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provided, we have saved something like an additional $18,000,000 over what would otherwise have been paid. Of course, we cannot stop that work now because it is actually saving funds all the time. Mr. TABER. What I had in mind was this, that you had probably ceased operations some time ago on a very large percentage of your work and that the wind up of it would be pretty close.

Mr. CRUIKSHANK. That is true on the technical aspect, but the average contractor on this type of research work has to go on down the line and have subcontractors, and sub-subcontractors, and so forth and by the time all the costs are finally determined and brought up through the different levels and reach us in the form of vouchers, it is often a matter of months after the research work has been stopped. We are still getting approximately the same voucher flow that we did some months ago when we were operating on a larger scale.

Mr. TABER. Has that not dropped off, though?

Mr. CRUIKSHANK. Very little. The travel vouchers of our own personnel, of course, have dropped off. But the contractors' vouchers are still coming in at approximately the same rate they did right after VJ-day.

Mr. TABER. How long will that continue?

Mr. CRUIKSHANK. Our records indicate that it takes approximately 14 months to clear these requirements that I spoke of first, property, patents, and final technical reports. That is, of course, allowing for some delay on the receipt of vouchers. Sometimes the contractors themselves, as I said, cannot get this information rapidly and then, after 3 or 4 months, we will say, the vouchers come in. Then by the time we get the required technical approvals and audit the vouchers and clear up the matters which would finally result in a release of these checks, the average is from 12 to 14 months. It will take a good while, all of the fiscal year 1947, I think, to make all these final settlements.

OTHER MISCELLANEOUS SERVICES

Mr. TABER. As to your other miscellaneous services, the large number of employees you have there, is that for your scientific work, to finish that off, or to take care of your report, or what is that?

Mr. NORCROSs. Included there is an administrative service section which is getting smaller and smaller. They provide the communications services, supplies, space, and so forth. Also included is a contract section which has shrunk from some 22 to 7, and I think will go down some more. All are necessary services which support these other larger groups which represent the principal expense, that is property, patents, and project control, which handles the final technical reports.

Mr. WIGGLESWORTH. I have no questions.

Mr. DIRKSEN. I have no questions.

Mr. CANNON. Dr. Bush, the committee is grateful to you and the country is very grateful to you; thank you, gentlemen.

Dr. BUSH. We are grateful to this committee for the fine support

you have given us throughout the whole affair.

Mr. CANNON. We hope to see you again, but not on a project of this character.

Dr. BUSH. Unofficially, of course.

FRIDAY, MAY 31, 1946.

DEPARTMENT OF STATE

STATEMENTS OF HARRY M. KURTH, BUDGET OFFICER, DEPARTMENT OF STATE; WILLIAM SANDERS, ASSOCIATE CHIEF; AND J. W. HALDERMAN, DIVISIONAL ASSISTANT, DIVISION OF INTERNATIONAL ORGANIZATION AFFAIRS

FOREIGN SERVICE

ESTABLISHMENT OF UNIFORM PAY PERIODS

Mr. CANNON. We have before us, Mr. Kurth, House Document No. 591, setting forth a proposal to establish uniform pay periods. It seems there is some difference in handling this matter, some employees being compensated biweekly and some monthly, and there is a generally incongruous arrangement. What recommendations do you have for establishing uniform pay periods for the foreign service?

Mr. KURTH. Mr. Chairman, the purpose of the general provision to effect uniform pay periods in the foreign service is to enable the Secretary of State to compute and pay the compensation of all employees of the Department of State outside the continental limits on the basis of a biweekly pay period. At the present time only those employees covered by the Federal Employees' Pay Act of 1945 (59 Stat. 295) may lawfully be paid on a biweekly basis whereas local employees outside the continental limits of the United States who are paid in accordance with the local native prevailing wage rates for the area in which employed are required to be paid on the basis of a monthly or semimonthly pay period pursuant to the provisions of the act of June 30, 1906 (5 U. S. C. 84).

This change in language will permit the budgeting of all salaries on the same basis; payment of compensation on the same pay roll and on the same dates, thus enabling officers abroad to simplify their procedures, reduce the number of vouchers in accounts, make it unnecessary either to negotiate drafts for funds more often than once every 2 weeks, or to carry considerable balances of currency on hand at posts abroad; and to place all salary obligations on the same basis for reporting purposes. This will enable the Department to maintain a uniform system for budgeting and for paying, accounting, and reporting purposes.

