an overview of per- formance auditing (economy and effi- ciency and effectivenesss) and uses real case studies to demonstrate results. The Auditing Performance in shows government managers and admin- authors point out that economy and effi- Government: Concepts and istrators the benefits of performance ciency auditing focuses on the relation- Cases. reviews in achieving program objectives ship between resource inputs and product and improving performance. or service outputs. More specifically, this auditing examines the economy and eff i- By Richard E. Brown, Meredith Using actual case materials taken from ciency with which the government entity C. Williams, and Thomas P. Gal- local, State, and Federal government acquires, manages, and uses resources. lagher. John U7iley& Sons, Inc., programs, the book illustrates how to The authors stress reviewing for econ- 1982. conduct successful, expanded scope omy and efficiency together since an entity audits and introduces key audit concepts. could operate economically but ineffi- Performance auditing has attained The major topics covered include the ciently or efficiently but uneconomically. greater importance with the growth of differences between expanded scope For example, an entity might acquire fuel government in the last two decades. Dur- audits and traditional financial audits, oil to heat its buildings at a very attrac- ing the 1960’s and 1970’s,both the num- results obtained from the expanded audit, tive price but have such an inefficient ber and dollar amounts of government the strengths and weaknesses of spe- system of internal controls that a large programs increased substantially. Cou- cialized auditing and analytical techniques, portion of the fuel is wasted or otherwise pled with this growth are recent events the management of the expanded audits, lost before it is used. of declining revenues, fiscal crises, and the auditor’s relationship to the media The book indicates that effectiveness cutbacks in certain government programs. and the client, and the implementation of auditing measures the value of the out- As a result, public officials, legislators, recommendations of the expanded audit. put of government services or the value and private citizens are demanding Cases based on real audits also illus- of the results* of government actions. greater accountability, asking not only trate how expanded scope audits are According to the authors, the beneficiar- whether government funds are handled useful in helping government managers ies of effectiveness auditing are the gov- properly but also whether programs are achieve public goals and objectives. Guid- ernment entity itself, the recipient of the achieving their objectives. Government ance for the manager, not usually empha- product or service, and society as a whole. auditing has become an important ele- sized in such publications, appears The third part of the book examines ment of this accountability function, espe- probably because of ihe authors’ consid- many specialized audit techniques and cially for evaluating whether operations erable background and experience. All methodologies of performance auditing, are conducted economically, efficiently, three have done expanded scope audit- including their advantages and disad- and effectively. ing, and their vocations are diversmne vantages. Real case studies demonstrate Not enough literature is available on is in public administration and economics, the application of these techniques and government auditing. This book helpsfill another in law, and the third in accounting. methodologies and discuss their careful that void and is one of the first to offer The book is divided into five parts. The selection as a crucial responsibility of guidance for reviewing the performance first discusses the emergence of perfor- the auditor. The authors point out that of thegovernment manager. The authors mance auditing and the limitations of finan- with expanded scope auditing comes a define performance auditing as going cial auditing. The authors do not suggest responsibility to be fair, accurate, and beyond the scope of the traditional finan- that financial auditing is not needed but complete;to maintain a high level of staff cial audit to include economy, efficiency, instead discuss what the financial audit, quality and training; and to use well- and effectiveness auditing. The bookalso as well as the expanded scope audit, will reasoned reporting.

GAO Reviewlwinter 1983 Bookmark

The discussion in part four, managing Government Oversight and Not surprisingly, this process sounds the performance audit process, is again Evaluability Assessment. like many GAO assignments. Nay, in supplemented by acase study. In addition, By Joe Nay Peggy Kay. fact, has often consulted for GAO and and praises the agency for practicing EA.. the authors draw heavily on the Comp- Lexington Books, 1982. troller General’s audit standards. This The book has four sections. While the first two sections give an overview of part also describes the unique relation- When I started reading Oversight and ships of the government sector auditor evaluation purposes and principles and Evaluability Assessment, I also began explain formal models and measurement with the news media, special inteiest Robert Pirsig’s pop philosophy classic, groups, and others. process through a simple example, the Zen and the Art of Motorcycle Mainte- last two discuss EA’s information sources In this part, the authors compare audit- nance (Bantam Books, 1974). I soon ing in the public sector to walking a and then elaborate on EA’s model build- noted a common theme in these very ing approach. tightrope, with standards serving as the different books. Pirsig recounts a motor- balancing rod. Standards will not pre- Although the general EA approach is cycle trip that ended abruptly when his familiar to GAO, the modeling steps are vent a fall but will make it less likely to motorcycle died during a torrential rain. occur. less well known. The authors develop a Attributing the bike’s failure to the rain, series of models, whose first set, the One should remember, the authors he methodically checked all rain-related testable models, comes from statements suggest, that the auditor problems. Finding nothing wrong, he by those in charge. This set includes (1) 0 is not a detective or spy, nor a detec- unhappily hitchhiked home to return with a testable logic model, a series of if-then tor of fraud (although some now ques- a trailer and haul the motorcycle back. statements outlining the operations; and tion the latter notion); Only upon examining the motorcycle at (2) a testable functional model, a flow e cannot obtain needed data without home did he see that the gas tank was and function diagram detailing program client cooperation; empty. The moral of the story: don’t operations. The next model, the equiva- 0 must, by establishing good relation- assume the basics: check them out. lency functional model, depicts the struc- ships and instillingconfidence, persuade In a rather different context, Joe Nay tures and flows of the operating system those audited to adopt needed changes; and Peggy Kay advocate evaluability as observed by the evaluators. 0 must be sensitive to the economic suc- assessment (EA) as the way to check The next step reconciles differences cess of the client, regarding the audit as the basics. After citing a home weatheri- between the models based on statements a cooperative venture with management: zation program in which the carpenter of those in charge and the equivalency and had to spend a large portion of his time functional model of actual observation. If e should not approach the client as an filling out forms, they summarize EA’s these differences prove irreconcilable, adversary. purpose. These EA procedures presup- then the program is judged unevaluable. pose that government “must know what As Joe Nay said in an interview about The book’s last part looks at three the problem being attacked is, how the the book, when expectations (the testa- issues concerning performance audits. problem can be handled, and how the ble model) and reality (the equivalency Are audit reports used and are their rec- suggested problem operates in practice model) are sharply different, GAO evalua- ommendations implemented? What fac- not what someone thinks the problem is, tors may have produced “a significant tors influence utilization and to what claims will cure it, or how someone thinks finding.” If the models coincide, an degree can these factors be controlled? the program is operating or intended to evaluable model consisting of question Is performance auditing cost effective? operate. If the carpenters are spending and associated measures is developed The authors had no definite answers most of their time typing, it is a sure bet as the foundation of the final evaluation because they felt that performance audit- that the houses will not get weatherized, design. ing is too new to judge. They asserted, and it is silly to spend money to discover One should perhaps distinguish bet- however, that performance auditing will that the people in them are still cold” (p. ween EA as a philosophy and as a for- survive and ultimately thrive, thus fulfill- xix) . mal process. Philosophically, EA is a ing a crucial and logical role in public common sense way of uncovering a sector management. They nevertheless First developed in the early 1970’s as system’s rhetoric, analyzing it in light of cautioned that the performance audit, an initial phase in large scale impact actual performance, and concluding from requiring varied and nontraditional skills, studies, EA can be an end in itself when that data whether to stop or continue. is never likely to neatly fit the model of one seeks to understand how a program The formal process incorporatesthe EA traditional financial auditing. operates. EA formalizes the process of philosophy and emphasizes formalized learning about a program and compar- modeling. Although properly developed ing rhetoric with actual performance. The Easy to read, the book’s use of actual models could undoubtedly minimize incor- process includes a system to collect rect decisions, one pays a price. Train- cases makes its informationvery acces- information, a series of modeling steps to ing in the formal EA process ideally entails sible. It should be useful to educators, organize and analyze the data, and a set a year long apprenticeship with an EA students, and government managers and of rulestodecidewhen to stopor continue. specialist. The authors also tell about auditors. I would recommend the book Thus, EA involves (1) talking to person- to anyone interested in the economy, developing an equivalency diagram of nel at various levels of authority, (2) learn- the Baltimore criminal justice system that efficiency, and effectiveness of govern- ing program operations firsthand, (3) was 22 feet long and took four months to ment operations. comparing these firsthand opinions with W. A. Broadus, Jr. the statements of those in charge, and Accounting and Financial (4) assessing repeatedly the need for See BOOKMARK, p. 50. Management Division additional information.

