The GAO Review, Vol. 13, Issue 2, Spring 1978

SCULPTURES AT THE “G” STREET ENTRANCE

(Compressed view) American laborers and professional workers are depicted in the bas-relief sculptures that decorate the red granite portals of the recessed entrance of the buff limestone GAO Building on “G” Street. The sculptures were designed in 1951 by Joseph Kiselewski, noted U.S. sculptor, of New York. Nine feet high and 15 feet long. the two panels curve around both sides of the entrance. They contain about 30 figures representing Americans most affected by Government programs. On the front and back covers of THEGAO REVIEWis a partial section of the two tiers that divide each panel. The panel on the right side of the entrance depicts agriculture in the top tier and mining in the bottom one. Among other themes included in this panel are fishing, warehousing, and transportation. The panel on the left side of the entrance shows the professional worker and the occupations that concerned the economy in the 1950s. These included the themes of engineering, science, education, and art. Themes such as the military were left out at the time, 5 years after World War II. and themes such as space, welfare. crime, and atomic energy had not yet become areas of major national concern.

~ .. ~___ Published quarterly by the U S General Accounting Office. Washington, D C 20548 Application to mail at controlled circulation rates is pending at Washington, D C 20402 For sale by the Superintendent of Dacu- ments. U S Government Printing Office, Washington, D C 20402 Price $1 80 (single copy) Subscription price’ $7 00 per year, $1 75 additional for foreign mailing Postmaster Send Forms 3579 to U S General Accounting Office. Washington, D.C. 20548 THE GAO SPRING 1978

REVIEW VOLUME 13 ISSUE 2

Future of the American City 1 -/ Contentii ELMER B. STAATS ...... Ya86,>...... 1 GAO's Space Renovation Effort: Project Management in the Real World LARRY A. HERRMANN ...... 7J[gL)& 6

c Standard Definitions: Missing and Needed Software Tools STEVEN MERRIIT ...y$&?? 7...... 17 Works of Art at GAO I JOSEPH S. ROSAPEPE ...... 7~[r-&?3 28

6' A Summary of Actions Taken by the AlCPA To Improve the Acco ting Pr fessm JACQULYN MULLINS .... .yg.{$?d!.T.. .. 35 A Commonsense Approach to Writing Reports LOWELL MININGER ...... 40 Building a Dynamic and Comprehensive EEO Program ALEXANDER A. SILVA ...... 7;L!:.s-! c> .. 48 A Nickel Here, a Nickel There- Returnables Are Worth the Price! D. LAMAR WHITE ...... j72f5 // 53 The Team Approach: Stirring the Pot TIMOTHY D. DESMOND ...... yg.c.C?

i Ah4 Sets Up international Section...... 81 New Publication on Auditing and Accounting for Grants-in-Aid ...... 81 Guide to Accounting Periodicals Revised ...... 81 Dan Borth ...... 81 Richard J. Madison ...... 82 Legislative Developments . .?2t!+&Lf. . . . a4

Reflections ...... , ...... 87 GAO Staff Changes ...... , , ...... 89 Professional Activities ...... 96 New Staff Members ...... 106 Readers' Comments ...... 1oa

elected articles in the REVIEW are indexed In the ACCOUNTANTS INDEX ublished by the American institute of Certified Public Accountants. ubiished quarterly for the professional staff of the US. General Accounting mce. ii ELMER B. STAATS ---’ COMPTROLLER GENERAL OF THE UNITED STATES

Future of the American City

Revitalization of urban centers is seen as necessary for social and economic progress of the Nation. GAO studies and reports in the area are outlined in this excerpt adapted from a talk by Comptroller General Staats before the Philadelphia Bar Association on December 6,1977.

There is a very real question That is, the city will serve today as to whether the Ameri- primarily as home for those that can city as we have known cannot care for themselves or it-the center of commerce and those for whom society can find culture, the wellspring of indus- no alternative means of provid- try and ideas-can and should ing care-a reservation for “the survive. Indeed, there are many poor, the deviant, the unwanted, who argue that the city as the and for those who make a busi- economic and intellectual center ness or career of managing them of American society is an anach- for the rest of society.” ronism. This bleak picture, according to These observers argue that the proponents of a national policy to city no longer plays a predomi- revive and rehabilitate American nant economic or social role in cities, rests on a questionable American society and that the premise, namely that the city has realities of the market do not been found wanting in a free and allow for the maintenance of the open market situation. In fact, city at its present size or level of these analysts contend, the pres- activity. In their view, the mar- ent noncompetitive status of the ket should be allowed to operate city is a product more of con- unfettered, forcing each city to scious or unconscious Govern- find a new point of equilibrium ment policy than of the mar- with a smaller population and a ketplace. The plight of the city, further diminished level of eco- in this view, is the result primar- nomic activity. ily of national policies that favor Some observers go further, ar- new construction over rehabilita- guing that the future of the city tion, truck transport over rail- is bleak indeed. Norton Long, for roads, private automobiles over example, predicts that the late mass transit, and investment in 20th century will usher in the capital equipment rather than in era of the (‘city as reservation.” jobs or training programs. This is

GAO ReviewlSpring 1978 1 FUTURE OF THE AMERICAN CITY

not to imply that the economic present style of low density and advantages of locations outside discontinuous development. central cities are all illusory or Sprawled development is also that the city should occupy the much more wasteful of limited same central place in the eco- energy resources than is denser nomic sphere that it once held. urban development. Suburban and But it does argue that there is a exurban development is much less real and important role for the efficient than the city in the use of city in the American economic energy for transportation, not only and social scene, a role that far in terms of commuting but also in exceeds that of “reservation.” the energy costs of daily activities such as shopping, visiting, going to school, and delivering goods. And, A Vision for the City added to the direct use of energy by the automobile are the energy There are several factors that costs of constructing, lighting and underlie the importance of the even patrolling the new roads and American city and constitute the parking lots that are required for justification, even the require- this type of development. ment, that it be maintained and rehabilitated. In an era in which people have begun to recognize the Energy and Resource Costs limits of our natural resources and the importance of utilizing those There are also substantial resources wisely so as to conserve energy and natural resource costs wherever possible, the city has as- associated with allowing existing sumed a new role as conservator of capital facilities to go unused and land, energy, and natural to deteriorate while at the same resources. time employing scarce resources to Undeveloped land is a limited construct replacement facilities. and valuable commodity, valuable Furthermore, the energy and re- as wilderness, as a resource for source costs of maintenance and recreation and above all as the operation of capital investment are basic input for agriculture. To higher per unit in areas of less permit development of this limited dense development. At the same resource at the present rate of 5 time, they rarely allow significant million acres per year at the same service decreases in previously de- time that we are permitting al- veloped but now partially aban- ready developed land to be under- doned areas. utilized and to deteriorate makes If all these factors are taken into little sense. Furthermore, even account and if existing Federal in- where additional conversion of centives favoring suburban de- land is required for new industry velopment were reassessed, then and housing for an expanding on economic grounds alone there work force and population, it is would be a clear case for the con- certainly wasteful to maintain our tinued role of the city in American

2 GAO ReviewlSpring 1978 FUTURE OF THE AMERICAN CITY life. But there are also important ous breakdown, the urban social reasons for revitalization of neighborhood has demonstrated an the urban community. ability to continue as a cohesive The first of these social reasons and viable social institution. relates to the maintenance of Among the abundant examples of choice of lifestyles. While some strong urban neighborhoods are may perceive this merely as a the Kensington section of matter of taste, it is an important Philadelphia, the North End of component of a free society that Boston, the Stockyards area of people have the opportunity to Chicago, the Hamden section of choose among different sorts of liv- Baltimore, and the Williamsburgh ing patterns. At this time, there is area of Brooklyn. a substantial-and probably growing-number of families and individuals that would prefer an Catalyst in Society urban existence, for reasons of both style and economy. But the most important social I am not optimistically predict- reason of all is the traditional role ing, as so many did in the 1960s, of the city as the locus and catalyst that there is a real or potential of upward mobility in American flood of middle class Americans re- society. As a society, we cannot turning from suburbia. But there morally or economically afford to has been sufficient evidence of the write off the poor, the underedu- interest of middle class families cated, the disadvantaged. More and individuals in returning to importantly, we cannot write off cities across the country to realize the children and the yet unborn that the maintenance of the option generations of Americans who will is an important social goal. One find themselves “on the reserva- only has to look at the Society Hill tion” if we do not undertake seri- and Queen Village sections of ous and determined efforts to in- Philadelphia, at Beacon Hill and crease opportunities for today’s the South End in Boston, and at poor. And, while a viable city is Capitol Hill and Shaw in Wash- not sufficient to diminish the ington to perceive that there are travails of poverty in our society, middle class Americans who are it is a necessary component of such anxious to live in the urban envi- an effort, if only because the city ronment and are willing to invest has become the home of so many of and work hard to make such a life- those who suffer under this style a reality. condition. Another component of the urban It is thus encouraging to know scene worth preserving and re- that, for both economic and social vitalizing is the sense of commu- reasons, pressures are now grow- nity found in the urban neighbor- ing for some kind of Federal re- hood. At a time when many social sponse to the deteriorating cir- institutions, including church and cumstances of urban America. family, are threatened with seri- These points have been perceived

GAO ReviedSpring 1978 3 FUTURE OF THE AMERICAN CITY by many Americans, by officials in both program evaluations and the administration, and by Mem- issue analyses on the impact of bers of Congress. For example, let Federal policies and programs on me cite “TOSave a City,” a report the American city. In fact, GAO recently issued by Congressman has just embarked upon a major Henry S. Reuss, Chairman of the undertaking to outline for the House Committee on Banking, Fi- Congress the many factors that nance, and Urban Affairs and of should be considered in the formu- that committee’s Subcommittee on lation of a Federal urban policy. the City. This type of effort represents a The administration is now work- relatively new way in which GAO ing, through a cabinet-level task aids the Congress in meeting its force chaired by Secretary Patricia legislative and oversight respon- Harris of the Department of Hous- sibilities, and is an outgrowth of ing and Urban Development, to the Congressional Budget Act of develop a national urban policy 1974, a law enacted to enable the statement. At the same time, the Congress to make more informed administration is moving forward program and budget decisions. on plans for an early 1978 White House Conference on Balanced National Growth and Economic Available to the Public Development, a topic closely related to many of the issues dis- Of the many other examples of cussed here. analyses and audits of programs affecting American cities, there is one which was recently completed Urban Reports New for GAO and two others which are currently underway. These will serve Over the past several years, to illustrate the literally dozens of GAO has conducted a number of reports dealing with Federal studies and provided a series of re- policies and programs affecting ports to the Congress that will American cities which GAO makes provide assistance in the legisla- each year and which are available tive deliberations necessary for not only to our Congress but also implementation of an effective na- to the executive branch of the tional urban policy. These studies Government and to the general include audits and evaluations of public as well. existing urban-related Federal Last September, GAO issued a programs-such as general rev- report entitled “Environmental enue sharing, housing programs, Reviews Done by Communities: employment and training Are They Needed? Are They programs-as well as analyses of Adequate?” In this report, we at- longer term problems, as was the tempted to take a sympathetic but case in the study of the fiscal out- realistic look at the problems look of New York City. communities face in dealing with GAO will continue to undertake the environmental impact reviews

4 GAO ReviewlSpring 1978 FUTURE OF THE AMERICAN CITY which they are required to make In another study currently as a condition for receiving com- underway, we are attempting to munity development block grants. evaluate the major factors affect- GAO questioned the need for ing middle-income families' ability many of these environmental re- to afford a new home. The average views and made recommendations selling price for new homes, aimed at eliminating them, includ- nationwide, has risen above the ing one recommendation which, $51,000 mark. How is this affect- interestingly enough, would ing the ability of families to own eliminate such reviews for local their homes? In this study GAO is beautification projects and social particularly interested in looking service projects. at the impact that governmental regulations, zoning ordinances, Currently, GAO is making a building codes, and so forth, have comprehensive study of the prob- on the price of new homes. lem of abandoned housing in U.S. It must be added that while cities. In this study, we are review- these examples have been limited ing the problem in 201 cities, in- to the problems of large cities, cluding Philadelphia, to determine these urban problems also apply to the severity of and possible ways older cities of any size. In our na- to ameliorate the housing aban- tional passion for newness and donment problem. Overall infor- change, we have tended to dis- mation on this subject, inci- count the economic and social ad- dentally, has never been developed vantages of our existing com- in any comprehensive manner. munities. An effective national GAO's work to date indicates that urban policy must be a policy that housing abandonment is a major stresses the preservation and re- national problem; there is no na- vitalization of all our existing tional strategy to combat the prob- communities as well as the or- lem; and the cities which have dered and efficient development made some efforts to deal with the necessary for the continued growth problem have met with little or no and economic prosperity of our success. Nation.

GAO ReviewiSpring 1978 5 LARRY A. HERRMANN

GAO's Space Renovation Effort: Project Management in the Real World

Within the last 6 years the some several times. Over 4,000 General Accounting Office head- telephones have been installed, quarters has succeeded in provid- moved, upgraded, or rearranged. ing a working environment that However, these statistics do not rivals that of any Federal instal- begin to reflect the compromises, lation in convenience, privacy, the confrontations, the successes and good treatment of employees and the disappointments that the at all levels. Office of Administrative Services While GAO spends a great deal staff experienced with this reno- of its time and resources on au- vation effort. diting the administrative serv- Why was the renovation under- ices as practiced in other agen- taken at all? Those who were in cies and as provided by the Gen- GAO 10 or 12 years ago can read- eral Services Administration ily explain, and some photo- (GSA), rarely do the administra- graphs still exist to confirm the tive efforts of GAO get pub- reason. The building had not had licized. This article is an attempt major attention since its con- to give some facts, opinions, re- struction in 1949-50. Seven- flections, and insights into the foot-high plasterboard walls were space renovation effort that GAO a standard-such as it was- has been involved in since 1972. alternating with the low, green The statistics of the renovation metal partitions with corrugated effort are easy enough to deal plastic tops. Gray linoleum, ap- with. Over 450,000 square feet of parently originally specified for space have been renovated and battleships, covered every hori- furnished at a total cost exceed- zontal surface. Walls were the ing $3,216,000. Over 10,000 pale green of the operating room pieces of new furniture have been when they were not a dull beige; purchased and a nearly equal sometimes it was difficult to tell, amount declared surplus to since GSA then painted only GAO's needs. Over 11 acres of every 10 years or so and the carpet have been installed. Over painted walls defied cleaning, 1,900 people have been moved, since they tended to lose their

Mr. Herrmann has been director, Office of Administrative Services, since 1975, having served in several positions in the support services areas since joining GAO in 1966. He holds a B.A. degree in political science from Drake University and an M.P.A. from George Washington University.

6 GAO ReviewlSpring 1978 GAO SPACE RENOVATION finish and surface. Furniture was shields-affectionately known as the stolid, serviceable dark green “hog troughs” by those who lived with those same linoleum tops; with them-shining their not- for variety, some medium gray very-strong light upward, to be was interspersed here and there reflected downward from sup- because the Government at some posedly white ceilings. However, point daringly changed its stand- the ceilings were seldom white, ard from green to gray. given the soot that the heating Add to this less-than-stim- system emitted; when they were ulating environment the prob- white it was because they had lems of hot and cold spots, wind been painted so often that the tunnels, and the way the random, acoustical properties of the ceil- impromptu offices were laid out. ing had been lost entirely. Because the building had been The quality of individual work designed essentially as an open spaces varied widely. Few people area with enclosed offices lining below the GS-15 level had any only the perimeter, everything in work space that they could call the air conditioning and heating their own, unless a desk in an of- system followed that concept. In fice occupied by three or four the air conditioning system, re- other people would qualify; often turn air was drawn through the four GS-13s would be found to- area, over the shoulders of the gether. There was no privacy and occupants, to a very few large air one telephone might be shared by return ducts. As interior dividing all of the occupants. The phones walls increased in number and rang incessantly, throughout a complexity, the air had more and work area, and getting an answer more difficulty finding its way to was a sometimes thing. As late as its destination. Wind tunnels of 1968, one could stand at one spot great strength were created at on the fifth floor and see nearly many locations; one at the east 500 employees in the transporta- end of the 6400 corridor became tion audit function going about almost legendary for its strength their daily activities. and consistency. Surprisingly, very few people The heating and cooling system complained. The leadership of the was also peculiar in its layout transportation audit organization and control mechanisms (a prob- did finally ask, somewhat tenta- lem that remains today). On tively, that their space be sub- some floors there are separate divided so only 250 or so people systems at each corner of the could see each other, but such building. While this was partly outbursts were rare. Those who intended to deal with the warm- had written their initials on their ing effects of the sun on the east walls when hired by GAO could and south sides, the results could complain that they were still best be described as spotty. there 8 years later, but such re- The lighting system consisted negades were also relatively of inverted, curved plastic unusual.

GAO ReuiewlSpring 1978 7 CAO SPACE RENOVATION

Why employees tolerated such well in that environment. Newer conditions for so long probably staff members began to raise has many explanations. Some questions of whether it was not who had been around since the foolish to spend so much on relate 1930s persisted in pointing cruiting and training highly out how well off everyone was qualified staff members, only to now, compared to “the good old put them in a working environ- days” in GAO; they were thank- ment guaranteed to provide ful for a job and a place to work. maximum discomfort, maximum Younger employees were not see- drabness, and maximum distrac- ing anything much better in the tions from their work efforts. agencies they visited or audited; These factors and the strong de- after all, gray, green and beige sire of the Comptroller General colors and linoleum floors were and the Director of the Office of prevalent. And, finally, there was Administrative Planning and a sense of futility on everyone’s Services to do something about part about doing anything eco- this situation led to the first con- nomically feasible that would gressional request for funds spe- help the heating and air condi- cifically for this purpose in 1971. tioning situation. Very few seemed to oppose the Several things happened change to a more productive and around 1971 that brought about attractive working environment, the major changes that have been although comments like “Just seen since. For the first time, give me a peach crate to work on GSA took note of the growing and I’ll be happy” continued until movement towards “office land- recently (and perhaps can still be scaping” and participated in a heard). demonstration project by the De- However, the actual design of partment of Labor that happened the change and the approach that to be located-and is still we would take was the subject of located-on the first floor of the perhaps as much honest debate, GAO Building; carpet, bright col- misunderstanding, poor com- ors, sound baffles, and even live munication, bruised feelings, and plants were among the foreign com promi se-a1 w ays compro- objects found in the conception of mise-as any audit work that how an office should look. GSA GAO might do or imagine itself followed this with their “Office doing. Excellence” program which was However, this had the added to provide an integrated program dimensions of (1) being largely a of design concepts-but more matter of taste and judgment, about that later. Several with few right or wrong answers suppliers, having seen the poten- or “objective standards,” (2) tial of open landscaping in the being partly a matter of expense, private sector, began to design which we found became a very portable partitioning and furni- abstract problem as far as some ture and equipment that worked staff members were concerned, a GAO ReviewlSpring 1978 GAO SPACE RENOVATION and (3) requiring some reduced This relatively austere ap- status and inconvenience for proach, in addition to protecting higher level people in the organi- the interests of the taxpayer, has zation, with few offsetting per- proven a wise one in terms of com- sonal benefits. None of these was pleting the program. At least one likely to make for an effortless congressional appropriations sub- solution to the challenge we committee staff director insisted faced. on touring our facilities around The final approach that the time of our appropriations evolved and that has been con- hearing; as so often happens in the sistently followed involved the budget review process, “Other Ob- resolution of many issues. jects” looked like a large amount and one readily susceptible to cut- ting. The cuts were never made or The Luxury-Austerity Issue even suggested in the hearings themselves, indicating that the How elaborate and expensive GAO approach satisfied a congres- should GAO’s remodeling effort sional staff which works in far be? There were certainly many worse conditions than GAO’s pro- models available from the private fessional staff now does. sector which supported the argument that most of this construction and furnishing was nonrecur- The Office-Constructed-of- ring and not very costly when Portable-Partitioning Issue amortized over many years; therefore, it could be relatively opulent. Perhaps nothing in the planning The argument was often made raised as many questions as the that any amount spent per indi- use of 6-foot high portable parti- vidual work station would be a tioning and the type chosen. tiny fraction of the cost of recruit- From the beginning, one of the ing and training when unsatisfac- main goals of the design was tory working conditions might maximum flexibility. For years, contribute to someone leaving. what little renovation had been Nevertheless, GAO chose a level of done had required plasterboard remodeling that leaned to the con- partitioning to be torn down and servative side. The carpet that was rebuilt-an extremely messy, dis- selected was a serviceable com- ruptive, expensive, and time- mercial grade from the GSA Sup- consuming job. (Fortunately, from ply Schedule; the furniture was the facilities staff standpoint, also from the new “Office Excel- there had been little of it.) With lence” line introduced by GSA. GAO’s changing organization at The portable partitions that were the time the renovation program selected are the ultimate in inex- began, it was clear that the pensive and maintenance-free sur- facilities staff could not reasonably faces (although not without their keep up with that approach, either own kind of costs). logistically or financially; even at

GAO ReviewlSpring 1978 9 GAO SPACE RENOVATION

that time GAO was being charged erable doubt by acoustical en- about $30 per lineal foot to erect a gineering consultants). At the foot of plasterboard partitioning same time they were expensive- and about $5 per lineal foot to tear at least as expensive as plaster- one down. (Paint and doors were board construction-and their fab- extra, of course.) ric surfaces made them subject to A second goal was a relatively maintenance problems. Most were private working area for each em- intended as screens, rather than ployee. Although there were-and for creating an interlocking “of- probably still are-those who fice” effect. Most had no provision claim that having several profes- for shelves, and most had extended sional staff members working in a feet that made furniture place- room together enhances profes- ment somewhat difficult. sional development and the inter- The solution to partitioning was change of ideas, the majority the vinyl-clad particle board with seemed to crave a place where attached shelving that was they could work relatively unin- selected. Purchased directly by terrupted, with sufficient storage GAO on a series of competitive and table space to deal efficiently procurements, two suppliers have with their working tools. Under furnished the thousands of feet of the best of circumstances, and if partitioning that were installed, cost were no object, that might providing a variety of color and have been private, ceiling-high “accent panel” design choices. plasterboard offices with doors. The peculiarities of the heating and air conditioning system, the The Office Size Issue size of the offices that could be af- forded from a space rental When seen in all of its aspects, standpoint and that met any kind no change from previous practice of commercial or GSA occupancy evoked such a strong reaction as standard, and the problems of flex- this one. Here, whole new aspects ibility all precluded that. Instead, of the personalities and psychic a configuration of individual needs of some of our staff members “modules”-a term whose origins were starkly revealed. are obscure in this context-and The modules were relatively lit- numerous small conference rooms tle trouble, since everyone affected was the compromise that emerged. was somewhat better off than be- The type of partitioning was a fore. However, one initial design related issue. At the time the ren- concept was unduly optimistic. A ovation began, there were few pattern of 8’ x 8’ and 8’ x 12’ mod- choices on the market. Most were ules was created, with the smaller of a soft fabric, usually burlap, intended for those at the GS-11 with interlocking metal or wooden level and below and the larger in- frames. They were widely touted tended for the GS-12 through as having a good acoustical effect GS-14 level. (This is not the place (a contention since put in consid- to philosophize about the role of

10 GAO ReviewlSpring 1978 GAO SPACE RENOVATION

Old working space.

New working space.

