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such dwellings or sections or parts thereof, and the Administrator may consent to the removal or release of such plant from the lien of the mortgage upon such orms and conditions as he may approve; and

(3) involve a principal obligation in an amount

(A) not to exceed 90 per centum of the amount which the Administrator estimates will be the value of the completed property or project, exclusive of any plant of the character described in paragraph (2) of this subsection located thereon, and

(B) not to exceed a sum computed on the individual dwellings comprising the total project as follows:

(i) $8,100 or 90 per centum of the valuation, whichever is less, with respect to each single-family dwelling, and

(ii) $12,500 or 90 per centum of the valuation, whichever is less, with respect to each two-family dwelling.

with respect to the insurance of advances during construction, the Administrator is authorized to approve advances by the mortgagee to cover the cost of materials delivered upon the mortgaged property and labor performed in the fabrication or erection thereof; and

(4) provide for complete amortization by periodic payments within such term as the Administrator shall prescribe and shall bear interest (exclusive of premium charges for insurance) at not to exceed 4 per centum per annum on the amount of the principal obligation outstanding at any time. The Administrator may consent to the release of a part or parts of the mortgaged property from the lien of the mortgage upon such terms and conditions as he may prescribe and the mortgage may provide for such release.

(c) Preference or priority of opportunity in the occupancy of the mortgaged property for veterans of World War II and their immediate families and for hardship cases as defined by the Administrator shall be provided under such regulations and procedures as may be prescribed by the Administrator.

(d) The provisions of subsections (c), (d), (e), and (f) of section 608 shall be applicable to mortgages insured under this section.

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STUDY OF PERSONNEL OFFICES IN THE EXECUTIVE DEPARTMENTS AND AGENCIES OF THE GOVERNMENT

MARCH 22, 1948.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. REES, from the Committee on Post Office and Civil Service, submitted the following

PRELIMINARY REPORT

PURPOSE AND SCOPE OF STUDY

Pursuant to authority provided in House Resolution 176, approved June 5, 1947, the Committee on Post Office and Civil Service is conducting a survey and study of personnel functions and activities in the departments and agencies of the executive branch of the Government.

The purpose of this study is to determine the present functions and activities of personnel organizations and units in the Federal Government, and to analyze their cost and efficiency.

The committee is aware of a great expansion in the activities and costs of the personnel offices in the various departments and agencies. Although some agencies have reduced personnel and others have been entirely liquidated, this study shows that personnel organizations are either expanding or are being curtailed at a rate far below the rate of other personnel reductions in the departments and agencies which such personnel units serve.

This preliminary report is submitted to the Congress prior to the completion of the current study, for the reason the facts thus far developed are of such importance as to justify their immediate consideration in connection with appropriations for the personnel functions in the various departments and agencies.

FINDINGS

On the basis of the survey and study the following facts have been established:

Since January 1, 1940

1. The number of employees engaged in personnel activities on a full-time basis in the executive branch has more than tripled while Federal employment as a whole has doubled.

1

(a) On January 1, 1940, the number of full-time personnel employces in the executive branch totaled 6,721, whereas, Federal employment at that time was 936,689.

(b) As of September 30, 1947, the full-time personnel employees of the Federal Government totaled 24,288, whereas total Federal employment had reached 2,022,846.

(c) This is an increase of 17,567 full-time personnel employees, or an increase of 261 percent. During the same period total Federal employment made a net increase of 115.8 percent. 2. Total Federal expenditures for the salaries of these full-time personnel employees is 6 times what it was in 1940.

(a) On January 1, 1940, the annual salary cost of full-time personnel employees in the Federal Government was $13,094,

210.16.

(b) On September 30, 1947, the annual salary cost of full-time personnel employees in the Federal government was $78,627,183.83.

(c) This represents an increase in expenditures of $65,532,973.67 for this purpose, or an increase of 492.6 percent.

3. In addition to full-time personnel employees mentioned above, thousands of nonpersonnel employees perform personnel functions in the operating bureaus and divisions of the Federal government outside of the personnel offices.

(a) On September 30, 1947, 43,785 nonpersonnel-office employees were performing personnel functions outside of the personnel offices.

(b) The time devoted to personnel work by such nonpersonnel employees was equal to 3,206 man-years in 1947.

(c) The adjusted annual salary cost of such nonpersonnel employees, which is properly chargeable to personnel activities, equals $10,905,179.32.

4. The ratio of full-time personnel employees to total civilian employment has increased sharply since 1940.

(a) In 1940 there was I full-time personnel employee for every 139 Federal employees.

(b) At present, there is 1 full-time personnel employee for every 83 Federal employees.

(c) The prevailing Federal ratio of 1 full-time personnel employee to every 83 employees is extremely high in comparison to the current ratio of 1 full-time personnel employee to every 226 employees found in industry and commerce.

5. The average annual salary of full-time personnel employees has also sharply increased since 1940.

(a) In 1940, the average annual salary of full-time personnel employees was $1,948.25.

(b) On September 30, 1947, the average annual salary of fulltime personnel employees was $3,237.29.

(c) This represents an average salary increase of $1,289.04 or 65.6 percent.