46 GAO Review/Whter 1983 Legislative mcents 49acsst4

Judith Hatter SmdBushess hJRQVZ!&iom Development Ad of 198%

Public Law 97-219, July 22, 1982, 96 Stat. 217, has as its purpose to strengthen the role of the small, innova- tive firms in federally funded research and development. The law also provides for utilization of Federal research and development as a base for technological innovation to meet agency needs and to contribute to the growth and strength of the Nation’s economy. Not more than 5 years after the enact- ment date, the Comptroller General is required to report to Congress on the implementation of, and nature of research States Government Comptrollers in ferees recognize the importance of an conducted under this act. American Samoa, Guam, the Northern independent assessment of the findings Mariana Islands, the Virgin Islands, and and conclusions contained in these unit Title SI, Udkd S&at.es the Trust Territory of the Pacific Islands, cost reports. The Comptroller General Code Senator Lowell P. Weicker of Connecti- can expect to receive direction from the cut introduced GAO-drafted legislation, Armed Services Committees of the Sen- On August 9, under suspension of the S. 2633. The legislation would imple- ate and the House of Representativesto rules, the House of Representatives ment the GAO report’s recommendation provide the type of review, analysis and passed H.R. 6128 to revise and codify to transfer audit authority and related recommendations outlined in section Title 31 of the United States Code, “Money staff of these government comptrollers’ 1 138 of the Senate bill. and Finance.” This title contains laws offices to the Office of Inspector General, relating to the functions and jurisdiction Department of the Interior. Dah om Geographic of the General Accounting Office. Distdbueorn of Federal Subsequently, on August 20, the Sen- GAOhsessmemt of Udt hds ate Judiciary Committee was discharged @kDStGXWRd.h %eeIpQdS from further consideration of the legisla- On July 29, the Senate passed S. 2386 tion, and the bill passed the Senate. with an amendment in the nature of a (Public Law 97-258, September 13, The conference report on the DOD substitute. The legislationwould provide 1982) Authorization for fiscal year 1983 (H. Rept. for the establishment of a system to col- No. 97 - 749) states that lect data on the geographic distribution FdedAmditFwtiCttoms conferees strongly believe the Comp- of Federal funds. troller General should be prepared to The legislation requires the Comptrol- hthe Temitories review and analyze DOL3 reports on unit ler General, in consultation with the Con- cost growth in major defense acquisi- As the result of a March 25, 1982, tion programs promptlyafter these reports GAO report on thefunctionsofthe United are submitted to the Congress. The con- See Data, p. 51.

GAO ReviewhVinter 1983 47 Diaiic E. Grant

Since Th Staff Bulletin st ~ PPed appearing in March 1960 and the GAO Review was not published until the win- ter of 1966, here is an interesting item taken from the 1963 November issue of the Watchdog:

Ten years aao, in the winter 1973 issue @ Bill Thurman. Soecial Assistant to th of the GAO &view and the winter edi- Assistant Comptroller Gene& for Ope- tions of the Watchdog,you will find that: rations, participated in workshops on 8 William J. Anderson, director, GGD, implementation of the recently enacted was designated assistant director in the revenue-sharingprogram, October 1972. General Government Division responsi- Q A major study directed by the Compre- ble for audit of operations of the US. hensive Health Manpower Training Act Postal Service, effective Aug. 23. 1972. of 1971 was completed and issued on John D. Heller, Assistant Comptroller November 20, 1972, on health facilities General, was designated as associate construction costs. director in the Manpower and Welfare Division responsible for reviews of health 8 The Monthly List of GAO Reports was activities operated and funded by the initiated as required by section 234 of Federal Government, effective Aug. 20, the Legislative Reorganization Act of 1972. 1970. Each month, the Comptroller Gen- e Morton E. Henig, senior associate eral will send to the Congress, its director, Human Resources Division, was committees, and its Members a list of designated an associate director in the GAO reports issued or released during Manpower and Welfare Division in the the previous month. This list will help areas of education and manpower committees and Members keep informed GAO Tennis Champ: Frank T. Davis, training, effective Aug. 20, 1972. about GAO reports and will also serve freight rate assistant, Transportation e Roger L. Sperry, group director, GGD, as a ready reference to reports issued. Division, scored 16 wins and no was designated legislative adviser in the Each list will show the title of the report, defeats in the Government Departmen- Office of Legislative Liaison, effective date of issuance, and file number and tal Tennis League in the past year. Mr. October 15, 1972. will identify the Government agencies or Davis has a won-loss record of 65-1 @ Milton J. Socolar, special assistant to other organizations responsible for the after 5 years of representingthe GAO the Comptroller General, then deputy gen- activities reported on. Employees Association. This gradu- eral counsel, spoke before American Uni- ate of Armstrong High was a four- versity law students on the functions of letter man in baseball, football, track, GAO and the Office of the General and tennis. Counsel, September 14.

48 GAQ Review/Winter 1983 coordinates the Review’s feature enti- ate bill, the subcommittee chairman’s bill LOCA TI0N, from p. 7 cont tled “Manager’s Corner.” was unanimously reported out of the subcommittee. Ed. Note: The Review would like to When the bill reached the full commit- thank Laura Kopelson, editor of the GAO tee, it was soundly defeated by a 3240-7 Management News, for her special assis- vote. This meant that House passage of tance with the contents of this edition’s the Senate bill was almost assured. “Health Yourself to Wellness” was the “On Location” and “GAO Staff Changes.” However, 5 hours of emotional debate theme on October 26 and 27,1982, when - before the Committee of the Whole House GAO’s Health Unit sponsored over 20 produced the unexpected. organizations and activities to encour- TOPICS, cont. from p. 13. age health awareness. The groups pre- The applicable House resolution read senting lectures or displays in GAO Kidder, L.H. Research Methods in like an old Washington Star “Gobbledy- conference rooms and corridors included Social Relations, Fourth Edition. Hol gook’ column. It permitted consideration the American Cancer Society, the Ameri- Rinehart and Winston, 1981. An of (1) an amendment in the nature of a can Diabetes Association, the D.C. Lung excellent and most readable introduc- substitute recommended by the Commit- Association, and the Podiatry Society of tion to design, measurement, and data tee on Banking, Finance and Urban Affairs D.C. In addition, several mobile health analysis. The emphasis is on causal printed in the Senate bill as an original vans, outside health clinics, and safety interpretations. bill forthe purposeof amendment, (2) an and fitness groups participated. Pedhazur, E. J. Multiple Regression amendment to the said substitute offered The Health Unit,officially titled the Pub- in Behavioral Research: Explanation by the committee chairman, and (3)an lic Health Service Division of Federal and Prediction,Second Edition. Holt, amendment in the nature of a substitute Employee Occupation Health) invited all Rinehart and Winston, 1982. A broad to said substituteoffered by the subcom- building employees from GAO and the treatment of regression analysis, mittee chairman. Commenting on this Departments of Transportation and Labor including analysis of variance, analy- anomalous procedure, the subcommit- to attend the free health seminars and ses of covariance, path analysis, and tee’s ranking minority member said, “We exercise demonstrations. Interested staff LISREL. An intermediate-leveltext. are doing something differently than we could sign up for foot examinations or U.S. General Accounting Office. Causal have ever done before. We are debating blood tests, obtain a computerized nutri- Analysis: A Method to Identify and two pieces of legislation.” tion analysis and diet counseling, or Test Cause and Effect Relationships And debate they did. Noting Occiden- donate old eyeglasses or contact lenses in Program Evaluations. U.S. Gen- tal Petroleum’s involvement in the mar- to the Lions Club. eral Accounting Office, 1982. An keting consortium, the subcommittee Mrs. Mabel Bryant, R.N., this year’s introduction to the analysis of causal chairman referred to the Senate bill as coordinator, noted that the third annual relations by path analysis. Includes the “Occidental Relief Act.” The Olym- fair was the largest ever planned by the step-by-step procedures. pic Committees were accused of having Health Unit. She encouraged Review their minds “brainwashed with financial readers to learn more about the unit’s Gatorade,” and Occidental’s chairman was likened to Goldfinger poised to hit services by visiting it at any time in room COINS, cont. from p. 15. 1455. Fort Knox for $260 million in gold and to the Olympic committees. Future US. silver. Not to be outdone, a proponent Olympianscameto Washington to lobby for the Senate bill observed that, “If you’ve for enactment of the Senate-passedbill. got the facts, you pound the facts. If Moreover, Olympic gold-medalwinners, you’ve got the law, you pound the law. If such as Wilma Rudolph, Donna de you don’t have either, you pound the Varona, Bob Mathias, the Reverend Bob table.” He reported hearing a great deal After 2 years in the Georgetown sec- Richards, and John Naber, together with of table pounding “in utter disregard of tion of Washington, the Management LAOOC and USOC officials, testified in the facts.” Development Center (MDC) has moved favor of the Senate bill. The Administra- In the end, the House passed the sub- to the seventh floor of the Judiciary Plaza tion backed the bill, and its promoters committee chairman’s bill by a vote of Building, 450 5th Street, N.W.-across hired five lobbyingorganizations to push 302 to 84. GAO testimony substantially from the GAO Headquarters. it. Even a Sports //lustrated article lam- contributedto this strong vote: GAO was Since September 1980, the Office of basted the House subcommittee chair- cited 13 times, and our testimony and Organization and Human Development‘s man for stonewalling and concluded that, congressional letters were quoted verba- MDC has hosted more than 125 training if the marketing consortium withdrew, tim and excerptedfor the Congressional courses in supervision, management, and ‘the Los Angeles Games could be in Record. Even during the debate, one leadership, as well as many divisional serious trouble.” congressman asked our help in solidify- staff meetings, midpoint conferences, and ing and clarifying his view, which he later other activities. bMSemoor H)dBab expounded to his colleagues. According to OOHD director Tom Makes Legislative Passage of the House bill brought some Franklin, the new MDC will provide four surprising changes. Subsequent hear- large classrooms and a new manage- History ings before the Senate Committee on ment library. The MDC staff includes Cindy Banking, Housing and Urban Affairs found Clark, Marly Herrin, Sande Lehrer, Janice Finally, the House subcommittee acted. the Treasurer of the United States as Raynor, and Kathy Karlson, who also 3ut despite intense lobbyingforthe Sen- See COINS, p. 50.

