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LEGAL AND MONETARY AFFAIRS SUBCOMMITTEE

CONSERVATION AND NATURAL RESOURCES SUBCOMMITTEE

1. "Qui Tam Actions and the 1899 Refuse Act: Citizen Lawsuits Against Polluters of the Nation's Waterways," September 1970: (a) Summary.-The committee print contains staff memorandums supporting the statement in House Report No. 91-917 ("Our Waters and Wetlands, How the Corps of Engineers Can Help Prevent Their Destruction and Pollution") that a private citizen can bring an action as an informer, to enforce the Refuse Act (33 U.S.C. 411).

(b) Benefits.-Numerous citizens' actions to abate pollution of our Nation's waterways under the Refuse Act have been filed, and this report may help the plaintiffs to avoid dismissal of their complaints. Such actions help abate pollution of our Nation's waterways, especially from industrial discharges.

SPECIAL STUDIES SUBCOMMITTEE

1. "Economic Report on Food Chain Selling Practices in the District of Columbia and San Francisco"-A Report Prepared by the Staff of the Federal Trade Commission for the Special Studies Subcommittee of the Committee on Government Operations, July 28, 1969.

(a) Summary. This study is a comprehensive report by the staff of the Federal Trade Commission on what might be termed the structure and behavior of food retail chain stores in low income areas of two metropolitan cities-Washington, D.C., and San Francisco, Calif. The study confirms previous Government findings that many foodstores serving low-income, inner-city areas are small, less efficient, and have higher prices, and that consumers in these areas are frequently sold lower quality merchandise and are provided fewer services than in other areas. Moreover, the study, like previous ones, also confirms the fact that retail facilities of low-income areas are often old and in a shabby state of upkeep. Other policies which retail food chain stores seemingly follow in their inner-city stores are also discussed in the report, together with a suggestion for action by an educated and aware body of consumers.

(b) Benefit.-A benefit of the study may be an improvement in the marketing and pricing practices of retail food chain stores in our inner cities. The FTC has now initiated a proceeding, including a public hearing, looking toward the promulgation of a trade regulation rule regarding food store advertising and marketing practices, notice of which was published in the Federal Register on November 14, 1969.

2. "Progress and Problems Relating to Improvement of Federal Agency Accounting Systems as of December 31, 1968," B-115398, December 15, 1969.

(a) Summary.-This is the first annual report by GAO to the Congress summarizing progress being made by Federal agencies in developing and improving their accounting systems in accordance with the mandate of the Congress and the related principles, standards, and requirements prescribed by the Comptroller General. The report was prepared for the Special Studies Subcommittee in response to the recommendation of the House Committee on Government Operations (H. Rept. 1159, 90th Cong., Mar. 5, 1968). It states that as of December 31, 1968, 62 accounting systems in the civilian departments and agencies out of a total of 147 subject to approval, have been approved. These figures demonstrate the magnitude of the work yet to be accomplished.

In a letter to the chairman transmitting the report, the Comptroller General stated that the GAO, to function effectively in this important area, has decided to limit its formal approval actions in the future to agency statements of principles and standards to govern their accounting systems and the proposed general designs of those systems. This action should hasten the approval process, because the GAO will no longer undertake to review these systems specifically for the purpose of approving them in operation. This does not mean that systems will not be reviewed by the GAO. From time to time, such reviews will take place. But the GAO has found that an attempt to keep the "approved" status of all systems in operation on a current basis can be an impossible objective. Agency operations are seldom static since they must keep abreast of changes of various kinds, including those that may take place in their own programs.

(b) Benefit.-Although the report is not current (its figures being as of December 31, 1968) it does highlight the progress or lack of progress being made by each department and agency in Government. The report, however, does indicate the tremendous amount of effort being put out by most departments and agencies to conform to the requirements of the Budget and Accounting Act of 1950, as amended.

3. "William L. Dawson's Programs To Help the Disadvantaged."

(a) Summary.-This is a study by the subcommittee staff of the efforts of the late committee chairman, William L. Dawson, on behalf of black people in the United States, but particularly in the Chicago area. Specifically, the report relates a number of his major accomplishments: (1) Headstart education for preschool age youngsters: (2) teacher training for instructors in ghetto area schools; (3) fulltime minority groups representatives within the U.S. Employment Service; (4) local employment programs under his auspices; (5) providing the Outreach program to the disadvantaged by the U.S. Employment Service and the Illinois State Employment Service.

The study shows how, in each of the above instances, Chairman Dawson took positive steps which saw each of these operations progress from a modest beginning into widely accepted national programs.

(b) Benefits. Because of Chairman Dawson's work, many problems confronting the disadvantaged people in the United States, especially Negroes, were pinpointed and substantially alleviated.

V. Prior Activities of Current or Continuing Interest

MILITARY OPERATIONS SUBCOMMITTEE

1. Savings in Communications Service Charges Due to Satellite Communications.

(a) Summary.-In House Report No. 613, 90th Congress, first session, August 28, 1967, FCC estimated total benefits from rate reductions due to the composite rate approach supported by the committee at $7.2 million per year, or $72 million on a 10-year basis.

In House Report 1836, 90th Congress, second session, August 1, 1968, FCC estimated such savings at $11,980,000 per year, or $119,800,000 on a 10-year basis.

(b) Previously unreported benefits.-In 1969, FCC reported added rate reductions based on composite rates and savings due to satellite circuits of $4,472,244 annually, or $44,722,440 on a 10-year basis. These savings were due to savings on the Australian portion of the Pacific circuits.

