In October 1963, the Division of Trading and Exchanges was renamed the Division of Trading and Markets, and its functions were realined to implement the recommendation contained in the report of the special study that the Division be so organized and staffed that it might more adequately oversee the operation of the self-regulatory agencies, examine on a continuous basis changing market circumstances and regulatory needs, and appraise the adequacies of existing regulatory measures. In addition, the report recommended that the Division's research activities be expanded so that greater emphasis be given to the compilation, analysis and, where appropriate, publication of data concerning certain aspects and developments in the trading markets. As reconstituted, the Division consists of six units-the Offices of Chief Counsel, Criminal Reference, Enforcement, Regulation, Special Proceedings, and Statistical Studies.

SMALL BUSINESS ADMINISTRATION

The Administrator of the SBA reported that the following organizational changes took place during 1963, resulting in an increase of 189 employees:

A new position of Assistant Administrator for Administration was established to direct the administrative operations of the agency, and the positions of Assistant Administrator (Controller), Assistant Administrator (Management), and Director, Office of Organization and Management were abolished. The Assistant Administrator for Administration supervises the following units: (a) The Management Analysis Staff, which includes the mobilization planning staff; (b) the Office of Fiscal Operations, consisting of the former Office of Finance and Accounts; (c) the Office of Administrative Services; (d) the Office of Budget; (e) the Office of Personnel.

The Office of Audits was reorganized to report directly to the Administrator, and its functions increased to include all audit and investigative activities of the SBA. Functions of the Office of Personnel, the Controller, and the Office of Program Analysis encompassing these areas were transferred to the Office of Audits. The Office of Program Analysis was therefore abolished.

A new Office of Foreign Trade was established, reporting directly to the Administrator.

The Office of Size Standards was abolished and its functions consolidated into the Office of Economic Adviser.

The Office of Procurement and Technical Assistance, reporting to the Deputy Administrator for Procurement and Technical Assistance, was abolished and its functions realined as follows: The loan appraisal program was transferred to the supervision of the Deputy Administrator for Financial Assistance; the foreign trade functions were transferred to the Office of Foreign Trade; and research and development functions not related to procurement, industrial services (other than facilities inventory) and the products assistance program were transferred to the Deputy Administrator for Management Assistance. The Deputy Administrator for Procurement Assistance (formerly the Deputy Administrator for Procurement and Technical Assistance) now supervises the following units: (a) Administrative Operations Staff; (b) the Office of Procurement Services; (c) the Office of Production Facilities; and (d) Liaison Staff.

The position of Deputy Administrator for Management Assistance was established to replace the position of Deputy Administrator for Management and Research Assistance, and the former Office of Management and Research Assistance was realined into (a) Administrative Operations Staff; (b) Office of Management Development; and (c) Office of Business Advisory Services.

The Office of Investment, under the supervision of the Deputy Administrator for Investment, was abolished and its components retitled: (a) Office of Investment Assistance (formerly the Investment Activities Division); (b) Office of Development Companies (in place of the Development Activities Division); and (c) the Office of Compliance (formerly the Program Administration and Compliance Division).

Additionally, a new position of Executive Administrator was established to assist the Administrator in planning, coordinating, and administering the programs of the SBA.

The Administrator also reported that the reorganization described above was accomplished through consolidation and realinement of existing positions and functions, and did not have an appreciable effect on the employment level. The net rise in employment during the year is attributable to the increase in operations of the area redevelopment program and increase in workload in other areas, particularly in investment activities and procurement and management assistance activities.

SMITHSONIAN INSTITUTION

The assistant Secretary's report to the committee reflects a total increase of 187 employees as of January 1, 1964, and outlines the following organizational changes:

The increases in total employment result from the addition of several research specialists in its oceanography program and staff increases for the new Museum of History and Technology.

The Division of Entomology, was raised to the level of a department in the Museum of Natural History. This change was particularly justifiable since insects comprise more than one half of the described species in the animal kingdom and represent a closely knit group. Further, the change conforms with established practice in other leading museums.

