CONTRACTUAL COST FOR GRANT PROGRAMS

The amounts in the column "contractual cost" in the preceding world and area summary tables were computed on the basis of established unit costs developed from experience factors of costs of programs in prior years. Contracts are made with private agencies and working fund agreements with various Government agencies to assist the Department in carrying out certain parts of the Educational Exchange Program. The amounts indicated below represent administrative costs incurred by these agencies in performing services for this program:

The total of the amounts indicated under "Mission cost" in the world and area summary tables are reimbursed to the United States Information Agency for services performed in carrying out educational exchange programs overseas. These costs were developed by USIA from reports received from USIS missions overseas as to that portion of work of the respective staffs and of administrative support services attributable to educational exchange programs.

Overseas program expenses provide for man-years of American and local employees, hardship post differentials, living and quarters allowances, travel and transportation of Americans, and other related program expenses. Overseas administrative support services are handled by regular servicing elements of the Foreign Service, and estimate includes the pro rata share of United States mission expenses for the educational exchange program. The following table sets forth these costs for 1953, 1954, and 1955.

UNITED STATES EDUCATIONAL FOUNDATIONS AND COMMISSIONS

The amounts indicated under "United States Educational Commission cost" in the world and area summary tables indicate by country the administrative expenses for operating costs of binational foundations and commissions established pursuant to the Fulbright Act (Public Law 584, 79th Cong., as amended). These expenses represent cost necessary to administer the program overseas under the Fulbright Act. All such expenses are paid in local currencies of the particular country in which the foundation or commission is located.

The overall average of administrative costs for these binational foundations and commissions is approximately 8.5 percent (1953 and estimated for 1954) when compared with the total annual foreign currency programs. The following table sets forth the total cost for the 1953, 1954, and 1955 fiscal years:

1 Ceylon and Sweden began first year programs at reduced annual levels and administrative cost was very small.

MISCELLANEOUS PERSONAL SERVICES

The costs of these various items are predicated on the personal-service estimates for the staff and are at level consistent with those estimates. This represents a reduction over similar costs in fiscal year 1954.

The staff travel estimates are based on both domestic and foreign requirements. This Service has arranged contracts or working fund agreements with especially well qualified public and private organizations in the United States for the selection and placement of grantees, and supervision of their program. In order to insure compliance with the terms of the contracts, it is necessary that the Service supervise the activities of these organizations, including auditing the accounts to ascertain if funds were properly disbursed. This requires consultations with officers of the agencies, university and college administrators, the campus foreign student advisers, and interviews with the grantees. The Service is contantly striving to enlist the assistance of universities, colleges, private organizations such as Rotary International, Kiwanis, women's clubs, chambers of commerce, and similar public-spirited organizations to extend and improve the programs available to grantees. Such activities are best accomplished by visiting these organizations and public spirited citizens and discussing problems of mutual interest. In order to carry out such a program effectively, it is estimated that 80 such trips at a cost of $13,933 will be required for the fiscal year.

As a result of Reorganization Plan No. 8, the Department decided to make use of USIA overseas personnel in carrying out the overseas phase of the educationalexchange program.

It is necessary to visit posts to supervise the overseas operations of the personnel assigned by USIA to the educational-exchange function. Joint regional conferences of such personnel together with personnel from the binational foundations/commissions in the area are necessary to insure that the overseas responsibilities are properly carried out and guidance provided to increase the effectiveness of these activities. The fiscal records and accounts of the binational foundations/commissions must be audited to ascertain if the funds of the foundations/commissions were properly disbursed. It is estimated that 6 such trips will be required at a cost of $15,931 for the fiscal year.

Incoming prominent persons often do not have sufficient English language facility in order to gain the greatest value of the visit. In these cases interpreters are provided to accompany the visitor on his tour in this country so that he can gain the most out of his visit. This service will be provided by the Division of Translating Services, Department of State. The increase in 1954 is due to the increased number of leaders who require such service, particularly Italians and Japanese. The reduction in 1955 is attributable to the decreased program for this category.

Program assistance centers:

1954_.
1955

Increase or decrease (−) 1955 over 1954_.

$18, 950 39, 000

20, 050

During 1953 and a portion of 1954, Foreign Service officers were detailed to three regional offices of the Institute of International Education to assist in programing foreign leaders in the Chicago, Denver, and Los Angeles areas. The services of these officers can no longer be made available and the Department must pay for such services at approximately $13,000 at each regional office. The use of these particular regional offices are vital to the carrying out of the foreignleader program.