he ___

:______REVIEW

The ____

.'GAO 1979 ___REVIEW

Contents Volume 14 • Issue 1 • From Our Briefease GAO and the Written \Vord Recognition of Audit in Government Twenty Hidden Bureaucratic Meanings Continuing Training of Auditors ASSisting Congressional Staff We Never Thought You Would Ask Us ...

:1 The Detroit Region

15 The War on Selenee Scott L. Montgomery

,18 Helping U!Ii FInd Our Way Janice Kosko

20 Annual GAO Honor Award!li Ceremony 22 The Prlvaey Aet and the Freedom of Information Aet: Where Doe!li GAO Fit? Theodore Roman, Jr.

25 Fraud Deteetion: What (!Ii The Audltor'!Ii Role? James T. Campbell

2S Auditing Senate Fluanelal DI!lielo!liure Statement!li Pasquale L. Esposito

32 Program Evaluation and Federal Program!li John Scanlon and John Waller

,36 30 Year§ of dFMIP

i

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20401 - Price $1.50 (single copy). Subscription Price-:, $6 per year; $1.50 additional for foreign mailing. Contents 38 GAO's Aetlon OfBee for FIghting Paperwork Christopher T. Smith

41 Risk and Computer ReUabmty FranciS Langlinais and James Musial

45 No Roof On Housing Costs Ron Wood

47 Auditing in Booties and Bonnets AI Stapleton and Gill Fitzhugh

49 Writing for Satisfaetion and Reeognltlon Kay H. Bailey

51 Assignment: Simplify the Taxpayer's Chore Christopher R. Abraham, Gerald P. Barnes, and Amos Romanoff

54 The Personal Toueh-An Effeetive Way to Obtain Questionnaire Responses Robert Piscopink and Donald Weisheit

56 Legislative Developments 60 ReDeetions

62 GAO Staff Changes

66 New Staff Members

68 Professional Aetivities

75 Bookmark Dragons at the Gate

76 Reporting on GAO Alumni

H FroID Our Brlefease

GAO and the Written executive branch too often adopt a "we­ members of the armed forces Word they" attitude toward the audit com­ bureaucracy. In our belief that large or­ ~unity. But, when the person taking the ganizations tend to share similar traits, By now, everybody is aware of how tl me to boost Government auditing is the we publish the list intact: conscious GAO has become about its President of the United States, we are own publications. Audit reports, the an­ hopeful that the sentiment will becarried Concur generally-I haven't read the nual report, and-yes-the GA a Review throughout the organizations of document and don't want to be bound are scrutinized to assure that the government. to anything I might say. language is straightforward and that the In October, the President signed the In conference-I don't know where he is. form.at is neat. But what about the per­ Inspector General Act of 1978 into law~ Passed to higher authority-Pigeon­ ception of GAO that the public receives enacting the legislation known as H.R: holed in a much more sumptuous from the publications of others? 8588 into Public Law 95-452. The cere­ office. We were pleased to learn that the two­ mony at the White House to mark the Appropriate action-Do you know what vol~me study of the history and organi­ signing was attended by leaders from to do with it? We don't. zation of our institution by the National the executive and the legislative Giving him the picture-A long, con­ Academy of Public Administration is at branches of Government and was fUSing, and inaccurate statement to a publication stage. According to author sparked by some enthusiastic newcomer. Frederick C. Mosher, Westview Press of comments about auditing. Under active consideration-We have Boulder, Colorado, the publisher of the The President, in hisformal statement never heard of it. However, we'll try to books, expects to be ready to distribute noted that the administration will main~ find it in the files. them in early spring. In addition we tain . a long-term "commitment to im­ Has received careful consideration-A increasingly find that other book; are prove economy, efficiency, effective­ period of inactivity covering a time lag. devoti ng serious attention to the study of ness, and integrity in the administration Have you any comments-Give me GAO. of Federal programs." He stated that he some idea what it's all about. Re~ently received by us is a biography would continue to make a "concerted The project is in the air-I am com­ of Enc L. Kohler (Eric Louis Kohler: effort to root outfraud, abuse, and waste pletely ignorant of the subject. Accounting's Man of Principles, Reston in agency programs." You will remember-You have forgot­ P~~lishing Company, 1979), edited by In .remarks delivered at theceremooy, ten, or never knew, nor do I. William Cooper and Yuji Ijiri, that President Carter paid tribute to the Transmitted to you-You hold the bag features a substantial amount of GAO leaders of Congress who authored and awhile. I'm tired of it. history. Besides documenting Kohler's pushed the legislation through a unani­ Itisrecommended-Wedon'tthinkitwill long-time association with GAO the m?~s vote in both Houses. Following the work, but you go ahead and stick your book includes three separate chapters onglnal sponsor of the bill in Congress, neck out and try it. on the topics of: GAO's Corporation Representative Fountain of North For compliance-Sure it's silly, but you Audits Division and its impact; the turn­ Carolina, Mr. Carter indicated to the gotta do it anyhow. around at GAO under post-World War" ~udience that "the standard for inspec­ For necessary action-We don't know Comptroller General Lindsay Warren; tion and auditing (by the 12 Inspectors what they want, so you do it. and the development of audit standards General) will be worked out by the For immediate action-We have stalled at GAO. Authors of these essays include General Accounting Office, working it long enough, nowyoudosomething former high-ranking GAO staff closely with the Office of Management about it. members Karney Brasfield and Walt and Budget." For signature-I thought it up, but you Frese as well as long-time GAO con­ Only time will indicate if the sign it and take the rap. sultants Robert Mautz and Joseph Pois. expectations of the President will be Expedite-To add commotion to con­ Interested readers will have to wait achieved by the responsible parties in fusion. until a future issue of this magazine to the executive branch. As we pledge our Higher headquarters-A semi-organ­ read a full-length review of the book. But cooperation, we can only echo the ized mass of partially controlled con­ one point is clear: the public receives in­ sentiment which concludes each White fusion. for.m.ation about, and develops its House press conference: "Thank you, Inspector-A "mad dreamer" with a opInion of, the GAO from a wide variety Mr. President." nasty mind .. of sources. We only wish'that each ref­ It is estimated"':'" This is my guess. Now erence were as positive and as refresh­ you guess. ing as the volume on Kohler. Twenty Bidden Bureau... erade Meanings Continuing TraIning or Auditors Reeognldon or Audit In It's not often that an envelope arrives Gove...... ent to our attention that causes the entire . Of course, everybody favors con­ office to laugh aloud. But it did happen It always comes as a pleasant surprise tinuing education and profeSSional de­ recently, when one headquarter alum­ velopment activities for government when someone in the executive branch nus-who was recently aSSigned to a of our Government recognizes the im­ auditors. But until recently, we were un­ p~sitio~. where he must deal extensively sure of exactly how deeply the sentiment portance of auditing in governmental With military personnel-sent us his key Improvement, since the personnel of the was held and in howmanydifferentways for unraveling the jargon used by certain it was shown. GAO Review/Winter 1979 1 From Our Briefcase

The need to improve audit capability look forward to the arrival of Staff, a the transmittal letter and there are as­ in developing nations was made clearto journal published by the House Select signment codes on the last page of the us in a recent letter by Comptroller Committee on Congressional report. Everyone "needs" different General Staats to the supreme audit in­ Operations as a medium of communica­ numbers for different reasons, all of stitutions of 109 developing nations. It tions on Capitol Hill. which seem to be valid. Placing them all seems that the Comptroller General, In the last3 of its 17 issues, Staff began on one page would betoo cumbersome. along with his fellow governing board a new feature which appealed to us very The most recent proposal for inclusion members of the International Organiza­ much. Under the somewhat deceptive was issue area codes. tion of Supreme Audit Institutions heading of "Official Business," the What do they call "auditors" at agen­ (lNTOSAI) and with several foundations journal published the title and a brief de­ cies which have recently been the and international bodies, has advocated scription of the most recent and most subject of a headline-grabbing GAO re­ increased opportunities for govern­ relevant of the reports issued by the four port? Auditors are the people called in, ment auditors to learn the most current congressional support agencies. While after the battle has been waged, to shoot state of the artforsometime. Until now, we were always interested in what the the wounded. however, very little has been done in this Office ofTechnology Assessment, Con­ Where do the 28 members of the area. Based on the Comptroller gressional Budget Office, and Con­ Comptroller General's Consultant Panel General's invitation, we can expect five gressional Research Service had to of­ come from? Literally, they come from all or six auditors from other countries to fer each time, we have to admit that our overthe map. Although one-quarter cur­ begin a fellowship program here at GAO eyes immediately looked over the GAO rently reside in the metropolitan New in 1979. reports which were included. York City area, it is impossible to We happened to overhear a similar It did diminish our curiosity slightly to categorize them occupationally; they discussion taking place in the Comp­ learn that GAO's own staff nominated include: college presidents, business troller General's conference room the listed GAO reports to the editors of leaders, former Members of Congress, during the end of November, and de­ Staff. Still, how did anyone choose 16 and public accountants. The panel cided to find out what was going on. At reports for inclusion in 3 issues, when meets twice annually. the quarterly meeting of the National GAO produced 250 reports during the If you have questions which you Intergovernmental Audit Forum, repre­ same period of time? Since the only two would like answered inthisspace, please sentatives from Federal, State, and local criteria are work "of higher than ordinary send them to Room 7124, GAO Building. audit groups were voicing similar con­ quality and of broader than usual cerns to those of Mr. Staats. It turns out interest," we decided toexamine the lists that there are not sufficient training op­ closely to determine a trend analysis. portunities for government auditors in The reports seemed to represent most the United States. During the course of GAO divisions and covered a variety of the meeting, the Forum's attendees dis­ topics. They do not indicate a pre­ cussed: the current status of the Inter­ ference for any particular issue area or agency Auditor Training Center; their congressional committee, especially position statement on professional de­ since the nominations stem from the in­ velopment of auditors; and the master's formation office, the policy office, and degree program of the New SChool for the office of congressional relations. The Social Research. 6 reports in the final issue of the 95th During one of the breaks, we talked Congress (issue 17) were: with Graham Hodges, who is off­ "What Causes Food Prices to Rise? campus coordinator for the New What Can Be Done About It?" School's program in managementaudit­ "Federal Agencies Can, and Should, ing and who briefed the Forum Do More to Combat Fraud in Govern­ attendees. It turns out that he is ment Programs" providing training coordinators in all "Getting a Better Understanding ofthe government audit agencies with in­ Metric System-Implications If Adopted formation about the weekend master's By the United States" degree program in New York and in "Development of a National Make-or­ Washington, and that the university he Buy Strategy-Progress and Prob­ represents observed the identical lems" training lag in the profession as the "Conrail Faces Continuing Problems" Forum members. "The Nuclear Regulatory Commis­ sion Needs to Aggressively Monitor and Assisting Congresslon­ Independently Evaluate Nuclear Power­ alStaff plant Construction"

Needless to say, a wide variety of We Never Thought You publications come across our desk each Would Ask US ... quarter; many of them-in assorted sizes and styles-are aimed at How many different identifying num­ influencing Congress by appealing to bers are included on reports? In ad­ the congressional staff. Throughout the dition to the report number on the cover 95th Congress, we began to expect and (XXD-79-XX), there are B-numbers on 2 GAO Review/Winter 1979 The Detroit Region yesterday today tOJDO.... O"W"

a great plaee to live and "W"ork

GAO Review/Winter 1979 3 The Detroit Region

This is the second in a series of articles on GAO's regional offices. Getting Aequainted From the hustle-bustle of the big cities to the serenity of a lonely island park ... from the high-speed tempo of the production line to the enjoy­ able culture and cuisine of its many ethnic workers ... from Broadway bound shows to the local stage to the disco scene . . . from skating and ski­ ing to sailing and swimming ...

Welcome to the Detroit Region- an area with dynamic and diverse geogra­ phy, climate, culture, recreation and people. Ask most natives what they like about our region and they speak of the abundant variety of things to do and en­ joy that makes living here pleasure­ able-something to suit everyone's tastes.

4 GAO Review/Winter 1979 The Detroit Region

The Detroit regional office (ORO) and the Cleveland sub-office, which serve Michigan and the northern portion of Ohio, are ideally located close to the abundant beauty and resource of the Great Lakes. Michigan's importance­ especially as an industrial, mining, farming and tourist State-is in a large part due to its favorable location on the Great Lakes and its 11,000 inland lakes. While Lake Erie borders Cleveland and northern Ohio, four of the five Great Lakes-Erie, Huron, Michigan and Superior-lap at Michigan's shores. The State's 3,288-mile shoreline is long­ er than that of any State other than Alaska. Sporting opportunities abound all year long. With its many inland lakes, forests, rivers and streams, the region's recreational opportunities are unlim­ ited-offering everything from simple backwoods solitude to fully developed parks. Many of the State's parks have frontage on a lake or river for boating, swimming, picnicking and camping. The "water wonderland" also provides excellent hunting and fishing. During the winter, some of the best skiing east of Aspen lures thousands, including many out-of-staters, to the slopes every weekend of the winter months. Some resorts are close enough to provide De­ troiters an evening of schussing after work. Also, snowmobiling in Michigan's exhilerating cold has become a favorite pastime for many. ORO staff are natu­ rally drawn to the region's varied com­ binations of landscape and recreational opportunity. GAO Review/Winter 1979 5 The Detroit Region

OurRegion .. . Europe-most of them skilled crafts­ by DRO staff in contract reviews led to men. By the turn of the century, Cleve­ anti-kickback legislation. Throughout Yesterday land was the Nation's number one the 1950s and early 19'60s, the majority Detroit and Cleveland, two of the producer of durable goods. This expan­ of DRO's audit effort was devoted to major metropolitan centers in the Na­ sion has continued to modern times. pricing reviews, make-or-buy pro­ tion, grew from isolated frontier villages Separated by 168 miles and two bod­ grams, and commercial use of Govern­ in the early days of our country. ies of water, each of the two cities grew ment-owned facilities by defense con­ Detroit was settled by the French unhampered by the other, yet faced tractors. nearly three-quarters of a century be­ many of the same issues of the times. fore the American colonies broke the They "roared" along with the rest of the Faetug New Challenges bonds that linked them to England. In country in the 1920s, felt the crushing 1701, the French soldier, Antoine Cadil­ hammer of the depression in the 1930s, Detroit and Cleveland, being major lac, established Fort Ponchartrain on and arose from economic chaos to pro­ urban centers, were among the first U.S. the Detroit River as a fur trading post vide the war arms and tanks needed by cities to grapple with the challenges of and military center for the Great Lakes America in the 1940s. emerging social issues during the area. The city, which eventually became 1960s. The shift to domestic spending, the seat of government for the North­ Beginning of ORO part of President Lyndon Johnson's war west Territory, was named d'etroit-city on poverty, brought other new chal­ of "the straits"-for the 27-mile Detroit It was during the early years of WW II lenges to GAO as well. DRO was one of River which connects Lakes Erie and St. that GAO established-in Detroit-the the first regions to tackle the effective­ Clair. first field audit location. To meet the ness reviews of the numerous Federal Although its greatest growth was to country's growing need for war mate­ social programs. At one time, the na­ be reserved for the twentieth century, rials, many of Detroit's auto plants were tionwide review of poverty programs re­ Detroit grew steadily during the nine­ converted to produce tanks, bombers, quested by Senator Prouty involved teenth century, doubling in population and other military supplies, and Detroit over half of DRO's staff. almost every decade. During that cen­ became known as the "Arsenal of Guided by Charlie Moore's vision, tury, Detroit launched the first steam Democracy." Because required audits high standards, and leadership during vessel on the Great Lakes and expand­ of military disbursements could not be the transition years from contract audits ed its industry, shipbuilding, and com­ handled by GAO Washington auditors to comprehensive program reviews, merce. In 1837 Michigan entered the already backlogged with a large volume DRO expanded its horizons as well as Union as the 26th State, the largest east of unaudited documents, GAO, in 1942, its size. Some of DRO's pioneering audit of the Mississippi. sent an audit team to Detroit to experi­ efforts included comprehensive reviews At the turn of the twentieth century, ment with onsite audits of the many de­ of major housing, education, employ­ Detroit was still a quiet, tree-shaded fense contractors. The Detroit project ment, and health programs. community brewing beer and producing proved so successful that the Comp­ comfortable carriages and comforting troller General established several hun­ stoves. This serenity was broken, how­ dred similar locations under six field OurRegion ... ever, by Henry Ford's creation: "a vehi­ audit zones to handle this work. Today cle propelled by power generated from Also during WW II, GAO's Navy audit within itself," the wheezing, sputtering, branch was established in Cleveland in Detroit and Cleveland, ideally lo­ cranky Model T. With the birth and 1944. This group, which numbered cated industrial centers-one on a river tremendous growth of the automotive about 700 at its peak, was responsible and the other on a.lake-are two of the industry, the once river-hugging con­ for auditing military and civilian pay and world's busiest inland ports. Today, as fines of the town spread to absorb sur­ travel as well as contracts and vouchers. major manufacturing centers of the rounding communities. As Detroit's Although both Detroit and Cleveland world, each is highly diversified in main­ mushrooming industries assured the bE'gan their aud it work du ring the war as taining its industrial and technologi­ city's future as an industrial giant, more part of the Great Lakes Region, Comp­ cal leadership. They are rich in educa­ and more families from eastern States troller General Lindsay Warren, in 1952, tional, research, and cultural activities. and Europe were attracted, and the established Detroit and Cleveland as 2 The labor forces, wealthy in ethnicity, city's character was formed. of 22 regional audit offices located have attracted a wide choice of recrea­ Cleveland, the "city on the lake," was throughout the country. The Detroit Re­ tion and entertainment to create a uni­ first settled in 1796 by General Moses gion was headed by Mr. Kurt Krause, que atmosphere for the region. Cleaveland, and remained a frontier vil­ who continued as regional manager, Widely known as the "Motor City," lage for more than 30 years. With the until 1957 when Mr. Charles Mooretook Detroit-with a metropolitan population opening of the Erie Canal to the Ohio over the position, which he held until his of 4.5 million-is an international River in 1832, Cleveland grew into the retirement in 1975. The Cleveland Re­ symbol of America's productive might. manufacturing and business center of gion was headed by Mr. Roy Beeman The spirit of Detroit-the automobile northern Ohio. In Civil Wartimes, Cleve­ until 1960, when it merged with, and be­ and the assembly line-has spread land's industrial activities expanded to came a sub-office of, DRO. In 1962 across the country and around the meet the increased need for machinery GAO's Navy audit branch also became world, profoundly changing the living and equipment of all types. part of DRO. and working habits of millions. By the 1850s, Cleveland was the prin­ From the early years, DRO took a However, Detroit, with its vast selec­ cipal receiving port for iron ore and leadership role in field audit work, tion of skilled· tradesmen and profes­ limestone from the Upper Great Lakes which was reflected in its defense con­ sional people is more than just the and attracted many immigrants from tract audits. Pricing scandals identified world's automotive and automation 6 GAO Review/Winter 1979 The Detroit Region

A variety of vessels, from ocean liners to private crafts, dock in Oetroifs well-protected harbor. Shown here is the "Stewart J. Cort," one of severaI1,OOO-foot ore ships operating on the Great Lakes.

center. It is also a leader in producing days and nights to sample ethnic foods, pharmaceuticals, business machines, listen to native music, enjoy and join in kitchen ranges, hardware, paints, ma­ folk-dancing, and generally absorb the chine tools, and many other items. feeling of peoplehood and together­ Greater Cleveland's economy has ness generated by these occasions. long been famous for its diversified manufacturing industries. Much more than just a steel city, Cleveland-with a "Mighty Mac," the world's largest metropolitan population of 2.1 million­ suspension bridge, spans 5 miles of water is the leading manufacturer of paint and to join Michigan's upper and lower tool and die equipment and parts. It is peninsulas. Mackinack Bridge is recognized also the second largest producer of ap­ as one of the Seven Manmade Wonders parel. of the World. (Photo courtesy of Michigan Cleveland's manufacturing plants are Travel Commission.) complemented by virtually every type of business. A great concentration of cor­ porate headquarters, exceeded only by New York and Chicago, is located in Cleveland. The city is also the third larg­ est business/trade publishing center in the Nation. In addition to industry, both Detroit and Cleveland offer variety in cultural, recreational, and leisure-time activities. Detroit's fine cultural personality in­ cludes the Detroit Symphony Orches­ tra, which plays a full season of con­ certs; the Masonic Temple and the Music Hall Center, which offer a variety of stage presentations; and a profes­ sional repertory theater. Detroit also has a Cultural Center which houses a children's museum, a historical muse­ um, the International Institute, the Detroit Institute of Arts, and the Detroit Science Center. Metropolitan Detroit has more regis­ tered ethnic groups-some 120-than any other city. Nowhere is this ethnic culture more evident than at the Detroit The world famous SOO Locks in upper Michigan form a passage for deep draft ships River-Front Ethnic Festivals. Crowds of permitting waterborne commerce between Lake Superior and the other Great Lakes. 150,000 are not uncommon on summer GAO Review/Winter 1979 7 The Detroit Region

Two of the most prominent ethnic neighborhoods in Detroit are Hamt­ ramck and Greektown. Although en­ tirely surrounded by Detroit geograph­ ically, Hamtramck remains an inde­ pendent industrial city. Known as "Little Poland," the city's economic and social life retains much of the old world atmos­ phere. Greektown, in downtown Detroit, is one of the city's great tourist attractions. In this faScinating complex of specialty shops and restaurants are gifts and gourmet cheeses imported from Greece as well as exotic pastries such as baklava. Belle Isle, one of many recreational parks around town, is an island play­ ground in the Detroit River. The 1,000- acre park, originally known to the In­ dians as "White Swan," is beautified with drives and rose gardens. Just out­ side the city is the 127-acre Detroit Zoological Park. Extensive use of moats and fences allows the animals to roam freely on grassy plains, climb on craggy cliffs and, in general, enjoy all the creature comforts. Turn-of-the-century steamers will take you on a pleasant SO-minute excursion to Bob-Lo, In nearby Dearborn is the world a unique amusement park island on the Detroit River. (Photo courtesy of the city of famous Greenfield Village and Henry Detroit.) Ford Museum, the Nation's greatest in­ door-outdoor museum complex. Each yea(close to a million and a half people from all over the world visit this unparal­ Ie led repository of American history. More than just Americana preserved, it The first production model Ford, built in 1903, is shown here is a place where craftsmen work at daily as it drives past the Ford Homestead tasks, just as they did a century or more in Greenfield Village. This building, ago. Here visitors can ride century-old the birthplace of Henry Ford, steam trains and paddlewheel steam­ was moved, to the Village boats or take a carriage or Model T ride from its original site. down the quiet village lanes. (Photo courtesy of Greenfield Village All of these attractions and more help & Henry Ford Museum.) to make Detroit the busy manufactur­ ing, cultural, historic, unique city that it is. Greater Cleveland is surrounded by a unique emerald necklace, 18,000 acres of park land. Eighty-four miles of park drives provide easy access to many public use areas. Facilities include pic­ nic areas; cook houses; play fields; golf courses; foot and bridle trails; swim­ ming, boating, fishing areas; sled and world's finest art collections. East of the theatres operate in the area, and the skating areas; and a refrigerated tobog­ Art Museum is Severance Hall, the Metropolitan Opera visits Cleveland an­ gan slide. winter home of the world renowned nually. For boaters, Lake Erie is a joy. More Cleveland Orchestra-commended by Besides its contribution to the arts, than 20 yacht and boat clubs line the many critics as the finest major orches­ greater Cleveland is also well known for shores and lagoons of the lake and tra in the United States. its commitment to improving the life of many world and national championship Theatre is another major interest the community. In 1916 Cleveland be­ races are held here. here. The Cleveland Play House, the Na­ came the first community to establish Some of Cleveland's indoor attrac­ tion's second oldest resident profes­ the Community Fund or United Torch tions include a concentration of cultural sional theatre, sometimes has three dif­ campaign. The per capita gift to the facilities greater than any city of com­ ferent productions running concurrent­ city's annual United Torch drive is the parable size in the country. The Cleve­ ly in its three theatres. Over 30 amateur highest of any major city, almost four land Museum of Art boasts one of the and professional stage and dinner times that of New York and twice that of 8 GAO Review/Winter 1979 The Detroit Region

Located just outside Detroit, the Silverdome is the home of the Lions, Pistons, and Express-Detroit's division-winning soccer team. The stadium boasts the world's largest air-supported roof.

Chicago or Boston. But nowhere is Ohio and has also led staff to Canada, ment regulations affect cost, ORO de­ Cleveland's commitment to social obli­ Europe, Asia, and South America. veloped the first national data base con­ gation more evident than in its fine Under the leadership of our current taining information on local building health care and research facilities. regional manager, Walt Herrmann, and codes and land use. Our report, devel­ Cleveland Clinic, for example, is a pio­ his assistants Randy Conley, John oped by project manager Bob neer in open heart surgery and is known Dowell, and Milo Wietstock, ORO has P iscopink with the help of Don around the world for its cardiovascular expanded its role as a leader in dOing in­ Weisheit, was used by the National In­ research, diagnosis, and treatment. novative jobs. For example, we have stitute of Building Sciences in its orien­ Over half of its patients come from out­ recently (1) developed extensive data tation meetings with builders. To date, side Ohio, with 50 percent of those from bases to enable analyses and evalua­ the Institute has distributed over 200 overseas. tion of complex problems and (2) ana­ copies of our report. Both cities flourish when it comes to lized foreign policies and programs to professional sports. Major league base­ find ways to improve U.S. policies and ball, football, and basketball are offered programs. in each city as well as thoroughbred and Also, in our review of Federal re­ harness racing. In addition, Detroit has search and development (R&D) labora­ professional hockey and soccer teams. tories, we developed the first data base on 192 Federal laboratories accounting naOToday for 85 percent of the Federal R&D dollars spent. Under the supervision of Today ORO is a team of versatile Bob Gray and Gil Kruper, we are using people working in a flexible structure. this data base together with extensive Our staff of 116 professionals bring di­ literature research to develop guide­ verse backgrounds and disciplines to lines for the management of R&D labo­ ou r team and are exposed to a variety of ratories and a model which can be used jobs and responsibilities throughout for future audits of laboratory manage­ their careers. Our present work takes us ment. to various sites throughout the 72,000 In a review to determine why housing square miles of Michigan and upper costs were so high and how Govern-

GAO Review/Winter 1979 9 The Detroit Region Our People•••

10 GAO Review/Winter 1979 The Detroit Region and Our Activities

GAO Review/Winter 1979 11 The Detroit Region

Our reviews of the well-being of elderly people in Cleveland, Ohio, are GAO's first attempts to (1) determine what services make a difference in the lives of people 65 years old and older and (2) develop multi program evalua­ tion techniques. To accomplish these reviews, Bill Laurie and Tom Walsh directed and coordinated the efforts of a cadre of people-30 interviews from Case Western University and numer­ ous people from 120 service agencies in Cleveland. Using a questionnaire, the interviewers obtained information on the economic, mental, physical, and so­ cial well-being of over 1,600 older people at two points in time. Agency personnel quantified the amount of services pro­ vided to these people in 1 year. So far, two key pieces of legislation The Ambassador Bridge-the scenic route to Canada, Detroit's international neighbor to have resulted and two congressional the south-connects the city to Windsor, Ontario. reports have been issued. Equally sig­ nificant, GAO has created a unique Rogers and Don Ingersoll, this review longitudinal data base containing a liv­ will develop information for the Con­ ing profile of a generation of people that gress on the magnitude and implica­ could be useful to researchers, plan­ tions of the shift to foreign processed ners, and historians. Because of its uni­ metals, as well as how various U.S. poli­ queness, HEW has asked that it be cies and foreign government actions made available to them. Accordingly, have accelerated this trend. Also, it will we plan to place the data base in HEW's Soeial Side identify ways to assure that the effect archives for their use. U.S. policies and programs have on the ORO's social activities are as varied as We have used the international industry are thoroughly considered be­ its work. ORO golf and tennis stars comparison approach in several jobs as fore being implemented. compete against the top athletes of a means of supporting improvements in This assignment-one of the most Cincinnati regional office at the an­ U.S. programs and policies. Our ap­ ambitious in scope to date-is leading nual Findlay outing, while other ORO proach has been to (1) conduct exten­ the way for GAO in making interna­ athletes display their talents on our sive reviews within the United States, tional analyses. It involves an analysis of basketball and softball teams. The (2) take advantage of our proximity to the impacts of complex policies such as newest annual event, the "Sunfish Fes­ Canada for quickly obtaining informa­ energy, environment, land use, worker tival," is a weekend of sun and fun on the tion from a foreign country, and (3) use safety, taxes, and foreign trade on the Canadian side of Lake St. Clair. this information as a basis for develop­ mining and metal processing industry. Although few fish are caught, the days ing our approach to obtain information It has involved discussions with top cor­ are filled with softball, basketball, golf, from other countries. porate and Government officials, work tennis, swimming, and a lot of good eat­ An example of this approach is the by all three GAO foreign branches, and ing. Other annual. events include a hay­ Customs Cargo Inspection audit, led by travel by ORO staff to Canada and ride/square dance, picnic, golf Don Schmidt and Bob Tracy. As the several Latin American, Far Eastern, scrambles, Christmas party, and sports connecting pOint for 35 percent of all and European countries. outings. U.S.!Canadian traffic, Detroit is a na­ tural site for customs reviews. It ranks behind only the port of New York in numbers of foreign customs entries and revenues. With the help of other regions, ORO staff gathered informa­ tion nationwide, and on their own con­ ducted an extensive review in Canada, and with assistance from the Interna­ tional Division, a review in Australia. The report contained several recom­ mendations for improving the U.S. in­ spection process. Another example is ORO's analysis of the U.S. mining and metal processing industry and the trend of U.S. manufac­ turers to rely more on foreign processed minerals. Under the leadership of Bob 12 GAO Review/Winter 1979 The Detroit Region

DRO's "Gorillas," as they are affectionately referred to in Detroit's Federal Softball League.

OurReglon ... Tomorrow

The downtown Detroit riverfront de­ velopment, while extensive, is only the first step of a master plan for the Detroit River frontage. Further development will create a chain of linked waterfront parks to make this land more accessible to the people of the city than ever be­ fore. Construction of a new riverfront stadium is also underway. Beyond the river, Detroit is actively involved in de­ veloping a new rapid rail transportation The Renaissance Center-symbol of Detroit's rebirth-enhances the character system and expanding the trolley ser­ of the city's skyline. vice, giving downtown Detroiters the best of nineteenth and twenty-first cen­ tury transportation. And, there are plans for new shopping, cultural, recreational, and industrial centers. A renaissance is also beginning to change the scene in Cleveland. A $3- to $4-billion midtown construction pro­ gram is well underway. Completed pro­ jects include public and private office buildings, hotel and convention facili­ ties, apartment complexes, parks, theaters, and expanded university facili­ ties. Cleveland also has plans to beautify the frontage on the Cuyahoga River and Lake Erie. Historic Settler's Landing is being redeveloped. The port authority has plans to expand docking facilities to accomodate the 1000-foot Great Lakes ore ships and is studying a proposal to build an international jet port on the lake. Amidst all this change, Cleveland's Once the site of City Hall, this spot, located in the heart of Detroit, is especially popular traditional landmarks such as St. John's around noon on warm, sunny days when many office workers will appear with their brown­ Cathedral, the monuments, arcades, bag lunches. (Photo courtesy of the city of Detroit.) and museums remain undisturbed. GAO Review/Winter 1979 13 The Detroit Region

For 20 cents you can ride a genuine antique trolley along Washington Boulevard. Drivers outfitted in turn-of-the-century uniforms operate this "link with the pasf' 7 days a week.