In addition, the above-requested language will permit the gross amount of the earnings for a biweekly pay period to be changed against the appropriation current at the end of such pay period when such pay period begins in the fiscal year 1946 and ends in the fiscal year 1947. This is in conformity with authority contained in section 604 (b) of the Federal Employees' Pay Act of 1945 and will enable the Department to handle uniformly all pay rolls covering pay periods extending from one fiscal year into the next fiscal year.

Briefly, that is the story, Mr. Chairman. It will save us a lot of difficulty in handling the administration of pay-roll payments in the foreign service.

Mr. CANNON. On what date would your last pay day fall this fiscal year?

Mr. KURTH. Actually, in this particular fiscal year, it happens that the pay date coincides identically with the end of the fiscal year. Mr. CANNON. That is just a coincidence?

Mr. KURTH. That is just a coincidence; that is right. Next year it would not be that way.

Mr. O'NEAL. Why has not this been recommended before?

Mr. KURTH. Alien employees were specifically excluded from the provisions of Public Law 106. Our people in the field did not realize the implications of the law and actually did pay on a biweekly basis. This was natural since they make up one pay roll at each post to pay all employees at the post. We had assumed in Washington that they were going to pay on the regular semimonthly basis and, when it was called to our attention by the Office of Foreign Service, we submitted this legislation to correct the situation.

We attempted in the forthcoming pay increase bill to have this provision included. However, the chairman of the committee decided not to include it, so we will be faced with the same situation in the next fiscal year.

Mr. O'NEAL. Do you know why he took the position to exclude it? Mr. KURTH. He thought it would complicate an already complicated situation, I believe, and that we could adopt other measures to accomplish the same result.

Mr. WIGGLESWORTH. I do not understand the last part of that language.

Mr. KURTH. You are referring to the carry-over from one fiscal year to the other?

Mr. WIGGLESWORTH. Yes.

Mr. KURTH. If the fiscal year happens to end in the middle of a pay period, say on a Wednesday, Public Law 106 provides that salary payments for the other 2 days, Thursday and Friday, may be charged to the appropriation for the prior fiscal year instead of splitting up the period and charging the 2 days to the appropriation for the subsequent fiscal year. This would permit us to do the same thing for salary payments to alien employees. A similar provision is already authorized for payment of utility bills. For example, if the utility billing period begins on June 15 and ends on July 15, instead of splitting the bill, the entire charge can be made to the appropriation for the first fiscal year.

Mr. WIGGLESWORTH. How are you going to make this retroactive to July 1, 1945?

Mr. KURTH. The final sentence reads:

This provision shall be considered as effective from July 1, 1945:

Mr. O'NEAL. But how can it do it?

Mr. KURTH. If you approve it, I believe that will make it retroactive.

Mr. WIGGLESWORTH. Well, you cannot pay on a biweekly basis from July 1, 1945.

Mr. KURTH. As I explained, a number of posts, through inadvertence, had already paid on a biweekly basis.

Mr. WIGGLESWORTH. And that is the reason for this request?
Mr. KURTH. That is the reason for making it retroactive.
Mr. WIGGLESWORTH. That is the reason for the request?

Mr. KURTH. The reason for the request is to make the provision retroactive and, also, to continue to do it through the balance of this

fiscal year and the next fiscal year. It will facilitate administration during the next fiscal year.

Mr. TABER. You have legislation here, and why do not you go to the Foreign Affairs Committee and get it on a permanent basis, rather than have this expedient thrown upon us?

Mr. KURTH. It is purely an administrative matter. We probably would never reach the legislation on the calendar if we did it through that method. Our need is immediate. Eventually, it should be covered by an amendment to the Federal Pay Act if the practice of paying on a biweekly basis is continued indefinitely.

Mr. CANNON. Of course,what we are trying to reach here, Mr. Kurth, is not only uniformity, but economy. I notice here in your second paragraph on the first page of your justifications you say:

This language will permit the budgeting of all salaries on the same basis; payment of compensation on the same pay roll and on the same dates, thus enabling officers abroad to simplify their procedures, reduce the number of vouchers in accounts, make it unnecessary either to negotiate grants for funds more often than once every two weeks, or carry considerable balances of currency on hand at posts abroad, and to place all salary obligations on the same basis for reporting purposes.

