ADDITIONAL PAPERS FOR MARCH 18 1983 CCMA MEETING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85B01152R001201450061-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 21, 2016
• Document Release Date: March 5, 2008
• Sequence Number: 61
• Publication Date: March 15, 1983
• Content Type: MEMO

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MEMORANDUM FOR CABINET COUNCIL-ON MANAGEMENT AND ADMINISTRATION
FROM: RALPH BLEDSOD7 Z
SUBJECT: Additional Papers for March 18, 1983 CCMA Meeting
DATE: March 15, 1983
Attached are additional papers for the CCMA meeting now scheduled
for Friday, March 18, 1983, at 4:00 p.m. in the Roosevelt Room.
The first paper contains a series of tables with. information from
the Reform 88 First Quarter Report for FY 1983.. Some of the key
data elements will be described in greater detail by Joe Wright.
Since this is the first of what will become quarterly management
results reports to CCMA, your suggestions and comments are
encouraged.
The second paper is a revised version of the paper pertaining to
the agenda item on Federal Civilian Employment (CM#20'7). Please
substitute this March 15 (revised) version for the previous
paper on this topic. -
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(Revised March 15, 1983)
CABINET COUNCIL ON MANAGEMENT AND ADMINISTRATION
Federal Civilian Employment (CM #307)
Options for Meeting the 75,000 FTE Reduction Goal
When the FTE reduction targets for nondefense civilian employment
were set in September 1981, the baseline was 1,163,100 FTE's and
the annual targets and planned reductions were (in thousands):
FY 1981
FY 1983
FY 1984
Targets l/ .............
1,137
1,108_
1,088
Planned reductions .....
26
55
75
1/ The targets established in September 1981 for FY 1.982 and FY
1983 were modified later to provide staff to carry out high
priority initiatives of the Administration, e.g., the South
Florida anti-drug initiative.
Actual FTE employment in FY 1982 was 1,098 thousand, or 39
thousand below the target. In other words, actual FTE employment
was 3.5% below the ceilings assigned to the agencies.
The FTE ceilings assigned to the agencies during the FY 1984
budget process were, in the aggregate, about 9,000 above target
for FY 1983 and about 15,000 above target for FY 1984. The main
sources of the increases were (in thousands):
FY 1983
FY 1984
Commerce
1.6
1.5
Energy ..................
2.2
1.5
HHS .....................
Justice .................
0.7
1.5
4.0
Labor ...................
0.4
0.5
State ...................
0.6
0.9
Transportation
0.6
0.4
Treasury ................
4.2
4.2
USIA ....................
0.3
0.7
Railroad Retirement .....
1.5
1.5
Other
-4.4
-0.1
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increases reflect two factors:
the rejection by the Congress of: (a) the proposed
reorganization of Energy., and (b) the proposed
privatization of the railroad retirement system; and
Administration initiatives in other agencies, specifically:
o Commerce: Census, Patent and Trademark;
o Justice: Drug initiative, FBI;
o Labor: Job Training Partnership Act;
o State: Passports, consular workload, communications
systems;
o Treasury: IRS; and
o USIA: VOA, Democracy program.
.Failure to meet the FY 1983 and, especially, FY 1984 targets
would, of course, be embarrassing to the Administration. There
are several options for dealing with the problem.
Option 1: Reduce Ceilings Now
The Administration could revise the ceilings downward to the
initial targets. While this will be desirable in time, it would
not be advisable now for several reasons.
- Another budget review would be required, involving not just
OMB but the Budget Review Board and possibly the President
as well.
Because there are no new facts to bring to bear on the
decisions, the process would be difficult and hard-fought
and would become public.
This would create a no-win situation for the
Administration:
o creating the image that the Administration's processes
for making budget and employment decisions are
uncoordinated and haphazard;
o raising doubts in the minds of the congress about how
seriously to take the President's budget, which is
currently being reviewed by Appropriations Subcommittees
and Budget Committees; and
o leading to demands by the congress for formal
documentation (as proposed rescissions or budget
amendments) of any claimed savings.
