FRIDAY, FEBRUARY 24, 1984.

BUREAU OF GOVERNMENT FINANCIAL OPERATIONS

WITNESSES

CAROLE J. DINEEN, FISCAL ASSISTANT SECRETARY, DEPARTMENT OF THE TREASURY

WILLIAM E. DOUGLAS, COMMISSIONER, BUREAU OF GOVERNMENT FINANCIAL OPERATIONS

IRVIN E. FAUNCE, JR., DEPUTY COMMISSIONER, BUREAU OF GOVERNMENT FINANCIAL OPERATIONS

MITCHELL A. LEVINE, ASSISTANT COMMISSIONER, COMPTROLLER, BUREAU OF GOVERNMENT FINANCIAL OPERATIONS

MARCUS PAGE, DIRECTOR, SYSTEMS DEVELOPMENT TASK FORCE, BUREAU OF GOVERNMENT FINANCIAL OPERATIONS

KAROL FORSBERG, BUDGET OFFICER, BUREAU OF GOVERNMENT FINANCIAL OPERATIONS

BIOGRAPHY Of Carole DinEEN

Secretary Donald T. Regan appointed Carole Jones Dineen, 41, of New York City to be Fiscal Assistant Secretary of the Department of the Treasury, effective March 14, 1983.

As Fiscal Assistant Secretary, Ms. Dineen will oversee the Treasury Department's management of the U.S. Government's financial operations, cash management for the U.S. Government, raising money to finance government debt, directing the performance of the fiscal agency functions of the Federal Reserve Banks and handling the investments of the multi-million dollar trust and other accounts of the U.S. Government.

Secretary Regan said: "Carole's strong line management and banking skills, her experience with computerized financial operations, and her accomplishments in two important service industries qualify her superbly for the demanding and complex responsibilities she will be undertaking at Treasury.

"Carole will play a major role in modernizing the government's financial operations. And, under the President's Reform 1988 program, Carole Dineen is being designated as the head of all cash management activities for the Federal Government. I am confident she will bring the same modern management techniques to the Federal Government that she has introduced in private industry. We are delighted to have her."

Ms. Dineen has been a Vice President at the Bankers Trust Company in New York in three different capacities during the past five years. She was responsible for Money Transfer Customer Service, Deposit Accounting and Commercial Account Operations. Before that she was with Trans World Airlines for ten years, last as the manager of operations at JFK Airport in New York. Ms. Dineen graduated from the honors program of Brown University in Providence, Rhode Island.

BIOGRAPHY OF MITCHELL A. LEVINE

Mitchell A. Levine, a career civil servant, was appointed Assistant Commissioner, Comptroller of the Bureau of Government Financial Operations, effective September 4, 1983.

Mr. Levine holds a B.A. degree in political science from Grinnell College, Grinnell, Iowa. He also received his M.A. degree in economics from the University of

Maryland. He has attended numerous specialized programs in budget analysis, cost analysis, systems analysis, executive management and internal controls.

Mr. Levine entered the federal service with the Department of the Navy in 1964 as a management intern. In 1965, he became a budget analyst with the Strategic Systems Project Office and later held a series of progressively more responsible positions in the areas of budget, program analysis, and operations research. In October 1976, Mr. Levine joined the Customs Service as the Assistant Director, Budget Planning Division.

In 1978, Mr. Levine accepted the position of Deputy Director for Budget for the Department of Commerce.

In August 1979, Mr. Levine returned to the Customs Service as Director, Office of Financial Management and Program Analysis where he was responsible for: budget and accounting functions, several cash management improvements and effectively completing major organizational realignments.

BIOGRAPHY OF MARCUS W. PAGE

Marcus W. Page is Director of the Government Accounting Systems Staff with the Bureau of Government Financial Operations, U.S. Treasury Department. The Bureau serves as the Government's principal disbursing agent, cash manager, financial manager and central accountant.

Previously, Mr. Page served as Director, Financial Management Division, Evironmental Protection Agency from 1979 to 1981. He joined EPA in 1970 when the agency was established and participated in the design and development of EPA's agencywide Financial Management System. During these years he served as Chief, Accounting Operations and Report Branch and Chief, Fiscal Policies and Procedures Branch.

In 1980, Mr. Page was recognized for his contribution to EPA's financial systems, reporting, and cash management when he received the Joint Financial Management Improvement Award for Exceptional and Distinguished Leadership in Public Sector Financial Management. Prior to EPA, Mr. Page held various financial management positions with the Food and Drug Administration and the Environmental Health Service, DHHS. Mr. Page has been a member of a number of intra-government special projects, including serving as Chairman, OMB Internal Control Circular Committee.