ORO Tomorrow

ORO's future, like that of its cities, re­ work-study program. The degree ofsuc­ flects the transition from the old to the cess we have had is best illustrated by the new. ORO has always prided itself on its variety of backgrounds of our group of leadership, innovation, and willingness co-ops, which includes students major­ to work; and Walt Herrmann plans for ing in journalism, sociology, criminal this to continue. justice, and psychology. In the future, he sees us expanding on Walt believes that training must do our developmental work by creating more than just teach staff to be auditors. and analyzing unique bases, and con­ We need to create an atmosphere tinuing our leadership role in making in­ where the staff is free to express their ternational comparisons. In so doing ideas and work as a team. Our training we will be able to utilize our back­ starts with the entry-level trainee, but, ground and expertise to help us con­ most importantly, continues on with our tinue to produce new approaches and seasoned auditors. For the past few ideas and to demonstrate our ability to years our training for first-year staff has deliver top products. Also, we will con­ stressed creativity and individual think­ tinue to take the lead in work related to ing by having the trainees work in small the unique characteristics of the re­ teams to develop audit areas. A recently gion. Using these features and the ex­ initiated training effort for ORO staff at pertise of our staff, we can expand our all levels, the Social Style Awareness contribution in issues related to energy course, has helped participants under­ and the environment; crime and the jus­ stand the strengths and shortcomings tice system; taxes and customs; hous­ of their style and those of their team­ ing, employment, and education; health mates. This course has already been and the elderly; use of automated data very successful in promoting teamwork processing in the medical field; and de­ and encouraging freer discussions fense. among the staff. Walt believes there is a definite link ORO will continue these and similar between tomorrow's successes and the activities to make our tomorrow even adequacy of today's staff training and better than today. development. New ideas and innovative Ford Motor Company claims it has approaches do not come easy. We need better ideas. ORO thinks it has better a staff of varied disciplines and back­ ideas too. grounds who can work together, creativ­ A team of ORO staff members jointly authored this article. Sharon O'Neil and ely. Our recruiting and training efforts Jennifer Jimenez were primary contributors. Led by Bob Gray and inspired by have focused on fulfilling this need. We Walt Herrmann, Sharon and Jennifer were assisted by several others: Bob have enlarged our staff capabilities by Coughenour, Pat /ler, Bill Laurie, and Marge Sommers. Ed Price and Valorie recruiting various disciplines for our Robinson photographed ORO staff activities, and Jean Freeman, ORO's editor, entry-level hires and for our cooperative applied the finishing touches.

14 GAO Review/Winter 1979 The War on Seienee

Science is at War. No official declara­ ment of data concerning DES, vinyl tion has been made, but the battles are chloride, asbestos, saccharin, and most now well known. They are fought with recently benzene, to list but a few. And facts and values on political plains; both then there are those who ride against sides struggle for power and perceived technologies such as fluoridation or freedoms. Scientists, challenged by a mandatory seat belts and airbags, striking diversity of vocal interest shouting the paean of personal choice. groups on a range of issues, find them­ Success of the challenge has been selves fighting to preserve long-held considerable, at times augmented by liberties which they see as essential for the growing numbers of dissenting the momentum of their enterprise. The scientists. The most conspicuous ex­ nearly complete autonomy of science, ample here is the recent implementa­ Scott L. Montgomery from both government and public ac­ tion and review of regulation over re­ countability, has ended. Regulation and combinant DNA research. In other Mr. Montgomery has recently joined GAO's lay review over research, particularly in areas, notably fetal research, investiga­ science policy group of PAD. He has a SA in the biomedical area, have gained tion has been completely te~minated, creative writing from Knox College, an M.S. in unquestioned potency in recent years. and scientists have been indicted for geology from Cornell University, and has Interest groups are claiming that tradi­ "murder" and "grave robbing." recently worked as a research assistant to tional beliefs in the elitism of expertise Dorothy Nelkin in the Program on Science, Internationally, people are demand­ are misguided, relying on totalitarian Technology, and Society at Cornell. ing greater accountability, greater pub­ acceptances. The great variety of these lic participation, and thus control, in groups, which span the breadth be­ technical decision making. The attack tween the John Birch Society and the on science is a curious one-it unites Union of Concerned Scientists, testifies moderates with both the far right and far to the seriousness of the challenge and left in efforts to preserve, to retard ad­ indicates that opposition is surfacing vance in certain areas. It starts from the from deeper, widely felt anxieties. camp of a new, broad conservative im­ pulse, one that wishes to keep things, at Controversy least to some degree, as they are, or to return to times of greater purity. The issues are many. Altercation over nuclear power, epitomized by the con­ The Reasons tinuing opposition at Seabrook, New Hampshire, comes immediately to What are the reasons for all this? mind. But it is the biomedical sciences What is the source of the impulse to op­ which have sustained the broadest pose? Dorothy Nelkin, from her many spectrum of attack. The biomedical studies of the subjectl, has defined five sciences are particularly vulnerable. major prevailing concerns: They inspect the processes, and thus -The fear of health and environ~ the very nature, of man himself, affect­ mental risks. ing all beliefs about his special ness, -The fear of social misuse of re­ sacrosanctness. "Biology is a social search findings. weapon," claim some critics. They per­ -The feeling that scientific re­ ceive recent studies of whether cause search is morally pernicious, i.e. a and effect relate a genetic aberration threat to "cherished beliefs." (XYY chromosomes) to overly aggres­ -The concern with the equity in­ sive (and presumably criminal) behav­ volved with the social and eco­ ior or whether drugs should continue to nomic costs of research, i.e. "who be administered to "subdue" penal in­ bears the brunt?" mates or hyperactive children as a dan­ -The perception that science and gerous misuse of research. And there technology trespass on personal are risks: recombinant DNA research freedoms and choice. shares with nuclear facilities a very Nelkin further points out that the invisi­ small possibility of accident, the con­ bility of technological effects and haz­ sequences of which would be cata­ ards further exacerbates these fears. strophic. On another front, the medical Perhaps the most crucial result of her profession, through its inflexible, reac­ work has been the consistent indica­ tionary venom against Laetrile, has put tion that increased information to the much of its prestige in limbo. Industrial 'See for example, Nelkin, Dorothy. "Threats and, scientists, meanwhile, are now Promises: Negotiating the Controls over Re­ notorious for their self-interested treat- search," Daedalus, Spring 1978. GAO Review/Winter 1979 1.5 The War on Science

public, developing a better technical unknown. The notion of limits induces supported by the Federal Government base of understanding, serves to gal­ immediate polarization: the opposition discusses recent barriers, and points vanize even greater opposition. It thus seemingly has everything to gain by out the growing battle between appears certain that conflict advances their attacks, the experts everything to " . . . the scientist, who believes any not from a moat of ignorance, but from a lose. For one side, it means greater free­ scientific inquiry is justified, and skepti­ citadel of strongly held values. dom and personal control over life-for cal citizens or Congressmen, who won­ For many people, the social upheaval the other, the experts, it means a der how esoteric inquiries can warrant and storm during the past decade has sudden loss of the same. public fund support." Many researchers precipitated a growing sense about the Polarization is thus inevitable. At perceive Senator Proxmire's "Golden lack of, and emphatic need for, individ­ times, for those making the challenge, Fleece" awards, given to projects he ual efficacy in all areas of personal life: there appears to be a far stronger mo­ deems trivial and wasteful, as well as the economic, political, and social. The tive for conflict itself, for the righteous growing congressional support for inaccessibility of technical information role of opposer. Experts are fogged by "Sunset" legislation, as both directly has bred mistrust. In this vein, the in­ the continual avoidance of resolution. bleeding the present and future creased scale and level of scientific ac­ The overall effects on many have been strength of basic science. And, in fact, tivity have made its power to change exasperating. They are accused of the past decade has witnessed a strik­ more conspicuous, and its risks more hypocrisy in their reactions, of not ex­ ing decline in general Federal support fearful. Furthermore, present opposi­ emplifying the critical, inductive me­ for basic research (in constant dollars).3 tion has built on the expanded notion of thod they so frequently hold high. This decline in Federal support has group protest which was rejuvenated All this is not to say, however, that weakened further many experts' faith in during the late 1960s and early 1970s; there is a full-scale societal movement the protected image which science has people now know that they can effect against science. In fact, recent polls2 so long enjoyed. pressure, and thus change, in this way. have shown that 71 percent of those Presently, the GAO science policy A more specific result of those recent surveyed believe that science has group of the Program Analysis Division days of demonstration has been the changed life for the better, and 52 perj is evaluating the Science Indicators basic realization of limits-to re­ cent indicated that it has done more series, a National Science Board study sources, food, what the environment good than harm. In reality, it is a small on the status and general health of can stand, and what man will tolerate. minority which is waging the war, but it science and technology in the United People, wanting power over their own is an intensely vocal and active spec­ States. A part of the group's approach lives, see industrial, governmental, and trum, one that exerts considerable pres­ will likely involve an examination of pos­ now scientific activities as requiring sure. sible connections between the overall boundaries. decline in Federal support and the The GovernmentArena public controversies.

The Reaetlon of Exper­ Within the government, the debate is ConfHet Resolving tise also fierce. The Atomic Energy Com­ Meehanlsms mission (now NRC), FDA, and National On the other side of the battleline, de­ Institutes of Health have been focal In a pluralist society, conflict and its fensiveness prevails. A great many points for heated discussion. Much ar­ resolution are necessary: where there is scientists feel that their research must gument on regulations over recombin­ fire, there is soon water. The controver­ be densely shielded againsta tideof"ig­ ant DNA research-in the form 'of H.R. sies mentioned have hatched a host of norant, ill-informed, or mal-intentioned" 11192, Recombinant DNA Act-has new dispute-settling proposals. In the assailants. They view their critics as sounded the floors of both the House interest of space, only a few generaliza­ pathogenic, their duty as lymphocytic. and Senate. I n this rapidly evolving field, tions and examples will be mentioned. The analogy is apt; for through their some experts see the proposed regula­ Proposed mechanisms have ranged methods of combat, which are often re­ tions as arbitrary, fear-induced brakes from a "Science Court" model to a me­ actionary and emotional, they further to research which will become quickly diation procedure based on the labor­ enfever their own enterprise. obsolete with the pace of future ad­ negotiation model.4 Despite their mark­ Moreover, scientists perceive the un­ vances. For them, the very wording of ed variety, almost all stand on the bed­ bounded academic and research free­ the act-" ... any activity involving rock belief that technical, ethical, and doms as necessary for the open-ended organisms or viruses containing recom~ political approaches can be separated. system of scientific advance, as part and blnant DNA (whether a research or The Science Court idea best exempli­ parcel of the philosophical basis for commercial activity) be subject to con­ fies this. In this forum, scientists would their work. And they believe, have been trol" (emphasis added)-carries choke­ argue pOints of fact before "impartial reinforced to believe, in the optimism of collar connotations. scientific judges" who would deter­ this advance, that is, that beneficial ap­ Since World War II, the necessitated mine either the "truth," or the closest plications are inevitable, misuses neg­ umbilical ties of science to the Federal proximity to it. Their decision would ligible. purse have left researchers especially provide the soil for well-directed policy­ There is disillusionment in the air. vulnerable to changes in congressional making. Many researchers, again particularly in priorities. The recent 10th annual Re­ the biomedical area, no longer feel that port of the National Science Board their work is seen by the public as yield­ about basic research conducted and 3lbid. ing the utopia of fact, as moving from 4Dorothy Nelkin, ed. Introduction to The Politics the crucial blend of imagination and in­ 2Science Indicators 1976. Repor1 of the National of T echnjcal Decisions: A Case Studies Ap­ duction to an impartial spearing of the Science Board 1977, pages 167-183. proach. In preparation :16 GAO Review/Winter 1979 The War on Science

There are many assumptions involved with such a model, most no­ tably the ancient and venerable one which respects science as extrasocietal and its experts as somehow politically neutered. However, under the growing recognition of the societal context of science, such an assumption appears dusty, anachronistic. Historians and sociologists of science such as Thomas Kuhn (The Structure of Scientific Revo­ lutions) now emphasize that the essen­ tial, nuclear blocks of scientific knowl­ edge depend to some extent upon the strong interactions of social forces; that fact and theory are not completely separable and that theory is influenced by "climatic" movements. At the Crossroads Scientists, it would then seem, are struggling through a new apprentice­ ship. The trade of political conflict, whose tools they have previously only handled, is now being forced fully upon them by a situation of intense contro­ versy. Not all of the technical disci­ plines yet feel the full impact of what is happening. It seems inevitable, how­ ever, that they all will directly feel the growing heat of conflict. The essential clashes are between values; there is vig­ orous ideological motivation on both sides of the line. In battles such as those at Seabrook or Cambridge, a definite symbolic mist hangs in the air. For the oppOSition, the challenge itself is an ex­ preSSion of personal efficacy; for the scientists, it is a direct assault on their work. There are many fronts to the conflict. Because the social consequences of certain research areas are so immed­ iate, the once-sharp boundary between pure and applied science has become fuzzy. But whatever the ultimate conse­ quences, science no longer seems the ivory tower enterprise from which truth and progress automatically flow. It has been forced into a new social context of activity, one that requires adaptation both of perspective and posture.

GAO Review/Winter 1979 1.7 Helping Us Find Our Way

A poster in the GAO Office of Career problem. Wilcox urges such employees Development and Counseling depicts a to take advantage of the strictly confi­ street lamp brightly illuminating the dential counseling service on their own foggy night. The caption on the scene initiative before their situation becomes reads: less manageable and more detrimental If sometimes we don't get lost; to their lives. He stresses the fact that no there's a chance we may never employee who seeks counseling assis­ find our way. tance will have job security or promo­ The street lamp, of course, symbol­ tional opportunities jeopardized. izes the objective of the counseling of­ This article is based on an interview between Jim Wilcox, a warm and soft-spoken man, fice, which is to guide us, to help those Wilcox, a counseling psychologist in the GAO genuinely cares for and is concerned Office of Career Development and Counseling, of us who are having social, psychologi­ cal, or alcohol or drug abuse problems about those who come to him with and Jan Kosko, an editor in the Special problems. That genuine feeling of care Publications section of the Office of Publishing find our way through individualized and and concern came through again and . Services. confidential counseling assistance. GAO recognizes that today's fast­ again during the interview as Wilcox Jan Kosko moving and complex society causes stressed his willingness to help any practically all of us to experience one or GAO employee understand or cope more of those problems with varying with a problem. "Everybody has a righf degree and frequency. Therefore, the to utilize us. It can bethrough an anony­ Office of Career Development and mous phone call from a region, an audit Counseling, located in room 6844, wal> site, your office, or your home. Or, you created to provide: can call and we can set up an appoint­ • Confidential counseling and refer­ ment during lunch, or before or after ral services to all GAO employees. your regular work hours. Whenever • Assistance to managers t6- help you're free." them recognize problem situations and Wilcox says the counselors provide their responsi.bilities in dealing with various forms of assistance to GAO em­ them. ployees, including, "everything from • Consultation services to managers helping people decide what sort of ca­ regarding the supervision of employees reer they want in GAO . . . to helping with problems affecting job perform­ them resolve family problems, such as ance. marital problems or problems with their • Continuing educational programs children ... to helping people deter­ for all employees directed toward mine whether or not to retire ... to developing an awareness of various so­ helping them deal with conflict resolu­ cial, psychological, and alcohol and tion-type problems in the office ... to drug abuse problems. helping people deal with alcohol and Because GAO recognizes that social, drug abuse problems, which are, of psychological, and alcOhol and drug course, of key concern to us ... to abuse problems may affect an em­ helping them get the assistance they ployee's work performance and be­ need ... " lieves that such problems can frequent­ During counseling, the employee ly be resolved with appropriate assis­ receives support and guidance to help tance, counseling psychologists like him better understand himself and his Jim Wilcox are on hand to counsel and environment and thereby work out advise GAO employees. Wilcox en­ ways to adjust to and cope with new courages employees who know or sus­ situations or problems. pect they have a problem to take advan­ The counselor's role, however, is de­ tage of the services provided by the pendent upon the type and severity of counseling office. Wilcox says that em­ the symptoms experienced by the em­ ployees are often aware that they have ployee. If the counselor determines that problems they would like to resolve, but the employee needs medical treatment are frequently unable to pinpoint the or long-term counseling, partial or com­ underlying causes and are reluctant or plete referral to an outside facility is rec­ uncertain about where to seek help. om mended. If such is the case, the They may be hesitant to approach their counselor makes every effort to help the family or friends because of the stigma employee find the most suitable ser­ they feel is attached to their particular vices. 18 GAO Review/Winter 1979 Helping Us Find Our Way

Wilcox is not aloof toward those he Wilcox says that the most frustrating counsels, but tends to become "intense­ part of his job is working with a super­ ly interested in a person even though I visor who will not confront a seriously see them maybe only 1 hour out of their troubled employee. "What makes it so life." frustrating is that you often know that Although the relationship between the person with the problem is dying, the counselor and employee is fre­ sometimes literally dying, for help and quently brief, Wilcox often wishes that they are waiting for somebody to tell those he counsels would call him after them what to do. They're afraid of the counseling session to let him know getting help, they don't know where to how they are doing. In fact, he frequent­ turn. They're afraid about themselves, Iy follows up a session with a call to the 'What could be the problem?' And, they employee. He explains, "Sometimes deny and repress a lot of this so they people come in and they get some in­ don't recognize the problem anymore. formation and then they go back and So, if somebody else doesn't intervene, get cold feet. So, it's often helpful to talk there is not much chance of them again and encourage them to go get getting help. That's why we say that some help." practically every time, being confrontive Because it is difficult for employees in is the best thing a supervisor can do to the regional offices or distant audit sites help." to personally visit the counseling office, Wilcox adds, "If a supervisor has a telephoning (275-5848) the counseling person working for them who seems to staff for advice is encouraged. The have a problem that they could use counselor can also arrange any neces­ counseling help with, for example, if the sary followup counseling in the em­ person's job performance is really being ployee's local area. affected adversely or the ability of the Wilcox stressed the vital role a super­ person is going down, they should visor has in assisting employees pre­ always call us first and discuss the situa­ vent or deal with social, psychological, tion. We can give our opinion about and alcohol or drug abuse problems. whether the person should be referred There are several reasons for this: to us and how to do it. "However, often the supervisor is just • The supervisor is generally the first person to notice an employee's downright embarrassed to confront deteriorating work patterns or behavior. somebody, which is understandable. We don't like to be negative. It's often • Th.e supervisor may be the person to whom a troubled employee firstturns embarrassing and we don't know how to for help. people are going to react." • The supervisor is in a position to He also says that feeling sorry for the encourage an employee with problems employee, which he terms "destructive to seek counseling assistance. compassion," may also deter the super­ visor from confronting the employee If a supervisor does notice that an em­ and directing him to the assistance he ployee's behavior is adversely affecting' needs. Wilcox says that reassuring or his job performance, he has a respon­ sympathetic words, such as, "Every­ sibility to confront the employee, dis­ thing will be all right," will not make the cuss the problem with him, focusing on employee's problem disappear, but poor work performance, and, in the rather, may reinforce the employee's event the poor performance is sus­ denial and repression of the problem, pected of being the result of a personal which, in turn, may prevent him from problem, direct him to the counseling seeking counseling assistance. service. "The most rewarding part of the job? However, supervisors should bear in That's easy," says Wilcox with a broad mind that counseling assistance is not smile, "it's when you see the person disciplinary action, but rather is a growing and using the difficult situa­ means of providing employees with the tion to go up another notch in their life, help they may need to deal with a par­ when you see their capabilities and self­ ticular problem that may be contribut­ concept improve after they've worked ing to difficulties on the job. through a difficult problem." Supervisors should also bear in mind Why did Jim Wilcox choose the field that, in many cases, troubled em­ of psychological counseling as his pro­ ployees may not be aware of, or able to fession? The answer, accompanied by deal with, the problems themselves. In another smile, is not totally unexpected: such cases, the supervisor should con­ "To help people, to help them better sult with the counseling staff for advice understand themselves and how to deal on working with the employee. with themselves." GAO Review/Winter 1979 19 Annual GAO Honor Awards CereDlony

On October 25,1978, the U.S. General Distinguished Service Award: In his opening remarks, Comptroller Accounting Office held its annual GAO F. Henry Barclay, Jr. General Staats paid tribute to the many Honor Awards Ceremony. The Baltas E. Birkle outstanding GAO employees as well as ceremony, which is the culmination of Francis X. Fee the individuals whose performance led an intensive incentive awards program, David A. Hanna to awards: recognizes GAO staff members who Richard W. Kelley "Leading such a distinguished group have excelled in some way while car­ Harry C. Kensky of people atthistime isatthesametimea rying out the important and complex John E. Milgate rewarding and saddening experience. mission of GAO. Michael Zimmerman Rewarding because of the significant Comptroller General's Award: work that GAO has and is continuing to The following GAO personnel Gregory J. Ahart accomplish. Saddening because of the received awards: Task Force on Improving GAO image Federal employees seem to have Effectiveness acquired particularly in thelastyearorso Equal Employment Opportunity GAO Award for Public Service: as neither very effective nor very in- Awards: Charles F. Luce Julius S. Brown David E. Ashley Best Articles Published in GAO Review: Timothy D. Desmond Martin M. Ferber Meritorious Service Award: Melvin F. Berngartt Gary L. Billen Karen E. Bracey Hugh E. Brady David E. Bryant, Jr. Leslie J. Caldwell Joseph F. Delfico George L. Egan, Jr. Jack S. Everton Frederick Gallegos William A. Gerkens Edward F. Hefferon Clarence L. Jenney RoyJ. Kirk Gregory J. Ahart, director of the Human Resources Division, received the Terry A. Kremer Comptroller General's Award. James R. Linz Ramon A. Looney Edna Lynn Vinita C. Mathur James K. Meissner Thomas E. Melloy Marie J. Moore Thama L. Moreland Christine M. Murphy Ola A. Murphy Benjamin F. Nelson Mary P. Noble John M. Ols, Jr. George D. Peck LaDonna A. Rodock Robert E. Shelton James L. Silvati Danny L. Sprowls Alice E. Tilghman James E. Wells Randall B. Williamson The Comptroller General presented one of his two Comptroller General's KaneA. Wong Awards to the Task Force on Improving GAO Effectiveness, Stewart D. Glenda C. Wright McElyea, chairman. The 12 task force members are shown. 20 GAO Review/Winter 1979 Annual GAO Honor Awards Ceremony

The GAO Award for Public Service was presented to Mr. Charles F. Luce, chairman of the board of the Consolidated Edison Co. of New York and a member of the Comptroller General's Consultant Panel.

dustrious-and perhaps not even Librarian of Congress always honest. This image reflects un­ Daniel J. Boorstin was the favorably on all of us who view our­ evening's principal speaker; selves as dedicated and industrious public servants .... he is shown addressing When I came to Washington as a Fed­ the audience. eral employee in the late 1930s, the term publ ic servant was an honorable one and public employees could be proud of their calling. It is much tougher to be proud in today's environment when we are often scorned by those we are trying to serve. What hurts most is that the charges do not fit the vast majority of Government employees. Those of us who work in Government and have been in Govern­ ment service for a long time know that the inefficient, the lazy and the dishonest are a tiny fraction of the whole. The vast majority of Government workers are as hard working, competent and dedicated to Government business as their coun­ terparts in industry. Certainly, the people we honortonight have shown their enterprise and intel­ ligence in the excellent work that led to their selection for the high honor of a Comptroller General Staats delivers his remarks to the audience at the GAO-wide award. Let us all use this oc­ annual GAO Honor Awards Ceremony. casion as a starting point to do what we can to show our fellow Americans that remarked on the transition of the auditor Still, the numbers of accountants and Government employees deserve their in American society: auditors remained small until the enact­ respect and are as highly motivated as "In the past hundred years, a new pro­ ment of a national income tax .... At any other segment of the population fession-that of the Certified Public Ac­ first, certified public accountants were and, yes, perhaps even a little more de­ countant-attested the public need and drawn intimately into corporate affairs d icated to the general good than most. A desire to obey income-tax laws. Even only to prepare tax returns. When these change in our public image is crucial if before that there had been 'public book­ accountants became at home in the we are to attract and retain people of the keepers' in the United States; but after inner sanctums of large corporations, caliber we have here tonight." the Civil War, businessmen needed they not only shaped corporate In his address, Dr. Boorstin reminded something more than a bookkeeper. accounting procedures but guided the audience that the GAO and the Lib­ Perhaps the oldest American account­ crucial decisions of policy." rary of Congress both served the needs ing firm-Barrow, Wade, Guthrie, and As it was with the private sector, so of Congress. He noted that GAO acted Co.-was founded in New York City in GAO became entrenched in the de­ as a wholesaler, while the Library of 1883. New York laws in 1896 provided cisionmaking process of the U.S. Con­ Congress was a retailer of information. public examinations for candidates for gress. In discussing GAO, Dr. Boorstin the title of Certified Public Accountant. GAO Review/Winter 1979 21 The Privaey Aet and The FreedoDl olInlor­ Dlation Aet: Where Does GAO Fit?

GAO, as an organization responsible achieved in accomplishing our report­ to the Congress, is not subject to the ing objectives as well as the objectives terms of either the Privacy Act or the of both the Privacy Act and the Freedom Freedom of I nformation Act. However, it of Information Act. To preclude the conducts its activities, to the maximum formulation of a GAO position that may Theodore Roman, Jr. extent possible, in a manner that is con­ be inconsistent with these acts or prior sistent with the spirit of both acts. These GAO report positions, team leaders and Mr. Roman, a senior policy advisor, Office of two acts have been described as differ­ audit managers should, at the earliest Policy, is responsible for reviewing reports and ent sides of the same coin; each deals possible time, coordinate assignments other documents to be signed by the with both releasing and withholding having such implications with the Comptroller General and advising on their acceptability from the standpoint of possible personally indentifiable records.' Logistics and Communications Divi­ accounting, auditing, and reporting policies. GAO is not limited by any statute in its sion, Fec::teral Information Issue Area acquisition or use of personally identifi­ Coordinator. (See memorandum to able records. Thus, it can acquire any Heads of Divisions and Offices dated personal information maintained by 11/22/77.) Federal agencies or others subject to GAO audit authority, and disclose that Right of Access information to anyone. While neither act restricts GAO activities, both clearly re­ GAO's right to obtain agency records flect the Congress' intent that all gov­ is clear. Section 54 of title 31 of the ernmental activities be conducted in a United States Code (section 313 of the manner that protects the privacy inter­ Budget and Accounting Act of 1921) ests of those from whom information is states in part: collected. This is especially true, of "All departments and establishments course, when individuals are promised shall furnish to the Comptroller Gen­ that the information they supply will be eral such information regarding the kept confidential (see CAM I, chapter 8, powers, duties, activities, organizations, appendix II). Further, GAO takes care financial transactions, and methods of not to disclose records or recommend business of their respective offices as he the transfer between agencies of infor­ may from time to time require of them: mation that should otherwise be pro­ and the Comptroller General, or any of tected (see Report Manual, chapter 14). his assistants or employees, when duly GAO has a long and enviable record authorized by him, shall, for the pur­ for dealing responsibly with the infor­ pose of securing such information, have mation it obtains. It stresses the impor­ access to and the right to examine any tance of safeguarding work papers (see books, documents, papers, or records CAM I, chapter 19) and of insuring that of any such department or establish­ sensitive information of all kinds, for ex­ ment." ample, proprietary information con­ "Department" and "establishment" cerning illegal acts such as fraud, is ap­ are defined to include virtually every propriately handled in its reports. agency of the FederalGovernment other Specific rules of conduct probably than the legislative branch and the Su­ cannot be developed to cover all situa­ preme Court. tions or problems that may arise in deal­ The broad authority conferred by 31 ing with the release and withholding of U.S.C. 54 is restated in numerous spe­ personally identifiable data. We should, cific acts (see CAM I, chapter 14), but, however, be alert to the provisions of the section 54 remains the clearest general acts, and insure that a proper balance is statement of GAO's basic right of access to records of Government agen­ 'The Privacy Act defines a record as an item, cies. collection, or grouping of information about an individual that contains his name, identifying Freedom ofluforma­ number, symbol, or other identifying particular tionAct assigned to the individual including fingerprints, voiceprints and photographs. The Freedom of Information Act GAO Review/Winter 1979 The Privacy Act and ilie Freedom of Information Act

