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FRANK D. DERVILLE, CPA, CGFM Frank Derville is currently the Associate Administrator for Finance at the House of Representatives. Prior to this, he was a Principal with Derville & Associates, a careerist whose public service included the U.S. General Accounting Office, the Na. tional Aeronautics and Space Administration, the Department of Health and Human Services, the Health Care Financing Administration and the Department of Veterans Affairs. He also served as a corporate controller in the private sector for several large corporations.

Frank has advised domestic and foreign clients on strategic planning and business plan development; strategic assessments of healthcare market and sector opportunities; financial management system assessments and development; financial organization configuration and management; financial statement preparation, analysis and use; costing and pricing strategies; acquisition support; and software quality assurance.

He frequently lectures on financial policy requirements, budget planning and execution, financial statement preparation and analysis, federal financial system requirements and long range strategic planning.

Frank's public and private positions provided the critical experience necessary to nurture the creativity and innovativeness that is readily apparent in his accomplishments.

As the Deputy Assistant Secretary for Financial Management at the Department of Veterans Affairs he updated and automated financial policy and procedures, procured and installed an integrated Departmental financial management system, created a comprehensive program audit activity, designed and implemented a third party-cost recovery program, redefined central office and field financial officer responsibilities and implemented the Chief Financial Officers Act.

As the Deputy Bureau Director, Health Care Financing Administration, Frank directed the implementation of the Medicare Catastrophic Legislation (prescription

drugs), developed and oversaw the nationwide implementation of HCFA's Medicare - Secondary Payer recovery program, planned and implemented the Medicare Automated Network.

As the Director, Office of Financial Management for the Health Care Financing Administration, Frank implemented a new on-line financial management and reporting system, revised the methodology used to prepare and submit the national Medicaid budget and restructured the format and presentation of the Medicare contractor budget.

While the Controller of USM Corporation, he streamlined financial reporting, initiated a strategic planning process which expanded profitable product lines and reduced bad debt expense by 200% and installed a direct cost system.

Frank is a Certified Public Accountant, a Certified Governmental Financial Manager, a member of the American Institute of Certified Public Accountants, the Asso ciation of Government Accountants and the Federal Financial Managers Council. He has served as the Chairperson of the Federal Financial Managers Council and as a Director of the Washington Chapter of the Association of Government Accountants.

Mr. WALSH. Before we begin, why don't you briefly outline your backgrounds so that our members are familiar; and if there is any. one else you would like to introduce, please feel free.

MR. EAGEN'S BACKGROUND Mr. EAGEN. Okay. Thank you, Mr. Chairman. Mr. Serrano, Mr. Latham, good morning.

I am a 16-year veteran of Capitol Hill. I guess I am one of those that started at the bottom and worked his way up through the system.

I served as a legislative assistant for Congressman Steve Gunderson, became his chief of staff or administrative assistant and then moved over to Bill Goodling's office as chief of staff. I then moved down to what was then called Committee on Education and Labor as the Minority staff director and eventually became the Majority staff director before becoming the CAO.

Mr. DERVILLE. I have a little over 30 years' experience with the Federal Government and outside of the Federal Government.

Most of my experience prior to here has been with the executive branch of the Federal Government. My last Government position before this was “Deputy Chief Financial Officer" for the Department of Veterans Affairs.

I am a Certified Public Accountant. I am a Certified Government Financial Manager, and I have experience both on the industry side as well as the government side of financial management.

I also worked at the Health Care Financing Administration for about 7 years as the Deputy Director for program operations of the Medicare and Medicaid programs.

Mr. WALSH. Well, compared to the health care budget in the country, this should be a snap.

Mr. DERVILLE. Yes, sir.

Mr. EAGEN. Mr. Chairman, if I could, I would like to also introduce Tim Campen, who is the new director of House Information Resources and is seated behind us.

Mr. WALSH. The practice for these hearings is that the CAO will present the overall budget statement which has already been supplied to the members. Jay, in turn, will ask for House officers and others present to present their budgets when you get to that point. Please proceed, and we will ask questions as they arise.

MR. EAGEN'S OPENING STATEMENT Mr. EAGEN. Thank you, Mr. Chairman.

. It is a pleasure to be appearing before the subcommittee for the first time to testify on the budget for the House of Representatives.

I was appointed to the position, as you noted, on August 1st, 1997. With nearly 6 months on the job, I can say this has been both an educational and a rewarding experience in many ways.

As established at the beginning of the 104th Congress, the CAO is the chief budget officer of the U.S. House of Representatives and is responsible for the presentation of the budget before your subcommittee. We sent to the Office of Management and Budget all materials which appear in the President's annual budget.

Later in this hearing I will further outline the fiscal year 1999 budget request for the offices of the Chief Administrative Officer, and I stand ready to assist the subcommittee in any way as you work to compile the fiscal year 1999 legislative branch appropriations bill.

I recognize that you need to have complete and accurate information. We hopefully have anticipated and gathered much of that information for you already.

We look forward to working with the subcommittee on the final budget of the House of Representatives before the turn of the century.

The fiscal year 1999 estimates submitted earlier to the Office of Management and Budget are reflected in the budget to be transmitted to Congress by the President and are detailed in your Subcommittee Print.

This statement and the Subcommittee Print may be used jointly to obtain a complete picture of the budget. At the beginning of each

budget item herein, you will find a reference to a related page on the Subcommittee Print where further detail is provided.

FISCAL YEAR 1999 ESTIMATES The fiscal year 1999 request for the House of Representatives totals $765,587,600. This amount is based on statutory entitlements, full funding of authorizations, actual spending history and consultation with administrative officers. This request includes a fulltime equivalent reduction of 22 as compared with FTE's funded in fiscal 1998.

This testimony follows the same format of the appropriations bill. I will go through each individual line item in the bill and mention the current request. I invite any questions you may have, and if I am unable to respond today I will certainly provide the answer for the record in an expeditious manner.

I submit for the record a chart which itemizes the actual fiscal year 1997 expenses, appropriated funds for fiscal year 1998 and requested funds for fiscal year 1999.

I also submit for the record the balance of pages 1 through 3A. [The information follows:

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** Capitol Police Board information will be presented by the Capitol Police. Detail information is, therefore, not contained in this testimony.

'Gratuity requested for beneficiary of the late Representative Walter H. Capps.

FISCAL YEAR 1999

PAYMENTS TO WIDOWS AND HEIRS OF DECEASED

MEMBERS OF CONGRESS

(See Page 3 Subcommittee Print)

For payment to Lois G. Capps, widow of Walter H: Capps, late a Representative from the State of California, $133,600.

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