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Personnel - Conflict of Interest: Powell, John (1)
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25360474
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Personnel - Conflict of Interest: Powell, John (1)
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Philip W. Buchen Files
Philip Buchen's General Subject Files
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Ethics
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The original documents are located in Box 38, folder "Personnel - Conflict of Interest,
Powell, John (1)" of the Philip Buchen Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 38 of the Philip Buchen Files at the Gerald R. Ford Presidential Library
Conflict Interest of
POWELL, JOHN
Material concerning John Powell, former Chairman of
the EEOC, is filed in the safe under
PERSONNEL -- Powell, John
FORD i 076830 LIBRARY
THE WHITE HOUSE
WASHINGTON
December 10, 1974
EYES ONLY
MEMORANDUM FOR:
PHIL AREEDA
PHIL BUCHEN
DICK CHENEY
PAUL O'NEILL
FROM:
STAN SCOTT
LL
SUBJECT:
Equal Employment Opportunity
Commission
It is the opinion of Clarence Mitchell that the EEOC Chairman is
performing in a constructive manner and should remain on the
job, despite heavy criticism from his detractors. Mitchell has
viewed the GAO report on EEOC prepared for the Hill, and feels
that Powell has made an adequate response that should remove
doubt about his actions. Mitchell takes the position that EEOC's
problems are primarily internal, and while'a normal amount of
friction is to be expected at an independent agency, 11 it would be
to the advantage of EEOC if a couple of the Commissioners and
the legal counsel could be provided lateral transfers to other
government jobs. Mitchell would support his NAACP legal
counsel as a Commissioner on the EEOC, but would not lobby
at the expense of the present Chairman. Mitchell also takes a
broad view of the EEOC legislative mandate, insisting that the
Chairman has the authority to initiate meetings and actions
without prior consultation with his Commissioners.
FORD
/
is
LIBRARY
EYES ONLY
EEJC
my
THE WHITE HOUSE
WASHINGTON
January 14, 1975
EYES ONLY
MEMORANDUM FOR:
DOMESTIC COUNCIL
FROM:
PRESIDENTIAL PERSONNEL Pill OFFICE
SUBJECT:
Commissioner, Equal Employment
Opportunity Commission
Attached is a copy of our proposed memorandum for the President.
Please notify Jack Shaw of my office, 2821, to give him your opinion
(concur, no opinion, no objection, etc.) of the proposed action so that
we can accurately represent your views in the final decision memo.
Since we are trying to fill these vacancies as quickly as possible, please
be sure to reply within three days. If we have not heard from you with-
in that time, we will assume you have no comment on the appointment.
Enclosure I suggest th mimo be re-written to provide the President with
The option of naming one of these men (d hope, Kindrick) Chairman of EEOL.
although this is a iT's his only opportunity to bring any
semblance of order to the EEOC. as you are aware, the current Commissioners
me notevin on speaking Terms with the current Chairman. Pastinephtude is not
under the current Chairmanship and when they next burst into the public
Ford's responsibility, but the present EEOC problems willgetomehworse
arma the President will institably be Hamed. Luck action now will
avoid an mcreased problem in the future.
FORD LIBRARY
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR THE PRESIDENT
THROUGH:
DONALD RUMSFELD
FROM:
WILLIAM N. WALKER
SUBJECT:
Commissioner, Equal Employment
Opportunity Commission
(PAS - Level IV)
The EEOC is a five member Commission, of which no more than three
members may be of the same political affiliation. (Legislation at Tab A.)
The composition of the Commission is currently three Republicans, one
Democrat, and one vacancy.
Our candidates for the Democratic vacancy are:
William J. Kendrick, 42, Senior Vice President, National Association of
Manufacturers. (Resume at Tab B.) Kendrick, a lawyer, was the first
Director of Congressional Relations of the EEOC, 1966-1967. Previously
he served Presidents Kennedy and Johnson on the President's Committee on
Equal Opportunity, 1962-1966. During these periods and subsequently at
NAM his emphasis has been on encouraging voluntary compliance with
Federal EEO rules and regulations. He has the backing of the NAM and was
recommended to you by John Harper of Alcoa. The AFL-CIO has approved
his candidacy in the event Francis Pohlhaus is not chosen. As an indication
of the extent of the black support he can muster, he has the backing of Sam
Jackson, the former EEOC Commissioner. Kendrick knows John Powell
GERALD LISA : FORD
-2-
and believes he would be able to work with him. He has the broadest spectrum
of support of the various candidates and has by far the most experience with
the EEOC.
Francis J. Pohlhaus, 56, Counsel, Washington Bureau, NAACP, since 1954.
(Resume at Tab C.) Pohlhaus (who is white) has acted as consultant to the
Leadership Conference on Civil Rights and in this capacity has been directly
involved in all their programs dealing with the passage, administration and
enforcement of national civil rights matters since 1954. Pohlhaus would have
the support of a majority of the Senate Committee on Labor and Public Welfare,
and we have received letters on his behalf from Senators Philip Hart, Harrison
Williams, and Robert Stafford, as well as from a large cross-section of labor
and civil rights groups. Pohlhaus is the candidate of the AFL-CIO. He is a
mild-mannered man whose ties to Clarence Mitchell and the NAACP could
have a steadying effect on John Powell, but he is not known in the business
community and might cause some initial alarm there for that reason.
Martha Griffiths, former Congresswoman from Michigan. (Resume at Tab D.)
We have not determined Mrs. Griffiths' availability for this position, but as a
female attorney with civil rights credentials, she would bring a second female
voice to a Commission deeply involved in questions of women's rights. Her
appointment, however, would produce an adverse response from the business
community, who regard her as incurably pro-labor. Mrs. Griffiths' appoint-
ment would broaden the geographical base of the Commission (it is currently
drawn almost exclusively from the D. C. area) but it is unclear whether she
would be able to work well with John Powell.
DECISION:
Approve Kendrick
Approve Pohlhaus
Approve Griffiths
Enclosures
is
FORD
GERALD
LIBRARY
Some items in this folder were not digitized because it contains copyrighted
materials. Please contact the Gerald R. Ford Presidential Library for access to
these materials.
THE WHITE HOUSE
WASHINGTON
January 22, 1975
TO:
PHILLIP AREEDA
FROM:
STAN SCOTT If
For Your Information
Powell is now involved in the
internal affairs of Britain,
FORD
Attachment
GERAL
THE NEW YORK TIMES, MONDAY, JANUARY 20, 1975
6
C
MINORITIES GLUM
AT BRITISH TALKS
American Is Heckled
The reception received by
Meeting of Nation's Blacks
John Powell, the chairman of
and Asians Marked by
the United States Equal Em-
ployment Opportunity Commis-
Divisions and Doubts
sion, reflected the mood of
some of the delegates. He was
heckled because, as one black
By ALVIN SHUSTER
put it, "We thought his speech
Special to The New York Times
was patronizing and irrele-
vant."
LONDON, Jan. 19-A meet-
In his speech, Mr. Powell
ing of Britain's minority groups
explained some of the history
ended today on a note of gloom
of race relations in the United
about their own divisions and
States and suggested that black
their ability to improve race
Americans faced greater hurdles
GEROSS
THE WHITE HOUSE
WASHINGTON
January 22, 1975
MEMORANDUM FOR:
PHILLIP AREEDA
FROM:
JAY T. FRENCH
On
SUBJECT:
ALLEGATIONS OF MISCONDUCT
AGAINST THE CHAIRMAN OF THE
EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION
Additional materials, which amplify the allegations set forth in my
first memorandum of December 6, 1974, concerning the above
referenced subject, are divided among the attached Tabs A through G.
In almost every instance, these materials provide greater information
about the allegations noted in my first memorandum; however, there
is no new information which causes me to alter my earlier conclusions.
Most of the allegations, if true, demonstrate poor judgment and a lack
of management ability. The variety of sources which repeat these
allegations lend credence to their validity. Since the President can
designate a new chairman of the Commission at anytime, it is my
recommendation that he do so as soon as practical upon the grounds
that Powell is not an administrator. Powell, of course, would remain
on the Commission.
OMB is looking into the allegation that the Commission violated the
Anti-Deficiency Act. It would be possible to request the FBI to
investigate alleged irregularities in the Chairman's travel account
and his involvement in the Purex case; however, we have no firm
information on either matter to support a belief of criminal misconduct.
Until such information comes to light (possibly through an in-house
investigation conducted by a newly appointed Chairman) I recommend
that no other action be taken.
JAN 2 4 19/5
K
Received Fraud Section
24
GERALD
ONRO
INTERFERENCE IN PUREX LITIGATION
,
LIBRARY GERALD F. FORD
The Washington Merry-Go-Bound
THE WASHINGTON POST Wednesday, October 16, 1974 B 15
Goodell Slated to Be Attorney General
By.Jack Anderson
came away from a meeting with up 38%; Parkay margerine and thorized interference' in a
Mr. Ford a few weeks ago with
Charles Goodell, the former
Welch's grape jelly to go on the discrimination
the understanding that he could
epublican senator who was
muffins, up 106% and 41% against the Purex Corp.
keep it.
respectively; Pillsbury Hungry
Instead
of
idden out of office by the Nixon
for employ-
dministration because
At the White House, Saxbe is
Jack pancakes, up 32%; Logices'
General William B. Saxbe if a
Lake City constituents tar more
lot Carey to sit down and talk
graceful way can be found to get
than 14 percent for their three
JOB RUCKUS- The chief law
with him before the affair
Saxbe to step down.
meals. Here are his findings:
lyer for the Equal Employment
lated. Powell defended
Saxbe dearly loves the job,
Opportunity Commission has ac
staunch record on employment
Breakfast-Instant Tang,
however, and has told us he
uplicused his chairman, John Pow.
rights.
33%; Wonder English Muffins,
ell, of 'unwarranted and unau-
9) 1974, United Feature Syndicate
BERALD
FORD
LISERAY
FORD & LIBRARY GERALD
FORD \
UNILATERAL ISSUANCE OF CONTRACTS
ISSUE OF CONTRACTS
B
CONTRACTS ISSUED AMOUNTING TO SEVERAL MILLION DOLLARS, NOT PRESENTED
TO OR AUTHORIZED BY THE COMMISSION AS A BODY. SEVERAL CONTRACTS
ISSUED ON A SOLE SOURCE BASIS. FOR EXAMPLE:
1. THREE CONTRACTS ISSUED TO OPPORTUNITY SYSTEMS, INC. (OIS) TOTAL-
ING $530,000 ON A SOLE SOURCE BASIS AS 8-A CONTRACTS. ($320,000 -
$60,000 - $150,000) CONTRACT AWARDED ON 3/11/74.
2. INTERIM REPORT ISSUED BY THE AUDIT STAFF LISTED EXCESSIVE CHARGES
BY THE CONTRACTOR, INEQUITABLE ALLOCATIONS OF COSTS, UNLAWFUL SUB-
CONTRACTING WHICH INCLUDED DOUBLE MARGIN OF ROFIT TO THE CON-
TRACTOR, AND FAILURE TO PERFORM IN ACCORDANCE WITH THE TERMS OF
THE CONTRACT.
MEMORANDUM DATED AUGUST 13, 1974, ISSUED BY COMMISSIONERS TO THE
CHAIRMAN ADVISING HIM OF SERIOUSNESS OF THIS MATTER.
ALSO, RESOLUTION WAS PASSED ON NOVEMBER 12, 1974 BY APPROVAL OF ALL
COMMISSIONERS (WITH THE ABSTENTION OF THE CHAIRMAN), THAT NO CON-
SIDERATION BE GIVEN TO THE AWARD OF ADDITIONAL CONTRACTS TO OPPOR-
TUNITY SYSTEMS, INC. THIS ACTION WAS NECESSARY DUE TO OSI'S BAD
PERFORMANCE ON PREVIOUS CONTRACTS AND ALSO THERE WAS AN INDICA-
TION THAT CONSIDERATION WAS BEING GIVEN TO THE AWARD OF AN ADDI-
TIONAL $360,000 CONTRACT TO THIS SAME FIRM. SINCE THEN ONE OF
THE THREE ORIGINAL CONTRACTS ($150,000) HAS BEEN CANCELLED.