(FOIA) became law on July 4,1967. The 1. GAO's policy favors the fullest • all factors considered, disclosure act provides for making information possible disclosure. would be in the public interest. held by Federal agencies available to 2. Requests for records should be the public. In 1974, Congress amended in writing. Oral requests may be con­ PrlvaeyAet the act to substantially strengthen its sidered, but it is best to ask for written The Privacy Act of 1974, Public Law provisions. These recent amendments confirmation. The requester should be 93-579, became law on December 31, make it clear that the primary purpose is told that although GAOis not subject to 1974. The major provisions of the stat­ to make information maintained by the the act, we have similar regulations (4 ute became effective on September 27, executive branch of the Federal Gov­ C.F.R. Part 81), and we will consider the 1975, and are codified at 5 U.S.C. 552a. ernment more available to the public. request under those regulations. The purpose of the act is to safeguard Because GAO is a part of the legisla­ 3. The following categories of re­ individuals against invasions of person­ tive branch, the act does not apply to us, cords are exempt from disclosure (but al privacy by requiring that Federal but that does not mean the act is of no the exemptions may be waived in cer­ agencies limit the storage of records to interest or concern to us. Quite the re­ tain circumstances): those that are relevant and necessary. to verse is true. First, GAO records, such • Congressional correspondence, the functioning of the Government; as confidential draft reports, main­ including congressional contact eliminate secret systems; protect Gov­ tained by executive branch agencies memos. ernment records about individuals from may be subject to FOIA requests made • Documents bearing security clas­ misuse, including improper disclo­ to that agency (see CAM I, chapter 15, sifications. sures; and permit individuals access to and Report Manual, chapter 6). Second, • Records specifically exempt from their records. GAO frequently receives freedom of disclosure (for example, commer­ The limitations on the use of records information type requests. In this event, cial proprietary data covered by imposed by 5 U.S.C. 552a apply to Fed­ team leaders and audit managers are U.S.C.1905). eral agencies. It is GAO's position that most likely to become involved. • Privileged or confidential records the term "agency," as used in the act, Although GAO is not subjectto FOIA, containing trade secrets and com­ does not include GAO. Therefore, the the Comptroller General has declared mercial or financial information ob­ act does not restrict its use of records. that it is GAO's policy "to make the full­ tained from any person. While GAO. may follow some of the est possible disclosure of information • Personnel and medical (and simi­ provisions of the law on a voluntary consistent with our responsibilities as lar) files, where disclosure would re­ basis, GAO is not required to comply an agency of the Congress." This policy sult in a clearly unwarranted inva­ with the act's provisions regarding its was first set out in a memorandum to sion of personal privacy. systems of records. Of course, records heads of divisions and offices on July 3, • Investigatory files compiled for law used in connection with our assign­ 1967. In January 1968, regulations re­ enforcement purposes. ments should always be maintained garding "Public Availability of GAO Re­ • Records relating to the regulation with a high degree of concern for se­ cords" were published in the Federal and supervision of financial institu­ curity and privacy, even though those Register. These regulations are still in tions. records are not directly affected by the effect, and they appear at title 4, Code of • Records containing geological and act. Federal Regulations, Part 81. They are geophysical information and data GAO has the same right of access to implemented by GAO Operations Man­ concerning wells. agency records that it had before the ual Order No. 1330.1, January 5,1974. • Papers that are part of the delibera­ act. Agencies that are subject to the act Since the passage of the 1974 amend­ tive process of the GAO such as' can only disclose records in accord­ ments to the FOIA, the public has be­ draft reports, reviewers' comments, ance with the act's provisions. However, come more aware of the right to de­ and workpapers containing opin­ GAO's basic right of access is secure mand access to Government records. ions, recommendations, advice, or because the law specifically recognizes This, in turn, has resulted in an in­ evaluative remarks of GAO em­ the importance of the use of agency crease in freedom of information type ployees. records in the audit process. 5 U.S.C. requests to GAO, generally for access 4. Generally the division or office 552a(b)(10) exempts from limitations to (1) audit workpapers and draft re­ holding the requested records initially the disclosure of records "to the Comp­ ports, (2) congressional correspond­ determines whether they should be dis­ troller General, or any of his authorized ence, and (3) records supporting closed. Some key factors to keep in representatives, in the course of the per­ Comptroller General decisions. Such mind when making that decision are formance of the duties of the General requests have been processed under whether Accounting Office ... " our existing regulations. Although the act does not apply to Freedom of information type re­ • the records relate to work done at a GAO, this does not mean that the act quests, either written or oral, are gen­ specific congressional request; will not affect its work. While agenCies erally resolved under the proviSions of • disclosure would impede GAO ac­ must allow GAO access to records, the GAO Operations Manual Order No. tivities or the conduct of a particular act requires them to make an account­ 1330.1. If further guidance is required assignment; ing of the date, nature, and purpose of (especially if the request cannot be hon­ • disclosure would result in an inva­ each disclosure and of the name and ored or is complex), the Office of Gen­ sion of personal privacy, or violate a . address of the person to whom the dis­ eral Counsel and/or the Office of Policy pledge of confidentiality; closure is made. In making requests for should be consulted for advice and • the records contain purely factual records, team leaders and audit man­ assistance. information, or involve internal agers should keep in mind the account­ In applying the existing regulations, opinions and recommendations; ing burden that their requests will im­ the following should be considered: and pose on agencies. GAO Review/Winter 1979 23 The Privacy Act and the Freedom of Information Act

On assignments where large num­ or privacy implications our recommen­ bers of records are needed, the ac­ dations may have on individual privacy. counting requirement could cause very This type of discussion is extremely im­ lengthy delays unless some means of portant and necessary when we make easing the burden is found. Following recommendations involving the ex­ are several methods that can be used to change or transfer of personally identi­ avoid such delays.2 fiable information. For example, in an 1. Agencies may find it easier to audit report dealing with the Supple­ account for disclosures of a complete mental Security Income program category of records rather than a selec­ we recommended the transfer of tion of some records from that cate­ computerized information from the gory. For example, a request for one Veterans Administration to the thousand randomly selected records Social Security Administration. Viewed from a system of ten thousand records individually, the recommended transfer may require the agency to note ac­ may pose only a limited and possibly counting data on each of the thousand acceptable threat to individual privacy. records disclosed. However, a request However, the Privacy Protection Study for all ten thousand records might be Commission said in the preface to its re­ handled by making one notation in a port on Technology and Privacy, central accounting file. The auditor ..... undesirable consequences are could select the sample from the ten likely to occur if the proliferation of thousand available records. The extent computer-based record keeping is left to which this class accounting technique unattended. This is so, not because of will be useful may vary from agency to any sinister act or intent, but rather be­ agency and from system to system, de­ cause of the incremental effects of inde­ pending upon how the accounting re­ pendent decisions by well-intentioned quirements are handled. If this tech­ administrators." The right to privacy is nique appears potentially useful, it not absolute, and at times should yield should be discussed with the records to other important societal needs. The management personnel of the agency recommended transfer referred to maintaining the records. above was made only after we carefully 2. In some cases, it may be useful considered the privacy aspects of our to let the agency perform operations on position on the transfer of information records according to our instructions before the report was issued. without disclosing all of the records to In the final analysis, while GAO is not us. For example, if a sample of two hun­ directly subject to the provisions of dred records must be selected from a either of the acts, they can and will af­ system of twenty thousand records, we fect the way we do business in certain might supply the agency with a com­ circumstances. The auditor should not puter program for selecting the sample, look upon these acts as a threat, but let the agency select the sample using should be mindful of their provisions. its own computer, and then have the Auditors will thus not only be able to agency disclose only the selected strike a proper balance between the ob­ records to us. Again, the usefulness of jectives of their assignments and the this technique depends upon the extent acts, but will maintain GAO's record of of cooperation from the agency. dealing responsibly with the informa­ 3. Another way to avoid a delay is tion it obtains in carrying out its respon­ to devise a means for satisfying GAO's sibilities. needs without disclosing records. The act permits agencies to disclose infor­ mation that is not individually identifi­ able to those who use the information for statistical or reporting purposes. Thus~ if GAO can complete its work without identifying individual records, then, with the cooperation of the agency, GAO might obtain either raw or compiled statistical data for use in the audit. The issue of individual privacy should not be taken lightly in our work. In our reports we should recognize the impact

2The OGe Adviser, Volume 1, Number 1 October 1976. 24 GAO Review/Winter 1979 Fraud Deteetion - What Is the Auditor's Role?

Preventing and detecting fraud has cash on hand or on deposit, accounts always been a troublesome matter for receivable, inventory, and other assets the auditor. Recent disclosures of could be accounted for. His role was seemingly rampant fraud in both Fed­ strictly one of policing bookkeepers and eral programs and the private sector others responsible for financial transac­ have focused attention on the problem. tions. As one writer aptly described him: The General Services Administration "His image frequently was that of a case, in which multimillion dollar dull, humorless chap wearing a losses allegedly occurred as a result of green eyeshade, meticulously add­ James T. Campbell fraudulent contracts, dramatizes the ing up endless columns of figures, substantial loss and embarrassment counting extremely petty cash-a Mr. Campbell is currently a supervisory auditor in which can ~cur when massive fraud is man whose day was brightened the Atlanta regional office and has served in the perpetrated for lilonths, or even years, only by the discovery of fraud or GAO headquarters and European Branch without detection. Another case in breach of procedure. "2 offices. He has a B.S. degree in accounting, an point, which shook the public account­ M.S. degree in plJblic administration, and is a ing profession a few years ago, is the The auditor's role changed drastically CPA (Tennessee; Equity Funding scandal in which thou­ through the years. The rapid growth of sands of phony insurance policies ficti­ business and government and, particu­ tously boosted company assets more larly, the advent of computer technol­ than $2 billion. ogy made it impossible forthe auditor to Invariably, the question asked when continue merely ticking figures. His such cases come to light is "where were functions expanded to include evalua­ the auditors?" The perception and con­ tions of entire management control sys­ cerns underlying that question are per­ tems and appraisals of the economy, ef­ tinent to the role of all auditors, whether ficiency, and effectiveness of programs internal or external, public or private. and operations. Auditing evolved from a Specifically: what is the auditor's role negative, protective, and clerical routine with respect to the prevention and de­ to a positive, constructive, and creative tection of fraud? Is that role consistent service to management and the public. with the expectations of those who use As the auditor's duties changed, the his services? Is the role changing, and emphasis on fraud detection waned. what can reasonably be expected of the Detecting fraud soon became a second­ auditor? ary, rather than a primary, objective of auditing; and the relative importance of fraud detection continued to be deem­ From "Chief Object" to phasized. By 1957, a widely used audit­ "ResponslblUty not ing text referred to fraud detection as a Assumed": Evolution 01 "responsibility not assumed" by the auditor.3 Fraud Detection Auditors still acknowledged some re­ If the original purposes for establish­ sponsibility to consider the existence of ing the auditing function are examined fraud, but the nature and extent of that it becomes apparent why, even today, responsibility became obscure. Their the auditor is seen by many as the "in­ efforts to detect fraud were limited and surer" against fraud, or the "guardian of passive. Auditing students were taught corporate morality." In its early years, that an audit is not deSigned to detect auditing's primary purpose was to fraud and should not be relied upon for detect fraud and irregularities in finan­ that purpose, although disclosure of cial transactions. Almost to the end of fraud might result. the 19th century, auditing literature This concept of the auditor's limited stated that the three objectives of an role in uncovering fraud seemed to hold audit were to detect (1) fraud, (2) techni­ until the 1970s, when media criticism, cal errors, and (3) errors of principles.1 court decisions, and user surveys In those days, the auditor spent almost all his time looking for things that were 2Elizabeth Trotman, The Role of the Internal wrong. His main concern was whether Auditor (American Management Association's Extension Institute, 1977), p. 3. 'Lawrence R. Dicksee, Auditing, A Practical 3Robert H. Montgomery, Auditing, Theory and Manual for Auditors, (London: Gee & Co., 1898), Practice, (New York: The Ronald Press, 8th p.8. edition, 1957), p. 26. GAO Review/Winter 1979 25 Fraud Detection: What Is The Auditor's Role?

began to raise serious questions about "The first object of an audit is to say has been held that management has the an auditor's responsibility for fraud that the accounts can be rei ied on responsibility to establish procedures detection. that they are 'all right'; it is absurd t~ and controls to prevent fraud or to dis­ say that they are all right subject, of close it, should it occur, and that the The Current Perform­ course, to the possibility that unde­ auditor's responsibility is to test those anee-Expeetatlon Gap tected fraud may have made them all procedures and controls. Although auditors have always ac­ wrong."6 However, auditors are being required cepted certain responsibilities which Although not as well documented, to rethink their fraud detection role, and the emerging attitude seems to be that relate, in one way or another, to the pre­ the general impression also seems to be the auditor must adopt a more positive, vention and detection of fraud, the that certainly Federal, and perhaps systematic approach to detecting fraud. manner in which they carry out these State and local, auditors have not as­ This redefinition or clarification of re­ responsibilities varies greatly among sumed responsibility for fraud detec­ sponsibilities may significantly affect audit organizations. Moreover, the ex­ tion and prevention consistent with that the extent of the work that internal au­ tent of work done to protect against or expected of them. The recent establish­ ditors, independent public account­ detect fraud differs substantially from ment, by law, of Offices of Inspector ants, and other auditors will have to do audit to audit, depending on the. nature, General in 12 large Federal depart­ to identify material fraud. purpose, and circumstances of the par­ ments and agencies illustrates the ticular audit. pOint. Clearly, Members of Congress As mentioned above, in September 1978, our Office reported that many Despite these differences, auditors as who sponsored and supported the bill large Federal agencies have not given a group have at least one thing in com­ creating the offices perceived that their adequate attention to identifying fraud mon: their performance has not meas­ primary purpose would be to detect ured up to the expectations of those fraud and abuse in Federal programs. in their programs; and therefore we re­ who use their services. Commenting on the bill, our Office commended an aggressive approach to In the private sector, this discrepancy noted that emphasis on fraud detection fraud identification, which included: has been recognized for some time and in drafting and debating the bill had led • Developing information on the is well documented. For example, a to neglect of traditional kinds of audit­ most likely types and methods of 1974 public opinion survey completed ing. We stressed the need to assure a fraud and the magnitude of fraud in for a national certified public account­ proper balance among the types of agency programs. ing firm shewed two extremes among audits the offices should be perform­ • Giving fraud detection a higher responses to the statement: "The most ing, i.e., financial/compliance, econ­ agency priority. important function of the public ac­ omy and efficiency, and program effec­ • Making employees more aware of counting firm's audit of a corporation is tiveness. the potential for fraud and alert to to detect significant fraud." Further, it is generally assumed that the need for reporting irregularities • Sixty-six percent of the investing internal auditors have an obligation not promptly. public agreed. only to be alert to the possibility offraud • Fixing responsibility for identify­ • Seventy-nine percent of certified in their work but also to devote a part of ing fraud. public accountants, professors, their efforts to detecting fraud that may • Providing fraud training to agency corporate executives, security law­ exist. Their performance, however, has investigators.s generally fallen short of expectations. yers, stockbrokers, and other sub­ Although the recommendations in 4 For example, our Office recently report­ sample groups disagreed. our report were directed to agency ed to the Congress that five of the six Similarly, in January 1978, the Com­ heads, the message to the internal audi­ Federal agencies we reviewed had no mission on Auditors' Responsibilities, tors was clear: LOOK FOR AND FIND established by the American Institute of group or unit which specifically and systematically looked for fraud.? FRAUD! The auditor's traditional role of Certified Public Accountants (AICPA) concerning himself with fraud only to develop conclusions and recom­ when it comes to his attention is not mendations on the appropriate respon­ Fraud Deteetion­ enough. He must do more. And, to sibilities of independent auditors, re­ A Resurging Role ensure more is done, in November 1978, ported: "Significant percentages of the Comptroller General established a By and large, the auditing profession those who use and rely on the auditor's task force to follow up on the recom­ work rank the detection of fraud among has agreed that it is not reasonable to mendations made to Federal agencies. the most important objectives of an au­ expect the auditor to detect fraud, even This group, known as the Task Force for dit."5 The commission acknowledged though it may exist. This attitude has the Prevention of Fraud or the "Fraud that various groups of users, the courts, prevailed mainly for two reasons. First, Squad," will systematically search for and the Security Exchange Commis­ were the auditor to attempt to assure control weaknesses and for fraud. sion consider the detection of fraud an there has been no fraud he would have important responsibility of the auditor to extend his work to a point where the Auditors in the private sector are also and cited the following statement as a cost and time to complete the audit being expected to do more to detect good expression of this viewpoint: would become prohibitive. Second, it fraud. While acknowledging that "no major aspect of the independent audi­ 'Opinion Research Corporation, "Public 6AMC. Morrison, "The Role of the Reporting Ac­ tor's role had caused more difficulty for Accounting in Transition," Chicago: Arthur countant Today-11 ," Accountancy (England), the auditor than questions about his Anderson and Co., 1974), p. 48. Vol. 82 (March 1971), p. 122. . responsibility for the detection of 5"The Commission on Auditor's Responsibilities: '''Federal Agencies Can, and Should, Do Moreto fraud," AICPA's Commission on Audi- Report, Conclusions, and Recommendations" Comb?t Fraud in Govemment Programs," (New York: AICPA, 1978), p. 31. (GGD-78-62), Sept. 19, 1978, p. 20. Blbid, pp. 29-30 eo GAO Review/Winter 1979 Fraud Detection: What Is The Auditor's Role?

tors' Responsibility, nonetheless con­ auditor can be assured that h is work will matter of luck as anything." Auditors cluded that the auditor must provide always detect material fraud when it accounted for only about 3 out of every reasonable assurance that financial does in fact exist. 10 discoveries, as the following table statements are not affected by material A simple, but truthful, answer is "no." shows. fraud. The commission also concluded The public accounting profession ar­ that auditors must assure reasonable Manner of discovery gues, quite convincingly, that certain Gratuitous circumstances management accountability for mate­ forms of fraud, such as collusion be­ rial amounts of corporate assets. Em­ or just plain luck 36 tween management and employees or Public accountant and phasizing an active, affirmative respon­ between the auditee and outsiders or internal auditors 29 sibility for fraud detection, the commis­ unrecorded transactions, cannot be de­ Management inquiries 16 sion recommended that independent tected. Audit steps and tests such as a Internal check 11 auditors: reasonable person would expect to be Unknown 8 • Establish an effective client inves­ applied simply will not uncover all fraud. Total 100 tigation program. Furthermore, time and cost constraints • Take immediate steps if serious will continue to limit the extent of the The auditor can look, question, and doubts arise about management work an auditor does to detect fraud. probe. He can be evermindful. of the integrity. Auditors also must balance their time possibility of fraud. He can be curious, • Observe conditions suggesting among many competing demands, not imaginative, and thorough in pursuing predisposition to management only in the conduct of individual audits all leads and allegations indicatingpos­ fraud. but in the management of overall work­ sible fraud. But in the final analysis, de­ • Maintain an understanding of a load. tecting fraud many times will be strictly client's business and industry. Moreover, the discovery of fraud a matter of luck. • Extend the study and evaluation of seems to occur, as often as not, com­ internal control. pletely unexpectedly-by happen­ Couelusiou • Develop and disseminate informa­ stance. A questionable item may cause tion on frauds and methods of de­ What the auditor specifically can and an employee or the auditor to inquire tecting fraud. should do to detect fraud is unclear and further. The item may be an unusual • Be aware of possible deficiencies probably will remain so; but, it is clear transaction or a curious relationship in individual audit techniques and that the responsibility for preventing observed by an inquisitive person. If the steps. and detecting fraud does not rest on the item is pursued, it may become the lead • Understand the limitations of in­ shoulders of the auditor alone. A good or clue to the discovery of fraud. For ex­ complete aUdits. 9 management control system is the first ample, a study done for the Institute of requirement and the best deterrent of Auditing pronouncements issued by Internal Auditors showed that the fol­ fraud. Internal and external auditing is the AICPA in recent years indicate a lowing items had served as initial clues: one aspect of such a system and serves shift from a vague, passive, and limited as a check on how well the other ele­ fraud detection role for the auditor to a 1. Payment of a large personal more clearly defined, active role. For ex­ invoice in currency by a traffic manager. ments are working. It does not, how­ ample, Statement on Auditing Stand­ (He was being bribed by a trucking ever, replace the other elements. ards No.6, dated July 1975, requires the company.) Auditors and those who rely on their auditor to search for transactions with 2. A hunch by an auditor that the services are likely to continue to dis­ related parties and to probe the details retail value inventory on a location was agree on the precise extent of the audi­ of such material transactions to deter­ unduly high. (This led to discovery of tor's role in fraud prevention and detec­ mine whether management is involved. $40,000 taken by an accountant who tion. But auditors have, without ques­ Statements No. 16 and 17, both dated thought he could conceal his specula­ tion, a responsibility to be constantly January 1977, provided guidance on the tions in the inventory account.) mindful of the possibility of fraud auditor's responsibility for detecting 3. A remark by a customer to a and to question things that "don't seem errors, irregularities, and illegal acts and sales supervisor on a change in price. right." They should refer all indications especially emphasized detecting, eval­ (The salesman had announced a price of possible fraud to proper authorities. uating, and disclosing possible man­ increase, but he was the beneficiary.) Furthermore, when fraud is discovered, agement fraud. . 4. A remark overheard ina bar that it is the auditor's job to find out why it indicated an overly close contact and happened and to help assure it doesn't relationship of company employees happen again. Can the Auditor with outside suppliers. (Investigation The auditor should not be expected, Always Deteet Fraud? revealed widespread collusion in a six­ however, to be an insurer against fraud; figure defalcation.) he cannot always detect fraud when it Thus, auditors in both the public and 5. A vacation trip by a shop fore­ exists. More often than not, he will in private sectors are beginning to accept, man to an expensive resort. 'O (He was fact detect fewer frauds than other to a greater degree, responsibility for doing a little manipulation in the sale of checks within the management control taking specific, positive steps to iden­ scrap.) system will disclose. This is as it should tify fraud. In so doing, there is the impli­ Another study involving 100 embez­ be. If the auditor can repeatedly find cation that if their work does not dis­ zlement losses confirmed the notion fraud, there has definitely been a break­ close fraud, it is reasonable to assume that the discovery of fraud is as much a down in other management controls. that no material fraud exists. This, in turn, raises the question of whether the lOB radford, Cadmus and Arthur J,E. Child, "William E. Henderson, Jr., "Employee Thefts Internal Control Against Fraud and Waste, and Fidelity Bonding," Internal Auditor, Vol. 31, 9Ibid.,pp. 38-40 (Prentice Hall, Inc.; New York, 1953), p, 280. (Nov/Dec. 1974), p. 25. GAO )Review/Winter 1979 Auditing Senate FinaneialDiselosure StatelUents

GAO is responsible for maintaining Evolution of Senate the integrity of the Senate's financial dis­ Resolution :l:lO closure process. At the time of this writ­ ing GAO was operating under a Senate In 1975 the Commission on the Oper­ Resolution; however, because of later ation of the Senate was established. In legislative developments, it is unclear as its December 1976 final report, the to what GAO's final responsibilities will Commission advocated the adoption of Pasquale L. Esposito be. more explicit standards of senatorial conduct, such as public financial dis­ Mr. Esposito is with the Federal Personnel and Beginning in the late 1940s, Members closure, prohibitions on income from Compensation Division (FPCD). He is the staff of Congress began expressing concern honoraria, restrictions or, outside earn­ manager for the Senate Resolution 110 staff. over the absence of official standards of ed income, definitions of conflict of Before joining FPCD, Mr. Esposito was assigned conduct and requirements for financial to the Washington regional office and the Energy interest, and guidelines on the sena­ and Minerals Division. He graduated from disclosure for officers and employees of torial use of aircraft provided by the Quinnipiac College in 1966 with a B.S. degree in the legislative branch. This concern executive branch. accounting and is a member of the Association gathered momentum from 1963 to 1966 Subsequently, in January 1977, the with the revelations of the outside busi­ of Govemment Accountants and the Institute of Senate created a 15-member Special Internal Auditors. ness activities of a former secretary to Committee on Official Conduct to write the Senate Democratic Majority and the a new Senate Code of Ethics. activities of a former Member of the After holding public hearings, the House. Consequently, in 1964, the Sen­ Senate adopted on April 1, 1977, Senate ate created a Select Committee on Resolution 110 (S. Res. 110). S. Res. 110 Standards and Conduct and in 1967, the includes provisions on public financial House created its Committee on Stand­ disclosure, conflicts of interest, political ards of Official Conduct. In 1968 both activity of staff, employment practices, Houses adopted standards of conduct enforcement of the resolution, and ad­ and financial disclosure requirements ditional Senate committee studies. It (almost totally confidential) for Mem­ also includes restrictions on the accept­ bers, senatorial candidates, officers, ance of gifts, outside earned income and certain designated employees. The and employment, the use of the frank­ House adopted additional ethics regu­ ing privilege and the congressional lations in 1970. radio and television studios, unofficial Since their creation, however, some office accounts, and foreign travel. critics have described these congres­ The resolution delegated a new sional committees as "watch-dogs with­ responsibility to the Comptroller Gen­ out teeth," and have criticized the codes eral (CG) and required him to assist the for being too weak, and the disclosure Senate Select Committee on Ethics in regulations for being insufficient be­ maintaining the integrity of the financial cause of their almost total confiden­ disclosure process the Senate had tiality. developed. Briefly, the Senate disclo­ sure process requi red that Senators, A number of polls and other studies senatorial candidates, officers, and em­ have indicated that in recent years pub­ ployees, compensated in excess of lic confidence in the Congress as a $25,000 per year, and employees deSig­ whole has fallen sharply. A Louis Harris nated to handle campaign funds, file a poll reported that 63 percent of the pub­ complete financial disclosure state­ lic want Members of Congress and their ment with the Secretary of the Senate election opponents to disclose their in­ no later than May 15 of each year. Fi­ come and financial holdings. Reports of nancial holdings/interests required to excessive campaign fund contribu­ be reported are explicit and include tions, large honoraria, extravagant disclosure of 14 categories of financial foreign travel, misuse of public funds, interest; the more important of which and abuses of Government positions are earned income, honorarium, other have all contributed to the declining income, gifts, personal and real prop­ public confidence in the Federal Gov­ erty holdings, and related transactions ernment and in our political leaders. and personal liabilities. GAO Review/Winter 1979 Auditing Senate Financial Disclosure Statements

Nature 01 GAO's • Developed an audit regulation as be disclosed, what type of holdings and required by Rule 42 which has been interest are applicable to the various Involvement unanimously approved by the Select disclosure provisions, etc. In nearly all S. Res. 110 assigned three primary Committee. cases when requests are received, the responsibilities to the CG: The work of the S. Res. 110 staff is individual requesting assistance must 1. Assisting individuals in complet­ cyclical in nature. During the period of provide his or her exact situation be­ ing their financial disclosure state­ January through May 15 of each year a fore meaningful assistance can be pro­ ments. portion of the staff was to respond to re- vided.

2. Auditing financial disclosure o quests for assistance. During the period

statements. 0 of June through March of the following Audits of Fluanelal Dlselo­ 3. Serving as a repositoryfordocu­ year, the staff was to concentrate on sure Statements ments filed in support of financial dis­ auditing Senators' and employees' closure statements. statements selected for examination. At This responsibility undoubtedly is the The CG has delegated the imple­ the current time we expect the staff will most important aspect of our new work mentation of these new responsibilities perform about 120 audits each year. In and will consume the greatest amount to the Federal Personnel and Compen­ addition, the S. Res. 110 staff may also of time and effort. As required by Rule sation Division (FPCD). be requested to assist the Select Com­ 42, GAO must randomly audit at least Before GAO could proceed with the mittee in its conflict of interest investiga­ one disclosure statement filed by each implementation of its new responsibili­ tions or may be requested to conduct Member of the Senate during his 6-year ties, the FPCD S. Res. 110 staff worked additional disclosure statement audits term of office, except that no such diligently with the staff members of the as the Select Committee feels are war­ audits shall take place during the calen­ Select Committee to resolve various ranted. ., dar year the Member is up for reelec­ organizational and procedural issues Additionally, the CG can request the tion. In regard to employee audits, GAO affecting our new responsibilities. To Select Committee on Ethics to issue a must randomly select approximately 5 illustrate, the S. Res. 110 staff has: subpoena for the production of books, percent of all disclosure statements • Participated in the development of papers, and other documents which he filed with the Secretary of the Senate. the Senate's disclosure form and feels are necessary to complete his Due to the confidentiality and sensitivity provided comments on their pro­ audit of a financial disclosure state­ of the information obtained, the results posed draft of the form and related ment. He is also authorized to use out­ of these audits will not be made public. instructions. side consultants (Le., independent pub­ A report will be sent to both the individ­ • Identified significant milestones for lic accountants and others) to assist in ual and the Select Committee. Further­ which various key tasks and issues auditing statements. The CG must also more, GAO is not authorized to inde­ had to be resolved within GAO and appear in court, when requested, to pro­ pendently make available to the public with the Select Committee before duce copies of financial records in any information about an audit. GAO GAO was able to implement its regard to an investigation of a Member, could request the Select Committee to duties in a timely manner consistent officer, or employee of the Senate. subpoena whatever financial records it with the implementation schedule GAO's audit responsibilities pertain to feels is necessary for it to effectively established by the Select Com­ the accuracy and completeness of the examine the financial statements se­ mittee. disclosure statement. Determination of lected for audit. • Developed and prepared GAO and conflict of interest is the responsi bility of FPCD orders which established the the Select Committee. Repository Servlees operational procedures for imple­ To un'derstand and appreciate the This function primarily consists of re­ menting our responsibilities. These amount of confidentiality and sensi­ tivity associated with these responsibili­ ceiving, receipting, and safeguarding detailed operational procedures confidential financial information sub­ pertain to (1) giving assistance to ties it is necessary to understand exact­ ly what these duties entail. mitted in support of reported disclo­ those required to complete public fi­ sures. The information currently on file nancial disclosure statements, (2) consists mainly of Federal incometax re­ the security safeguards that are nec­ FlnaueJal Dlselosure turns and confidential disclosures of fi­ essary to protect the confidentiality AsslstaDee nancial interests as required by old Sen­ of the material obtained during ate Rule 44 of the previous Code of audits and under GAO's custody, During the period from January to Conduct. Currently, the staff is main­ (3) the repository and special han­ May 15 of each year, Members, officers, taining nearly 12,000 filings made by dling responsibilities associated certain employees of the Senate, and Senators, Senate employees and candi­ with the receipt of tax returns and re­ senatorial candidates are required to file dates since 1968. As part of these reposi­ lated information under old Senate a complete financial disclosure state­ tory responsibilities GAO must main­ Rule 44 and Rule 42. ment with the Secretary of the Senate. If tain these files for no less than 7 years at • Developed a random sampling these individuals have any questions or which time they must be returned or model for selecting Senators and need assistance, GAO is obligated to destroyed. employees for audit. respond to their needs. Inevitably, the • Developed an extensive reference questions pertain to what must be dis­ guide for assistance and audit pur­ closed, who must file, how certain cate­ Looldng BaekAfter poses which incorporate and con­ gories of interests or financial holdings One Year solidate, by the appropriate cate­ must be valued, what are acceptable 01 Experlenee gories of interest, the financial dis­ methods of valuation, if and when closure provisions. spouse and dependent holdings must The first year of operation was truly a GAO Review/Winter 1979 29 Auditing Senate Financial Disclosure Statements

challenging one, and, at times, proved deduction for interest expense or prop­ when GAO requests the details and also to be a difficult one. Much had to be erty taxes, a check would be made to documentation of an individual's finan­ done in order for the staff to prepare it­ see if the proper liability and or real cial arrangements. self for GAO's new responsibilities. property disclosure were made. If for In addition to this uncommon expe­ Much of the first year was spent pre­ some reason the information appears to rience, frequent calls were received paring an effective implementation of be inconsistent with that reported for from the press inquiring about our re­ our new required duties and establish­ tax purposes, the auditor will contact sponsibility and the audits being con­ ing the S. Res. 110 staff as a functioning the individual to question why the dis­ ducted. Information has been provided entity. Because of our initial efforts and closure was not made and to obtain to press personnel and was included in contacts, a close association was de­ necessary supporting documentation. at least two news articles. veloped with Committee staff mem­ The scope of audits may vary from Although new barriers must be bers-providing an opportunity to gain statement to statement and will be left to surmounted almost daily, the S. Res. insight of the Committee's operations. the discretion of the auditor. Depend­ 110 staff has had continuous contact During this year-the first year of ing on the auditor's judgement of mate­ with Senators and other Senate offi­ congressional public financial disclo­ riality of the disclosed financial infor­ cials-something that is normally not sure-the S. Res. 110 staff busily pro­ mation, audits could vary from a experienced by a GAO auditor. While vided assistance. The staff received ap­ cursory examination to a more detailed the staff has its moments of gratifica­ proximately 300 questions from 140 dif­ one. In some cases, to insure that all in­ tion, there is a continuous learning ferent individuals seeking assistance. formation disclosed on the financial process and readaptation that we all These individuals included Senators statement is complete and accurate, the must accept if GAO is tc be successful and senatorial candidates, with the ma­ auditor may review in detail an individ­ in performing its new duties. jority of requests received from em­ ual's financial transactions and hold­ ployees. Not unexpectedly, the majority ings. What Does the Future of requests came in the last two weeks The auditor will request and examine before the filing deadline. All questions all necessary documentation support­ Hold? received that cannot be answered, ing the individual's disclosures, utilizing For the longest time, both Houses of either because the questions are unique a detailed check list of reportable items Congress saw the need for uniform (no precedent has been established) or to refresh the individual's memory of the ethics legislation for the legislative, because the disclosure requirements Senate's disclosure requirements; hold judicial, and executive branches of Gov­ are not totally clear, are referred to the discussions with the Senator and/or ernment. Such ethics proposals were Select Committee for response. his/her designated representative(s); passed by the Senate on June 27,1977, Before any audits could be started we and confirm the accuracy of the individ­ and by the House on September 27, had to devise a fair and equitable sam­ ual's financial interests/holdings with 1978; however, due to the difference in pling procedure for both Senators and fiduciary parties (e.g. brokers, lawyers, both proposals, a conference commit­ employees. As expected, a 5-percent accountants, life insurance companies, tee convened and favorably reported a random selection from the employee banks, companies in which the individ­ final bill, the "Ethics in Government Act population filing financial statements ual holds stocks, etc.). of 1978," which was approved by both was quite simple. However, this was not Our audits normally entail some Houses during early October 1978. the case with the selection of Senators. travel since some Senate employees While the original Senate version Due to the audit constraints set forth in selected for audit are employed in the contained provisions for GAO to audit the Resolution we had to devise a sam­ Member's home State. Also, our disclosure statements of Senate and pling model whereby all Senators had experience has shown that many Sena­ House Members, officers, and em­ the same chance of being selected tors and employees maintain much of ployees, the House version, which the while incorporating the greatest degree their personal financial records at their Senate adopted, contains provisions of randomness and establishing a con­ home locations. Therefore, on occa­ that would significantly alter GAO's role stant workload each year in view of sion, it is necessary to perform a Sena­ and responsibilities. The legislation available resources. Our sampling tor's audit in his home State even though now requires GAO to study and issue a technique makes it impossible for any he is located in Washington, D.C. report by November 30, 1980, on the ef­ Senator to "escape" from being audited Upon completion of the audit, a re­ fectiveness of the legislative public dis­ at least one time during his 6-year term. port is prepared, noting any exceptions, closure process. This would be a Initially, an audit notification letter is and an opinion is issued as to the accu­ system audit as opposed to a statement sent informing the individual that racy and completeness of the individ­ audit. Individual statements would be he/she has been selected for audit. A ual's disclosure report. reviewed by the congressional ethics pre-audit review is the next step in the To date, our experiences differed with oversight committees. audit process. It generally consists of an each individual who was selected for At the time of this writing, it is unclear examination of the individual's Federal audit. Some individuals are suspicious as to exactly what GAO's role will be income tax returns and disclosure state­ of our presence and intentions while since the Senate has not repealed the ment to detect possible inconsistencies others are overly accomodating. While Senate Rule requiring that GAO ran­ or omissions in reported information. some strongly verbalized their displeas­ domly audit individual disclosure state­ For example, if an individual's tax return ures with the Code's audit provisions, ments. While the final legislation does indicates that he/she received dividend others see the need for audit if the Sen­ not bar the Senate from deciding to income, we would check to see if a ate's disclosure process will enhance have GAO conduct such audits, no corresponding stock disclosure(s) was the public's confidence in the. Nation's action has yet taken placeto resolve this made in his/her disclosure statement. policy makers. As one would expect, dilemma. In fact, the Senate may retain Similarly if the individual claims a tax greatest opposition has been voiced the audit provisions as part of its rules if 30 GAO Review/Winter 1979 Auditing Senate Financial Disclosure Statements

it believes such audits are warranted. Although the S. Res. 110 staff in all likelihood will be closing its doors after an eventful duration, the staff has had an unforgettable experience and has gained substantial knowledge and in­ sight that will allow GAO to effectively carry out the audit role as provided in the final legislation . • ·ublic Fi uaucial Dis­ closure bv GAO oteteicials .,

As part of the closing session of the 95th Congress, both Houses passed an omnibus ethics bill which will affect all three branches of the Federal Govern­ ment. The act is known as the "Ethics in Government Act of 1978," and its effective date was January 3, 1979. Title I of this legislation pertains to personnel in the legislative branch and outlines the provisions of public finan­ cial disclosure requirements. All .agen­ cies of the legislative branch are af­ fected, including GAO and the other support agencies. Details of these requirements will be made available to GAO personnel as soon as possible.

