leasing the Naval Oil Shale Reserves for conventional petroleum and gas exploration; and sale of the Alaska Power Administration. Mr. BEVILL. Describe the results and accomplishments of the Department's management initiatives in FY 1985.

Secretary HERRINGTON. The Department's FY 1985 management initiatives program will not be completed until the end of FY 1985. However, the Department does have interim reports on two of the initiatives: Deobligations-through December 31, 1984, the Department has recovered approximately $8 million towards the $39 million goal; and Audit Recoveries-through December 31, 1984, the Department has recovered approximately $1.4 million towards the $15 million goal. Overall, I expect that the estimated savings of $107 million and 137 FTEs will be achieved.

Mr. BEVILL. How do you verify the savings you claim for these management initiatives? Provide for the record documentation that the savings you claim have actually been achieved.

Secretary HERRINGTON. Management initiatives savings are reported and verified in several ways; for example, deobligations and audit recoveries are verified through accounting and budget systems, others such as paperwork reduction and increased reliance on contractor initiatives through regular or special status reports and still others, such as reduced organizational layering through special studies and the Department's normal review and approval processes. Following are some examples of documentation of savings I would like to insert in the record. These include Deobligations: "Management Initiatives Savings-Deobligations of Prior Year Funds-Energy and Water Development" and "FY 1984 Summary of Recovery of Prior Year Obligations;" and Audit Recoveries: "Department of Energy Audit Followup and Internal Control Review Tracking System."

As another example, records are kept of the results of reviews of reoganization actions proposed by Headquarters and field office officials. Between September 1, 1984 and March 15, 1985, these reviews resulted in the elimination of 65 organization components in Headquarters and 68 components in the Field. These reductions assisted in reducing our supervisor/employee ratios, organizational fragmentation and organizational layering.

[The information follows:]

4.276

15,445,371

5.762.198

DEPARTMENT OF ENERGY

MANAGEMENT INITIATIVES SAVINGS

DEOBLIGATION OF PRIOR YEAR FUNDS AS OF JAN. 31, 1985-Continued

DEPARTMENT OF ENERGY

MANAGEMENT INITIATIVES SAVINGS

DEOBLIGATION OF PRIOR YEAR FUNDS AS OF JAN. 31, 1985-Continued