GAO ReviewNinter 1983 49 COINS, cont from p. 49. well as LAOOC and USOC officials sup- regular transit service in terms of the use the regulartransit service. However, porting the Treasury-run program. days of the week and number of hours a in these days of tight budgets, this is At those hearings,we addressed prob- day it was available and the geographic unlikely. lems associated with past Treasury-run area it served. While the information There has been progress in improving coinage programs as well as factors, showedthat the paratransitservices gen- services to the elderly and handicapped which, if combined into marketing strategy, erally operated fewer hours a day than since the 1970 legislation, but most cit- could stimulate public demand. The thetransitservices,theyusuallyprovided ies do not yet offer either fully accessible House-passed bill resolved many of these service on as many or more days a week regular transit or comparable special- factors, and Treasury’s marketing and and covered the same or a larger geo- ized service. The issue isstill controversial, merchandisingproposal should provide graphic area. We found, however, that and it remains to be seen whether fur- an economical, accessible, and simpli- each service would have to be exam- ther progress will be made under the fied channel of distribution. ined in more depth to get a clearer pic- current administration’s policies and On July 1,1982, the Senate concurred ture of its adequacy. For example, a bus today’s economic conditions. with the House bill. On July22,1982, the system may operate a skeleton service Olympic CommemorativeCoin Act, Pub- on certain key routes between midnight SHADOW, cont. from p. 31. lic Law 97 - 220, was signed by the and 6 a.m. It would, therefore, show that President. So if you should feel an out- paratransit was operated fewer hours These revisions principally consist of an pouring of patriotism and pride as the per day than the transit, but it would not evolving refinement of the differentiation 1984 Summer Olympic Games approach show whether anyone needed paratransit between shadowing as an assignment and want to help finance the Games and duringthoseperiodswhen itwas unavail- versus shadowing as an activity-ver U.S. amateur athletics, don’t hesitate to able. time, more emphasis has been placed buy a coin. The and the Most systems operating paratransit sys- on shadowing as an activity within a will split $1 Ofor every silver coin and $50 tems indicated that they had made no broader scoped assignment. forevery gold coin sold. Just remember- changes in their service since the regula- In terms of my developmental plan, they’re not tax deductible. tions were changed, and few changes this assignment exceeded my expecta- tions, and I certainly will remember it as were planned in the next year. A number of systems, however, indicated uncer- a, if not the, highlight in my career.

Many members of the Far East Branch con- tributed to this article We are grateful for their enthusiastic cooperation

BOOKMARK, cont from p. 46. create. The procedure fails, of course, when formal modeling exceeds what the evaluation requires. What does GovernmentOversight and Evaluability Assessment offer GAO evaluators? First, it reminds us of the basics: talk to those in charge, see for yourself,andcompare. Second, although the formal modeling approach may not be readilyadoptableordesirableforGA0 work, its principles and its simpler forms and applications may help organize infor- mation in many GAO evaluation situations. Written with style and wit, this book pre- supposes no formal training in statistics, modeling or policy analysis. Laurie E. Ekstrand Institute for Program Evaluation

WEEK, cont. from p. 44. After doing about half the timecards, I realized we had a holiday this pay period. I had to go back and make corrections. They were finally done at about the time Mr. Hagenstad returned from a meeting

cont. next column

50 GAO ReviewAVinter 1983 . on the Hill to say he is canceling his national Trade Commission. Icalled back equirements and procedures considered leave tomorrow. Two other people called and told the requester that we needed 3ppropriate by the Comptroller General. in sick, but they decided to come in at more information before we could re- 11 :00 a.m. With all the white-out I use on search his report. Elaims Collectiom timecard corrections, I suppose I could paint a small wall. Why did Iever call him back? Immedi- ately he said, “Now let me get this straight. On August 16, Senator Henry Jack- The schedule of future congressional You all did the report, and you are calling ;on of Washington introduced S. 2842, hearings must be typed by 3:OO p.m. me for more information?” I was never i bill which has been recommended to every Thursday. I got the list back only more shocked since coming to work at he Congress by the General Account- yesterday, so I must type it quickly and GAO. This man literally cursed out both ng Office which would authorize agency distribute the copies. me and the agency. I let him finish and leads to grant equitable waivers in the Mr. Socolar’s office called to say that then, very calmly, asked him again if he :ompromise and collection of Federal he cannot meet with the OCR advisors could tell me a little more about the report. :/aims involving inadvertent overpay- until 3:30 this afternoon. I notify the advis- He put me on hold, did a little research nents of travel and transportation ers of the change, then catch up on the himself, got backon the phone and gave ?xpenses.Current law permits agency filing until it is time to go home. me the subject as well as the report 7eads to waive claims for overpayments number, stating that he needed 20 cop- nvolving pay and allowances. My bill Friday ies right away. He said he would appreci- vould simply expand that authority to ate it if we would be a little more prompt nclude waivers for travel and transpor- I arrived at the office around 7 a.m., a in sending out our reports. Then he asked ation expenses. little early this morning because the traf- me again for my name and toid me he Mybill would also increasethe amount fic was extremely light. A lot of people would be looking for his reports the next )f claims which could be waived from must be flexing or on leave. Right away, day, and if he didn’t get them, he would he existing level of no more than $500 I received a few calls from divisions to be calling me back. Itold him it was quite Ier claim to no more than $5,000 per confirm that the weekly OCR meeting all right to call me back tomorrow and :/aim.’ * *’ will take place. any other time he would like a copy of a Around 7:30, the Budget Off ice called report. It’s a call like this one that gives IImdgratiom Reform to say that Mr. Socolar had approved meaning to the term “TGIF.” We often OCR’s request for an exception to the receive calls from congressionalstaffers On August 17, the Senate passed S. hiring freeze. My work on that request who need copies of reports right away, 2222, the Immigration Reform and Con- memo paid off. This will allow us to con- sometimes in the next 15 minutes. I have trol Act of 1982. vert Kim to permanent status (she has found that if you are very courteous and The bill provides for a report by the been temporary since September) and tactful when you receive thesecalls, even Comptroller General on the results of a will allow Mr. Griffith to advertise for a the irate ones, you can come to some comprehensive review of the implemen- secretary. Iimmediatelywent downstairs, type of agreement. tation and enforcement of the provisions picked up a few copies of the exception My husband, who usually picks me up concerning control of unlawful employ- memo, and dropped by Personnel to give from work, just called to say that he would ment of aliens. our team representative a copy. Next, I be working late and would not be able to typed up the request forms so we could pick me up until around 7:OO tonight. It is Refugee Assistance get a vacancy announcement on the Friday, and of all days, I don’t like to stay Amembemts of 1982 board as quickly as possible. late. Shirley Graham in the Information Later in the day, Personnel called me Office doesn’t live very far from me, so I to ask if we could interview a young lady asked if she would give me a ride. Shir- The House-passed version of H.R. for a clerk-typist position. Barbara Scott ley agreed, but we both ended up work- 5879, to extend the refugee assistance and I interviewed her and were very ing until after 530 before we could leave authorization for 3 years, includes a pro- impressed, especially when we discov- for home ! vision for annual audit by the Comptrol- ered she had worked in Congressional ler General of funds expended for grants Affairs at the Department of Energy. Mr. and contracts incident to the initial reset- tlement program. Fitzgerald IS not available to interview DA TA, cont. from p. 47. her today, so he will meet with her one day next week. gressional Budget Office and the Census State Justice Institate I then receivedseveral calls from con- Bureau, to conduct an annual study to Act of I982 gressional staffers seeking copies of GAO determine that (1) data sources used to compile the reports. One caller requested a copy of a On August 10, S. 537, to establish the report that GAO did on the International required reports are consolidated in a consistent manner without overlap; there State Justice Institute, was amended and Trade Commission. We often received passed by the Senate. The bill provides is comprehensive coverage of the types calls for reports with a report name, report for GAO to audit and report to the Con- of expenditures specified; and data set number, report date, etc.; I refer them to gress on the operations of the Institute. our research assistant, who can easily forth in the reports are accurate; find the report and forward it to the (2) definitions of cities or other entities requester. But this time, the research of local government employed to pro- assistant asked me for more information duce the reports are adequate; 'Gong Rec Vol 128, (Aug 16, 19821, P because several reports mention the Inter- (3) there is adequacy of other such S10591