GAO Review/Winter 1979 3. ProgralU Evaluation and Federal ProgralUs

John Scanlon This is the second in a series evaluation managers can assure both of arlic/es on program evalua­ utilization and program improvement. Dr. John Scanlon received his PhD. in The MEP set up and compared 12 chemical engineering from Rennselaer Poly­ tion appearing in The GAO model evaluation systems in different technic Institute in 1968. He is associated with Review. State and local agencies. The results the Performance Development Institute which demonstrate that utilization of evalua­ sets up evaluation systems required by man­ I. Overview agement to run a successful program. tion is achieved only when the user is actively involved in the evaluation ac­ Program evaluation should lead to tivity; simply providing information John Waller better programs. It hasn't, but there is does not result in its use. some hope that it can. While the concept of "active user Dr. John Waller received his PhD. in mathe­ Two objectives have always been involvement" may seem too obvious matics from Notre Dame in 1962. In addition to put forward for Federal evaluation to talk about, it turned out to be the doing research on evaluation and management pOlicy-to produce information for one factor that distinguished suc­ system pratices, he has carried out program use in decision making and to produce evaluations in a number of areas including de­ cessful from unsuccessful model eval­ fense, health, regulation, criminal justice and information that leads to program uation systems. Moreover, Federal education. He is with the Performance Develop­ improvement. These two objectives are evaluation practice is characterized by ment Institute. quite different. While utilization is a first the uninvolvement of Federal deci­ step in having any influence, it does not sionmakers in evaluating planning, necessarily lead to improved programs. design, and execution.4 A high level of Moreover, many believe that program utilization cannot be expected under ; improvement is too ambitious an that condition. objective to set for evaluation. They Interestingly, of the evaluation argue that evaluation offices are not systems achieving high utilization, none responsible for how information is used, could demonstrate that programs or or whether the program evaluated agency performance improved. They corrects problems. could identify specific decisions or In the past, the discussion about actions affected. However, the links objectives for evaluation efforts has between that action and such perfor­ been an academic one, since Federal mance indicators as productivity, effi­ evaluation offices have not accom­ ciency, effectiveness, or impact were plished either objective. Little utiliza­ never traced. Of course, the danger tion and no evidence of improved here is that evaluators may be advis­ programs is the record established by ing the user to put a new radio into a a sizeable, 10-year investment in Fed­ car that does not run. Evaluation eral evaluation efforts.1 management may be addressing in­ Today there is evidence that both significant issues and questions. objectives are achievable. The evi­ The HEW Evaluability Assessment dence comes from two recent dem­ Demonstration went a step further onstrations in evaluation management, than the MEP evaluation systems. It the Model Evaluation Program actively involved program manage­ (MEP), funded by the Law Enforce­ ment to assure utilization, but also ment Assistance Administration,2 and added a component designed to the Evaluability Assessment Demon­ address and affect program perform- stration, funded by the Department of Health, Education and Welfare. 3 The first shows how utilization can be 2. John Waller et al. Developing Useful achieved. The second shows how Evaluation Capability: Lessons from the Model Evaluation Program, Washington, D.C., The Urban Institute, April 1 978. 1. In the last 1 a years resources committed 3. Joseph Wholey et al. Evaluability Assess­ to program evaluation have grown steadily. The ment for the Bureau of Health Planning and Re­ Office of Management and Budget has source Development (five documents), Wash­ estimated that at least $243 million was spent for ington, D.C., The Urban Institute, November program evaluation by Federal agencies in fiscal 1977. year 1977. (Their survey covered 39 agencies represeniing 98 percent of the total executive 4. For a detailed example of evaluation plan­ branch fiscal year 1977 obligations). During this ning at the Federal level, see Pam Horst et aI., 1 a-year period, the evaluation literature has been Evaluation Planning at the National Institute of unanimous in criticizing evaluation's lack of Mental Health: A Case History, Washington, utilization and impact D.C., The Urban Institute, July 1974. 32 GAO ReView/Winter 1979 Program Evaluation and Federal Pmgrams

ance. That component is an evalua­ use cited was important to the per­ thods; production levels; type of eval­ tion plannin'g process in which pro­ formance of the user's function. uation products; cost per product; gram managers chose evaluation and The recipients of evaluation infor­ and standardization of the produc­ utilization plans most likely to result mation were surveyed to document tion process and mechanism to in­ in improved programs. Alternative use. volve user. However, when success­ plans are developed and, for each, The users identified included State ful systems were compared with un­ estimates are made of the likelihood and local officials in criminal justice successful systems, only one factor that it will lead to: (1) identification of agencies and planning agency man­ made a difference: production and achievable program objectives; (2) agement and staff. How the informa­ utilization of evaluation occurred definition of objectives acceptable to tion was used varied with the func­ when users were actively involved in the Congress and the President; (3) tion and responsibility of the user. Ex­ the evaluation process. When there definition of objectives that are meas­ amples of uses cited are: was no potential user identified or urable at reasonable costs; and (4) • Victimization Study: Findings when the potential user played a pas­ speCification and implementation of a caused police department to in­ sive role in the evaluation process, the successful program. Estimates of like­ stitute a burglary task force at product was of little interest. ly program improvement are devel­ Christmas time (source: Police Active involvement meant that the oped by the evaluation planner using Chief). potential user either gave a great deal data collected on both the program in • Youth Service Bureau Study: of guidance and direction on the sub­ place and the perceptions and expec­ Findings led planning agency to stance of the evaluation design and tations of policymakers. allocate more staff time to mon­ analyses, or actually carried out one The HEW demonstration is still itoring and assisting grantees. A or more of the steps in an evaluation. underway. To date, it has verified the technical assistance contract was Active involvement tended to occur MEP finding that involvement of the let that was to use the lessons when a real demand for evaluation in­ decision makers leads to utilization. It from this study (source: Planning formation already existed. It resulted has also shown that management can Agency management). in the users feeling "ownership" of the apply the performance-related evalua­ • Witness Utilization Study: Based product. That is, the users thought tion planning criteria. What remains to on findings, the court adjusted its the evaluation was answering their be seen is whether the evaluation and calendars so as not to hold questions in a way understandable utilization strategies adopted by man­ officers unnecessarily and intro­ and satisfactory to them. agement do lead to improved pro­ duced a 1-day delay in jury trials The unsuccessful sites required little gram policies and performance. The to reduce officer overtime involvement of the potential user, and base line against which to measure (source: Judge). no commitment from the user on what improvement has been established. • Adult Pre-Trial and Detention information was really needed. Typi­ Program management has already put Study: Following the study, the cally, following an interview with a po­ in place activities that make such im­ County Board changed its deci­ tential user and review of documents, provement likely to occur. sion about the size and configu­ the evaluator proposes a deSign for ration of new jail facilities and re­ comment or approval. Under this proc­ II. The Model Evalua­ organized the pretrial service pro­ ess, if the design is accepted, you can­ tlon Program gram (source: County Board and not be sure whether the user really County Administrator). wants it or is just not interested. Per­ In 1975 the Law Enforcement As­ As of January 1978, eight of the haps anything would have been ac­ sistance Administration (LEAA) twelve MEP sites had finished testing cepted. The MEP experience shows awarded grants to 12 federally funded evaluation systems. Four of eight that this reactive mechanism usually planning agencies to design, set up, were able to demonstrate success­ finds the evaluator guessing incorrectly, and test evaluation systems. The State information was produced and used and the identified user not really inter­ and local planning agencies are es­ by decision makers. ested.s tablished by the Omnibus Crime Con­ The other four sites could not dem­ Active involvement of the user re­ trol and Safe Streets Act of 1968 to onstrate that their systems produced quired a Significant investment of time carry out the planning and funding information that was used. One failed and effort on the part of the user and the processes authorized by the act. Dur­ to turn out any evaluation informa­ ing recent years these agencies an­ tion. Two sites produced information 5This is similar to the conclusion reached bya2- nually disbursed over $600 million in but did not get it used. They ap­ year Office of Economic Opportunity funded grants for projects to State and local peared to be providing a free good experiment in the Atlanta school system. An governments. for which there was not a clear need. evaluation system was designed and Use of the evaluation information in The remaining site was associated implemented in Atlanta to provide information on decision making was one of the suc­ with the production of useful informa­ school performance which management said it cess criteria set for an MEP evalua­ tion, but it was not demonstrated that needed. A follow-up study showed that the tion system. "Use" was defined as oc­ the MEP system was the principal school system did not use the information, curring when three conditions were reason the information was produced primarily because there were no administrative met: and used. Other resources and organ­ and management functions designed to use it. Simply providing information is not likely to lead (1) Intended and actual users izational units were independently to action. (See Bayla White et al. The Atlanta Pro­ claimed the information was useful. producing the information. ject: How One Large School System Responded (2) The users cited actual in­ The evaluation systems tested var­ to Performance Information, Paper 9-0507-5, stances of using the information. ied considerably on a number of Washington, D.C., The Urban Institute, March (3) There was evidence that the operating characteristics: study me- 1974.) GAO Review/Winter 1979 33 Program Evaluation and Federal Programs

evaluators. Each site developed a differ­ duce capacity and be prevented from were expected to change the health ent mechanism to achieve that involve­ adding additional capacity. The Bureau, care system. Figure 1 illustrates the ment. One planning agency trained its with a staff of 240, provides guidance, logic underlying one Bureau program­ whole staff in evaluation and had the develops technical assistance, and is the Bureau's technical assistance strat­ users design the evaluations in work­ responsible for defining and evaluating egy. The boxes represent events that shops. performance.6 were expected to occur; the arrows Another site involved the users by The demonstration was to use evalu­ indicate causation. The technical creating a committee and allowing it to ability assessment to help the Bureau assistance strategy had the Bureau de­ direct and control the study. Repre­ plan its evaluation efforts. The demon­ veloping products (e.g., planning sentatives from local agencies, advo­ stration is still in progress. However, the methods) which theagencieswould use, cate groups, and the public at large completed work illustrates how the and in doing so, help achieve one or were brought together. The committee evaluator can help management to de­ more desirable changes in the health met regularly-usually monthly-to re­ velop both a measurable and an effec­ care system. view the progress of the study and, tive program. Figure 1 is a simplified version of the often, to redirect certain activities, and Evaluability assessment is a planning actual logic model constructed to rep­ add or delete questions to be address­ process carried out by the evaluator and resent the Bureau's expectations and ed. The committee reviewed all prod­ program management, usually over a 3- confirmed by the Bureau. The assump­ ucts, sponsored public hearings on the mOAth period with two to three full-time tions represented by the model would reports and, after review and debate, evaluators. The evaluability assess­ be tested by an evaluation-do the wrote conclusions and recommenda­ ment estimates whether the program is events occur? Are expectations met? tions. They ended up becoming active sufficiently developed and imple­ i It is important to note that this model is participants. mented to have a useful and effective not a set of research hypotheses dream­ The Model Evaluation Program dem­ evaluation. There are four criteria that ed up bytheevaluator, but rathera policy onstrated that evaluation information must be met: statement-the logic used to justify the useful to decision makers can be rou­ • Measurable Expectations: pro­ Bureau's technical assistance program tinely produced. The price of achieving gram managers and policymakers to Congress, OMB, and HEW. The logic utilization is active involvement of the have selected and accepted meas­ of each of the Bureau's three program people who will act upon the informa­ ures for describing the program strategies was documented in this tion. and its objective. fashion. We believe utilization of evaluation • Plausible Program: there is evi­ The next step was to examine where information is a necessary but not suffi­ dence that the program is likely to management and policymakers were in cient criteria by which to judge evalua­ achieve objectives. identifying measures for the events in tion efforts. The evaluability assess­ • Cost Feasible Data COllection: the the logic models. The analysis showed ment demonstration is set up to show data required for evaluation can be that measures for the first two events in that program improvement is a practical obtained with resources available. figure 1-Bureau activity and product and realistic objective for evaluation • Well Defined Use: management production-were well defined and data offices to set for themselves. With the and policymakers know how to act was available. However, the last two evaluability assessment technique, the upon the evaluation information to events-the "use" and "effect" events­ evaluator involves management not only improve the program policies. had never been defined in measurable in developing evaluations, but also in If all the criteria are met, a useful evalua­ terms. At this point, one could say that developing realistic, acceptable pro­ tion is likely, and the program is said to the program was unevaluable on the gram objectives and putting in place an be evaluable. If one or more are not "use" and "effect" objectives. effective program. met, then the program is not ready to be To move forward toward an evaluable evaluated. Either program expectations program, the evaluation team entered III. The Evaluabrut,. or the program itself must be examined into discussions with Bureau manage­ Assessment Demon­ and changed. Here the evaluator identi­ ment on the type of measures and data fies options for making an unevaluable the Bureau might find acceptable. The stration program evaluable. The program costs of collecting data on such meas­ In 1977 the Department of Health, manager reviews and selects. Thus, the ures were estimated and discussed. The Education and Welfare funded a dem­ evaluation planning process itself can Bu reau made a tentative selection of the onstration of evaluability assessment. lead to dramatic program and policy measures it was interested in. The Bureau of Health Planning and Re­ changes. The next criterion examined was sources Development (the Bureau) vol­ A first step in the HEW evaluability as­ plausibility-is the program in place uriteered to participate. sessment demonstration was to deter­ likely to achieve the "use" and "effect" The Bureau is responsible for admin­ mine what was expected of the pro­ objectives? This criterion requires ex­ istration of Public Law 93-€41, "The gram. Interviews were held with top amination of the production, dissemi­ Health Planning and Resources Devel­ Bureau management (nine people), nation, and utilization processes for opment Act," that gives State and local congressional committee staff, and of­ technical assistance. Following this health planning agencies regulatory ficials in the Office of Management and work, the evaluation team concluded power. One of the several objectives of Budget and HEW. that the technical assistance program these agencies is to help control health It turned out that the Bureau had was not likely to be successful on any care costs by identifying and eliminat­ three major program strategies which acceptable definition of "use" and "ef­ ing (or preventing) the oversupply of fect." In other words, the program was health services. Half-filled hospitals, for 6HEW regional offices monitor the State and not plausible and, therefore, still uneval­ example, would be encouraged to re- local agencies for the Bureau. uable. The judgement of implausibility 34 GAO Review/Winter 1979 Program Evaluation and Federal Programs

you for repair that I never pickeo up. I'm almost embarrassed to ask, but do you FIGURE 1: EXPECTATIONS FOR BUREAU'S TECHNICAL ASSISTANCE PROGRAM remember me or my shoes?" Klostrovsky looks up from the bench and says: "Tell me, vas dey back BUREAU STAFF ACTIVITIES PRODUCTS ARE PRODUCTS ARE USE OF PRODUCTS shoes?" PRODUCED AND USED BY LOCAL RESULTS IN (About 20 percent of Bureau "Amazing," says the visitor, "they DISSEMINATED AGENCIES REDUCTION OF staff resources assigned to i--- were black!" its technical assistance TO AGENCIES OVERSUPPL Y OF program) -- --- SPECIFIC HEALTH "Tell me," says Klostrovsky, "vere dey SERVICES ving-tips?" "Fantastic, they were wing-tips in­ deed!" was based on the following evidence: The approach described above was "And," says Klostrovsky, "you vanted • The Bureau was having difficulty followed on all three of the Bureau's half sole mit a rubber heel?" producing products that it found program strategies. As obstacles to "Exactly!" exclaimed the visitor. "Do acceptable. evaluability were raised, the evaluation you by any chance still have the shoes?" • The field visits to agencies found team presented evaluation and program Klostrovsky looks up and says: "Dey'li that the Bureau's technical assist­ options to remove these obstacles. be ready Vendsday." ance products had not made much These proposals required a manage­ The program evaluation industry be:­ of an impression on the agencies. ment decision before the evaluation gan about 10 years ago. It promised • Bureau planning and develop­ team could go on. When presented with much then and as it grew it promised ment activities produced no evi­ options, the management can do one of more. But we are still waiting for dence (or reason to believe) that three things: "Vendsday." In 10 years it has delivered the products were needed or de­ (1) Assume the cost of the option. little. sired by agencies, could or would (2) Reject the options and lower We believe there is sufficient evidence, be used by agencies, and would in­ expectations. such as that reported here, to demon­ crease agency impact. (3) Require additional proof forthe strate that program evaluation can have' The evaluation team has to help evaluabilityarguments. a bigger payoff than it is currently pro­ management remove each obstacle'to In this way the evaluability assessment ducing. The Federal evaluation com­ evaluability. Therefore, it identified for method involves management in the munity has the technical capability and management a new .technical assist­ evaluation process, helps make the pro­ resources to be a major force in improv­ ance production process (new Bureau gram evaluable,and avoids misleading, ing program performance and produc­ activities and products) which, if adopt­ wasteful evaluation. tivity. Ten years from now we sbould be ed, might be plausible on the "use" and The evaluability assessment demon­ writing about the success of Federal "effect" objectives. This program strat­ stration is still underway. The evalua­ evaluation policy rather than its prom­ egy was based on the evaluators' ~xam­ tion and program options selected by ise. ination of agency operations and per­ management are being pilot tested and formance and their experience with the other evaluability criteria are being other technical assistance programs. examined. The proposed technical assistance program would develop a new type of product by packaging the successful IV. A Final Comment projects of individual health agencies. This one approach was identified for There is a story of a man who returns discussion purposes; others could have to his old neighborhood after an ab­ been explored if management desired. sence of 20 years. To his surprise, The discussions with management everything has changed. The family­ on the proposal uncovered: (1) a skep­ owned grocery store has been replaced ticism with technical assistance in gen­ by a modern supermarket. The little eral which had not emerged in earlier Greek restaurant is now a McDonald's. meetings, and (2) concern over the high There is a boutique where Mr. Kramer's cost of this new approach. It was de­ jewelry store once stood. cided to try it on a demonstration basis The visitor is feeling a great sadness before making a large commitment. at the loss of the ethnic neighborhood That work is underway. when he sees what might be a survivor, The plausibility analysis produced Mr. Klostrovsky's Shoe Repair Shop. He sufficient evidence that the current pro­ remembers how he moved away and gram was not likely to perform accept­ left a pair of shoes with Mr. Klostrovsky ably. It is not unusual for evaluation of­ to be fixed. fices to launch expensive evaluations He enters the shop and is overjoyed without first examining plausibility. In to find the old man still working at his this case an evaluation most likely bench. "Mr. Klostrovsky, I don't expect would have documented a failure and you to remember me. I used to live in contributed nothing toward improving this neighborhood 20 years ago. When I the program. moved away I left a pair of shoes with GAO Review/Winter 1979 35 Thirty Years of the Joint Finaueial ManageDlent IlUproveDlent ProgralU

The Joint Financial Management Im­ Progress toward achieving these provement Program (JFMIP) marked its goals has been made since 1948, but 30th anniversary on October 20, 1978. much remains to be done. With growing The program was established byagree­ complexity in program management ment among the Comptroller General, and ever-developing technologies, the the Secretary of the Treasury, and the JFMIP must meet the challenge to im­ Director of the Bureau of the Budget to prove financial management in the seek improved means to carry out the in­ Federal Government in the future. terrelated activities and responsibilities of the central financial agencies and to coordinate these efforts with the other executive agencies in the Federal Government.

Originally, program efforts were con­ centrated on improving accounting and auditing practices, but the need to expand the program's efforts in other areas of financial management was soon recognized. Today the JFMIP is a continuing force for stimulating im­ provements in all areas of financial management. Leadership is provided by the principals-the Comptroller General, the Secretary of the Treasury, the Director of the Office of Manage­ ment and Budget, and the Chairman of the Civil Service Commission.

Over the years, many success stories can be attributed to JFMIP. The pro­ gram initiated the development of the letter of credit system and the si mplified interagency billing and collection system and performed a series of major studies concerning such subject matters as operating budget, productivity, and money management. The countless achievements and worthwhile activities of JFMIP attest to the foresight of those who founded the program. The goals of JFMIP have not changed very much from the goals of the founders of the Joint Program who, 30 years ago, stated: 'The successful prosecutionofthisJoint Program will give the President better management in the executive branch, the Congress better information and bases for acting upon appropriations and other legislation, and the public a clearer picture of the financial condition and operations of the Federal Govern­ ment." 36 GAO Review/Winter 1979 30 Years of JFMIP

The signing of the charter of the Joint Program for Improving Accounting in the Federal Govemment, January 6,1949. From left: Treasury Secretary Snyder, Comptroller General Warren, and Budget Director Webb.

Tenth Anniversary, Joint Accounting Improvement Program. From left Comptroller General Campbell, Treasury Secretary Anderson, and Budget Director Stans.

Meeting of the liaison officers from the Treasury Department, Bureau of the Budget, and the General Accounting Office on the 20th anniversary of the Joint Program.

Thirtieth Anniversary meeting of the JFMIP principals and liaisons, September 15, 1978. Seated, from left: OMB Director Mcintyre, Civil Service Commissioner Campbell, Deputy Treasury Secretary Carswell, and Comptroller General Staats. Standing, from left: Biglin (CSC), Murphy (Treasury), Scantlebury (GAO), Uyeda (JFMIP), and Lordan (OM B). GAO Review/Winter 1979 37 GAO·s Aetion Offiee for Fighting Paperwork

a compliance program and exercises approval authority over regulatory agencies' reporting requirements. Established by the Federal Reports Act, this program leads the staff far from the normal audit trail. Over 5 years ago, a little-publicized congressional initiative thrust GAO into the forefront of the growing attack on Federal paperwork. In a 1973 amend­ Christopher T. Smith ment to the Federal Reports Act, Con­ gress transferred to GAO, from the Of­ Mr, Smith, a management analyst on the Re­ fice' of Management and Budget gulatory Reports Review Staff in the General (OMB), the authority to review and ap­ Government Division, joined GAO in 1974 after prove ("clear" in our jargon) regulatory working for Senator Harrison Williams and the agencies' information reporting re­ Senate SpeCial Committee on Aging, He quirements. This amendment, an unre­ attended Oberlin College in Oberlin, Ohio, ana the Catholic University of America, the Why have hundreds of organizations lated rider to the 'Trans-Alaska Oil Columbus School of Law, He was admitted to such as American Airlines, Black Hills Pipeline Authorization Act," sets cer­ the District of Columbia Bar in December 1977, Oil Marketers, Ernst and Ernst, the tain standards which we of the Regula­ Financial Executives Institute, and tory Reports Review staff apply when Swisher Electric Cooperative asked we clear reporting and record keeping GAO for help? Because GAO assists requirements.2 Specifically, the Federal them in coping with the 44 million hours Reports Act prohibits regulatory agen­ of paperwork burden which regulatory cies from collecting information from agencies impose on the public an­ the public until GAO has determined nually. Under the amended Federal that Reports Act, GAO is responsible for re­ • the information required does not viewing, modifying, and approving the duplicate information already information reporting requirements of available from a Federal source, twelve independent Federal regulatory • the compliance burden has been agencies. 1 As a result of this responsi­ minimized, and bility, a small GAO office protects the • the information is tabulated in a interests of individuals and organiza­ manner most useful to other agen­ tions that supply information to these cies and the public, regulatory agencies by attempting to Congress transferred this authority to reduce, whenever possible, agency re­ GAO for two reasons. First, Congress quirements for excessive paperwork, wanted to insulate independent regula­ tory agencies from OMB's broad clear­ ance authority and occasional execu­ SfaffRuns tive branch interference in regulatory CompHanee Program programs. This transfer was precipi­ tated when OMB refused to approve a In an unusual situation for GAO, the Federal Trade Commission (FTC) in­ Regulatory Reports Review staff in the formation collection proposal and General Government Division conducts thereby nullified a major FTC regula­ tory activity. Second, Congress wanted 'As of Novernber 1, 1978, the following agen­ to maintain a monitoring authority over cies were independent Federal regulatory regulatory agencies' information collec­ agencies for purposes of the Federal Reports Act and subject to GAO review: Civil tion activities-forms, surveys, regula­ Aeronautics Board, Commodity Futures Trading tions, and so forth-to protect the pub­ Commission, Consumer Product Safety Com­ lic from excessively burdensome or mission, Federal Communications Comrnission, duplicative paperwork requirements. Federal Election CommiSSion, Federal Maritime Our mandate to minimize respondent Commission, Federal Trade Commission, Inter­ burden occasionally places us in an ad­ state Cornmerce Commission, National Labor versary role with the regulatory agen­ Relations Board, Nuclear Regulatory Commis­ cies. This occurs when, to effect an, sion, Office of Surface Mining (U,S, Department of Interior), and S~curities and Exchange 2pub, L, No, 93-153, 87 Stat. 593 (1973); codified Commission, at 44 U,S,C, 3512 (Supp, V, 1975), 38 GAO Review/Winter 1979 GAO's Action Office for Fighting Paperwork

agency's compliance with the Federal (Since the regulatory agencies Consequently, the regulatory agencies' Reports Act, we refuse to allow that have generally agreed to modify compliance with the act is inconsistent. agency to collect information which burdensome or duplicative re­ The Securities and Exchange Commis­ conflicts with the act's standards and we quirements as we requested, we sion(SEC) and the Commodity Futures urge the agency to modify its reporting have been compelled to deny only Trading Commission (CFTC), for requirements accordingly. Despite this two information collection pro­ example, contend that the act does not relationship, most regulatory agencies posals.) apply to most of their reporting require­ are genuinely interested in reducing • Assigning, when the requirement is ments. This position is unsupported by respondent burden and willingly co­ finally approved, an identification the act, however, which does not distin­ operate in this effort. number and an expiration date. (By guish among kinds of reporting and To accomplish the act's require­ limiting an approval to a certain which, with the exception of bank regu­ ments, GAO created a small staff period of time, usually 3 years, we latory agencies, calls for review of all headed by the Regulatory Reports Re­ ensure that all requirements are independent regulatory agencies' View Officer. Because of a 45-day statu­ periodically reviewed.) reporting requirements. Since the tory time limit on our reviews and the • Making our workpapers, the ad­ SEC's and CFTC's positions have never numerous subtleties associated with ministrative record for our deci­ been tested in the courts, they have this work, the Regulatory Reports Re­ sions, available to any interested been able to disregard the act with view Officer exercises considerable persons or organizations. impunity. flexibility, independence, and discre­ Besides granting GAO approval au­ In addition to complicating our work tion in administering this responsibility. thority for individual reporting require­ with ambiguous language, the Federal Furthermore, this time limit requires ments, the act also requires GAO to re­ Reports Act includes one section clear­ that the four professionals and one view the regulatory agencies' informa­ ly restricting our authority. It specifies management assistant on our staff be­ tion-gathering activities. A separate that the regulatory agency make the come "instant experts" on diverse regu­ group on our staff conducts these au­ final determination on the need tor the latory programs so that we can, within dits. information. In other words, if an 45 days, effectively negotiate with agency determines that it needs certain agency officials and decide whether to information, we cannot override that approve each reporting and record­ Statutory Restrietions determination unless the information is keeping requirement submitted for re­ Create Problems already available to the agency or the view. for Staff compliance burden is undue. The prob­ To implement GAO's clearance lem arises because we cannot effective­ review program, the Regulatory Re­ In conducting this review program, ly minimize compliance burden with­ ports Review staff, with assistance from we have faced several problems caused, out being able to question the agency's the Office of General Counsel, drafted in my opinion, by the Federal Reports need for the information. In contrast, regulations which provide the rules and Act's ambiguous or indefinite language one of the act's sections concerning guidelines that agencies must follow in and restrictions on GAO's review au­ OMB's review of executive branch complying with the act. These regula­ thority. agencies' reporting requirements au­ tions became effective in July 19743 and Some agencies, for example, contend thorizes OMB to evaluate whether an will be revised in the near future. that the act does not specifically re­ agency needs information and to pro­ The regulations also outline our re­ quire GAO's approval of reporting or hibit collecting information which it view procedures which, as far as pos­ recordkeeping requirements before the determines unnecessary.6 sible, follow sound auditing principles. required information can be collected. These reviews include, however, fea­ This issue may be addressed in a pend­ Clearanee Reviews tures which are distinctive from stand­ ing lawsuit4 challenging the Federal Draw the Staff into ard GAO audit procedures such as: Energy Administration's (FEA's)5 • Soliciting comments on each re­ Mandatory Petroleum Price Regula­ Diverse Aetivitles quirement under review through a tions. The challenge is based largely on In conducting a compliance program, Federal Register notice or through FEA's failure to request GAO approval we often are involved in or perform var­ contacts established in pertinent of the recordkeeping requirements ious legal or coordinating activities re­ organizations or associations. (By which are necessary for FEA's program. lated to regulatory agencies' informa­ responding to our notice and other Partially because of this suit, the com­ tion collections. On six occasions, be­ contacts, interested organizations, pliance program based on these regula­ cause we approved a specific reporting such as those listed in the first par­ tions has been restricted. requirement, we have been named as agraph, ask us to modify or im­ Another problem arises because the codefendant in lawsuits challenging a prove agencies' reporting require­ Federal Reports Act did not specifically regulatory agency's reporting program. ments.) give GAO enforcement authority. In each case, our clearance decision • Negotiating revisions of a require­ and the agency's reporting program ment with agency officials to re­ 40lympian Oil Co., v. Schlesinger, Docket No. C- have been upheld. duce the respondent burden and 77-2196 WAI, US.D.Ct, N.D. Califomia. As codefendant or as an interested eliminate duplication. 51n its establishing legislation, FEA was desig­ party in other suits, we have partici­ • Issuing letter reports which an­ nated as an independent Federal regulatory pated in depositions and responded to nounce our clearance decision for agency subject to GAO clearance review. The interrogatories and numerous other rei each requirement that we review. plaintiffs initiated this suit before FEA was re­ located in the. Department of Energy and 6pub. L. 90-260, 82 Stat. 1303 (1968); codified at 34 C.F.R. Part 1O. (1978). removed from our jurisdiction. 44 U.S.c. 3506 (1970). GAO Review/Wtnter 1979 39 GAO's Action Office for Fighting Paperwork

