Requirements and standards in this Directive are reflected in the performance standards of ETA individuals responsible for carrying out these functions and tasks.

A good example of implementation of provisions contained in this Directive is the conditions under which awards were made to Migrant and Seasonal Farmworkers grantees for Fiscal Year 1982. ETA requested the Office of Inspector General to conduct special systems reviews of 13 applicants for refunding. OIG reviewed 11 specific areas considered to have a significant bearing on the applicant's ability to successfully operate a program. These areas included procurement, cost allocation procedures, overall accounting and financial management systems, documentation retention, and organizational structure. The review rated six of the applicants as unacceptable in one or more of the 11 areas. Four of the six applicants were refunded contingent upon implementation of corrective action plans. The remaining two applicants were not refunded.

AUDIT RESOLUTION AND FOLLOWUP SYSTEM

Question: What new auditing procedures have you installed or do you recommend to prevent future build-ups or unresolved audits?

Answer: The Department of Labor has developed an Audit Resolution and Follow-up System which is designed to maximize the use of audits as a management tool, identify major problems, ensure timely resolution and implementation of audit recommendations, and provide needed management information.

The Department is now resolving questioned costs in a timely manner. At September 30, 1981, there were only 8 unresolved audits over six-months old (containing $9.7 million in questioned costs). At March 31, 1982, there were only 10 unresolved audits in this category ($2.1 million in questioned costs). All of these audits missed the 180-day deadline because of legitimate extenuating circumstances, such as active investigations. The Office of Inspector General tracks the resolution process very closely and is quick to notify management when an audit begins to approach the deadline.

SUBCOMMITTEE RECESS

Senator ABDNOR. Our subcommittee is going to recess until 1:30 p.m. and will be meeting in this room to discuss funding for the Occupational Safety and Health Administration, the Mine Safety and Health Administration, and the Bureau of Labor Statistics.

I thank all our witnesses today.

We stand in recess.

[Whereupon, at 11:20 a.m., Thursday, April 22, the subcommittee was recessed, to reconvene at 1:30 p.m. the same day.]

(AFTERNOON SESSION, 1:45 P.M., THURSDAY, APRIL 22, 1982)

OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION

STATEMENT OF THORNE G. AUCHTER, ASSISTANT SECRETARY

ACCOMPANIED BY:

DAVID C. ZEIGLER, DIRECTOR, DIRECTORATE OF ADMINISTRATIVE PROGRAMS

MICHAEL TURNER, OFFICE OF POLICY, LEGISLATION AND INTERAGENCY PROGRAMS

MARY ANN WYRSCH, DIRECTOR, OFFICE OF BUDGET

SUBCOMMITTEE PROCEDURE

Senator SCHMITT [presiding]. The subcommittee will come to order. I apologize for being a little bit late. This session of our hearings on Labor Department budget requests deals with two mildly controversial agencies the Occupational Safety and Health Administration, or OSHA, and the Mine Safety and Health Administration, or MSHA. We will also receive testimony from the Bureau of Labor Statistics.

We will begin with the Assistant Secretary, Thorne Auchter, who, for the last year, has been grappling to improve workplace safety and health, despite the negative image which the acronym OSHA often invokes.

Then we will hear testimony from Ford B. Ford, Assistant Secretary for MSHA. Following Mr. Ford's testimony, we will hear from Ms. Janet Norwood once again as Commissioner of the Bureau of Labor Statistics.

Mr. Auchter, would you please introduce your associates and proceed with your opening statement.

INTRODUCTION OF ASSOCIATES

Mr. AUCHTER. Yes, sir, Mr. Chairman. We appreciate the opportunity to be with you today. On my left is David Zeigler, who is Director of administrative programs. On my right is Michael Turner of our Office of Policy, Legislation, and Interagency Programs. And on my far right is Mary Ann Wyrsch, Director of the Departmental Office of Budget. Mr. Chairman, I have a formal statement that I would like to submit for the record, and I will briefly summarize, if that's OK with you. Senator SCHMITT. That's fine. Your entire statement will be in our record.

SUMMARY OF STATEMENT

Mr. AUCHTER. All right, sir. Our budget request for fiscal 1983 is $206,256,000, which is an increase of $10,791,000 over the estimate for

1982. The request provides for program increases totaling $6,340,000, plus net built-in changes amounting to an additional $4,451,000. We are requesting no change in the number of positions.

Our overall agency goal is to provide leadership and assistance for the improvement of workplace safety and health conditions through a comprehensive program of government and private sector activities which affords full and balanced use of the authority vested in OSHA by the Congress.

OSHA's budget request is an expression of these priorities: to promulgate safety and health standards that are clear, precise, feasible, and enforceable through a comprehensive review of existing standards, the promulgation of new or revised standards, and the utilization of professional and scientific expertise in the private sector.

In Federal enforcement, OSHA has begun to improve the targeting of safety inspections in the workplace by identifying and inspecting firms where the most serious safety hazards exist, by identifying and inspecting the most hazardous areas within these firms, and by identifying high hazard manufacturing industries with lost workday injury rates that are worse than the national average for all manufacturing industries.

OSHA is currently examining ways to improve the targeting of health inspections as well.

In the area of State programs, our request is for current services funding for program grants with increases totaling $4.2 million to cover one-half the rise in State operating costs. In addition, OSHA is developing an improved monitoring system, and establishing uniform standards to be implemented throughout all of the States.