GAO ReviewlSpring 1978 11 GAO SPACE RENOVATION

such status symbols in a windows?”, is much too volatile democracy-GSA standards and to discuss here.) corporate practice almost univer- sally recognize them. Besides, those above the GS-12 level were The Kind-of-Ceiling Issue perceived as needing more work

room and more room for visitors Only here did the.tunne1 vision , and small conferences.) The two of “we’ve always done it that way” sizes were based on the naive as- become a major problem. GSA, sumption that the space planning which did the final design work staff could keep up with promo- and supervised the construction tions: when someone was promoted because of its custody of the build- from GS-11 to GS-12, an appro- ing, was used to using the flat ceil- priate module could be created by ing with recessed square lights converting three 8’ x 8’ modules in that was typical at that time. It a row to two 8’ x 12’ modules. Of was relatively inexpensive to in- course, it did not work that way stall but gave little flexibility as to and probably could not have; the light placement and provided no needs and operational patterns of improvement in the air return the agency are not that orderly. problem. Coincidentally, a man- The offices on the perimeter of ufacturer introduced the ceiling the building were another mat- now being used which has the air ter. Apparently since the build- return ducts built in as small ing was built, the pattern had openings above the light fixtures been to have two secretaries in and the air feed bars disguised in an office with a window, flanked the black dividing channels be- on either side by a 325-square- tween the flat panels; the recessed, foot office usually occupied by coffered or dome effect of the light GS-15s or above. This far ex- units also improves acoustical ceeded GSA space standards; a properties by trapping some of the room-by-room survey revealed ricocheting sound. Only detailed that it also far exceeded real cost comparisons and the strongest needs. A design was devised persuasion applied to GSA per- whereby the perimeter offices mitted the installation of the ceil- were cut back to about 225 ing we are now using-a ceiling square feet, with the secretarial that largely solved our air return work station located on the cor- problem and that has since become ridor in front of the principal’s of- a standard in some new Federal fice; in this way three principals buildings. and three secretaries were ac- commodated where two of each had been previously. It is suffi- The Live Plant Issue cient to repeat that no part of the renovation program evoked such Emerging with the office land- strong interest and response. (A scaping concept and as a general sub-issue, “Who should get the sign of the times was the place-

12 GAO ReviewlSpring 1978 GAO SPACE RENOVATION

Typical corridor before renovation.

Typical corridor after renovation.

GAO ReviewlSpring I978 13 I GAO SPACE RENOVATION

ment of live plants in working en- These issues were rarely decided vironments. There was a strong in a few minutes. Each required reaction from some quarters that research. Each required careful this was frivolous and inappro- consideration of possible employee, priate to the austere-or congressional, and public reaction. business-like, if you prefer-image Each required keeping many GAO GAO should try to maintain. Al- officials informed of the course we though the dollar cost was rela- planned to take and the reason for tively modest as a percentage of it. Many required selling and per- the renovation effort, the feelings suasion. were strong and persisted. The It was in the framework of these relatively restrained plant place- decisions, which evolved over time, ment program has been continued that the actual planning, design, throughout the projects and has construction, and occupancy took been supplemented by many pri- place. It would be nice to claim vately owned plants in private of- that this process was neat and or- fices and on secretarial desks. Ap- derly. It was not. Few actions by parently most of the staff has come the space planning staff could take to accept and like the addition place independently. GSA had to plants made to the appearance of complete its specifications and the office environment. award contracts for ceiling and wall construction. GSA had to assure completion of construction in The “Should We Keep the a timely manner; partitioning con- Furniture?” Issue tractors had to deliver partitioning when specified; and the GSA Fed- A variation on the “Just give me eral Supply Service had to provide a peach crate” theme, this thousands of pieces of furniture, suggested that the furniture that not too early (because of the short- GAO had was still serviceable and, age of storage space) and not too therefore, should be used in con- late (because there would be noth- junction with the new partitioning to sit on and no place to work). ing, carpeting, and generally im- The carpet suppliers had to be on proved environment. However, the time or the modular office parti- GSA personal property disposal tioning installation could not take program provided a mechanism place. The carpet installers had to whereby GAO’s old furniture could be out of the way before the tele- be productively used by other Fed- phone and partitioning installers eral agencies, or, failing that, by a could proceed. Viewed in the State or local government. In fact, abstract, this was pure project the vast majority was taken by management, with a variety of other agencies and either used “as tracking tools available to help i,” or refinished; virtually all fur- out; viewed in the real world, it niture was used productively by was a series of crises, delays, con- some other Government agency at frontations, and communications some level. problems between contractors,

14 GAO ReviewlSpring 1978 GAO SPACE RENOVATION subcontractors, other suppliers, “sidewalk superintendents,” and each ac- GSA, and the customer (GAO). tion became a precedent to be applied, Add to this lead times as long as 5 sometimes retroactively, throughout the months for carpet and furniture projects. A slight variation on this OC- curred with a high-level official who had delivery and 8 to 10 months for perfectly good, but slightly used, furni- design-not construction, just ture; upon discovering that his counter- design-of the projects by GSA, part in another area was receiving new and an element of excitement furniture, he simply contacted the la- quickly crept into the process. borer staff and appropriated the new furniture, already set in place, for his own use. This missing furniture was quickly Gray-Hair Days tracked down by an amazed facilities staff and returned to its intended loca- Special days stand out in the tion. minds of the staff (not more than D. The days the movers showed up but five people) who at any one time might as well not have. Every move, no oversaw and now oversee these matter how well planned, has its projects: traumas, if only because of the uncertainties from the expected. None topped A. The day the partitioning wasn’t fire- the temporary relocation of the Financial proof any more. The partitioning contract and General Management Studies Divi- had clearly spelled out accepted Federal sion to the Chester Arthur Building. specifications for fire rating for the port- Inexperienced help, too little help, and able partitioning. Somewhat inexperi- general failure by the contractor led to enced in this kind of procurement, GAO 14-hour workdays throughout the did not insist on testing the partitioning weekend and a move about 90-percent actually delivered. It was only when a completed by Monday morning. Problems supplier’s employee left his organization were corrected in a few days, but not and moved to a competitor that we first without a residue of disappointment on heard the suspicion that the panels did everyone’s part. not meet the fire-rating specifications. E. The day GSA changed the furniture The suspicion proved to be well-founded. choices. The “Office Excellence” program, After much haggling and threats of legal originally touted as offering a large vari- action, the panels were replaced by the ety of metal furniture colors and fabric contractor. choices, quickly ran into trouble. Metal B. The day the carpet disappeared. On furniture color choices were quickly one project tile-type carpet squares were reduced to basic black or basic beige. used as an experiment. Installed on Furniture top choices, once made up of Friday, they were no longer there on several choices of simulated wood Monday morning, having been care- which could go with various metal fully pulled up and stolen by someone. colors, quickly became a single choice Of course replacement was the only that went with black and a single choice. choice that went with beige. Fabric C. The day the furniture disappeared. colors and designs also changed, mak- Very early in the life of the projects it being continuity impossible when new came clear how much attention each st& pieces were required. Fortunately the member was paying to the amenities that conservative course of using only each other staff member received; every black metal furniture from the begin- action was scrutinized by several ning reduced the appearance problem

GAO ReviewlSpring 1978 15 GAO SPACE RENOVATION

to the inability to match fabrics and Personnel Development and Serv- tops. ices, creation of a full-scale train- While this renovation work has ing facility, and relocation of some been going on in the headquarters audit activities may all take place office, work has continued in field with that acquisition. Upgrading offices, too. Virtually every re- the design of some completed gional and overseas office has been projects-both in the sense of extensively remodeled in the last interior decoration and in the few years. The standards that sense of overall work-flow design have evolved there are a little dif- and layout-is a certainty for the ferent than those for headquarters, next few years. Continuing effort both because of the way the field in the field offices is also assured. offices work and because each And, finally, the many small day- building is different in the design to-day space changes that do not challenge it presents. even qualify as part of the major Where do the projects go from renovation projects that have been here? At least an additional 70,000 described will continue to be the square feet of space is assured in concern of the Space Management the GAO Building in the next few Section, Office of Administrative months. Relocation of the Office of Services.

Success

The price of success must continue to be diligence, effort, ability, concentration, and sweat. Sometimes we tend to confuse a guarantee of opportunity with a guarantee of success.

Jack L. Davidson

16 GAO ReviewlSpring 1978 STEVEN MERRllT

Standard Definitions: Missing and Needed Software Tools

This article discusses the need for standard definitions in the area of computer software.

The “software” (programs) that software area: the field is new, makes Federal computers run is and terms mean different things now recognized as a management to different people. Moreover, the problem that is greater than the field has moved so fast that actual computers (“hardware”) standards organizations can’t themselves. The ADP group of keep up. The most recent publi- FGMSD-early to recognize the cation of standard definitions- problem-has published several the ANSI Vocabulary1-is now 8 reports to the Congress on soft- years old. ware problems, including “Ac- To illustrate the many mean- quisition and Use of Software ings software terms can have, I Products for Automatic Data will use five: maintenance, con- Processing Systems in the Fed- version, modification, migration, eral Government” (B- 115369, and documentation. June 30, 1971), “Millions in Sav- A discussion of the software ings Possible in Converting Pro- life cycle will set the stage for grams From One Computer to discussion of the definition Another” (FGMSD-77-34, Sept. examples. Figure 1 shows a per- 15, 19771, and “The Federal ception of the software life cycle. Software Exchange Program-A A software system has an incep- Small Step in Improving Com- puter Program Sharing” ANSI, Vocabulary for Information Proc- (FGMSD-78-11, Jan. 13,1978). essing (X3.12- 1970, FIPS- 1I), N.Y.: Terminology is a constant diffi- American National Standards Institute, culty with audit work in the Inc., 1970.

Steven Merritt is an operations research analyst in the ADP group of the Fi- nancial and General Management Studies Division. He holds a doctorate from George Washington University and the Certified Data Processor certificate. He came to GAO in November 1974 after operations research and engineering experience in the Department of the Army.

GAO ReviewlSpring 1978 17 STANDARD ADP DEFINITIONS NEEDED

FIGURE 1 THE SOFTWARE LIFE CYCLE

FIGURE 2 THE SOFTWARE LIFE CYCLE WITH DETAIL ADDED

LEVELOF EFFORT

(STAFF TIME PER UNIT CALENDAR TIMEJ

INCEPTION DELIVERY FIRST THROWAWAY PRODUCTION

18 GAO RcuiewlSpring 1978

I STANDARD ADP DEFINITIONS NEEDED tion, a time at which it goes into 1. “Any activity intended to eliminate production (hopefully soon after faults or to keep hardware or pro- delivery); maintenance effort; grams in satisfactory working condition, including tests, measurements, modification efforts; possible replacements, adjustments, and re- migration(s) to a different hard- pairs.” ware environment(s); and even- 2. “See corrective maintenance, emer- tually throwaway. During the gency maintenance, file maintenance, life, different levels of effort will preventive maintenance, scheduled be applied. The vertical axes of maintenance.” figures 1 and 2 measure level of (The ANSI publication does not relate effort in units of staff time per maintenance specifically to software.) unit calendar time (for example, 3. Software maintenance is any work person-hours per week). The area done on software aRer first production under the level-of-effort curve in of user output. both figures is simply total staff 4. Software maintenance is any work time spent on the software dur- done on software after first production ing its life, i.e.: of user output, except conversion. 5. Software maintenance is work done on PERSON-HRS = software first production of user output PERSON-HRS-PER-WK in only these categories: times WEEKS A. Making the software do what it was Figure 2 adds some detail to originally supposed to do, but which figure 1 to point out the delivery the delivered version did not do. instant as the end of parallel op- E. Fixing discovered errors in what it eration with the predecessor sys- does. tem. For example, the first pay C. Turning the software to make it do period when the new payroll sys- what it does more efficiently (less machine time, less core). tem prints the checks “all by it- D. Modifying it to do more or different self’ is the delivery instant. Ef- end-user functions than it was orig- fort before this instant is de- inally supposed to do. velopment; later effort is post- development or post-first- (A through D are roughly the same as #4 production. above.) With this life-cycle view in 6. Same as 5 above but A, B, C only -D hand we can proceed to discuss would be separated from maintenance and called modification. maintenance, conversion, modifi- 7. Same as 5 above plus conversion. This, cation, migration, and documen- of course, gets us back to the “any tation. work done” of #3, which includes conversion. Maintenance Discussion of the The term “maintenance” can Definitions of Maintenance have different meanings for software. The first two shown below So, we now have several possible are from the ANSI Vocabulary; meanings for software mainte- the others are mine. nance, with attendant possibilities

GAO ReviewulSpring 1978 19 STANDARD ADP DEFINITIONS NEEDED

for confusion in discussion and on At any rate, a modern standard contracts. Yet, even in everyday definition of what is included in life, maintenance has different software maintenance would be meanings. In automotive terms, useful. maintenance can mean either “fix it when it’s broken” (e.g., flat tire: repairs) or “maintain it so it won’t Conversion and Migration break” (e.g., change the oil: preventive maintemnce). Continuing Views of Conversion the automotive idea, “maintenance” would not include such Software conversion is a subject “changes to end user functions” as of considerable interest nowadays adding pollution equipment, ad- because of its impact on the evalu- ding a CB radio, or installing air ation of hardware procurement al- shocks: these would be called ternatives. However, my discus- “modifications” or “customizing.” sion here makes no prescriptions My opinions on the possible soft- for treating conversion in pro- ware maintenance definitions fol- curements and none should be in- low, ferred from it. The ANSI definition is very Applications software is con- hardware-oriented and I think it verted in two situations: unsatisfactory for software. 1. When an installation wants to Using it for software would mean move its entire applications only fixing bugs I (5B)above) al- software inventory to another though “replacements” and “ad- computing environment, e.g., justments” might be taken to to replacement hardware. mean modifications and tuning, 2. When an installation wants to respectively. bring in a program that was I believe that definition #4 written elsewhere to avoid above, which includes modifica- developing its own (i.e., the tion, but does not include conver- software sharing situation). sion, is more commonly under- Figure 3 shows a view of the stood by “software people” than first situation, figure 4 a view of any of the others. the second. In figure 3 a given in- I would personally prefer to de- stallation moves “everything” to a fine three activities wherein new environment; in figure 4 a program or set of programs is -maintenance does not change moved from one installation to what the software does for another with both installations’ the end user, hardwares and inventories proba- -modification does change bly remaining otherwise the same what the software does for afterward. the end user, and moves the ’Oft- ware to a different comput- Possible Definitions of Conversion? ing environment. The ANSI vocabulary contains

20 GAO ReviewlSpring 1978 STANDARD ADP DEFINITIONS NEEDED

FIGURE 3 A VIEW OF A TYPICAL INSTALLATION’S MIGRATION TO ANOTHER COMPUTING ENVIRONMENT

A. SOURCE (OLD) B. TARGET (NEW) ENVIRONMENT ENVIRONMENT

OLD HARDWARE I DIFFERENT HARDWARE OLD SYS. SOFT. I .. C DIFFERENT SYS.SOFT. 0 OLD PEOPLE c“ TS RETRAINED PEOPLE H I OLD APPL. SOFT. INVENTORY A- E+ DIFFERENT APPL. SOFT. INVENTORY T 5 -CONVERTED I F -REWRITTEN 0 -NEW I: R 1 OLD USER OUTPUTS DIFFERENT USER OUTPUTS -SOME THE SAME -SOME CHANGED -SOME DELETED -SOME ADDED

FIGURE 4

A VIEW OF SOFTWARE SHARING

A. ORIGINATING B. TARGET (SHARING, RECEIVING) ENVl RONMENT ENVIRONMENT

HARDWARE C HARDWARE M 0 SYS SOFT I S SYS. SOFT G T PEOPLE R I PEOPLE A E 8 X RETRAINED T F APPL. SOFT. INV. I F/ APPL. SOFT. INV.

AbP. PROG. X 6 APP. PROG. X’ T neither the word “conversion” nor on another computer of a different make the phrase “software conversion.” or model.”2 The GAO software conversion report says on p. 1: GAO, “Millions in Savings Possible in “One part of software cost that is large Converting Programs From One Com- and not directly productive is called con- puter to Another” (FGMSD-77-34. Sept. version cost. This is incurred to make 15, 19771, Washington, D.C., U.S. Gen- programs devised for one computer work eral Accounting Office.

GAO ReuiewlSpring 1978 21 STANDARD ADP DEFINITIONS NEEDED

“Software conversion is the act of mak- dominate in the Federal Gov- ing computer programs run on some ernment. During the migration computer other than the one for which from the old to the new environ- they were originally devised.* * * “Application programs are converted ment, many different activities when often go on. For example, COBOL 1) a replacement computer has been programs and their files may be acquired and modified just enough to make 2) where it is desired to share a pro- them work on the new system, gram that was written at another FORTRAN programs likewise pla~e.”~ (with attendant precision consideration~~),and assembler programs may be rewritten in the Discussion of the Available assembler of the new system or in Conversion Definitions a higher level language. People Referring again to figure disagree on what activities shall 3-the change of computing be included in costs of conversion, environment-I would like to and on how broad a meaning the bring up another term, migra- term “conversion” should have. tion, shown in figure 5. Thus, we So I use the broader term, “mig- will now speak of the total costs ration,” including, but not solely, to get from the old to the new en- conversion. I personally prefer to vironment as migration costs. In- divide migration somewhat along cluded within migration costs are these lines: conversion costs; whether or not -Site preparation. the two are synonyms depends, of -Redesign of programs and course, upon one’s definition of conversion costs. applications. An installation will often have -Rewriting of programs (e.g., applications written in FOR- assembler). TRAN, COBOL, assembler, and -Conversion (e.g., COBOL- DBMS. So far, the first three to-COBOL, FORTRAN-to- FORTRAN). FIGURE 5 -Training (ADP people). A VIEW OF THE COSTS OF AN INSTALLATION -Training (users). MOVING TO A REPLACEMENT SYSTEM I can illustrate a couple of points with a small example. OTHER COSTS Figure 6 shows a small FOR- TRAN program which adds up real numbers and prints their

Precision in this context means the number of digits in a numerical result.

MIGRATION COSTS ITOTALl Different brands of computers may, by default, yield different precision in FOR- TRAN results, due to their different 3 Ibid.. p. 1 internal construction.

22 GAO ReuiewlSpring 1978 I STANDARD ADP DEFINITIONS NEEDED average. 6A is the IBM im- include using disks on the new plementation. I claim that mov- system instead of the tape used ing it to a CDC66005 environ- on the old, using computer output ment as shown in 6B is microfiche and/or video terminals conuersion-changing it only instead of paper output, redesign- enough to make it give the same ing batch-mode applications to be answers in its new environment. real-time, and adding new appli- I claim that changing it to the cations. Some of the many ac- CDC version shown in 6C is both tivities involved can readily be conversion and redesign because labeled “conversion costs,” while changing it thus adds new user others cause much argument. A outputs. (And I have avoided firm which is in the “conversion treating precision by clever business” refers to “system trans- choice of an example: IBM single formation services.” They have precision is enough in the origi- another term for the software nal version, and by moving to a sharing situation, “transloca- CDC machine, I maintain tion.” adequate precision, and need do I would personally prefer to nothing about it.) Clearly, both separate conversion from other 6B and 6C are not complete re- migration costs. The “straw per- writes, since most of the code is son” definition below is rooted in the same as it was in 6A. Clearly, this preference and my desire for also, the job control language as clean a definition as possible. I (JCL would be completely dif- think it can apply equally well to ferent for situations 6B and 6C the change-of-equipment and the from that in situation 6A software sharing situations. (SCOPE instead of IBM JCL 8). Software conversion is work done to However, the real world does make software duplicate the end-user not contain many (any?) migra- results from the same inputs on the tion situations which are as clean target computing environment (“new as my simple example. A computer”) that it produced on the plethora of needs or desires be- original computing environment (“old sides COBOL-to-COBOL conver- computer”). sion may complicate the migra- Qualifiers could include “with a tion to the new system. Examples major part of the human- readable source text unchanged” Control Data Corporation 6600. or, “This does not include com- EAjob control language is a “lan- plete recoding from the flow guage’’ of control statements which the charts of the original environ- programer must use to direct the comment,” to clearly rule out recod- puter to run hidher program. Each man- ing of assembler applications in a ufacturer’s is different. different assembler or rewriting SCOPE: Supervisory Control of Pro- a FORTRAN program in ALGOL. gram Execution-a CDC JCL. I do not personally wish to call * JCL: Job Control Language-IBM’s either of those two “conversions”; own JCL. one might call them “design mig-

GAO ReviewlSpring 1978 23 STANDARD ADP DEFINITIONS NEEDED I I 6A. IgM-G_RSgN: c-- PROGRAM TO CALCULATE & DISPLAY THE AVERAGE OF A GROUP C OF REAL NUMBERS. C 1) PRECISION: SIX DIGITS IS ENOUGH 2) VARIABLE TYPING: C DEFAULT 4) DATE WRITTEN JAN 78. C 5) ENVIRONMENT: IBM 370-145; WATFIV COMPILER C 6) KNOWN LIM'S: LARGEST INPUT NUMBER 99999. W/ DEC PT. C EXPLICITLY PUNCHED; 9999.99 W/ DEFAULT ;; 1000 C INPUT NUMBERS MAX. C DATA SUMREL /O.O/, COUNT /O.O/ C DO 33 I = 1, 1000 READ (5, 10, END = 999) RELNUM SUMREL = SUMREL + RELNUM COUNT = COUNT + 1.0 33 CONTINUE

999 CONTINUE AVERAG = SUMREL/COUNT WRITE (6, 20) AVERAG STOP c---- INPUT 10 FORMAT (F6.2) C - - - - OUTPUT 20 FORMAT (1H0, l2HAVERAGE IS , F8.2) END

6B. CDC VERSION/SAME USER OUTPUT:

PROGRAM RELSUM (INPUTrOUTPUT,TAPE5=INPUT, TAPE6=OUTPUT) CCC C C - - PROGRAM TO CALCULATE ti DISPLAY THE AVERAGE OF A GROUP C OF REAL NUMBERS. C 1) PRECISION: SIX DIGITS IS ENOUGH 2) VARIABLE TYPING: C DEFAULT 4) DATE WRITTEN JAN 78. C 5) ENVIRONMENT: CDC 6600; CDC 6000 FORTRAN EXT. COMP ccc C 6) KNOWN LIM'S: LARGEST INPUT NUMBER 99999. W/ DEC PT. C EXPLICITLY PUNCHED: 9999.99 W/ DEFAULT ;; 1000 C INPUT NUMBERS MAX. C DATA SUMREL /O.O/, COUNT /O.O/ C DO 33 I = 1, 1000 READ (5, 10) RELNUM ccc IF (EOF) 999, 331 ccc 331 CONTINUE ccc SUMREL = SUMREL + RELNUM COUNT = COUNT + 1.0 33 CONTINUE

999 CONTINUE AVERAG = SUMREL/COUNT WRITE (6, 20) AVERAG STOP c---- INPUT 10 FORMAT (F6.2) c---- OUTPUT 20 FORMAT (lHO, 12HAVERAGE IS , F8.2) END 24 GAO ReuiewlSpring 1978 STANDARD ADP DEFINITIONS NEEDED

6C. CDC VERSION/ CONVERSION AND REDESIGN:

PROGRAM RELSUM (INPUT,OUTPUT,TAPE5=INPUT, TAPEG=OUTPUT) CCC C c-- PROGRAM TO CALCULATE & DISPLAY THE AVERAGE OF A GROUP C OF REAL NUMBERS, AND THEIR MAX AND MIN. RRR C MOD #1: MAX & MIN ADDED JAN 21, 78 RRR C 1) PRECISION: SIX DIGITS IS ENOUGH 2) VARIABLE TYPING: C DEFAULT 4) DATE WRITTEN JAN 78. C 5) ENVIRONMENT: CDC 6600; CDC 6000 FORTRAN EXT. COMP ccc C 6) KNOWN LIM'S: LARGEST INPUT NUMBER 99999. W/ DEC PT. C EXPLICITLY PUNCHED; 9999.99 W/ DEFAULT ;; 1000 C INPUT NUMBERS MAX. C DATA SUMREL /O.O/, COUNT /O.O/ AMIN = +9999999. RRR AMAX = -9999999. RRR C DO 33 I = I, 1000 READ (5, 10) RELNUM ccc IF (EOF) 999, 331 ccc 331 CONTINUE ccc SUMREL = SUMREL -k RELNUM COUNT = COUNT + 1.0 IF (AMAX .LT. RELNUM) AMAX = RELNUM RRR IF (AMIN .GT. RELNUM) AMIN = RELNUM RRR 33 CONTINUE C 999 CONTINUE AVERAG = SUMREL/COUNT WRITE (6, 20) AVERAG WRITE (6, 30) AMAX, AMIN RRR STOP c-- -- INPUT 10 FORMAT (F6.2) c-- --OUTPUT 20 FORMAT (IHO, 12HAVERAGE IS , F8.2) c-- --EXTREME VALUES RRR 30 FORMAT (1H0, 8HMAX IS , F8.2, 8HMIN IS , F8.2) RRR END

_-__ ----_____- : FIGURE 6. THREE VERSIONS OF A FORTRAN PROGRAM

CCC = Lines converted from 6A

RRR = Lines considered redesigned from 6A

-_I------l_l__l-__-__

GAO ReviewlSpring 1978 25 STANDARD ADP DEFINITIONS NEEDED rations” as well as “rewrites.” 3. GAO “Working Glossary of One can easily think of complica- Software Terrn~”:~ tions in applying the above definition: for example, is it still “Documentation: Narrative, schematic, conversion (as above) if we “dup- or tabular material which accompanies a licate the end-user results” onto computer program or is embedded in it. Computer program documentation has computer output microfilm the purposes of recording and explaining: (COM) instead of paper? Concerning migrations and -The development of a computer pro- conversions, I would certainly in- gram. clude revisions to embedded -The way in which it was constructed, documentation (comments), such including important decisions be- as those done in moving from tween alternatives. figure 6A to figure 6B, in conver- -The way it is intended to operate in sion costs. Which brings us to normal, frequently encountered circumstances. documentation. -The way it is intended to operate in abnormal or infrequently encountered circumstances. Documentation -What tests have been made to verify its correctness. Some Definitions “Computer program documentation may be internal to the program in the form of: Definitions of documentation include: -Embedded comments or remarks (English which appears among the 1. From ANSI: actual program statements but does “documentation not affect the operation of the pro- 1) The creating, collecting, organizing, gram). storing,and disseminating of docu- -Self-descriptive, programer-chosen ments or the information recorded in names for variables and procedures. documents. -Well organized, ‘structured’ organi- 2) A collection of documents or informa- zation of the actual program state- tion on a given subject.” ments themselves. “software A set of computer programs, procedures, “Or external to the program in the form and possibly associated documentation Of: concerned with the operation of a data processing system, e.g., compilers, library -Flowcharts. routines, manuals, circuit diagrams. -HIP0 charts. Contrast with hardware.” Structure charts. -Narrative. 2. GAO conversion report (p. 21): -Decision tables.” “-documentation, which is material prepared to explain a computer program. 51 GAO, “A Working Glossary of Soft- Documentation is human-readable mate- ware Terms,” Washington, D.C.,U.S. rial over and above the actual code which General Accounting Office, October 1977, drives the computer.” pp. 5-6.