quests for information about our work our files in reviews of regulatory agen­ ent judgement about information col­ and decisions. For example, in the FEA cies' reporting programs have found lection. Such a consolidation would lawsuit previously mentioned, GAO's them to be a helpful source of easily ac­ solve various problems caused by the Regulatory Reports Review Officer was cessible background information. split jurisdiction, would improve iden­ interrogated for 12 hours by attorneys Through our clearance activities, we tifying and eliminating duplication, and representing both the plaintiffs and the have developed working relationships would return the review staff and the at­ Government. In addition, GAO inde­ with officials responsible for paper­ torneys involved to GAO's primary pendently submitted an amicus curiae work matters in many Government oversight and evaluation duties. Re­ brief to the Court because the Depart­ agencies and a broad range of trade or moving this clearance function from ment of Justice's position-represent­ industry associations. Therefore, we GAO would also eliminate a conflict ing the Department of Energy-con­ can direct other GAO groups whose which could occur if our staff approved flicted with ours. GAO took this unusual work concerns Federal paperwork to a reporting requirement which a GAO step because a court decision in favor of various individuals and organizations audit group determined was not needed FEA, based on Justice's position, could who may be able to assist them in their or was excessively burdensome. GAO seriously impair our ability to perform work. recently transmitted, to selected ·con­ our duties. Conversely, other GAO groups may gressional leaders, draft legislation Since our staff's primary function is to be able to make referrals which will help which would help resolve these and reduce the reporting burden imposed us. Respondents-often irate-occa­ other problems concerning the Federal on the public, we occasionally organize sionally contact GAO to discuss or Reports Act. or lead interagency meetings to dis­ complain about a form which we have Some congressional leaders who cuss ways to eliminate duplication and cleared. Unfortunately, these communi­ understand the Federal Reports Act and to increase data sharing. We also par­ cations are not always forwarded to our are concerned about paperwork prob­ ticipate in task forces and work groups staff for the appropriate response. Any lems appear to be pleased, however, which concentrate on paperwork or in­ GAO staff member who receives oral or with the current arrangement and disin­ formation-gatheri ng problems. written communication concerning a clined to return to OMB the clearance We continuously confront questions regulatory agency's form and a GAO authority for independent regulatory involving, among other things, statu­ approval number will assist us by refer­ agencies. As a matter of fact, Congress tory interpretations, our regulations, ring the questions to our staff. has occasionally shown interest in in­ other agencies' regulations, and the ap­ Recently, FGMSD assisted us in creasing the number of agencies sub­ plicability of the Federal Reports Act to creating a computer system which con­ ject to our review. For example, the leg­ regulatory agencies and their reporting tains basic information about all GAO islation enacted in 1977 establishing the requirements. Often, before answering and OMB clearances. This system will Office of Surface Mining within the De­ these questions, we consult with the improve our own information on agen­ partment of the Interior made that of­ senior attorney in the Office of Gen­ cy reporting programs, permit usto pre­ fice, which is not an independent agen­ eral Counsel aSSigned to assist our staff dict and control our workload, and im­ cy, subject to GAO's review.7 At the and with representatives of the other prove our capability to identify clear­ same time, other legislation has been agencies involved. In most cases, our ance problems. Furthermore, since this introduced to consolidate clearance au­ decision, or answer, to these questions system inCludes information on OMB thority for all Federal agencies in OMB. is binding on the affected agencies. clearances of executive branch agen­ Congressional intentions on this cies' reporting and record keeping re­ subject are by no means clear. quirements, it covers nearly all Federal Consequently, until Congress reex­ Our Flles Serve as Use­ reporting programs and undoubtedly amines and consolidates the review au­ ful Resourees to Other most, if not all, GAO issue areas. Conse­ thority for Federal reporting require­ GAO Groups quently, this new computer system can ments, this small GAO staff will con­ be useful to other GAO staff members tinue to protect individuals and busi­ Because our reviews affect how who review agency reporting programs nesses from regulatory agencies' ex­ much paperwork respondents must and need basic descriptive information. cessively burdensome and duplicative submit to regulatory agencies, we oper­ paperwork requirements and will con­ ate in a goldfish bowl. Private parties The Future of a Clear­ tinue to serve as a clearinghouse for in­ subject to regulatory agencies' report­ formation on regulatory agencies' re­ ing programs closely monitor our ac­ auee Fuuetlou in GAO porting programs. tions and our decisions are subject to judicial challenge. Consequently, to en­ The future of the Regulatory Reports sure that we make correct decisions and Review staff in GAO is unclear. In testi­ that we have an adequate administra­ mony and informal discussion, GAO tive record supporting those decisions, officials, including Mr. Staats, have con­ we prepare and maintain, for each re­ sistently stated that the authority to view, a complete file which includes all clear regulatory agencies' reporting re­ related information and which docu­ quirements should be removed from ments the basis for our decision. GAO. The Commission on Federal Pa­ In our inventory, we have 354 files on perwork recommended combining in reporting requirements which impose OMB the responsibilities of the two cur­ approximately 44 million hours of re­ rent clearance offices. This recom­ 7Surface Mining Control and Reclamation Act, porting burden on the public annually. mendation also included provisions to Pub. L. No. 95-87, section 201 (e); 91 Stat. 450 In the past, audit staffs which have used protect regulatory agencies' independ- (1977). 40 GAO Review/Winter 1979 Risk and CODlputer Re­ HabWty-Can You Afford to Take the Chanee'l

Imagine! The scene is the executive Francisco city computer incorrectly director's conference room; the cast is listed some residents as wasteful users GAO and the agency; the occasion is of water during a severe drought. the audit exit conference. Obviously the agencies trusted the Eight long, tough months of effort are computers enough to make these lists finally coming to an end. The audit find­ public, later causing embarrassment ings are ironclad; bundles of cross-ref­ and a potential for lawsuits. Auditors Francis Langlinais erenced work papers support the defi­ face even greater risks. Many judg­ ciencies. A damaging statement of facts ments about the adequacy of agency Mr. Langlinais, an audit manager in the Dallas reflects hours of meticulous prepara­ and client operations and management regional office, joined GAO in 1964. He has a B.s. degree in accounting from the University of tion. Confident, the auditor relentlessly are based on computer data. Any dis­ Southwestem Louisiana and an M.BA from describes the agency's shortcomings. crepancies could discredit the entire Mississippi State University. He is the immedi­ "Management has failed to conduct audit. ate past president of the Dallas chapter of the its safety inspection program properly. Association of Government Accountants. As a result, hazards exist for both peo­ ple and the environment. A review of What GAO Has Done your region's records showed 310 hos­ Almost half of GAO's audits involve pitals harbored unsafe . . . " computers or computer-related output. "Excuse me," the director interrupts. More than one-third of our audits use "How many hospitals?" computer products to support findings "310," replies the auditor. and recommendations. "Why that's impossible! There are As a first step to help avert any data only 250 hospitals in the entire region!" reliability problems, GAO's Office of "But that can't be. Your records Policy and Program Planning issued a showed ... " new chapter 11 to the Comprehensive "Our records aren't worth the paper Audit Manual. The new chapter spells they're printed on. We've had problems out our policy on using automatic data with that computer system since the day processing (ADP) in auditing. GAO it was installed." policy states: "Well . . ., er... I guess we'll "When ADP is an important integral have to check that point. Er ... sorry, part of agency operations which we are sir!" auditing, our work should include an What? GAO back off? Never! But appropriate examination of the func­ James Musial what else could the auditor have done? tioning of the ADP system. Further, if Even the agency officials admitted their computer products or output are to be Mr. Musial, a supervisory auditor in charge of records were suspect. used in a report or in support of a find­ the technical assistance group in the Chicago In our hypothetical case the auditors ing, we should make an appropriate ex­ regional office, joined GAO in 1968. He has a were lucky; the discrepancy was found amination to provide reasonable assur­ B.S. degree in mathematics from St. Joseph's before the report was issued. What ance that the information is reliable College and an M'p.S. from DePaul University. would have happened if it was discov­ consistent with its intended use." ered after? Well, numerous cases have "Consistent with its intended use"-a been cited where information issued by key phrase indeed. For even if a single agencies, both public and private, con­ piece of data from some computer tained computer-related errors. printout provides the key support for For example, the Department of some audit finding, it must be assessed Health, Education, and Welfare recent­ for reliability. And why not? The credi­ ly made public a computer list of 409 bility of the whole finding and possibly physicians supposedly earning more the entire report may hinge on that data. than $100,000 from Medicare in 1975. Thus, as a second step, the Financial Scrutiny by the American Medical As­ and General Management Studies Divi­ sociation, however, showed a 65 per­ sion, with help from several regional of­ cent error rate in the list. Some errors fices, issued the Audit Guide For As­ were innocuous enough, such as wrong seSSing Reliability of Computer Output addresses, but others were quite dam­ to assist auditors in performing reliabil­ aging, attributing fees to doctors who ity assessments. It provides auditors did not receive them. Similarly, a San with a structured approach for testing GAO Review/Winter 1979 41 Risk and Computer Reliability

the accuracy and reliability of com­ indicating no verification was per­ For example, data used as back­ puter data used in GAO audits of pro­ formed must accompany the data in the ground information-to show the mag­ gram results, as well as efficiency and report. nitude of a program-is less sensitive, economy, and compliance reviews. A or more error tolerant, than data used as second guide entitled Audit Guide For Howls It used? evidence to support a finding-a criti­ Reliability Assessment of Controls in cism of agency management. I n the Computerized Systems (Financial The guide is set up in four sections, former case, less sophisticated, more Statement Audits) has been issued for each dealing with more comprehensive traditional audit procedures would be use in rendering an opinion on financial and detailed work steps. The level of needed to assess the reliability of data, statements. scrutiny needed depends on how the while the latter would require a more The policies are excellent on paper data will be used in the report and the thorough assessment. but a third step remains-the divisions reliability of the data. The four sections Sometimes it may be impractical to and regions must begin to comply with are: test for data reliability because of staff or the policies. I - Importance of Computer-Proc­ time constraints, overall job objectives, Since most GAO audits are general essed Data-requiring the auditor or audit conditions. When such situa­ purpose audits, this article will focus its to identify the computer data used tions occur, the auditor always has the attention primarily on the use of the Au­ and determine its significance to option to end the assessment. The audi­ dit Guide for Assessing Reliability of the audit. tor must decide to use the computer Computer Output. II - Initial Tests for Data Reliability­ data with a qualifying statement that no describing the tests which should verification was made, to use other ReUabWty Guide be performed on the data. known reliable data, or to acceptthe risk III - Survey of Internal Controls-pro­ and use the data as is. When an assess­ For General Audits viding the auditor with work steps ment is warranted, however, the auditor to assess the controls over the in­ should go on to section II. Since ADP is usually not the primary put, processing, and output of audit objective, the amount of time audi­ data. tors spend assessing the reliability of IV - Summary Memorandum on Re­ Seetlon II-Initial Tests computer data should be kept to a mini­ sults of Reliability Assessment­ For Oata Rellabruty mum. Thus, the guide presents various providing the auditor with guid­ tests for data reliability that should sat­ ance for summarizing the assess­ Section II gives a systematic ap­ isfy the auditor's validation require­ ment results or explaining why re­ proach for testing data reliability. Al­ ments without extensive, time-consum­ liability was not assessed. though suggested work steps are pre­ ing work. The flow chart on page 4'3 gives an sented in a logical sequence, the audi­ overview of the reliability assessment tor need perform only those steps that Who should use It? approach used in the guide. The auditor will quickly and completely provide in­ is responsible for completing sections I, formation to judge reliability. The audi­ The guide is designed for use by au­ II, and IV of the guide. For section III as­ tor should: ditors with little or no ADP experience. sessments, the Technical Assistance 1. Obtain background information A basic, introductory ADP course is the Staff, with the audit staff's help, will on the computer application that gener­ only prerequisite. The guide encour­ survey the agency's internal controls. atesthe data used in the audit and de­ ages the use of traditional data verifica­ If significant deficiencies in the data termine whether the system was recent­ tion procedures familiar to the auditor­ processing system are found, the audi­ ly evaluated, to what extent, and by interviewing personnel, reviewing and tor should consider having the whom. analyzing records, etc. It also suggests Technical Assistance Staff perform a 2. Define the data to be evaluated that the auditor examine the system complete system evaluation. FGMSD so as to clearly understand what the controls only enough to judge the re­ has a Guide for Evaluating Automated system records. For example, the audi­ liability of the computer information. Systems for technical staff use. tor should determine what alphabetic or numeric codes represent and whether When should the assessment Seetlon I-Importauee of their values resulted from computation be performed? (addiUon, subtraction) or summariza­ Computer-Proeessed Oata tion (totals, averages). As soon as the auditor knows com­ The first steps in the reliability assess­ 3. Identify the documents which puter data will be used during the audit, ment are to identify the computer data generate the computer data and under­ a reliability assessment should be per­ to be used during the audit and to deter­ stand how they flow to and from the formed. This will enable the auditor to mine how it will be used in the report. computer. Once this document flow is deal with data problems early in the au­ The auditor must decide what impact understood, the auditor should verify its dit. Also, the auditor can plan alterna­ the data's reliability will have on the final accuracy by observing the process from tives if an assessment is not possible. audit product. the preparation of source documents to Sometimes the auditor may not be For example, is the computer data a the distribution of computer output. aware until the later stages of the audit routine or special agency report, a com­ 4. Identify key personnel who use that the data used is computer process­ puterized data file, letter, or form? Is it the computer data. Interviewing users ed. Still, one is not relieved of the re­ processed by the accounting system or may help identify errors that require sponsibility to assure data reliability. payroll system? Once the data is identi­ further examination. However, if insufficient time remains for fied, then its significance must be deter­ 5. Perform the three most com­ an assessment, a qualifying statement mined. mon reliability tests. 4~ GAO Review/Winter 1979 Risk and Computer Reliability

plish this task. OVERVIEW OF RELIABILITY APPROACH Most auditors, being generalists, lack the expertise to deal with the technical SECTION I aspects of ADP internal controls. Thus, AUDIT SIGNIFICANCE OF the auditor should ask the Technical COMPUTER PROCESSED DATA Assistance Staff to complete the ques­ tionnaires and profiles used for this pur­ pose. However, the auditor should work closely with the technical staff to under­ stand the nature of internal controls and their impact on reliability. Also, the auditor can gain valuable experience for future reliability assessments.

SECTION II

TESTS FOR DATA Seetlon IV-Summary RELIABILITY Memorandum on Results of ReUabiUty Assessment

When the assessment is complete, whether at the end of section I, section II, or section III, a summary memoran­

on PERFORM TESTS FOR dum must be prepared. This summary ~ DATA RELIABILITY ..J memorandum should recap the work -CONFIRMATION o'" and include a statement about the [ -COMMON SENSE -COMPARISON data's reliability and the reasons for the ~ to conclusions. on>­ Once it's completed, the Technical on ::J Assistance Staff should review the :;:> a: memorandum and keep a copy for w on~ ______~ future reference. SECTION III

SURVEY OF INTERNAL S1I.U1IUary SYSTEM CONTROLS TECHNICAL STAFF EVALUATES INTERNAL CONTROLS As can be seen, reliability assessment is a step-by-step approach for gather­ ing information about computer data to reduce the auditor's risk in relying on it as accurate and complete. It is not intended to turn every GAO audit into a computer audit. Quite the contrary. The guide is just that-guidance for the auditor to deal with a new and some­ times complex technical area. It repre­ sents a way to assure accuracy and SECTION IV maintain integrity in our reports. SUMMARY MEMORANDU~ON RESULTS Of course the assessment can open OF RELIABILITY ASSESSMENT new avenues for audit findings. Th ink of the approach as a building block in -Confirmation tests to verify data with sion is dependent upon the depth and terms of our traditional "criteria, cause, other independent sources, such as coverage given the tests and the and effect." For example, in sections I principal users, internal audit, third intended use of the data in a final audit and II, we establish criteria and identify parties, etc. product. Decision tables are included in and isolate specific data problems for -Common sense tests to analyze the the guide to aid the auditor in a choice of study. Section Ill's survey of internal data for reasonableness; such as, are alternatives. controls, or lack thereof, serves to ex­ amounts too small or too large, are cal­ plain the causes for the problems. A culations correct? Seetlon III-Survey of complete system evaluation (the next -Comparison tests to compare the Internal Controls logical step) demonstrates the effects of data with independent sources, such as the problems on agency or cl ient opera­ source documents; physical counts and If the auditor is still not satisfied with tions. inspections; or other records, files, or the reliability of the computer data, Sound familiar? Well it should. It is reports. further examination of the computer really dOing the same things we have 6. Evaluate test results. Once the system and processing, including con­ been taught to do as auditors from Day data has been tested, the auditor must trols, must be performed. A study of the One. The goals and objectives remain decide whether the results are sufficient internal controls over the input, proc­ the same; only the medium used to ac­ to judge reliability. The auditor's deci- essing, and output of data will accom- complish them has changed. GAO Review/Winter 1979 43 Risk and Computer Reliability

{A,neluslon

Any audit policy or guide is only as RELIABILITY ASSESSMENT good as the people who use it. Trite, but A STEp·BY·STEP APPROACH true. GAO's ADP policy clearly places the responsibility to perform reliability assessments with individual auditors. And rightly so, for these are the field staff directly exposed to the computer STEP 1 - DETERMINE THE AUDIT SIGNIFICANCE OF T HE COMPUTER PROCESSED DATA (ESTABLISH ED CRITERIA) data and for whom the guide is written. But what about the countless others in GAO, specifically the division direc­ STEP 2 - CONDUCT TESTS FOR DATA RELI ABILITY tors, regional managers, deputies, as­ (IDENTIFY SPECIFIC DATA PROB LEMS) sistants? They too must recognize the importance of reliable computer data in STEP 3 - SURVEY THE INTERNA LCONTROLS reviews and reports, because they (EXPLAIN CAUSES FO RTHEDATA impart GAO's management philosophy PROBLEMS) down through the organization. With­ out top management support, the pol­ STEP 4 - SYSTEM EV ALUATION (DEMONSTR ATETHE icy stands little chance of widespread EFFECTS 0 FTHE and consistent application. DATAPROB LEMS) The computer can no longer be ignored. Increasingly, auditors must use its output as sources of information and evidence in making sound judge­ ments about agency operations. So the next time you run across a computer printout that appears neat and accurate, resist the temptation to rely on it as fac­ tual and correct. Instead, ask yourself, "Can I really rely on this data?" Hope­ fully, the reliability assessment guides will help you answer the question more confidently.

44 GAO Review/Winter 1979 No Roof on Housing Costs

Ron Wood

Mr, Wood, a supervisory auditor in the Com­ munity and Economic Development Division, is the division's housing and community develop­ ment coordinator. He joined GAO in 1965 after receiving a 8,S, degree in accounting from Concord College, Athens, West Virginia, Mr, Wood is a CPA (District of Columbia) and a member of the American Institute of CPA's and the National Association of Accountants, Mr, Wood is a previous contributor to The GAO Review.

The high cost of buying and main­ few cities or regions, but is nationwide. taining a home has become a major The chart lists the leading housing problem for millions of American fami­ areas, according to new housing starts, lies. In May 1978, the average selling and compares the purchase price and price nationwide for new single-family mortgage rates for June 1977 and June homes reached $63,000, representing a 1978. 16 percent price increase since May 1977. During the same period, existing Why New House Prlees house prices increased 17 percent to an average selling price of $54,800. Hous­ Are So High ing experts project at least a 1O-percent Increased costs associated with fac­ price increase during the next 12 tors such as government regulations, months. Likewise, the expenses of buyers demanding larger homes with running a home have increased over 8 more amenities, financing, and home­ percent annually since 1970.1 ownership have all contributed to high­ The following chart illustrates thatthe er housing prices and a decline in hous­ high cost of housing is not limited to a ing affordability. LEADING HOUSING AREAS

Purchase Price Housing New Homes Existing Homes Starts Percent Percent New Homes ExlstlnJ! Homes Cities ______~ Juns 7"- June 78 Change June 77 o!.!!!!~ Change June 7~ June 78 June 77 June 78 Houston 62,426 560.900 565,400 +7.4 $57,000 577,200 +35.4 9.13% 9.74% 9.15% 8.89% Chicago 42,000 62,100 72,500 +16.7 60,JOO 66,900 +10.9 8.78 9.31 8.71 9.43 Dallas-Ft. Worth' 40,524 64,900 61,300 -5.9 46,400 61,600 +32.8 8.95 9.76 9.05 9.82 San Diego 37,000 71,800 87,200 +21.4 62,200 79,400 +27.6 9.19 9.76 9.30 10.03 Los Angeles.Long Beach 34,000 72,100 84,600 +17.3 71,500 82,200 +17.3 9.21 9.85 9.28 10.00 SeaHle-Everell 32,595 52,700 59,500 +12.9 48,000 54,900 +14.4 9.08 9.80 9.19 9.90 Phoenix 30,000 51,200 66,800 +30.5 54,100 64,800 "19.8 8.87 9.53 9.04 9.74 Denver 25,000 60,200 64,700 +7.5 55,000 63,900 +16.2 9.04 9.86 9.16 9.92 Detroit 24,250 55,000 63,300 +20.5 43,700 48,500 +11.0 8.84 9.19 8.89 9.47 Washington, D.C. 22,989 67,700 80,000 +18.2 69,100 80,300 +16.2 8.83 9.41 8.86 9.58 Philadelphia 18,800 52,100 50,600 -2.9 46,600 54,000 +15.9 8.70 8.72 8.80 9.15 Ft. Lauderdale' 16,000 15,145 36,900 43,400 +17.6 52,400 58,200 +11.1 8.79 9.32 8.81 9.27 Miami"

'Purchase Price and Mortgage Rate are combined lor Ft Lauderdale and Miami. FlOrida p. preliminary SOURCE FHLBB Conventional Mortgage Rates. NAHB EconomiCS DIVISion Metropolitan Area HOllslng Starts Forecast

'The factors that contributed to these large cost Government Regula­ increases were the subject of GAO's report, "Why Are New House Prices So High, How Are tions a Faetor in Prlee They Influenced 8y Government Regulations, Rise and Can Prices Be Reduced?" (CED-78-101, May 11, 1978), Government regulations that control GAO Review/Winter 1979 45 No Roof On Housing Costs

the development of land and the con­ struction of houses are a major factor Percentage of housfJS contributing to the rising price of hous­ Characteristics 1950 1976 ing. GAO found that encouraging some communities to allow the use of less ex­ Bathrooms-2 or more 4 67 pensive items in new homes could re­ Bedrooms-3 or more 34 88 sult in potential savings of from $1,400 Garage or carport 47 80 to $7,000 per house. Many builders were Central air conditioning (a) 49 not using less expensive materials or Dishwasher (a) 78 methods because of personal prefer­ Stove/oven 21 91 ence, familiarity with a particular me­ Fireplace 22 58 thod or material, or consumer demand. During the last decade a plethora of aNational data not collected for these items. "growth management" ordinances ranging from absolute limits on hous­ cent compared to 9 percent a year ago. expenses on a median price new house ing starts to sewer moratoriums What does this mean to you in terms of which sold for about $44,300. This cropped up ·from coast to coast. Land your monthly payment? To buy, for ex­ monthly outlay represented almost 47 development regulations add signifi­ ample, a $50,000 home with a 2(}percent percent of median family income, ad­ cantly to the cost of new houses. Ex­ down payment, a 10-percent interest justed to exclude Federal and State in­ amples of the impact that the most re­ rate would increase your monthly come taxes and social security taxes for strictive requirements had on housing payment about $28 over a 9-percent a family of four. Byway of contrast, only costs in the 87 communities GAO sam­ rate. about 31 percent of adjusted median pled were (1) specification or stand­ Also, you would probably find it hard­ family income was required to defray ards for streets and related site improve­ er to qualify for a mortgage loan. At 10 similar home ownership costs in 1965. ments that increased the cost by as percent it would take $1,340 more The following chart shows how ex­ much as $2,655 per house; (2) munici­ income to qualify for an 80-percent loan penses of running a house have chang­ pal fees as high as $3,265 per house for than at 9 percent ($17,440 rather than ed over the last 5 years. such items as local services, permits, $16,100). inspections, and utility connections; Conelusions ExpensesofRunuiug and (3) requirements for dedicating For millions of American families, the land for parks and schools increasing a Home dream of owning a home is no longer ·the per house cost up to $850. Homeownership costs increased becoming a reality. While it is true that about 200 percent from 1965 to 1976. many owners of existing homes have Larger Homes ContrI­ The largest increase occurred in prop­ benefited from inflation and have bute to Inereased Costs erty taxes (up 350 percent for the med­ moved on to improved housing without ian-price new home). By 1976 home­ major financial strain, others have not Builders catering to the demand of ownership costs had reached the point been so fortunate. Fortheyoung couple homebuyers who prefer larger houses that a monthly expenditure of $465 was of limited means, the family with low in­ with many amenities are another major required to amortize the mortgage prin­ come, and the elderly on fixed incomes, factor causing increased prices of new cipal and pay the mortgage interest, in­ the high cost of owning a home is not houses. Consequently, homebuyers surance premiums, property taxes, util­ merely serious, it is too often an insur­ today are generally (1) families in the ity costs, and repair and maintenance mountable crisis. upper or upper-middle income brack­ ets who can afford the large downpay­ ments and the high monthly homeown­ EXPENSES OF RUNNING A HOME­ ership costs of these larger homes PRICE CHANGES FROM 1973 to 1978 and/or (2) prior homeowners who are Percentage Increase able to use theequityfrom their homes to buy high priced new homes. Finances Mortgages-Interest rate 21 Typical new houses today contain Property taxes 26 more amenities and are 700 square feet Property Insurance 28 larger than popular houses of the 1950s Utilities because of the addition of family rooms, Electricity 59 more than one bathroom, bedrooms, Gas 104 Fuel 011 131 and eating areas. The following table Telephone 15 shows the percentage of houses built in Water and sewage 54 1950 and 1976 which contained these Services and other characteristics. Household worker's pay 68 Washing-machine repair 47 Furnace repair 48 Interest~teslJp Repainting a room 52 Replacing a sink 53 You have been shopping around and Reshlngllng rool 67 Re-sldlng a house 69 have finally found your dream home. However, you have also discovered that Source: U.S. Department of Labor, Commerce mortgage interest rates are now 10 per- 46 GAO Review/Winter 1979 Auditing in Booties and Bonnets

As a GAO auditor, how would you test. The checklist was structured so respond if asked to evaluate the qual­ that auditors lacking a technical ity of the National Cancer Institute's background could verify if a proce­ (NCI's) Carcinogenesis Bioassay dure was being followed. To insure Testing Program when you don't that our checklist was comprehen­ even know what "bioassay" or "carcin­ sive and accurate, we had it reviewed ogenesis" mean? This was the prob­ by well known bioassay scientists from lem we faced early this year when industry, NCI, and FDA. confronted with a congressional re­ With the methodology in hand to quest. gather "raw" data on test conditions, Gill Fitzhugh We soon found that the Bioassay we now needed a tedm of scientific Testing Program involves testing experts to Mr. Fitzhugh, an auditor with WRO, joined GAO chemicals to see if they are carcino­ • evaluate the overall impact of defi­ in 1976, following a tour of duty as a nuclear sub­ genic (cancer causing). Commercial ciences we found in lab inspec­ marine supply officer. He holds a BA in economics from Washington and Lee Uni­ laboratories under contract to NCI tions, and versity, and an M.BA in finance from the Uni­ perform the tests by giving heavy • assure that conclusions in our re­ versity of Texas (Austin). doses of chemicals to mice and rats port had scientific credibility. for 2 years. We also learned there We felt it essential that NCI accept our were no commonly accepted guide­ consultants as being qualified to judge lines fon bioassay testing, and, there­ lab testing conditions. To assure this, fore, had no criteria for inspecting a we asked both NCI and the prime con­ sample of the labs doing the testing. tractor to nominate scientists they felt In short, with no training in the bio­ were qualified. From their nominations, logical or medical sciences, we were we chose three having no financial ties asked to evaluate the scientific qual­ with NCI, and hired them as consultants ity of these tests. This was further to assist on the lab inspection. All three complicated because the state of the had extensive bioassay experience. art of bioassay testing constantly Each was expert in an integral disci­ changes, and the results of the test­ pline of bioassay science, namely, ing have attracted considerable con­ pathology, toxicology, or veterinary gressional attention. medicine. Two were from academia To assess the quality of test condi­ (Cornell and Purdue) and the third was tions, we first had to define how a a high ranking scientist in the Canadian quality bioassay test should be done. government. Each proved remarkably One bioassay expert told us that knowledgeable, competent at AI Stapleton standards had changed so much that inspecting, and easy to work with. tests done just 4 or 5 years ago were Armed with the checklist and team of Mr. Stapleton is a management analyst in the no longer acceptable. As a result, we Procurement and Systems Acquisition Division. experts, we then faced the prospect of needed a current description of the inspecting private labs that were not He began his career with GAO at the hundreds of procedures that make up Washington regional office in 1973. particularly anxious to be evaluated by a successful bioassay test. GAO nonscientists. Our first task on We reviewed testing guidelines arriving at each lab was to make it clear written by NCI and the Food and to the management that the consultant Drug Administration (FDA), but scientists, not GAO auditors, would could not find any that were current, make all scientific judgements. This detailed, and applicable to all as­ step was essential to establish our cred­ pectsof ongoing bioassay tests. Fi­ ibility and gain their cooperation. Hav­ nally, from the prime contractor hired ing accomplished this, we then began by NCI to manage the testing labs, we each inspection. obtained an extremely detailed con­ During the first week at each lab, we tract document which included used our checklist as criteria to "audit" practically every phase of the proce­ test conditions at the lab before the con­ dures-perfect for our needs. sultants arrived. This involved reviewing Using this document as a basis, records and inspecting the - ariimal and incorporating salient pOints from rooms and facilities. When the consul­ several others, we developed a tants arrived the following week, we "checklist" of over 350 procedural briefed them on the checklist deficien­ steps that, if followed by the lab, cieswe found. This gave them a chance should insure a high quality bioassay to quickly identify and probe those GAO Review/Winter 1979 47 Auditing in Booties and Bonnets

weaker aspects of lab operations that they decided could affect test quality. Following this 2- to 3-hour briefing, we accompanied during their lab inspec­ tions which took about 2 days. Thecon­ sultants liked this approach, as it en­ abled them to quickly pinpoint areas needing additional scrutiny. We felt this method of "dual" inspection made the most efficient use ofthe resources avail­ able-auditors and scientists-as we inspected and reported on three labs using fewer than 30 consultant staff­ days. In retrospect, we believe our checklist was a very effective tool for gathering data from the labs. This data, coupled with the consultants' own followup inspections, led to a rapid assessment of condition quality. This assessment was included in the consultants' sepa­ rate reports, and was the basis of our Report to the Congress. The checklist itself was so comprehensive that NCI requested it to give to commercial labs seeking to upgrade their own proce­ dures. As one lab scientist remarked after we completed our checklist in­ spection, "For a bunch of bean count­ ers, you guys ask some pretty good questions!" Some of our more interesting expe­ riences were • dressing in lab coats, respirators, bouffant bonnets and booties, and witnessing firsthand the execution and necropsy (autopsy) of 120 test rats, • examining animal testing rooms which contained known carcino­ gens, • observing dogs smoking cigarettes in a test for lung cancer, and • being spit on by unappreciative chimpanzees. The highlight of it all however, was hand-feeding lifesavers to a 450-pound pet gorilla with a severe hangover (not us, the gorilla!). We worked daily with top sCientists and doctors, met with four company presidents, and gained exten­ sive inside knowledge on an extremely controversial program. As far as we know, we are GAO's top (and only) ex­ perts in bioassay testing, and can prob­ ably even do a creditable necropsy!

