Administration. Working Capital Fund 222 REMARKS Increase due to increased effort to automate workload in such areas as FORMS; accounting for acquired properties and insurance in force; and a large and growing volume of data processing in connection with improved field payroll, personnel, accounting, and program data and statistics. For installation or other structural changes required to accommodate the telecommunications equipment in all field offices. FY 1973 $2,883 FY 1974 $4,569 FY 1975 $5,539 14,372 An appropriation of $6,830 thousand is requested for FY 1975, an increase of $170 thousand above the 1975 Budget request. With FHA funds of $2,340 thousand and miscellaneous fees and charges of $1,470 thousand, a total of $10,640 thousand will be available in FY 1975. An increase of 10 positions over the 1975 Budget is requested to provide audit assistance associated with the anticipated workload increase under the Section 23 revised leasing method. JUSTIFICATION OF REVISED BUDGET REQUEST Since the Section 23 revised leasing method is a new program, additional audit manpower will be used to assure that the program is being effectively implemented. After implementation, it is contemplated that special and continuous audit efforts will be devoted to Section 23 in the 10 Regional Office Jurisdictions throughout fiscal year 1975 to ascertain that the program is operating properly. Audits will be made at the Area and Insuring Office level and at selected local housing authorities throughout the country. An appropriation of $30,160 thousand is requested for FY 1975, an increase of $860 thousand above the FY 1975 Budget request. An increase of $430 thousand in FHA funds available for Regional Management and Services is also requested. Funds from other sources are estimated to remain at the budgeted level. Total funds available are estimated to be $48,430 thousand, an increase of $1,290 thousand. EXPLANATION OF CHANGES These increases in funds available are necessary for space rental costs and for 20 additional positions to provide accounting services for Better Communities Act community development grants. Space rental costs are expected to increase by $950 thousand in FY 1975 with $520 thousand provided from the appropriation and $430 thousand provided from FHA funds. JUSTIFICATION OF REVISED BUDGET ESTIMATE Community Development Grants. It is estimated that nearly 2,000 community development grants will be made under discretionary funds (in addition to nearly 1,200 formula entitlement recipients). Past experience in regional accounting divisions has shown that one position can handle 296 categorical projects of all kinds. However, the new grants can cover a wider range of activities and therefore the accounting work is expected to be more complex. Therefore, it is estimated that one position will be needed for each 150 grants. On the basis of the foregoing, fifteen additional technical positions will be needed as well as five support positions, or a total of twenty positions. |