26 GAO ReviewlSpring 1978 STANDARD ADP DEFINITIONS NEEDED

4. Merritt trial definition for this Discussion of the Definitions paper: ANSI #2 could be used to say, Software documentation is narrative, “Software documentation is a col- tabular, or graphic material accompany- lection of documents or informa- ing, or embedded in, computer programs tion on a given collection of com- to explain their products, inputs, opera- puter software.” I do not think tion, actions, limitations, and underlying most people include documenta- assumptions and dependencies to tion in the word “software,” which humans. ANSI indicates as a possibility. The GAO definitions and my 5. FIPS PUB 38: lo definition could include documen- “Documentation provides information tation in “software” since they to support the effective management of both say “explain computer pro- ADP resources and to facilitate the inter- grams”; if so, this would express change of information. It serves to: the view that -Provide managers with technical “SOFTWARE” equals “PRO- documents to review at the signifi- GRAMS” plus “DOCUMEN- cant development milestones, to de- TATION” termine that the requirements have been met and that resources should However, I prefer to think of continue to be expended. documentation as separate from -Record technical information to software and I think most people allow coordination of later develop- do. My trial definition could be ment and uselmodification of the made shorter by ending it “to ex- software. plain them to humans”; certainly -Facilitate understanding among less verbose, and perhaps less pre- managers, developers, programmers, scriptive. I believe that FIPS’, operators, and users by providing in- GAO’s, and my definitions agree formation about maintenance, training, changes, and operation of the pretty well. The FIPS guideline software. definition would be a standard if -Inform other potential users of the the guideline were raised to functions and capabilities of the standard status. software, so that they can determine whether or not it will serve their needs.” Summary I have only touched upon software terminology. Much work and lo U.S. Department of Commerce/ National Bureau of Standards, education are needed to solve its Guidelines for Documentation of Com- problems. Meanwhile, we must be puter Programs and Automated Data Sys- very careful when we use these tems (FIPS PUB 38), February 1976, p. 5. and other terms.

GAO.ReviewlSpring 1978 27 JOSEPH S. ROSAPEPE G/2G Works of Art at GAO

Our austere headquarters building is enlivened by sculptures at the south entrance and both lobbies and by a mural on the seventh floor.

Today, examples of modern block-long structure of buff abstract sculpture decorate many limestone between G and H public and private commercial Streets and 4th and 5th Streets and institutional buildings in in northwest Washington. Washington and other American cities. These angular, geometric objects in stone or metal are Carved in Granite quite aesthetic from a modern viewpoint and require the ob- Designed by two prominent server to use his imagination, American artists in the early fif- reading into them anything he ties, the relief sculptures carved in likes. the red granite marble at the But in the 1950s and earlier, south entrance and the lobby much art represented a more elevator doors are supplemented by realistic approach to people and an example of pictorial art in the objects. Such are the bas-relief form of a large mural by Mitchell sculptures that decorate the Jameson, a noted painter, on the rounded portals of the south en- north wall of the Comptroller’s trance to the GAO building. (A conference room on the seventh detailed section of the left panel floor. is portrayed on the front and The sculptures and the painting back covers of this year’s GAO were all highly praised by the Fine Reuiew.) Arts Commission, which advises A second example of such relief the President, the Congress, and sculptures is the 8 aluminum Government agencies on designs of panels that decorate each of the public buildings and parks. 10 elevator doors in the south The two relief sculptures on the and north lobbies of the nearly rounded portals that curve around

Mr. Rosapepe is GAO’s Deputy Information Officer. He studied in Europe and at Kenyon College and Youngstown State University in Ohio, where for 6 years he served as art critic on an Ohio newspaper. He joined GAO in 1972 after 10 years at IRS. He previously served as director of information at Case Institute of Technology and the Investment Company Institute in New York.

28 GAO ReviewlSpring 1978 WORKS OF ART AT GAO

Themes represented on the right side of the GAO G St. entrance include labor and agriculture.

~~ ~ Science and education are depicted on the left side of GAO’s G St. entrance.

GAO ReviewlSpring 1978 29 WORKS OF ART AT GAO the south entrance are 15-by-9-foot the “man with the briefcase.” The panels and are carved into the red Washington Evening Star, in its granite trim that surrounds the report of the sculpture’s unveil- entire limestone building. ing in April 1952, said: The carved surface of the curved The brief case boys, familiar figures panels seems almost pink because on the Washington scene, have been of the sandy surface left when the immortalized in sculpture. One of their stone masons transferred the number forms part of two sculptured sculptor’s clay model to the per- panels flanking the south entrance. To- manent granite stone. ting his brief case he is carved in en- The two panels, entitled the during granite. “American Laborer” on the right The story in the Star referred side of the entrance and “Ameri- to “the various activities of Gov- can Professional Workers” on the ernment on which the GAO rides left, consist of 30 figures repre- herd.” The man with the brief- senting American men and case symbolized the business ac- women at their various occupations of Government and the tions. Government’s relations with pri- Here is the way James M. vate business. Goode, author of “The Outdoor The man with the brief case may be Sculpture of Washington,” de- regarded as harrassed business man scribes the work of Joseph summoned before a congressional Kiselewski, an eminent New committee. Or a happy businessman York sculptor, in the technical with a Government contract in the language of the art expert. hrief case. Or a Government official on The carvings are organized into three his way to a policy making huddle with tiers of different heights with the cen- other officials. tral tier predominating. The figures Officials of the Public Build- are stylized, executed in the simplified ings Service of the General Serv- rectilinear Art Deco manner, and or- ices Administration, which ganized into a limited number of supervised the design and con- planes. The conception of each figure is struction of the GAO Building generalized and impersonal, and much use is made of conventionalized and its relief sculptures, at the symbols. time claimed credit for the sym- The bas-reliefs are purely decorative bolism, which they said was out- in intent, providing an especially rich lined by GSA. textural surface to define the entrance area. They are subordinated to the ar- Minnesota Artist chitecture to the extent that nearby columns almost obliterate the inner Kiselewski, creator Of the en- section from view. trance sculptures, is a native of Browersville, Minnesota, who Man With Briefcase studied in New York, Paris, and Rome. He has created many mur- One of the most interesting als throughout the United States. figures-and relevant to GAO-is His works include the pediment

30 GAO ReviewlSpring 1978 WORKS OF ART AT GAO depicting fishing at the Com- 8-inch decorative panels which merce Department in Washing- represent rain, sunlight, hy- ton, a statue of George Rogers drography, geology, snow, wind, Clark in Vincennes, Indiana, and energy, and astronomy. sculpture for the Bronx County These bas-relief sculptures were courthouse in New York. done by Heinz Warneke, a native A sculpture contract for the en- of Germany, who came to the trance to the north side of the United States in 1925 and later GAO Building was awarded to became a professor of sculpture at Lee Lawrie, noted US. sculptor, the Corcoran School of Art and at who was once an instructor of George Washington University. Kiselewski. The bas-reliefs, His works include the War Memo- which were to represent many rial in Lynn, Connecticut, and various aspects of American life, sculpture in the Washington were never carried out because of Cathedral. lack of funds. Lawrie, a native of Germany, settled in Easton, Maryland, and won many awards and honors for his sculptures. These included the heroic statue of Atlas in Rockefeller Center and the statue of George Washington for the Washington Cathedral.

Cast in Aluminum Completely different are the aluminum bas-relief panels on the elevator doors of the north and south lobbies of the GAO Building. Eight panels on each door sym- bolize themes of American society, including freedom of speech, freedom of religion, liberty, spirit of laws, national security, internal development, national ideology, and justice. Each of the panels is shiny aluminum, 18 inches high and 12 inches wide. They are repeated on each of the 10 elevator doors in both the north and south lobbies. Around the framework of the slid- ing doors are smaller 6-inch and

GAO ReuiewlSpring 1978 31 I

WORKS OF ART AT GAO

.I I.

32 GAO ReviewlSpring 1978 WORKS OF ART AT GAO

Painted in 1954, the mural, 18 feet long and 10 feet high, was described by Mr. Warren in this way: The mural depicts the restored Ft. Raleigh, the cradle representing Virginia Dare * * ; * * * the Atlantic Ocean in a storm; the Dare County courthouse; Kill Devil Hill and the Wright Memorial; the Oregon Inlet Coast Guard station; the Wright plane and the first flight; a fisherman’s cottage with the nets hung out to dry; gulls; a large piece of driftwood; shells on the beach the ocean in calmer mood with an old wreck on the beach; Jockey’s Ridge and sand dunes; Pamlico Sound and fish houses and fish boats; Cape Hatteras Lighthouse; sea oats and willets on the beach. In the Delineated in Pigment lower right hand corner a bottle is washed up on the beach and the artist The third example of fine art in has placed his name on it [which happens the GAO Building is the mural on to coincide with the Irish whiskey Jame- the north wall of the Comptroller son.] General’s conference room on the Mitchell Jameson probably was seventh floor. the most colorful of the artists Entitled the “Beauty and His- represented in the GAO Build- tory of Dare County,” it depicts ing. A native of Kensington, scenes of the North Carolina coast Maryland, a suburb just north of area, the home of Lindsay Warren, Washington, he studied at the third Comptroller General and Corcoran and in Italy and Mexico eight-term Congressman. City.

GAO ReuiewlSpring I978 33 WORKS OF ART AT GAO

Winner of many honors and demonstrations. Jameson appar- awards, Jameson was a combat ently was strongly affected by artist in World War 11, the Ko- what he experienced in Vietnam, rean conflict, and the Vietnam entitling a series of drawings War, where he did many battle from that front “The Plague.” It scenes. He painted many murals was reported that these for U.S. post offices and other memories affected him so pain- public buildings and traveled in fully that they contributed to his 17 countries, making many draw- suicide in 1975. ings and paintings for Life Maga- Jameson’s mural and the bas- zine. relief sculptures by Kiselewski at His promotion to a full profes- the south entrance and by War- sorship at the University of neke on the elevator doors add an Maryland was delayed because of aura of artistic beauty to the au- a letter he wrote criticizing the stere lines of the marble, granite, university for suspending stu- and plaster walls at the GAO dents who protested in campus Building.

Press On /

Nothing in the world can take the place of persistence. Talent will not: Nothing is more common than unsuccessful men with talent. Genius will not: Unrewarded genius is almost a proverb. Education alone will not The world is full of educated derelicts. Persistence and determination alone are omnipotent.

President Calvin Coolidge

34 GAO ReuiewlSpring 1978 JACQULYN MULLINS

A Summary of Actions Taken by the AICPA to Improve the Accounting Profession

The House Subcommittee on ment which is entitled “Report of Oversight and Investigations Progress: The Institute Acts on held hearings early in 1978 to de- Recommendations for Improve- termine whether legislation ments in the Profession.” should be introduced to establish The statement discusses four additional forms of Federal regu- types of actions taken by the In- lation of the accounting profes- stitute, broadly categorized as sion. The outcome of these hear- follows.

ings should be of interest to all 0 Regulation of CPA firms. members of the accounting pro- 0 Discipline of individual CPAs. fession regardless of whether employed in the public or private e Independence of auditors. sector. Auditing standards and performance. The American Institute of Cer- Other matters. tified Public Accountants A limited explanation of each of (AICPA), which promulgates these categories is provided be- standards for the accounting pro- low. fession, is of the opinion that such legislation is unnecessary and would be counter-productive. Regulation of CPA Firms To support this opinion, the AICPA submitted a formal The AICPA has established a statement to the Subcommittee new division to provide an organi- outlining the steps which the zational structure through which AICPA has taken over the past regulatory requirements and sanc- months to respond to recommen- tions can be imposed on CPA dations for improvements made firms. This division is made up of by a number of sources. This ar- two sections, one for SEC practice ticle summarizes the major and another for private companies’ points contained in this state- practice. Participation in both sec-

~~ Ms. Mullins is a supervisory systems accountant in the Financial and General Management Studies Division. She joined GAO in September 1975 after receiving an M.B.A. degree at Syracuse University. She had previously worked for the HEW audit agency and the Department of the Army.

GAO ReviewlSpring 1978 35 AICPA ACTIONS TO IMPROVE THE PROFESSION tions is strictly voluntary and is standards to fit the circumstances open to all CPA firms. of smaller and/or privately owned Firms joining the SEC practice businesses. section are subject to the following requirements: Discipline of Individual CPAs Mandatory continuance of professional education of 40 hours a year for all pro- Measures adopted by the AICPA fessional staff. to enhance its effectiveness in dis- A mandatory peer review of the firm’s ciplining individual-member CPAs quality controls at least every 3 years include: and at such other times as may be imposed as part of a disciplinary action. The publication of the names of all members found guilty of violations of Imposition of sanctions on firms found the code of professional ethics. to be deficient in meeting the AICPA quality control standards or other re- Periodic publication of statistical sum- quirements. maries of the status of all pending disciplinary matters. Annual filing of relevant information about the firm for inclusion in files Studying of additional ways in which open to public inspection. the disciplinary machinery might be made more responsive by operating 0 Maintenance of legal liability insur- more fully within the public view. ance coverage as prescribed by the executive committee of the section. The AICPA is of the opinion A vital element of the self- that these measures, coupled with regulatory plan of the SEC prac- existing SEC regulations, disci- tice section is the appointment of a plinary actions by State boards of Public Oversight Board composed accountancy, and the pressures of five individuals from outside the stemming from civil lawsuits accounting profession. The Board against CPA firms should be more will monitor the operations of the than sufficient to assure a high SEC section and, at its own discre- level of audit performance. Con- tion, report any information, find- sequently, Federal legislation ings, views, or recommendations to should not be necessary. the executive committee of the section, SEC, the congressional com- Independence of Auditors mittees, or the public at large. The section for private com- An area of growing public con- panies’ practice is largely parallel cern is whether CPA-client rela- with the SEC practice section ex- tionships are truly independent. cept that the requirements reflect This is a difficult assessment to the different needs of the type of make since independence is ba- clients being served. Objectives of sically a mental attitude and this section are to improve the per- thus difficult to measure. Be- formance of practitioners, facili- cause of this the independence of tate participation by smaller firms the CPA is often judged upon the in the affairs of the profession, and appearances of relationships with develop ways to tailor technical clients.

36 GAO ReviewlSpring 1978 AICPA ACTIONS TO IMPROVE THE PROFESSION

In order to safeguard the ac- agreements with management on accounting profession’s independ- counting or auditing matters to a ence in both fact and appearance, proscription on performing certain types of management consulting the AICPA has developed a com- services for SEC clients. prehensive program to minimize pressures on auditors and help The AICPA believes that the preserve their independence. implementation of the above This plan contains the following measures should prevent lack of major provisions: independence from being a contributing factor to audit failures. Appointment of a special AICPA Committee to stimulate the creation and use of audit committees by cor- porations. This committee will study Auditing Standards and whether and how the AICPA can im- pose a requirement for a publicly Performance held company to have an audit committee as a condition precedent to Ten major actions are under- the auditor’s expressing his opinion way by the AICPA to improve the on the company’s financial state- effectiveness of audits. The fol- ments. lowing is a brief summary of Strong endorsement of the proposi- these actions.

tion that auditors be engaged by a 0 A special committee has been ap- corporation’s board of directors or pointed to study audit standards set- audit committee and that fee mat- ting and to recommend changes ters be dealt with by one of those which should be considered in the bodies rather than by management. way auditing standards are estab- Consideration of means of requiring lished. attendance by auditors at sharehold- 0 An intensive study of proposed mod- ers’ meetings to respond to questions ifications of the standard auditor’s relating to the audit and financial report is being conducted. The most affairs of the corporation. significant proposal relates to the Determination of ways to implement development of a revised auditor’s the SEC recommendation that the report that will more effectively substance of present information on communicate the auditor’s role and auditor changes now required for responsibilities using less technical SEC 8-K reports should also be dis- language. closed in the annual reports of public A standard has been adopted which companies. (This information relates requires auditors to report material to disagreements between manage- weaknesses in systems of internal ment and the former auditor on ac- control noted during the normal counting principles, financial state- course of an audit to the client’s ment disclosures, or audit scope.) board of directors or its audit com- Adoption by the SEC practice section mittee. Also, the concept has been for CPA firms of a number of re- endorsed that auditors should review quirements that are designed to pro- and publicly report the SEC client’s tect the independence of auditors of systems of internal control. A special SEC registrants. These require- advisory committee is working on ments range from reporting dis- the development of criteria for

GAO ReuiewlSpring 1978 37 I

I I AICPA ACTIONS TO IMPROVE THE PROFESSION

evaluating systems of internal con- develop criteria to determine when trol for purposes of public reporting. departure from generally accepted The AICPA has endorsed the concept accounting principles is required, that financial statements should due to unusual circumstances, so contain a separate footnote describ- that financial statements will not be ing uncertainties. This matter is misleading. being studied and recommendations A committee has been appointed to will be made for implementing such study the relevance of applying to a requirement. Also, a special com- smaller and/or privately owned committee has been appointed to develop panies all the same accounting examples of such footnotes and to standards required for public com- define the role of lawyers with re- panies. spect to disclosures on uncertainties A new senior technical committee caused by litigation. has been established to set standards A recommendation has been ac- for accounting and review service cepted that corporate managements engagements involving unaudited adopt policy statements on conduct financial statements. An exposure expected of their companies’ person- draft of proposed standards with re- nel and that auditors, as a separate spect to the association of CPAs with service, review and report on man- unaudited financial statements is agement’s actions to assure com- expected to be released early in pliance with its policy statement. 1978. Standards will be developed for such It is anticipated that the above reviews and reports, and a special changes will be phased in over a committee has been appointed to de- period of time in consultation velop a model for policy statements on conduct. with SEC. The AICPA has agreed that a report by management indicating the responsibilities it assumes should be Other Matters included with financial statements. A special committee will develop the It has been suggested that ac- suggested form and content of such a tivities of the AICPA should be report. made more open to the public and Statements on Auditing Standards that the number of representatives Nos. 16 and 17 have been issued to fiom the large firms serving on In- define more clearly the duties and stitute committees should be re- responsibilities of auditors in searching for and detecting fraud, duced to ensue greater represen- errors, and irregularities affecting tation of practitioners from financial statements and illegal acts smaller firms. Acting on these by clients. Also, a committee has suggestions the AICPA has taken been appointed to monitor and pub- the following actions. lish, on a continuing basis, analyses A proposal has been submitted to of the types of frauds and audit fail- AICPA members for vote, which ures that are encountered in prac- would amend the AICPA bylaws to tice. permit the addition of three public The Accounting Standards Execu- representatives as members of the tive Committee has been directed to board of directors and council.

38 GAO ReviewlSpring 1978 AICPA ACTIONS TO IMPROVE THE PROFESSION

Representation from the eight and interfered with the public’s largest firms has been reduced to right to information. In addition, five or less on each senior AICPA modification of the rule prohibiting committee. All such committees incompatible occupations and repeal have 15 or more members, and their of a rule prohibiting the initiation decisions require either a majority without prior notice of employees of or two-thirds vote. other CPA firms are being proposed. The AICPA has concurred with the removal of its authority to appoint the trustees of the Financial Ac- counting Foundation (the body that Summary and Conclusion appoints the members of the Finan- cial Accounting Standards Board). The AICPA is proposing and implementing drastic changes in Starting January 1, 1978, the meetings of nine AICPA senior commit- both its organization structure tees and the governing council, in- and the standards which it pre- cluding all deliberations and voting scribes. These changes are being on professional policies and techni- made in an environment of in- cal standards, are to be open to the creased public concern about the public. reliability of financial reporting A comprehensive reexamination has and the independence of CPAs. It been made of all AICPA rules of con- is the Institute’s contention that duct that might be challenged as not such measures will be responsive serving the public interest. Accord- to the public’s needs and thus ingly, the AICPA has proposed to its eliminate the necessity for any members that the rule prohibiting type of governmental oversight. advertising and solicitation be modified to remove virtually all re- It will be interesting to see how straints except those forbidding de- successful the Institute’s efforts ception and false statements. Critics at self-regulation are in staving had expressed concern that this rule off the threat of Federal regula- restrained competition among firms tion of the accounting profession.

GAO ReviewlSpring 1978 39 LOWELL MlNlNGER

A Commonsense Approach to Writing

This article presents some * * * but how do I go about fresh thoughts on how to go about writing this report?” writing reports. The author’s Supervisor: “What’s the matter? pitch is toward the thinking part Haven’t you read the Report of the job-thinking out the is- Manual? You know, that red- sues as well as a logical way of colored book?” presenting them. The author en- Staff member: “Er * * * Yes, Yes courages a conscious strategy for of course, I read every page, planning, actually writing, and but * * * .” later testing the written product. Supervisor: “Well then * * * and The concepts are based on what just use one of those other re- has been tried and found success- ports and ful in practice in the Detroit re- * * * .” gional office. The author ac- Staff member: “But isn’t there a knowledges his indebtedness to better way? I mean, I tried to members of the Detroit staff- read that * * * and this is an especially to C. H. Moore, re- unusual case * * * and * * * .” gional manager, who encouraged and contributed greatly to this article. Just How Do You Go About Staff member:’ “* * * pardon me Writing a Report? This paper is an attempt to fill a need of the average auditor for EDITORSNOTE This is a reprint of an some simple, down-to-earth guid- article in the winter 1972 issue of The ance on writing reports that GAO Review. “communicate.” An underlying

Mr. Mininger is an assistant director in the Office of Program Planning. He joined GAO in 1961, spent about 10 years in the Detroit regional office, and since then has had a variety of assignments at headquarters-in both line and staff capacities. He holds a B.S. degree in accounting from Bob Jones University and an M.B.A. from Wayne State University.