48 GAO Review/Winter 1979 Writing for Satisfaetion and Reeognition

It is the desire of all GAO employees Not every concept, however, can to achieve recognition as being profi­ be dissected into basic components cient in each problematical and enig­ and still retain the original meaning or matical assignment that they endeavor intent of the author. Often the impact of to execute. GAO employees want to be vagLJe statements is tantamount to a good at their jobs. The two sentences persuasive argument. John Kenneth above are identical in meaning. The Galbraith feels that often there is a need first, however, is difficult to read; its to be obscure in reporting. In the Atlan­ meaning is unclear. Sentences similar tic Monthly he advises, "complexity and to the first can be found in almost all obscurity have professional value. They KayH.Baily GAO reports. If the meaning is lost exclude outsiders, keep down competi­ among unnecessary, incoherent word­ tion, and preserve the image of a privi­ Mrs. Baily has been a reference librarian with the ing, how can valid arguments be pre­ leged or priestly class." In dealing with Office of Librarian since 1977. She holds a BA sented? How can GAO be persuasive? technical principles, being concise and degree in social science from Elan College and Recognizing the need for clarity and direct may only serve to dilute and dis­ an M.L.S. from the University of Maryland. conciseness in its reports, GAO is en­ tort. Galbraith feels it is often better to couraging good writing habits among be scientifically and technically correct employees. Many GAO staffers have than to oversimplify highly specialized been involved with inhouse training material. courses focused on effective writing techniques. In conjunction with these, Audlenee the GAO Technical Library supplies additional sources for individuals de­ What is the relationship between writ­ siring to improve their writing style. The ing style and audience? Are you direct­ library has numerous books and articles ing your message at scientists, politi­ whose authors "preach the gospel" of cians, or laymen? Does it really matter? good writing, each with a tailored em­ Allen Weiss in Write What You Mean: A phasis and absolute answer. Handbook of Business Communica­ Some of these "answers" to good tion, feels that keeping one's audience writing are highlighted below and may in mind with written communication is help determine particular writing weak­ very important. Effectiveness is lost nesses. when one's readers can not relate to the printed word before them. Identify your Understanding audience. Present findings and sugges­ tions based on their characteristics. Technical jargon is fine for scientists Clear ideas from clear thinking is a but unacceptable to laymen. catchy little phrase and one that de­ Writing With Precision, or as it is more serves some attention. One cannot commonly known, Zero-Based Gob­ write intelligibly without clearly under­ bledygook by Jefferson D. Bates, in­ standing the subject he or she is writing cludes an excellent chapter on audi­ about. ence awareness. Bates has developed a And when a person does not know checklist to help writers analyze their what he is writing about, it results in readers. Establish as much data as you space being filled with disjointed words; can regarding: age, sex, occupations, quantity makes up for quality. In Simple educational background, and levels of and Direct: A Rhetoric for Writers, Jac­ expertise. Write for the average reader, ques Barzun states, "One starts writing, "the least common denominator." not with a well-shaped thought, trim­ "Strive to slant the material so it will be med and polished, but with an intent­ as interesting and understandable as perhaps with several, overlapping and you can make it." Bates includes in his conflicting." Thorough knowledge of subject matter is a prerequisite for con­ book an excellent bibliography and numerous exercises for practice. tinuity in clear thinking. Barzun has de­ veloped an instructional handbook for writers, outlining 20 basic principles Clutier that lead to sound writing skills. Exer­ cises provided at the end of each chap­ Clutter, the official language of most ter give the reader an opportunity to organizations, is highlighted in William practice clear, Simplistic composition. Zinsser's book, On Writing Well: An In- GAO Review/Winter 1979 49 Writing for Satisfaction and Recognition

formal Guide to Writing Nonfiction. He Bibliography feels one should use "the English langu­ age in a way to achieve the greatest A Manual of Style: For Authors. Editors. and strength and least clutter." Numerous Copywriters. 12th Ed. Chicago: University of examples are cited to illustrate this Chicago Press, 1969. REF PE 1408.M3. point, and the book itself is an excellent Barzun, Jacques. Simple and Direct: A Rhetoric for Wnters. New York: Harper & Row, 1975. PE model for clear, concise writing me­ 1408.6436. thods. Specific points addressed Bates, Jefferson D. Writing With Precision: How include: word usage, style, unity, suit­ to Write so That You Cannot Possibly be Mis­ ability, and brevity. The essence of good understood. Washington: Acropolis Books, writing, practice and rewriting, leads to 1978. PE 1429.635 the elimination of clutter. Gunning, Robert. The Technique of Clear Writ­ Another promoter of anti-clutter is Ing. New York: McGraw-Hili, 1968. PE1408. Robert Gunning, author of The Tech­ G93 Jordan, Lewis. The New York Times Manual of nique of Clear Writing. Gunning states Style and Usage. Quadrangle: New York that "writers with a wide audience and Times, 1976. REF PN 4783.J6 influence, follow principles of clear Modern Language AssGciation of America. The statement for easy reading." Using MLA Style Sheet. 2nd Ed. New York: MLA, short, common wording is a means to 1970. REF PN 160.M6 clear statement. Gunning developed Strunk, W. Jr. & White, E.6. Elements of Style. the Fog Index, which when applied to 2nd Ed. New York: MacMillan, 1972. REF PE writing samples, measures readability 1408.5772 and audience appeal based on length United States Government Printing Office. and recognition of words. The appen­ Style Manual. Washington: GPO, 1973. dices at the end of the book are helpful Z 253.U58 Weiss, Allen. Write What You Mean: A Hand­ guides in achieving readability. Appen­ book of Business Communication. New York: dix B is the "Dale List of 3000 Familiar Amacom, 1977. HF 5718W42 Words," words recognized by at least Zinsser, William On Writing Well: An Informal 80 percent of the population. Appendix Guide to Writing NonfictiOn. New York: Harper C is a list of word substitutions, long & Row, 1976. PE 1429Z5 versus short. You now have an understanding of the subject matter, have identified the audience, and are conscious of the pit­ falls of clutter. How do the bits and pieces merge into a cohesive report? Many available reference sources can be helpful when looking for word con­ tinuity. Dictionaries are valuable tools, especially when distinguishing between connotation and denotation. Thesauri are helpful in the word search; however, they can be misused when farfetched synonyms are substituted in order to avoid repetition. Style manuals provide guidelines for writers and editors, and contain rules necessary for conformity of capitalization, punctuation, abbrevia­ tion, and spelling. Consistency in usage of recognized language conventions leads to more thorough reader compre­ hension. You now have a passing acquaint­ ance with what most authors agree are the major components of good writing. What comes next? Practice makes per­ fect. Work towards improving your technique. Draw upon some of the ref­ erences listed in the bibliography. After having sharpened the senses, keep alert to the pitfalls and avoid them in your oWn report writing.

50 GAO Review/Winter 1979 AssigulUeut: Simplify the Taxpayer's Chore

Christopher R. Abraham Every year American taxpayers face requirement of 99.9 percent technical the bewildering and frustrating task of accuracy. As a result current 1040 Mr. Abraham is a management analyst with the filling out an income tax return. packages are poorly designed and are IRS group in the General Govemment Division. According to fRS about 50 percent of written at a reading level beyond that of He has an M.S. in economics from Carnegie­ U.S. taxpayers pay individuals or firms, many taxpayers. Mellon University and is currently enrolled in the such as H & R Block, to help them com­ Tax law specialists, usuallyformerlRS J.D. Program at George Washington University. plete their tax returns. revenue agents, are responsible for During the 1977 filing season (Jan. 1 developing tax forms. They have tech­ through April 15), nearly 8 million tax­ nical backgrounds to monitor and Gerald P. Barnes payers telephoned IRS for help, asking analyze tax laws, court decisions, and Mr. Barnes is an auditor with the statistics group for information about such things as IRS regulations in updating forms, of the General Government Division. He recently earned income credits, home sales, and schedules, and instructions. However, received his M.BA from U.D.C. and has a B.S. whether they had to file a return. they do not have the backgrounds to from Bowie State College. Of the almost 84 million returns adequately write and design material processed in 1977, 10.3 percent contain­ that the general public can easily ed mathematical or clerical errors. Al­ understand. Amos Romanoff though some of these weresimple arith­ Although tax law speCialists are metic errors, many apparently occurred assisted by writer-editors and forms Mr. Romanoff, a certified internal auditor, is with because the filer did not understand the management analysts (printing related), the Detroit regional office of GAO. He has both a instructions. the assistance is limited and controlled B.S. and M.BA in accounting from Wayne State The taxpayers' difficulty in reading to a certain extent by the specialist. For University. and understanding tax forms and example, the writer-editors are utilized instructions is a widespread problem only on a part-time basis, and sometimes and recently has become a concern of to edit only grammar. Similarly, forms the Congress. As a result, the Joint Com­ management analysts assist the tax law mittee on Taxation requested that GAO specialists by reviewing forms and in­ study IRS problems in communicating structions and preparing the copy tax laws to the public.1 primarily so that it is suitable for printing; their design role is limited. Burgeouing Tax Code IRS infrequently obtained outside expertise in writing and graphics, and and IRS Management generally did not use the results of the Weaknesses Have work. In 1977, forthefirsttimein at least5 Contributed to the years, it hired a firm, primarily composed Problems of tax experts, to rewrite the instructions for Form 1040A. The specifications for We found that these problems can be what was to be done were inadequate attributed; generally, to the proliferation however, and the product was not used. of tax laws, as well as IRS's mismanage­ IRS hired a design expert for one day in ment of tax forms and instructions. The 1977 to review Forms 1040 and 1040A. Internal Revenue Code, which contains However, he did not actually redesign all Federal tax legislation, has expanded the forms, but concentrated pri marily on to several thousand pages today from the use of color on the forms. less than 20 pages in 1913; and the in­ Although IRS has made some structions in the tax packages have progress recently, such as the grown from 4 pages in 1913 to about 50 sequential flow formatting of Form 1040, today. Over the years, IRS has been we believe greater improvements are mostly concerned with making sure that necessary-and possible-as part of an the Form 1040 tax packages accurately overall, concentrated improvement reflect the complex tax laws. It has plan. seldom, however, adequately used the writing and design capabilities of its own Tax Materials Can Be employees or outside experts to ensure that readability does not suffer from its Understandable To correctly prepare a tax return, or 'This article is based on the GAO report "Further any other form, the preparer must be Simplification of Income Tax Forms and I nstruc­ able to read and understand the form's tions Is Needed and Possible" (GGD-78-74 instructions; but if the preparer cannot dated July 5, 1978). read and understand these instructions, GAO Review/Winter 1979 51. Assignment: Simplify the Taxpayer's Chore

the form is of novalue. Unfortunately, we must be remembered as it is read. Thus, a To found this to be true of the current 1040 reader may have difficulty understand­ instructions. They are written at a ing a sentence if he/she must remember "Nonresident aliens may receive the reading level beyond that of many supporting words before knowing the credit only if: taxpayers. subject and verb or if he/she must -they are married to a resident or To assist in our analyses, we called mentally process several complicated citizen of the U.S.; and upon reading and writing experts to conditions and/or steps while re­ show that the 1040 instructions can be membering the results of each priorstep. -they file a joint return; and made more understandable. These -they include all worldwide experts included the National I nstitute of The Solution: income on that joint return." Education's Basic Skills Group, educators, writers, and representatives Readable Tax Material These problems have not received from Reader's Digest. much attention from the IRS until re­ Our experts solved these problems by The experts performed readability cently. IRS' main concern has been to using word substitution, active verbs, analyses of the 1040 instructions using ensure that the tax instructions placing qualifier and subordinate both computerized and noncomputer­ accurately reflect tax laws. Certainly ac­ material after the subject and verb, and ized formulas. The results of these curacy of any written material is the subject and verb together­ analyses indicated that a median ~eeping important. However, accuracy is of no all of which are basic writing techniques. reading ability of an average 10th grade value, unless those that must use it They also broke long, complex sen­ student would be needed to read and understand it. The materials our experts tences into short clear ones, and used understand the 1040 instructions. revised show that simple English and lists of short, direct sentences with each Applying this reading level to that of the complex tax provisions are compatible. sentence starting on a separate line. taxpayers, we esti mated that perhaps 13 million 1040 filers had difficulty reading The problem of long and uncommon Graphie Design Should words was solved by substituting more and understanding the instructions. Help, not Hinder We also asked these experts to familiarwords for technical and unfamil­ iar words, such as "only" for determine if the reading level of the 1040 The second problem we identified was "exclusively" and "husband or wife" for instructions could be lowered and, if so, the design of the tax materials. Graphic to show how. They succeeded by "spouse." The following examples from the Form 1040 instructions illustrate the design sets the whole tone of written rewriting selected portions of the 1040 other techniques used. materials; it can make the material either instructions to an average of the 8th intimidating and difficult or appealing grade reading level (the lowest deemed From and usable. Forms design is not an area practical by experts). in which GAO has developed expertise, "These rules are for all U.S. citizens so we needed to talk with experts who Why the Returns Are and resident aliens, including those could analyze the problems and suggest under 21 years of age. These rules solutions. The staff of the Federal Hard to Read also apply to those nonresident Graphics Improvement Program of the aliens and resident aliens who are The experts lowered the reading level National Endowment for the Humani­ married to citizens or residents of ties, responsible for Government-wide of the 1040 instructions by identifying the U.S. at the end of 19':17 and who and solving two of the major writing efforts to improve the quality of Federal elect to file a joint return as problems: (1) the use of long and un­ graphics materials, suggested a number discussed on page 6, under Your common words, and (2) the use of long of prominent design experts who Filing Status." and complicated sentences. discussed the graphic design of the The experts argued that familiarity Form 1040 and the instructions with us. with vocabulary is a key factor in reading To comprehension. In the 1040 instruc­ "The rules below apply to everyone. Problems in the tions, IRS uses many long, technical, They apply to U.S. citizens and to Cu.... ent Material and unfamiliar words which are not a foreigners who live here. They Part of many taxpayers' vocabulary. apply to foreigners who are married From these experts we learned that Thus, their meanings are either to U.S. citizens and to all who are there were, in fact, serious design weak­ unknown or unclear, and rather than U.S. residents at the end of 1977. nesses in the tax materials. These in­ clarifying the instructions, simply con­ They also apply to people who file a cluded, among others: fuse the taxpayer. 'joint return'-in other words two Long and complicated sentences married people reporting their -The lines of information on the 1040 were also identified by the experts as a income together." are too close together and look too cause of taxpayer difficulty in reading much alike. and understanding the 1040 From instructions. These sentences are dif­ -The instruction pages have insuf­ ficult because the su bject and verb are at "No credit is allowed to a non­ ficient margins and spacing. opposite ends or the supporting words resident alien unless the -The instructions do not address come before the subject and verb. Also, nonresident alien and his or her Form 1040 on a line-by-line basis. long sentences which present a number spouse who is a citizen or resident of qualifications or complicated con­ of the United Stateselectto be taxed -The instructions neither begin with, ditions are difficult to understand be­ on their worldwide income andfilea nor flow logically from, the informa­ cause of the amount of information that joint return:" tion the taxpayer needs first. 5t! GAO Review/Winter 1979 Assignment: SimplifY the Taxpayer's Chore

-The type used for printing the form sometimes duplicated, throughout the and instructions does not clearly instructions; placed on the form but not differentiate between special and in the instructions; duplicated in both; or general information. left out altogether. For example, the instructions direct The Solution: Bette.. the taxpayer to see the optional State sales tax tables forthe amountto deduct Design and Organiza­ but give no page numberto help the tax­ tion payer find them. The taxpayer must search through the package and even To demonstrate to the IRS not only that then can easi Iy overlook them. For these there were problems but also that they and other reasons, our design experts could be effectively solved, we con­ stressed the need to reorganize the tracted with two prominent graphics instructions to get a better flow and a design experts. We asked them to apply clearer division of the sections. graphics techniques to revise the Form Their reorganizations tied the instruc­ 1040 and selected pages of the in­ tions more closely to the form. One de­ structions. Signer did this by using large numbers Through different approaches, the on the form to key its sections to the designers revised the tax material to same large numbers in the instructions. makeH more readable and to sytematic­ She used smaller numbers to key the ally tie the instructions more closely to lines within the sections. The other the forms. The experts redesigned the designer took a different approach. He 1040 to incorporate better spacing and used descriptive titles in color to key the separation of lines. They suggested sections of the form to the instructions. using colored dividers to break the form To separate the sections, they used into manageable sections. This would heavy, colored horizontal lines and allow the taxpayer to divide the task into greater spacing. a series of smaller tasks. The instructions, our graphic de­ signers found, appeared crowded and Results Today and were poorly organized. Our designers Potential for the made the instructions appear less Future formidable by using wider margins and more spacing. One designer kept the In the rewritten and redesigned ma­ three-column format in the current in­ terials, our experts provided clear illus­ structions but increased the spacing trations of the improvements that could between the sections and columns. The be made. By incorporating these illustra­ other designer changed from tliree col­ tions into the report, we were able to umns to two wider columns, and used show IRS and the Congress the types of larger type and a wide left margin. These tax materials that could be produced for changes make the information easier to a relatively small investment. IRS has read. started a program to bring about major The purpose of the instructions is to improvements in the design and help the taxpayer determine whether he/ readability of the tax materials. The she is required to file a Form 1040 and, if chairman and vice-chairman of the so, to guide him/her logically through requesting Committee endorsed the that task. However, the organization of material presented in the report. Other the current tax instructions is at odds committees may initiate hearings to with their purpose. They neither begin oversee I RS' progress and to explore the with, nor flow logically from, the usability of the approaches to other, information the taxpayer needs first. nontax materials. For example, the first page inside the cover of the instructions shows the Earned Income Credit Worksheet. Thus, before the taxpayer is given any informa­ tion as to whether he should file a return, whether Form 1040 may be the proper return for him to file, or any other general information, he is given a worksheet to use in calculating an entry for line 57 on the Form 1040. In addition, the instructions do not address the 1040 form line by line. Instead, explanations are scattered, and GAO Review/Winter 1979 53 The Personal Toueh: An Effeetive Way to Obtain Questionnaire Response

At the request of the Comptroller cials-a problem frequently encounter­ General, a team, comprised of staff from ed when using this audit technique-we the Community and Economic Devel­ called previously identified building opment Division (CEO) and the Detroit code officials in the selected communi­ regional office, was assigned to meas­ ties. During the telephone conversa­ Robert Piscopink ure the nationwide impact that local tions we (1) confirmed that they were government building and land develop­ the right officials; (2) explained to them, Mr. Piscopink, an audit manager in the Detroit ment regulations have on the price of in more detail than normally possible in regional office, joined GAO in 1955. He is a new single-family detached homes. In a transmittal letter, the objectives and graduate of the University of Detroit with a B.S. degree in accounting. He is a CPA (Michigan) planning the review work, one of the approach to our study; and (3) person­ and a member of the American Institute 01 major problems the team faced was ally asked for their cooperation and as­ CPAs and Association of Government Ac­ how to minimize the time and cost in­ sistance. In addition, we asked these of­ countants. He is also a certified intemal volved in obtaining data from 87 differ­ ficials who was responsible for admin­ auditor. Mr. Piscopink is a previous con­ ent communities located in metropoli­ istering subdivision regulations and tributor to The GAO Review. tan areas throughout the country. To zoning ordinances in their community. visit each community and to speak with In some instances it was the individual the numerous local officials would have we were talking to. When it was another involved an estimated 3,000 staff days, community official, we called to ask staff from nine regional offices, and for assistance. would have taken about 2 calendar To follow up the first two question­ years. naires, we did not use the traditional ap­ proach of sending out followup letters. Using Questionnaires Since we had previously talked to the in­ dividuals involved, we again used a di­ After discussions with the staff of the rect, personal approach by calling them Financial and General Management on the telephone. In many instances, Studies Division (FGMS), the team de­ this served as a reminder and we re­ cided questionnaires were the most ceived a completed questionnaire cost-effective way of gathering the data. within several days. In other instances, If you have ever used questionnaires we obtained the official's answers to the on an assignment, you can probably re­ questionnaire during the followup call. call the frustration of trying to get ques­ When we received partially completed Donald Weisheit tionnaire recipients to respond, thetedi­ questionnaires, we used the same ap­ ousness of sending out followup letters, praoch; we SOlicited the needed an­ Mr. Weisheit, a supervisory auditor in the Detroit the question of what to do about nonre­ swers over the telephone. regional office, has worked in the Cleveland sub­ sponsive or inconsistent answers, the The third questionnaire, unlike the office since joining GAO in 1965. He has a B.BA difficulty in stating complicated ques­ first two, was too complicated to mere­ degree in accounting from Fenn College, Cleve­ ly mail out to local officials and expect land, Ohio. Prior to coming to GAO, Mr. Weisheit tions in a simple, understandable way, held various accounting positions in industry. etc., etc., etc. an adequate response. Instead, we The project team, being aware of again obtained answers over the tele­ these problems, looked for a better way. phone. And, we think we found it. By using a The third questionnaire was compli­ personal touch we obtained a 100.oper­ cated for two reasons. First, we were at­ cent response on three different ques­ tempting to obtain data on such things tionnaires and published the final re­ as the typically required size of houses port in 1 year using only 1 ,100 staff days. and lots in a community. Under many For two of the three questionnaires, community zoning plans, different sec­ we were able, with the assistance of the tions of a community have different size FGMS staff, to design simple yes or no requirements. Second, the needed data and multiple choice questions which had to be obtained from more than one could be sent directly to building code official in a community. To assure that and land development officials. To we obtained data on the same basis make sure we were sending the ques­ from all communities, for this third tionnaires to the right community offi- questionnaire the team actually devel- 54 GAO Review/Winter 1979 The Personal Touch-An Effective Way to Obtain Questionnaire Responses

oped a script to ask the questions and developed standard answers to poten­ tial questions asked by respondents. Coneluslons

Questionnaires are an effective way to gather a large quantity of data in a short time period and at a minimal cost. But, they must be carefully planned to assure an adequate response. In this in­ stance, our universe was only about 200 different respondents, and the more di­ rect, personal approach proved very successful. The type and quality of data collected was excellent, allowing us to make a comprehensive analysis of the impact of local government regulations on new house prices. Our resulting report to the Congress is entitled, "Why Are New House Prices So High, How Are They Influenced By Government Regulations, And Can Prices Be Re­ duced?" (CED-78-101, May 11,1978).

GAO Review/Winter 1979 55 Legislative Developntents

Ninety-FIfth Congress on the Comptroller General under the provisions of Public Law 95-421, Octo­ The 95th Congress adjourned sine ber 5,1978,92 Stat. 927, the Amtrak Im­ die on Sunday, October 15, 1978, at tne provement Act of 1978. conclusion of meetings which had The Comptroller General is to con­ begun the previous day. duct the study in consultation with the It is interesting to observe that of the Secretary of Transportation and the 633 legislative proposals enacted into Interstate Commerce Commission. law during this Congress, 196, or 27 per­ Not later than December 31, 1978, the cent, were signed by the President after Comptroller General is to report to the the October 15 adjournment date. Congress the results of the study. A number of the proposals acted upon in the closing days of the Con­ Inspeetor General gress relate to the functions and duties of the General Accounting Office. It Aetof1978 should be noted that all laws were not The purpose of the Inspector Gen­ available at press time. eral Act of 1978 (Public Law 95-452, October 12, 1978, 92 Stat. 1101) is to re­ Customs Proeedural organize the executive branch of the Reform and Government and increase its economy and efficiency by establishing Offices of SimpUReailonAet Inspector General within the Depart­ of 1978 ments of Agriculture, Commerce, Housing and Urban Development, Inter­ The Customs Procedural Reform and ior, Labor, and Transportation, the Simplification Act of 1978, Public Law Community Services Administration, 95-410, October 3,1978,92 Stat. 888, in­ Environmental Protection Agency, cludes a requirement that the Comp­ General Services Administration, troller General, in cooperation with the National Aeronautics and Space Ad­ Customs Service of the Department of ministration, Small Business Adminis­ the Treasury and the Immigration and tration and Veterans Administration. Naturalization Service of the Depart­ In carrying out the duties and respon­ ment of Justice, study clearance proce­ sibilities delineated by the law, each dures for individuals entering or reen­ Inspector General is required to comply tering the United States. with standards established by the The study is to include an analysis Comptroller General for audits of Fed­ and comparison of the clearance proce­ eral establishments, organizations, pro­ dures employed by other countries for grams, activities, and functions. They individuals entering or reentering that must also take appropriate steps to country. The study is also to include an assure that any work performed by non­ analysis of the usefulness of preentry Federal auditors also complies with the forms completed by travelers when en­ standards established by the Comp­ tering or reentering the United States. troller General. The results of the Comptroller Gen­ The Inspectors General are required eral's study, together with recommen­ to give particular regard to the activities dations for expediting the clearance of the Comptroller General with a view process, including recommendations toward avoiding duplication and for legislation, are to be reported to the insuring effective coordination and Senate Finance and House Ways and cooperation. Means Committees not later than Sep­ tember 1,1979. Civil Servlee Amtrak Improvement Reform Aet of 1978 Aetof1978 The reform of the civil service laws A study of the economic relationship was a significant legislative accomplish­ of the National Railroad Passenger Cor­ ment by the 95th Congress. poration fare structure to the intercity The law (Public Law 95-454, October bus industry is a requirement imposed 13,1978,92 Stat. 1111) is divided into 56 GAO Review/Winter 1979 Legislative Developments nine titles: Title I-Merit System Prin­ Department 01 Delense GAO is to report to the Congress by ciples; Title II-Civil Service Functions, January 1, 1981, and at any time there­ Performance Appraisal; Title III-Staff­ Appropriation after at the discretion of the Comptroller ing; Title IV-Senior Executive Service; Authorization Aet. General, on the findings of this evalua­ Title V-Merit Pay; Title VI-Research, 1979 tion together with recommendations on Demonstration, and Other Programs; actions needed to improve the Adminis­ Title VII-Federal Service Labor-Man­ Public Law 95-485, October 20,1978, tration's performance. agement Relations; Title VIII-Grade 92 Stat. 1611, Department of Defense Also, GAO is to provide for an inde­ and Pay Retention; and Title IX-Mis­ Appropriation Authorization Act, 1979, pendent and continuing evaluation of cellaneous. includes a provision that funds author­ the programs under sections 7(i), 7(j), The responsibilities of the GAO with ized by the act to provide relief to con­ and 8(a) of the Small Business Act, in­ respect to merit system principles are tractors in connection with certain con­ cluding full information on, and analy­ delineated in a new section 2304 of title tracts for the procurement for the Un ited sis of, the character and impact of man­ 5, United States Code: States of landing helicopter assault ves­ agerial assistance provided, the loca­ (a) If requested by either House of sels (LHA), DD-963 vessels, and SSN688 tion, income characteristics, and extent the Congress (or any committee nuclear attack submarines, and paid by to which private resources and skills thereof), or if considered neces­ the United States to such contractors, be have been involved in these programs. sary by the Comptroller General, subject to audit and review by the Comp­ The evaluation together with any recom­ the General Accounting Office troller General as he determines neces­ mendations deemed advisable by the shall conduct audits and reviews sary to ensure that such funds are used Comptroller General are to be reported to assure compliance with the only in connection with the contracts to the Congress by January 1,1981, and laws, rules, and regulations gov­ and to ensure that the prime contractors at any ti me thereafter at the discretion of erning employment in the execu­ concerned do not realize any total com­ the Comptroller General. tive branch and in the competitive bined profit on the contracts. service and to assess the effec­ There is a prohibition against tiveness and soundneSs of Feder­ providing relief to these contractors to Comptroller General al personnel management. the extent that a total combined profit on Annuity Adjustment (b) The General Accounting Office the contracts would result, as Aetol1978 shall prepare and submH an an­ determined by the Comptroller General. nual report to the President and The Comptroller General is to keep One of the legislative recommenda­ the Congress on the activities of the appropriate committees of the Con­ tions made by the Comptroller General the Merit Systems Protection gress currently informed regarding the became law on October 25, 1978, with Board and the Office of Person­ expenditure of funds and submit to the the enactment of the Comptroller Gen­ nel Management. The report shall Congress annually, until the completion eral Annuity Adjustment Act of 1978, to include a description of­ of the contracts, a written report on the provide for cost-of-living adjustments in (1) significant actions taken by status of the contracts, on the expendi­ the annuity of a reti red Comptroller Gen­ the Board to carry out its fu nc­ tures of the funds, and on the results of eral, and for other purposes. (Public Law tions under this title and the audits and reviews conducted. 95-512, 92 Stat. 1799) (2) significant actions of the Of­ The legislation amends the Budget fice of Personnel. Manage­ Small Business and Accounting Act of 1921 to make this ment, including an analysis of Programs change and certain other changes to whether or not the actions of conform the Comptroller General an­ the Office are in accord with Public Law 95-507, October 24,1978, nuity benefits with those provided Fed­ merit system principles and 92 Stat. 1757, to amend the Small eral judges. free from prohibited person­ Business Act and the Small Business nel practices. Investment Act of 1958, requires the EthIes In Government The provisions of 5 U.S.C. 1205(d)(2) GAO to submit to Congress not later require the Merit Systems Protection than June 30, 1980, a report which, with Aet 01 1978 Board to certify to the Comptroller respect to provisions of paragraphs (1) General that a compliance order has (B) and (2) of section 8(a) of the Small Public Law 95-521, October 26,1978, been issued and no payment should be Business Act regarding procurement 92 Stat. 1824, Ethics in Government Act made out of the Treasury of the United contracts and performance bonds,shall of 1978, is divided into seven titles, asfol­ States for any service specified in the evaluate the implementation of the pro­ lows: Title I-Legislative Personnel Fi­ order. visions. nancial Disclosure Requirements; Title The Comptroller General is required The General Accounting Office is to II-Executive Personnel Financial Dis­ to review from ti me to ti me on a selected evaluate actions taken by the Adminis­ closure Requirements; Title III-Judi­ basis agency performance appraisal tration with respect to the placement of cial Personnel Financial Disclosure Re­ systems and performance appraisal subcontracts by business with small quirements; Title IV-Office of Govern­ systems in the Senior Executive Service business concerns located in areas of ment Ethics; Title V-Post Employment to determine the extent to which the high concentration of unemployed or Conflict of Interest; Title VI-Amend­ systems meet the requirements of the low-income individuals, with small ments to Title 28, United States Code; law. businesses owned by low-income indi­ and Title VII-Senate Legal Counsel. Findings are to be periodically viduals, and with small businesses eligi­ Before November 30,1980, and regu­ reported to the Office of Personnel ble to receive contracts pursuant to sec­ larly thereafter, the Comptroller Gen­ Management and to the Congress. tion 8(a) of the. act. eral is to conduct a study to determine GAO Review/Winter 1979 57 Legislative Developments