3. AT AN EXECTUIVE SESSION OF THE COMMISSIONERS WITH THE CHAIRMAN ON
JUNE 18, 1974, IT WAS AGREED By ALL, INCLUDING THE CHAIRMAN, TO
BRING A NUMBER OF CLINICAL TRAINING PROGRAM CONTRACTS BEFORE THE
COMMISSION AS A BODY FOR CONSIDERATION AND APPROVAL. INSTEAD, ON
JUNE 26, 1974, EIGHT DAYS LATER, THE CHAIRMAN AUTHORIZED AND
SIGNED SIX SUCH CONTRACTS TOTALLING $575,548.
A CONTRACT WAS ALSO AUTHORIZED BY THE CHAIRMAN WITH IAOHRA ( INTER-
NATIONAL ASSOCIATION OF OFFICIAL HUMAN RIGHTS AGENCIES) FOR THE
SUM OF $181,000.
FORD : LIBRARY
ISSUE OF CONTRACTS
-2-
4. THE CHAIRMAN AND HIS STAFF RECOMMENDED THE APPROVAL OF A CON-
TRACT TO NU-WAY, INC. ON A SOLE SOURCE BASIS FOR THE SUM OF
$280,000 AS CONSULTANTS ON THE ESTABLISHMENT OF THE TRAINING
CENTER. THE COMMISSIONERS REJECTED THE CONTRACT AND DIRECTED
THAT PROPOSALS BE REQUESTED FROM SEVERAL QUALIFIED CONSULTANTS.
AS A RESULT A CONTRACT WAS ISSUED TO A BETTER QUALIFIED FIRM
(DEVELOPMENT ASSOCIATES, INC.) FOR THE SUM OF $207,000 OR A
SAVING TO THE GOVERNMENT OF $73,000.
5. LAWYERS COMMITTEE CONTRACT $338,873.29.
THE CHAIRMAN ON HIS OWN APPROVED AND PAID $52,000 ON A PROPOSED
AND NOT YET APPROVED CONTRACT WITH THE LAWYERS COMMITTEE
WITHOUT THE APPROVAL OF THE COMMISSION AS A and BODY.
AT A MEETING OF THE COMMISION ON 11/26/74 THE CHAIRMAN REQUESTED
THE COMMISSIONERS IN EFFECT TO RATIFY HIS PAYMENT OF $52,000 and
ALSO APPROVAL OF THE TOTAL CONTRACT FOR $338,873.29.
IN VIEW OF THE EVIDENT ERRONEOUS FINANCIAL REPORTING BY THE
FINANCIAL MANAGEMENT DIVISION, THE COMMISSIONERS REQUESTED A
BRIEFING BY THE CHAIRMAN'S TOP FINANCIAL STAFF ON AVAILABILITY
OF FUNDS TO APPROVE THE LAWYERS COMMITTEE CONTRACT. THE BRIEF-
ING WAS TOTALLY UNSATISFACTORY AND UPON QUESTIONING, ONE OF THE
CHAIRMAN'S TOP FINANCIAL STAFF MEMBERS ADMITTED THAT THE FINANCIAL
STATUS PRESENTED WAS ONLY AN "EDUCATED GUESS" AND THAT HE COULD
NOT GUARANTEE THE CORRECTNESS OF THE INFORMATION, AND FURTHER THAT
HE COULD NOT HONESTLY RECOMMEND APPROVAL OF SUBSTANTIAL FINANCIAL
OBLIGATIONS BY THE COMMISSIONERS UNDER THE CIRCUMSTANCES.
IN FACT, HE STATED THAT THE COMMISSION WAS IN A FINANCIAL CRISIS.
IN VIEW OF THIS DEVELOPMENT DURING THE COMMISSIONERS' MEETING, A
RESOLUTION WAS APPROVED BY THE COMMISSION AS A BODY, (WITH THE
NEGATIVE VOTE OF THE CHAIRMAN), TO DIRECT MEMBERS OF THE AUDIT
STAFF TO COME TO THE MEETING TO REPORT ON THE STATUS OF THE AUDIT
ORDERED OF THE FINANCIAL MANAGEMENT DIVISION AND ALSO TO REPORT
IF POSSIBLE ON THE AVAILABILITY OF FUNDS IN ORDER TO CONSIDER THE
APPROVAL OF THE LAWYERS COMMITTEE CONTRACT. THE CHAIRMAN ABSO-
LUTELY REFUSED TO HONOR THE ORDER OF THE COMMISSION AND REFUSED
TO DIRECT THE MEMBERS OF THE AUDIT STAFF TO APPEAR. A RESOLUTION
APPROVED BY THE COMMISSION AS A BODY ON NOVEMBER 11, 1974 ON THE
is
FORD
GERALD
LIBRARY
ISSUE OF CONTRACTS
-3-
TOP ORGANIZATIONAL STRUCTURE INCLUDED THE AUDIT STAFF WHICH WAS ESTAB-
LISHED AS AN INDEPENDENT FUNCTION REPORTING DIRECTLY TO THE CHAIRMAN
AND THE COMMISSIONERS IN ACCORDANCE WITH GAO REGULATIONS.)
THE LAWYERS CONTRACT WAS TO COVER FIVE EEOC DISTRICT OFFICE AREAS
(WASHINGTON, D.C., BIRMINGHAM, NEW ORLEANS, PHILADELPHIA AND SAN FRAN-
CISCO). THREE OF THESE DISTRICT OFFICES OUT OF THE FIVE STATED THEY
WOULD NOT RECOMMEND OR SUPPORT THE CONTRACT WITH THE LAWYERS COMMITTEE.
NOTE: IN ORDER TO ATTEMPT TO CONTROL THIS SERIOUS CONTRACT SITUATION,
A RESOLUTION WAS APPROVED ON NOVEMBER 12, 1974, BY THE COMMISSION AS
A BODY, (THE CHAIRMAN VOTING NO), TO HAVE ALL CONTRACTS OVER $2,500
SUBMITTED TO THE COMMISSION FOR APPROVAL, WITH THE EXCEPTION OF THOSE
INVOLVING DAILY ROUTINE OPERATING EXPENSES. ONLY TWO PROPOSALS HAVE
BEEN SUBMITTED TO DATE TO THE COMMISSIONERS FOR APPROVAL
1. LAWYERS COMMITTEE FOR CIVIL RIGHTS
2. STATE AND COMMUNITY AFFAIRS.
FORD it 076859 LIBRARY
AB C
BE FORM
WASTE OF FUNDS
BERAL
LIBRARY aver
WASTE OF FUNDS
1. CONTRACT FOR $125,000 WAS ISSUED TO FORWARD MANAGEMENT, INC. TO
PRODUCE A CONTRACT MANAGEMENT MANUAL ON A SOLE SOURCE BASIS. IT
HAS BEEN ESTIMATED BY EEOC PERSONNEL IN THIS FIELD THAT SUCH A
MANUAL CAN BE PRODUCED IN HOUSE FOR BETWEEN $5,000 AND TO $10,000.
ON 10/22/74 THIS MATTER WAS POINTED OUT BY THE COMMISSIONERS TO THE
CHAIRMAN. OTHER THAN A MEMORANDUM ISSUED ON THIS REPORT, WITH A
WEAK EXPLANATION, NO ACTION WAS TAKEN OTHERWISE.
2. MOVE OF EEOC HEADQUARTERS TO THE COLUMBIA-PLAZA BUILDING. (THE
MOVE INDLUDES BOTH THE GENERAL COUNSEL'S OFFICE AND THE OFFICE OF
RESEARCH.)
THE COMMISSIONERS WERE NOT CONSULTED OR ADVISED. A REQUEST FOR
NECESSARY FUNDS WAS NOT PRESENTED TO OR APPROVED BY THE COMMISSION-
ERS.
THE MOVE WAS TO HAVE BEEN MADE IN JULY 1974.
NO REPORT HAS EVER BEEN MADE TO THE COMMISSIONERS ON THE ESTIMATED
COST OR THE COST TO DATE. THE BEST INFORMATION THAT CAN BE OB-
TAINED INDIRECTLY /READS AS FOLLOWS:
$ 300,000
#
ORIGINAL ESTIMATE OF COST TO MOVE
COSTS TO DATE PLUS ESTIMATED COSTS TO COMPLETE MOVING JOB:
ALTERATIONS COSTS TO DATE (FLOORS 1,3,4&5)
$ 396,500
PRIVATE BATHROOM IN CHAIRMAN'S OFFICE
18,000
PRIVATE KITCHEN IN CHAIRMAN'S OFFICE (FULL
13,300
SIZE REFRIGERATOR, AUTOMATIC DISHWASHER, THREE
PLATE ELECTRIC STOVE, AND METAL CABINETS)
GENERAL COUNSEL (2ND FLOOR) ALTERATIONS (ESTIMATE
ONLY)
150,000
CARPETING, DRAPERIES, WALL COVERING AND FURNITURE 61,473
FOR THE OFFICES OF THE CHAIRMAN AND THE FOUR
COMMISSIONERS. CHAIRMAN'S OFFICE $25,810
EACH COMMISSIONER'S OFFICE COST
AVERAGES
$ 5,374
FORD & 076879 LIBRARY
WASTE OF FUNDS
-2-
OFFICE DIRECTORS - CARPETING, DRAPERIES AND RE-UP
$152,400
HOLSTERING OF OLD FURNITURE
(FLOORS 1,3, AND 4)
PHYSICAL MOVE
23,500
*SPACE STUDY
187,900
/ TOTAL TO DATE
$1,003,673
PLUS COST YET TO BE DETERMINED ON DECORATION FOR GENERAL COUNSEL'S
offices.
PLUS - DOUBLE RENT PAID FOR BOTH LOCATIONS.
*THIS CONTRACT HAS NOW EXCEEDED THE ORIGINAL AMOUNT.
NOTE: IT IS BELIEVED THAT NUMEROUS DEFICIENCIES IN CONTRACTS INVOLVED
ON THE MOVE MAY BE FOUND TO BE AGAINST THE BEST INTERESTS OF THE
GOVERNMENT ONCE AN AUDIT IS MADE OF THE ENTIRE COST.
AS MENTIONED BEFORE - THE COMMISSIONERS WERE NOT CONSULTED OR ADVISED
ON THE MOVE, AND REQUEST FOR NECESSARY FUNDS WAS NOT PRESENTED TO OR
ACTED UPON BY THE COMMISSIONERS. IN VIEW OF THE INFORMATION, AS
MENTIONED HERE, OBTAINED INDIRECTLY BY THE COMMISSIONERS, A RESOLUTION
WAS APPROVED BY THE COMMISSION AS A BODY ON NOVEMBER 12, 1974, TO HAVE
AN AUDIT MADE OF THE COSTS TO DATE AND FINAL TOTAL ESTIMATED COSTS OF
THE MOVE. A REPORT TO BE ISSUED TO THE CHAIRMAN AND THE COMMISSIONERS
SIMULTANEOUSLY. FURTHER, IT WAS ORDERED THAT NECESSARY QUALIFIED
PERSONNEL BE PROVIDED TO THE AUDIT STAFF. TO DATE NO ACTION HAS BEEN
TAKEN TO COMPLY WITH THE DIRECTIVE OF THE COMMISSION.
is
FORD
GERALD
LIBRARY
CI TAB
IRREGULARITIES IN CHAIRMAN'S ACCOUNTS
NO ADDITIONAL INFORMATION WAS SUBMITTED.
LISSANY BERALD 2)
TAB E
LACK OF COOPERATION WITH OTHER COMMISSIONERS
CERALD
FORD LIBRABY
BQUAL EMPLOYMENT
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
Commission
December 20, 1974
Subject: Reorganization of the Equal Employment Opportunity
Commission
November 11, 1974 motion passed unanimously by the Commission
approving new organizational structure.
November 25, 1974 memorandum from the Chairman to the Members
of the Commission authorizing senior staff to implement
a table of organization different from that approved by
the Commission.
November 27, 1974 memorandum from Commissioner Walsh to the
Chairman insisting that instructions to staff on
reorganization be rescinded.
November 27, 1974 memorandum from Commissioner Lewis to the
Chairman pointing out the seriousness of disregarding
the resolution of the Commission.
November 29, 1974 memorandum from the Chairman to all employees
outlining Headquarters organizational changes.
November 29, 1974 memorandum from Commissioner Lewis to all
office heads advising that the organizational changes
are not consistent with the plan adopted by the
Commission.
December 11, 1974 memorandum from the Chairman to Commissioner
Lewis asserting his administrative authority as Chairman.
December 13, 1974 memorandum from the Chairman to the Members
of the Commission concerning the legality of the reorgani-
zation plan. approved by the Commission at the November 11,
1974 meeting.