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Option 2: Use PPSS Reports as Basis for Reviewing Employment
- -- - - -------------
Ceilings
The reports of the President's Private Sector Survey, which are
scheduled to be made sometime during the spring, are expected to
make a number of recommendations that would, if feasible, permit
the work of the Federal Government to be done with fewer
employees. These reports can be the basis for asking agencies
and OMB to review the FTE needs of the agencies, with the
objective of reducing them.
Depending upon when the reports are received, the reviews can be
planned to be completed in time for the results to be included in
the planning guidance for the 1985 Budget. New ceilings would be
given to the agencies as soon as possible and those that evolve
from the budget review process will be incorporated into the FY
1985 Budget (January 1984).
This option has the distinct advantage that the action required
to carry it out would be both logical and expected. The
Administration would be responding to serious recommendations by
a public group, and the reviews could be fitted into the budget
process. For reasons mentioned below, the delay of a few or even
several months relative to the first option does not appear to be
a serious disadvantage.
Option 3: Take the Lapse Route
It is possible that a major part of the 75,000 FTE reduction will
be achieved if a hard line is held against further increases in
the ceilings. As is noted above, the FTE reduction achieved in
FY 1982 was 39,000 more than planned. This is because there was
a lapse rate (a shortfall relative to the ceiling) of 3.5%.
Over the past several years, the lapse rate for nondefense
civilian employment has ranged. from about 0.7% to the 3.5% of FY
1982. If the lapse rate in FY 1983 is 0.8% and that in FY 1984
is 1.4%, the initial ceilings for those years--the 75,000 FTE
reduction--will be achieved. The experience of the first three
months of FY 1983 indicates that there was an implied lapse rate
of about 1.7% for the period. Assuming that neither the
Administration nor the Congress adds significantly to the agency
ceilings in FY 1983 or FY 1984, the chance that the 75,000 FTE
reduction will be achieved is better than 50-50 if we hold the
line against any further increases and try to maintain the lapse
rate. The monthly FTE reports will be followed very closely to
see whether the present trend holds. To the extent that the
Congress adds an identifiable number of FTE's, the Administration
can properly deny responsibility for a breach of the 75,000 FTE
reduction.
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Option 4: Joint Review by OMB and OPM to Reduce Ceilings Now
A fourth option is a joint review by OMB and OPM of each agency's
ceiling. The goal would be to freeze employment levels for
certain agencies, and apply partial freezes for most other
non-defense aencies. This review would, to the extent possible,
take into account current lapse experience, agency operating
plans, and potential congressional actions.
This option has the same drawbacks as Option 1.
Brief Analysis
There appears to be little risk over the next few months in
pursuing Option 3, but tight monitoring of the lapse rate would
be required. Option 2 could be pursued when the PPSS reports are
received (now expected in the spring and early summer). Options
1 and 4 would mean taking immediate action to reduce the ceilings
established in the FY 1984 Budget, which was transmitted on
January 31.
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REFORM 88 COST REDUCTION INITIATIVES--PROGRESS REPORTS
FIRST QUARTER REPORT - FY 1983
1983 Q1 Q1
Goal Goal Progress
0
Improve Cash Management
as interest
b. Tax collections .............................. * * 0.0
co Interest penalties ........................... 0.0 0.0 0.0
d. Amt bills pd 5 days early .................... 0.0 0.0 90.6
Increase Debt Collection
a. Collections.... oooooseo o e 4 o 6 6 ................ 2855.0 635.0 895.5
Surplus Property
a. DOI Sales (Acres) ............................. 20.Oa/ * 0.0
DOI Sales (Dollars)..... 10.Oa/ * 0.0
b. GSA (Pieces of Property) ...................... 386.0 * 55.0
GSA (Dollar amt sold) ......................... 369.9 * 16.7
Audit Recoveries
a. Recoveries .................................... * * 14.3
Internal Controls
a. Vulnerability Assessments ..................... 100% 100% 93.0
b. Managers w/A-123 in perform agreement......... 100% 100% 30.9
Employment Reduction
a. FTE usage.... ................. 1003930 240723 227537
Procurement Reforms .................(Activities are to be listed in progress reports.)