whether title I is being carried out effec­ tion in accordance with rules and regula­ mine the manner in which personal ser­ tively and whether timely and accurate tions prescribed by the Comptroller vices of volunteers should be included in reports are being filed by individuals General. determining the level of non-Federal subject to this title. For any fiscal year during which financial support. The study is to include Within 30 days after completion of the Federal funds are available to finance proposed valuation standards. study, the Comptroller General is to any portion of the Corporation's grants Upon completion, the study and the transmit a report to each House of Con­ or contracts, the General Accounting proposed valuation standards are to be gress containing a detailed statement of Office, in accordance with rules and submitted to the Comptroller General his findings and conclusions, together regulations prescribed by the Comp­ for approval. with his recommendations for such leg­ troller General, may audit the grantees islative and administrative actions or contractors of the Corporation. deemed appropriate. The first study is to White House Personnel include the Comptroller General's find­ Health Malntenanee The purpose of Public Law 95-570, ings and recommendations on the November 2, 1978, 92 Stat. 2445, is to feasibility and potential need for a re­ Organization Amend­ ments of 1978 clarify the authority for employment of quirement that systematic random personnel in the White House Office and audits be conducted of financial dis­ the Executive Residence at the White closure reports filed under the title, in­ Public Law 95-559, November 1,1978, 92 Stat. 2131, amends the Public Health House, and to clarify the authority for cluding a thorough discussion of the employment of personnel by the Presi­ type and nature of audits that might be Service Act to revise and extend the pro­ gram of assistance for health mainte­ dent to meet unanticipated needs. conducted; the personnel and other With respect to assistance and ser­ costs of audits; the value of an audit to nance organizations. A new subsection (d) is added to sec­ vices for the President and the Vice Pres­ Members, the appropriate House and identthe su ms appropriated are to be ac­ Senate committees, and the public; and, tion 1314 ofthe Public Health Service Act which requires the Comptroller General counted for solely on the certificate of if conducted, whether a governmental or the President and Vice President, except nongovernmental unit should perform to evaluate the adequacy and effective­ ness of the policies and procedures of that, with respect to such expenses, the the audits, and under whose super­ Comptroller G'eneral may inspect nec­ vision. the Secretary of Health, Education, and Welfare for the management of the essary records relating to any such Title II with respect to executive per­ expenditures solely for the purpose of sonnel financial disclosure provides the Health Maintenance Organization grant and loan programs and the adequacy of verifying that all the expenditures related Comptroller General access to finan­ to certain delineated expenses. The cial disclosure reports filed under the the amounts of assistance available under the programs. Comptroller General is to certify to the title for the purposes of carrying out his Congress the fact of the verification. statutory responsibilities. The results of the evaluation are to be The law establishes an Office of Sen­ reported to Congress not later than May ate Legal Counsel. The Senate Legal 1,1979. Federal Government Counsel is required to advise, consult, Pension Plans and cooperate with, among others, the Pnblie Teleeommuni­ Comptroller General and the General eatious FinaneinJ: Aet Public Law 95-595, November-4, 1978, Accounting Office. None of the re­ of 1978 92 Stat. 2541, requires that the Comp-. sponsibilities and authority assigned to troller General provide for an audit with the Counsel are to be construed to affect Public Law 95-567, November2, 1978, respect to pension plans for Federal offi­ or infringe upon any functions, powers, 92 Stat. 2405, the Public Telecommuni­ cers and employees. or duties of the Comptroller General. cations Financing Act of 1978, relating to The law amends the Budget and Ac­ T.he General Accounting Office is long-term financing for the Corpora­ counting Procedures Act of 1950 to pro­ considered in the legislative branch for tion for Public Broadcasting, amends vide for the audit and to require that an finanCial disclosure purposes. the Communications Act of 1934 to re­ annual report, including a financial quire that 1 year after the effective date, statement and an actuarial statement, be Housing and Communi­ the Corporation, in consultation with the furnished to the Congress and the Comptroller General, will develop Comptroller General with respect to the ty Development accounting principles which shall be plans. Amendments of 1978 used uniformly by all public telecom­ munications entities receiving funds, Finaneiallnstitutions Public Law 95-557, October 31,1978, taking into account organizational dif­ Regulatory and 92 Stat. 2080, Housing and Community ferences among various categories of Interest Rate Control Development Amendments of 1978, entities. Aetof1978 contains at title VI the Neighborhood Re­ Each public communications entity investment Corporation Act. receiving funds is to undergo an annual Public Law 95-630, November 10, This title establishes a National Neigh­ audit by independent certified or li­ 1978,92 Stat. 3641, the Financiallnstitu­ borhood Reinvestment Corporation to censed public accountants in accord­ tions Regulatory and Interest Rate Con­ continue the work of the Urban Rein­ ance with auditing standards developed trol Act of 1978, has as its purposeto ex­ vestment Task Force. by the Corporation in consultation with tend the authority for the flexible regula­ Section 607 provides for aud it, at least the Comptroller General. tion of interest rates on deposits and ac­ once every 3 years, by the GAO of the The Public Broadcasting Corpora­ counts in depository institutions. finanCial transactions of the Corpora- tion is also to undertake a study to deter- The Federal Credit Union Act is

58 GAO Review/Winter 1979 Legislative Developments

amended to subject the financial trans­ actions of the National Credit Union Ad­ ministration to audit on a calendar year basis by the General Accounting Office. Section 117 of the Accounting and Auditing Act of 1950, as amended by the Federal Banking Agency Act (Public Law 95-320), is further amended to pro­ vide that the Comptroller General shall make, under such rules and regulation as he may prescribe, audits ofthe Finan­ cial Institutions Examination Council. The Federal Deposit Insurance Act, amended by the addition of a new sec­ tion 26 with respect to conversion of mu­ tual savings banks, requiresthattheFed­ eral Deposit Insurance Corporation and the Federal Savings and Loan Insur­ ance Corporation mutually agree on what is to be treated as "losses incurred by it which arise outof losses incurred by the converting bank prior to conver­ sion," and failing such agreement, the GAO is to prescribe the meaning to those terms. Title XVIII-National Credit Unity Central Liquidity Facility amends the Federal Credit Union Act to establish the Facility and subject it to audit by the Comptroller General under rules and regulations he may prescribe.

GAO Review/Winter 1979 59 ReDeetions

Twenty-five years ago-even before compilation of comments received there was a STAFF BULLETIN ora GAO from 100 members of the GAO staff REVIEW to report such happenings­ with suggestions for improvement Mr. Lindsay C. Warren, Comptroller in the proper and effective use of General, bid farewell to his staff at a English. meeting on April 29, 1954. A picture of • Copies of the Code of Ethics for that historic occasion is shown below. Government Service, which was

Twenty years ago in the STAFF BUL­ established by House Concurrent LETIN (predecessor of THE GAO RE­ Resolution No. 175 of the 85th Con­ VIEW), it was reported that: gress, were distributed to GAO • The 10th Annual Progress Report staff. under the Joi nt Program to Improve • The first of a series of report train­ Accounting in the Federal Govern­ ing courses was given to GAO ment (now called the Joint Finan­ Washington staff; sessions were cial Management Improvement later extended to the regional of­ Program) was released on January fices. 9, 1959, by the Comptroller Gen­ • Also the first electronic data proc­ eral, the Secretary of the Treasury, essing course for managers was and the Director ofthe Bureau ofthe given to upper level staff by the Civil Budget. A summary of the report Service Commission, assisted by was printed in the February 1959 the Accounting and Auditing Policy issue of the STAFF BULLETIN. Staff of GAO. • In the Los Angeles Times for Nov­ • James D. Martin, director, Office of ember 25, 1958, Raymond Moley, Program Planning, and Robert J. noted columnist, referred to the Ryan, Jr., assistant director, Finan­ Comptroller General as "The Most cial and General Management I mportant of Auditors" and "the best Studies Division, joined GAO. of all who have held the office si nce • Werner Grosshans, associate di­ it was created 38 years ago." He re­ rector, Logistics and Communica­ ferred to Mr. Campbell as having tions Division, left for military ser­ gone to the root of the trouble and vice from San Francisco regional through some of his reports "has office. tried to getthe barn door locked be­ And 10 years ago in the Winter 1969 fore the horse has been stolen." edition of THE GAO REVIEW, you'll see • In answer to a request from the Na­ that: tional Council of Teachers of • The Comptroller General released English, GAO sent them a 52-page a revised statement of basic princi- 60 GAO Review/Winter 1979 Reflections

pies and concepts for the guidance of Federal agencies in the design and operation of their internal audit systems. • Comptroller General Staats testi­ fied before the Subcommittee on Economy in Government of the Joint Economic Committee on competition in Federal procure­ ment and on contractor profits. • John P. Gibbons was designated as deputy director of the Claims Divi­ sion. • Frank C. Conahan, associate direc­ tor in International Division, was designated as an assistant director in that division. • Paul deLassus, now assistant man~ ager of the Dallas regional office, was designated assistant regional manager of New Orleans. • Fred Dziadek, assistant director in the International Division, joined GAO. • Edwin C. Eads, assistant director in the International Division, was des­ ignated assistant director in, the De­ fense Division. • Donald J. Horan, deputy director, Logistics and Communications Division, was appointed as assist­ ant director in the Office of Policy and Special Studies. • Walter 8. Hunter, assistant director in the Community and Economic Development Division, was desig­ nated as assistant director in the Civil Division. • Charles P. McAuley, assistant di­ rector in the General Government Division, was designated assistant director in the Civil Division. • William L. Martino, assistant direc­ tor in the Community and Econom­ ic Development Division, was des­ ignated as assistant director in the International Division. • Robert F. Keller, general counsel, was appointed a member of the Board of Advisers of the National Contract Management Associa­ tion, a nonprofit organization de­ voted to the furtherance of educa­ tion and to the recognition of con­ tract management as a profession. • Walter C. Hermann, Jr., manager of the Detroit regional office, received an award froin the American Insti­ tute of Certified Public Accountant­ ants for submitting a problem which was used in the November 1968 CPA examination.

GAO Review/Winter 1979 GAO Staff Changes

wnUam J. Anderson Brian P. Crowley

William J. Anderson was designated Brian P. Crowley was designated as­ director, Office of Policy, on October 1, sociate director, Federal Personnel and 1978.lnthis position, Mr. Anderson isre­ Compensation Division, effective Octo­ sponsible for policy formulation, guid­ ber 30,1978. In his new capacity, he will ance, and review of all GAO functions. be responsible for directing GAO's work Mr. Anderson served in the Army as a on pay and retirement systems for Fed­ Russian linguist from August 1948 to eral civilian employees and members of July 1952. He received a B.S. in foreign the military services, as well as morale, service in international commerce, cum welfare, and recreation programs for laude, from Georgetown University, Federal employees. School of Foreign Service, in 1956; a B.S. Mr. Crowley has served as the assis-. in business administration, cum laude, tant director in charge oftheAgriculture from Georgetown University, School of audit site in the Community and Econ­ Business Administration, in 1961;and an omic Development Division since May M.B.A. from the American University in 1976. Before that, hewas in charge of the 1966. In 1973, he attended the Executive Environmental Protection Agency audit Development Program at Cornell Uni­ site. versity. Mr. Crowley graduated cum laude Before joining GAO, Mr. Anderson from Fairfield University, Fairfield, worked in public and corporate ac­ Connecticut, in 1962 and received a counting. Since he joined GAO in 1962, B.B.A. in accounting. He is a CPA (Vir­ he has had diverse assignments, includ­ ginia) and a member of the American ing responsibilities for audits at the Na­ Institute of Certified Public Account­ tional Aeronautics and Space Adminis­ ants, the National Association of Ac­ tration; U.S. Forest Service; Atomic En­ countants, and the Association of Gov-' ergy Commission; the Far East Branch, ernment Accountants. Mr. Crowley has International Division, in Honolulu; the received the Wall Street Journal Award U.S. Postal Service; associate director in (1962) for scholastic achievement, the the Manpower and Welfare Division, and Virginia Society of Certified Public Ac­ in June 1975 he was designated deputy countants Gold Medal Award (1964), the director of the General Government Di­ GAO Career Development Award vision. During a part of this period, Mr. (1970), and the GAO Distinguished Ser­ Anderson was also a part-time account­ vice Award (1977). ing instructor at Montgomery College. Mr. Crowley participated in the Civil Mr. Anderson is a member of the Service Commission Intergovernmental National Association of Accountants Affairs Fellowship Program in 1971. He and Association of Government Ac­ also attended the Senior Executive Edu­ countants. He received the GAO Merito­ cation Program at the Federal Execu­ rious Service Award in 1967, a superior tive I nstitute from April to May 1978. performance award in 1968, and the Dis­ tinguished Service Award in 1975. 62 GAO Review/Winter 1979 GAO Staff Changes

1978, when he joined Schnader, Harri­ son, Segal, and Lewis as a partner in the Washington office. Mr. Dembling received his A.B. cum laude and with special honors in eco­ nomics and his MA from Rutgers Uni­ Ifersity where he had served as graduate assistant and teaching fellow. He re­ ceived his J.D. from GeorgeWashington University Law School, serving asan edi­ tor of the Law Review. When Mr. Dembling entered the Fed­ eral service he occupied various indus­ trial relations positions. Later, he served successively as special counsel, legal advisor, and general counsel with the National Advisory Committee for Aero­ nautics. In the latter capacity, he was a Daniel F. Stanton principal drafter of the Administration Dennis J. Dugan bill which became the National Aero­ Daniel F. Stanton was designated Dennis J. Dugan was designated chief nautics and Space Act of 1958. deputy director of the General Govern­ economist of the General Accounting Upon the formation of NASA, Mr. ment Division, effective October 10, Office and associate director, senior Dembling was appointed assistant gen­ 1978. Formerly associate director with level, of Program Analysis Division, ef­ eral counsel. In addition, he served as the General Government Division, his fective September 18, 1978. chairman of the NASA Board of Con­ responsibilities included directing the Mr. Dugan was formerly chairman of tract Appeals. When he was appointed audit and investigative work for law en­ the Department of Economics at the director, Office of Legislative Affairs, he forcement and cri mi nal justice activities. University of Notre Dame. He joined the continued to serve as vice chairman of Mr. Stanton served in the U.S. Army faculty at the University of Notre Dame in the NASA Inventions and Contributions from 1954 to 1956. He graduated from 1966, and had been chairman 3% years Board. From 1963 until 1967, he served the University of South Carolina in 1959, before coming to the General Account­ as deputy general counsel, when hewas receiving a B.S. with a major in account­ i ng Office in Augus.: 1974. He was also di­ named general counsel, occupying that ing. He is a CPA (Virginia) and a mem­ rector of Research and Data Analysis on ber of the American Institute of Certified position until September 1969, whe~ he the Gary Income Maintenance Experi­ was appointed deputy associate Public Accountants and the National ment from 1971 to 1973. Association of Accountants. administrator of NASA. In his 8 years at the University of Notre 1964 1969, In 1971 Mr. Stanton attended the From to Mr. Dembling also Dame, Mr. Dugan taught undergraduate Harvard Program for Management served as a member olthe United States and graduate courses. His areas of spe­ Development. He received tlie GAO delegation to the U.N. Legal Subcom­ cialization are macro-economics and Meritorious Service Award in 1967, the mittee in the drafting of the Outer Space, econometrics. He served as associate Career Development Award in 1971 ,and Astronaut, and Liability Treaties. chairman and director of the Seminar the Distinguished Service Award in He is the recipient of the Army's Civil­ Program during those 8 years. Mr. 1977. ian Meritorious Award and NASA's Dugan also served on numerous colle~e highest. award, the Distinguished Ser­ and university councils and commit­ vice Medal, and the National Civil Ser­ tees. vice League Award. He was elected to Mr. Dugan, a Phi Beta Kappa, holds a the National Academy of Public Admin­ B.S. in mathematics from Creighton istration in 1973. University and a PH.D. in economics Mr. Dembling is a member of the Dis­ from Brown University where he was a trict of Columbia bar and of numerous Woodrow Wilson Fellow and a Ford other organizations. Fellow. In 1968 and 1969, Mr. Dugan was an Economic Policy Fellow at the Brook­ ings Institution in Washington, D.C. He has published numerous articles in the economic literature and has written three books. His research has generally been in the quantitative analysis of hu­ man resources. Mr. Dugan received the GAO Merito­ rious Service Award in 1975. He is a member of the American Economic Paul G. DembUug Association and the Econometric So­ ciety. He is also Adjunct Professor of Mr. Dembling was general counsel of Public Administration at American Uni­ the General Accounting Office from versity in Washington, D.C. November 17, 1969, to November 3, GAO Review/Winter 1979 63 GAO Staff Changes

MDton J. Soeolar

Milton J. Socolar was appointed gen­ eral counsel on November 6, 1978. Mr. Socolar served in the U.S. Navy from 1943 to 1946. He joined the Gen­ eral Accounting Office in 1952 as an au­ ditor and then transferred to the Office of the General Counsel in 1956. He served in the Paris office of the European branch from 1954 to 1959 and from 1963 to 1964. During 1962 he served as assist­ ant general counsel for the Bureau of Public Roads, Department of Com­ merce. In 1968 he was designated as a special assistant to the general counsel, and in 1970 he was appointed assistant general counsel for civilian personnel. In 1971 he was appointed deputy general counsel. In 1950 he received a B.S. in business and public administration from the University of Maryland and an LL.B. de­ gree from The George Washington Uni­ versity, in 1954. He is a CPA and is ad­ mitted to practice before the District of Columbia Bar, the District Court of Ap­ peals of the District of Colum bia, and the Bar of the Supreme Court of the United States. Mr. Socolar received a Meritorious Service Award in 1961 and the Distin­ guished Service Award in 1975.

64 GAO Review/Winter 1979 Other Staff Changes

NEW ASSISTANT DIRECIORS Community and Economic Development Division John L. Vialet Energy and Minerals Division Thomas E. Melloy Carl J. Myslewicz Federal Personnel and Compensation Division Thomas E. Eickmeyer Terry A. Kremer Financial and General Management Studies Division John J. Adair General Government Division Howard G. Rhile NEW SENIOR ATrORNEY Office of General Counsel Andrew K. Gallagher NEW ASSISTANT REGIONAL MANAGER Washington Regional Office Robert J. McArter

GAO Review/Winter 1979 65 New Staff Mentbers

The following new professional staff members reported for work during the period August 16, 1978, through November 15, 1978. Energy and MInerals Killgore, Andrew N. American University Division Federal Personnel and Pleasure, Alfred B. Department of the Compensation Air Force Division Human Resourees Gregory, Herbert E. Russell Sage College Division Nee1, Phillip E. Kansas State University Loglstles and Holmes, Noble L. University of North Carolina Communleat1ons Huang, Philip J. Yale University Division Proeurement and Christiansen, Rodger A. Utica School of Commerce Systems Aequlsltlon Grant, Carl G. Howard University D!rision Program Analysis Brunner, Lawrence P. Johns Hopkins University Division Kopff, Judy G. Department of Housing and Urban Development OUlee or General Baskin, Fran F. University of Maryland Counsel Kasdan, Alan R Yale Law School Laverty, Jessica H. Marshall-Wythe School of Law College General Serdeesand Altman, Elnora U.S. Secret Service Controller Burrlson, William J. Howard University Doyle, Jean M. Bloomfield College Moten, Veronica T. Federal City College Offlee or Personnel Leland, Richard D. Department of Navy Development and Lewis, Jean R. U.S. Civil Service Serdees Commission Martin, Linda R. NASA, Goddard Space Flight Center Thompson, David C. U.S. Civil Service Commission

66 New Staff Members

REGIONAL OFFICES Cluelunati Meadows, Daniel J. Eastern Kentucky University Dallas Ares, Michael D. University of Wisconsin McDonald, Gregory J. Portland State University Moran, Lisa K Mississippi University for Women Atlanta Cooper, Joyce E. Florida State University McKinney, Hewitt Q Florida State University Los Angeles Darche, Svetlana University of Los Angeles Yerkes, Elinor R. University of California New York Kogerl, Robert E. University of Maryland Philadelphia Morley, Lorna J. Department of Transportation Seattle Alleman, Ira T. Pennsylvania State University Wash1ugton Flo, Amanda E. Atlantic Union College Glick, Jeffrey A. University of Chicago McPoland, Michael E. University of Pittsburgh

67 Professional Aetivlties

Offlee of the Milton J. Socolar, deputy general Comptroller General counsel, addressed: The American University Washington The Comptroller General, Elmer B. Semester Program on "The Role of Staats, addressed the following groups: GAO," Sept. 13. 23rd Annual Conference of the Asso­ The Department of Transportation ciation of Records Managers and Procurement Conference on"TheRole Administrators, "Records Manage­ of GAO in Federal Procurements,'" ment-A Blueprint for Tomorrow," Houston, Nov. 2. Washington, D.C., Oct. 9. Seymour Efros, assistant general Conference on inflation sponsored by counsel, spoke before the DefenseArmy Senator Charles H. Percy, "Improv­ Materiel Development and Readiness ing Productivity: An Important Tool in Command Legal/Acquisition Confer­ the Control of Inflation," Chicago, ence on "Protests Before the Comp­ Oct. 18. troller General," Orlando, Oct. 26. The Construction Industry Manufac­ Robert L. Higgins, assistant general turers Association, "The Work of the counsel, spoke before the Department Comptroller General and His Assist­ of the Navy annual labor relations con­ ance to the Congress," Houston, Nov. ference on "The GAO and Arbitration," 10. Stroudsburg, Pa., Sept. 26. Vincent A. LaBella, deputy assistant Seventh Annual Conference of the general counsel, spoke on "Problems of I American Association of Spanish­ Davis-Bacon As Seen by the Govern­ Speaking Certified Public Account­ ment," before a Government Contracts ants, "Development of Professional Seminar sponsored by Loyola Univer­ Accounting Standards for Grants and sity Law School and Associated Builders Contracts," Las Vegas, Nov. 17. and Contractors, Inc. of Louisiana, New Financial Accounting Standards Orleans, Nov. 3. Board Public Hearing on "Conceptual Michael J. Boyle, attorney-advisor. Framework for Financial Accounting spoke before the Defense Personnel and Reporting: Objectives of Finan­ Support Center on "Problems in Formal cial Reporting by Nonbusiness Or­ AdvertiSing," Philadelphia, Oct. 6. ganizations," Washington, D.C., Oct. Marilynn M. Eaton, attorney-adviser, 12. spoke on "Mistake in Bid," before the Tactical Air Command working confer­ ence, Langley Air Force Base, Hampton, Offlee of the Va., Nov. 8. General Counsel

Paul G. Dembling, general counsel, Offlee of Congressional I add ressed the followi ng grou ps: Relations Procurement and Finance Council of Martin J. Fitzgerald, di rector, spoke on the Aerospace Industries Association the role of the GAO before the Capitol on "Current Developments," Boston, Hill Workshop fortheNaval Facilities En­ Oct. 3. gineering Command, Sept. 21, and the Semi-annual meeting of General Elec­ Washington Seminar for students of tric Company lawyers on "Opera­ American University, Sept. 27. He partic­ tions of GAO," Oct. 26. ipated in a brainstorming session at the i Workshop on Congressional Oversight, Meeting of all attorneys of the sponsored by the Congressional Re­ Commerce Department and subsidi­ search Service, Dec. 1. ary organizations on "The Roleof GAO Samuel W. Bowlin, legislative adviser, in Federal Government," Oct. 30. spoke before the Civil Service Commis­ National Assistance Management sion's Congressional Operations Association on "Issues and Seminar for Managers on the role of Challenges Facing the Federal Grant GAO, Oct. 2. and Assistance System," Nov. 1. T. Vincent Griffith, legislative attorney, 68 GAO Review/Winter 1979 Professional Activities

spoke on congressional oversight and Frank Subalusky, assistant director, American Association for the Ad­ the operation of GAO before the Capitol and Ken Schmidt, supervisory auditor, vancement of Science Congressional Hill Workshop for the Department of En­ spoke on "Unwarranted Delays by the Science Fellows on GAO's role in the ergy, Sept. 13 and participated in the Department of Transportation to I m­ energy area, Sept. 13. Congressional Research Service's prove Light Truck Safety," before the In­ Workshop on Congressional Oversight, dustrial College of the Armed Forces, Flnanelal and General Dec. 1. Oct. 6. M. Thomas Hagenstad, legislative ad­ Bill Gahr, assistant director, spoke on Management Studies viser, gave talks on the role of GAO be­ food data needs at the National Acad­ Division fore the Civil Service Commission's In­ emy of Sciences' Committee on Food stitute in the Legislative Function, Sept. Consumption Patterns, Oct. 11. Donald L. Scantlebury, director: 14 and 28, and the Capitol Hill Work­ Jack Brock, food staff management Spoke on computer fraud at the shop forthe Navy, Oct. 5. analyst, participated in a seminar of the Southeastern Intergovernmental PeterJ. McGough, legislative adviser, National Academy of Sciences Food Audit Forum, Louisville, Ky., Sept. 29. spoke on GAO's role before the Capitol and Nutrition Board Committee on Con­ Spoke on "Financial Management in Hill Workshop for the Army, Sept. 29. sumption Statistics, Nov. 8. the Public Sector" at Columbia Uni­ Ed Schaefer, food staff agricultural versity, New York, Oct. 16. Hey economist, was interviewed on trends in Omee of Po U.S. farm structure by the CBS Radio Spoke on "Current Development in , Audit Standards" at the AGA-MFOA William J. Anderson, director, ad- Network, Nov. 13. Conference on Emerging Issues, dressed the following groups: Joseph Maranto, supervisory auditor, is serving as a memberon the Interagen­ Detroit, Oct. 31. Industrial College of the Armed cy Committee reviewing the planning, Harold L. Stugart, deputy director, Forces on "Executive Branch Reor­ managing, and reporting course for in­ spoke on GAO and its work in the De­ ganizations-Symptom or Solution?" ternal audits to be given at the Inter­ partment of the Army and other agen­ on Oct. 10. Hannah Frankel of General agency Auditor Training Center in cies, before the graduating class of the Government Division assisted Mr. Washington, D.C. Army Inspector General orientation Anderson in his presentation. Bobby Moore, audit manager, was in­ course, Nov. 1. Civil Service Commission's executive terviewed on Nov. 20 by Doug Terry and Walter Anderson, associate director: seminar on "GAO's Interest and In­ Janet Regan of Capital Broadcast News Spoke on "The Future of Computers volvement in Public Program Man­ concerning our recent report entitled As Seen From the Year 1954" at a con­ agement," Oak Ridge, Tenn., Aug. 28. "Federal Management Weaknesses Cry Out for Alternatives to Deliver Pro­ ference on Computer Reminiscences National Association of Accountants grams and Services to Indians to Im­ '54, sponsored by the Smithsonian seminar on "Effective Writing and Re­ prove Their Quality of Life," (CED-78- Institution, Washington, D.C., Oct. 23. porting," Rosslyn, Oct. 25. 166, Oct. 31, 1978). Participated as a panelist in the ses­ sion on ADP Applications and Data Civil Service Commission's executive Files at the National Bureau of Stand­ seminar on "GAO's Role in the Admin­ Energy and MInerals ards workshop on Audit and Evalua­ istration of Public Policy," Oak Ridge, tion of Computer Security II, Miami Tenn., Nov. 8. Division Beach, Nov. 27-30. J. Dexter Peach, director, addressed Kenneth Pollock, assistant director: the following groups: OfRee of Ubrar1an Spoke on "Controls in Development Terry Appenzellar, chief, Law Library The Offshore Oil Conference of the of Computer Systems," at the Asso- ' Section, spoke on "Non-legal Data Energy Bureau, Inc., on "GAO and the ciation of Department of Energy's Bases in the Private Law Library Con­ OCS," Dallas, Nov. 3. System Designers, Operators and text: Equipment and Systems," to the Programmers conference, Las Vegas, The Colorado Banker-CPA confer­ Oct. 17. American Association of Law Libraries ence on ''The Implications of Federal annual conference, in Rochester, N.Y., Energy Activities forthe Rocky Moun­ Participated in a CICA-sponsored June25. tain Area," Denver, Nov. 15. symposium on "Computers and Au­ She also gave a demonstration on re­ diting," Toronto, Nov. 6-8. Douglas L. McCullough, deputy di­ fining JURIS search strategy to the On­ rector, addressed the International Re­ Spoke to the Federal Audit Execu­ Line User's Group, College Park, Md., search Center for Energy and Economic tives Cou ncil's Subcommittee on ADP Sept. 29. Development, University of Colorado, auditing at a special meeting in Wash­ Marju Parming, chief, Library Ser­ on "Energy in the 1980s: Conflict or Co­ ington on the impact of OMB Circular vices Section, spoke on "Research in operation," Oct. 16. A-71 , Transmittal Memo No.1, on Progress: A Case Study of an I nforma­ agency audit work, Nov. 5. tion Search at GAO," attheLockheedln­ James Duffus III, assistant director, formation System's DIALOG Update addressed the following: Was a panelist in the workshop ses­ seminar, Kansas City, June 9. sion in Managerial and Organiza­ Capitol Hill Workshop for Nuclear tional Vulnerabilities at the National Community and Regulatory Commission executives Bureau of Standards second work­ on the role of the General Accounting shop on computer system vulnerabil­ Eeonomie Development Office as a congressional oversight ity and controls, Miami Beach, Nov. Division agency, Sept. 22. 28-30. GAO Review/Winter 1979 69 Professional Activities