40 GAO ReviewlSpring 1978 COMMONSENSE APPROACH TO WRITING premise is that a report “com- lost motion. If you find yourself municates’’ when certain princi- groping, it’s probably because you ples of good communication are haven’t done enough real soul- observed-either consciously or searching. You’re not ready to unconsciously-in its delivery. The write because you don’t have any- process may have been costly. The thing to say. You’re not inspired. writer may have consumed a lot of You lack conviction about the sub- precious time and gotten frus- ject matter. You need a trated and frantic because trial message-a central unifying and error was used to arrive at the theme. ... final product. Or perhaps the writer had a satisfying experience Once you “zero in” on the mes- because he consciously followed a sage, the job will take on new logical approach-he had a meaning. The message gives pur- strategy in mind-in identifying pose for everything else that goes and laying out what he wanted to on in an audit. And it will become MY. the unifying theme of the report. Now that we’ve got your You can’t write a good report until attention-Think along with us in you’ve found the message, but- a step-by-step account of how to ironically-you can’t continue ef- actually go about writing a report. fectively in an audit until you’ve made this same discovery. Hence Step 1 the importance of finding the message early! Begin by finding your message-something important to tell Admittedly, there’s danger in rryour world,” something worthy getting committed to a way of of your time and effort. thinking too early. But there’s greater danger in not getting committed at all. The survey phase of an audit is the appropriate time to come to grips with the issues and form your convic- tions. You should have something in mind when you begin the survey-when you do the spadework. After that preliminary probe, a message must be con- ceived or there’s no purpose in continuing. Muddling through a review without a conscious objective in sight won’t do. The message One of the most difficult things must be visualized and forecasted. to do is sit down and begin writing. Trying to get started-or The exact way in which a mes- being half-hearted in an sage is identified may vary. Usu- attempt-can account for a lot of ally it will involve perspiration-

GAO ReuiewlSpring 1978 41 I

3MMONSENSE APPROACH TO WRITING

and perhaps a bit of inspiration. It may start with a personal conviction-complemented by a knowledge of the facts. Regardless of the method applied in bringing about the moment of truth, the following are some techniques which should assist in gaining better focus on the message: -Brainstorming and open discussion among staff members, -Challenge and input from persons independent of the job, -Exposure to the thinking of convincing. You have to fill the top managers within the office reader’s mind with pictures, facts, and from “experts” on the out- and details that will add up to side, and what you want to say. You will -Simply through putting pencil soon discover that getting across to paper. your message is a venture in the art of persuasion. You must give Once identified, the message your reader enough evidence to needs to be put down on paper. A convince him that you’re a man of good technique is to write it out in reason and that what you say is digest form at the close of the sur- true. To do this, you’ll need some vey. It should be crisp and logical arguments, a rationale, clear-with no chance for misin- specifics, perhaps a few statistics terpretation. Then, make sure it’s or examples, maybe comparisons approved and accepted by and contrasts, graphs, pictures, everyone in the responsibility charts, etc.-an assortment of chain before proceeding. In this carefully selected devices to help way, the job can be built around the reader think along with you. the message. (The need for some The basic message itself is usu- reshaping and recasting as the job ally an overriding conclusion-a proceeds is, of course, recognized.) generalization. For example: “Wa- Direction can be given to the enter pollution is becoming a critical tire staff. The goal will be in view. national problem-more Federal It’s the way to integrate re- involvement is necessary.” porting with audit planning and All of us rely on generalizations execution. every day of our lives-but some generalizations are more reliable Step 2 than others. Generalizations are important to good writing because Build your message on a founda- they sum up our position-they tion of logic. help us tell it like it is. Yet our A bare message is not enough- generalizations must be backed up it may be right but it won’t be with facts-evidence compatible

42 GAO ReuiewlSpring 1978 COMMONSENSE APPROACH TO WRITING

with the strength of the convic- tions we convey. The process of drawing general conclusions from individual observations is known as “inductive reasoning.” We use it a lot in reporting: -Over 800 million tons of toxic waste are being dumped into our Nation’s waters each day. -No institution or governmen- working. This distracts from the tal authority has control or report and may even conceal or jurisdiction over the confuse the message. Remember: problem-State and local gov- the only valid reason for writing ernments lack money and au- the report is to deliver an impor- thority. tant message. Everything else -The average citizen either merely tags along to complement doesn’t know about the prob- it. lem or doesn’t care. Every word, sentence, para- -Fish are dying-people can’t graph, section, and chapter should swim in the water. readily justify its presence in a re- -Professor Snodgrass says port by the contribution it “We’re doomed unless * * * .” makes-the tie-in it has-to the -No one at the Federal level is message. (This obviously would in- clearly responsible for clude any information necessary to action-other priorities exist, add balance or present the “other etc. side of the story.”) Conclusion: Water pollution is a -Introductory or background- national problem and somebody at type information provides the Federal level had better do scene-setting, offers perspec- something fast! tive, and appropriately leads The logical step-by-step unravel- up to the message. How much ing of evidence will give your and what it is depends on the reader the basis he needs for going message which follows. But, if along with your message. it’s too long, rambles, or is couched in technical or Step 3 legalistic jargon, the reader may never make it there. Get your story straight-separate -The raw message can usually the big issues fiom other bits of in- be summed up in a statement formation needed to support, com- or two, but it takes demon- plement, or fairly deal with the stration to make it convincing. message. An example or two will convey Reports can easily get mired impact in earthy terms. Also, down with too much detail- some related issues are usu- words, sentences, paragraphs, ally needed to tell the full even globs of pages that aren’t story. These should be brought

GAO ReviewlSpring 1978 43 COMMONSENSE APPROACH TO WRITING

together logically in summary Step 4 form to alert the reader to what is to follow. Details can Adopt and consciously follow a be laid out later. The point is “straWY” for communicating Your to give- “reader direction” thoughts to the reader. quickly-an overview-letting the reader know where we’re heading. Lay it out for him . . . 1-2-3. A listing of the major points-which tells the story-forms the nucleus of our report. It’s our “skeletal structure” dictating what’s to follow. What follows, therefore, should be consistent with it and also easily tied back. J -1s there another side to the story? The parties affected- what do they say? Our message is not complete and we aren’t fair unless we squarely .-. deal with the reactions of those who are the targets of any criticism or who may have Someone has defined “com- to take action based on our municating” as the process of guid- suggestions. Their views, ing important ideas through men- therefore, must be given tal roadblocks. Certainly we all prominent place. know from experience that unini- tiated readers need to be led by the -What specifically can and hand. should be done about the con- Theories on communication ditions we found? Some re- touch on many complicated ports may be simply informa- concepts-about human nature, tional, but usually we’ll want perception, thought processes, and to offer suggestions or recom- uncertainties. One thing comes mendations. Recommenda- through loud and clear: people get tions must be addressed to the the message only if it’s laid out in underlying causes-a clear an easy flow of logical thoughts. tie-in should be evident. And for the casual reader it must -Our readers are also entitled be especially simple and down-to- to know the scope of our earth. Remember: “the easiest work-what we did and where thing for anyone to do is to stop we did it. A brief discussion of reading.” our approach and coverage How do you lay out the thoughts lends credence to our conclu- you believe are essential to com- sions. municate your message? Is there a

44 GAO ReviewlSpring 1978 COMMONSENSE APPROACH TO WRITING logical flow? Can your presenta- Can you divide your material tion of thoughts be easily picked into three or four categories or out-point by point? Do your phys- segments? O.K., tentatively ical structure and arrangement devote a paragraph to each (i.e., overview, chapters, captions, segment. sections, paragraphs, sentences, -Next, check each paragraph. words) facilitate this blow-by-blow Do you have one prominent account? sentence-one overriding In writing the report, you should thought-either leading off or be consciously thinking of how finishing up the paragraph? your writing fits into the plan for Do all the subthoughts com- logically communicating your plement or tie-in to that basic message. You should have a thought? Check each sentence. “strategy.” To illustrate: What do they really say? Can -After satisfying yourself on you combine? Should you the basic message and listing break them up? Check each the pertinent issues or related word! Are they all working? bits of information you believe Does each paragraph, sen- are needed to tell your story, tence, and word convey the devise an overall framework precise meaning? Does it all for presenting it. add up to something impor- -Begin with the digest. This is tant in relation to your where you should form your message? “skeletal structure”-an or- These principles have applica- ganizational trail which tion to every part of any report. A should be readily observable “skeletal structure” should be the throughout the report. For concern. The physical arrange- example, the major points ment as well as the subject matter supporting your message of each chapter, section, caption, should stand out to the reader. paragraph, sentence, and word A good technique is to list should be considered from the them in parallel fashion- standpoint of its logical connection perhaps indenting them and to the whole. setting them out separately Remember: the reader needs for quick identification. These constant direction. Summary major points become logical statements-overviews-can offer choices for breaking down the this direction, but good side cap- body of the report into appro- tions and organization can too. priate chapters or sections. Transition words, lead-in phrases, -Now consider one of those etc., also are important. An easily major sections-the detail be- identifiable flow of logic should be hind your first issue highligh- evident from one chapter to the ted in the overview. A mean- next, from one section to another, ingful caption will get you from one paragraph to the next, started. But what about the and so on. This will lead the basic content of the section? reader through the mire and help

GAO ReviewlSpring I978 45 COMMONSENSE APPROACH TO WRITING him understand the logic you have -First, subdivide the report (or should have) in mind in mak- into its major segments. Let ing your point. Roman numeral I represent the introductory comments, I1 Step 5 the message, I11 the agency comments, IV the conclusions, Test the logic of your writing to V the recommendations, etc. satisfy yourself (You could follow the same approach with the digest structure on a smaller scale.) These major segments may fall differently depending on the report. But regardless of the report, you should be able to easily identify the major breakouts. Are you satisfied with this overall framework? Is it complete? -Now begin with I and break it down further . . . points A-B-C . . . the basic skeletal struc- A message clearly conveyed is ture of section I. For example, open to scrutiny-flaws in logic in an introductory section, can be detected, disagreements in point A may simply introduce philosophy can be flagged, etc. It’s the subject and give rationale when the message is concealed be- for our concern in the area. B hind high-sounding verbiage that may provide appropriate you may have serious problems- background data for the getting back to such basics as sup- reader. C may deal with the port, objectivity, and significance. law, departmental regula- This may also delay processing or tions, and other criteria. D even kill a message that should be may deal with agency respon- told. How do you really know you sibilities, and so on. Are all have it until the message and all these important and neces- its supporting parts are first clear sary? If so, is your paragraph to you? How can others evaluate it structure consistent with your unless it communicates to them? mental image of a logical Clarity is the first test. Then other breakout? Is the arrangement tests can be applied. proper? Are transitions appar- You can test your products to ent? satisfy yourself that your message -Perhaps I.A. has three sub- is clear. A logical presentation of points . . . 1-2-3 . . . the log- your message can be readily sub- ical thought structure leading divided and outlined. A clear trail to point A. Do you lead the should be apparent throughout the reader by helping him vis- report. To illustrate: ualize this three-fold relation-

46 GAO Reviewispring 1978 COMMONSENSE APPROACH TO WRITING

ship? Do you need to sum- down the numerals, letters, and marize them first and then numbers in the margins of your devote a separate paragraph draft as a test.) By translating it to to each? Do the thoughts jus- an outline you can better examine tify the detail? the real logic of your presentation. -What about the sentences? Do It may be shocking when you they enhance the central point realize that you have a difficult in the paragraph to which time devising the outline. You can they relate? The thought is be sure in such a case that the most important! Is it there? reader will have a doubly difficult After satisfying yourself on time understanding your point. So the thought, check the try it one more time! language-choice of words. Is every word working? You’ll probably be able to refine the Final Thought thought and surely you’ll be able to cut out a few unneces- A clearly written, well- sary words. organized report is, of course, not a substitute for an important mes- This same type of step-by-step sage. But, assuming you have examination of each part of your something important to say, a report is necessary before you can commonsense approach may help expect a product that communi- you say it and your audience see cates. When you’re through, you can take another look at the out- it-sooner! line. Maybe by that time, you’ve had some major alterations. Re- EDITOR’SNOTE: Drawings by Norman member the outline should be vis- Rockwell. Reprinted with permission ible as you read through the re- from The Saturday Evening Post 0 1954, port. (You might even want to jot the Curtis Publishing Company,

GAO ReviewlSpring I978 47 ALEXANDER A. SILVA

Building a Dynamic and Comprehensive EEQ Program

This article was written while the author served on an interagency task force charged with recommending improvements to the EEO program of a medium-size agency. Much of the article later became the introduction to the task force’s final report.

Employers who seek to build a the organization. It should free the dynamic and comprehensive company of policies and practices equal opportunity program in which are no longer beneficial to their workplace must avoid a either employees or management, and common blindspot. It’s a failure should result in the introduction of new and improved management prac- to recognize that to be successful tices that will enhance the work envi- and permanent equal opportunity ronment and result in increased em- must be part and parcel of a sys- ployee development and pr0ductivity.l tematic planned program for institutional change. As one ex- One reason why many manag- perienced observer stated: ers don’t approach EEO from this perspective is that as social be- Much of the change required will be ings they are conditioned to react systemic and will ultimately affect the to controversial and emotional way all individuals are selected and developed in the workforce. Effec- social issues. Because EEO is a tively managing the process of change controversial and sometimes as it impacts on the experiences of minorities. women, and other interest “Equal Opportunity-Planning and groups should positively impact on the Managing the Process of Change,” Gloria entire human resources system within J. Gerry, Personnel Journal, April 1977.

Mr. Silva is the director, Office of Equal Employment Opportunity. Before coming to GAO in 1971 he was director of urban programs at the National Institute of Public Affairs At one time the administrative assistant to a former US.Rep- resentative, he has a degree in English and journalism from California State Polytechnic University (Pomona) and was a public affairs fellow with the Cora Foundation in California He also has a master’s degree in Urban Studies from Occidental College.

48 GAO ReviewlSpring 1978 BUILDING A DYNAMIC EEO PROGRAM emotional issue, managers fre- are not comfortably fitting into the quently don’t act on it as a dif- scheme of things in an important ficult, stubborn personnel prob- and influential way, EEO person- lem to be solved in a rational and nel can easily lose sight of their sophisticated fashion just as primary mission in the other problems they often en- organization-to effect positive, counter. Civil rights activists, permanent change in basic lawsuits, court decisions un- policies, procedures, practices, favorable to employers, and the values and climate in a systema- media have all contributed to the tic, planned way. When EEO per- issue-react syndrome. sonnel forget their reason for be- It’s not surprising that mana- ing, one or more results may occur, gerial reaction to EEO-related any of which can hamper the pri- public controversy sometimes re- mary objective of institutionaliz- sults in grudging acceptance of ing equal opportunity in the or- antidiscrimination programs in ganization. the workplace. These programs Take one extreme. Because are often perceived as an annoy- “turf” (staff size, budget, office lo- ing legal requirement designed to cation and floor space, furnishings, benefit “those people” to the de- and other trappings) is important triment of an organization’s in the bureaucratic value system, economy, efficiency and produc- EEO personnel can be co-opted tivity. Consequently, persons re- into developing a separate person- sponsible for administering EEO nel function to deal with equal op- programs are frequently viewed portunity. This might include, de- as being apart from the pending on the organization’s size, mainstream, a prickly presence creating a special recruitment sec- to be tolerated and, if possible, tion for minorities and women, de- isolated. veloping and presenting EEO training courses, operating an upward mobility program for the The Primary Mission “disadvantaged,” providing special career counseling services, having Is To Effect Change a staff of management analysts to conduct EEO audits, perform labor market and workforce analyses, It’s logical for EEO personnel to calculate statistical goals and resent this unflattering percep- timetables, etc. Not only is this a tion. They see themselves as ad- costly and inefficient way to ministrators cut from the same proceed-especially if other units cloth as their colleagues and enti- of the organization are already tled to the same recognition and equipped to carry out the recruit- dignity as officials who carry out ment, training and other other facets of the organization’s functions-but more importantly daily business and overall mission. it neatly insulates mainstream If they don’t understand why they personnel operations from having

GAO ReviewlSpring 1978 49 I

BUILDING A DYNAMIC EEO PROGRAM

to effect permanent change while come a desirable objective only if making it appear that the organi- there is demonstrable proof that zation is making a substantial in- equal opportunity can benefit vestment toward equal opportu- everyone, individually and col- nity. lectively. At the other end of the spec- trum, EEO personnel can find themselves so understaffed and so A Need for Negotiation unable to tap into the organization’s diverse human and technical Under this approach EEO off- resources that they become frus- cials and their staffs must be tact- trated enough to engage in unwar- ful and effective negotiators who ranted actions against other ele- influence the policies, procedures ments of the organization- and practices which govern the ac- particularly those responsible for tions of personnelists and the basic personnel policies and managers-while at the same time practices toward which EEO engendering their confidence- should be effecting permanent rather than attempting to initiate change. When this occurs there is dual and competitive programs or a counterreaction by the organiza- command change through legal tion. Left unchecked, the confron- authority and sanctions. tation saps the ability of all man- This, of course, is no small task, agers to effectively perform their nor should it be if permanent legitimate roles and the overall change is the ultimate objective. personnel function falls into disar- For one thing, EEO will become ray. the visible lightning rod for all Steering a safe and proper change which occurs in the course between these extremes can organization-whether for good or be accomplished with minimal dis- ill-and EEO must be able to take comfort or upheaval in the organi- the heat, deservedly or undeser- zation if the head executive has a vedly. firm and total commitment to For example, if employee ap- permanent change, and the level praisal forms and procedures are of commitment is clearly and fre- revised so as to include only quently expressed to managers measurable, observable, job- and employees alike. The staff as- related criteria (a valid EEO objec- sembled to initiate change must tive) the impact throughout the also fully understand and accept organization can be powerful. its primary role as change Many white males, some of whom agent-committed catalysts who will have chafed under the old ap- must interact determinedly, yet praisal system, may perceive the fairly and cooperatively, with all change as an effort to handicap elements of the organization, their promotion opportunities by aware that integrating EEO prin- giving an advantage to minorities ciples and practices into all facets and women. Some minorities and of the personnel system will be- women may share this perception

50 GAO ReviewlSpring 1978 BUILDING A DYNAMIC EEO PROGRAM and their expectations for easier EEO staff since both have equity promotion progress will soar. as a common objective, in fact as If the new appraisal process has well as in principle. been developed carefully and expertly-not by EEO staff but by other highly trained professionals Discrimination Complaints whose reputations ride on the successful outcome of the new While practically all actions un- system-the irritated white men dertaken by an EEO staff should as well as the overly optimistic be designed to facilitate perma- minorities and women will find nent change through intraorgani- that their perceptions were wrong. zational cooperation, one area of The new system, after supervisors decisionmaking activity should have been counseled and trained remain solely within the formal in its use, should bring much equal opportunity bailiwick. Dis- greater equity into the promotion crimination complaint processing, possibilities of all employees. by its very nature, should be “off If the old system did in fact give limits” to any and all influences white men an advantage they will, which have, or even appear to of course, no longer have it. But have, a vested interest in the out- they will also see, perhaps with come of a complaint. Having this some blurring at first, that they critically important decisionmak- are being appraised honestly and ing authority unto itself, EEO fairly, and that women and must exercise its judgment power minorities aren’t receiving a dis- judiciously. proportionate share of promotions. When a decision favors a comp- And if over the short term EEO lainant, either in whole or in part, takes much of the “blame” for the the improper treatment or in- new system, it should also be equities which injured the person given much of the credit when the must, of course, be corrected. system proves to be more job- Whatever the cost, the complain- related-and therefore more ant must be made whole as far as fair-than its predecessor. law permits. Using the same high The organization quite likely level of tact and diplomacy needed will learn an important lesson to foster permanent change from this kind of experience: EEO throughout the personnel man- should not be resented as a pro- agement system, redress in dis- gram which takes away from some crimination complaints can be ac- and arbitrarily bestows to others; complished with little acrimony on rather it brings benefits to all. the part of managers and super- Personnelists, who are usually visors who, in the final analysis, (and often unfairly) criticized for must implement and “live with” all of the flaws and inequities in the corrective action decreed. an appraisal system, will particu- From the complainant’s view- larly find that they have good rea- point alone, it makes sense to have son to make common cause with the issues resolved in a fashion

GAO ReviewlSpring 1978 51 BUILDING A DYNAMIC EEO PROGRAM

which will sharply reduce the level system operates in a way to teach of tension in the work unit where them egalitarian behavior, rather he or she works. Rarely can ten- than to take retribution because sion be completely eliminated in they acted improperly in a particu- the short run, but important lar set of circumstances. ground can be tilled for harvesting Keeping managers and super- productive interpersonal relation- visors “out of trouble” should be- ships over a reasonably brief come an organizational watchword period. for EEO. Ultimately, a point can The deeper one moves into the be reached where managers and complaint process the more dif- supervisors will seek advice from ficult it becomes to resolve the EEO before making a personnel problems without engendering decision which an employee might deep and lasting hostility on both perceive as being discriminatory. sides. For this reason it’s of utmost When this occurs everyone bene- importance that diligent efforts be fits. made to resolve complaints in the counseling stage, or at least in the The approach recommended informal adjustment phase follow- here for building equal opportu- ing a comprehensive investigation. nity into all facets of an organiza- When the issues in a complaint tion’s daily life requires consider- with merit are presented and the able patience and perseverance, facts in the matter are carefully particularly by the EEO staff. The and logically developed for the tendency to be co-opted by other managers and supervisors in- management officials, or to strike volved, the wisdom and propriety at them out of sheer frustration, or of the corrective action called for to blindly assume the role of advo- will usually become apparent to cate for minorities and women, them if they first have a basic must always be resisted. Succumb- trust in the integrity ‘and fairness ing to these personal and organi- of the system. A system used zational pressures will no doubt primarily to punish will not- secure a place for EEO in the cannot-provide an atmosphere of scheme of things. But securing a understanding and trust. If for no place is a far cry from “changing other reason, alleged discriminat- the place”-which is the business ory officials must believe that the that EEO should be about.

52 GAO ReviewlSpring 1978 D. LAMAR WHITE

A Nickel Here, A Nickel There- Returnables Are Worth the Price!

On December 7,1977,GAO released a report entitled “Potential Effects of a National Mandatory Deposit on Beverage Containers” (PAD-78-19), which discussed one way to help ouercome our mounting solid waste problems. The GAO analysis of this proposal concluded that a mandatory deposit would increase some costs and decrease others, but the net change would probably be a product which costs less to deliver to the consumer. This article goes beyond the detailed cost analysis of the report and discusses the who-should-pay-for-waste issue.

Since Earth Day in 1970, many After World War 11, several forces attempts have been made to were at work which would affect legislate a refundable deposit on the beer container market. each beer and soft drink con- First, steel and can companies tainer. Proponents have suc- saw the expansion possible in ceeded in six States and in sev- the beer container market. eral localities, but they believe About 30 cans are needed to only national legislation will replace one new refillable bot- allow a mandatory deposit sys- tle. tem to have maximum benefits. 0 Second, changing consumer habits. which included in- Emergence of One-Ways creased mobility, more in- home consumption of beer, and The first no-deposit, no-return more income for leisure ac- beverage container was introduced tivities, led people to look for in 1935 by a small brewery in New ways to make their life easier. Jersey. By 1941, 10 percent of all One form of convenience was a packaged beer sold was in cans. one-way beer container.

Mr. White, a supervisory management analyst, came to the Program Analysis Division in 1974 from the International Division’s European Branch. He joined GAO in October 1968 at the Seattle regional office. He graduated from the University of Oregon and holds a B.A. in economics and an M.B.A.