GAO Revlew/“intec 1983 51 GAO Staff Changes

In late September, Comptroller General Bowsher announced several changes within GAO designed to build a more cohesive organization. Mr. Bowsher has decided to expand the Office of the Comptroller General to include two new positions to better focus the planning and reporting of GAO’s work and to manage its operations: Henry Eschwege, formerly the director of the Community and Economic Development Division, has been named the Assistant Comptroller General for Planning and Reporting. He will be responsible for determining the overall direction of GAO’s work and for the quality of reports on specific assignments. This willinclude developing strategic and operational issue area plans, assuring the quality of GAO‘s products, and determining the usefulness of GAO’s work to the Congress. Frank Fee, former director of the Field Operations Division, will be Assistant Comptroller General for Operations, responsible for the day-to-day management of GAO’s technical and administrative activities. This will include special emphasis on the continued development of a partnership between the Washington divisions and regional offices; the assignment and utilization of staff, especially key staff in issue areas; assessment of GAO’s organization; and the implementation of GAO policies and procedures. These two new offices, in conjunction with the Special Assistant to the Comptroller General (Milton Socolar) and Mr. Bowsher, will provide a single focus for coordinating and directing the entire GAO organization. The other Assistarrt Comptrollers General will advise and guide the Comptroller General in specific areas:

Greg Ahart, as Assistant Comptroller General for Human Resources, will lead GAO’s efforts to develop its human resources and will manage Personnel, the Office of Organization and Human Development, and the Personnel Systems Development Project. John Heller, Assistant Comptroller General for Policy, will remain in charge of policy, emphasizing the continued develop- ment ofpolicy guidelines and a new major effort regarding post-review of policy implementation. He will still be responsible for the Office of Foreign Visitors and International Audit Organization Liaison. Greg Ahart, as Assistant Comptroller General for Human Resources, willlead GAO’s efforts to develop its human resources and will manage Personnel, the Office of Organization and Human Development, and the Personnel Systems Development Project. John Heller, Assistant Comptroller General for Policy, will remain in charge of policy, emphasizing the continued develop- ment of policy guidelines and a new major effort regarding post-review of policy implementation. He will still be responsible for the Office of Foreign Visitors and International Audit Organization Liaison. Harry Havens, Assistant Comptroller General for Program Evaluation, will continue to guide program evaluation and assist the Comptroller General on Special projects. In addition, Mr. Bowsher announced that he was merging the Energy and Minerals Division with the Community and Economic Development Division to create a new Resources, Community, and Economic Development Division, under the direction of Dexter Peach. Harry Havens, Assistant Comptroller General for Program Evaluation, will continue to guide program evaluation and assist the Comptroller General on Special projects. In addition, Mr. Bowsher announced that he was merging the Energy and Minerals Division with the Community and Economic Development Division to create a new Resources, Community, and Economic Development Division, under the direction of Dexter Peach. “This change will improve the integration of program and assignment planning for closely related issue areas of both former divisions, such as energy, materials, environment, land use and water, while continuing our workin food, housing, transportation, and economic development,’’ Mr. Bowsher explained. “This change will improve the integration of program and assignment planning for closely related issue areas of both former divisions, such as energy, materials, environment, land use and water, while continuing our workin food, housing, transportation, and economic development,” Mr. Bowsher explained.

52 GAO Review/Winter 1983 Hemy Eschwege FrancisX. Fee J. Dexter Peach

Henry Eschwege was formerly the Francis X. Fee, formerly the director, J. Dexter Peach, who formerly served director of the Community and Economic Field Operations Division,joined GAO in as the director, Energy and Minerals Development Division. 1963 after graduating from Villanova Uni- Division, joined GAO in 1960. Mr. Peach Mr. Eschwege joined GAO in 1956 versity with a B.S. degree in economics. has been involved in the audit and analy- after serving 7 years on the staff of a From then until 1972, he performed a sis of numerous Federal programs with certified public accounting firm in New variety of assignmentsin the former Civil emphasis on agriculture and natural York City. He received a B.S.degree in and Resources and Economic Develop- resource activities. He also has been accounting, magnacum laude,from New ment Divisions. In 1972, he was selected heavily involved in the planning and report- York University, and completed the Pro- to participate in the President's Execu- ing of all GAO's energy-related efforts. gram for Management Development, Har- tive Interchange Program, working a full Mr. Peach has received numerous vard Business School. Mr. Eschwege is year with the American Telephone and awards in recognition of his outstanding a CPA (New York) and a member of the Telegraph Company in New York City. contributions: GAO's Career Develop- New York State Society of Certified Pub- In 1973, he was promoted to assistant ment Award in 1969; GAOs Distinguished lic Accountants and the National Associ- regional manager in the Philadelphia Service Award in 1976 for his pioneering ation of Accountants. Regional Office and, in 1975, he was accomplishments in planning GAO's Since coming to GAO, Mr. Eschwege appointed regional manager of New York. energy work and his significant contribu- has served in numerous supervisory posi- He was appointed director, FOD, in 1979. tion to improving Federal energy pro- tions and was appointed director of the Mr. Fee has received numerous awards grams; an SES bonus for outstanding Resources and Economic Development for his outstanding contributions. He performance in 1980; and in 1982, the Division upon its creation in 1972. He received the Career Development Award Comptroller General'sAward for his work has received numerous awards for his in 1972, a Special Education Award in in, and contributions to, Federal energy- outstanding contributions to GAO. He 1973, and the Distinguished Service related programs. received the GAO Meritorious Service Award in 1978. In February 1981, he Mr. Peach holds a B.S. degree in busi- Award in 1965 and 1967, the GAO Distin- was p!resented GAOs Meritorious Exec- ness administration from the University guished Service Award in 1968, the utive Award. of South Carolina (1960) and an M.S. Comptroller General's Award in 1977 and degree in administration from George 1978, and GAO's Distinguished Execu- Washington University (1973). He com- tive Award in 1981. pleted the Program for Management Development at Harvard Business School in 1972. He is a CPA (Virginia) and a member of the American Institute of CPAs and the NationalAssociation of Account- ants.