December 17, 1974 memoranda from individual Commissioners the
to LIBRERY GORALD FORD
Chairman disputing his position on the legality of the
reorganization plan.
None Commi siu means all Commissioners
COMMISSION
Audit
CHARMAN
Staff
General
Counsel
ongressional
Affairs
Public
Affairs
Executive
Director
Deputy
Deputy
Executive
Executive
Director
Director
November 11, 1974
Commissioner Telles made the following motion:
I move that we approve the organizational structure, from
the Chairman and the four Commissioners down to and
including the two Deputy Executive Directors, which
includes the Office of Congressional Affairs, the Office
of Public Affairs, the General Counsel, the Internal
Audit Office and the Executive Director, as indicated
in the chart presented by Commissioner Telles. (See above)
Commissioner Walsh seconded the motion which was approved
unanimously by all current Members of the Commission:
Chairman Powell, Commissioner Lewis, Commissioner Telles,
and Commissioner Walsh.
(Draft Report of Commission Action by Marie D. w son,
Exec. BERBLO R. FORD Sec. LIBRARY
DRAFT
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
RECEIVED IN
NOV 26 1974
November 25, 1974
OFFICE OF
COMMISSIONER WALSH
MEMORANDUM TO:
Commissioner Colston Lewis
Commissioner Raymond Telles
Commissioner Ethel Bent Walsh
FROM:
John H. Powell, Jr.
Chairman
SUBJECT:
Attached Memorandum
Attached for your information is a memorandum from the
Executive Director summarizing senior staff recommendations
regarding implementation of the first stage of this
agency's reogranization.
The views therein reflect the very best judgments of senior
staff regarding, among other things, how many senior
positions should report to the Executive Director. Please
note that these views are the same as those expressed in
the staff memorandum forwarded to you with my memorandum
of October 11, 1974.
In my hearings last December, I pledged that under my
Chairmanship this agency--both in terms of reorganization
and procedures--would be recast for maximum effectiveness.
Since January of this year, I have had the benefit of
your views on a number of questions. On numerous occasions,
views expressed by each of you have enhanced decisions
made in this office. In this regard, I am persuaded that
the staff recommendation on questions relating to sub-tier
slots would eventually be approved. However, given the
urgency expressed, not only in my hearings, but also in
my other contexts, it is my judgment that implementation
should proceed as hereinafter indicated.
On the basis of research undertaken on Commissioner Lewis'
question regarding the reorganization of the Office of
Compliance raised at the Commission Meeting held on
October 21, 1974, it is clear that under the 1964 Civil
Rights Act, as amended and the practice and precedent of
this agency, implementation of the recommendations of the
FORD & LIBRARY 07vvna
- 2 -
Executive Director falls clearly within the administrative
responsibility of the Chairman. I am therefore this day
authorizing senior staff to promptly effectuate these
recommendations.
Needless to say, any suggestions and/or comments you
may have would be appreciated.
Thank you.
Attachment
CC:
Messrs
William A. Carey
Harold Fleming
a e
FORD i LIBRARY 038470
EGUAL EMPLOYMENT
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
1)
November 27, 1974
MEMORANDUM FOR:
John H. Powell, Jr.
Chairman
Subject: Commission Reorganization
I am appalled by the action you have taken as outlined by your
memorandum of November 25 regarding implementation of the first
stage of this Agency's reorganization.
You indicate that you are authorizing senior staff to effectuate
recommendations which had been forwarded to the Members of the
Commission on October 11, 1974 and been rejected by the Members
of the Commission on November 11, 1974.
At that meeting (11/11/74), a reorganization plan was unanimously
approved by all Members of the Commission including the Chairman.
Furthermore, it was the sense of that meeting that those functions
not specifically included in the organization chart approved on
that date would be considered at a subsequent meeting by the
Members of the Commission and further action would be taken on
the reorganization.
For you to deliberately flaunt the will of the Commission and
refuse to implement the November 11, 1974 plan is inexcusable.
I insist that you immediately rescind your instructions of
November 25 to the staff.
the Bent Wall
Ethel Bent Walsh
Commissioner
CC: Commissioner Colston A. Lewis
Commissioner Raymond L. Telles
General Counsel William A. Carey
Acting Executive Director Harold Fleming
GERALD FORD LIBRARY
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
November 27, 1974
MEMORANDUM FOR:
John H. Powell, Jr.
Chairman
RE:
Commissioner Walsh's Memorandum
of Today
I wholeheartedly agree with Commissioner Walsh's
memorandum, hereto attached, and therefore,
advising all members of the staff responsible for the
implementation of the Chairman's orders that
disregarding the resolution or the will of the
Commission is a very serious matter. (emphasis added)
Colston A. Lewis
Commissioner
CC: Commissioner Ethel Bent Walsh
Commissioner Raymond Telles
Harold Fleming
Horace Bussell
Yvette Duggar
RECEIVED IN
WALSH
FORD is LIBRARY DIVU
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
MEMORANDUM
TO
FROM
: : All Chairman John EEOC H. Powell, Employees Jr.
SUBJECT
:
Headquarters Organizational Changes
As you may be aware, over the past several months we
have been giving considerable thought to the need to
realign the organizational structure of headquarters
in order to more effectively support EEOC's mission
and operating programs. With the assistance of an
outside contractor, Booz, Allen & Hamilton, Inc.,
office directors, and an experienced staff committeé,
we have reviewed a variety of alternatives to our
present organization.
On November 11, the Commission approved an organizational
structure which would place all operating programs except
litigation and all support services under the Executive
Director. Subsequently, on November 25 I approved the
Executive Director's recommendation that four offices be
established, headed by Associate Executive Directors, to
carry out the functions which the Commission has assigned
to the Executive Director. The four offices are as
follows:
Office of Program Operations
Office of Program Development
Office of Systems Development and
Analysis
RECEIVED DERALD E. FORD LIBRA,
Office of Administration
NOV 29 1974
OFFICE OF.
COMMISSIONER lewis
-2-
The Executive Director has been charged with the
implementation of the new organization, which will
take several months to accomplish. As a first step,
effective December 1, 1974, the Offices of Management
and Program Planning and Evaluation will be transferred
from the Office of the Chairman to the Office of the
Executive Director.
For the most part, the reorganization will be accomplished
by transferring entire functions from one organizational
unit to another. The rights of all incumbent employees
will be fully protected. Changes will be made in an
orderly, planned fashion in order to minimize disruptions
of headquarters operations. Until such time as changes
are formally announced, all employees should continue to
perform their present functions.
I know that Harold Fleming and his staff can count on your
full cooperation in the months ahead.
FORD is 03RV70 LIBRARY
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
November 29, 1974
MEMORANDUM FOR:
All Office Heads
RE:
Reorganization Plan
In the event that you have not been provided a copy of
the Comptroller General's Opinion concerning Commission
policy, I would suggest that you read a copy
immediately before taking further action on the
reorganization plan.
The memorandum attached hereto is not the plan adopted
by the Commission. The Commission has not yet delegated any
specific power to the Executive Director that he does not
already have.
Colston A. Lewis
Commissioner
Attachment
CC: Chairman John H. Powell, Jr.
Commissioner Ethel Bent Walsh
Commissioner Raymond Telles
RECEIVED IN
NOV 29 1974
FORD is GERALD LIBRARY
OFFICE OF
COMMISSIONER WALSH
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
"move
DEC 11 1974
MEMORANDUM
IN REPLY REFER TO:
TO:
Colston A. Lewis
FROM:
Chairman John Commissioner H. Powell, Jr.
SUBJECT: Administrative Authority of the Chairman
As the designated Chairman of EEOC, accountable to the
President for the agency's overall performance, I have
directed, and will continue to direct, the agency's
administrative operations in a manner designed to achieve
maximum efficiency and effectiveness for the Commission's
programs. " Accordingly I have sent the attached memorandum
to all employees telling them to continue to carry out the
directions which come to them through proper administrative
channels.
This action is taken in accordance with precedents established
by my predecessors. An example of one such precedent is
attached for your information.
I would appreciate your directing any further questions or
complaints about staff actions to me rather than directly
to staff. I will then assure that a proper response is
made to your inquiry.
Attachment
cc: Commissioner Telles
Commissioner Walsh
RECEIVED IN
DEC
OFFICE
FORD is LIBRARY
COMMISSIONER WALSH
RB
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
OFFICE OF
December 13, 1974
THE CHAIRMAN
RECEIVED IN
MEMORANDUM
DEC 26 :074
TO
: Colston A. Lewis
Commissioner
OFFICE OF
COMMISSIONER WALSH
Raymond L. Telles
Commissioner
Ethel Bent Walsh
FROM :
Commissioner Chairman H. Powell, Jr.
John
SUBJECT: Reorganization Plan Submitted at November 11, 1974
Commission Meeting
I have attached for your information copies of correspondence
between my office and the General Counsel concerning the pro-
posed reorganization of the Commission.
Attachment
FORD is 031470 LIBRARY
ENFLOTMENT
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
OFFICE OF
THE CHAIRMAN
MEMORANDUM
TO
: William A. Carey
General Counsel
FROM
:
John H. Powell, Jr.
Chairman
SUBJECT
Legality of Reorganization Plan Submitted at November
11,7
1974 Commission Meeting
I have received and read carefully your December 6th memorandum
regarding the legality of the reorganization plan submitted at the
November 11, 1974 Commission meeting. " I agree with you that any
reorganization plan voted by the Commission which required various
offices to report to the Commission on the day-to-day activities of
those offices would be not only administratively unsound but also
contrary to Section 705(a) of Title VII. 11
"
Whether any reorganization proposed by the Commission would violate
Section 705(a) is a matter which must ultimately be determined by the
Chairman since the Chairman is, by statute, responsible for the
administrative operation of the Commission. 11
FORD is OFRALD LIBRARY
1/12/10/714
we IMPLOYMENT
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
you
1)
December 6, 1974
MEMORANDUM
TO
:
John H. Powell, Jr.
Chairman
FROM
:
William A. Carey
wac
General Counsel
TPC
SUBJECT
:
Request for Legal Opinion on Reorganization
Plan Submitted at the Commission Meeting of
November 11, 1974
It is my understanding that at the Commission meeting of
November 11, 1974, you asked for an opinion on the legality
of the reorganization of the Commission submitted by Commis-
sioner Telles. The reorganization requires the General
Counsel, Audit Staff, Office of Congressional Affairs, Office
of Public Affairs and the Executive Director to report to
the Chairman and the Commission, not merely to the Chairman.
OPINION
11
The Commissioners have the authority to reorganize the Com-
mission in such a way that various office heads may be re-
quired to make periodic reports to the Commissioners as a
body as well as to the Chairman.
DISCUSSION
The issue you have raised is basically one of interpretation
of $705 of the Civil Rights Act of 1964, as amended on which
this office has provided the Chairman and other Commissioners
with several memoranda. 1/ Section 705 provides for a five
member Commission which is granted all of the authority
enumerated or implied in the act with the exception of the
administrative operations of the Commission. Such admini-
strative operations are placed in the hands of an individual
:
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ALD
See, e.g., memorandum of General Counsel dated March ISA,
1974.
LIBRARY
Page 2
Commissioner, the Chairman, who is to act on behalf of the
Commission. The Commission determines the policy and direc-
tion of the agency. The Commission, being a collegial body,
decides questions and acts based upon a majority vote of
the Commissioners present at a duly called meeting, assuming
the existence of a quorum. See $705 (c) and F.T.C. V. Flotill.
Products, Inc., 389 U.S. 179 (1967). After policy has been
determined, the Chairman administers the day to day imple-
mentation of that policy for the Commission.
That the Commissioners of a collegial public body and not
the administrative haad datermine palisy is and universally
accepted statement of the federal establishment: See Sl of
Reorganization Plans Nos. 8,9, and 10 of 1950 and §1 of Re-
organization Plan No. 1 of 1969. See also the decision of
the Comptroller General of the United States, B-167015,
entitled "Administrative Authority of the Chairman of EEOC".
The determination of which matters are policy and which are
administrative is, in the final analysis, a function of the
collegial body, not the administrative head, as the following
colloquies demonstrate. The first colloquy is from the
testimony of Mr. Harold Leventhal of the Citizens' Committee
for the Hoover Report before the Senate Committee on Ex-
penditures in the Executive Departments, regarding Reorgani-
zation Plans Nos. 7 (ICC), 8 (FTC), 9 (FPC), and 11 (FCC) and the
effect therein of the transfer of administrative responsibil-
ity to the Chairmen of the respective regulatory agencies
(Hearings on Sen. Res. Nos. 253, 254, 255, 256, 81st Cong.,
2d Sess., p. 126 (1950) :
Mr. Leventhal: It gives administrative
authority to the Chairman.