GAO ReuiewlSpring 1978 53 RETURNABLES ARE WORTH THE PRICE

0 Third, some beer companies of the lighter one-way were beginning to compete container-whether bottle or outside their small local mar- can-did not offset its higher kets, so their transportation cost. costs assumed more impor- One-way usage grew rapidly in tance. They preferred light- the 1960s, however, because food weight, one-way containers store chains began to market over the heavier refillable bot- “house brand” soft drinks in cans. tles. National brands reacted by offer- 0 Fourth, small owner-operated ing their soft drinks in cans and food stores were being replaced one-way bottles. by multistore, self-service supermarket chains designed to reduce employee handling of Empties Pile Up products. One-way containers In 1977, 85 percent of the beer suited such a design very well. sold and 62 percent of the soft As these forces built in the 1950s, drinks sold came in one-way con- the deposit bottle’s share of the tainers. Even though one-ways packaged-beer market fell from 86 helped to satisfy the American percent in 1947 to 53 percent in consumer’s leisure and conveni- 1959. ence needs, they suffered the fate The soft drink industry lagged of being discarded after use- behind the beer industry in chang- regardless of location. Each ing to one-way containers; deposit American threw away an average soft drink containers still had 98 of 370 beverage containers in percent of the market in 1959. Two 1977. major reasons were: In 1960, 2.3 billion soft drink 0 Early metal cans were not containers were discarded as litter technically suitable because or in the garbage can. This soft drinks are acidic and are number includes 1.2 billion one- filled under higher pressure way cans and bottles and 1.1 bil- than beer. lion deposit containers not re- 0 Franchised soft drink bottlers turned. Similar calculations (see have traditionally had rela- table) show the increase in soft tively small service areas, so drink “candidates” for litter or the transportation advantage solid waste from 1960 to 1985. Soft Drink Colntainers Sold Packaged Percent Solid waste Year fillings one-way or litter (billions) (billions) 1960 21.5 5.4 2.3 1965 29.3 18.0 7.0 1970 40.5 59.7 25.6 1975 49.6 62.1 32.6 1985 (est.) 74.3 63.5 48.7

54 GAO ReviewlSpring 1978 RETURNABLES ARE WORTH THE PRlCE

These numbers demonstrate the found a reliable way to measure mandatory deposit law proponents’ the value of avoiding ugliness. concern about one-way containers. The publicly borne costs of The 14-fold increase in unreturned one-way beverage containers have soft drink containers between 1960 little direct relationship to a per- and 1975 is astounding. Even if son’s rate of beverage consumption the return rates and the one-way or neatness. A person who does not container’s share of the market drink beer or soda still sees the had been the same in 1975 as they container litter along the roadside; were in 1960, discarded containers waste disposal and litter pickup would have only numbered 5.4 costs are not usually related to the billion-one-sixth of the actual volume or weight of garbage or lit- 1975 amount. Discarded beer con- ter generated; pollution from a tainers increased from 11.8 billion landfill or incinerator affects those in 1960 to 36.9 billion in 1975 and nearby without regard to the are expected to reach 58.6 billion source of the solid waste. Citizens in 1985. bear these costs, not the beverage As the beverage industries con- firms. verted to the one-way container, the litter and solid waste costs as- The Search for Solutions sociated with beverage containers grew. These costs were not, and The beverage and container are not, borne by the beverage firms recognized the potential for firms, but by the general public. As increased litter from their easy- long as the firms were concerned to-identify and durable contain- about recovering the containers for ers. Their initial reaction was a reuse, they were substituting their campaign exhorting consumers to expenditures for potential public hit the garbage can when throw- solid waste cleanup and disposal ing away their one-way contain- costs. As firms gradually stopped ers. The litter continued, how- spending money and time to re- ever, and other approaches were cover the empty deposit contain- aired. One is a “clean com- ers, the costs became an obligation munities plan,” using antilitter- of the taxpaying public. Individual ing laws and neater storage and pieces of litter cost between 2 and transport of solid waste to control 11 cents to pick up, and a ton of litter. Another was a litter tax, post-consumer garbage costs and several States now require about $28 to transport and dis- “litterable” products to carry a pose of. small ad valorem tax, earmarked Beverage container litter not for litter cleanup and advertising only requires equipment, labor, campaigns. and time to pick up, but litter left These approaches will not, lying also has an aesthetic cost. however, reduce the number of More litter is considered uglier beverage containers which would than less litter (except to Oscar be discarded as litter or solid the Grouch), but no one has yet waste. The mandatory deposit

GAO ReuiewlSpring 1978 55 RETURNABLES ARE WORTH THE PRICE approach would reduce the choice of either discarding them amount of litter and solid waste as before, thus retaining the from beverage containers, but, throwaway convenience but los- because it is a direct measure ing the deposit, or returning and would require beverage firms them for the refund. In effect, the (and consumers) to alter their deposit will require the consumer way of doing business, it is re- to help keep America clean or to sisted. forfeit a minimum of 5 cents per Industry sees a direct action, container. such as a mandatory deposit, as I believe that the deposit would unwarranted intervention in a be effective in causing consumers market-determined beverage de- to return most of the containers. livery system. Proponents advo- This would convert many of the cate deposits because they would litter/solid waste public costs cause the consumer (and the caused by beverage containers to firms) to consider the costs of dis- direct, private costs. In addition, carding containers. the person who decided to con- The GAO study mentioned in tinue to dispose of deposit con- the introduction to this article tainers as though they were presented the effects of a national one-way containers would be pay- mandatory deposit on such things ing a cost directly attributable to as capital equipment, employ- the act of discarding rather than ment, and container costs. It con- reusing materials. cluded that market costs would This approach is new to the be lower, and that publicly borne Congress and can be seen as indi- costs would also be reduced. rect regulation of commercial ac- Manufacturers claim that a de- tions through price adjustments posit system would ignore con- for the greater public good. The sumers, demands for the conveni- firms which would be affected by ence of one-way containers. Gov- a mandatory deposit recognize ernment, they add, should not this and are defending their dictate a means of litter control cost-minimizing solutions at the expense of consumer free- against attempts to add public dom. Proponents of the manda- costs to their product. Proponents tory deposit reply that industry also recognize the new approach went to the one-way container for and characterize it as but a first its own convenience and profit. step in an effort to include public If the Congress imposes a de- costs in private costs, without the posit on one-way containers, the heavy hand of administrative, re- consumer will be faced with the strictive regulation. EDITORSNOTE: This report brought about an interesting exchange of letters between Congressman Les AuCoin of Oregon and the Comp- troller General. Parts are quoted below. Congressman AuCoin’s letter of December 13, 1977: In Appendix V, Page 90, you say, “For us, the value of the Oregon result is in the

56 GAO ReviewlSpring 1978 RETURNABLES ARE WORTH THE PRICE

reaction of human beings to an economic stimulus, namely a deposit on beverage containers. This reaction is neither dependent on the environmental awareness of Oregonians nor on the semirural character of the state. The people may wear plaid jackets and drive pickups, but they are still consumers buying, or not buying, bev- erages. . . ” It’s good to know we’re more or less normal, except for our plaid jackets and pickup trucks. However, I might suggest that you make your point in less colorful-and stereotyped-terms. Your three-piece suit is showing. With warm regards and mild irritation, * * * Comptroller General Staats’ letter of January 6, 1978: With respect to our ‘left-handed praise’ of Oregonians, there was most assuredly no slightintended. * * * Incidentally, it is indeed gratifying to have evidence that someone actually reads our reports in enough detail to note the choice of words in the fifth Appendix, on the next to the last page of the report. I only wish more people read our reports that attentively.

Grant Auditing

Public auditors must not assume that standard financial statements [of grantee’s operations] will meet Government needs. Too often their reports do not comment on compliance requirements unless there is a deficiency which affects the grantee’s financial position. Government officials generally want a specific statement as to whether or not the grantee administered the grant in compliance with the major grant requirement.

Elmer B. Staats Comptroller General of the United States November 8, 1977

GAO Reviewispring 1978 57 TIMOTHY D. DESMOND

The Team Approach: Stirring the Pot

The Task Force on GAO Effectiveness, appointed by the Comptroller General, has suggested the rrteam approach” as one way to expedite our work. How to implement the new method? How to pick people for teams? There is much debate. This article offers some ideas.

The team concept envisages ad The Spreading “Ad Hocracy” hoc groups, perhaps three to six people, detached from usual or- Alvin Toffler, author of Future ganizational constraints to con- Shock, says that ad hoc groups are duct particular audits, program proliferating throughout industry evaluations, and reviews. The and government as a way of re- idea is that a small, semi- sponding to real-time demands autonomous group, given suffi- and unprecedented cha1lenges.l cient management backing, can Formal cellular organizations may cut through “red tape” and get be too “ritualistic,” too delibera- quality results in much less time. tive, to respond appropriately to The small-group theory, sup- these exigencies. In the traditional ported by experience elsewhere hierarchy the decision route is up with teams, is attractive: given and down the constituent “meaty” assignments (tasks per- pyramids. The team idea is to cut ceived to be challenging and re- across laterally. Teams can key up warding), conspicuous management backing, and exemption ‘Toffler, “Organizations: The Coming from most standard operating Ad-Hocracy,” in Organizational Design, procedures, small groups are en- Development and Behaviour, Karl 0. thusiastic, imaginative, and very Magnusen, ed. (Glenview, Ill.: Scott result conscious. Foresman & Co., 19777, p. 119.

Mr. Desmond, who has an M.B.A. from the University of Chicago, was a management consultant before joining GAO in 1969, He is a supervisory management analyst in the Procurement and Systems Acquisition Division.

58 @A0ReviewlSpring 1978 THE TEAM APPROACH

GAO ReviewlSpring 1978 59 THE TEAM APPROACH

a traditional organization, even The Need for Teams in GAO though they are not apparent on the organization chart. (See fig. 1.) Reviewing of draft reports and Semiautonomous groups have other assignment documents, for been found quite effective in pri- one thing, has become ponderous vate industry for such critical and time-consuming in GAO. tasks as determining the location There are multitudinous transac- of a new plant, implementing tions and many reiterative inspec- crash cost - r educt ion programs , tions involved in getting our making feasibility studies of new product out. Classically, formal products, and planning market “cellular” organizations with their strategy. The Task Force on GAO elaborate clearance-approval Effectiveness, in fact, was engaged mechanisms are not strict about in market strategy and corporate time schedules and deadlines. planning of this kind. The Task Force on Improving Growth companies use teams ex- GAO Effectiveness, appointed by tensively, some with quite re- the Comptroller General, has con- markable success. (But they have cluded that “multiple and repeti- learned that the organization tive reviews of GAO work [are] a cadre-personnel, accounting, top major barrier to timely report- management, etc.-must be re- ing.” (See fig. 2.) The Task Force tained as a stable base.I2 The mili- recommended more reliance on the tary has its task forces for particu- team approach to assignments as a lar missions and its project teams way of expediting our output. to expedite major weapon The present organizational developments. structure does not have to be dis- Public accounting and manage- mantled with the advent of teams. ment consulting are probably In the first place, the formal or- closer analogs to GAO’s work. ganization, through its standard Small teams and flexible staff- operating procedures, is an effi- scheduling are the way of life in cient coordinator of many kinds of these businesses. Products are sel- work. Secondly, it has continuity dom reviewed beyond the second and institutional memory that the layer of supervision, if indeed team approach usually lacks. there is a third one. Central office The extent to which the teaming staffing is austere. Their teams concept can be used in GAO has to are pretty much on their own to be measured and evaluated. There solve client problems. Deadlines is no unified theory of organiza- are harsh-indeed, overruns have tion; therefore, each institution to be absorbed by the consultants. must experiment periodically to Solving client problems often re- finds its own particular style for quires an amalgam of skills. GAO Management News, Sept. 6, 1977, William W. George, “Task Teams for p. 4. Rapid Growth,” Harvard Business Re- Organizational Design, Development, uiew, March-April 1977, pp. 71-88. and Organization, op. cit., p. 2.

60 GAO ReviewlSpring 1978 THE TEAM APPROACH

DIVISION I DIRECTOR I

DIVISION r--7 I POLICY I IincLivn”’ D‘ 1-,, 1

DIVISION i---7 i EDITING I b

DIV IS1ON ASSISTANT DIRECTOR

r--7 DIVISION 1 AUDIT MGR. I AGENCY [

REGIONAL REGIONAL I MANAG ER MANAGER

FIG. 2 MULTIPLE REVIEWINGIN OPERATIONS GAO ReviewlSpring 1978 61 I THE TEAM APPROACH i the times: “flat,” pyramidal, or generalists. There are those “who some hybrid type. No one organi- know where the bodies are buried” zation type is best for every kind of in particular agencies and can objective. For all we know, the save considerable time in zeroing team experiment in GAO may be in on core information and “the transitional to a new form of or- right people to see.” ganization not yet discernable. Team members would return to The important thing to meas- their regular duties when the job ure over the next year or two is is completed. One could be a leader whether the team approach can at one time and a team member at really turn out quality products another, depending on the nature with more dispatch, i.e., with less of the assignment and the know- documentation and review than how required. at present. The team philosophy is not -To what extent can teams be touchy about grades or pecking or- “given their head”? der. Generally, any GS-13 or -Will there be a loss of preci- higher from a regional office or sion or consistency of policy headquarters division, depending if supervisory layers are on the locale of the work or the thinned out? main field of interest, could be the -How much job-management team leader. Some high-level as- documentation is really es- signments, of course, will need sential for highly motivated supergrade leaders. In any event, groups? the “point man,” whatever his -Are there new ways to status, should be directly and shortcut other internal pro- manifestly accountable for results. cedures? Each team member, too, has to stand or fall on the results. It is anticipated that these small groups wili innovate money savings that the whole organization Administering Team can witness and learn from. Assignments Staffing the Teams Organizational oversight of teams will have to be worked out, A team may be intradivisional but generally the executive in or drawn from several offices ac- charge (to whom team leaders recording to assignment needs. Some port) would act more as a coach teams would be crews of auditors; than as a hierarchal supervisor. others, a fusion of disciplines, in The main thing is that the execu- which the required specialists are tive in charge must be able to cut in the thick of things rather than through barriers and protocol that far off in the chain of command. would otherwise hinder team per- Not all teams would be com- formance. The executive is the one posed of technicians, of course; to resist encroachment on team there will be need for seasoned freedoms. The higher he is in the

62 GAO ReviewlSpring 1978 THE TEAM APPROACH

organization, of course, the more Do We Have Team Talent powerful will be his teams and the farther they can range on Board? unhindered. This writer, speaking from ex- Clearly, if organization for- perience in more than a few or- malities such as layered reviewing ganiZatiOnS, is sure Of it; it’s just cannot be bypassed, the team ap- that Our staff has not really been preach loses its raison d’etre. tested. Consider how much bottom- Teams have to be exempted from line responsibility private indus- these traditional constraints if the try, including Public accounting approach is to work at all well. and management consulting firms, give routinely to their GS-13 to Little administrative control GS-15 counterparts! should be lost because of teaming. Professor~il~~, who believes One distinguished observer asserts that most enterprises are much that subordinates in semiautono- amuent in talent than they mous roles do not attempt to usurp realize, says: executive prerogative or make any important moves without consult- * * * managers at all levels tend to view ing the boss. fact,the their own resources as largely untapped, and their creativity and concern con- may be more than be- strained by their own superiors. * * *In fore.5 their own minds at least they are boss- The present thinking is that like people in subordinate-like jobs.g the team leader, as the “first This self-confidence and ambi- among equals,” Will be in charge tion is characteristic of many of but he Or she want to GAO professionals, and the team negotiate with the crew about as- approach will gradually bring signment methodo10€3’, di- these traits to the surface. To stir rections, and division of work. them up sooner, a new method of There should be an easy “give and selecting teams might be tried. take” among team members to arrive at a consensus about these matters. Finding the “Right” People Getting the team leader in- Some individuals who are success- volved in selecting the crew rein- ful in a highly structured envi- forces his or her accountability ronment, with established for results. The team leader will guidelines and methodology, may be in charge of the performance not not do so well in the free- ratings for the Of the wheeling, eclectic environment of assignment. small groups. Nor do all employees want great challenge or extra 5 Raymond E. Miles, “The Affluent Or- stress in their jobs. ganization,” Organizational and De- velopment Series, Part ZZ (Harvard Busi- ness Review), 1977,p. 67. 6Zbid., p. 62.

GAO ReviewlSpring 1978 63 THE TEAM APPROACH

The more promising leaders for After an initial screening, small, give-and-take groups-as team leader candidates could be opposed to formal ones-may be invited to submit their plans of those pragmatic in outlook, impa- work, “bids and proposals” as it tient with routine, receptive to were, telling how they under- new ideas and people, and eager stand the assignment, the staff- for unusual and challenging op- ing required, and the expected portunities to show their mettle. cost of staff and travel. Once Formal pyramidal organizations selected, a team leader could pick do not ordinarily place a premium his crew from among the volun- on such attributes. teers or elsewhere. Selection of The obvious way to staff a team the “winner” would be up to the would be to pick the most promis- executive in charge. Those who ing people and then direct or per- generate assignments of particu- suade them to join the team. This lar note should be put in charge is not unlike our present method of of them. assigning staff, but it has not been entirely satisfactory, as the Task Advantages of Volunteerism Force has pointed out.’ Are there If this approach is found to better ways, or at least some worth work, it could have a number of trying with the new team ap- initial benefits to both manage- proach? This may be the most op- ment and staff: portune time to experiment with First, only those who favor the team new recruiting methods. approach need come forward. No one has to be “drafted,” as it were. Those How About Competitive Selection? who are not sold on the idea-and there may be more than a few-can “wait and Now to stir the pot: One see.” Enthusiasts make the best mis- strategy worth testing would be sionaries anyway. to open up a select few assign- Second, the most enterprising indi- ments to “free competition.” In viduals need not be searched for: self- other words, advertise some starters will emerge on their own. The select reviews, much like promo- ambitious will pursue opportunity by tion and transfer opportunities volunteering for advertised assign- are offered today: list the re- ments or originating their own view’s general scope, objectives, assignment “packages.” and skills required and call for Third, self-starters need little responses, divisionwide or monitoring to keep them “on the stick.” Job management documenta- GAO-wide, from prospective tion can therefore be quite limited for team leaders and crews. team assignments, and executives in charge would be saved close supervision. 7Task Force on GAO Effectiveness, Fourth, teams that come together on Report of Findings, Conclusions and their own are most likely to be compat- Recommendations, Memorandum to the ible and better motivated; adminis- Comptroller General, Nov. 9, 1977, p. 3. trators, too, could be saved the time

64 GAO ReuiewlSpring 1978 THE TEAM APPROACH

and difficulty of “horse-trading” for the “best” team members and personnel. staffs vying to join the “best” Fifth, there will be a natural con- leaders and teams. Executives vergence of personal goals with organi- may find this approach awkward zational goals when assignments any- and troublesome at first (e.g., where in a division or in GAO are open taking on people they don’t really to competition. People would gravitate “know”) and personnel adminis- towards work in their own area of com- trators may find it untidy, but petence, field of interest, or perceived career ladder. letting the people sort themselves out on a few selected assignments Sixth, performance ratings can be based would be one way to get the team directly on results and thus be more material and satisfying to those who approach launched. volunteer. Some people may see team assignments as a way of making a new *** mark. Seuenth, our people undoubtedly have The introduction of the team experience or background skills, not approach, this writer believes, revealed by current job titles, that may will prove that our middle man- emerge in the voluntary setting.8 agement is altogether worthy of Eighth, the free competition will signal considerable responsibility and is to all that GAO is indeed a flexible or- in little need of the elaborate ganization, confident about its people backstopping imposed by the resources, and willing to experiment present system. and innovate. Whatever the recruitment The immediate problem may be method, the team approach competition among team leaders should be most interesting. Perhaps the downstream prob- For example, this writer knows of a lem-or blessing-will be an em- supervisory auditor, an electronics en- barassment of riches: How will gineer with, improbably, a master’s de- we use an abundance of new gree in public health. Such “hidden” leadership capabilities if they in- skills may be volunteered when the right deed prove to be well in excess of assignment is advertised. the usual job demands?

GAO ReviewlSpring 1978 65 JOHN C. KARMENDY and THOMn-. /by 3 The Critical Path Method Applied to GAO Reviews

The Critical Path Method can reduce the time it takes to complete GAO assignments.

Introduction and we think that such success can be repeated throughout GAO. GAO can use the critical path method (CPM), a project manage- What is CPM? ment technique long employed in the construction, aerospace, and CPM is a technique for project weapons development industries, planning, analysis, coordination, to reduce the cost of our reviews and control. Simply stated, CPM is and shorten review time. Such a flow chart showing an entire savings can be achieved because project in terms of a network of CPM enables us to (1) focus on “events” connected by “activities.” time-critical tasks throughout the An event represents an instant assignment, (2) identify tasks that of time and is usually described as can be performed concurrently, (3) the start or completion of an activ- quickly assess the impact of tasks ity, such as the start of fieldwork, added to the assignment, and (4) the completion of a product out- establish more realistic incremen- line, or the completion of an audit. tal time goals and completion (On a CPM diagram, events ap- dates. CPM has already proven it- pear as geometrical shapes or self in the San Francisco region nodes.) An activity is the amount

Mr. Karmendy is a supervisory management auditor in the San Francisco regional ofice. He holds an A.B. degree from the University of San Francisco (1969)and an M.B.A. in management and organizational behavior from the University of Oregon (1973). He joined GAO in 1973 and is a member of the American Society for Public Administration, the Association of Government Accountants, and the Common- wealth Club of California. Mr. Monahan, a supervisory auditor, joined the San Francisco regional office after spending 2 years with the International Division’s Far East Branch. He has a B.S. degree in accounting from California State University at Hayward and attended the Wharton Information Systems Program in May 1974. He is a member of the World Affairs Council of Northern California and the Commonwealth Club of California.

