B-277958

certification packages were forwarded to the NOAA Under Secretary for approval.

Subsequent to the Nws Deputy Assistant Administrator for Modernization's recommendation, the NOAA Under Secretary did not take action on the 83 certification packages sent to him in 1997. The Nws Deputy Assistant Administrator for Modernization told us that Nws plans to forward about 80 certification packages for consolidation, automation, and/or closure of offices in 1998.

Additional Developments
Relating to the "Shortfall"

Only 5 days after the Nws Deputy Assistant Administrator for Modernization recommended that the 27 certification packages be held back, the NOAA Under Secretary announced on June 25, 1997, the reassignment of the Assistant Administrator for Weather Services. The NOAA Under Secretary claimed that NOAA had been receiving conflicting information from Nws on how it would provide essential weather services while recognizing that the public expects government agencies to reduce their costs. At the same time, the Under Secretary announced his intention to appoint an outside Special Advisor on Weather Services to conduct a rigorous evaluation of the Nws budget and operations.

According to the Special Advisor's subsequent October 14, 1997, report to the Secretary of Commerce," Commerce and NOAA financial management information systems, coupled with Nws' complex budget structure, budget formulation/execution policies and management processes, limit visibility of operational and overhead costs and the traceability of these costs to products and services. The Secretary of Commerce later announced on October 23, 1997, that he plans to hire a chief financial officer for Nws to address the need for management and budget reforms. NOAA's Chief of Audit and Internal Control told us that the department is currently reviewing the position description for the NWS Chief Financial Officer and intends to advertise for it soon.

Lastly, the Special Advisor felt that the fiscal year 1998 proposed budget and the 1999 department submission to OMB contained inadequate base funding. He recommended to the Secretary that the fiscal year 1998 budget for Nws be $680 million to provide essential public services and complete

"See footnote 3.

B-277958

Agency Comments

modernization activities. 15 The Congress enacted appropriations that provided about $668 million in November 1997.16

In commenting on a draft of this report, the Department of Commerce
stated that the report accurately reflected the events surrounding the fiscal
year 1997 budget and acknowledged that we had conducted thorough
work in researching and documenting the complex events and issues
included in the report. For additional clarity in the report, the department
provided several technical comments and changes that have been
incorporated into the report as appropriate.

As agreed with your offices, unless you publicly announce the contents of this report earlier, we plan no further distribution until 15 days from the date of the report. At that time, we will send copies to the Chairmen and Ranking Minority Members of the Senate Committee on Commerce, Science, and Transportation; the Senate and House Committees on Appropriations; the Senate Committee on Governmental Affairs; and the House Committee on Government Reform and Oversight; and the Director, Office of Management and Budget. We will also send copies to the Secretary of Commerce and to the Administrator of the National Oceanic and Atmospheric Administration. Copies will also be made available to other parties upon request.

Enclosed is a copy of the Department of Commerce's comments on
the General Accounting office's draft report entitled, "National
Weather Services Events Surrounding Piscal Year 1997 Budget",
As denoted, for additional clarity, three technical comments are
provided, plus a correction to the table on page 14.

We believe the draft report accurately reflects the events
surrounding the fiscal year 1997 budget, and we would like to
acknowledge the thorough work conducted by the General Accounting
office in researching and documenting the complex events and
issues included in this comprehensive report.

These comments vere prepared in accordance with the Office of
Management and Budget circular A-50.

Appendix I

Comments From the Department of
Commerce

Now on p. 2.

See comment 1.

Now on p. 8.

See comment 2.

Now on p. 8.

See comment 1.

Now on p. 11.
See comment 1.

Commenta on 640 Draft Raport _620/ATID=22-62

General Comments - Throughout the document titles of NOAA
officials are not capitalised.

Page 3 - Bované Jaragraph – For accuracy and further
clarification, and to provide important background information
about the relationship between unfilled vacancies and the
certification packages, please insert the following after "
bas assumed that these vacancies would be filled when the
certification packages vere forwarded to NOAA for approval."

However, the certification packages, as submitted by
the mis on April 22, 1997, did not indicate that there were
vacancies in these offices which would preclude proceeding
with certification nor was a link made at that time between
the ability to proceed with the certification process and
the need for reprograming approval by Congress.

Page 14 - The Table entitled "Figure 2: Budget "Shortfall"
Amounts Reported to the Congress is slightly in error. The
February 1997 Briefing column should include an entry of
$5.0 million within the element entitled, "Costs associated
with personnel separations," making the new column $32.5 million.
The Mus did in fact include personnel separation costs in the
February briefing to Congress. Specifically, the costs were
listed on page of the ins February briosing in the table
entitled "Planned Program Actions for Addressing The FY 1997
Change in Funding Available. The entry was listed as a
$5.0 million offset entitled "FY 1997 Projected Buyout/RIP
Costs."

Page 14 - Footsete "a" - For accuracy and clarity, the reductions in staffing taken in the national capital area included not only reductions in is central headquarters activities, but included some staff reductions in centralized operations activities that are also located in the national capital area.

Page 18 - Top of the page - For further clarification, and to provide important background information about the critical unfilled vacancies addressed in pages 19-21, please insert the following sentences after ...permanent change of station costs by $6.6 million.

In addition, the Wis held field office operational vacancies as they occurred throughout fiscal year 1997 for the purpose of using those vacancies to place employees, mitigating the negative impacts of a planned major reduction-in-force. The length of time these operational position vacancies remained unfilled Increased the critical need to fill the positions.