Publications and Audiovisuals
a. Expenditures........... 198.9 40.8 29.3
b. Reduction Actions............................. 6056 1499 1679.0
Unliquidated obligations
as Recoveries .................................... * * 1280.8
Travel Management
as Savings ....................................... 50.0 12.5 b/
Paperwork Reduction
a. Burden hours ....(1982 base 1274.5)........... 1166.6 n/a 1185.3
Space Reductions- ................(GSA has not completed planning for this initiative.)
* Goals not set.
a/ Surplus property planning estimates--not goals.
b/ Travel savings will not be available until April.
Savings July to June 1982 = $26.2 million.
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REFORM '88 COST REDUCTION INITIATIVES-PROGRESS REPORT
FIRST QUARTER REPORT - FY 1983
--------------------------------------------------------------------------------------------
-Status --01-Findings Problems Identified----- Corrective Actions
-------------------------- ----- - ---------I------------------------------------- ----------------------
_IMPROVE CASH MANAGEMENT I I
----------------- --------------------------
Interest saved Goal: None set Agencies developing None Treasury and OMB will
On target plans
start start working with
agencies to set dollar
goals in Q2.
Amount of bills paid
5 days early
Goal: Zero
On target
HHS $78.2M due to system
deficiencies
Justice $9.9M due to
informal agreements and
automation processing
problems.
Goal: None set
On target
DOD progress payments not
reported as early pay-
ments
Interest penalties because
of late payments of bills
-------------------------------
?
Goal: Zero
On target
Goal: $635.OM
Analysis
incomplete
Treasury did not
report
Practices being
modified.
DOD to continue its cur-
rent practice pending
DOD's presentation of ad-
ditional information on
its progress payment
policy by April 1, 1983
This item will not be
tracked in Q2
-Lead agencies to develop
governmentwide models
which address parts of the
credit, cycle
Increased receipts from
TEFRA will occur in 02
-Agencies need to assume
greater responsiblity for
improving debt collection
practices
-Education rate of collec-
tion increased from
$46M to iO8.9M
-Treasury collections
($738.3M) higher than
anticipated ($365M)
-VA one-time sale of loan
portfolio
Increased from $42M to
$325M.
Result of encouraging due
diligence by educational
institutions
-Collections are expected
to even out over the
year.
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REFORM '88 COST REDUCTION INITIATIVES-PROGRESS REPORT 3-14-8
FIRST QUARTER REPORT - FY 1983
-USDA's appropriation lan-
guage allows the Secret-
ary to defer payments of
principal and interest on
outstanding loans and
forego foreclosure on
delinquent loans.
-HHS funded schools not
diligent in collecting
certain student loans.
-DOL has not demonstrated
that they consider debt
collection as a top DOL
priority.
? -------------------------------
3. INCREASE SURPLUS PROPERTY SAL
-------------------------------
Sales
S
--------------
FY 1983 Plan:
GSA $369.9M
On target
-The 1984 budget proposes
to delete the moratorium
authority
-HHS has proposed guide-
lines that would limit
school's participation in
Health Profession and
Nursing Student Loans if
delinquencies exceed 5%
of loans outstanding.
-OMB will intensify its
involvement with the DOL
Office of Assistant
Secretary for Administra-
tion and Management to
obtain more cooperation/
support on the part of
top level managers.
DOI sales to begin
in Q3.
-Management goals expected
to be achieved
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REFORM '88 COST REDUCTION INITIATIVES-PROGRESS REPORT 3-14-8
FIRST QUARTER REPORT - FY 1983
----------------------------------------------------------------------------------------------------------------------------
--- I- -Status ------ 01 Findings -------- Problems Identified Corrective Actions .....
INCREASE AUDIT RECOVERIES I I I I
------------ ----------
$14.3 million
-Monitor DOI, USDA, DOD
AND NASA plans to imple-
ment systems.
