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092582 1 (1971-09-24)

handle is hein.gao/gaobacwli0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 CIVIL DIVISION SEP 2 4 1971 Dear Mr. Gardner: The purpose of this letter is to inform you of the results of our review of the General Services Administration's Working Capital Fund established under authority of the Independent Offices Appropriations Act of 1946 (40 U.S.C. 293). The fund centralizes and facilitates blueprinting, photostating, and duplicating services required by GSA and other Federal agencies. To ensure continuous operation, the act provided that the fund is to be reimbursed on the basis of the estimated or actual costs of the services financed by the fund. GSA finances the operations of 25 reproduction plants through the fund. The Printing and Publications Division, Office of Administration, GSA Central Office, is responsible for fund administration, including the setting of uniform nationwide prices based on actual costs for the services provided by the plants. We made a review of the fund's operations at the GSA Central Office and at Region 3 offices. Two problem areas were noted-the high prices being charged for electrostatic copying and the absence of allocation of some indirect expenses. ELECTROSTATIC COPYING PRICES Fund revenues for electrostatic copying service rendered by Region 3 plants at established prices substantially exceeded the costs of the service. Region 3 furnishes the electrostatic copying service to customers through use of 23 machines manufactured by the Xerox Corporation. Thirteen of the machines, although fund equipment, are being operated currently by the customer organizations which are being charged actual costs for machine rentals, maintenance, and supplies. In operating the other 10 machines, the fund is paying the rental, maintenance, and supply costs as well as the cost of personnel who operate the machines. Customers are charged at a rate of 6 cents a copy produced. For the period July 1, 1970, to March 31, 1971, we compared sales generated and expenses incurred by eight of these 10 machines. One of the two remaining machines was used irregularly and thus was not included, and the other was not placed in operation until April 1971. In making the 50TH ANNIVERSARY 1921- 1971

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