GAO RedewiWinter 1983 53 Additional Staff Changes SUPERVISORY GAO EVALUATOR Accounting and Financial Management Division Roger McDonald Communi@and Economic Development Division Donato Soranno James Wells Energy and Minerals Division Clifford Gardner william Kruvant Field Operations Division Thomas J. Brew (Washington Regional Office) Gilbert Bowers (Denver) Victor Ell (Los Angeles) James Meissner (Cincinnati) Kenneth Pritchett (Dallas) Louis Rodrigues (Philadelphia) General Government Division Gene I,. Dodaro Mark E. Gebicke International Division Neal Curtin John Payne (Honolulu) William Ludwig Program Analysis Division Emilie G. Heller Brad H. Hathaway Procurement, Logistics and Readiness Division Foy Wicker OiBce of Organization and Human Development A. R. Shanefelter, Jr. ATIUBRNEY-ADVISER Wce of the General Counsel Ernie E. Jackson Gary L. Kepplinger SUPERVISORY COMPUTER SPECIALIST Accounting and Financial Management Division Maurice Moortgat SYSTEMS ACCOUNTANT Accounting and Financial Management Division Bruce Michelson SUIPERVISORP OPERATIONS RESEARCH ANALYST Accounting and Financial Management Division Samuel Oliver Institute for Program Evaluation D. Allen Rodgers SUPERVISORY ECONQMIST Program Analysis Division Geraldine Gerardi ltEmREMam Linwood Adams Typewriter Repairman OAPS Theodore Bda GAO Evaluator MASAD Ernest Davenport Supervisory GAO Auditor AFm Robert Sawyer Senior Evaluator Seattle

54 GAO Review/Whtm 1983 NEW STAFF MEMBERS

The following new staffmembers reported for work during the period July 1,1982, through September 5,1982. Office of the Comptroller Frazier, Sarah Birch and Davis Associates, Inc. General

Office of Information Systems Boyer, Larry M. Library of Congress and Services Office of Finandal Sutler, Mary B. Waldenbooks Management

Office of Administeathe and Jasper, Anthony United Research and Development Publishhg Services Cow Commdty and Eoonomic Petitt, Michele Dept. of Commerce Development Division General Government Division Stevens, L. Nye OMB

Federal Personnel and McNaught, William ICF, Inc. Cornpensatton Division

Isrstitnte for Program Datta, Lois E. National Institute for Education Evaluation

Haman Resources Division Poindexter, George National Consumer Cooperative Bank

Program Analysis Division Heller, Emilie G. Dept. of Labor Hathaway, Brad H. House Committee on Appropriations

REGIONAL OFFICES

Denver Williams, Patsy Dept. of Energv Los Angeles Machen, Mack M. Del Green and Associates, Inc. Philadelphia Jones, Beverly Dept. of Commerce ZambeU, Anna Union Central Life Insurance ATTRITIONS Division Name To

Community and Economic Barry Florence Bell Systems Cow. Development Di-vision Energy and Minerals Division Stephanie Herbert C & P Telephone Enexgy and Minerals Division Martln Libicld Dept of the Navy General Government Division Jill N. Delfh Not specitled R Kent Tyler Own business

Human Resources Division Adele Bomysoad School Gregory Boyb School Loucious R. McKenzie IRS Leslie R Melhuish School Dorothyk Schmidt Private industry

GAO Review/Winter 1983 55; GAO StafF Changes

International Division James R Hamilton International Monetary Fund KarenK. Levin University of Virginia CharlesT. Metz Dept. of State Frederick Resnick Private industry Frank Zappacosta Organization of American States

Personnel Alice Hajjar Dept. of the Treasury Renee Keck Not speciaed Maire Kliefoth Dept. of the Air Force Program Analysis Division Lawrence P. Brunner Central Michigan University Gwendolyn B. Moore The Case Study Institute, Inc.

Atlanta Daniel Bailey Air Force Audit Agency Laurence Blose School Hugh Weeks Dept. of Defense

Boston Barbara Abbott School Helen Franklin Not speciaed Diane Martin School Richard Tyler EPA Chicago Pam Larson Private accounting firm Cincinnati John Adams School Thomas Bachman Air Force Audit Agency Lucion Dobbs Corps of Engineers Harold Fine Dept. of Energy Ervey Henderson Air Force Audit Agency Warren Lee Defense Contract Audit Agency

Dallas James Mikelson Not speciaed Denver KathrynAmos Dept. of the Interior Connie Bartram Private industry Gay Hopkins Dept of the Interior Gary Johnson Dept of the Interior John Kunzler Dept. of the Interior John Russo Dept. of the Interior Nikki Tinsley Dept. of the Interior Louis willlams Not speciaed Kansas city JobBowman School Lynette Wcks Private industry Pat Lipovitz Home Maryrner Home wiuiammte Private industry

Los Angeles Jimmy Bowden Air Force Audit Agency Svetlana Darche Home Kenneth Dobbs Air Force Audit Agency John Garbett CBS Diane Hall School Debra RobinsonJacobs Private industry Nancy Schneider So. Calif. Gas Co. Julie Seidman Hone Kenneth Stone City of Anaheim

New York Michelle Lynch Private industry medPleasure Not speciaed

56 GAO RevlewNhtm 1983 GAO StaEChanges

Philadelphia Jeanmarie Emhof Home San Francisco Carol Kasparek Not specified Seattle Raymond Chapman Foster & Marshall Investment Co. David Cram Wycliffe Bible Translators Cynthia Peterson Blue Cross J&ta Gabay Not specified Washington Cheryl-Anne Eskey IRS Edward Holton Not specified Ivy Jenkins Not specified Michael McPoland U.S. courts Betty J. Woodard Not specified

GAO Reviewmhter 1983 57 Professional Activities tions on the New GAO Process for Approving Accounting Systems” at the Association of Government Accoun- Office of the Seymour Efros, associate general tants ProfessionalDevelopment Con- Comptroller General counsel, moderated the Government Con- ference in Denver, June 15. Mr. Donlon tracts Seminar at the FBA Convention in has also been appointed Chairman of Crystal City, VA, Sept. 9. the Association of Government Accoun- Harry S. Havens, Assistant Comptrol- tants National Education Board. ler General, spoke at the monthly lun- Richard Kasdan,senior attorney, spoke cheon meeting of the American Society on “The Oversight Role of the General W. A. Broadus, Jr., group director: of Military Comptrcllers Association. His Accounting Office” at a University of topic was “Budget Reform.” The meet- Washington Law School continuing legal Conducted briefings and workshops ing was held at the Ft. Myer Officers education program on the Pacific North- on governmental audit standards and Club, Washington. west Electric Power Planning and Con- governmental auditing to the following servation Act in Seattle, June 5. organizations: Georgia State Audit John D. Heller, Assistant Comptroller Staff, Atlanta; State and Federal Finan- General for Policy, addressed the follow- A-8MaWmd cial Management and Audit Confer- ing groups: ence, sponsored by the Pennsylvania OPM Executive Seminar on Public Pro- Department of Transportation and the gram Management on “Executive Com- MsiuDn Federal Highway Administration, petence: A Panel Discussion;’ Kings Point, Taminent; Annual Conference of the NY, June 17 and Sept. 23. Walter L. Anderson, senior associ- Association of Government Account- ate director, was given an award for ants, Denver; Montana State Audit Washington Seminar on Politics and Edu- “Supreme Achievement in ADP Excel- Staff, Helena; International Conference cation on the “Role of the General lence” for a series of GAO reports of Institute of Internal Auditors, Wash- Accounting Office in the Federal Govern- addressingGovemment-wide problems ington, DC; US. Department of Com- ment,” Washington, June 25. in ADP by the InteragencyCommittee merce Inspector General Audit Staff, Washington Semester Program of the on ADP at a ceremony held at Bolling Washington, DC; annual meeting of American University on “The Role of AFB, Washington, June 15. the American Accounting Association, San Diego. the General Accounting Office in the Ronald J. Points, associate director: Federal Government,” Washington, Sept. 20. Spoke on the GovernmentalAccount- Was reappointed to serve on the AICPA ing Standards Board and received the Auditing Standards Advisory Council, Elaine L. Orr, director, Office of For- AGA Distinguished Leadership Award AICPA MAS standards Practice Sub- eign Visitor and International Audit Orga- at the Association of Government committee, and AACSB Accounting nization Liaison, addressed the Harvard Accountants annual meeting in Denver, Accreditation committee. Institute for International Development June 16. Carl R. Palmer, group director: on “Control of Government Corpora- Spoke on OMB Circular A-123 and tions-In the US. and Other Countries,” Was elected to the Executive Board of Internal Controls before the Nebraska in Cambridge, MA, Aug. 16. the Interagency ADP Committee for Society of CPAs Municipal Auditing 1982-84. Conference in Omaha, June 22. Office of Internal Participated in a panel on Defense Spoke on the purpose and scope of Computer Acquisition at the National Review the Governmental Accounting Stan- Computer Graphics Association meet- dards Board before the NY/NJ and ing held in Los Angeles, June 16. Jane E. Altenhofen, evaluator, was Mid-Atlantic Intergovernmental Audit awarded a master’s degree in public Forums, June 24. Gave the keynote address, “Congres- administration by the American Univer- sional and Audit Interests in Computer sity School of Government and Public George Egan, associate director, Performance Management,” at the Administration in August 1982. She was spoke on “Current Efforts in Preven- 1982 USAF Computer Performance also invited to join Pi Alpha Alpha, a tion and Detection of Fraud, Waste, Management Conference, in Mont- national honor fraternity for public affairs and Abuse- Federal Departments and gomery, AL, June. 2. students in the top 20 percent of their Agencies,” before the CPAs in Govem- class. ment conference, San Antonio, June George P. Sotos, group director, 17. held a seminar on “Computer Resource Office of the General Planning” for the Great Lakes Inter- Virginia B. Robinson, associate CoMElsel. Governmental ADP Council in Chicago, director: June 15. Spoke on “Update on the GAO Ac- Rollee Efros, associate general Morey J. Chick, evaluator, spoke counting System Approval Process” counsel, spoke on the “The Budget Pro- on information management before the at the Financial Management Institute cess and Attempts at Reform” at the “Mid Atlantic Government Information in Dallas, Aug. 17. annual meeting of the American Bar Council” in Philadelphia, PA, June 4. Association, Public Contract Section, held Mrs. Robinson and Joseph J. Donlon, Mr. Chick also discussed a recently in San Francisco, Aug. 6-12. senior group director, spoke on “Reflec- issued staff study on the impact of