66 GAO ReviewlSpring 1978 CRITICAL PATH METHOD of work in calendar days occurring How CPM Differs between two events. (On a CPM diagram, activities are arrows or Although similar to GAO’s lines.) Figure 1 is a model CPM traditional management of as- diagram. signments, CPM emphasizes the relatanships between activities Constructing a CPM diagram, and how these relationships af- usually an audit team effort in fect the completion of the audit. San Francisco, centers around the GAO assignment supervisors not events and activities of the using CPM are aware of these re- planned review. The first step is to lationships, but supervisors determine the events and ac- using CPM manage by them, tivities required to meet assign- thereby seeing better how the ment objectives and estimate the commitment of valuable re- time needed to complete each ac- sources to one activity affects tivity. Then the team decides on a other activities. This increased sequence-that is, on which ac- visibility gives the supervisor tivities must be completed before greater control over the assign- others can begin. Activities that ment. can be performed concurrently are also identified at this time. Fig- on the Critical Path ures 2 and 3 illustrate a CPM Focusing diagram for a hypothetical GAO CPM diagrams quickly focus review. management attention on the crit-

-Figure 1 A CPM NETWORK

EVENT EVENT

GAO ReviewlSpring 1978 67 CRITICAL PATH METHOD

Figure 2 Final CPM Event Activity Duration in weeks 1. Assignment started, leader assigned 2. Staff assigned 1-2 1 3. Research, initial 1- 3 2 contacts completed 2-3 1.3 4. Job conferences 3-4 .2 planned 5. Questionnaires 3-5 2 designed 6. Questionnaires 5-6 1 tested 7. Questionnaires 6-7 1 printed 8. Questionnaires 7-8 1 distributed 9. Audit visits %9 1 scheduled 4-9 0 10. Site A completed 9- 10 2 11. Site B completed 10-11 2 12. Site C completed 10-12 2 13. Initial outline 11-13 .5 prepared 12-13 .5 14. Site D completed 11-14 3 13-14 0 15. Site E completed 12-15 2.5 13-15 0 16. Questionnaires %16 4 returned 17. Questionnaires coded, 16-17 2 analyzed 18. Site F completed 16-18 2 19. Site summaries 14-19 2 Completed 1%19 2.5 19a. Training for two 19-19a .5 team members 20. Product outline 19-20 1 prepared 19~20 1 17-20 .5 21. Product drafbd 2&21 2.5 22. Product reaiewed 21-22 1 23. Product referenced 2223 1.5 24. Product final typed 23-24 .5 25. Product forwarded, 24-25 .2 completed 68 GAO ReviewlSpring 1978 CRITICAL PATH METHOD

GAO ReviewlSpring 1978 69 CRITICAL PATH METHOD

ical path. The critical path is the Concurrent Performance of Activities longest route through the CPM network in terms of calendar time The time-saving potential of per- and is the minimum time for com- forming activities concurrently pleting the assignment. All other must not be overlooked. A team activities are concurrent to critical can save time by identifying and path activities and take less time taking advantage of concurrent to complete. (The critical path is performance opportunities. For shown as the dark line in fig. 3.) example, during a recent San Francisco regional office review, Focusing on the critical path is the team needed to visit 25 sites in an important advantage of CPM 9 geographic clusters throughout because it gives information the western States. If done sequen- needed for good assignment man- tially, site work would have con- agement. The supervisor knows he sumed 17 weeks-well beyond the must closely watch progress on the assignment’s deadline. Therefore, critical path, since each day’s the team visited three site clusters delay there causes a corresponding concurrently, reducing site work delay in overall assignment com- time to 6 calendar weeks. Because pletion. This knowledge enables of learning curve and coordination the supervisor to identify possible limitations, three concurrent visits slippage early and correct prob- was the team’s practical upper lems before they get out of hand, limit in this case. Obviously, either by requesting additional realistic upper limits for concur- staff or by dropping lower priority rent performance will vary, de- activities. With traditional man- pending on the assignment and agement, slippage may not be rec- the staff available. ognized until the 80- or 90-percent In contrast to critical path ac- completion mark, when the super- tivities, concurrent activities can visor can do little but accept a be delayed without delaying final delay in assignment completion. product completion, as long as they are not delayed beyond the But what if the assignment critical path activities they are deadline is earlier than the com- concurrent with. Otherwise, they pletion date determined by CPM? become the critical path and dic- Assuming the team has identified tate the assignment completion all possible opportunities for con- date. current performance of activities, For example, figure 3 shows that either the completion date must be the time required to reach event pushed back or some critical path 20, “product outline prepared,” via activities must be dropped or mod- the questionnaire route (events ified. The advantage of using CPM 3-5-6-7-8-16-17-20) is only 11.5 here is that the supervisor knows weeks, compared to the critical where he stands and can make an path route (events 3-9-10-12-15- informed decision as to what must 18-19-19a-20) of 13.5 weeks. The give. questionnaire portion of the re-

70 GAO ReviewlSpring 1978 CRITICAL PATH METHOD view can be delayed, therefore, up Setting Realistic Time to 2 weeks without delaying over- Goals and Completion Dates all assignment completion. How- Setting realistic time goals for ever, questionnaire delays beyond completing a job is difficult. How- 2 weeks will push back the com- ever, when CPM is used, time pletion date by the amount of frames become more clearly de- delay in excess of the 2-week fined because they are related to “slack.” specific activities. This in turn The bottom line is this: A team forces the supervisor and the team can use CPM to save by (1) iden- to plan better. Also, CPM breaks tifying all possibilities of concur- assignment time into visible, rent performance, (2) “stafhg up” manageable segments, allowing a to take advantage of such oppor- team to concentrate on meeting tunities, and (3) spotlighting de- successive, incremental target lays either along the critical path dates, as opposed to one final, or in concurrent activities that make-it-or-break-it completion would lengthen the critical path. date. But what if adequate staff are As the assignment progresses, not available to take full advan- the supervisor will be able to com- tage of concurrent performance? pare the team’s original estimate CPM has advantages here, too, as with the actual time it takes to the diagram is an easily under- perform each activity. This evalu- stood document useful for staffing ation allows the team to continu- purposes, as well as for tactical as- ously update and redefine its goals signment planning and control. so they remain realistic. It will The supervisor can use the dia- also help team members estimate gram to vividly demonstrate the time more accurately for future impact on the completion date if assignments. more personnel are not committed.

Assessing the Impact of New Tasks Conclusions Few GAO audits ever go exactly Completing assignments faster, as originally planned. Analysis a major GAO goal, requires effec- and information needs not fore- tive and continuous assignment seen at the start of the assignment planning and control at the audit often become apparent. With CPM team level. CPM gives a team an the supervisor can determine if the edge in planning, coordinating, new activities can be done concur- and controlling an assignment in rently, thus minimizing the need an uncertain and complex envi- for additional time. However, even ronment. if concurrent processing is not pos- CPM supplies a much needed sible, CPM allows the supervisor methodology to reduce the time it to determine when the new ac- takes to complete an assignment. tivities should be done so as to CPM enables a team to focus on minimize the delay. critical activities, take advantage

GAO ReviewlSpring 1978 71 CRITICAL PATH METHOD of concurrent performance oppor- completion dates. Consequently, tunities within staffing lim- we think CPM can be a valuable itations, assess quickly the impact management technique for GAO of new tasks, and set more realis- assignment supervisors and audit tic incremental time goals and teams.

Hand Signals for Meetings

In a football game you play by the rules. The same rules can apply to your meetings. In Dick Dunsing’s new book, You and I Have Simply Got to Stop Meet- ing This Way, is a set of hand signals that can be used during the meeting to signal a violation.

The Call The Referee’s Signal The Meeting Vioiatlon Too much time; Folding arms across Rambling, motormouthing, delay of game the chest. evading the issue. Personal foul Extending left arm; Negative strokes, discount- making a hacking motion ing, open insults or with the right hand, attacks. held like an axe blade. Off-sides Placing both hands on Getting into someone hips. else’s turf; taking responsibility for doing something another person can do best. Encroachment Rotating the hands around Baiting someone to jump each other. off-sides-and into hot water. Illegal procedure Rotating the hands around Too many people on the field- or motion around each other. participating all at once. Holding Clasping right hand Intentional blocking of over the extended left another player’s idea- wrist. which may help the play to go. Illegal receiver Patting the top of your Reacting to or receiving a down field head. message clearly aimed at another. Interference Making a pushing motion Interrupting another player, forward with both hands, tailgating (putting in on arms extended. or finishing sentences for others), slipping in irrelevant comments.

72 GAO ReuiewlSpring 1978 The Inefficiency of Waste

This century has made itself and creative travel. To pass the known for its prodigality. We tol- time wastefully is to shorten the erate and endure waste. Our period of living. spendthrift habits extend all the way from governments which could cut their administration National Resources costs by applying strict account- keeping and managerial disci- On a national scale, we waste pline, to individuals who waste the bounty and lay waste the even their leisure time. We spend beauty of our country. Waste of foolishly, money, goods, energy, land, forest and minerals could be resources, time and brains. tolerated as long as successive in- Elimination of waste is not crements of new land, forests and something that may or may not be minerals were available for exploi- tation, but the destruction of natu- done. It is an economic necessity, a ’ matter of survival. It contributes ral resources has been going on to success just as surely as does jauntily in the face of inevitable ... f- profit itself. The essence of waste scarcity. People who participate in , consists not in using materials, the popular indifference to this but in using them in ways which squandering of resources would be produce less than the maximum surprised if someone said: “You potential profitable amount of countenance it because you think goods or services. what has the future got to do with Even spare time is wasted. To be me? I’m living now.” able to fill leisure intelligently is Waste is different from using up. the last product of civilization, and Many things are of no value unless at present few people have reached they are used. It is all a question this level. Those who are devoted of how efficiently they are used. to the pleasure principle believe Every sound measure directed that in their hard-won leisure they against waste of our resources should make as little effort as pos- should be welcomed and sible, mental or physical. They are supported. wasting their most precious pos- session. To get the most out of spare hours, they should indulge EDITOR’SNOTE: Even though this article was written some years ago, its message in thinking and learning, reading is very appropriate for our environments or writing, conversation or corre- today. (Reprinted with permission of the spondence, community , domestic, Royal Bank of Canada from its Sep- artistic and aesthetic activities, tember 1967 Monthly Letter.)

GAO ReviewlSpring 1978 73 THE INEFFlClEPlCl OF WASTE

Waste in Business always means more output. If there is not proper control then the There is no more interesting purchase of new equipment will be game for men and women than to nothing but a waste of capital. apply their minds to thinking of Machines and tools must be kept ways to perform work efficiently in such condition as to perform with a saving of time and effort. without fail the amount of work They have to consider it or face ex- reasonably expected of them. Lax- tinction. They cannot leave it to ’ity in maintenance causes gross mechanical forces. A computer is waste through shut-downs. The for getting to-day’s answers. Man- features to seek are: increased agers are for thinking about to- productivity, uniform quality, bet- morrow’s problems and taking ter control, and reduced costs. steps to solve them. There is nothing excellent, bril- It is possible to have waste in liant or economic in employing the top ranks of administration as higher levels of mechanization well as on the floor of the factory, than are needed. A yearning for the desk in the office. The man in the prestige of owning a computer charge must learn where waste may prod a department into get- may occur, sense when it is occur- ting one when an abacus could ring and move diligently to stop it. handle all its needed calculations. The ideal that inspires the formu- lation of the principles of efficient There is waste in the form of management at every level is added cost when schedules are not elimination of waste. This is a followed to bring work to the right vital function, not something section of a department at the tacked on to a job to be thought right time. Men who would not about now and then. think of wasting a dollar in money may be careless in handling material, and throw away or waste many dollars worth of materials Uncovering Waste without a thought. Material To eliminate waste we need to should be looked upon as if it were concentrate attention on finding it. cash and treated accordingly. This is an occasion for calculating Careless work, whatever the thought. Learn where the leaks grade of worker, should not be tol- are. Find out the facts about where erated. Slovenliness wastes not waste exists and the cause of its only the sloven’s time but the time existence. Start with the assump- of those who have to go around fur- tion that no department of busi- ing up things he spoiled or doing ness, no office is so perfectly man- things he neglected to do. aged that a serious search cannot Purchasing is another area to be find a leak to stop. watched. It is not a service func- The efficiency with which tion but a profit-making activity. equipment is used is a vital point The changes made in recent years to check. Good production control in purchasing concepts, organiza-

74 GAO ReviewlSpring 1978 THE INEFFCIENCY OF WASTE tion, personnel and practice are the operation cannot be elimi- producing substantial savings. nated, study possible improve- The difference between good ments. List the various courses of purchasing and poor purchasing action: combination, standardiza- can be the difference between tion, improved sequence, and profit and loss. Wise spending, simplification. careful ordering and thrift in use Much waste of time, space, ma- are just as vital to a good showing terial and energy is due to in the financial statement as is thoughtlessness. Things are al- competent manufacturing. lowed to accumulate so that they Intelligent handling of scrap can take much searching for to find also influence operations. Turning what is wanted. waste products into by-products renders primary resources more valuable. Science functions Budgeting through synthetic chemistry, by- product utilization and the recov- One of the most severe indict- ery of secondary materials so that ments against management is its junk piles rival fields, forests and failure to institute an adequate mines as sources of raw materials. system of budget control. The Time with a capital “T” is infi- result is grievous waste. We can- nitely long; time with a small ‘Y’ not plan accurately without is unfortunately short. It is an knowledge of what is a reasonable element in efficiency; it has value expectation for every phase of the to which may be attributed a operation. money equivalent; it plays a big It may be said that budgetary part in success or failure. control simply means the sys- High on the list of causes of tematizing of foresight and the wasted time is poor planning. The comparing of what is with what cure is to list the jobs to be done in ought to be. The budget will guide order of their importance. Put ev- toward using facilities and assets erything possible on a time-table. to the maximum of their potential- Define goals, work out a program, ity; it provides a method of co- set up time-tables, and concentrate ordinating all buying and spend- on essentials. ing so as to obtain the maximum value; it acts as a safety signal, since it indicates the variance between what is wished for and what Planning Action is being attained; it prevents There are two functions involved waste. It is a test of managerial in eliminating waste: find the facts ability to make things happen in and introduce the improvements. accordance with a plan. Too often management loses much time in studying possible im- Waste 1s Jnefficienq provement without asking why the operation is performed at all. If Before a blue print can be laid

GAO ReuiewlSpring 1978 75 THE INEFFICIEPICY OF WASTE out for the successful conduct of reach the point where we do not any operation we must reject corn- have to reflect whether we will be pletely and finally the idea of tol- wasteful or not; we will be careful erating waste. The ideal is tP by habit and as a matter of course.

Words of One Syllable

When you come right down to it, there is no law that says you have to use big words when you write or talk. There are lots of small words, and good ones, that can be made to say all the things you want to say, quite as well as the big ones. It may take a bit more time to find them at first. But it can be well worth it, for all of us know what they mean. Some small words, more than you might think, are rich with just the right feel, the right taste, as if made to help you say a thing the way it should be said. Small words can be crisp, brief. terse-go to the point, like a knife. They have a charm all their own. They dance, twist, turn, sing. Like sparks in the night they light the way for the eyes of those who read. They are the grace notes of prose. You know what they say the way you know a day is bright and fair-at first sight. And you find, as you read, that you like the way they say it. Small words are gay. And they can catch large thoughts and hold them up for all to see. Like rare stones in rings of gold, or joy in the eyes of a child. Some make you feel, as well as see: the cold deep dark of night, the hot salt sting of tears. Small words move with ease where big words stand still-or, worse, bog down and get in the way of what you want to say. There is not much, in all truth, that small words will not say-and say quite well. Anonymous

76 GAO ReviewlSpring 1978 Foreign Bribes the bill would have made it illegal to falsify accounting records or to Are Mow Illegal lie to independent auditors. These The recently enacted Foreign provisions were dropped, but a Corrupt Practices Act of 1977 pro- pending Securities and Exchange hibits publicly and privately held Commission proposal contains the domestic concerns, their officers, same proscriptions. directors, employees, and share- holders from bribing foreign politi- cians and political parties. Foreign Civilian Personnel bribery is defined as a direct or in- Law Manual direct (e.g., through a foreign sub- sidiary) payment or offer intended So, you think the rules on tak- to promote business interests. The ing leave are simple? The Office of law does not, however, cover the General Counsel issued a 71- “grease” or “facilitating” payments page booklet in December 1977 en- to relatively low-level foreign gov- titled Civilian Personnel Law ernment employees. Companies Manual-Title 1: Leave. Wow! Got making bribes can be fined up to a question on leave? Surely you’ll $1 million; individuals face a find the answer here. maximum $10,000 fine, imprison- ment of up to 5 years, or both. The bill also requires publicly The Two Faces of GAO held companies to maintain a system of internal controls designed We sometimes get criticized for to assure proper authorization and not presenting balanced reports; recording of transactions. They it’s said that GAO is always “one must also keep records which “ac- way.” Not so! curately and fairly” reflect finan- The following is from a report to cial activities. the House Committee on Govern- The legislation is a reaction to ment Operations entitled “Cooper- disclosures of questionable foreign ative Actions Result in More Eco- payments made by over 350 US. nomical Computer Acquisition and companies. As originally proposed, Improved Security at the New Or-

GAO IleuiewlSpring 1978 77 NEWS AND NOTES leans Computer Center” (LCD- working closely with an inter- 77-118, Dec. 23, 1977). agency task group considering The Department of Agriculture was Commission on Government Pro- remiss in not adequately following pre- curement recommendation D-1, to scribed computer system acquisition “improve the system for collection procedures. However, its cooperation and dissemination of statistics on during our review has enabled its pro- procurement by commodity and posed acquisition to proceed with incor- agency to meet congressional, porated modifications. This joint effort executive branch, and industry will result in substantial savings to the needs.” Government and in strengthening secu- Those efforts have been success- rity for New Orleans Computer Center ful. The establishment of a central and National Finance Center operations. system to track Federal contracts, (Emphasis added.) which now amount to about $80 At the same time, GAO is not billion a year, was announced last afraid to tell it like it is when the week. Currently there is no agency occasion demands it. For example, or person who can identify what in another report to the Congress the Federal Government is pur- entitled “The Military Services chasing from whom or how the Are Constructing Unneeded Fam- contracts were awarded. A cen- ily Housing” (CED-78-8, Dec. 29, tralized data system would facili- 1977) we state, in dealing with tate monitoring of the contracting agency comments: process by appropriate agency The Department agreed with the recom- watchdogs and stimulate competi- mendations in principle and with most of tion among contractors by increas- the conclusions * * * but disagreed with ing information on what types of the report’s primary conclusion that un- contracts are available. The new needed housing had been built at the lo- Federal Procurement Data System cations identified in the report. A close and Data Center will be managed reading of the Department’s explanatory and qualifying comments reveals, how- by the Department of Defense and ever, that the Department’s “agreement is scheduled to begin operation by in principle” seeks merely to rationalize next October. and minimize the deficiencies discussed in the report and promises little substan- tive action to resolve the deficiencies. Cost Accounting Standards (Emphasis added.) Board So, you see, GAO does give credit where credit is due and at At September 30, 1977, the Cost the same time calls them as it Accounting Standards Board had sees them. on file 1,488 statements disclosing cost accounting practices sub- Federal Contracts mitted by reporting units of 219 contractors with defense contracts To Be Tracked or subcontracts of $10 million or The Procurement and Systems more. This was reported in the Acquisition Division has been Progress Report to the Congress

78 GAO ReviewlSpring 1978 NEWS AND NOTES

1977 by the Board, which is New OTA Director chaired by the Comptroller Gen- eral of the United States. On January 23, Russell W. In the 1977 reporting period the Peterson was sworn in as Director Board promulgated one Cost Ac- of the Office of Technology As- counting Standard, issued one sessment (OTA). formal interpretation, and made Peterson has had a distin- several important changes in its guished career since receiving his regulations. Ph.D. in chemistry from the Uni- The new standard is No. 413, versity of Wisconsin in 1942. Dur- “Adjustment and Allocation of ing his 26 years in industry, he Pension Costs.” Published in the rose to direct the DuPont Corpora- Federal Register on July 20, 1977, tion’s research and development it became effective on March 10, division. 1978. It is the second standard on the subject of pensions. Its antici- From 1969 to 1973, Peterson pated benefits are (1) increased served as Governor of the State of consistency and uniformity in Delaware. While Governor, Peter- measuring actuarial gains or son also served as Chairman of the losses and assigning them to cost National Education Commission of accounting periods and (2) better the States and of the National Ad- allocation of pension costs to seg- visory Commission on Criminal ments of an organization. Justice Standards and Goals. Interpretation No. 1 to Standard For most of 1973, Peterson No. 401, “Consistency in Estimat- served as Chairman of the ing, Accumulating, and Reporting Executive Committee of Nelson Costs,” was issued in November Rockefeller’s National Commission 1976 and deals with accounting for on Critical Choices for Americans. direct materials not incorporated From late 1973 to 1976, he served into end items. as Chairman of the White House During the year, the Board also Council on Environmental issued a booklet entitled “Re- Quality. statement of Objectives, Policies During 1977, Peterson served as and Concepts,” designed to help President of New Directions, a interested persons understand the nonprofit, international organiza- Board‘s views, work procedures, tion aimed at mobilizing efforts to and policies. solve worldwide problems. At the swearing-in ceremony, CASB Highlights Peterson said he would lead OTA The Cost Accounting Standards so as to help Congress “bring a Board has recently begun publish- more comprehensive and long- ing a new newsletter entitled range view to bear on the de- CASB Highlights. It will be issued cisionmaking process and thereby quarterly and will focus on the contribute to a more promising fu- previous quarter’s major events. ture for people everywhere.”

GAO ReviewlSpring 1978 79 NEWS AND NOTES

I The OGC Adviser Society of Accountants. In a private meeting with the Committee, The OGC Adviser is a journal he suggested various criteria for published quarterly by the Office assessing efficiency and effective- of the General Counsel for the pro- ness in government programs. ( fessional staff of the United States General Accounting Office. Each edition contains articles on topics covering recent or important developments in the law that bear Paperwork Commission upon the performance of GAO work. Topics have included how to Four more in the series of comply with the Freedom of In- interim reports by the Federal Pa- formation or Privacy Acts, what to perwork Commission have been do to avoid violating the Fly published. The first is “The Fed- America Act, and how to contract eral Information Locator System,” for supplies or services. Articles which deals with the lack of an are generally short and overall tracking system that would straightforward in style. Authors identify what information the are generally attorneys, but the Government is collecting, from Adviser’s editors encourage other whom the information is sought, GAO professionals to contribute where it is located, and how new articles on legal issues that might reporting requirements relate to affect the performance of GAO information that is already avail- work. To submit articles for publi- able. The Commission has recom- cation or to contact the editors, mended the development of an call 275-5212 or write to room inventory of public reporting re- 7026, 441 G Street, NW., Wash- quirements imposed on the public. ington, DC 20548. The second report is entitled “In- formation Value/Burden Assess- ment.” This pamphlet focuses on the balance to be achieved be- From Australia tween the value of information col- lected by Government agencies A report dated October 1977 and the burden imposed on its from Australia’s House of Repre- suppliers. “Consumer Credit Pro- sentatives Standing Committee on tection” is the third report. This is Expenditures to its Parliament a study of the paperwork implica- expressed the Committee’s ap- tions of consumer protection preciation for the valuable advice requirements imposed by the Gov- that Elmer B. Shuts gave them ernment. The last report, “Admin- when he was in Australia in Feb- istrative Reform in Welfare,” is ruary 1977. Mr. Staats was there concerned with the complexity and to participate in a series of semi- number of forms related to receiv- nars on efficiency audits which ing public assistance and the prob- was sponsored by the Australian lems this paperwork creates.

80 GAO RmiewlSpring 1978 NEWS AND NOTES

AAA Sets Up ment contracts and grants. Copies International Section may be purchased through: Order Department The American Accounting As- American Institute of sociation has established a special Certified Public Accountants interest section for international New York, NY 10036 accounting. The section was formed in recognition of the need to improve communications among Guide to Accounting professional accountants and to establish international standards. It Periodicals Revised will serve as a clearinghouse to collect and disseminate informa- A new 1978 Author’s Guide to tion about current international Accounting & Financial Report- ing Publications has been pub- accounting efforts and events. lished by the University of Texas Membership is open to GAO staff who belong to the Associa- at Arlington. The guide informs tion. persons wishing to submit articles for publication on read- ership, desired length, form of manuscript, criteria of selection, and approximate leadtime for ac- New Publication on ceptance or rejection. It includes details on more than Auditing and 100 accounting and financial pub- Accounting for Grants-i n-Aid lications issued in the United States, Canada, Australia, Europe, “Federal Grants-in-Aid: Ac- India, Pakistan and South Africa. counting and Auditing Practices’’ The guide lists the International is the title of a new American In- Journal of Government Auditing, stitute of Certified Public Ac- whose editor is John D. Heller, As- countants publication designed to sistant to the Comptroller Gen- aid practitioners engaged in Fed- eral. eral grant programs. The book, A copy of the guide is available written by Cornelius E. Tierney, in the technical library at GAO CPA, and Robert D. Hoffman, Headquarters. Copies may be ob- CPA, explains in detail how the tained from: Government budgets, plans, ac- Accounting Department counts for, and audits Federal University of Texas funds. It outline8 the techniques Arlington, TX 76019 and procedures followed in Federal financial management and auditing and describes how agency fi- Dan Borth nancial functions are organized. It also discusses the subject of ac- The GAO Review records with counting and auditing of Govern- regret the death on February 19,

GAO Reuiewlspring 1978 81 NEWS AND NOTES

1978, in Phoenix, Arizona, of ernment Accountants Association. Daniel J. Borth, former deputy di- He was also a member of the Beta rector of the Financial and Gen- Gamma Sigma, Beta Alpha Psi, eral Management Studies Divi- Phi Kappa Phi, and Omicron Delta sion. Mr. Borth retired in 1971, Kappa honorary fraternities. having been associated with GAO for 5 years. Richard J. Madison Before joining GAO, Mr. Borth was with Louisiana State Univer- Richard James Madison, At- sity, where he served in various lanta’s first regional manager, capacities, including Dean of Ad- passed away on January 30, ministration and Executive Vice 1978, following a short illness. President. During his career, he He was 64. In June 1972 he had also held appointments at the retired after 38 years of Federal University of Illinois, Washington service. State University, Lehigh Univer- Dick Madison entered Gov- sity, West Virginia University, ernment service in 1934 as a and the University of Chicago. clerk in the General Accounting Mr. Borth also served the Fed- Office. During World War I1 he eral Government in the War As- served in the Army and landed in sets Administration, the Bureau of France on D-day with the Allied the Budget, and the Department of invasion forces. After returning Defense. From July 1, 1962, to home, he rejoined GAO and re- June 30, 1964, he served as Dep- mained in Washington, D.C., uty Assistant Secretary of Defense until 1950 when he was selected (Accounting and Audit Policy). by John Thornton to set up a field During World War 11, Mr. Borth office-called a “zone office” at served in the Ofice of the Quar- the time-in Atlanta, Georgia. termaster General with the rank By today’s standards, it was a of colonel. He was a holder of the modest operation, consisting of Legion of Merit. about 50 auditors. They per- Mr. Borth attended the Univer- formed site audits in an area sity of Kansas and the University stretching from Ohio to the Gulf of Illinois. He held B.S. and M.S. of Mexico and from the Missis- degrees in accounting and a Ph.D. sippi River to the Atlantic Ocean. in economics. The Atlanta office was later re- Mr. Borth belonged to the designated a regional office and American Institute of CPAs, the Dick Madison remained its re- American Economic Association, gional manager until his the Society for Public Administra- retirement. tion, the National Accounting As- Dick Madison was a direct de- sociation, the Louisiana Society of sce ndant of President James CPAs, the American Society of Madison. He graduated from Wil- Military Comptrollers, the South- liam and Mary College. He is western Social Science Associa- survived by three sons and four tion, and the former Federal Gov- grandchildren. While in Wash-

82 GAO ReuiewlSpring 1978 NEWS AND NOTES

ington, D.C., he was an ardent participating in the game. He ham radio operator. was also an avid reader, having a During most of his years in At- large library of his own, and fre- lanta he was an active golfer, quently read an entire book be- winning many trophies and fore his early morning departure spending much of his leisure time for work.