Chairman: Who is going to decide what
are administrative responsibilities? Will
he decide it?
Mr. Leventhal: No. Since it also gives a
is
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charter to the Commission to decide questions
of basic policy, I think it involves a call-back
GERALD
or it makes possible a call-back by the Commis-
LIBRARY
sion on the ground that a policy matter is in-
volved.
Page 3
The second colloquy occurred on the Senate floor, in a
debate concerning the same reorganization plans:
Mr. Douglas: Suppose the Chairman of a Com-
mission states that a given matter is pro-
cedural and that, therefore, he has jurisdic-
tion over it; suppose other members of the
Commission believe that the matter is substan-
tive and policymaking in nature or character.
Would the commission then have any authority
to overrule the Chairman and make the deter-
minations themselves?
Mr. Humphrey:
...
It is my understanding
that matters which deal with the substance
of regulations, the substance of policy, and
the substance of the law are left to the Com-
mission as a whole; and where there is a con-
flict as between what is procedural and what
is substantive, it my interpretation that the
role of the Commission as a whole will over-
rule the administrative decision of the
chairman.
(Emphasis added.) (96 Cong.
Rec. 7163-64, 1970)
There thus appears ample authority for the proposition
that Commissioner Telles may submit and the Commission may
vote on any reorganization plan. Such a decision is valid
and binding upon the Commission unless a reconsideration vote
overturns said reorganization. 11
One area of concern is raised by Commissioner Telles's re-
organization submission. The word "report" is unclear.
Should this word be defined as the discussion of the daily
operation of an office between office heads and the collegial
body, it would appear to violate $705 (a) insofar as it im-
pinges upon the statutory duty of the Chairman to tend to
the administrative housekeeping. 2/ It might also be admin-
istratively unsound. Should the word, however, mean that
a
FORM
2/ The Hoover Commission stressed that removal of petty
ERALD
administrative matters from commissioners would provide them
more time for policy matters:
LIBRASHA
Page 4
the Commissioners, as a body, should receive periodic reports
from office heads, there would be no violation of $705 (a).
Furthermore, should the word mean that the office heads are
ultimately responsible to the Commissioners as a body for
their operational conduct or that the Commissioners, as a
body, are entitled to call the office heads before them for
a review of office procedures, practice, policy implementa-
tion or appropriated fund disbursement, the reorganization
is not in violation of $705 (a). In sum, the word "report"
is unclear, thus allowing for differing interpretations,
one of which might not be in accordance with $705 (a)
Although the law commonds commends the interpretation which 18 in
accord with the statntory scheme where ambiguity extsts,
see Sunshine Anthracite Coal Co. V. Adkins, 310 U.S. 381
(1940), it would be appropriate for the Commission to sub-
stitute for the word "report" some less ambiguous term.
2 cont.
Actually this proposal does not derogate from
the importance or equality of the other Com-
missioners. Each member will have undiminished
authority on all substantive policies and deci-
sions and on basic administrative matters. In
fact their participation in substantive action
will be facilitated by freedom from partial and
shared responsibility for administrative details.
The U.S. Commission on Organization of the Execu-
tive Branch of the Government, Committee on Inde-
pendent Regulatory Commissions: A Report With
Recommendations, Jan. 13, 1949, Washington, D.C.
U.S. Government Printing Office, 1949; see also
March 1949 report of the same Commission.
i
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LIBRARY
SQUAL
(
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
1)
December 17, 1974
MEMORANDUM FOR:
John H. Powell, Jr.
Chairman
Subject: Administrative Authority of the Chairman as it Relates
to the Reorganization Plan Voted and Passed by the
Commission on November 11, 1974 - Your Memorandum of
December 11 and your Undated Memorandum sent under
Covering Memorandum of December 13, 1974
Neither one of the subject memoranda make any sense at all.
Your memorandum of December 11 states, "Accordingly I have sent
the attached memorandum to all employees telling them to continue
to carry out the directions which come to them through proper
administrative channels." No such memorandum is attached. The
only attachments are a 1970 memorandum from Chairman Brown, a
reorganizational chart reflecting the 1970 memorandum, a map of
the United States and a form for relocation preference.
Your undated memorandum to the General Counsel subject, "Legality
of Reorganization Plan Submitted at November 11, 1974 Commission
Meeting," makes even less sense. You state, "I agree with you
that any reorganization plan voted by the Commission which require
various offices to report to the Commission on the day-to-day
activities of those offices would be not only administratively
unsound but also contrary to Section 705 (a) of Title VII." The
General Counsel's opinion to which you refer states, "The
Commissioners have the authority to reorganize the Commission in
periodic reports to the Commissioners as a body as well as to AFORD
such a way that various office heads may be required to make
Chairman." I fail to comprehend how your statement "agrees QUEA with
the opinion of the General Counsel in any way.
LIBRARY
Page 2
You further state, "Whether any reorganization proposed by the
Commission would violate Section 705 (a) is a matter which must
ultimately be determined by the Chairman since the Chairman is,
by statute, responsible for the administrative operation of
the Commission." The General Counsel states, "There thus appears
ample authority for the proposition that Commissioner Telles may
submit and the Commission may vote on any reorganization plan.
Such a decision is valid and binding upon the Commission unless
a reconsideration vote overturns said reorganization." Once
again, your statement does not agree with the opinion of the
General Counsel.
I remain appalled by your refusal to implement the November 11,
1974 reorganizational plan voted unanimously (including the
Chairman) by the Commission.
Once more, I insist that you immediately rescind your instructions
to the staff.
Bethel Bent Walch
Ethel Bent Walsh
Commissioner
CC: Commissioner Colston A. Lewis
Commissioner Raymond L. Telles
General Counsel William A. Carey
LIBRARY GERALD : FORD
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
RECEIVED IN
December 17, 1974
DEC 17 1974
MEMORANDUM
OFFICE OF
TO:
Chairman John H. Powell, Jr.
Commissioner Raymond L. Telles THE
COMMISSIONER
FROM:
SUBJECT: Chairman Powell's Memorandum - December 13, 1974
"Reorganization Plan Submitted at November 11, 1974
Commission Meeting."
Chairman Powell's Memorandum to General Counsel
William A. Carey. (Undated)
"Legality of Reorganization Plan Submitted at
November 11, 1974 Commission Meeting."
Inasmuch as there appears to be some confusion on your part
with respect to the section of the reorganization plan unan-
imously approved (including the Chairman) at the November 11,
1974 Commission Meeting, I am herewith attaching a Draft
Report of Commission Action, as prepared by Marie D. Wilson,
Executive Secretary. I believe that this report is self
explanatory and should clear up any question you may have in
reference to the action taken by a unanimous vote on this
subject.
In reference to subjects listed above, your attention is
invited to the Decision of the Comptroller General of the
United States, B-167015, dated September 19, 1974, entitled
"Administrative Authority of the Chairman of the Equal Employ-
ment Opportunity Commission," and particularly to the following
excerpts from said decision:
Page 1 - Paragraph 1: "Since background of these reorganiza-
tion plans, which seems applicable under section 705 (a), indi-
cates generally that such provisions are not intended to
supersede or diminish substantive powers of full commissions,
EEOC Chairman's exercise of administrative functions is subject
to general policies and directives of full Commission and can-
not derogate from substantive responsibilities of full
Commission."
Page 4 - Paragraph 2: (Quotes EEOC General Counsel's memoradum
of March 14, 1974) "In fact the 1950 Congressional debate on
a reorganization plan for the Interstate Commerce Commission
BERALD FORD LIBRARY
2.
transferring administrative responsibilities to the Chairman
reveals the intent of Congress that where there is a conflict
between the Chairman of a multi-body agency and the other
members over what is procedural or administrative, and what
is policy, the Commission as a whole may overrule the admin-
istrative decision of the Chairman, 96 Cong. Rec. 7163-7164,
May 7, 1950."
Page 10 - Paragraph 2: "In addition, as the EEOC General
Counsel's memorandum points out, the Senate debate on a 1950
reorganization plan for the Interstate Commerce Commission
(subsequently disapproved) indicated that where disputes arise
as to what matters are procedural or administrative and what
are substantive, the full commission should have the final
say. 96 Cong. Rec. 7163-7164, May 7, 1950."
Page 11 - Paragraph 2: "Rather, we believe that organizational
issues, inasmuch as they relate to effectiveness and efficiency
in carrying out the agency's statutory functions and implement-
ing substantive Commission actions, would generally be char-
acterized as involving policy issues. We believe the reference
in section 705(a) to the appointment of such personnel as the
Commission determines necessary indicates that the Commission
as a whole has a ligitimate role in organizational matters."
Page 14 - Paragraph 4: "On the basis of the statutory provi-
sions and legislative history discussed herein, it is our
opinion that the full Commission has authority to establish
reasonable standards to govern contracts and other uses of
funds, including requirements for Commission approval of
transactions of a certain nature or amount. Thus, in our
view, the Commission's substantive authority and responsi-
bility as a body renders it the proper source for separating
policy matters from administrative matters; and the Chairman's
administrative authority must be considered subordinate to
such Commission determinations so long as they are not patently
unreasonable or excessive.. "
Enclosure
CC: Commissioner Ethel B. Walsh
Commissioner Colston A. Lewis
General Counsel William Carey
Acting Executive Director Harold Fleming
:
FORD
GERALD
LIBRARY
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
RECEIVED IN
December 17, 1974
DEC 17 1974
OFFICE OF
COMMISSIONER WALSH
MEMORANDUM FOR:
John H. Powell, Jr.
Chairman
SUBJECT:
Administrative Authority of the Chairman --
Your Memorandum of December 11, 1974
Your memorandum on the above cited subject matter
is, as are most of your arbitrary and capricious acts,
an erroneous and illegal statement of your administrative
authority as Chairman and clearly contrary to the
expressed will, directions and policies of the
Commission, both past and present.
Initially, I should point out that not only are you
accountable to the President for your actions as
Chairman, but you are equally accountable to the
Congress and the Members of the Commission itself
for your actions as Chairman of the Commission.
Correspondingly, in my view, you have the responsibility
to carry out the expressed mandates of the Commission
as a body, to the fullest extent, irrespective of
whether you personally agree or disagree with the
said policy expression. Your memorandum implies that
you intend to disregard the policies and directives
of the full Commission in direct contravention of
the September 19, 1974, Decision of the Comptroller
General which unequivocally states:
Since the background of these reorganization
plans, which seem applicable under Section 705 (a),
:
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LIBRARY
Chairman Powell
Page 2
indicates generally that such provisions
are not intended to supersede or diminish
substantive powers of the full Commission,
EEOC Chairman's exercise of administrative
functions is subject to general policies
and directives of full Commission and
cannot derogate from substantive
responsibilities of full Commission.
(emphasis added)
As a matter of law, actions taken by you or your
predecessors in the execution of Commission objectives
are subject to analysis, scrutiny and reversal by
the full Commission at any time deemed appropriate
by the Commission itself. Moreover, it is the basic
function of a multimember Commission to actively
promulgate the regulations, policies and procedures
which govern how it will do business and the inherent
responsibilities of the Commission to police those
charged with implementing said policies, regulations,
and directives on behalf of the Commission, in a
manner consistent with the will of the Commission
and its statutory objectives. In addition, the
recent decision by the Comptroller General, clearly
delineating the authority of the Chairman, was
rendered as a result of the arbitrary, unilateral,
illegal, usurpation of the full Commission's decision
making responsibilities and functions by you and your
predecessor, in complete derogation of the intent
of Congress. Since the Comptroller General's Decision
was only recently rendered, unlike you, your predecessors
did not have the benefit of an independent legal
opinion on this subject to govern their actions and
guide the Commission. It is highly probable that
had this decision been available to your predecessors,
their administrations would have been conducted in
a lawful manner within the framework of this legal
:
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opinion.
GERALD
LIBRARY
Chairman Powell
Page 3
It is you, who have the benefit of this opinion,
and the responsibility to conduct your administration
within the framework of such legal guidance.