GAO Review/cyinter 1983 Professional AckMties

automation on US. employment before cial Bank Lending to Small Busi- the Council. Mr. Chick is a charter mem- ness,” before a Blue Ribbon Com- ber of the Council. mittee on Small Business Capital Access, in Rosslyn, VA, July 7. Joseph L. Boyd, senior group Dave Jones, issue area plan- director: executive director: Spoke on “Auditing in a Computer Susumu Uyeda, ning director, and Vic Rezendes, Environment” at the June meeting of Moderated a workshop for the George group director, discussed “Envi- Central Pennsylvania’s Data Process- Mason University Conference on Cir- ronmental Issues in the OS," before ing Management Association (DPMA) cular A-1 23 in Washington, June 21. the Environmental Task Force of in Harrisburg, June 17. Women in Government, Washington, Gave a presentationon JFMIP’s func- July 23. Mr. Boyd and Roger McDonald, senior tions and its properly management pro- ADP auditor, presented a one-day jectsto the National PropertyManage- Roy Kirk, senior group director, seminar on “Evaluating Internal Con- ment Association in Washington, June and Phil Olson, evaluator, were irols in Computer Based Systems” to 30. interviewedon Federal land acquisi- the Central Kentucky Chapter of the tion practices in Ohio’s Cuyahoga Gave the keynote address on “Emerg- Association of Government Account- Valley by Dave Jury of Valley ing in Government Financial ants, Frankfort, June 10. Issues Filmworks, which is producing a Management” at the National Institute Robert A. Pewanick, group director, documentary to be aired on public for Management Research Conference took office as President of the Wash- broadcasting this fall. ington Chapter of the Association of on Financial Information Systems in Government Accountants (AGA). He Washington, July 28. Keith Fultz, senior group direc- tor, and Sherrie Russ, evaluator, is also a member of the National Spoke on “Changes in the Manage- Finance Committee, AGA. were interviewedby Joe Harrison of ment Approach to Government Pro- the Berns News Bureau on GAOs Gordon J. Filler, senior account- grams” at the 35th Annual National report, “Congressional Decision ant, was elected Secretary of the Bal- Conference of the State Human Ser- Needed on Necessity of Federal timore chapter of the Association of vices Finance Officers, Cherry Hill, NJ, Wool Program” (GAO/ CED - 82 - Government Accountants. Aug. 16. 86, Aug. 2,1982). The interview was Paul S. Benoit, computer specialist, Doris Chew, assistant executive broadcast on radio stations in the is serving as Secretary Membership director, moderated a panel discus- Midwest. Chairman and Chapter Newsletter sion on “Productivity Improvements in Editor, The Patuxent Chapter, Associ- Accounting and Finance Offices,” and aumm Resomrws ation for Systems Management, spoke on “Productivity Measurement 1982-83. Systems,” at OPM’s Southwest Re- idsion gion’s Financial Management Institute Ronald Komura, computer specialist, John W. Lainhart, group director: in Dallas, Aug. 18. a member of the Washington Chapter Was electedAdministrative Vice Presi- of the Association for Systems Man- James Rothwell, project director, dent of the EDP Auditors Associations, agement, was elected Division Coun- spoke on JFMIP’s Grant Cash Man- Inc., and EDP Auditors Foundation, cil Chairperson by representatives of agement Study in the States, at the lnc., for 1982-83. the six chapters in the Chesapeake 35th Annual National Conference of Division. the State Human Services Finance Spoke at the Central Maryland Chapter, Officers, Cherry Hill, NJ, Aug. 17. EDP Auditors Association meeting on Jerry F. Wilburn, credit and collec- “Risk Assessment and Systems Re- tion systems analyst, gave a presenta- views” in Baltimore, Apr. 14. tion on current legislative and admini- strative initiatives regarding Federal debt collection efforts before the PennsylvanialNew Jersey Collectors Association in Atlantic City, June 4. Henry Eschwege, director, dis- Frank Conahan, director, as U.S. cussed “The Functions and Activi- representative and Chairman of the J. Chris Farley, management ana- ties of the General Accounting Board of External Auditors, Organiza- lyst, gave a presentation on debt col- Office,” before the Brookings Institu- tion of American States, presided at lection issues before the Department tion’s Conference for Business the Board’s second and final meeting of the Treasury’s Regulations and Com- Executives, Washington, June 7. of the year, in Washington, July 27- pliancestaffs Liaison Branch in Wash- 30. Purposes of the session were to ington, June 23. Andy Pasden, evaluator, dis- discuss the results of the 1981 audit of cussed “Water Issues Facing the Daniel G. Dietz, management OAS activities, to plan for the 1982 Nation,” before the U.S. Chamber audit, and to prepare the Board’s Annual analyst, gave a presentation on “GAOs of Commerce’s Committee on Natu- Role in the Debt Collection Process” Report to be presentedto the General ral Resources, Washington, June Assembly of OAS later in the year. He to the Department of Justice’s Execu- 23. tive Office for U.S. Attorneys Debt Col- was accompanied by Jesus Martinez, lection Conference, Washington, June Dennis Fricke, evaluator. dis- evaluator, who serves as staff assis- 22. cussed “Factors Affecting Commer- tant on OAS-related work.