0
-DOI, USDA, DOD and NASA
do not have systems to
monitor this activity
-DOD expects to have auto-
mated sytems in time for
Q2 reports
-HUD and SBA collected
less than $30,000; VA
reported zero recoveries
but will report recover-
ies in Q2
-Significant differences
between Qi reports and
agency Reports of Finan-
cial Condition
. Audits over 6 months Not due this
old, #'s of quarter
Audits over 6 months
old, $ related to
Not due this
quarter
-Encourage agencies to
increase collections
-Work with agencies to
reconcile differences
Commitments to recover I Not due this I N/A N/A I N/A
quarter
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REFORM '88 COST REDUCTION INITIATIVES-PROGRESS REPORT 3-14-8
FIRST QUARTER REPORT - FY 1983
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i e*..*.._ i na --i....- i o....`.i e...- Y.ieri+iii -A ii nnncri ivc nri-innc
-------------------------------
5. IMPROVE INTERNAL CONTROLS
-------------------------------
Assessments of units
vulnerable to fraud/waste
Actions taken to
correct vulnerability
Managers w/ A-123 activities
in performance agreements
Goal: 100
Not on target
-Lack of a standard
definition of manager.
-------------------------------
6. EMPLOYMENT REDUCTION
-------------------------------
FTE usage
7.-PROCUREMENT-REFORMS ---------
------------ --------
-------------------------------
Goal: None set
Significant
progress
-DOE reported usage
greater than 01 target,
Congressionally mandated
floors and Continuing
Resolution prohibitions
against reductions
-Implementation of
Federal Acquisition Reg-
ulation needed
----------------------
Agencies implementing
OFPP reforms
-Too soon to expect
corrective actions
-Period for establishing
performance agreements
did not occur in 01.
-Federal procurement
system inaccurate and
inflexible
---------------------------
-Increased to 78% by
January 31, 1983
-Monitor State implemen-
tation of its new
worldwide system
-Stress corrective
actions during Q2
-OMB will establish defi-
nition in A-123 revision
- DOE managers should
monitor staffing to
assure that FTE usage
is held to levels com-
mensurate with budget
and statutory require-
ments
---------------------------
-Coordinate GSA and agency
activities to improve
data quality
Agencies implementing
Goal: None set
OFPP reforms
Significant
progress
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REFORM '88 COST REDUCTION INITIATIVES-PROGRESS REPORT 3-14-8
FIRST QUARTER REPORT - FY 1983
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-Status -_wi Findings Problems Identified %,Uf"e l ve Actions
-----------------------..
------I- ------I------------------ I ----------------------------------------------------
8. CONTROL PUBLICATIONS AND
AUDIOVISUAL PRODUCTS
--------------
Goal: $40.8M
On target
-OMB approved goals not
always reflected in
agency reports
-Bulletin 82-8 will be
revised to require update
of goals for use in Q2
9. REDUCE UNLIQUIDATED OBLIGATIONS
Recoveries Goal: None set
No basis for
judgement of
status
-------------------------------
10. TRAVEL MANAGEMENT
-------------------------------
Savings
--------------
Goal: $12.5M
Appears to be
below 1982
on target
----------------------
Data not available
until April 1
-HHS does not believe
report is necessary
since it claims to have
no problems controlling
unliquidated obligations
-ED took steps to achieve
deobligations beginning
mid-January.
--------------------------
-Reporting against goal
slow due to delays in
obtaining data from
airlines.
-Savings understated due
to failure of some
airlines to report.
--------------------------
-Advised HHS that extra
review is not necessary,
however, information in
this report is needed.
-Completed development of
a management system which
will report savings by
agency and not be
dependent upon airline
data.
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REFORM '88 COST REDUCTION INITIATIVES-PROGRESS REPORT 3-14-8
FIRST QUARTER REPORT - FY 1983
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Status I 01 Findings I Problems Identified ICorrective Actions
---------------
11. PAPERWORK REDUCTION
-------------------------------
a. Burden hours authorized
Goal: 1166.6M
hours by end
of year or
-127M hrs
below 1982
Initiative is
still in pro-
cess of
development
--------------
----------------------
1185.3M hours level
achieved
Agencies are within
18M hours of end of
year target
----------------------
-Offsetting increases in
burden necessary to im-
plement TEFRA have not
been put in place.
Burden will increase
during 02 and Q3 before
it falls in 04 and
reaches end of year goal
--------------------------
---------------------------
- Work with GSA to
complete planning.
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