STATEMENT OF JOAN S. WALLACE Mr. Chairman, it is a privilege to be here today to discuss the fiscal year 1979 budget request for Departmental Administration and the Working Capital Fund. The appropriation for Departmental Administration provides funding for the Department level staff offices which are responsible for leadership and coordination of the Department's: -- budgetary affairs, program planning and evaluation, management to Howard Hjort); -- administrative staff and support services in the areas of finance, real and personal property, contracts, and management of our ADP resources; -- personnel management program; and -- equal opportunity responsibilities. I This appropriation also includes funding for the Department's public information and governmental affairs programs. Mr. Webster will present a separate statement covering the budget request for these activities. will present the budget for the remaining activities financed under Departmental Administration and the Working Capital Fund. STAFF OFFICE INITIATIVES Before discussing the specifics of the 1979 budget request, I would like to take this opportunity to discuss my own management philosophy. I see the Departmental Administration as the support systems that serve the agencies so that they may provide the maximum in service delivery to the farmers and other constituents. Administration cannot exist in a vacuum, but only as it relates to the agencies and programs. Thus, I have found the Management Council an effective group with which to work for enhanced communication and for a team approach to strengthening USDA management. My goals are to develop efficient systems that are responsive to people problems; and that are used in an integrated way wherever needed. The following items are representative of some of the activities in which we are involved: - Reorganization of Operations and Finance. On October 5, 1977, - Office of Operations and Finance. The purpose of this Space and property management. One area in which I plan to remain personally involved is the improvement of property management in the Department of Agriculture. However, I have found a severe shortage of useful information for the - on the location, cost, condition and utilization of physical property owned or controlled by the Department. We do know that inequities exist in space assignments. We are aware of specific cases of extreme overcrowding, and cases of excess space. Staff visits to USDA field offices also reveal extreme variations in the quality of USDA office and laboratory space. We believe there are many opportunities to better use available motor vehicles, and office and laboratory equipment. Further, we are unable to respond promptly to Congressional and other requests for overall information on property under USDA control. Some USDA agencies do have comprehensive information on which to base decisions relating to motor vehicles, other personal property and real - property. Others do not. We are developing a Departmentwide system which will permit us to compare property utilization among agencies, better pinpoint problem areas and respond properly to external requests. The Central Accounting System being implemented at the National Finance Center will provide the vehicle for gathering and processing the necessary data. - Equal Employment Opportunity. I have been concerned about the problems of equal employment opportunity. USDA has had a poor record in this area, We currently have two interagency Personnel management. In the area of personnel administration, there are several initiatives underway. As part of an effort to speed the process used to examine job applicants and improve the quality of personnel selections, the Civil Service Commission has delegated some of its examining functions. As a result of negotiations with the Commission, three agencies in USDA have assumed responsibility for examining for positions for which they are the primary users. ARS has assumed responsibility for examining for USDA research positions at grades GS-9 through 12. Their program is currently operational. SCS is assuming responsibility for examining for Soil Conservationists, Soil Scientists, and Range Conservationists; FmHA is assuming responsibility for examining for Agricultural Management Specialists. Safety. The area of the safety and health of our employees was studied recently by an interagency interdisciplinary task force. When I joined the Department three months ago, I received their report which documented the need for a program capable of maintaining safety standards and reducing health hazards. The Occupational Safety and Health Act of 1970 also affirms federal presentation has been made to the Secretary and Assistant Secretaries and a plan is currently being developed. Fiscal Year 1979 Budget Request The fiscal year 1979 budget request for Departmental Administration is $16,700,000, an increase of $1,371,000 above the fiscal year 1978 estimate. The major portion of this increase, $1,258,000, is for the Office of Governmental and Public Affairs and includes $810,000 for financing thirty-one positions currently occupied by personnel detailed from other agencies; $80,000 for financing mandatory printing responsibilities as directed by the Joint Committee on Printing; $365,000 for inflationary printing costs for the Yearbook of Agriculture; and $3,000 for annualization of the 1978 pay increase. Mr. Webster will present a more detailed explanation of these items in his statement. The increases requested for the remaining staff offices are to provide for nondiscretionary cost increases including $101,000 for GSA space rental and $12,000 for annualization of the 1978 pay increase. WORKING CAPITAL FUND The Working Capital Fund, established in 1944 by the Agricultural Appropriations Act, continues to finance those functions which the Secretary determines can be performed more advantageously as central services. The 1979 budget proposes no additions or deletions in the types of services which were provided under the Working Capital Fund during fiscal years 1977 and 1978. These services include: - central payroll, personnel, accounting, voucher payments, and motion picture, photographic and other visual information services; other central services such as supply, duplicating, mail and messenger, and certain personnel training programs. In response to the concern which this Committee continues to express regarding the size of the Working Capital Fund and the resulting financial impact on USDA's program agencies, the Department continues to follow those planning and budgeting procedures which were developed to assure that the services provided under the Fund meet the needs of the agencies at the lowest possible cost. Fund proposals are reviewed prior to the beginning of each fiscal year to assure cost and operational effectiveness and efficiency. Each staff office is required to fully justify all services provided by the Fund. No funds are transferred from the agencies to the Working Capital Fund without the approval of the agency administrator. In addition, we have continued to keep the Committee fully informed regarding Working Capital Fund activities through the use of quarterly reports and the provision of a detailed budget presentation as a part of our Explanatory Notes. The 1978 Agricultural Appropriations Act included a limitation on Working Capital Fund obligations of $54,000,000. The current estimate anticipates that obligations amounting to $53,871,000 will be incurred during fiscal year 1978. The recommended limitation on Working Capital Fund obligations for for fiscal year 1979 is $58,043,000, an increase of $4,172,000 above the current estimate for fiscal year 1978. This increase relates to specific Working Capital Fund activities as follows: NATIONAL FINANCE CENTER The National Finance Center, located in New Orleans, Louisiana, operates a financial management information system for the entire Department of Agriculture. This system includes the following major Departmental functions: Two major initiatives are currently underway at the National Finance Center. The first involves the conversion of existing systems to new thirdgeneration computer equipment. The current equipment does not have sufficient |