Mr. Page graduated from Duke University in 1959. He attended George Washington University from 1961 to 1965, majoring in accounting and management. In 1966, he completed a Certificate Program in Financial Management at the USDA Graduate School in Washington, DC. Mr. Page is an active speaker in the field of financial management and has published articles in various financial journals. He is a member of the Association of Government Accountants, the American Association for Budget and Program Analysis, and the Planning Executives Institute, serving as President of the Capital Chapter of PEI in 1976. Also, he is listed in Who's Who in Finance and Industry.

BIOGRAPHY OF KAROL A. FORSBERG

Karol A. Forsberg was appointed Budget Officer for the Bureau of Government Financial Operations, effective February 19, 1984.

Ms. Forsberg, 32, holds a Bachelor of Science Degree from Indiana University of Pennsylvania. Since joining the Federal Government, she has participated in a wide range of resource management courses such as advanced budget analysis, macro-economics and executive management seminars.

In 1977, Ms. Forsberg entered the Federal service with the Treasury Department as a budget analyst for the Office of the Secretary. During her four years with the Office of the Secretary, she was responsible, at one time or another, for most of the major programs and many of the accounts. Ms. Forsberg joined the Department of Energy in 1980 and had budgetary responsibilities for a major portion of the Conservation and Renewable Energy Program. In September, 1981, she returned to Treasury to accept a senior budget analyst position with the Comptroller of the Currency which involved oversight of the Bank Assessment fund. While serving in this position, Ms. Forsberg received a Special Achievement Award.

Ms. Forsberg assumed supervisory responsibilities in 1982, for internal budget functions for the Bureau of Government Financial Operations.

Mr. ROYBAL. The committee will come to order.

The committee is in session this afternoon to hear from the Bureau of Government Financial Operations with regard to their 1985 budget.

ASSISTANCE TO COMMITTEE

Before starting the hearing, I would like to again thank the bureau for the help that it has provided to the committee by detailing one of its employees to assist the committee in a rather complex accounting project. On behalf of the chairman of the full committee, Mr. Whitten, I would like to say that we greatly appreciate your assistance. I am sure that you missed having this fine worker in your bureau, you missed him while he was here, as he was detailed to serve us. He has been most helpful to us, and we thank him most profusely. He has done such an excellent job and is now so familiar with the project that I hope you will continue to make his services available to us.

Mr. DOUGLAS. We appreciate the kind words, sir, and we are happy to be able to be of some assistance to you, and we will in the future be very responsive.

Mr. ROYBAL. Thank you very much.

Mr. Douglas, will you now please proceed in any manner that you may desire.

Mr. DOUGLAS. If I may, Mr. Chairman, Fiscal Assistant Secretary Dineen has a short statement that she would like to make.

Mr. ROYBAL. Mrs. Dineen, will you please proceed.

Mrs. DINEEN. Mr. Chairman, it is a pleasure to be here today to discuss the resource requirements of the Bureau of Government Financial Operations. The bureau has embarked upon an ambitious modernization effort that is designed to assure replacement of obsolete systems, improve the performance of existing systems, and assure the systematic integration of future improvements. These projects affect major government operations-payments, collections, accounting, reporting and cash management.

The bureau is significantly changing and improving its operating systems in order to acquire the latest technological mechanisms available in the financial community for the movement of funds and financial information. Of particular interest are the cash management initiatives which when implemented, will recover hundreds of millions of dollars in annual interest savings.

These initiatives will recover over $800 million in interest savings in fiscal year 1985 alone. This means that the return on investment applied to these initiatives is more than $20 for every $1 spent in fiscal year 1985. An additional $4 billion in interest savings is projected for fiscal year 1986 through 1988 causing the return on investment to increase manyfold in the years ahead.

In fiscal year 1985, the bureau will be earning a high return on its investment while concurrently spending less money and reducing the total number of average positions required. Resource requirements are $239,908,000 and 2,327 average positions. This is the second consecutive year in which our request and number of average positions have decreased, reflecting improved efficiency and economy of operations for the Bureau. With this request the bureau will have the resources necessary to fulfill its mission.

Commissioner Douglas will now present his opening remarks after which we will both be happy to answer any questions from the committee.

Mr. DOUGLAS. Mr. Chairman, it is with pleasure that I am able to report to you that we are again asking for a decrease in resources with an appropriation request of $239,908,000, and 2,327 average positions. This is a reduction of $87,000 and 166 average positions. Yet we are still able to invest in major systems improvements, as Secretary Dineen was just saying, that will continue to generate significant savings in the future. In recognition of limitations placed on your valuable time, and with your permission, I would now like to submit my general statement and supporting charts for the record, and address any specific questions which you might have.

Mr. ROYBAL. Thank you, Mr. Douglas. Your entire statement will be included in the record at this point.

Mr. DOUGLAS. Thank you, sir.

[The statement of Mr. Douglas follows:]