RATIO OF PERSONNEL EMPLOYEES TO TOTAL FEDERAL EMPLOYMENT

This study reveals a steady increase in the number of full-time personnel employees in relation to the total number of civilian employees in the executive departments and agencies.

On January 1, 1940, total civilian employment in the Federal Government was 936,689. The number of full-time personnel employees on that date was 6,721. The ratio of full-time personnel employees to total Federal employment was 1 to 139. (See table 1 p. 13.)

On September 30, 1947, total civilian employment was 2,022,846. The number of full-time personnel employees had increased to 24,288. The ratio of full-time personnel employees to total Federal employment had increased to: 1 to 83.

The net increase in total employment during the period from January 1, 1940, to September 30, 1947, was 115.9 percent, whereas the net increase in full-time personnel employees was 261.3 percent. These increases are further emphasized by the fact that additional thousands of part-time personnel employees are supplementing the work of full-time personnel employees.

An analysis of the figures submitted by several agencies shows the wide variance and the lack of standards between the executive departments and agencies relative to the number of personnel employees required.

The National Labor Relations Board reports more full-time personnel employees in relation to total employment than any other agency. As of September 30, 1947, the National Labor Relations Board had 1 full-time personnel employee for every 41 employees.

On January 1, 1940, the Reconstruction Finance Corporation had 1 personnel employee for every 72 employees. It reported to the committee that it now has 1 full-time personnel employee for every 45 employees.

In 1940, the Department of National Defense Agencies report 1 full-time personnel employee for every 87 employees. Now the ratio is 1 to 57. Notwithstanding the demobilization of the armed services and sharp over-all reductions in civilian personnel, total civilian employees in the Departments of the Army and Navy and the Air Forces shows a net increase over 1940 of 277 percent. During the same period full-time personnel employees in the combined armed services showed a net increase of 477 percent.

In 1940 the Department of State showed a ratio of full-time personnel employees to total employees of 1 to 183. Now the ratio is 1 to

79.

The Department of Labor, which in 1940 maintained a ratio of 1 full-time personnel employee to 93 employees, now reports 1 fulltime personnel employee to every 49 employees. The Federal Security Agency, which operated in 1940 with an average of 1 fulltime personnel employee to each 128 employees, now requires 1 fulltime personnel employee for every 87 employees.

The Veterans' Administration on January 1, 1940, had 394 fulltime personnel employees servicing a total Veterans' Administration pay roll of 38,835, for a ratio of 1 to 99. On September 30, 1947, total employment in the Veterans' Administration was 203,938, an increase of 433.3 percent; whereas, the number of full-time personnel employees in the Veterans' Administration had increased to 3,778, or an increase of 859 percent. The ratio of full-time personnel employees to total employment had increased to 1 to 54.

In contrast to the foregoing, the Department of Commerce reports 1 full-time personnel employee for every 86 employees at the present time, whereas, in 1940, the Department had 1 personnel employee for every 61 employees, during a period in which employment had

increased over 200 percent. The Department of Agriculture shows decreases in both total employment and the number of full-time personnel employees. In 1940 the ratio of full-time personnel employees to total employees in the Department of Agriculture was 1 to 81. At the time this study was made it was 1 to 92.

The Post Office Department in 1940 used 151 full-time personnel employees to service a total employment of 298,137. This was a ratio of 1 full-time personnel employee to 1,974 employees. As of September 30, 1947, full-time personnel employees in the Post Office Department numbered 288 and total employment was 457,175, for a ratio of 1 full-time personnel employee to 1,587 employees.

Agencies showing a high rate of full-time personnel employees to total employment are

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A comparison of total employment and ratio of personnel employees by departments and agencies, 1940-47, is shown in table 1.

EXPENDITURES FOR SALARIES OF FULL-TIME PERSONNEL EMPLOYEES

Federal expenditures for annual salaries of full-time personnel employees increased from $13,094,210.16 in January 1940 to $78,627,183.83 in September 1947, or by $65,532,973.67-492.6 percent. (See table 2, p. 15.)

A comparison of salary costs of full-time personnel employees in individual departments and agencies for the period from January 1940 to September 1947, shows the following wide variations.

The Veterans' Administration increased its January 1, 1940, salary cost for full-time personnel employees from $915,260 to $11,954,163.54 as of September 30, 1947, a net increase of $11,038,903.54, or 1,206 percent

The annual salary cost of full-time personnel employees in the Departments of the Army, Air Forces, and Navy, leaped from $4,700,048 in 1940, to $46,514,785.33 as of September 30, 1947, an increase of $41,814,737.33, or 764.3 percent.

The Department of State, as of January 1, 1940, paid total annual salaries of $85,820 to full-time personnel employees. At the time of this study the State Department's annual pay roll for full-time personnel employees had increased $933,063 to $1,018,883, or 1,087.2 percent.

The National Advisory Committee for Aeronautics had an annual pay roll for its full-time personnel employees of $18,240 on January 1, 1940. By September 30, 1947, this had increased $328,845.44 to $347,085.44 or 1,802.8 percent.

Increases of over 400 percent were made during the period in the pay roll of full-time personnel employees of the Federal Communications Commission, Federal Security Agency, and the General Accounting Office. Increases of over 300 percent were made by the Bureau of the Budget, Reconstruction Finance Corporation, and

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