Unfortunately, it is you, who chose to ignore the
Decision of the Comptroller General, and you, who
have chosen to act illegally, arbitrarily, and
capriciously to usurp the fundamental decision
functions and responsibilities of full Commission
in direct opposition to the Decision of the Comptroller
General. These illegal actions cannot be contributed
to your predecessors.
It is the inherent right of any Member of this
Commission, appointed by the President and confirmed
by the Senate, to request directly of any Commission
employee, any information, questions, or concerns
with respect to Commission activities at any time
that such information or knowledge would further
the ability of that Commissioner to better fulfill
the responsibilities of that office.
I have no intention of abrogating any of the inherent
rights and responsibilities of my appointed office
to anyone, much less you.
For your information, I shall continue to direct any
question, inquiry, concern or complaint, directly,
if necessary, to any Commission employee responsible
for the respective Commission activity, of my concern,
and I shall expect an immediate factual, complete
response from said Commission personnel.
Your consistent refusal to provide Members of the
Commission with the reports furnished by the Internal
Audit Division, despite a Commission policy on this
matter; your stated refusal to abide by the $2,500.00
contract mark established by full Commission, are just
a few of your recent unilateral, arbitrary, and illegal
actions in defiance of the full Commission under the
false guise of "your administrátive authority."
&
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LIBRARY
Chairman Powell
Page 4
Colston A. Lewis
Commissioner
CC: Commissioner Raymond L. Telles
Commissioner Ethel Bent Walsh
William Carey, General Counsel
Harold S. Fleming, Executive Director
All Office Heads
All Regional Directors
GERALD R. FORD AMOUNT
REFUSAL BY THE CHAIRMAN TO ADHERE TO SOME OF THE COMMISSION'S POLICIES
1. HAS AUTHORIZED ON HIS OWN SEVERAL MILLION DOLLARS IN CONTRACTS
WITHOUT VOTE OF THE COMMISSIONERS.
DESPITE THE FACT THAT:
(A) EEOC GENERAL COUNSEL HAS RENDERED A LEGAL DECISION THAT CON-
TRACTS INVOLVING POLICY MUST BE APPROVED BY THE MAJORITY OF
COMMISSIONERS.
(B) THE COMPTROLLER GENERAL ISSUED LEGAL DECISION ON SEPTEMBER
19, 1974 STATING THAT A MAJORITY OF VOTES OF THE COMMISSIONERS
ESTABLISHES POLICY, AND ALSO DETERMINES WHAT IS POLICY AND
WHAT ARE ADMINISTRATIVE FUNCTIONS. ALSO, THAT THE COMMISSION
AS A BODY APPROVES CONTRACTS.
ON NOVEMBER 12, 1974, A RESOLUTION WAS APPROVED BY THE COMMISSION
AS A BODY (CHAIRMAN VOTED NO) TO HAVE ALL CONTRACTS OVER $2500
SUBMITTED TO THE COMMISSION FOR APPROVAL, WITH THE EXCEPTION OF
THOSE INVOLVING DAILY ROUTINE EXPENSES SUCH AS PAYROLL AND PER
DIEM. TO DATE SUCH CONTRACTS HAVE NOT BEEN SUBMITTED TO THE
COMMISSION AS A BODY FOR APPROVAL OTHER THAN THE PROPOSED CONTRACTS
WITH THE LAWYERS COMMITTEE FOR CIVIL RIGHTS AND THE STATE AND
COMMUNITY PROGRAM.
2. ON NOVEMBER 11, 1974, A RESOLUTION WAS APPROVED UNANIMOUSLY BY THE
COMMISSION AS A BODY (INCLUDING THE FAVORABLE VOTE OF THE CHAIRMAN),
SETTING UP THE NEW ORGANIZATIONAL TOP STRUCTURE OF THE COMMISSION.
ON NOVEMBER 25, 1974, THE CHAIRMAN ON HIS OWN ISSUED ORDERS TO THE
STAFF IN EFFECT TO DISREGARD RESOLUTION APPROVED ON NOVEMBER 11,
1974, AND TO OPERATE UNDER AN ORGANIZATIONAL STRUCTURE PREVIOUSLY
REJECTED BY THE COMMISSION AS A BODY AND CONTRARY TO RECOMMENDATION
BY CONSULTANTS BOOZ-ALLEN AND HAMILTON. THE FIRM OF BOOZ-ALLEN
AND HAMILTON CONSULTANTS IS BEING PAID OVER $100,000 FOR A STUDY
AND RECOMMENDATIONS ON ADMINISTRATIVE PROCEDURES.
3. SUBMITTED REQUEST FOR 1975 BUDGET SUPPLEMENT TO OMB WITHOUT CON-
SULTING OR APPROVAL OF THE COMMISSION AS A BODY.
4. COMMISSION AS A BODY HAS NEVER BEEN CONSULTED ON ALLOTMENT OF
PERSONNEL POSITIONS OR ON THE APPOINTMENT OR DISCHARGE OF HEADS
OF MAJOR ADMINISTRATIVE UNITS.
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COMMISSION'S POLICIES
-2-
5. NEGOTIATED AND AGREED WITH AFL-CIO ON MAJOR POLICY PROCEDURE IN
PROCESSING OF CHARGES WITHOUT CONSULTING THE COMMISSION AS A BODY.
THEN RELUCTANTLY PRESENTED THE AGREEMENT TO THE COMMISSIONERS WHICH
WAS VOTED DOWN 3 TO 1 (CHAIRMAN VOTED NO) BECAUSE OF MANY OBVIOUS
DEFICIENCIES. ADVISED AFL-CIO HE WAS IN FAVOR BUT THREE OTHER
COMMISSIONERS WERE IN OPPOSITION TO HIM.
6. AUTHORIZED AND ORDERED MOVE OF HEADQUARTERS AT 1800 G ST. TO THE
COLUMBIA PLAZA BUILDING WITHOUT CONSULTING THE OTHER COMMISSIONERS,
INVOLVING AN EXPENDITURE OF SEVERAL HUNDRED THOUSAND DOLLARS NOT
IN THE BUDGET.
FORD is LIBRARY GERALD
Employment Report/Internal problems e
hamper EEOC anti-bias efforts
by James W. Singer
1226 Enormous problems and serious inter-
nal conflicts are hampering the Equal
NATIONAL
Employment Opportunity Commission
(EEOC) in its efforts to stamp out
©1974
employment discrimination.
In its nine years, the EEOC has
been transformed from a smali, in-
effectual commission into the govern-
ment's foremost civil rights agency.
Once ignored as a "paper tiger." it has
achieved substantial successes and has
caused many large companies to spend
huge sums to change their employ-
ment practices.
Yet it is recognized widely that the
EEOC's effectiveness has been
limited severely by its internal diffi-
culties. Civil rights leaders are con-
cerned and anxious to help, while
corporate attorneys deplore what they
Equal Employment Opportunity Commission members (from left) Colston Lewis,
consider the agency's lack of profes-
Luther Holcomb, John Powell (chairman), Ethel Bent Walsh and Raymond Telles
sionalism.
able improvement," except in the interview. "I just don't understand
"According to an EEOC official,
Denver region. "The elimination of
how everybody who gets to be chair-
the commission has never attempted to
this problem," Carey said "requires
man feels he can run this damn or-
develop a total integrated manage-
that the Office of General Counsel and
ganization without consulting us. They
ment information system," a draft
(the) Compliance (Office) immediate-
act as if they have unlimited power to
summary of a July 1974 General Ac-
ly evaluate present systems and de-
do almost anything they want, irre-
counting Office survey reports. As a
velop new approaches to eliminate
spective of our wishes."
C:.
Increases in responsibility have made the Equal Employ-
other commissioners-Luther Hol-
ment Opportunity Commission the nation's chief civil
comb (who is leaving soon but whose
rights agency, but the increases in funds and staff that
replacement has not been selected)
have been coupled with its growing role have had little
and Ethel Bent Walsh-requested a
legal opinion defining the respective
effect in increasing the agency's effectiveness. Although
rights and responsibilities of the
some substantial successes recently have been recorded,
commission and of the chairman, John
the EEOC has the astounding total of 89,000 charges
H. Powell Jr.
backed up awaiting action and a person filing 3 job dis-
"In substance," they wrote Comp-
crimination charge must wait two years for his complaint
troller General Elmer B. Staats, who
to be processed.
heads the General Accounting Office,
"the controversy and concerns of the
members of the commission stem from
result, the GAO survey makes clear,
present program incongruencies in
the different interpretations of
the commission has failed to keep
the processes used." "
(the law)
by the chairman and the
track of charges and to process them
According to staff members con-
members of the commission regarding
in an orderly and efficient manner.
flicts between the various parts of the
what commission activities must be
The commission's backlog has
commission between the general
presented to, deliberated on
and
soared to 89,000 charges-and EEOC
counsel's office and the rest of the
decided by the whole commission as a
officials say a person who files a
agency, between regional offices and
body."
charge of job discrimination still must
headquarters, between the district
Pending an opinion, they requested
wait an average of two years for the
branches and the regions have
that a freeze be placed on the expendi-
agency to process his complaint. By
contributed to the agency's problems.
ture of EEOC funds unles
that time, many no longer care to
Commissioners:
The
five
EEOC
by the commission, that an pending
proceed.
commissioners
themselves
are
EEOC contracts be hold in abeyance.
William A. Carey, EEOC general
in
a
power
struggle.
exaccrbated
by
unless authorized by the commission
counsel, June 19 wrote the commis-
animosities
that
has
been
and that no future EEOC contracts
RECEI
sion's acting executive director that
for
years.
of
the
be made without approval by the
Carey's office had filed far fewer suits
believe they
commission.
than it planned. One of the reasons,
have been bypassed by the chairman
As of the middle of August, Staats
he said, is that between 80 and 90 per
is
a
commissioner)
in
not responded to the letter.
cent of the files his staff received had
tablishing
policy,
and
are
to be returned to EEOC field offices
to
what
they
consider
their
Background
"as unsuitable for litigation."
authority.
The commission, headquartered a
COMMISSIO. Carey/wrote that this continued a
"I just don't understand it, Com-
block from the White House, was
trend set in 1973 "with little notice-
missioner
Colston
A.
Lewis
said
in
an
established
by
Title
VII
of
the
Civil
FAIR
RECEIVED
Formerly Civil Rights Employment heo Report
458
Leonard A. Eiserer
Bi-Weekly newsletter published from the Nation's Capital
Editor and Publisher
SEP
974P.O. Box 1067, Blair Station, Silver Spring, MD 20910, Telephone 301-587-6300
Subscription Rate: $75 per year; $40 for six months. Quantity rates on request.
COMMISSIONER WALSH
Vol. 12 No. 19
Page 181
INDUSTRY, BUSINESS GROUPS CHARGE EEOC WITH FAILURE TO ENSURE EEO
Backlog of more than 100,000 claims of job discrimination at a time when an av-
erage of 26 months is needed to resolve a complaint is evidence of Equal Employment
Opportunity Commission's failure to ensure equal job opportunities, representatives
of industry and business charged last week at hearings of a House labor subcommittee
investigating the huge backlog of cases.
In a wide-ranging indictment before the House Education and Labor Subcommittee
on Equal Opportunities Sept. 19, Chamber of Commerce of the U.S. blamed poor EEOC
staff work, inefficient and ineffective practices. bias on the part of some investi-
MISTREATMENT OF COMMISSION PERSONNEL
f
2
PERSONNEL PROBLEMS
1. HAVE LOST A NUMBER OF TOP EXPERIENCED PERSONNEL. OTHERS WANT TO
LEAVE AS SOON AS THEY FIND OTHER JOBS.
THE CHAIRMAN TRIES TO CONTROL MEMBERS OF STAFF THROUGH BADGERING
AND A CONTINUOUS INTIMIDATION AND THREATS OF FIRING.
2. UNJUSTLY EMBARRASSING TOP STAFF PERSONNEL BY VOCIFEROUSLY REPRI-
MANDING AND LECTURING IN FRONT OF COMMISSIONERS AND THE OTHER
STAFF PERSONNEL. USING UNDERHANDED METHODS TO TRY TO CONTROL
PERSONNEL.
3. CHAIRMAN HAS LOST FIVE SPECIAL ASSISTANTS, HAS ONLY ONE LEFT.
LOST HIS CONFIDENTIAL SECRETARY. HAS PROBLEM FINDING REPLACEMENTS.
4. REPORTS FROM FIELD PERSONNEL OF IMPROPER QUESTIONING BY A SPECIAL
ASSISTANT ON ORDERS OF THE CHAIRMAN.