In the area of technical support, a program increase of $750,000 is requested for regulatory analyses to be undertaken for existing and proposed standards as required by Executive Order 12291 and the Regulatory Flexibility Act.

For compliance assistance, a program increase of $5.1 million is requested for increasing the availability of consultation services. In addition, a program increase of $520,000 is requested for professional training of Federal and State compliance officers.

The request in the area of safety and health statistics will allow a continuation of basic statistical activities. Under executive direction and administration, the budget request will allow this activity to continue to provide effective leadership, direction, and management of agency resources, as for example, the new integrated management information system.

Mr. Chairman, thank you for this opportunity to be with you today and I'll be glad to answer any questions that you may have.

TRAINING FUNCTION

Senator SCHMITT. Well, thank you. According to press reports, you are planning to move the Office of Education and Training from its Washington, D.C. headquarters to Des Plaines, Iowa. Des Plaines? OK, well, it's Des Moines, N. Mex., so I tried. I tried. [Laughter.]

No, I'm serious. There is a Des Moines, N. Mex. It's a whistle stop, practically, on a road up in the northern part of the State.

What is the rationale for this move?

Mr. AUCHTER. Mr. Chairman, we took a look at the way the whole agency functions, and have been for the last year. We have both a national office and field reorganization commencing. The national office reorganization involves the move of the Office of Training and Education to OSHA's training institute in Des Plaines, Ill., right outside of Chicago, for a couple of reasons.

One, I believe that the individuals who are responsible for the development of the curriculum should be located in the same place as those folks who are responsible for the delivery of the curriculum, so that they can share and exchange ideas on a regular basis. That has not been done in the past.

I think that the staff that's responsible for planning training programs should be in direct contact with the instructors, as well as the students, to have the opportunity to observe those programs that they have designed and see how they operate.

I think that it will provide better coordination between the training institute's staff and the Office of Training and Education, which is responsible for curriculum development.

And for those reasons, we think it's a move that makes an awful lot of sense.

Senator SCHMITT. Does any of the work of the office depend on experts who are with other aspects of OSHA in Washington or other Federal agencies?

Mr. AUCHTER. I'm sure it would from time to time, yes, sir. We have an emphasis program that we're putting together right now on the training institute. As I said, it's located in Des Plaines. It's actually probably 3 or 4 miles from Chicago's O'Hare International Airport. It's a terrific location for us. We can bring people in there very easily from all over the country. We serviced nearly 4,000 individuals through the OSHA institute last year. This is not a small operation.

In addition to that, we provide training and education for our consultation program personnel, which we do through all the 50 States and 6 U.S. jurisdictions. We also provide training for State plan compliance officers. It seems to me to make an awful lot of sense to have all those folks involved at one focal point.

Senator SCHMITT. Do you expect to save money?

Mr. AUCHTER. Yes, sir, we do.

Senator SCHMITT. In what aspects of the program? Travel?

Mr. AUCHTER. The initial cost will probably be somewhere around $300,000, we think, for the transfer of the functions and positions and so forth to the institute. After that, we anticipate a savings of some $240,000 a year on an annualized basis, based on a number of factors, not the least of which is travel. In addition to that, we'll be able to consolidate other offices that we have here in Washington and move those people into the Labor Building. We have two satellite offices that we currently use. We can stop paying rent there and bring them directly into the Labor Department.

So there are a number of factors we have taken a look at.

STATE GRANTS

Senator SCHMITT. The administration has requested shifting $3.8 million from contractual studies in order to provide additional funds to the States. Do you need this transfer in order to avoid disruption of State services?

Mr. AUCHTER. Yes, sir, we certainly do. As you know, many of the States' fiscal years expire or end on June 30. We need some very rapid action on this particular part of our program to avoid any disruption of those State plans. And I'm sure if such action doesn't occur, I would think between now and the end of May, they'll have to start making plans to start laying people off because our funds will expire.

I don't know how many States are involved on that sort of basis, but, of course, the States do have different funding years and what we're trying to do is redistribute those funds. As you know, this is no increase in our budget; this is just a transfer from other parts of our program mix into the State planning area so that we can prevent any disruption there.

Senator SCHMITT. But it does require legislation. It can't be done as a reprograming.

Mr. AUCHTER. That's correct, yes, sir.

Senator SCHMITT. Why isn't it part of the urgent supplemental request if it's that kind of a timeframe?

Mr. AUCHTER. We are having a discussion with OMB currently to see if we can add to that list on the urgent supplemental basis. It is very important for the State plans.

Senator SCHMITT. Well, you'd better get them moving as fast as you can. I think the supplemental is going to start leaving this station. One never knows.

Mr. AUCHTER. I was talking to them about it yesterday, so we hope to have some action shortly.

STATE PROGRAMS

Senator SCHMITT. Are you all still fighting with New Mexico or have you worked out your problems?

Mr. AUCHTER. We are having a love-in in New Mexico, Mr. Chairman. I promise. [Laughter.]

Senator SCHMITT. Besides that kind of activity. [Laughter.]

Have you worked out the problem with the State jurisdiction over the OSHA programs?

Mr. AUCHTER. Oh, yes, sir. As a matter of fact

Senator SCHMITT. You're not fighting each other in court any more or anything like that?

Mr. AUCHTER. No, no, we've given major emphasis to State plans across the board since I took this job, and I've met with the State designees four times in the last year. The last time was in Sante Fe, by the way. I'm getting ready to meet with them again in May. So we have a good ongoing dialog and as a result of that dialog, we have eliminated dual enforcement in State plan States. We have cut our numbers