GAO Repiew/Wintm 1983 59 Professional Activities

Frank Zappacosta, senior group Benjamin I. Gottlieb, principal General Assembly of the World Future director, recentlybegana2-yearassign actuary, spoke to the Middle Atlantic Society on “Communications and the ment as Chief. Internal Audit Division, Actuarial Club on June 3 in Hampton, Future,” heldin Washington, July20-21. VA, on the subject of a sample survey Organizationof American States. For- David G. Sapp, evaluator, spoke merly the US. representative and of American actuaries. The surveycov- on “GAO’s Views of Test and Evalua- ered methods and assumptions used Chairman of the Board of External Audi- tion” before the Defense Systems Man- to estimate the cost of Social Security. tors (July 1978-December 1981), agement College’s presentation at Fort Zappacosta accepted the new assign- Virginia A. Dewolf, statistician, and Monmouth, NJ, Sept. 1. ment at the request of the Secretary Irene T. Mann, social science analyst, General, OAS. presented a paper entitled “Secondary Procuremenk, Allan Hovey, supervisory evaluator, Analysis in Evaluation Research: Some Logistics And Readi- authored a policy paper, “Toward a Statistical Considerations” at the annual Consensus on Military Service,” which meeting of the American Psychologi- mess Division was published on June 29 by the Atlan- cal Association, Washington, Aug. 25. tic Council of the United States, a Ray C. Rist, deputy associate Julia Denman, senior evaluator: nonprofit, bipartisan educational orga- director, has edited a special issue of Spoke on “GAO Reviews of Defense nization specializing in studies of stra- Society magazine on the topicof youth Logistics Programs, ” at the Air Com- tegic and international issues. The employment and education. The title policy paper, togetherwith nine related mand and Staff College, Montgomery, of the special issue is ”Unemployed, AL, May 20. working papers by other members of Young, and Miseducated.” The lead the group, will be published in book article in the issue was written by Rist Made a presentation entitled “Optimiz- form in September. Dr. Hovey served and IS entitled “Playing on the Margin: ing Limited Defense Dollars-A Chal- as rapporteur of the Council group, Education and Employment Training.” lenge for Logisticians” before the which was cochaired by Dr. Lloyd H. Atlanta Chapter of the Society of Logis- Elliott, President of George Washing- tics Engineers, Atlanta, June 2. ton University,and General Andrew J. Mission Analysis and Goodpaster, former Supreme Allied Systems Acquisition- Spoke on “The General Accounting Commander, Europe. Office’s Interests in Life Cycle Cost- Division ing” at the Defense Systems Manage- ment College, Fort Belvoir, VA, June hstjtg& For program Donald E. Day, senior associate di- 10. Evaluation rector, spoke on “The Role of the GAO Leslie L. Megyeri, senior evaluator, in Major Acquisitions” at the Defense lectured on Government contract princi- Systems Management College, Fort Eleanor Chelimsky, director: ples before the Legal Education Belvoir, VA, Sept. 20. Institute, Department of Justice, Presented invited remarks to the Ameri- John J. D’Esopo, group director, Washington, June 8. can Psychological Association at its spoke on “The Role of the GAO in annual meeting, Aug. 26, in L’hsh- Major Acquisitions” at the Navy Sys- Clark Adams, group director: ington, on the subject ‘‘Improving the tems Acquisition Management School, Spokeon “Cost ofAccounting-Past, Effectivenessof Program Evaluation.” Washington, Sept. 24. Present and Future” at the Profes- Has been invited by the Office of the sional Development InstituteII ofthe Canadian Auditor General to serve as Lester C. Farrington, Jr., group American Association of Military a member of their Advisory Commit- director, discussed “GAOs Role in Test Comptrollers,New Orleans, May21. and Evaluation” at the Defense Sys- tee-a seven-member panekfor their Conducteda workshop/tutorialsession government-wide audit on program tems Management College, Fort Belvoir, VA, Aug. 12. at AGAs ProfessionalDevelopment effectiveness measurement and re- Conference, Denver, June 15. porting. Clarence 0. Smith, QrouD director, Her paper, “Making Block Grants discussed GAOs repoh“Fedlera1 Infor- mation Systems Remain Highly Vul- DiscussedGAO review of the imple- Accountable,” was chosen for republi- mentationof thecost accounting stan- cation as one of the outstanding evalua- nerable to Fraudulent, Wasteful, Abusive, and Illegal Practices” dards before the National Contract tion articles of 1981 in the Evaluation ManagementAssociation,Washington, (MASAD - 82 - 18, Apr. 21, 1982) Studies Review Annual, edited by June. Ernest R. House. (The paper was origi- before the Departmental Level Work- nally published in avolume of the Sage ing Group on Information Resource Discussedbackground and the future Research Progress series.) Management (Policy) in Washington, of cost accounting standards before Aug. 3. theDepartmentoftheAirForce Pric- Wallace M. Cohen, senior group di- ingconference, Ft. Belvoir,VA, July. rector, spoke on “Program Evalua- Frederick Chasnov, evaluator, pre- tion Activities in GAO” to the Legisla- sented a paper on “Information Man- Provided testimonyasan expertwit- tive Program Evaluation Section of the agement Systems-A Concept for ness beforetheArmedServices Board National Conference of State Legisla- Centralizing Control Over Decentral- of Contract Appeal, Alexandria, VA, tures, Chicago, July 27. ized Information Systems” at the Fourth May 27, and Los Angeles, Aug. 30.

60 GAO Review/Wintm1983 Professional Activities

Program Analysis Athlh tages of a career with GAO, to the Zeta Epsilon Chapter of Beta Alpha Divisiom Marvin Cobs, regional manager, Psi, the national accountingfraternity. spoke on “Carrying Out Oversight Kenneth W. Hunter, senior associ- Functions-How GAO Interfaces With Francis Langlinais, senior evalu- ate director: DOD,” Maxwell AFB, AL., Aug. 4. ator: Spoke on the Federal budget process Pat Patterson, assistant regional Presented a 1-day course on “Audit before presidential management interns manager, spoke on “Financial Man- Approaches to Data Processing,” to in Warrenton, VA, May 25. agement Applications of Microcom- the American Society of Military Comp- trollers at the Corpus Christi Naval Air Cohosted a workshop on legislative puters,” at the Financial Management Station. foresight in Washington, May 26. Institute, Dallas, Aug. 17. Donna Heivilin, supervisory evaluator, John E. Stanfield has been desig- Received the Outstanding Regional was workshop chairman. nated Chairman of the Outreach Com- Vice President Award at the AGA National Symposium, Denver, June 13. Was inducted as president-elect of the mittee for the Atlanta Chapter of the American Association for Budget and Georgia Society of Certified Public James Hamilton, evaluator, has Program Analysis at its July executive Accountants. The Outreach Commit- been selected tochairthe Members in board meeting in Washington. tee is part of the Society’s efforts to Government and Industry Committee improve services to CPAs in industry, (MIGI), Dallas Chapter of CPAs. He Addressed the annual meeting of the government, and education. was also selected to serve as vice National Association for State Informa- chairman of the MlGl Chapter Devel- tion Systems on “The Challenge of opment Committee, Texas Society of New Federalism: A Federal and Finan- Frank Lawson and Michael Mc- CPAs. cial Management Perspective” in Guire, evaluators, were elected Presi- Portland, ME, Aug. 9. dent-Elect and Secretary, respectively, IDemVeP of the Cincinnati Chapter of the Associ- Osmundi. Fundingsland, associ- Marcia Buchanan, evaluator, spoke ation of Government Accountants for ate director: on “FederaVState Budget Cycles,” the 1982-83 year. Presenteda paper on “Criteria for Sci- before the National Association of State entific Choice” at the Engineering Man- Daniel Meadows, Barbara Pudor, Budget Officers, Williamsburg, VA, July agement Society Conference in Wash- and John Adams, evaluators, were 30. ington, June 1. elected Chapter Directors of the Cin- Emmanuel Olona, evaluator, re- cinnati Chapter of the Association of ceived one of the greatest honors Delivered a paper entitled “Deterioration Government Accountantsforthe1982- in the Artof Communication May Skew bestowed by the National Boy Scouts 83 year. National Priorities” at the fourth gen- of America: induction into the Order of eral assembly of the World Future Soci- Norman Hoffman, evaluator, has the Arrow, Camp Frank Rand, NM, ety in Washington, July 20-21. been elected Secretary of the Greater Sept. 10-12. Cincinnati Chapter of the EDP Audi- James L. Kirkman, management tors Association. analyst, was inducted to the board of Arthur Foreman, operations re- Robert W. Hanlon, regional mana- directors of the American Association search analyst, has been elected a ger: for Budget and Program Analysis at Director of the Greater Cincinnati Chap its July executive board meeting in Spoke on “Practice, Practice, Practice” ter of the EDP Auditors Association. Washington. before the charter meeting of the Michael Curro, evaluator, has been Hilltoppers Toastmistresses, in Denver, Charles Vehorn, economist, L. appointed Adjunct Assistant Profes- Sept. 8. coauthored an article entitled ”Measur- sor at Xavier University and will be ing the Contribution of Biomedical Together with James A. Reardon, teaching a course on Intergovernmen- senior evaluator, attended the semian- Research to the Production of Health,” tal Program Administration. published in Research Policy, Volume nual meeting of the Mountains and 11, 1982. Plains IntergovernmentalAudit Forum, in Cheyenne,WY., Oct. 21-22.