So that it would greatly simplify your routine, save a lot of lost motion and, incidentally, would effect economy.

Mr. KURTH. Yes; that is correct, Mr. Chairman.

INTERNATIONAL OBLIGATIONS

Mr. CANNON. Under "International obligations" I see you are asking for contributions to international commissions, congresses, and bureaus in an amount aggregating, for the five projects involved, $37,261.42.

INTERNATIONAL OFFICE OF PUBLIC HEALTH

We will take up the first one you list here-"International Office of Public Health" where the appropriation for payment of the annual quota of the United States for the fiscal years 1941, 1942, 1943, and 1944, at $5,104.68 per year, would be $20,418.72 for the 4 years.

This was due, I believe, to the suspension of payments for those years 1941 to 1945?

Mr. KURTH. Yes, sir.

Mr. CANNON. Because this Office was actually located in occupied countries-it was located at Paris-of course, the work could not be carried on.

Mr. KURTH. Yes, sir.

Mr. CANNON. Appropriations have already been made for quota payments for the last 2 years 1945 and 1946, and why this request for the years 1941 to 1945 when this Office could not be carried on?

Mr. KURTH. Mr. Chairman, Mr. Sanders, Associate Chief of the Division of International Organization Affairs, which administers our relationship with these international agencies, is here, and I will let him answer that question.

Mr. CANNON. I wish you would give us a statement on that, Mr. Sanders, and I wish you would let us know, particularly, why, if there was no activity during these 4 years and I take it for granted in view of the fact Paris was occupied by the German troops, there was

no activity at all along this line in those years-why this request

comes to us?

Mr. SANDERS. The Director General of the Office succeeded in keeping open the headquarters in Paris and, in addition, set up an office at Royat in southern France for the purpose of maintaining contact with countries with which relations were difficult from Paris. From the two places, the Director General and staff of the Office were able to disseminate information, required under the sanitary conventions to the United States as well as to European and non-European countries. The maintenance of the two offices resulted in appreciable operating expenses. The Office drew upon its retirement funds to pay the salaries of its staff and other continuing expenses. Our recommendation is based upon the report of the Director General of the Office and consultations with the United States delegate to the permanent committee of the Office and with responsible officers of the Department of State.

Mr. CANNON. Well, there could not have been a great deal done or accomplished with the whole of France submerged by the German invasion, and, in view of the fact that little or nothing could have been accomplished, why should there be any expense for those yeɛ rs?

Mr. SANDERS. The office was able to disseminate information, and it is a continuing contractual obligation for actual expenses.

Mr. CANNON. You are apparently charging us here with an expense for those years in which the whole thing was abandoned. The Paris office was abandoned and all activities were abandoned, and yet you are charging us as much as for these years 1945 and 1946 when activities were resumed.

Mr. SANDERS. The Office was able to carry on many of its activities as I have indicated, and was forced to deplete its retirement fund to pay expenses actually incurred. In other words, this is a continuing obligation of membership.

Mr. WIGGLESWORTH. It says:

to meet annual expenses for the conduct and maintenance of the Office.

Mr. SANDERS. That is right.

Mr. WIGGLESWORTH. Following the chairman's thought, there was not any conduct or maintenance of the activity, was there, in those years?

Mr. SANDERS. There was; the staff continued the normal functions of the Office to the extent that it was able.

We have a communication from the Director General of the Office. Mr. O'NEAL. Has the changed value of the monetary units of the various countries caused this commission to ask for the American contribution in dollars in a larger proportion than it was prior to the war?

Mr. Kurth. No, sir. This contribution is based upon the gold franc which remained stable.

Mr. O'NEAL. There has been no change of that sort?

Mr. KURTH. No.

Mr. O'NEAL. The proportion remains the same?

Mr. KURTH. The proportion remains the same.

Mr. CANNON. There are 12 member nations, I believe, or 12 nations that participate in this activity and that are supposed to support its cause. Now, what have the other 11 nations done toward paying their back payments, or what do you expect them to do?

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