In December 1970, FCC reported an additional $225,600 in annual savings ($2.256,000 on a 10-year basis) due mainly to Pacific area rate reductions already in effect, and $135,000 annually ($1,350,000 on a 10-year basis) in rate reductions on the U.S.-Guam circuits, to take effect on January 1, 1971. Thus, there are now further annual savings of $360,600 ($3,606,000 on a 10-year basis).

When these 1969 and 1970 items are added to the savings estimated in 1968, the FCC cumulative estimate of total savings is $16.812.844 per year, of which two years have been realized, or $168,128,440 on a 10-year basis.

GOVERNMENT ACTIVITIES SUBCOMMITTEE

1. Federal Internal Audit Systems.

(a) Summary.-Under a working relationship with the Comptroller General, a Government-wide review of internal audit systems is under way. Upon completion of General Accounting Office fieldwork, the subcommittee will undertake necessary hearings or whatever other action is necessary to bring all Federal internal audit systems up to an optimum level of efficiency.

(b) Previously unreported benefits.-The subcommittee continues to maintain an active interest in the development of more effective internal audit systems in the departments and agencies of the Government. Specific estimates of savings resulting from subcommittee action in this area cannot be made. However, as these management control systems work directly to improve the effectiveness and efficiency of the

organization of which they are a part, it is manifest that the activities of the subcommittee in this field bring about substantial savings annually through increased efficiency throughout the Federal Government.

2. ADP Management.

(a) Summary.-Following approval of Public Law 89-306 in October 1965, significant savings in Federal funds accrue annually as a result of increased efficiency in the management of Federal computers. Implementation of this business-like system of computer management continues, with emphasis changing to the more efficient exploitation of computer usage as contrasted to the management of computers. With improvements in the management, broader areas involving the more efficient application of computers have thus come within the purview of the subcommittee.

(b) Previously unreported benefits.-Total annual cost reductions flowing from Public Law 89-306 are in the order of $450 million annually. The cost reductions that have accumulated up to this time, including the period of the subcommittee's investigation prior to passage of the bill, fall into the area of between $1.2 billion and $1.7 billion.

As computer usage continues to grow in Government, Federal outlays for computer services will reflect the increasing impact of the basic efficiencies of this legislation. Even under the most optimistic circumstances, giving every consideration to other forces that might have developed to push Federal procurement management in the proper direction, it can be said with almost absolute certainty that, but for the work of the Government Activities Subcommittee and the enactment of this legislation, the present budget would be from $200 to $400 million higher as various agencies, through uneconomic leasing arrangements, continued to pay for computer systems over and over again, and as agencies began to acquire additional systems when computer capacity to meet their needs already existed in the Government.

3. FAA Air Traffic Control Operations.

(a) Summary.-During the 91st Congress, the subcommittee devoted a substantial portion of its time to a fundamental review of FAA air traffic control operations. An effective air traffic control system is crucial to the economy of the Nation and the lives of thousands of people depend upon such a system operating at optimum efficiency. For the past 8 years, FAA has been developing a new automated air traffic control system to meet the increasing traffic flow of the 1970's. This program is years behind schedule and is confronted by extremely difficult technical problems which have yet to be resolved.

(b) Previously unreported benefits.-Aside from a more efficient and effective operation of air traffic control, with financial benefits that cannot be estimated at this time, the principal value of this investigation is the lives of the people who might be saved through improvements in the air traffic control system.

INTERGOVERNMENTAL RELATIONS SUBCOMMITTEE

1. CCC Grain Storage Activities.

(a) Summary.-The subcommittee examined grain storage activities of the Department of Agriculture, giving particular attention to rates being paid for storage of Government grain in commercial facilities.

(b) Previously unreported benefits.-The subcommittee's investigation was a contributing factor in action taken by the Department of Agriculture to reduce storage rates approximately 19 percent. Estimated savings because of this reduction during fiscal year 1970 were $27,905,542.

Total savings because of the reduction during fiscal years 1961 through 1970 are estimated at $493,261,013.00 and it is anticipated that multimillion dollar annual savings will continue to be realized for a number of years.

2. Government-Financed Exports of Agricultural Commodities.

(a) Summary. For a number of years, the subcommittee has devoted considerable attention to programs involving Governmentfinanced exports of agricultural commodities. Although no formal reports on this subject have been issued, several hearings have been held and a number of recommendations have been made to the Department of Agriculture.

(b) Previously unreported benefits.-In accordance with action urged by the subcommittee, price review procedures for commodities sold under Public Law 480 programs were changed to provide for review of prices at the time of sale rather than months later, after the commodities had already been delivered and USDA funds paid out to finance them. As a result of the changed procedures, according to reports from the Department of Agriculture, reductions in financing through fiscal year 1970 are estimated at more than $3,343,498.

3. The Administration of Research Grants in the Public Health Service.

(a) Summary.-Over a period of years the subcommittee has maintained a close and continuous oversight of the Public Health Service's important research support activities with a view to improving the economy and efficiency of the agency's administration of grants. The subcommittee's investigations, which resulted in formal committee reports in 1961, 1962, and 1967, have focused principally on the research grant programs of the National Institutes of Health.

The committee's most recent report on this subject (H. Rept. No. 800, issued in October 1967) made 17 separate recommendations for dealing with the administrative inadequacies and problems that were found to interfere with the responsible, efficient, and economical operation of PHS's research grant programs. Some of these recommendations are only now being accepted and implemented by the Department of Health, Education, and Welfare in response to the subcommittee's continuing efforts.