George L. Egan, Jr., assistant d irector: Comptrollers, and Treasurers, New GAO's study of five computer centers Orleans, Nov. 14. in a workshop sponsored by the Insti­ Spoke on "Financial Audits of Fed­ Robert J. Ryan, assistant director: tute for Software Engineering in erally Assisted Programs," at the As­ Washington, D.C., Aug. 28-30. Served as Program Chairman for an sociation of Government Account­ Richard E. Nygaard, audit manager, ants Seminar, Hawaii Chapter, Sept. AGNMFOA conference on Emerg­ spoke on GAO and its work in the 28and 29. ing Issues-Government Account­ Department of the Army and other ing and Auditing, in Detroit, Oct. 30- S poke to the Atlanta chapter ofthe As­ agencies, before the graduating class 31. sociation of Governmental Account­ of the Army Inspector General Orien­ ants on "Current Status of the Inspec­ Served as an instructor for a group of tation Course, Oct. 19. tor General Bill-H.R. 8588," Atlanta, 45 accountants and auditors in Puerto Peter J. Lemonias, management audi- Sept. 21. Rico, Nov. 6-7. tor: W.A. Broadus, Jr., assistant director, Conducted two 1-day seminars on Spoke on the use of productivity in the presented testimony before the State , "Financial Economy and Efficiency, budget process at the Air Force Pro­ Board of Accountancy of Kentucky on and Program Results Audit Guide­ ductivity Conference, Alexandria, a proposed amendment to regula­ lines."This seminar was sponsored by Oct. 3. tions on granting CPA certificates, the Association of Government Louisville, Oct. 6. Spoke on "Public Sector Productiv­ Accountants in cooperation with the Herbert R. Martinson, assistant direc­ ity," before the Northern Virginia . University of Hawaii College of Con­ tor, presented a paper entitled "The Chapter, American Society for Public tinuing Education and Community Use of Economic Analysis Tech­ Administration, Fairfax, Oct. 11. Service, Honolulu, Sept. 28. niques in Support of Congressional Venkareddy Chennareddy, econo-. Spoke to the Maryland Association of Decisionmaking," at the Joint Nation­ mist: Certified Public Accountants, on al Meeting of the Operations Research Presented a paper entitled "The Dy­ "Federally Assisted Programs-Role 'SOCiety of America and the Institute of namics of Demand Response: An of the Public Accountant," Silver Management, Los Angeles, Nov. 15. Econometric Application to Monthly Spring, Oct. 12. Otis C. Luttrell, supervisory auditor, Loan Volume of Various Commodities spoke on GAO and its relations with James R. Watts, assistant director: Pledged to the Commodity Credit the Army Inspector General staff at Corporation of U.S. Government," at Participated on a panel entitled "ADP Army Inspector General Orientation the annual conference of the Atlantic Standards-Issues and Answers," at Courses, Oct. 6 and Nov. 17. Economic Society, Washington, D.C., the Federal Computer Conference in Tom O'Connor, supervisory auditor, Oct. 11-14. Washington, D.C., sponsored by spoke on financial accounting and Steven Merritt, audit manager, Datamation magazine and Federal reporting by regulated industries to chaired the panel session on Software Education Programs, Inc., Nov. 8. the Inter-Regulatory Accounting Conversion at the Federal Computer Committee at the Brookings Institute, Spoke on "ADP Standards and Long­ Conference, Washington, D.C., Nov. 9. Sept. 19. . Range Planning," at a seminar for the Nelson L. Miller, audit manager, par­ James F. Loschiavo, supervisory Navy's Steering Committee for ADP ticipated in a Management Workshop i mathematician, spoke on "Identifying Users in Washington, D.C., Nov. 30. on Operations at the Federal Compu- ' and Serving the Total Needs of Older George Sotos, assistant director, ter Conference, Washington, D.C., Americans in the Community," at the participated in a panel discussion on Nov. 7-9. "Policy and Organization," at the Fed­ Annual Gerontological Society erpl Computer Conference in Wash­ Scientific Meeting, Dallas, Nov. 20. ington. He spoke on "Factors Influ­ William C. Kennedy, supervisory sys­ Joint Finaneial encing the Organization Structure for tems accountant, was appointed Management Improve-: ADP," Nov. 8. Chairman of the Association of Gov­ ment Program . Earl Wysong, assistant director, made ernment Accountant's National Research Board. The Board publish­ a presentation on "Anticipated Susumu Uyeda, executive director: Changes in Payroll Systems Require­ ed an independent research study on ments," at the Military Services An­ Zero Base Budgeting which was re­ Spoke on "What's New in Financial nual Commanders' Conference viewed by the Washington Post, Management in the Federal Govern­ Information Exchange Program in Aug. 7. ment," before the meeting of the New: Indianapolis, Oct. 17. Later that day he Theodore F. Gonter, computer sys- England Region of the American Ac- ; addressed the AGA Chapter in tems analyst: countants Association at Boston Kansas City on "GAO's Systems Ap­ College, Sept. 16. Has been apPOinted project manager proval Function." of the Auditing Project of SHARE Inc., i John J. Cronin, Jr., assistant director, Gave a presentation before the 23rd l an IBM users group. spoke on GAO's role in Federal Cash Department of Defense Command-I Management at the Federal Cash Was Chairman for six sessions spon­ ers' Conference on Information Ex-I Management Seminar, sponsored by sored by the Auditing Project of change Program, in Indianapolis. Hel the Joint Financial Management Im­ SHARE Inc., and IBM users group, at spoke on the role of JFMIP and how: provement Program and the Associa­ the SHARE 51.0 Conference in the Department of Defense can partic-! tion of Government Accountants, Oct. Boston, Aug. 20-25. ipate in a Government-wide financial! 18, Washington, D.C., and at the Na­ Charles M. Davidson, computer sys­ management improvement program) tional Association of State Auditors, tems analyst, presented the results of Oct. 17. . 70 GAO Review/Winter 1979 Professional Activities

Gave a presentation on JFMIP to the Paul Posner, program analyst: annual meeting of the National Coun­ Foreign Student Service Council's In­ cil of University Research Administra­ Participated in two panels at the April ternational Leadership Seminar, tors, Washington, D.C., Nov. 10. 1978 National Conference of the Washington, D.C., Nov. 17. American Society of Public Adminis­ The same topic before the Council on Was appointed to the Editorial Board tration in Phoenix. Research Policy and Graduate Edu­ of the Government Accountants' cation at the annual convention of the Spoke on "Proposition 13 and the Fed­ Journal published by the Association National Association of State Univer­ eral Grants System," at a national con­ of Government Accountants, and the sities and Land Grant Colleges in St. ference on Proposition 13 and its con­ Bureaucrat published by the Wash­ Louis, Nov. 13. sequences for Public Management, ington chapter of the American Soci­ Washington, D.C., Sept. 15. ety of Public Administration. Bill W. Thurman, assistant director, InternationalDlnslon Doris Chew, accountant on assign­ spoke on GAO's current interest in inter­ ment to JFMIP from Treasury, gave a governmental matters at the Washing­ James A. Duff, associate director, was a speaker at the Conference on Ac­ presentation on role of JFMIP, at the ton Council of Governments, Joint Fi­ counting Education Needs in Develop­ Regional Workshop on Cash Man­ nancial Management Improvement agement-Letters of Credit, Boston, Program, Nov. 20. ing Countries sponsored by the Florida International University in Miami, Nov. 3. Sept. 14. John Kosinski, supervisor auditor, Frank M. Zappacosta, assistant direc­ AI Kitchen, accountant, on assign­ and Gene Dodaro, management ana­ lyst, spoke on GAO's approach in audit­ tor, and the U.S. representative on the ment to JFMIP from Civil Service Board of External Auditors of the Or­ Commission: ing antirecession fiscal assistance and the impact of the program on State and ganization of American States, was Gave a presentation on the role of local governments, before the Industrial elected Chairman of the Board at its JFMIP, at the Regional Workshop on College of the Armed Forces, Oct. 6. September 1978 meeting. Cash Management-Letters of Cred­ John Ols, assistant director, and Jerry it, Atlanta, Nov. 16. Stankosky, supervisory auditor, partici­ LoglsHes and CoDIDIU­ Gave a presentation on the rol~ of the pated in two seminars on GAO's role in nleatlons Dlnslou JFMIP, at the Intergovernmental Fi­ program auditing at the Industrial nancial Management Forum spon­ College of the Armed Forces, Oct. 6. John Cramsey, supervisory manage­ sored by the Washington Council of GAO's Report, "Federal Agencies Can, ment auditor, and Tyrone Mason, man­ Governments, JFMIP, and the Asso­ and Should, Do More to Combat Fraud agement analyst, spoke on GAO's ciation of Government Accountants, in Government Programs," was used as reviews of Defense transporfation activ­ Washington, D.C., Nov. 20. a case study. ities before the Defense Traffic Manage­ ment Course, U.S. Army Transporta­ :General GovernDlent HUlDau Resourees tion School, Fort Eustis, Va., Sept. 21. Charles R. Comfort, assistant direc­ ~Dlnslon Dlnslon tor, presented a briefing on GAO's in­ volvement in strategic mobility analyses Richard B. Groskin, supervisory pro­ Gregory J. Ahart, director, addressed at the Mobility Analysts Conference, -: gram analyst, gave a presentation on the the conference for business executives Nov. 14. Mr. Comfort was assisted by ': status and role of program evaluation in on Federal Government operations con­ Paul Math, assistant director; Paul 1cri me and cri minal justice problem-solv­ ducted by the Brookings Institution at O'Brien, supervisory management ,I ing at the American SOCiety of Criminol­ the General Accounting Office, on the auditor; Robert Eurich, audit manager, logy, Dallas, Nov. 8-12. subject, "Functions of the General Ac­ Washington regional office, and :- Arnold Jones, associate director, counting Office," Sept. 25. George Breen, operations research ']spoke on. GAO perspectives on Federal Matthew R. Solomon, assistant d irec­ analyst, Procurement and Systems Ac­ ;irecordkeeping and reporting require- tor, discussed Federal auditing proce­ quisition Division. 1ments in 1979 before the first annual dures, practices, and objectives at the Donald L. Eirich, associate director, 1meeting of the Business Advisory Coun­ 12th annual meeting of the SOCiety of headed a panel consisting of four ex­ ,'cil on Federal Reports, Nov. 16. Research Administrators, Boston, perts on the subject of Data Security :i Arnold Jones, associate director, Nov. 8. and Privacy Legislation. This was at the ~poke on GAO perspectives on Federal E. Herbert Dantzier, supervisory audi­ -10th annual conference of the Society ':recordkeeping and reporting require­ tor, spoke on the role of GAO in auditing for Management Information Systems, "rnents in 1979 before the first annual Federally funded grantee activities at Washington, D.C., Sept. 19. Robert G. 'meeting of the Business Advisory Coun­ the 2nd annual conference of General McKenzie, supervisory auditor, was one 'Gil on Federal Reports, Nov. 16. Clinical Research Center Administra­ of the panelists. tive Coordinators, San Antonio, Sept. 22. Despo Kambanides, management Mr. Eirich also spoke at the Ameri­ auditor, director of membership acquisi­ Dean T. Scott, supervisory auditor, can Institute of Industrial Engineers ,:tion of the National Association of spoke on: Government/Industry Conference on ,!Accountants, spoke to a group of new "Colleges and Universities Need to "Possible Future Changes in Federal :'members at an orientation luncheon, Use Equipment Inventories and ADP Procurements," Washington, D.C., Nov. 16. Screening Procedures to Justify Re­ June 28. . Glenn D. Klakring, management audi­ search Equipment Pu rchases and Op­ lor, was admitted to the Maryland Bar in timize Its Shared Use," and partiCi­ \.Jov. pated in a panel discussion at the 20th :JAO Review/Winter 1979 71 Professional Activities

Proeurement and Apr. 21. Accreditation-It's Overdue!" Detroit, Systems Aequisition Chaired the New England Intergov­ Oct. 31. ernmental Audit Forum meeting, Clem Preiwisch, audit manager, pre­ Division Northampton, Mass., June 15-16. sented a workshop on "Evaluating Pur­ chasing Systems," at the 33rd annual Walton H. Sheley, Jr., deputy director, Served as a panelist in the workshop conference and products exhibition of spoke on "GAO's Views on DOD entitled "Audit Guides for Federal the National Institute of Governmental Studies and Tests," at the U.S. Army's Grant Programs," at the annual Asso­ Purchasing, Toronto, Oct. 17. 17th Annual Operations Research Sym­ ciation of Government Accountants posium, Fort Lee, Va., Nov. 9. Ken Boehne, supervisory auditor, National Symposium, San Francisco, represented GAO at a meeting of the Donald E. Day, associate director: June 26-28. advisers to the Public Management Met with senior executives participat­ Program, Northwestern University, ing in the Brookings Institution's Represented the AGA National Conference for Business Executives Awards Committee at the Awards Oct. 10. Frank Comito, supervisory auditor, on Federal Government Operations Banquet, June 28. represented GAO at career day cere­ to discuss the functions of GAO, Is President-elect of the Boston monies, Benito Juarez High School, Sept. 11. Chapter of the AGA. Chicago, Oct. 17. Spoke on "The Role of GAO in Major Nick Carbone, assistant regional Cecile Lissner, supervisory auditor, Acquisitions," at the Navy Systems manager, spoke to the Connecticut So­ discussed "The Role and Responsibil­ Acquisition Management School, ciety of Governmental Accountants on ities of GAO," at the Northwestern Uni­ Washington, D.C., Sept. 22 and Oct. GAO functions, Sept. 22. versity Graduate School of Manage­ 27; and the Defense Systems Man­ Lou Lucas, assistant regional man- ment, Nov. 2. agement College, Fort Belvoir, Va., ager, spoke to: Sept. 27, Oct. 18, and Nov. 6. The journalism class at Boston Uni­ Cincinnati Andrew B. McConnell, associate versity on the roles of GAO and its rela­ director, spoke on "Contracting Out," tionships with other Government Dan Loesch, professional develop- I before classes at the Industrial College agencies and the news media, Sept. 1. ment coordinator, and Perry Adair, of the Armed Forces, Washington, D.C., The sociology class at Northeastern management auditor, spoke on oppor­ Sept. 12. University, Sept. 25. tunities for GAO employment before ! Felix E. Asby, assistant director, the Central Cincinnati Chapter of Fed­ spoke and participated in a panel dis­ The accounting class at Worcester erally Employed Women, Oct. 7. cussion on "GAO Views on Design-to­ State University on program auditing Cost," at the American Institute of In­ by GAO, Nov. 2. Dallas dustrial Engineers, Washington, D.C., AI Vieira, supervisory auditor, recent­ Oct. 30-31. ly received a New England Intergovern­ David W. Irwin, supervisory auditor, John M. Bishop, management audi­ mental Audit Forum award for helping spoke on "Computer Fraud," at a Fed­ tor, has been recognized as a Chartered develop economy and efficiency guide­ eral Highway Administration spon­ Bank Auditor by the Bank Administra­ lines to be issued by GAO and for devel­ sored State/Federal financial manage­ tion Institute, the Nation's research and oping and conducting a series of semi­ ment conference at Hot Springs, Ark., educational organization for the bank­ nars on audits of financial operations. Oct. 3. ing industry. He was one of 81 auditors Susan Nason, employee develop­ J.J. Jodon, assistant regional man­ to qualify for the CBA designation this ment specialist, spoke on "Working for ager, spoke on GAO functions and year. the Federal Government," at Newbury activities to students and faculty of the Junior College, Boston, Mar. 28; and Public Administration and Political Field Operations moderated a panel discussion on Fed­ Science Departments, Stephen F. eral part-time employment at the Bos­ Austin State University, Nacogdoches, Division ton Federal Executive Board's annual Tex., Oct. 19. Atlanta EEO conference, Sept. 13-15. Francis Langlinais, supervisory Chicago auditor, instructed a one-day workshop Marvin Colbs, regional manager, entitled, "Auditing in an ADP Environ­ spoke on GAO-DOD relationships at Bill Schad, assistant regional man- ment," in Denver, presented jointlly by the Air University Controller Course, ager: the AGA and the .American Society of Maxwell Air Force Base, Ala., Aug. 28. Was appointed to the Public Manage­ Military Comptrollers, Oct. 27. Mario Artesiano, Hispanic employ­ ment Advisory Council, Graduate ment coordinator, assisted in organiz­ School of Management, Northwest­ Denver ing a fiesta celebrating Hispanic Week ern University, June 9. and promoted the event on a local His­ Craig D. Richards, auditor, spoke on panic television show, Sept. 10-16. Addressed the Midwestern Intergov­ "The Role of GAO at the Aerospace De­ ernmental Forum on "Peer Review by fense Command," to a class of U.S. and Boston the Forum," Bloomington, Minn., Oct. Greek officers of the U.S. Air Force 2. Comptroller Staff Officer School, Oct. Fred Layton, regional manager: Addressed the Joint Conference of 12. Participated in a meeting of the the Association of Government Ac­ Duane A. Duffy, auditor, has been AICPA Advisory Committee on countants and Municipal Finance Of­ designated to represent the Denver re­ Government and Industry, Phoenix, ficers Association on "Peer Review/ gional office as a member of the 1978- GAO Revtew/Wlnter 1979 Professional Activities

79 Steering Committee for the Career led a discussion on the relationship of ticipated in a bilingual career day Education Center of the Denver Public the Inspector General Bills' concepts sponsored by the Federal Executive Schools. The Committee is responsible and purposes to internal auditing con­ Board, at Hostos Community College, for suggesting and participating in ac­ cepts at the AGA Mid-Missouri Finan­ Bronx, N.Y., Apr. 19. tivities designed to assist the high cial Management Workshop, Nov. 9. George Cullen, management auditor, school student in deciding upon a and William Paller, coordinator, staff de­ career in the accounting field. Los Angeles velopment activities, partiCipated 'in a Robert L. Thames, auditor, has been Federal career day at Brooklyn College, appointed to the Board of Directors of Donald H. Friedman, supervisory Brooklyn, N.Y., Apr. 12. the University of Denver's Alumni Asso­ auditor, discussed GAO's review of Austin Acocella, management ciation and the Advisory Council of the residential insulation programs before auditor, spoke on "The Nature of Pro­ University of Denver School of Ac­ the National Institute of Building gram Evaluation in the GAO," before countancy. The Alumni Association's Sciences Task Force on Insulation, State University of New York graduate Board of Directors governs the Associa­ Washington, D.C., Sept. 13. students at Stony Brook, N.Y., May 9. tion and advises the University on all Frederick Gallegos, management Joseph Mladinich, management aspects of operating its 8,500 students. analyst, served as leader of a seminar auditor, spoke on the work of GAO The Advisory Council advises the jointly sponsored by the International during a forum at the Columbia Uni­ School of Accountancy on the need for Association for Systems Management. versity Graduate School of Business, developing accounting related pro­ and California State University­ New York, July 31. grams in the University's curriculum. Fullerton, on "Auditing and the Mary Lee Danaher, management Computer," July 20. Mr. Gallegos has auditor: Detroit also been selected for the Marquis' 21 st Spoke on "Governmental Account­ Edition of Who's Who in Finance and In­ William Laurie, audit manager, spoke ing-Its Advantages and Disadvant­ dustry, and is teaching Advanced For­ ages," and served as a panelist at a on the methodology used in GAO's re­ tran Programming at California State conference on accounting career op­ view on the impact of Federal programs Polytechnic University. on the elderly, at a conference of The portunities at Long Island University, Gerontological Society in Dallas, Nov. Victor Ell, audit manager: C.w. Post Center, Greenvale, N.Y., 17-21. Sept. 20. Presented a workshop entitled Patrick lIer, supervisory auditor, "Health Systems Planning: Can the Participated in a career day at the spoke on Federal programs impact on Auditor Help?" at the AGA 27th na­ College of Mt. St. Vincent, Riverdale, the elderly before the Jewish Communi­ tional symposium, San Francisco, N.Y., Nov. 8. ty Federation of Cleveland sponsored June 27. Edward Hefferon, supervisory man­ meeting of Social Service agencies, agement auditor, spoke on Spoke to the Pasadena Exchange Oct. 26. "Opportunities Before the Staten Island Club on "GAO, the Public Watch­ Chester A. Sipsock, supervisoryaudi­ Chapter of the New York State Society dog," Sept. 13. tor, and president of the Detroit Chap­ of Certified Public Accountants," ter of AGA, was program coordinator Presented a workshop entitled "Man­ Nov. 15. for a 2-day series of conferences on agement Evaluation and Control of Emerging Issues in Government Ac­ Government Programs," during the counting and Auditing, Detroit, Oct. 30- 10th annual Professional Education San Francisco 31. Program at California State Uni­ Theodore F. Boyden, Frank G. versity, Los Angeles, Sept. 30. " Farkas, Egbert C. Henry, Chester A. Char1es Vincent, assistant regional ,Sipsock, Robert M. Blackwell, and Spoke as a panel member on careers manager, spoke on "Operational Audit­ Melvin G. McCombs were instructors in and accounting at UCLA Graduate ing," at the 38th Joint Annual Meeting of a 16-session, 8-week course on Finan­ School of Management, Oct. 19. the Women's CPA Society and Society cial Management for Minority Business of Women Accountants in San people. The course was cosponsored Francisco, Oct. 20. Mr. Vincent also by the Office of Minority Business En- New York spoke to the Delta Omicron Chapter . terprise and the Detroit chapter of AGA. Delta Sigma Pi on the subject of "Career Michael J. Ross, Jr., Hispanic pro- ,James Van Blarcom, supervisory Opportunity in the Federal , gram coordinator, spoke on Hispanic management auditor, spoke on Government," Nov. 9. Employment Program Activities at the "Governmental Career Opportunities in Larry J. Calhoun, supervisory auditor annual Detroit EEO seminar for agency Accounting," to the Accounting Club of spoke on "An Introduction to GAO," heads and supervisors and received a Fairleigh Dickinson University, and "Recent Military Oriented Audits," Federal Executive Board achievement Teaneck, N.J., Mar. 29. to the American SOciety of Military award for his work in improving the re­ Hodge Herry, management auditor, Comptrollers, Northern California cruiting process for Hispanics, Sept. 18. and William Paller, coordinator staff Chapter, Travis Air Force Base, Sept. Robert M. Blackwell, management development activities, spoke on career 20. auditor, was admitted to Michigan Bar opportunities for co-op students in Jeff Eichner, supervisory auditor, was Association, Nov. 8. GAO during a workshop for co­ a panelist on a business careerforum, at operative education students at Medgar the University of California, Berkeley, KansasCity Evers College, Brooklyn, N.Y., Apr. 5. Nov. 6. Lawrence Bonanni and Eduardo Toby L. Jarman, supervisory man­ David A. Hanna, regional manager, Escobar, management auditors, par- agement auditor, spoke on "Revenue GAO Review/Winter 1979 73 Professional Activities

Sharing and Its Impact on State and Local Auditing," at the Southeastern Intergovernmental Audit Forum, Louisville, Sept. 28. Seattle

Marvin F. Case, supervisory man­ agement auditor, and Steven J. Jue, management auditor, presented a workshop on team building for higher productivity at the 1st annual symposium of the Seattle chapter, Association of Government Ac­ countants, Oct. 27. This workshop, and others recently presented on the same subject, resulted from an article on team building written by Mr. Case and published in the Fall 1977 GAO Review. Gary L. Tomlinson and Chris S. Herndobler, management auditors, briefed participants attending the annual conference of the National Association of Rehabilitation Of­ ficers on GAO's review of HUD­ sponsored programs for rehabilitat­ ing low-income urban housing, Seattle, Oct. 7.

74 GAO Review/Winter 1979 Bookmark Dragons at the Gate by Robert L. Dunean

It is not often that works of fiction re­ Since both auditors and spies rely on ceive book reviews on the pages of this eliciting information from others ihtheir : magazine. Probably because it is not trade, it is somewhat difficult to imagine very frequent that novels are devoted to a professional from either occupation such esoteric subjects as government engaging in such melodrama. auditing, much less feature a character In addition to blackmail, the GATT who earns his living as an employee of talks, and a Tokyo locale, this fast­ the U.S. General Accounting Office. moving novel includes a hunt .for In case you had not realized it, such a missing Japanese World War II gold and book does exist, and it is the subject of an eventual double-cross of Calder. this review. But a few words of precau­ Slight technical difficulties surround the tion are necessary: (1) GAO is by no use of GAO in these latter plot dimen­ means the main element of plot or sions, but it is nothing that is not characterization in this novel; (2) as in covered by artistic license. At one point, most contemporary works of fiction, the the CIA must disown Calder and he is language contained in this book will not reminded that he cannot "blow the be found in any generally accepted ac­ whistle" on them, because his pay­ counting dictionary. In other words, checks for the last 18 years have~un­ when this book is released as a motion fortunately for this' review-come from picture, do not be surprised if it receives the "Government Accounting Office." an "R" rating. After all, it's only a novel. Harry Calder is a 45-year old graduate Jeffrey L. Jacobs of the Harvard Business School, whose Office of Comptroller 18-year career with GAO was preceded General by post-World War II service in the Allied Powers' financial section. Calder is going through what is commonly re­ ferred to as a "mid-life crisis," drinking and womanizing too much for his own health. GAO has stationed him in Tokyo, Japan, to monitor the progress of the U.S. participation in the General Agreement on Trade and Tariff (GATT) negotiations. In addition, Calder is an undercover intelligence agent for the Central Intelligence Agency, a career which also has extended since World War II. Other characters in the novel who en­ counter Calder are anxious to connect his two professional roles and remark on perceived si milarities between spying and auditing. The most obvious likeness, which ensures Calder's success as an intelligence agent, is the ability to establish an audit trail between individuals and financial transactions. In spite of this professional identity, it is doubtful whether many of the conversa­ tions in the book would occur in either the world of the CIA undercover agent or in the life of a GAO auditor. Upon confronting the blackmailed chief U.S. negotiator for the GATT talks, Calder blurts out, "We've known each other too long to be tactful. I'm not with the General Accounting Office. I never have been. I'm with Central Intelligence." GAO Review/Winter 1979 75 Reporting on GAO AIulUm ...

The editorial staff of The GAO tor in the Civil Division,' has a con­ Review would like to make this dominium in Clearwater, Fla., and stays column a continuing feature. We busy part of the time playing his favorite can only do it with your coopera­ game of golf. tion. If you are a GAO alumni, Tom Sullivan, former Assistant please write and tell us what you are Comptroller General, and Jim Rogus, doing, where you are living, etc. If former manager of our Philadelphia re­ you know of any interesting news gional office, had very interesting about GAO alumni, please tell us. assignments this year with the Indo­ We need your help! nesian Government (under the One of the first bits of news we sponsorship of the International Ex­ heard was about Oye Stovall ecutive Service Corps). We understand (former director of our International they were of great assistance to the Division) and Stan Hargey Indonesian Government in helping (formerly of the Office of Staff them in their program for improving Management) and their wives, who their capability in financial and manage­ enjoyed a 17-day tour through Eng­ ment auditing. land, Ireland, Scotland, and Wales. John Thornton, former director of the Others on the same trip were Field Operations Division, is enjoying Virginia Morse (wife of the late Ells­ his retirement in Los Angeles; two of his worth H. Morse, who was Assistant assistant directors-Clyde Merrill, who Comptroller General) and Otis D. was also a very effective GAO Review McDowell, assistant director in the liaison representative, is living in General Government Division. McLean, Va., and Ray Bandy is in the Troy McCurdy, formerly of the Majestic Towers Retirement Com­ Civil Accounting and Auditing munity in St. PeterSburg, Fla. Division, dropped by the office to Philip Charam, former deputy say hello the other day. He is now director of the old Resources and retired and living in Walnut Creek Economic Development Division (now (near San Francisco). Community and Economic Develop­ Sad news from Pompano Beach, ment Division), spends most of his re­ Florida. Gary Campbell, former tirement time in the Washington area; head of the Postal Accounts but enjoys the winter down in Miami. He Division when it was located in was by to have lunch with some of his Asheville, N.C., and later of the former colleagues before leaving for Postal Audit Division, died October Florida. 25. After he left GAO, Mr. Campbell became head of the Internal Re­ venue Service for the State of Indiana. When he retired from IRS, he entered politics and was elected Mayor of Pompano Beach for a couple of terms. Gary will be missed. Ted Westfall, former Director of Audits, serves as a consultant for International Telephone and Tele­ graph Co., and as chairman of the Board of the Executive Committee of the General Exploration Co., a developer of coal products. He and his wife reside in Tiverton, R.I., and Delray Beach, Fla. Gordon Delk, former assistant direc­ tor in the Corporation Audits Division, retired from the Internal Revenue Service and is now living in Punta Gordon, Fla. Roy Gerhart, former associate direc- 76 GAO Review/Winter 1979 Reporting on GAO Alumni

OycStoval1

TOlD Sullivan

John Thornton

GAO Review/Winter 1979 " u. S. GOVERNMENT PRINTING OFFICE: 1979 287 -326/6120 77 The GAO Review

Editor Chicago John D. Heller Daniel C. White Cincinnati Assistant Editor David P. Wilton Jeffrey L. Jacobs Dallas Editorial Assistance James J. Jodon Denver Office of the Comptroller General John T. Lacy Josephine M. Clark Detroit Kathy G. Bennick Milo L. Wietstock Special Publications Staff Kansas City Arthur LaMay, Chief Arnett E. Burrow Cyndy Hqle-Wilson, Writer-editor Los Angeles Cindy Ryan, Writer-editor Eugene T. Cooper, Jr. Janice Kosko, Writer-editor New York Ken PSira, Graphics Designer Ngaire Cuneo Richard Rockburn, Photographer Norfolk Lindsay B. Harwood Liaison Staff Philadelphia Office of the General Counsel Maurice Sady Vincent A. LaBella San Francisco Office of Internal Review Mathew J. L pez Carl R. Fenstermaker Seattle Office of Policy Alliin S. Finegold Frank Borkovic Washington Office of Program Planning Val J. Bielecki Daniel L. Johnson Claims Division James C. Farley, Jr. Community and Economic Develop­ ment Division James P. Hunt Energy and Minerals Division Jack Bachokosky Federal Personnel and Compensa­ tion Division James L. D. Moore Financial and General Management Studies Division Ronell B. Raaum General Government Division 0.0. McDowell Human Resources Division James F. Walsh International Division Charles E. Hughes Logistics and Communications Division Jacob W. Sprouse Procurement Systems Acquisitions Division Philip W. Pennington Program Analysis Division Peter A. Smith Management Services Tom Franklin Field Operations Division Louis J. Rodriguez Atlanta A. L. Patterson Boston Lester P. Slater, Jr. I'" .~

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