A reorganization of the Department of Geology, Museum of Natural History, was completed in October 1963. The Department of Geology was abolished and the Departments of Paleobiology and Mineral Sciences were established. This reorganization was necessary to separate the biological subjects of paleontology and ecology from the purely physical subjects of minerology, petrology, and meteorites and to provide a better alinement of functions.

TENNESSEE VALLEY AUTHORITY

The Chairman in his report stated that a reorganization of TVA engineering activities was effected September 29, 1963. The former Office of Engineering was discontinued and was replaced by the following three organizations, each of which reports directly to the General Manager:

The Office of Engineering Design and Construction was established to include the former Division of Design and Division of Construction. The organization title of the Division of Design was changed to the Division of Engineering Design.

The Division of Navigation Development was established to replace the former Division of Navigation and Local Flood Relations. This division is responsible for navigation engineering and resource development and transportation economics functions.

The Division of Water Control Planning continues its former responsibility for flood control and river system development and regulation, and assumed responsibility for local flood relations, which were in the former Division of Navigation and Local Flood Relations. No significant change in numbers of personnel resulted from the above reorganization. Total employment in TVA as of January 1, 1964, was 16,372. There was a decrease of 1,653 from the total of 18,025 on January 1, 1963. This decrease is primarily due to the reduction of construction forces at several TVA projects.

U.S. INFORMATION AGENCY

The Assistant Director (Information) reported an increase of 525 employees during calendar year 1963, and stated that, although the basic organization of the Agency remained unchanged, within the overall organization framework the following changes were effected: The Personnel Division in 1963 was reorganized to provide personnel serving on the basis of Agency elements. There was no change in positions resulting from this reorganization.

The Research and Reference Service was reorganized to realine certain of its functions and clarify functional relationships for more effective operations. The most significant change was the consolidating of two separate units, one concerned with area analysis and the other with survey research, into six geographic divisions responsible for both activities. This consolidation results in an integration of employee skills in the political and social sciences and has improved servicing in the Agency. There was no change in positions resulting from this reorganization.

The functions of the Regional Film Processing Center at Manila were merged with those in Tokyo. The merger has resulted in a reduction of positions and a better quality of service.

The Agency began direct operation of VOA facilities at Dixon and Delano, Calif., and Bethany, Ohio, in October and November 1963. Prior to that date, independent contractors operated these facilities for the Agency. This action has eliminated duplicate overhead expense, thereby reducing the cost of the services by about $139,000 on an annual basis. The employees are now under direct supervision of the Agency and provide an additional source of technical personnel available for transfer to other facilities of the Broadcasting Service when needed. However, there has been an increase in personnel as a result of placing them on Agency rolls.

On January 14, 1964, the Office of Personnel and Training was created. Comprised of the Personnel Division and the Training Division, formerly in the Office of Administration, the new element reports directly to the Director of the Agency. There was no change in positions resulting from this reorganization.

The copyright clearance staff, formerly in the Broadcasting Service and servicing its operations only, was transferred to the Office of the General Counsel. It now clears copyright, union, and otherwise protected material and services not only for the Broadcasting Service, but also provides such clearances for the Television and Motion Picture Services and USIS field posts; it closely coordinates with the press and information center services in providing such clearances; and it provides a single voice for the agency in negotiations with rights owners and unions. There was no change in positions resulting from this reorganization.

In 1963 USIS posts in Bordeaux, Strasbourg, Tours and Salzburg, information centers at Florence and Turin, and reading rooms at Lille and Lyon were closed resulting in elimination of 34 permanent positions. Planned closings in 1964 are the USIS posts at Marseille and the Amerika-Haeuser at Essen, Keiserslautern, and Kiel.

The following posts were opened: Constantine, Algeria; David, Panama; Oran, Algeria; Baida, Libya; and Elisabethville, Republic of Congo (Leopoldville.)