5. TELEPHONE CALLS BY THE CHAIRMAN TO EMPLOYEES' HOMES AT ALL HOURS
OF THE NIGHT.
6. TELEPHONE CALLS TO MEMBERS OF PERSONNEL STAFF ON WEEKENDS DIRECT-
ING THEM TO REPORT TO HIS OFFICE IMMEDIATELY.
7. CONFUSES STAFF PERSONNEL BY ISSUING ORDERS CONTRARY TO POLICY SET
BY THE COMMISSION.
8. LABOR UNION IS FILING GRIEVANCES AND UNFAIR LABOR PRACTICE CHARGES.
9. ON NOVEMBER 12, 1974 THE COMMISSION AS A BODY (WITH A NEGATIVE
VOTE BY THE CHAIRMAN), ORDERED THAT AN INVESTIGATION BE MADE OF
ALLEGED SERIOUS INTERNAL PERSONNEL PROBLEMS REPURTED WITHIN THE
FINANCIAL MANAGEMENT DIVISION. REQUIRING THE PREPARATION OF A
REPORT OF FINDINGS AND CORRECTIVE ACTIONS TAKEN. THE REPORT TO
BE ISSUED SIMULTANEOUSLY TO THE CHAIRMAN AND THE COMMISSIONERS.
TO DATE, IT IS NOT KNOWN IF THE INVESTIGATION HAS BEEN MADE AND
NO REPORT HAS BEEN MADE TO THE COMMISSIONERS.
FORD is LIBRARY GERALD
R TAB
INEFFICIENT ACCOUNTING AND OVEREXPENDITURE
OF
APPROPRIATED FUNDS
FORD i LIBRARY
( present
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
Commission
December 20, 1974
Subject: Financial Matters of Concern to the Commission
I. Audit of the Financial Management Division
November 12, 1974 motion directing audit staff to audit
the Financial Management Division and submit the
report simultaneously to the Chairman and Commissioners.
November 15, 1974 memorandum from the Chairman to the
Commissioners advising that a study group consider
the matters raised in the resolution.
November 15, 1974 memorandum from Commissioner Walsh to
the Chairman advising that his proposed method was
not consistent with the proposed resolution.
November 15, 1974 memorandum from Commissioner Telles to
the Chairman referring to inadequate statements of
the Chairman and pointing out that the motion passed
explicitedly ordered that an audit be made of the
Financial Management Division.
November 19, 1974 memorandum from Commissioner Lewis to
the Chairman requesting a meeting "In light of the
continuing misunderstanding and misdirection of
staff."
November 19, 1974 memorandum from Commissioner Walsh to
the Chairman requesting such a meeting.
November 20, 1974 memorandum from the Chairman to the
Commissioners indicating that an audit report would
go to the Chairman and that the Chairman would
report the results to the Commissioners.
GERALD
LIBRARY
Page 2
November 21, 1974 memorandum from Commissioner Walsh to
the Chairman pointing out that the motion clearly
states that the report be submitted simultaneously
to the Chairman and the Commissioners.
November 21, 1974 memorandum from Commissioner Lewis to
the Chairman once more requesting a meeting with the
Internal Audit Staff to clarify any misunderstanding.
November 22, 1974 memorandum from Commissioner Telles to
the Chairman that all reports be distributed immedi-
ately by the Audit Staff to all Commissioners as
indicated in the approved resolution.
November 22 1974 memorandum from Commissioner Lewis to
the Chief of the Internal Audit Division requesting
copies of any interim report.
November 22, 1974 memorandum from Chief of the Internal
Audit Staff to Commissioner Lewis indicating that he
had been directed by the Chairman that the Chairman's
Office was to disseminate all information.
November 22, 1974 memorandum from the Chairman to Commissioner
Lewis indicating that the Chairman will be making
any reports as may be required.
November 26, 1974 motion passed by the Commission clarifying
any possible misunderstanding.
NOTE: At the November 26, 1974 Commission meeting, the
Chairman declared the above motion out of order.
It was appealed. The appeal was successful. The
motion passed. The Chairman refused to provide
interim reports as required by the resolution.
December 18, 1974 letter from Chairman Powell to the
Assistant to the President, Office of Management and
Budget, reporting violation of the Antideficiency Act.
FORD
II. Cost of Move
RALD
November 12, 1974 motion requiring itemized information
LIBRARY
concerning the cost of the move. Motion was passed
3-1. No information received to date.
EQUAL EMPLOYMENT
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
Commission
Excerpt from Summary Report of Commission Meeting of November 12, 1974
Page 6
(D) Financial Management Division; Audit Requested
Commissioner Telles made the following motion:
That an audit be made of the Financial Management Division
immediately by EEOC Audit staff, inasmuch as it has been
brought to the attention of the Commissioners that there
exist serious problems in the operation and accuracy in
reporting and accounting functions in that office.
The Office of Management and Budget has expressed on various
occasions a concern for the lateness and inaccurate financial
data submitted to their office as required by OMB Circular
A-34.
Necessary qualified personnel is to be made available to the
Audit staff so that the audit may be expeditiously conducted
and completed. Copies of the complete report will be submitted
simultaneously to the Chairman and the Commissioners.
Chairman Powell, when reviewing the motion earlier, had stated that
he had requested an audit on November 11. He asked A. Golub, Deputy
Executive Director, to be sure that the memorandum on the matter had
gone forward. Golub said that "something is already underway."
Commissioner Walsh seconded the motion, which was adopted by a vote
of 3-0. CommissionersLewis, Telles and Walsh voted in the affirmative,
Chairman Powell abstained.
FORD is LIBRARY
K
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
RECEIVED IN
WASHINGTON, D.C. 20506
1)
15 NOV 1974
RECEIVED IN
NOV
OFFICE OF
MEMORANDUM
NOV 15 1974
COMMISSIONER WALSH
OFFICE OF
TO:
Commissioner Lewis
COMMISSIONER WALSH
Commissioner Telles
Commissioner Walsh
FROM:
John Chairman H. Powell, Jr. John 21 Powel J.
SUBJECT: Commission Resolution Concerning Audit of the
Financial Management Division
I am attaching for your information several memoranda concern-
ing the establishment of a Financial Management Study Group.
As you will note, this Study Group is addressing the problems
described in the resolution passed by the Commission on
November 12, 1974 and is to complete its work by the end of
December.
In order to avoid duplication of effort, I am asking the Study
Group to consider the matters raised in the Commission reso-
lution and in Commissioner Telles' memorandum of November 11.
Copies of the Study Group's report and recommendations, as
well as those submitted by Mr. Fleming and Ms. Duggar, will
be made available to you.
Attachments
CC: Mr. Fleming
Ms. Duggar
Mr. Huber
FORD is 074870 LIBRARY
THENT
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
: 1)
November 15, 1974
MEMORANDUM FOR:
John H. Powell, Jr.
Chairman
Subject: Commission Resolution Concerning Audit of
the Financial Management Division
Your Memorandum of November 15, 1974
I do not consider the content of the subject memorandum
consistent with the Commission resolution passed at the
meeting on Tuesday, November 12, 1974.
The resolution clearly states, "That an audit be made of
the Financial Management Division immediately by EEOC Audit
Staff".
Your requesting a study group to "consider the matters
raised in the Commission resolution" in no way is in
accord with the wording or intent of the Commission
resolution.
Other Wall
Ethel Bent Walsh
Commissioner
CC: Commissioner Colston A. Lewis
Commissioner Raymond Telles
Mr. Harold S. Fleming
Ms. Yvette Duggar
Mr. Richard Huber
FORD & LIBRARY
-3YMENT
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
(
1)
November 15, 1974
MEMORANDUM:
TO:
Chairman John H. Powell, Jr.
FROM:
Commissioner Raymond L. Telles
SUBJECT: Memorandum dated 15 November 1974 from Chairman John H.
Powell, Jr., "Commission Resolution Concerning Audit of
the Financial Managment Division"
Attachments:
Memorandum dated 7 November 1974 from Chairman John H.
Powell, Jr. to Ms. Yvette W. Duggar, Director, Office
of Management; "EEOC Accounting System"
Route Slip - dated November 14, 1974 from Chairman
Powell to Commissioner Telles:
Reference statements attributed to Mr. Harold Fleming
Let me preface my reply to your Memorandum, dated 7 November 1974
and Route Slip, dated November 14, 1974, by stating unequivocally
that your allegations in both your Memorandum and Route Slip are
totally inaccurate. I was never made aware of by you or any one
of your staff members, or did anyone discuss with me or did I at
any time agree to what you call various actions and steps being
taken to resolve the problems in the Financial Management Division.
I believe that you will agree with me that attributing actions
or statements to a person which have not taken place constitute
a most serious act.
Your attention is invited to my memorandum addressed to you,
dated October 22, 1974, expressing my concern with the problems in
reporting and accounting in the Financial Management Division. I
strongly recommended to you that an audit should be made of that
office and I outlined the reasons.
It was apparent to me that you did not agree with my recommendation
for instead, I received a copy of your memorandum, dated 7 November
1974 to Ms. Yvette W. Duggar alledging a number of things which
were totally inaccurate. Your attention is invited to my reply of
November 11, 1974 refuting your allegations.
RECEIVED IN
LIBRARY GERALD P. FORD
NOV 15 1974
OFFICE OF
COMMISSIONER WALSH
2.
You and I have never discussed or have reached an understanding of
the complexities of the situation as you stated. You and I have
never discussed and I have never considered or agreed with you to
the appointment of a Financial Management Study Group as you stated.
Most vehemently, I state to you that your statement that I discussed
with you or that I agreed to nominate on behalf of the other
Commissioners an individual who will participate as coordinator of
the study group you proposed is totally erroneous. This action on
my part would have been most presumptuous, particularly since this
matter has never been discussed with the other Commissioners.
Please refer to my Memorandum, dated November 11, 1974 addressed
to you (Subject: EEOC Accounting System, November 7, 1974) in
which I advised you in no uncertain terms that the assumption and
statements in your memorandum dated November 7, 1974 were totally
incorrect. Also, in this memorandum I reiterated my strong
recommendation for an audit of the Financial Management Division.
In further reference to your memorandum, dated 15 November 1974,
it is my personal view and in my opinion, the appointment of a
Study Group is not the answer to the solution of the problems in
that Division. It is not possible to resolve or eliminate a prob-
lem, as serious as this one, unless you first determine what the
problem is and what is causing it. On the basis of the results
of an audit, a course of action can be determined to solve the
problem, if you wish, by a Study Group, who will consider the
problems and recommendations listed by the Audit Staff.
In so far as the statement in your memorandum, dated 15 November
1974, "In order to avoid duplication of effort, I am asking the
Study Group to consider the matters raised in the Commission
resolution and in Commissioner Telles' memorandum of November 11,
1974," I would like to suggest to you that the Commissioners'
order by majority of votes on November 12, 1974 is clear and very
explicit in ordering that an audit be made of the Financial Manage-
ment Division. Also, I do not consider the audit to be a dupli-
cation of effort. Certainly not in substance and since the
Commissioners did not order the formation of a Study Group. I
might add that there is substantial difference between a "review"
and an "audit". Also, in your memorandum, dated November 7, 1974,
you stated that the Study Group would be functioning on November 13,
1974, one day after the order by the Commissioners on November 12,
1974 to conduct the audit. The Commissioners' directive also
stated that necessary qualified personnel be made available to the
Audit Staff so that the audit may be expeditiously conducted and
completed.
R.
FORD
GERALD
LISTRAY
3.
Another item of importance and concern was brought to your attention
by my Memorandum, dated October 22, 1974, in reference to a contract
for the sum of $122,600 signed with Forward Management, Inc. The
contract was issued for the purpose of producing a Contract Manage-
ment Manual. In my memorandum, I expressed to you my concerns.
I received your memorandum, dated October 29, 1974, in reply,
and with all due respect do not consider it as a satisfactory
response to my concerns in this connection. I might add that this
contract was not presented to the Commissioners for consideration
and approval. or disapproval.
CC: Commissioner Ethel B. Walsh
Commissioner Colston Lewis
Mr. Harold Fleming
Mr. Richard Huber
FORD is 0ERALD LIBRARY
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
November 19, 1974
RECEIVED IN
NOV 19 1974
OFFICE OF
MEMORANDUM FOR:
COMMISSIONER WALSH
John H. Powell, Jr.