Who Counts

It is not the critic who counts, nor the one who points out how the strong man stum- bled or how the doer of deeds might have done them better. The credit belongs to the man who is actually in the arena, whose face is marred with sweat and dust and blood; who strives valiantly; who errs and comes short again and again; who knows the great enthusiasms, the great devotions, and spends himself in a worthy cause; who, if he wins, knows the triumph of high achievement; and who, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory nor defeat. Teddy Roosevelt

GAO ReuiewlSpring 1978 83 BY JUDITHHATTER Chief, Legislative Digest Section

Federal Grant and eral Accounting Office, State and local governments, other recip- Cooperative Agreement Act ients, and other interested mem- of 1977 bers of the public. No later than 2 years after The Congress enacted into law enactment of the law, the results the Federal Grant and Cooperative of the study are to be reported to Agreement Act of 1977 (Public the House Committee on Govern- Law 95-224, February 3, 1978, 92 ment Operations and the Senate Stat. 3) in order to distinguish Governmental Affairs Committee. Federal grant and cooperative The report on the study is to in- agreement relationships from Fed- clude (1) detailed descriptions of eral procurement relationships. the alternative means of imple- The law includes a requirement menting Federal assistance pro- that the Director of the Office of grams and the circumstances in Management and Budget under- which the use of each appears to take a study to develop a better be most desirable, (2) detailed de- understanding of alternative scriptions of the basic characteris- means of implementing Federal tics and an outline of such a com- assistance programs, and to de- prehensive system of guidance for termine the feasibility of develop- Federal assistance programs, the ing a comprehensive system of development of which may be guidance for Federal assistance determined feasible, and (3) rec- programs. ommendations concerning ar- In the course of his study, the rangements to proceed with full Director is to consult with, and to development of a comprehensive the extent practicable, involve system of guidance and for admin- representatives of the executive istrative or statutory changes agencies, the Congress, the Gen- deemed appropriate.

84 GAO ReviewlSpring 1978 LEGISLATIVE DEVELOPMENTS

Apportionment Requirement Cosmetic and Hair Dye for Federal Employment Regulation The statutory requirement that The regulation of coal-tar-based appointments to competitive serv- hair dyes under the Federal Food, ice positions in executive branch Drug, and Cosmetic Act was pro- agencies in the Washington, D.C., posed in two separate pieces of area be apportioned among resi- legislation introduced in January dents of all the States on the basis by Congressmen James J. Delaney of population was repealed by of New York and Andrew Maguire enactment of Public Law 95-228, of New Jersey (H.R. 10512 and February 10, 1978,922 Stat. 25. H.R. 10561, respectively). Both members referred to findings and The repeal was recommended by conclusions in the GAO report en- the General Accounting Office in titled “Coal Tar Hair Dyes, An 1973 and reaffirmed in its report Unregulated Hazard to Consum- on “Conflicting Congressional ers” (HRD-78-22) while explain- Policies: Veterans’ Preference and ing their proposals on the House Apportionment Versus Equal Employment Opportunity” floor. Similarly, Senator Thomas F. (FPCIL77-61, Sept. 29, 1977). Eagleton of Missouri, in urging In summarizing the GAO posi- enactment of the Cosmetic Safety tion, the Senate Governmental Af- Amendments of 1977, S. 2365, fairs Committee, in its report on which he had introduced in De- the legislation, states: cember, referred to the findings of a GAO study “that about 100 in- * * * According to GAO, the ef- gredients listed as suspected car- fect of apportionment, in terms cinogens by NIOSH’s Registry of of encouraging applicants from Toxic Effects of Chemical Sub- all over the country, has been stances are found in cosmetics.”2 minimal, largely because appli- Gregory J. Ahart, director, cants are reluctant to move to Human Resources Division, dis- the Washington area. On the cussed Food and Drug Administra- other hand, GAO pointed out, tion regulation of both cosmetics nationwide competitive exam- and hair dye on February 3, in an inations and rotating agency appearance before the Subcommit- personnel and decisionmaking tee on Oversight and Investiga- authority insures that the dif- tions of the House Committee on ferent geographical areas of the Interstate and Foreign Commerce. Nation are represented in Gov- ’ ernment Affairs at the national Welfare Abuses by Aliens 1evel.l On February 22, Senator Charles H. Percy of Illinois, for

1s. Rept. No. 95-614, December 15, Congressional Record, Vol. 124 (Feb. 1977. 7, 19781, p. S1370.

GAO ReviewlSpring 1978 85 LEGISLATIVE DEVELOPMENTS himself and 12 others, submitted delineates the comparisons and amendment No. 1702 to the descriptions to be included and re- House-passed version of H.R. 7200, quires periodic update of the Public Assistance Amendments of catalog. 1977, for the purpose of correcting welfare abuse by aliens. Senator Percy pointed to the Federal Banking Agency GAO report “Number of Newly Arrived Aliens Who Receive Audit Act Supplemental Security Income Legislation that would require Needs to Be Reduced” (HRD- Federal audits of the Nation’s 78-50, Feb. 22, 1978) which dis- three bank regulatory agencies for closes that in five States- the first time was approved by the California, Florida, Illinois, New Senate Governmental Affairs Jersey, and New York-newly Committee on March 7, 1978. The arrived aliens annually receive bill, H.R. 2176, has already been over $72 million under the sup- passed by the House and is ex- plemental security income (SSI) pected to go to the Senate floor for program. consideration within 2 weeks. Es- sentially, this legislation would Legislative Oversight Act authorize GAO to audit the operating expenditures of the Federal of 1978 Reserve System, the Office of the Comptroller of the Currency, and Congressman Butler Derrick of the Federal Deposit Insurance South Carolina introduced legisla- Corporation as frequently as prac- tion to improve congressional oversight of Federal programs and ticable. activities by requiring (1) greater specificity in setting program objectives, (2) continuing informa- Appearances Before tion on the extent to which pro- Congressional Committees grams are achieving their stated objectives, and (3) periodic review Between January 19, the begin- of new authorizations of budget ning of the second session of Con- authority and tax expenditures. gress, and February 28, GAO offi- Section 202 of H.R. 10421 re- cials made 34 appearances to offer quires the Comptroller General to testimony before the various com- publish a descriptive catalog of in- mittees and subcommittees of terrelated Federal activities, in- Congress. This is a record- , cluding tax expenditures. The bill breaking pace!

86 GAO ReviewlSpring 1978 Twenty years ago the Staff gional manager, Philadelphia) Bulletins (predecessor of The joined GAO. GAO Review) reported that: Ray Hausler (now in the Seat- e Bob Keller (then Assistant to tle regional office) left GAO to the Comptroller General) tes- enter military service. tified before the House Appro- And 10 years ago in the spring priations Committee, Sub- 1968 edition of The GAO Review committee on Foreign Opera- you'll find that: tions, on the annual report of Tony Assia (now in the Gen- the mutual security program eral Government Division) had in Laos. joined GAO after graduation e Vie Lowe (now director of the from Indiana University. General Government Division) and others briefed the House *Lou Fink (now in the Finan- Committee on Government cial and General Management Operations on GAO's report on Studies Division) came to us review of power billings and from the Treasury Depart- related activities under ment. Atomic Energy Commission Jan Goldstein (recently moved contracts with the Ohio Valley to headquarters from the Los Electric Corporation; Elec- Angeles regional office) joined tric-Energy, Inc.; and the our Washington regional office Tennessee Valley Authority. from the New York Institute of Greg Ahart, Gene Birkle, Kyle Technology. Hamm, Stan Sargol, Paul de- *Dave Utzinger joihed our Lassus, Karl Deibel, and Ken Chicago office after graduat- Nelson were among those hon- ing from Milton College. ored at a dinner for new CPAs. Hugh Wessinger (now with the Frank Conahan (now associate Community and Economic De- director, International Divi- velopment Division) passed sion) and A1 Voss (now re- the CPA exam in Virginia.

GAO ReviewlSpring 1978 87 REFLECTIONS

e Walt Henson (then regional Fred Shafer (now director, manager of New Orleans) ad- Logistics and Communications dressed Beta Alpha Psi, Mis- Division) was named associate sissippi State University, on director in the old Transporta- “Audits of Management tion Division. Decisions.” Paul Shnitzer (then attorney, Maurice Sady was designated Office of General Counsel) ad- assistant regional manager in dressed the Defense advanced Philadelphia and Ed procurement management Kolakowski got a similar ap- course, Fort Lee, Virginia. pointment in Los Angeles.

To Restore Public Confidence

Most civil service employees perform with spirit and integrity. Nevertheless, there is still a widespread criticism of Federal Government performance. The public suspects that there are too many Government workers, that they are underworked, overpaid, and insulated from the consequences of incompetence. Such sweeping criticisms are unfair to dedicated Federal workers who are conscien- tiously trying to do their best. But we have to recognize that the only way to restore public confidence in the vast majority who do work well is to deal effectively and fumly with those who do not. President Jimmy Carter March 2,1978

8% GAO ReviewfSpring 1978 GAO STAFF CHANGES

Philip A. Bernstein

Philip A. Bernstein was designated deputy director for Operations in the Human Re- sources Division February 26, 1978. Mr. Bernstein was formerly deputy director of Management Services from July 6, 1976, during which time he also served as acting director, Office of Personnel De- velopment and Services, from July 1977 to February 1978. Mr. Bernstein graduated from George Washington University with a bachelor of arts degree in accounting in 1958. He joined GAO in 19G0, and until 1972 he had a variety of assignments in the former Civil Division, including that of assistant director with the responsibility for planning and directing audit work at the Atomic Energy Commission during 1970-72. In July 1972 he was appointed manager of the Seattle regional office where he served until his appointment to the position of deputy director of Management Serv- ices. He has received the Distinguished Service Award and the GAQ Meritorious Service Award.

GAO RsviewlSpring 1978 89 GAO STAFF CHANGES

Felix R. Brandon 11

Felix R. Brandon I1 was appointed director, Office of Personnel Development and Services, on February 12, 1978. Mr. Brandon received his B.S. degree from St. Louis University in 1960 and served as an officer in the Air Force until 1966. He began his Federal civilian career with the Chicago region of the US. Civil Service Commission serving as an investigator, a personnel management specialist with duties as a personnel management evaluation team member and team leader, and as Assistant Regional Labor Relations Officer. In 1972, he transferred to the National Labor Relations Board as Chief of the Personnel Office’s Evaluation and Labor Relations Program, and served in that capacity until his promotion in 1973 to the position of Deputy Director of Personnel. Mr. Brandon was appointed Director of Personnel, NLRB, in April 1974. Mr. Brandon is a member of the Federal Personnel Administration Career Board. He serves as a member of the International Personnel Management Association’s Legisla- tive Liaison Committee and is currently working with the Civil Service Commission Executive Director, under the aegis of the Interagency Advisory Group, to assume implementation of the newly approved Special Emphasis Employment Program. Mr. Brandon served on a Task Force of the Civil Service Commission and selected agency members to develop concrete proposals for carrying out recommendations of the internal merit staffing review team established to review allegations of violations and abuses of merit principles by CSC employees. On completion of this task force, he was appointed to an Interagency Task Group to review the task force recommendations and develop equivalent actions for agency adoption.

90 GAO ReviewlSpring 1978 GAO STAFF CHANGES

Charles 0.Magnetti

Charles 0. Magnetti, deputy director, Office of Personnel Development and Services, retired on January 31, 1978, after more than 36 years of Federal service-all in GAO. Mr. Magnetti joined the General Accounting Office early in 1942 and was assigned to the Audit Division, where he progressed through several intermediate positions to the position of administrative officer. He transferred to the Division of Personnel as Chief, Classification Section, in September 1951. A year later, when the Classification and Standards Sections were combined he was placed in charge. In November 1969, he was designated assistant director, Personnel Operations, and on March 10, 1975, he was designated director, Office of Personnel Management. After a reorganization in 1977, he was made deputy director, Office of Personnel Development and Services. Mr. Magnetti attended Fordham University and received a J.D. degree from National University (now George Washington University) in 1950, graduating first in his class. He was elected to the National University Honor Society and was awarded the Sigma Delta Kappa Scholastic Key as the graduating member having the highest scholastic standing during 4 years of study. Mr. Magnetti is a member of the District of Columbia and Maryland bars and in 1967 was admitted to practice before the U.S. Supreme Court. In 1952 Mr. Magnetti received the GAO Honor Award, a Meritorious Service Award in 1967, and the Distinguished Service Award in 1974.

GAO ReviewlSpring 1978 91 GAO STAFF CHANGES

James D. Martin

James D. Martin was designated director, Office of Program Planning, January 23, 1978. Mr. Martin has served as deputy director for Operations in the Human Resources Division since December 1974. He received a bachelor of science degree in accounting from Central Missouri State College in 1958 and attended the Program for Manage- ment Development at the Harvard Business School in 1967. He is a CPA (Virginia) and a member of the American Institute of CPAs and the Association of Government Accountants. Since joining GAO in 1958, Mr. Martin has had a wide variety of experience in the former Civil Division, the European Branch of the International Division, and the former Manpower and Welfare Division. Mr. Martin received the GAO Career Development Award in 1967; headed the task force on health facilities construction costs which received the Comptroller General’s Award in 1973: Federal Government Accountants Association’s (Washington chapter) Outstanding Achievement award for 1973; and the Federal Government Account- ants Association’s Achievement of the Year Award for 1973.

92 GAO ReviewlSpring 1978 GAO STAFF CHANGES

Susumu Uyeda

Susumu Uyeda was designated executive director of the Joint Financial Management Improvement Program March 6, 1978, by the four JFMIP principals-the Comptroller General of the United States, the Chairman of the Civil Service Commission, the Di- rector of the Office of Management and Budget, and the Secretary of the Treasury. He will be responsible for developing and directing multiple interagency programs and projects relating to the improvement of financial management in the Federal Gov- ernment. Mr. Uyeda has had a long and distinguished career in the Federal service. He began his career with the Army Audit Agency where he served as assistant district manager of the Pacific District and program director in Headquarters. Between 1963 and 1967, Mr. Uyeda was with the Defense Supply Agency serving as director, Defense Eastern Regional Audit Office. In 1967, he moved to the General Accounting Office where he became assistant director in the former Office of Policy and Special Studies. Since 1969, he has been with the Office of Management and Budget, the most recent position being Assistant for Interagency Accounting Systems. Mr. Uyeda received his bachelor of science degree in accounting from UCLA and master of public administration from the American University. Among his personal awards are the Army Audit Agency’s “Auditor of the Year” Award, the Comptroller General’s Literary Award, and GSAs Public Service Award. Mr. Uyeda is also a part-time instructor for the University of Virginia.

GAO ReviewlSpring 1978 93 GAO STAFF CHANGES Other Staff Changes New Assistant Directors Philadelphia Anthony N. Pinto Community and Economic Development Division New Supervisory Operations Sam A. Madonia Research Analyst General Government Division Daniel C. Harris Financial and General Joseph P. Litzelman Management Studies Division Herbert R. Martinson Human Resources Division David P. Baine Retirements Logistics and Communications Division Federal Personnel and Paul F. Math Compensation Division John S. Emery New Deputy Assistant International Division General Counsel Charles W. Keller

Office of the General Counsel Human Resources Division Vincent A. LaBella Joseph A. Vignali

Logistics and Communications New Assistant Division Regional Ma nag ers Merwin F. Almy Allen W. Sumner Chicago Peter A. Larson Field Operations Division

Detroit Dallas Randall D . Conley Deon H. Dekker

94 GAO ReviewlSpring 1978 GAO STAFF CHANGES

Reassignment-Assistant International Division (from EMD) Directors Joseph R. Ferri

General Government Division (from OIR) Reassignment- Willis L. Elmore Assistant Regional Managers

Human Resources Division (from Atlanta (fromPhiladelphia) OPDS) Stanley E. Dyal Lawrence J. Horinko

Office of Internal Review (from HRD) Seattle (from GGD) Carl R. Fenstermaker Danny L. Statler

The Key to the Bureaucratic Puzzle

Our ability to create a nonbureaucratic congressional office, the existence and the termination of the Federal Fire Council, the reports of advisory committees and Federal whistle blowers, our inquiry into the Government’s use of contractors and consultants and my work with the General Accounting Office all fit together. The Federal bureaucracy, behind those long titles, endless redtape and frustrating procedures, is, in fact, a large number of people trying to do their jobs efficiently and expeditiously. I believe the key to unlocking the bureaucracy puzzle is recognition of and increased attention to some basic commonsense ideas. Senator Patrick J.Leahy of Vermont January 26,1978

GAO ReuiewlSpring 1978 95 I

Office of the Accounting Procedures Act of 1950” (adapted from an address Comptroller General at a meeting of the Washington The Comptroller General, Elmer chapter of the Association of B. Staats, addressed the following Government Accountants on groups: Nov. 11, 1977), Journal of Ac- countancy, February 1978. Virginia Polytechnic Institute and State University (Distin- “Social Indicators and Con- guished Lecturer in Accounting) gressional Needs for Informa- on “Role and Responsibility of tion,” The ANNALS of the the General Accounting Office,” American Academy of Political Blacksburg, Va., Jan. 9. and Social Science, vol. 435, US. Civil Service Commission’s January 1978. orientation seminar, Policy John D. Heller, Assistant to Executives Briefing Program, on the Comptroller General, ad- “Reflections on Responsibilities dressed the Brookings Institution of the Political Executive,” Conference for Business Execu- Washington, D.C., Jan. 27. tives on Federal Government Op- erations on “Functions of the The Brookings Institution’s Con- General Accounting Office” in ference for Business Executives on Federal Government Qpera- Washington, D.C., Mar. 13. tions on “Role and Functions of the General Accounting Office,” Washington, D.C., Jan. 30. Office of the General Counsel Following are recently published Paul G. Dembling, general articles of the Comptroller counsel: General: Participated in the midyear “Why 40 Percent of Eligible meeting of the American Bar Government Accounting Sys- Association public contract law tems Have Not Yet Been Ap- council on Feb. 11 in New proved Under the Budget and Orleans.

96 GAO ReuiewlSpring 1978 PROFESSIONAL ACTIVITIES

Spoke before the American Bar Office of Association State model pro- Congressional Relations curement code program on “Architect-Engineer Selection T. Vincent Griffith, legislative Procedures,” Feb. 12 in New attorney, spoke on the role of the Orleans. General Accounting Office, at the Civil Service Commission’s con- Addressed a joint program spon- gressional briefing conference for sored by the Association of Gov- EPA on Jan. 27. ernment Accountants, the Fed- M. Thomas Hagenslad, legisla- eral Bar Association, and the tive adviser, spoke on the role of National Contract Management the General Accounting Office, at Association on “GAO in the Eye several sessions sponsored by the of the Procurement Storm,” Feb. Civil Service Commission: the 15 in Los Angeles. congressional briefing conference Spoke to Executive Seminar of for HEW on Feb. 2 and two con- Brookings Institution on “Role gressional operations seminars of the GAO,” Feb. 27. held on Feb. 2 and 16. On Jan. 23 and Feb. 27, Peter J. Spoke on “Grant Auditing and McGough, legislative adviser, What Needs To Be Done” before spoke on the role of the General a seminar on grant law spon- Accounting Office, at two corpo- sored by the Federal Bar Associ- rate executive development pro- ation, Feb. 27. grams held by the U.S. Chamber Paul Shnitzer, associate general of Commerce. counsel, spoke before a Federal Bar Association and National Contract Management Association seminar Energy and Minerals Division on “How Protests Are Processed,” Monte Canfield, Jr., director, Dec. 8 in Dayton, Ohio. addressed the following groups: Ronald Wartow, senior attorney: The Conference on Energy for the Georgia General Assembly, Spoke on “Update on Past Year’s at the University of Georgia Protest Decisions Which Might Center for Continuing Educa- Affect R&D Contracting” before tion, on “National Energy Pol- a retreat of the Research Con- icy: Myth or Reality,” Athens, tracts Committee of the Na- Dec. 8. tional Institutes of Health, Jan. 10. The Rocky Mountain Forum on International Issues, at the Cen- Spoke before the Defense ad- ter for Public Issues, University vanced procurement manage- of Denver Research Institute, on ment course on “Problems in “New Dimensions in Energy Formal Advertising,” Jan. 13, in Policy and Organization Regula- Sacramento. tion of Petroleum Pricing and

GAO ReviewlSpring 1978 97 PROFESSIONAL ACTIVITIES

Allocation,” Colorado Springs, CPAs on Feb. 14, Falls Church. Jan. 12. His subject was “Performing The mineral economics graduate Audits for the Government- student association, Pennsyl- Opportunities and Problems.” vania State University, on Walter L. Anderson, associate “GAO and Its Role in Energy director: and Materials Issues,” Univer- Spoke on “The Hardest Part of sity Park, Feb. 16. Software” at a conference presented by the American Insti- tute of Industrial Engineers, Federal Personnel Dec. 12, Washington, D.C. and Compensation Division Spoke on “Recent GAO Work on H. L. Krieger, director, spoke be- Federal ADP Policies” at the fore the National Association of fifth annual caucus of the Com- Retired Federal Employees on puter and Communications In- “The Future of Federal Retire- dustry Association, Feb. 28, ment” in Washington, Jan. 24. Washington, D.C. Kenneth Pollack, assistant director: Financial and General Spoke to the Northern Virginia Management Studies chapter, National Association of Accountants, on “Computer- Division Related Crimes,” Feb. 9, Tysons Donald L. Scantlebury, director: Corner. Spoke on “Accounting in the Spoke to the Montgomery-Prince Federal Government-Its De- Georges chapter of AGA on velopment, Its Needs, Its Prob- “Prevention and Detection Con- lems” at a special seminar spon- trols to Deter Computer Crime,” sored by the Washington, D.C., Feb. 15, Silver Spring, Md. chapter of the Association of Spoke to the Navy Audit Sym- Government Accountants (AGA) posium on “Computer Auditing on Jan. 12. in the Federal Government,” ‘ Was a panelist at a conference Feb. 16, Alexandria, Va. on emerging issues in govern- Spoke to the graduate informa- ment accounting and auditing, tion systems class at the Uni- sponsored by AGA and the versity of Maryland, College Municipal Finance Officers As- Park, on “Computer Auditing in sociation on Jan. 27 in Atlanta. the Federal Government,” Feb. His topic was “What’s Happen- 28. ing in the Audit Standards Joseph L. Boyd, assistant direc- Area.” tor, presented a seminar on “Com- Spoke to the Northern Virginia puter Auditing” to the North chapter of the Virginia Society of Carolina State auditors in Raleigh

