CG Budget and Fiscal - Contractor budget staffs have been strengthened since 1950 and noticeable improvement in budget submissions has resulted. Major effort was devoted to budget methods and system development, with increased participation of responsible operating personnel in preparation and review. A major future requirement is to develop more meaningful stand- ards and reports. . Accounting was expanded to include a production or unit cost system making it possible for the first time to determine cost of weapons and weapon components and to bill AFSWP withareasonably accurate cost. It also provided a basis for comparing costs of contractors performing similar work and for supporting budget requests. The audit procedure was greatly improved, with commercial audit practices being substituted for detail examinations. Better audits at reduced man-hour costs resulted. Money allotments to SFO increased from the fiscal year 1948 low of $117, 000, 000 to a fiscal 1952 peak of $335, 000,000. $1, 402, 629, 986, Total allotments through fiscal 1953 were Utilization of Personnel Programs for personnel, organization, and expense controls were activated with the objective of making operational economy the basic determinant in personnel and organization matters. Principal emphasis in organization was put on definition of those supervisory functions required for AEC-SFOO management with parallel removal of the staff from field operations. Machine records procedures were introduced with significant economies. In-service placement was refined to assure employees of promotion opportunities. There was continued experimentation and study of the utility of objective testing devices. Em- phasis was put on realistic hiring plans, correcting former tendencies to over-plan per- sonnel requirements, and to be too optimistic on early hiring dates. SFOO initiated the idea of a job evaluation system based on factor analysis and point rating, sponsored experimental activity to develop the present AEC system, and undertook the first trial application of the tentative system. Conversion to the new job evaluation system was accomplished by June 21, 1953, following evaluation of 1, 539 positions of which 83 were revised upward in grade and 471 revised downward. A major problem during the period was to determine the grades of inspectors on the Los Alamos Protective Force and then to achieve a majority's acceptance, to help those who were not satisfied to find other jobs, and to act on a large numberof individual appeals. A coterie of inspectors sought to halt the downgrading by appeals to national officials and to the public featuring charges that Los Alamos security was incompetent and ineffective. and AEC field investigations resulted. JCAE Two inspectors were discharged for insubordina- tion. All questions raised by other inspectors were resolved under established administrative procedures. 9 As the reporting period ended, studies or other actions were in oro (1) decentralize personnel responsibilities to field offices; (2) appraise and develop key personnel; and (3) develop a periodic management review approach to evaluation of contractor performance. DOL 12 ol, 17