In addition, it proposed the adoption of an approach of primary and secondary classifications for structuring information, and reported upon the organization of task forces to develop standard structures and coding schemes for Government programs, fund accounts, organizations, and special analytical needs. As events during the second year unfolded, it became apparent that significant differences exist in the way that information needs of the Congress are perceived and interpreted. Sustantial efforts have been expended in attempting to isolate and understand these differing perceptions and to reconcile them into a form that could provide the foundation for preparing an agreed-upon system development plan. On February 17, 1972 the General Accounting Office issued a report on the budgetary and fiscal information needs of the Congress to ensure that these needs would be taken into consideration by the OMB and the Treasury in the development of their systems. The GAO's report described a wide range of information requirements covering Federal programs and projects, Federal fiscal policies and Federal financial actions affecting States and political subdivisions. The report also called for a variety of reporting capabilities, ranging from annual reporting to immediate access through computer terminals. During the hearings of the Joint Committee on Congressional Operations in March 1972, on the implementation of the Act, the Comptroller General stated that substantial further definition of these requirements would be necessary and that more detailed specifications would be developed within the succeeding 18 to 24 months as a basis for producing a long range plan for implementing the required systems. An analysis of the information requirements contained in the February 17, 1972 GAO report made it apparent that the scope of the system as envisaged by the Congress is substantially larger, and the level of information much more detailed, than that initially perceived by the OMB and the Treasury. These differences raised a number of questions concerning the basic implementation plan which had been described in our report to the Congress in September 1971. In response to questions raised during the March 1972 hearings of the Joint Committee on Congressional Operations, the OMB reported in 1972 that a number of issues needed to be resolved before OMB could determine whether modifications of its implementation plan would be necessary and whether major redesigns of the systems in being or under development were required in order to satisfy congressional needs. Included among these issues, in brief, are the following: -What is the relationship between the requirements of the LRA as outlined in the February 1972 GAO Report and other extensive congressional reporting requirements, many of which are required by statute. -Is the system perceived by the Congress intended to supersede, supplement, or be additive to existing systems. -To what extent does the Congress expect the information to have an accounting base beyond that previously proposed by OMB and Treasury. -What, more precisely, are the specific use patterns in which the Congress wants to have information classified and aggregated, and at what level of detail. -In view of the magnitude of the effort that would be required to address the wide range of congressional needs, and to meet the most crucial needs at the earliest possible date, what sense of priorities should govern the effort to fulfill these needs. Underlying these issues is the recognition that a vast and complex base of classification structures and information systems is now in existence, and that changes to those systems could be costly and disruptive to present processes and should therefore be approached cautiously and on an evolutionary basis. The continuing activities of the Joint Committee on Congressional Operations, the General Accounting Office and the OMB-TreasuryGAO Steering Group are expected to make further progress in examining, clarifying and resolving these issues. Until these efforts clearly point to new and different directions from those currently being pursued, we are proceeding with most of the basic system improvement programs reported on September 1, 1971 which are required largely to meet urgent executive branch needs. In the past twelve months: -New administrative processes were esablished which have enabled OMB to respond with much greater effectiveness to congressional requests for information. -Initial classifications required by Section 202 of the Legislative Reorganization Act were submitted to the Congress on February 1, 1972. -The initial functional classification presented to the Congress is being reviewed by an OMB Task Force. Recommended changes to this structure are due in the spring of 1973 and may be the basis for possible changes in the presentation of the Fiscal Year 1975 budget. -A proposed classification structure for fund accounts was completed by a Task Force and concurred in by the Steering Group. -A proposed classification structure for Government organizations, which is in alignment with the propose fund account classifications structure, was completed by a Task Force and concurred in by the Steering Group. -A Task Force was established and is now developing a plan for implementing the proposed Government organization and fund account classification structure for use in existing budget preparation, accounting and reporting systems on a Government-wide basis. -The Budget Preparation System was refined and used to assist in the preparation of the FY 1973 budget. A magnetic tape version of the system's master file was provided to the Joint Committee on Congressional Operations. -The Prototype Rolling Budget System was used on a pilot test basis by selected OMB program divisions to prepare the FY 1973 budget and as support to the FY 1974 spring planning review. -The Legislative Tracking System is in its second year of operation and was refined to reflect the experiences gained from operational use. Its capacity was expanded from 1,000 to 1,500 bills. Special summary status reports on key bills were initiated. -The 1971 Catalog of Federal Domestic Assistance was updated in October 1971 and the 1972 edition of the Catalog was issued in May 1972. Catalog information will be made available to the public in machine readable form. A magnetic tape containing the Catalog information was provided to the Joint Committee on Congressional Operations. -Computer produced summary information on 42,000 grants reported under the provisions of the Intergovernmental Cooperation Act of 1968 and OMB Circular A-98 was made available to all States for the first time. -A detailed plan for the development of a Regional Information System to support Federal Regional Councils was completed and is now being implemented. -The Program Performance Management System was made operational in four program areas-narcotic supply, narcotic demand, corrections, and minority business employment involving 14 agencies. Implementation in an additional six program areas involving 16 agencies is underway. -Some changes were made in reports published by the Treasury; however primary attention was devoted to (1) a revised format for the next annual Combined Statement of Receipts, Expenditures and Balances of the United States Government, (2) planning for further automation, and (3) efforts to accelerate publication dates within the present limits of agency reporting capability. In view of the issues that have arisen during the past year, it appears that the current system development plan and activities reported above will not satisfy the congressional requirements now being developed. If a significant change or expansion from the present course of action is necessary, or if a requirement for independent systems is indicated, substantial additional resources will need to be applied to the task. As these needs are clarified through the resolution of the outstanding issues, the related resource requirements are planned to be considered in the context of overall budgetary considerations and, as appropriate, included in future appropriation requests. COMPTROLLER GENERAL COMMENTS Section 202(b) states that "Each such report shall include such comments of the Comptroller General as he deems necessary or advisable." The General Accounting Office has advised us that if the Comptroller General has any comments on this report, they will be transmitted separately. APPENDIX II.