Chairman
SUBJECT:
Commission Resolution to Audit the
Financial Management Division
The Commission Resolution of November 11, 1974,
requesting an audit of the Financial Management
Division was clear and definitive in requesting and
directing that a full and complete audit be conducted
by the Internal Audit Division. This resolution
contained no reference to a "study group,' as you
and the Executive Director seem to think. In fact,
to the contrary, the resolution contains no latitude
to do other than the resolution specifically directs.
Nor is the said audit to be limited to five areas
contained in the Executive Director's memorandum
dated November 19, 1974, on this subject (copy
attached), again contrary to the explicit directions
of the Commission. I find both your memorandum on
this subject and the Executive Director's memorandum
on this subject to be totally unresponsive to the
will of the Commission. I expect this misdirection
to be rectified immediately in accordance with the
Commission Resolution on this subject.
In light of the continuing misunderstanding and
misdirection of staff concerning the implementation
of the Commission resolution on this subject. I
hereby request that a special meeting of the Commission
&
FORD
GERALD
LIBRARY
Chairman Powell
Page 2".
be immediately convened with the members of the
Internal Audit Division in order to establish time-
tables and procedures and to provide clear directions
to staff on this matter. Surely this matter deserves
your immediate attention.
Colston A. Lewis
Commissioner
CC:
Commissioner Walsh
Commissioner Telles
Executive Director
General Counsel
Mr. Huber, Supervisory Auditor
FORD is LIBRARY
NUAL EMPLOYMENT
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
(7) Communication
November 19, 1974
MEMORANDUM FOR:
John H. Powell, Jr.
Chairman
Subject: Special Meeting of Commission
Per November 19, 1974 Request of
Commissioner Colston A. Lewis
I believe Commissioner Lewis' request for a special
meeting to provide direction to the Internal Audit
Division is both appropriate and imperative.
I will be available for such a meeting any time this
week except between the hours of 12:45 p.m. thru 2:30 p.m.
on Wednesday, November 20, when I will be delivering a
speech.
I will look forward to prompt scheduling of this meeting.
the But Wall
Ethel Bent Walsh
Commissioner
CC: Commissioner Colston A. Lewis
LIBRARY GERALD ? FORD
Commissioner Raymond Telles
General Counsel William Carey
Acting Executive Director Harold Fleming
Supervisory Auditor Richard Huber
RB
DEPARTMENT
equal EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
3
NOV 20 1974 RECEIVED: IN
MEMORANDUM
NOV 21 1974
TO
: Commissioner Telles
OFFICE OF
COMMISSIONER WALSH
Commissioner Walsh
Commissioner
FROM
:
John
Chairman H. Powell, Lewis Jr.
SUBJECT: Commission Resolution to Audit the Financial
Management Division
This memorandum supplements the memorandum from
Mr. Fleming on this date, same subject.
Mr. Huber is to operate independently of staff
in carrying out his audit responsibilities. He
is to report and make recommendations growing
out of his audit activities to the Chairman.
The Chairman will report the results of the
audit to the Commission.
CC:
Mr. Huber
Ms. Duggar
Mr. Golub
Mr. Fleming
LIBRATT GERALD R. FORD
DESK
EMPLOYMENT
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
1)
November 21, 1974
MEMORANDUM FOR:
John H. Powell, Jr.
Chairman
Subject: Commission Resolution to Audit the Financial
Management Division
Your memorandum of November 20 appears to be another attempt to
circumvent the will of the Commission in regard to an audit of
the Financial Management Division. The motion passed on
November 12, 1974 clearly states that, "Copies of the completed
report will be submitted simultaneously to the Chairman and the
Commissioners. = (emphasis supplied).
This is the third in a series of memoranda proposing action
other than that required by three Members of the Commission.
Your reluctance to have an audit made of the Financial Manage-
ment Division and the results submitted to the Members of the
Commission is difficult to understand.
Further delay in carrying out the intent of the Commission could
raise serious doubts concerning the conduct of the Financial
Management Division.
To Wale
Ethel Bent Walsh
Commissioner
CC: Commissioner Colston A. Lewis
Commissioner Raymond L. Telles
Mr. Harold S. Fleming
Ms. Yvette Duggar
Mr. Richard Huber
FORD & 037070 LIBRARY
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
DEPARTMENT
RECEIVED IN
NOV 21 1974
OFFICE OF
November 21, 1974
COMMISSIONER WALSH
MEMORANDUM FOR:
John H. Powell, Jr.
Chairman
SUBJECT:
Audit of the Financial Management Division -
Memorandum of November 20, 1974
In regard to your memo of November 20, 1974, which states that
Mr. Huber will report to the Chairman as to the findings of the
Financial Management Division and which the Chairman will then
report to the Commissioners, is not in accord with the resolution
passed by the Commission.
Explicit in the resolution from the Commission for an audit of
the Financial Management Division was that the report of the
audit findings would be made to the Chairman and the Commissioners
simultaneously. Then why not, in order that there will be no
misunderstanding, we should meet to make sure that all parties
understand what the Commission expects.
I have, by memorandum to you of November 19, 1974, requested
that there be a Commission meeting with the Internal Audit
Division to provide specific directions and to clarify any
misunderstanding which still apparently exists.
Colston A. Lewis
Commissioner
CC: All Commissioners
Executive Director
Mr. Huber
General Counsel
FORD is 078800 LIBRARY
EQUAL PAPLOYMENT
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
7
1)
November 22, 1974
MEMORANDUM
TO:
Chairman John H. Powell, Jr.
FROM:
Commissioner Raymond L. Telles
SUBJECT: Commission Resolution of November 12, 1974 to
Audit the Financial Management Division
Memorandum from the Chairman, dated November 20,
1974, Commission Resolution to Audit the Financial
Management Division
The clear intent and purpose of the subject resolution was
that all reports (including interim reports) of the EEOC
Audit Staff be submitted simultaneously to the Chairman
and the Commissioners.
Thus, your November 20, 1974 memorandum which indicates
that Mr. Huber will report his findings to you and there-
after you would report to the Commissioners is absolutely
aforementioned resolution.
inconsonant with Commission policy as established by the
In line with this policy, if any reports have in fact been
issued by the Audit Staff regarding the Financial Management
Division, the same should be distributed immediately by the
Audit Staff to all Commissioners as directed in the approved
resolution. To proceed in any other manner will be in
violation of the Commission's resolution and policy.
The Audit Staff should be apprised of this policy so that
in the future there is no misunderstanding on the part of
anyone concerned.
CC: Commissioner Colston Lewis
Commissioner Ethel Bent Walsh
Mr. Huber
Ms. Duggar
Mr. Fleming
Mr. Golub
RECEIVED IN
FORD is LIBRARY
NOV 25 1974
OFFICE OF
COMMISSIONER WALSH
RECEIVED IN
NOV 22 1974
November 22, 1974
Richard Huber, Chief
Internal Audit Division
OFFICE OF
COMMISSIONER WALSH
Colston A. Lewis
Commissioner
Audit - Financial Management Division
I have been advised that the Internal Audit Division
has recently submitted to the Chairman an interim
memorandum or draft report relative to the current
audit of the Financial Management Division. Neither
I nor my fellow commissioners have received copies
of this memorandum. This action is in derogation
of the Commission resolution on this subject which
explicitly states that all reports and memoranda on
this subject are to be submitted to the Chairman
and Commissioners simultaneously. I fully expect
you to comply with the Commission resolution in its
entirety; and I expect to be furnished copies of
said memorandum by the close-of-business today.
CC:
Chairman Powell
Commissioner Walsh
Commissioner Telles
Executive Director
General Counsel
FORD is 076830 LIBRARY
UNITED STATES GOVERNMENT
Memorandum
EQUAL employment opportunity commission
TO
: Colston A. Lewis
Commissioner
DATE: November 22, 1974
In reply refer to:
FRQM : Richard F. lluber, Chief R2H.
Internal Audit Staff
RECEIVED IN
SUT ECT: Audit of the Financial Management Division
NOV 25 1974
OFFICE OF
COMMISSIONER WALSH
This I is in reference to your memorandum dated November 22, 1974.
am aware of the Commission resolution on the Audit of the
Chairman Financial Management Division, However, I have been directed by the
your that his office will disseminate all information. Therefore,
request has been forwarded to the Chairman office for action.
cc: Chairman Powell
Commissioner Walsh
Commissioner Telles
is
FORD
GERALD
LIBRATA
BUY U.S. SAVINGS BONDS REGULARLY ON THE PAYROLL SAVINGS PLAN
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON, D.C. 20506
RECEIVED IN
November 22, 1974
NOV 25 1974
OFFICE OF
THE CHAIRMAN
COMMISSIONER WALSH
OFFICE OF
MEMORANDUM TO: Colston A. Lewis
FROM:
John Commissioner Chairman H. Powell, Jr.
Mr. Huber has brought your memorandum to him of today's
date regarding the audit of the Financial Management Division
to my attention.
The attached memorandum of November 20, 1974, is self-
explanatory and explains that in accordance with the purpose for
which agency heads have been afforded the tool of an independent
audit unit, the Chairman -- not Mr. Huber -- will be making
such dissemination as the contents of the as yet unfinished
report may require.
If you have further questions regarding this matter, feel free
to contact me.
cc: Commissioner Telles
Commissioner Walsh
Executive Director
General Counsel
FORD is 07V830 LIBRARY
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
Cut
WASHINGTON, D.C. 20506
NOV 20 1974
MEMORANDUM
TO
:
Commissioner Telles
Commissioner Walsh
FROM
:
Commissioner John Chairman H. Powell, Lewis Jr. Jihn
SUBJECT: Commission Resolution to Audit the Financial
Management Division
This memorandum supplements the memorandum from
Mr. Fleming on this date, same subject.
Mr. Huber is to operate independently of staff
in carrying out his audit responsibilities. He
is to report and make recommendations growing
out of his audit activities to the Chairman.
The Chairman will report the results of the
audit to the Commission.
CC:
Mr. Huber
Ms. Duggar
Mr. Golub
Mr. Fleming
FORD is LIBRAR
November 26, 1974
In order to clarify any possible misunderstanding regarding the resolution
approved at the November 12, 1974 Commission Meeting ordering an audit of
the Financial Management Division the following motion is proposed:
MOTION
The intent and purpose of the November 12, 1974 resolution was that copies
of all reports, including interim reports, will be submitted to the Chair-
man and the Commissioners simultaneously. Any reports and/or memorandums
that have been prepared or issued by the Audit Staff since the November 12,
1974 resolution shall be made available to the Chairman and the Commissioners
forthwith.
3-1 3.1
my
FORD is 07VN LIBRARY
DEC 1 8 1974
COPY
Dear Mr. Ash:
The Equal Employment Opportunity Commission reports a violation
of Section 3679 of the Revised Statutes, as amended. This vio-
lation constitutes a deficiency in account 4540100 Salaries and
Expenses, totalling $800,000.
The Officers of the Commission responsible for violations are:
Ms. Yvette Duggar, Director, Office of Management
Ms. Clarice Bryce, Financial Manager
Ms. Marlene Lee, Chief Accountant
The violations occurred as follows:
A. $200,000 Chief of Administrative Services Branch issued
an obligating document although he was aware that he did not
have the authority. In addition, there was no evidence that
this obligating document was processed through Financial
Management.
B. $208,000 - Financial Manager arbitrarily transferred a
legal obligation from FY 1974 to FY 1975. In reversing
the illegal transfer, the obligation compounded the viola-
tion of the Anti-Deficiency Act.
C. $188,000 - Represents valid obligations posted to ac-
counting records but, due to four key-punching errors
totalling $10 million, the overobligation was not re-
flected. It is apparent these accounting records were
not properly reconciled to the source documents.
FORD : LIBRARY QERALD
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D. $180,000 - Headquarters and field offices delayed ex-
tensively the processing of obligating documents to the
Financial Management Division. Also, Headquarters and
field offices did not process several obligating docu-
ments through the Financial Manager for the certifica-
tion of funds.
E. $24,000 - The Accounting Branch did not reserve suf-
ficient funds for recurring expenses (e.g., telephone
bills, motor pool bills, etc.).
$800,000 - TOTAL
Disciplinary action will be imposed in the following manner:
Ms. Yvette Duggar: Suspension for 20 work days
without pay and letter of warning to be included
in official personnel record upon her return to
duty;
Ms. Clarice Bryce: Suspension for 20 work days
without pay and reassignment to other duties with-
in the Commission.