9a GAO ReviewlSpring 1978 PROFESSIONAL ACTIVITIES

on Dec. 8. He was assisted by John Participated in a workshop on Lainhart and Barry Snyder. “The Effects of Federally As- sisted Programs on State and Ernest H. Davenport, assistant Local Governments” at the director, was elected to a 3-year seventh financial management term as council member-at-large of conference sponsored by the the American Institute of Certified Joint Financial Management Public Accountants at the annual Improvement Program, Feb. 6 in meeting in Cincinnati. Washington, D.C. George L. Egan, Jr., assistant Spoke on “GAO Audit director: Standards-How They Interface Participated in a workshop and With Federally Assisted Pro- was a guest speaker at a joint grams” before the Cincinnati meeting of the St. Louis, Kansas chapter of AGA on Feb. 16. City, and mid-Missouri AGA Bill Hedling, operations re- chapters on the “Single Audit search analyst, and Herb Martin- Approach to Federally Assisted son, supervisory operations Programs,” Dec. 1-2, in Lake research analyst, arranged and Ozark, Mo. participated in a program evalua- Spoke at the Annual Financial tion seminar for the Interagency Management Seminar on “The Audit Training Center in Auditing Process,” Feb. 17 in Bethesda, Jan. 25-26. Washington, D.C. An article by William P. Bob Ryan, assistant director: Johnston, assistant director, called “Computerizing the Pro Forma Addressed the Dallas chapter of Workpaper” and originally pub- the Texas Society of CPAs on lished in The GAO Review, sum- “Audits of Federally Assisted mer 1976, was republished in the Programs and Intergovernmen- International Journal of Govern- tal Audit Cooperation: Problems ment Auditing, January 1978. and Prospects,’’ on Feb. 14. His presentation was part of a l-day Gordon J. Filler, supervisory “Accounting and Auditing systems accountant, was program Update-Governmental Organi- moderator for the seminar “OMB, zations.,, GAO, Treasury, CBO, and YOU” conducted at George Washington Was general chairman for the University by the Washington joint AGA and Municipal Fi- chapter of AGA on Jan. 12. nance Officers Association conference on “Emerging Issues in John W. Lainhart, supervisory Government Accounting and management auditor, and Barry Auditing” held in Atlanta, Jan. Snyder, management auditor, gave 26-27. a presentation on “A Simultane- ous-Parallel Approach to Testing WA.Broadus, Jr., assistant di- Computerized Systems” to the rector: Patuxent chapter, Association for

GAO ReviewlSpring 1978 99 PROFESSIONAL ACTIVITIES

1 Systems Management, in Wilbur W. Bailey, assistant di- I Philadelphia on Jan. 10. They gave rector, addressed the executive the same presentation to the committee of the Radio Technical Philadelphia chapter of the Insti- Commission for Aeronautics on tute of Internal Auditors on Feb. Feb. 28. He described a recent 13. GA.0 review and impending report Ivan Trotsky, systems account- entitled “Navigation Planning- ant, joined the newly organized Need for a New Direction” (LCD- budgeting and financial manage- 77-109). Robert Carpenter, audit ment section of the American So- manager, assisted Mr* Bailey in ciety for Public Administration. the presentation and the question and answer session which followed. General Government Division Bob McKenzie, audit manager: Bill W. Thurman, assistant di- Coedited a National Bureau of rector, lectured at the annual in- Standards special publication, tergovernmental relations seminar released in October 1977, enti- held by the Civil Service Commis- tled “Audit and Evaluation of sion’s Executive Seminar Center, Computer Security” (NBS SP Berkeley, Calif., Jan. 30. 500-19). Addressed the New York City seminar on computer security, Human Resources Division held for the city’s data processing executives on Dec. 2. The Ronald F. Lauve, associate di- subject of the presentation was rector, discussed GAO’s role and “Application Programming Se- responsibilities in evaluating Fed- curity and Auditability.” eral programs at program evaluation workshops at the Federal Addressed the Diebold Research Executive Institute, Charlottes- Program’s work session on risk ville, Va., on Jan. 17 and Feb. 22, management of management in- 1978. Mr. Lauve was assisted by formation system facilities, held Joseph F. Delfico, assistant direc- in New York City on Dec. 14. tor, Program Analysis Division, at Mr. McKenzie spoke on the “Re- the February workshop. sults of the National Bureau of Standards Invitational Work- shop on Audit and Evaluation of Computer Security.” He was Logistics and General Chairman of the Na- Communications Division tional Bureau of Standards workshop. Fred J. Shafer, director, addressed the Society of Logistics Addressed the 19th Interna- Engineers in Washington, D.C., tional Operational Data Secu- Jan. 26, on wartime logistics. rity Workshop at Orlando, Fla.,

100 GAO ReuiewlSpring 1978 PROFESSIONAL ACTlVlTl ES

Feb. 22, on the subject of “EDP “Management of Scientific and Auditing and Controls.” Engineering Activities” for senior research and development managers at the Civil Service Commis- Procurement and Systems sion in Washington, D. C., on Dec. Acquisition Division 15. C. William Moore, Jr., assistant Richard W. Gutmann, director, director, was elected president of spoke on the role and respon- the northern Virginia chapter of sibilities of GAO at a luncheon the National Association of Ac- meeting of the management policy countants, an organization dedi- group of the Electronic Industries cated to accountants’ self- Association in Washington, D.C., development and continuing on Feb. 7. education. Frank P. Chemery, associate director, spoke on the role of GAO in major weapon systems acquisition and OMB Circular A-109 at the Program Analysis Division Navy Logistics Management Harry S. Havens, director, ad- School on Jan. 20. dressed a jointly sponsored Ph.D. Andrew B. McConnell, associate colloquium on behalf of the Fac- director: ulty of Accounting and the School Spoke on the work of GAO’s task of Public Administration, at Ohio force on OMB Circular A-76 State University in Columbus, (procuring goods and services Feb. 24. His subject was “The from the private sector) before Evolution and Current Role of the National Association of GAO .” Service Contractors on Dec. 5, Dean K. Crowther, deputy direc- before the National Council of tor, spoke on “Implications of Technical Service Industries on Zero-Base Budgeting for GAO’s Jan. 26, and before the Na- Role in Auditing and Program tional Contract Management Evaluation” before the American Association’s panel on “Con- Association for Budget and Pro- tracting Out” on Feb. 1. gram Analysis symposium, in Conducted a seminar entitled Washington, Jan. 26. “GAO Looks at Government Dennis Dugan, associate direc- Contractors’’ at the 40th annual tor, and Lamar White, supervisory convention of the National As- management auditor, testified on sociation of Supervisors on Feb. the “Potential Effects of a Na- 21. tional Mandatory Deposit on Bev- Donald E. Day and Dr. John G. erage Containers” before the Joint Barmby, assistant directors, and Committee on Energy of the Joe W. Johnson, supervisory au- Commonwealth of Massachusetts ditor, participated in a seminar on Legislature in Boston, Feb. 27.

GAO Reviewispring 1978 101 PROFESSIONAL ACTIVITIES

Osmund T. Fundingsland, as- can Society of Criminology in At- sistant director, was elected to the lanta, Nov. 18. conference committee of the Na- Alan Siegfried, auditor, is tional Conference on Advancement presently serving as director of the of Research, for a term of 4 years. Patuxent, Maryland, chapter of Joseph Comtois, assistant direc- the Association for Systems tor, spoke on “Changing Patterns Management. of Federal Aid to State and Local Governments” and the importance Field Operations Division of the role of State policy in the distribution of Federal aid at the western conference of the Council Chicago of State Governments in San Ken Boehne, supervisory au- Francisco, Mar. 3. ditor, spoke on “GAO’s Employ- Marianne Kah, management ment Outlook” to university analyst, participated in a panel placement officers at the Gov- discussion on “National Growth ernment College Relations Coun- and Development Policy and Re- cil for the Chicago Area, Dec. 15. gionalism” at the national confer- Bob Rodriquez, auditor, repre- ence of the American Society for sented GAO at “Careers in Gov- Public Administration, Phoenix, ernment Day,” Governors State Apr. 12. University, Jan. 23. Elaine 0. Walker, management Mary Quinlan, auditor, repre- auditor: sented GAO at “Government Coconvened a panel on “Assess- Career Day,” Mundelein College, ment of Congressional Inter- Feb. 1. governmental Operations” at Velma Butler, auditor, repre- the 1978 American Society for sented GAO at “Governmental Public Administration confer- Information Career Day,” Uni- ence in Phoenix, Apr. 9-12. versity of Illinois, Circle Campus, Feb. 13. Was appointed to cochair the young professionals forum of the National Capital Area chapter Denver of the American Society for Pub- George D. Doyle, supervisory lic Administration. Forum acti- auditor, conducted a seminar on vities are designed for persons GAO audit standards for the who are relatively new to pub- local government services divi- lic service. sion, Montana Department of Steve Bryant, supervisory man- Community Affairs in Helena, agement analyst, spoke on “An Dec. 15. Evaluation of the Effect of Alcohol Eva S. Copland, supervisory Programs on Alcohol-Related auditor, was elected to the posi- Crime, 1968-73” before the Ameri- tion of president-elect of the

102 GAO ReviewlSpring 1978 PROFESSIONAL ACTIVITIES

Denver chapter of the Associa- Conducted a l-day practical busi- tion of Government Accountants, ness education seminar on audit- Nov. 17. She is currently serving ing and the computer at Califor- as president for the 1978-79 nia State University, Fullerton, term. Jan. 28. Lowell E. Hegg, supervisory Donald H. Freidman, supervis- auditor, spoke on “GAO: Its Roles ory auditor, spoke on “The Role and Career Opportunities” to the of GAO in the Federal Govern- Beta Alpha Psi accounting ment” at California State Uni- fraternity at the University of versity, Dominguez Hills, Feb. Denver, Jan. 30. 10. Duane A. Duffy, management Victor Ell, audit manager: auditor, discussed career oppor- Was guest speaker at the Nov. 4 tunities in GAO with Denver seminar of Beta Alpha Psi, area high school students at the California State University at Los Denver Career Education Center, Angeles chapter. Mr. Ell’s topic Oct. 23. was “The GAO Today.” Was honored with the Los Los Angeles Angeles Federal Executive Jan H. Goldstein, supervisory Board’s distinguished public auditor, spoke to the Junior Fed- service award, Jan. 25. The eral Executive Board on “GAO award, presented at an awards and the Changing Role of Gov- luncheon by actor Hugh ernment,” Sept. 9. He spoke to the O’Brien, was in recognition of UCLA Accounting Society on Mr. Ell’s many contributions to “The Role of GAO in Govern- the community and in review of ment,” Oct. 18. Mr. Goldstein Federal health programs. also addressed a Mission College class on “Supervision in Govern- ment.” San Francisco Frederick Gallegos, manage- Jack Birkholz, audit man- ment analyst: ager: Had his article on “Timesharing Participated in a workshop on Administration Within a Gov- “Auditing Federal Grants at the ernment Agency” published in Local Level and GAO Audit the November-December issue of Standards” before the National Timesharing Users magazine, In- Association of Black Accountants, teractive Computing. Inc., Sacramento chapter, Feb. 4. Is teaching a COBOL pro- Participated in the National gramming class at California Contract Management Associa- State Polytechnic Univer- tion Workshop on “The Need sity, Pomona, for the winter for a Professional Administra- quarter. tive Structure to Support Grant

GAO Reviewispring 1978 103 PROFESSIONAL ACTIVITIES

and Assistance Programs,” in Charles D. Mosher, audit man- Palo Alto, Jan. 17. ager, was the guest speaker in Participated with Charlie Vin- Seattle at a meeting of the execu- cent, assistant regional man- tive officers of the URS Com- ager, in an operations audit pany, an international profes- seminar for the Peninsula Palo sional services organization com- Alto chapter of AGA, Jan. 18, prising engineers and economists and the San Francisco chapter, who serve as consultants on large Mar. 2. engineering and economic development projects. He spoke on Seattle the organization and objectives of GAO, with special emphasis on John E. Cass, management au- environmental reviews. ditor, addressed the consumer issues class of the College of Busi- Alvin 5’. Finegold, supervisory ness Administration, University GAO auditor, discussed GAO’s of Oregon, Nov. 21. He spoke on review of Federal grant assist- the role and functions of GAO ance for educating handicapped and Federal agency activities in children with: the consumer area. The board of directors of the Stephen J. Jue, management National Association of State auditor, and Edwin C. Giddings, Directors of Special Education, auditor, participated in a discus- Feb. 8, in Alexandria, Va. sion before the graduate class of The Executive Board of the the School of Public Administra- Council of Administrators of tion, University of Washington, Special Education, Feb. 28, in Nov. 23. Their topics were “Au- Las Vegas. diting Today” and “Developing Audit Issues.” David K. Connolly, auditor, was Marvin F. Case and Donald A. reappointed to a third term on the Praast, supervisory management advisory board of the School of auditors, and Stephen Jue dis- Business, Administration and cussed “Auditing, Issue De- Economics, Seattle Pacific Uni- velopment, and Agency Relation- versity, for school year 1977-78. ships” before a class in supervi- The board furnishes advice to the sion and management in the pub- school on planning, future de- lic service at South Seattle velopment, curricula, and other Community College, Dec. 7. projects.

104 GAO ReviewlSpring 1978 PROFESSIONAL ACTIVITIES

New Attorneys Recently Admitted to the Bar Listed below are staff members who have advised the Office since April 1, 1977, that they have been admitted to the bar in the States shown. J. Lynn Caylor Ohio Edward L. Fitzmaurice Massachusetts Christopher K. Harris Massachusetts Andrea J. Kole Maryland Robert W. Parker Maryland Doreen S. Stolzenberg New York

Government Employees

I dwell on Vic’s [vic Smiroldo, Chief Counsel and Executive Director of the Post Ofice and Civil Service Committee of the House of Representatives] death because I seem to have felt it more personally than most that have touched me. Partly because his death makes my own mortality appear so tenuous. Partly because he had done so many kind and thoughtful favors for me. Partly because I admired so strongly his intellect and his unique capacity to strategize legislative efforts. But mostly because Vic worked himself to death on my behalf. And I mourn the fact there are a lot of bureaucrats out there killing themselves, too, on my behalf, and at the same time, being lumped together, as was Vic, in every demagogic attack on government employees made by every pygmy politician that glories in the cheap shot. Jerry Walkie Federal Times March 6,1978

GAO ReviewlSpring 1978 105 The following new professional staff members reported for work during the period November 16, 1977, through February 15, 1978.

Rnancial and General Igoe, Thomas P. Providence College Management Studies Jeong, Henry Q. Los Angeles State Dhrision University

Federal Personnel Slowitsky, Joan Hofstra University and Compensation Willis, Jo Ann University of Georgia Division

General Government Best, Alexander Columbia Union College Division Dawson, David New Hampshire College Tarosky, David McGill University

Human Resources Berkowitz, Steven J. George Mason University Division

International Natalicchio, Joseph Columbia University Division Stepp, William University of Maryland

Logistics and Kaeppel, Paul USAF Institute of Communications Technology Division

Management Services Bowling, Timothy Drew University Organt, Gerald Georgia Tech

Office of Administrative Marcus, Geoffrey Arizona State University Seruices

Office of the General Blatch, Maralyn Marquette University Counsel Law School

106 GAO ReviewlSpring 1978 NEW STAFF MEMBERS

Crowley, Leonard George Washington University Jacobson, Jeffrey South Carolina Law School Kramer, Stuart Tulane University School of Law Lunter, Gary George Washington University Pogany, Andrew Case Western Reserve University School of Law

OfRce of Librarian Merryman, John S. Beloit College

Oflice of Personnel Kane, Julie Madison College Development and Kelly, Kathleen Immaculata College Sedces Orlando, Ann State University of New York Urban, Judith University of Maryland

Ofiice of Publishing Luckenbaugh, Margie Shippensburg State Services College

Program Analysis Peterson, Cathy University of Michigan Division

Procurement and Walne, George Texas A&M University Systems Analysis DMsion

REGIONAL OFFICES Atlanta Williams, Clark Alabama State University Boston Hamilton, Roger University of Southern California Cincinnati Leary, Ann Boston State College Wise, Dennis Central State University Shapiro, Mary Internal Revenue Service Chock, Lin-Lin University of Texas Washington Bennett, Marian George Washington University Kearns, David Tulane University Lusby, Gordon University of Maryland

GAO ReviewlSpring 1978 107 In reading the summer 1977 James Bowers, now working for issue of The GAO Review. I was the Defense Logistics Agency. intrigued by the diversity of two While working in one of the articles, both dealing with work- contractor’s departments, James paper preparation. Francis found some important informa- Doyal, stressing the importance tion. Not having large enough ,of format as well as content, in- paper with him, he borrowed an sists on mounting of documents, odd-size sheet from the contractor etc., and James Barnhill, stres- and more or less scribbled the in- sing the need to streamline the formation on it. Jim intended to files, would not mount, would recopy the data on standard-size, write on both sides of schedules, 14-column paper, but Carl, want- etc. ing to get on with development of I have no bone to pick with the finding it indicated, decided Francis. Having orderly, well- to use the paper as it was. documented files of working pa- That sloppy-looking paper be- pers makes the report easier to came the focal point for the de- write and expedites review. But I velopment of a finding that the remember a number of instances contract was significantly over- when nonstandard, sloppy- priced. The audit staff referred to looking papers served our pur- it frequently in developing the pose well. One instance will suf- finding, as did the Washington fice to illustrate. staff in processing the report. Soon after regional offices re- Upon receipt of the draft received permission to review the port, agency officials concluded pricing of fixed-price contracts, I they had been had, and turned was managing a review at a con- the matter over to the Depart- tractor’s plant. I do not recall the ment of Justice. It became my lot entire audit staff, but the site to explain the situation to an FBI supervisor was Carl Deibel and investigator assigned to the case. one of the staff members was This meant, among other things,

108 GAO ReviewlSpring 1978 READERS’ COMMENTS showing him the working paper. from the federal government- By this time it was wearing which are not quite the same as through at some places where it grants to “state and local gov- was creased, and looking even ernments” qua governments. worse than I remembered it, but Some day, I would like to see a still stoutly doing its job of sup- similar chart showing the porting GAO’s report. amount of actual bucks that folks Although I wished at that point in state capitols, county court- that Carl had let Jim recopy that houses and city halls get to use paper, it resulted in the Justice for federally -and/or locally spon- Department making a recovery sored governmental programs equal to the overpricing. Another per se. I’ve done a good deal of nice result was that both Justice budget analysis of these charts and GAO could claim credit for over the years and frankly am the recovery. amazed that GAO would re- publish the chart without some Arnett E. Burrow explanation of the fact that Assistant Regional Manager transfer payments to individuals Kansas City are bulked in it with what one normally thinks of when seeing The following letter was re- the chart’s title. ceived by the Comptroller General In addition to transfer pay- from Randy H. Hamilton, Dean of ments to individuals, I do not the Graduate School of Business think that food stamps or ag- Administration of the Golden ricultural commodity price sup- Gate University in San Francisco. port programs or the budget of the National Council on the Arts In the fall 1977 issue of The and Humanities or school GAO Review there is reproduced lunches or the budget of the Cor- on page 27 a chart purporting to poration for Public Broadcasting show “Federal Grants to State or the budget for the American and Local Governments.” It is the Printing House for the Blind or usual chart produced in the an- payments supporting the nation’s nual Special Analyses of the US. capital (the District of Columbia) Budget. or support for Gallaudet College That chart is one of the banes and lotsa other things really con- of my “intergovernmental life,” stitute “federal grants to state and I am upset with it each year and local governments.” as it appears. Consequently, someone in your It purports to show a tremend- shop might go through the line ous increase in “federal grants to items that constitute the basis of state and local governments.” It the amounts shown in the charts does not. The tremendous in- and differ entiat e be tween creases that it shows include amounts that are truly grants to transfer payments to individuals state and local governments and

GAO ReviewlSpring 1978 109 READERS’ COMMENTS

those which are included in the a line based on the degree of “bottom line” which are not so by State and local discretion does any stretch of reasonable imagi- not seem feasible. nation. Similarly, I would not be very comfortable with a definition The Comptroller General’s that excluded all grants intended reply: to finance transfer payments. Historically, welfare has been a Thank you for your letter of local responsibility, and while a January 17 concerning the Fed- major portion of the cost is now eral aid chart which was used to borne by the Federal Govern- illustrate an article in the fall ment, the money still passes 1977 issue of The GAO Review. through the hands of State and I understand your problems local governments. And those with the definition underlying levels of government still have that chart, but I’m not sure those the primary say in deciding how problems can be overcome. Given much will be spent. To me, that the fuzziness of the objectives of looks like a Federal aid program. most Federal programs and the In summary, I conclude that close (sometimes almost incestu- the OMB presentation is rea- ous) relationship between the sonably appropriate, provided it administering groups in Federal, continues to provide enough sup- State, and local governments, it porting detail to permit analysis would be virtually impossible to of the component parts. I think develop a “clean” definition. the tables in Special Analysis H Almost no programs provide do a pretty good job of that. money with no strings at all; I hope this is helpful, but we even general revenue sharing may just have to agree to dis- has some strings. On the other agree. Incidentally, you may be hand, almost every program in- interested in our recent report, volves some discretion at the “Changing Patterns of Federal State and local level; AFDC Aid to State and Local Govern- benefit levels, for example, are ments, 1969-75,” and I am en- set by State law. Trying to draw closing a copy.

110 GAO ReviewlSpring 1978 Annual Awards for Articles Published in The GAO Review Cash awards are available each year for the best articles written by GAO staff members and published originally in The GAO Review. Each award is known as the Award for the Best Article Published in The GAO Review and is presented during the GAO awards program held annually in October in Washington. One award of $500 is available to contributing staff members 35 years of age or under at the date of publication. Another award of $500 is available to staff members over 35 years of age at that date. Staff members through grade GS-15 at the time of publication are eligible for these awards. The awards are based on recommendations of a panel of judges designated by the Comptroller General. The judges will evaluate articles from the standpoint of the excellence of their overall contribution to the knowledge and professional development of the GAO staff, with particular concern for: Originality of concepts. Quality and effectiveness of written expression. Evidence of individual research performed. Relevancy to GAO operations and performance.

Statement of Editorial Policies 1. This publication is prepared primarily for use by the professional staff members of the General Accounting Office. 2. Except where otherwise indicated, the articles and other submis- sions generally express the views of the authors, and they do not necessarily reflect an official position of the General Accounting Office. 3. Articles, technical memorandums, and other information may be submitted for publication by any staff member. Submission should be made through liaison staff members who are responsible for representing their offices in obtaining and screening contributions to this publication. 4. Articles submitted for publication should be typed (double-spaced) and generally not exceed 14 pages. The subject matter of articles appropriate for publication is not restricted but should be determined on the basis of presumed interest to GAO professional staff members. Articles may be submitted on subjects that are highly technical in nature or on subjects of a more general nature.

GAO ReviewlSpring 1978 111 THE GAO REVIEW

Editor Logistics and Communications John D. Heller Division Jacob W. Sprouse Editorial Assistance Procurement Systems Acquisition Office of the Comptroller General Division Josephine M. Clark Philip W. Pennington Management Services Program Analysis Division Michael Carlson Peter A. Smith Carmelo Ciancio Management Services Jon Silverman Tom Franklin Mimi Stockdell Field Operations Division Grace Williamson J.P. Compete110 Atlanta A. L. Patterson Liaison Staff Boston Office of the General Counsel Lester P. Slater, Jr. Vincent A. LaBella Chicago Office of Internal Review Daniel C. White Carl R.Fenstermaker Cincinnati Office of Policy David P. Wilton Frank Borkovic Dallas Office of Program Planning James J. Jodon Daniel L. Johnson Denver Claims Division John T. Lacy James C. Farley, Jr. Detroit Community and Economic Milo L. Wietstock Development Division Kansas City James P. Hunt Arnett E. Burrow Energy and Minerals Division Los Angeles Jack Bachkosky Eugene T. Cooper, Jr. Federal Personnel and New York Compensation Division Ngaire Cuneo Joseph J. Kline Norfolk Financial and General Management Lindsay B. Harwood Studies Division Philadelphia Ronell B. Raaum Maurice Sady General Government Division San Francisco 0. D. McDowell Mathew J. Lopez Human Resources Division Seattle James F. Walsh Alvin S. Finegold International Division Washington Charles E. Hughes Val J. Bielecki