-BUDGETARY AND FISCAL INFORMATION NEEDS OF THE CONGRESS B-115398 COMPTROLLER GENERAL'S REPORT TO THE CONGRESS-DIGEST Why the Survey Was Made The Legislative Reorganization Act of 1970 requires the Office of Management and Budget and the Department of the Treasury to develop standard classifications of programs, activities, receipts, and expenditures of Federal agencies and a standardized information and data processing system for budgetry and fiscal data. The Comptroller General is required to insure that the interests and needs of the Congress are taken into consideration in the establishment and operation of the information system. To ascertain the kinds of information the Congress needs, the General Accounting Office (GAO) conducted a survey of 258 persons representing 44 committees and 69 members of Congress. The results of the survey were described in a report which was sent to all committees and members of Congress on February 17, 1972, for their review and comment. This is a revised report incorporating the additional needs identified by committees and members of Congress. Results of the Survey The Congress needs to easily obtain information on: -Federal programs and projects: Basic financial information, such as on budget requests, authorizations, appropriations, obligations, expenditures, and information essential to the assessment of results and impacts. (See p. 9.) -Federal fiscal policies: Socio-economic information and national estimates, such as gross national product, consuer income, and cost-of-living indices; Federal subsidy programs; tax expenditures; and foreign currency holdings; and other information indicating impact. (See p. 12.) -Federal financial actions affecting States and political subdivisions: Information on revenues, outlays, domestic assistance programs, and other information essential to the assessment of results and impacts related to States and their political subdivisions. (See p. 16.) Classification structures for aggregating budgetary and fiscal information: The above categories of financial information must be aggregated, accumulated, or summarized by such congressional user patterns as authorizing and appropriating legislation, committee jurisdictions, responsible Federal organizations, program objectives or subject areas, political subdivisions, rural and urban areas, and target groups. (See p. 18.) The Congress needs a wide range of reporting capabilities, ranging from annual reporting to immediate access through computer terminals. The Congress also needs to be able to identify and reach primary sources of information, as well as sources of additional pertinent information. The Congress needs further a readily accessible analytical capability. (See p. 9.) GAO Plans GAO has initiated further interviews of congressional staffs regarding their specific data requirements within the broad areas of needs defined so far. These requirements will be systematically documented and communicated to the executive branch for their use in system development or modification. GAO will maintain close contact with the committees and the executive branch during the systems development or modification. GAO recognizes that, because the scope of the information needs is very broad, the development of standard classifications and a standard information and data processing system to serve the executive and legislative branches is a major, long-term project and requires the cooperation and coordination of all elements of the Federal Government. Accordingly GAO has created a permanent, full-time staff that will continue until the system is functioning satisfactorily. Matters for Consideration by the Congress Copies of this report are being sent to all committees and members of Congress -to inform them of GAO's description of information needs and ---to advise them of GAO plans for continuing work with the committees and members to document their detailed data requirements for each of the general information needs described in this report. [From the National Planning Association report "Looking Ahead,” vol. 20, January 1973] ESTIMATING POSSIBILITIES FOR IMPROVEMENT IN THE QUALITY OF LIFE IN THE UNITED STATES, 1971-81 (By Nestor E. Terleckyj, Director, NPA Goals Accounting Study) A wide ranging search is currently underway to develop better means by which social and institutional performance can be judged. This search has taken a number of directions in a number of fields. One is the attempt by economists to extend measures of the gross national product (GNP) to reflect social and environmental costs and improvements, so that the measures of economic activity become better indicators of economic welfare than the presently measured volume of production of goods and services.1 At the same time, social scientists have been developing systems of social indicators to measure directly conditions and changes in society.2 Another effort encompasses attempts to explicitly define national goals and national priorities and to measure the costs of achieving them. Another consists of attempts to define ways in which to assess the social impacts of business enterprises and, more generally, the effects of business activities on third parties, effects not reflected in financial accounts.* Citizens, governmental officials and legislators have become increasingly mistrustful of expenditure as a criterion for governmental per 1 Thomas F. Juster, "Economic and Social Accounts." Innovations in Economic Research, 52nd Annual Report, National Bureau of Economic Research, Inc. (New York, September 1972). Raymond B. Bauer, ed., Social Indicators (Cambridge: MIT Press, 1966); and Eleanor B. Sheldon and Kenneth C. Land. "Social Reporting for the 1970's: A Review and Programmatic Statement." Policy Sciences, Vol. 3. No. 2 (New York: Russell Sage Foundation. July 1972), pp. 137-151. Goals for Americans: The Report of the President's Commission on National Goals (New York: Prentice-Hall, 1960) Leonard A. Lecht. Goals. Priorities and Dollars: The Next Decade (New York: The Free Press, 1966); and Nestor E. Terleckyj. "Measuring Progress Towards Social Goals: Some Possibilities at National and Local Levels," Management Science, Vol. 16 No. 12 (August 1970). Raymond A. Bauer and Dan H. Fenn, Jr., The Corporate Social Audit (New York: Russell Sage Foundation, 1972). |