Ms. Marlene Lee: Suspension for 20 work days
without pay. *
The following corrective action has already been implemented
or will be implemented within fifteen days:
1. An internal audit of FY 1975 transactions
has been ordered;
2. A Fund Control Unit will be established
within the Accounting Section;
* Since release of this letter, on advice from Ms. Gary in Personnel,
additional disciplinary action is recommended in the form of re-
assignment to other duties not involved in the committment or
obligation of Federal funds.
FORD is LIBRARY SENALD
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3. A reorganization of the Division of Financial
Management is in progress, specifically, merg-
ing the budget execution function with the
budget formulation function within the Office
of Program Planning and Evaluation;
4. A request for assistance will be made to GAO
or other federal agencies for the reimbursable
detail of properly trained accountants for a
period of sixty days;
5. An effort will be made to retrain Commission
accountants and voucher examiners to assure
conformity to existing federal regulations;
6. An edit routine will be established in the new
computerized accounting system to identify
errors in input as well as key-punching errors
to assure accurate output;
7. A status of allotment report will be available
to Program Managers and Regional Directors 15
calendar days after the close of each month;
8. Unqualified employees within the Division of
Financial Management will be reassigned.
Properly qualified federal accountants with
supervisory experience will be identified as
replacements.
The administrative control currently being implemented by the
Commission to assure compliance with federal regulations will
require every obligation of funds to be supported by a pro-
perly executed obligating document, signed by (1) the Program
Manager, (2) a designated budget officer and (3) a funds con-
trol officer. The latter signature will be affixed following
the official stamp of the Commission with a statement to the
effect that funds are available to cover the obligation.
ESALD R. FORD
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Statements of the three Commission officers held responsible
for the violations as required by federal regulations con-
tained in OMB circular A-34 will follow.
Sincerely,
John H. Powell, Jr.
Chairman
Mr. Roy L. Ash
Assistant to the President
Office of Management and Budget
The White House
Washington, D. C. 20500
FORD
MOTION
Inasmuch as the Commissioners were not initially consulted nor
requested to authorize the necessary funds to cover the cost of
the move, an audit is appropriate in order that the Commissioners
may be informed as to the current status of the move, the cost
to date, and the estimated total cost of the project, therefore,
an audit shall be conducted immediately by the EEOC Audit Staff
into the cost of the move of EEOC Headquarters from the presently
occupied buildings to the Columbia-Plaza Building on Virginia
Avenue, Washington, D. C. A detailed audit, by offices, of all
costs to include the following itemized information:
1. The original estimated cost of the move.
2. The amounts disbursed to date.
3. The amounts committed to date.
4. The additional amounts estimated to be spent to complete
the move.
5. The current estimated total and final cost of the move.
6. List of major items, and cost by offices, included in
the total estimated cost.
7. Information as to the status of the move and estimated
date on which the move will be completed.
8. Any other pertinent cost data or information on the
move considered of importance and interest to the
Chairman and the Commissioners in the performance of
their duties and discharge of responsibility.
9. Are the necessary funds included and available in the
1975 Budget?
FORD & LIBRARY 038470
2.
Necessary qualified personnel will be provided to the Audit
Staff.
Copies of the complete report to be submitted simultaneously to
the Chairman and the Commissioners no later than December 16,
1974.
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FINANCIAL MANAGEMENT DIVISION
THIS OFFICE IS IN COMPLETE DISARRAY. UNABLE TO PERFORM PROPERLY
AND FAILURE TO ISSUE FINANCIAL REPORTS ON TIME AND REPORTS ISSUED
TO OMB ARE INCORRECT.
ALSO, MONTHLY FINANCIAL STATUS REPORTS ISSUED FOR THE USE OF THE
COMMISSION ARE DEFICIENT AND CONTAIN MANY GROSS ERRORS.
1. IMPOSSIBLE TO APPROVE SUBSTANTIAL FINANCIAL OBLIGATIONS SINCE THE
TRUE AND CORRECT STATUS OF FINANCES IS NOT KNOWN. ALSO, DUE TO
SUBSTANTIAL OVER-OBLIGATION OF FUNDS IN FY-1974.
2. FOR EXAMPLE: AT END OF SEPTEMBER, 1974, THE FINANCIAL REPORT
COMPILED INDICATED TOTAL OBLIGATIONS OF $435 MILLION DOLLARS
AS AGAINST A BUDGET OF $53 MILLION DOLLARS. THIS REPORT WAS
REVISED DOWN TO A SUM OF $13 MILLION DOLLAR OBLIGATIONS, BUT
STILL IS INACCURATE AND SHOWED AS ONE EXAMPLE, A HEALTH BENEFITS
ITEM OF $1,350,000 WHICH IS COMPLETELY OUT OF LINE.
ALSO, THE REPORT FOR SEPTEMBER SHOWED TOTAL OBLIGATIONS ON PER
DIEM TO BE $252,671.00; HOWEVER, A MONTH LATER THE OCTOBER REPORT
SHOWED TOTAL OBLIGATIONS ON PER DIEM OF $5,343,000. AN INCREASE
OF OVER $5 MILLION DOLLARS IN ONE MONTH, WHICH IS GROSSLY
INCORRECT AND IMPOSSIBLE.
FORD : LIBRANY EERAL
AUDIT OF FINANCIAL MANAGEMENT DIVISION
ON NOVEMBER 12, 1974, IN VIEW OF THE CONCERN AND DEFICIENCIES CON-
TAINED IN THE MONTHLY FINANCIAL REPORTS, THE COMMISSION AS A BODY
VOTED (THE CHAIRMAN ABSTAINED) TO ORDER THE AUDIT STAFF TO CONDUCT
AN AUDIT OF THE ACCOUNTING AND REPORTING FUNCTIONS OF THE FINANCE
MANAGEMENT DIVISION. THIS AUDIT WAS NECESSARY TO DETERMINE THE
CORRECT FINANCIAL STATUS OF THE COMMISSION IN ORDER THAT ACTION
COULD BE SAFELY TAKEN IN THE APPROVAL OF SUBSTANTIAL FINANCIAL
OBLIGATIONS. THE RESOLUTION REQUIRED THE ISSUANCE OF A REPORT TO
THE CHAIRMAN AND THE COMMISSIONERS SIMULTANEOUSLY.
THE CHAIRMAN REPEATEDLY REFUSED TO HAVE THE AUDIT MADE, HOWEVER, IT
WAS FINALLY INITIATED. AT LEAST TWO INTERIM REPORTS WERE ISSUED TO
THE CHAIRMAN ON THE AUDIT. THE CHAIRMAN REFUSED TO HAVE COPIES OF
REPORTS ISSUED TO THE COMMISSIONERS. HE THREATENED TO FIRE THE CHIEF
OF THE AUDIT STAFF IF HE PROVIDED COPIES OR INFORMATION TO THE COM-
MISSIONERS. IT WAS ASSUMED THAT THE REASON FOR HIS ACTION IN WITH-
HOLDING INFORMATION FROM THE COMMISSIONERS IS THE FACT THAT THE RE-
PORTS INDICATED OVER-OBLIGATION OF FUNDS FOR FY-1974.
FORD & G7V930 LIBRARY
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OVER-OBLIGATION OF FUNDS
1. AN AUDIT REPORT JUST ISSUED ON THE FINANCIAL MANAGEMENT DIVISION
ON DECEMBER 16, 1974, SHOWS AN OVER-OBLIGATION OF $800,000 FOR
FY1974. THERE MAY BE OTHER OVER-OBLIGATED SUMS FOUND ONCE THE
AUDIT IS COMPLETED.
2. THERE IS CONCERN THAT THE COMMISSION MAY AGAIN OVER-OBLIGATE
FUNDS FOR FY1975. ACCORDINGLY, THE EXECUTIVE DIRECTOR HAS
INITIATED THE NECESSARY ACTION TO CANCEL OR REDUCE A NUMBER OF
THE CONTRACTS NOW IN EXISTENCE.
3. AN ATTEMPT WAS MADE TO TRANSFER THE OVER OBLIGATION OF $200,000
ON THE TRAINING ACADEMY TO FY-1975 ALTHOUGH CONTRACTED IN FY-1974.
HOWEVER, SINCE IT IS NOT LEGAL, THE AUDITORS INSISTED THAT THIS
SUM REMAIN AS AN OVER-OBLIGATION AGAINST FY-1974.
OVER OBLIGATION OF FUNDS IS A VIOLATION OF THE ANTI-DEFICIENCY
ACT AND THEREFORE:
1. VIOLATIONS MUST BE REPORTED IMMEDIATELY TO THE PRESIDENT
THROUGH THE DIRECTOR OF OMB AND THEN A REPORT MADE TO
THE CONGRESS.
2. THOSE RESPONSIBLE MUST BE IDENTIFIED AND APPROPRIATE
DISCIPLINARY ACTION TAKEN.
3. A SYSTEM MUST BE PUT INTO EFFECT TO PREVENT SIMILAR
RECURRENCE.
FORD & LIBRARY 078870
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ACTIONS THAT REQUIRE SOME EXPLANATION
1. THE CHAIRMAN HAS INSTRUCTED THE EXECUTIVE DIRECTOR TO EMPLOY SO
CALLED "OUTSIDE EXPERTS" TO VERIFY THE ACCURACY OF THE AUDIT FIND-
INGS RE: FY 1974 OVER OBLIGATIONS. SUPPOSEDLY SO THAT NO DOUBTS
CAN BE CAST ON THE VALIDITY OR ACCURACY OF THE AUDIT BECAUSE OF MR.
HUBER'S (CHIEF OF AUDIT STAFF) PREVIOUS ASSIGNMENT. MR. HUBER WAS
THE CHIEF OF THE FINANCIAL MANAGEMENT DIVISION AND LEFT THAT DIVI-
SION APPROXIMATELY ONE YEAR AGO.
THE CHAIRMAN MUST BELIEVE THAT THE AUDITORS" REPORT ON VIOLATIONS IS
CORRECT SINCE HE HAS ALREADY REPORTED TO OMB THAT HE HAS ORDERED
DISCIPLINARY ACTION AGAINST SOME OF THE VIOLATORS. ALSO, IT IS
POSSIBLE THAT THE EMPLOYMENT OF OUTSIDE AUDITORS OR EXPERTS IS A
VIOLATION OF GOVERNMENT REGULATIONS. IF EEOC AUDITORS ARE NOT
CAPABLE OF DOING THE JOB THEN GAO SHOULD BE CALLED IN. EMPLOYMENT
OF OUTSIDE EXPERTS TO TAKE OVER THE JOB OF AUDITING WOULD REPRESENT
A FURTHER WASTE OF GOVERNMENT MONEY.
SECONDLY, THE EEOC AUDIT STAFF HAS BEEN QUITE EFFECTIVE IN:
A. DETERMINING OVER-OBLIGATIONS IN FY-1974.
B.
FINDING INEQUITABLE ALLOCATION OF COSTS, UNLAWFUL SUBCON-
TRACTING, DOUBLE MARGIN OF PROFIT, ETC. IN CONNCECTION WITH
THE ISSUANCE OF CONTRACTS TO OPPORTUNITY SYSTEMS, UNDER THE
ASSUMED AUTHORITY OF THE CHAIRMAN, INVOLVING SEVERAL THOU-
SAND DOLLARS.
C.
DISCOVERING ATTEMPT TO TRANSFER FY-1974 OVER-OBLIGATION OF
$200,000 TO FY-1975.
2. THE REPORT ISSUED BY EEOC AUDIT STAFF ON DECEMBER 16, 1974 LISTS
FIVE (5) VIOLATIONS IN OVER-OBLIGATING OF FUNDS INVOLVING FOUR (4)
EMPLOYEES. THE REPORT FROM THE CHAIRMAN (DECEMBER 18, 1974) TO MR.
ASH (OMB) LISTS DISCIPLINARY ACTION TAKEN ONLY AGAINST THREE EM-
PLOYEES.
THE ONE MISSING INVOLVES THE OVER-OBLIGATION OF $200,000 OR 25% OF
THE TOTAL OVER-OBLIGATIONS FOR FY-1974 SO FAR REPORTED.
3. ATTEMPT MADE TO TRANSFER THE OVER-OBLIGATION IN FY 74 OF $200,00 ON
THE TRAINING ACADEMY TO FY 75 ALTHOUGH OBLIGATION CONTRACTED IN
FY-1974. THE TRANSFER WOULD HAVE BEEN ILLEGAL.
FORD
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