The African program center was opened as a radio program center in Monrovia, Liberia, resulting in the addition of 14 permanent positions. Approximately one-third of the planned 7311⁄2 hours of weekly African language broadcasts in fiscal year 1964 will be produced and broadcast directly from this center.

VETERANS' ADMINISTRATION

The Administrator reported the following changes in Veterans' Administration organization which have taken place since January 1, 1963:

The Operations Evaluation Staff in the Office of the Administrator was abolished and its functions assigned to a newly established Office of the Executive Assistant. Under the direction of the Executive Assistant, this new office is the central coordinating staff for the Office of the Administrator and is responsible for the last line of review before an action is taken or a decison is made by VA's top management concerning the operations of the agency.

The Office of the Assistant Administrator for Appraisal and the Office of the Assistant Administrator for Management Services were merged into a new Office of the Assistant Administrator for Management and Evaluation. The services performed by the former offices are being continued by the new office except for certain civil defense and disaster relief functions which were transferred to the departments and staff offices, data processing and telecommunications responsibilities transferred to the new Department of Data Management, and some supply functions relating mostly to control of rather than to staff support of the supply program transferred to the Deparment of Medicine. and Surgery.

In the Office of Assistant Administrator for Personnel the Evaluation Service has been redesignated as the Evaluation and Reporting Service and has been reorganized so as to include responsibility for the VA employment reporting system previously handled by the Office of the VA Controller. Responsibility for liaison with the new Department of Data Management regarding automatic data-processing ac

tivities is also assigned to this Service. The Classification and Wage Service has been redesignated as the Classification and Pay Administration Service to reflect general responsibility for pay administration policies for all categories of VA employees. The Placement and Relations Service has been redesignated as the Staffing and Relations Service to encompass all aspects of staffing, including recruitment, placement, qualification standards, promotions and separations. The reorganization of the Office of the Assistant Administrator for Personnel also included revision and clarification of the responsibilities and functions of the remaining Career Development and Central Office Personnel Services.

Among the major changes in VA organization which occurred during 1963 was the establishment of a new Department of Data Management. This department is now responsible for the agency's automatic data-processing functions including the operation of the Data Processing Centers in Washington, D.C., Philadelphia, Pa., Hines, Ill., St. Paul, Minn., and Los Angeles, Calif. Previously the data processing facilities in Washington were operated by the Office of the Manager, Administrative Services; the facilities in Philadelphia (plus supporting facilities in Denver and St. Paul) by the Department of Insurance; the facilities at Hines by the Departments of Veterans' Benefits; and those in Los Angeles by the Department of Medicine and Surgery.

In addition to the operation of data-processing services, the new Department is responsible for conducting research and analyses of all VA activities with the view of planning, developing, and implementing an integrated VA data system. It supports top management, the other departments and the staff by providing information manipulation, storage, and retrieval. It provides the statistics needed for control and for historical purposes. In addition, the Department of Data Management is responsible for providing VA management with the means of simulating new programs and testing alternative actions prior to adoption administratively or submission to Congress for legislative action.

The Department of Data Management consists of an Office of Chief Data Management Director, a Management Staff, a Systems Analysis and Research Service, a Systems Development Service, a Systems Maintenance Service, and a Resources Service.

During the past year several changes have taken place affecting the organizational designations and functional responsibilities of the Department of Medicine and Surgery. One of these was the redesignation of the Evaluation Staff as the Office of Assistant Chief Medical Director for Evaluation. Another was the transfer of responsibilities for automatic data processing systems and activities from the Office of the Assistant Chief Medical Director for Plans and Coordination to the new Department of Data Management. However, subsequently the responsibilities of the ACMD for Plans and Coordination were restated to emphasize the importance of his role in the development of new or changed programs in the Department of Medicine and Surgery, especially as they are related to the extension of automation to the areas of clinical medicine, medical research and education, and patient care and treatment.