William Bradley, evaluator, along James A. Reardon, senior evalua- tor, spoke on “Implementing the Sin- with: Division gle Audit” before the Federal Regional Richard Clough, evaluator, spoke Council, Region VIII, Denver, Sept. on “The Role and Activities of the Gen- 21. eral Accounting Office,” to accounting Norman G. Austen, evaluator, pre- Francis X. Fee, director, addressed students at the Dallas Magnet High sented a symposium on “Auditing a group of 70 people from the Wash- School, Apr. 20. ington Seminar, Wayne State Univer- Computer-Based Systems” to repre- sity, Detroit, MI, on “The Type of Work Art Nisle, evaluator, presented a sentatives of the National Bureau of GAO Does and How It Is Organized detailed account of an actual Dallas Standards, the Department of Com- To Do It,” Washington, June 26. regional office audit and the advan- merce, other Government agencies,

GAO ReviewiWinter 1983 x Professional Activl6les

and various commerical ADP vendors, “Program Evaluation,” before the USC N~rfolk Gaithersburg, MD, Sept. 29. Graduate School of Public Administra- tion, Los Angeles, June 17. Don Ingram, senior evaluator, William Laurie, evaluator, presented received several awards from the Vir- a paper entitled “Well-being of Older “Auditing Opportunities with the GAO,” ginia Peninsula Chapter of the Ameri- People: Measurable and Dynamic,” before Beta Alpha Psi, the national can Association of Government Ac- at the Joint Statistical meeting of the accounting fraternity, at California State countants, Hampton, June 15: American Statistical Association, University, Los Angeles, July 9. Cincinnati, Aug. 19. The 1982 Chapter Membership Award Mr. Ell also hosted the Auditor Gen- for “outstanding performance in recruit- Patrick Iler, evaluator, presented a eral of Sri Lanka, presented an expla- ing new AGA members.” paper entitled“Graying of The National nation of GAO’s regional office role The 1982 Exceptional Service Award Budget: The Impact on An Aging and operations, and toured the Jet Pro- Population,” at the Gerontological Soci- pulsion Laboratory audit site, July 1. for his “exemplary participation’’ in national and local AGA activities. ety of America meeting, Boston, Nov. Fred Gallegos, evaluator: 22. The Past President’s Award for “ern- Taught a graduate course on manage- inent service” to his chapter. Kansas City ment information systems at Califor- nia State Polytechnic University during Paul Latta, evaluator, received the David Hanna, regional manager, the spring quarter, Pomona. 1982 President’s Special Award for along with Suzanne Valdez, evaluator: his “constant assistance and dedicated Was the project leader for developing service and for job effectiveness in Attended the 1982 Joint Conference a course on EDP auditing and con- of Audit Forums, Nashville, May 10-12. promoting the goals of the Associa- trols and participated in developing a tion of Government Accountants.” Briefed the Federal Regional Council paper published in the EDP Auditors on the progress of the Single Audit Journal (spring issue), entitled Natalie Oliver, evaluator: Implementation in Federal Region VII, “DPMA’s Model Curriculum for Com- Along with Joe Stevens, assistant Kansas City, July 22. puter Information Systems Education.” regional manager, received the AGAs SuzanneValdez, evaluator, attend- Received the “Distinguished Alumnus Virginia Peninsula Chapter’s Special ed the National State Auditors Associ- Award forthe School of Business” from Recognition awards for their service ation annual meeting, Memphis, June California State Polytechnic University, as secretary and director, respectively. 7-9. Pomona, May. Was named the Chapter’s1 983 secre- Cos Angeles Phil Abbinante, evaluator, spoke on tary. “A Compendium of Resource Materi- Edwin Soniat, senior evaluator, pre- Victor Ell, assistant regional manag- als Available Through Agency Sharing,” sented a workshop on productivity and er, spoke on: before the Federal Executive Board, GAO studies as part of a seminar spon- Los Angeles, Aug. 12. sored by the Denver Federal Execu- “Health Care and Government, A tive Board and the Joint Financial Changing Scene,” as the keynote Rod Moore, evaluator, completed Management Improvement Program, speaker before the 23rd Institute on a Certificate Program on Managing Denver, Apr. 29. Financial Management, Hospital- Transportation Programs and Systems Financial Management Association, from the Institute of Transportation San Diego, May 5. Studies, University of California, Irvine. Helen Figlio, administrativeofficer, received an Associate of Arts degree from Pasadena City College, June.

GAO ReviewlWinter 1983 Professional Activities

Philadelphia Seattle Hilary Stephenson, evaluator: Charles Mosher, evaluator: Has successfully completed the 4- Moderated the American Water Re- year Presidential Management Intern sources Association’s Washington Sec- Program. tion conference on Quality of Water For and From Irrigation, Seattle, May Was elected President of the Philadel- 12. phia Women’s Network, June 30. Authored a paper entitled “Getting Bet- san Francisco ter Data For Decisions-A Challenge Hal DAmbrogia, assistant regional to GAO in Program Analysis,” pub- manager, was appointed to a Califor- lished by the American Water Re- nia CPA Society task force consider- sources Association in its Symposium ing possible policy changes to the Proceedings, Unified River Basin California Accountancy Act, Aug. 5. Management-Stage II, Summer 1982. Gil Bowers, senior evaluator, spoke on “The Status of Performance Ap- Received notice, as President of the praisal in the Federal Government,” Washington Section (chapter), Ameri- to the New England Federal Person- can Water Resources Association, that nel Council, Boston, June 28. the Section has been selected the AWRA Outstanding Section for 1982 Jeff Eichner,senior evaluator, was for its program innovativeness, mem- electedto the AGA Board of Director’s bership growth, and enhancement of National Executive Committee for fis- the Association‘s image as a profes- cal year 1983. sional water resources organization, Frank Campos, senior evaluator, Aug. 12. wrote an article on IRS Audits pub- Donald Praast, senior evaluator, lished in the newspaper of the San received both a 1982 National award Jose Mexican-AmericanChamber of for recruiting new members and the Commerce, Sept. Seattle AGA chapter’s Past President‘s Pamela Johnson, evaluator, served Award for “untiring and devoted ser- as managing editor of Urban Action, vice as President 1981-82,” June. San Francisco State University’s Urban Ronald Kelso, evaluator, addressed Studies Journal, forthe academic year the Anchorage Chapter, American Soci- 1981-82. ety of Military Comptrollers,on GAO’s Dale Vigus, computer systems issue area planning system, Aug. 31. analyst, taught a one-semester course on data processing for business and accounting students at Golden State Univeristy, San Francisco. Hans Bredfeldt, operations research specialist, was elected vice chairman of the Office Automation Research Forum of San Francisco, Aug. 14. Teena Amador, management as- sistant, was selected as a finalist in the San Francisco Bay area Federal Executive Board’s 1982 Federal Em- ployee of the Year program, Aug.

GAO Reviewt’&’inter 1983 63 Annual Awards for Articles Published in The GAO Review

Cash awards are presented each year for the best articles written by GAO staff members and published originally in the The GAO Review. The awards are pre- sented during the GAO Awards Program held annually in October in Washington. One award of $500 is available to contributing staff 35 years of age or younger at the date of publication and another is available to staff over 35 years of age at that date. Staff through grade GS-15 at the time they submit the article are eligible for these awards. The awards are based on recommendations of a panel of judges designated by the Editor. The judges will evaluate articles from the standpoint of their overall excellence, with particular concern for 0 originality of concept and ideas, 0 degree of interest to readers, 0 quality of written expression, 0 evidence of individual effort expended, and 0 relevance to “GAO’s mission.”

Statement of Editorial Policy This publication is prepared primarily for use by the staff of the General Account- ing Office (GAO) and outside readers interested in GAO’s work. Except where otherwise indicated, the articles and other submissions generally express the views of the authors and not an official position of the General Accounting Office. The GAO Review’s mission is threefold. First, it highlights GAO’s work from the perspectives of subject area and methodology. (The Review usually publishes articles on subjects generated from GAO audit work which are inherently interesting or controversial. It also may select articles related to innovative audit techniques.) Second and equally important, the Review provides GAO staff with a creative outlet for professional enhancement. Third, it acts as historian for significant audit trends, GAO events, and staff activities. Potential authors and interested readers should refer to GAO Order 1551.I for details on Review policies, procedures, and formats.

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