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that progress had been made since her last review, but that ultimate success of the project was in peril because of organizational problems.

As a consequence six actions have been taken:

* In order to provide a more direct relationship with the major user and operator of the system, responsibility for the project has been assigned to the Comptroller, Office of Accounting & Financial Services.

* The current project team has been reassigned, including transferring some key project staff to the Office of Accounting & Financial Services to form the nucleus of a new project team. Reassignment to existing vacancies will allow the Comptroller to supplement this nucleus with new hires.

* Project files and documentation have been brought up to date.

* The project has been temporarily halted.

* Price-Waterhouse has been contracted with to help Smithsonian staff reassess the project during the hiatus.

* Program management support is being sought from a major accounting or systems firm. Specific experience in implementing large, complex accounting systems is being sought.

The contract with Price-Waterhouse will allow staff to affirm and update the systems' functional requirements, review current hardware and software solutions, examine alternative solutions and recommend next steps for the project. It is hoped that these recommendations will include possible methods for implementing some system functionalities in the near term. Price-Waterhouse is expected to finish their assessment in October.

SENIOR LEVEL COMPENSATION

Effective May 5, 1991, all Federal senior employees were converted to the new gradeless senior-level pay system. This senior pay system was created by the Federal Employees Pay Comparability Act of 1990 (FEPCA). FEPCA abolished grades GS-16, 17, and 18 and replaced them with a single pay band for positions classified above GS-15 with salaries ranging from $73,972 to $108,300. As a matter of policy, senior trust graded employees were also converted to the new senior pay system created within the same guidelines as Federal senior employees. 

Under the new pay setting guidelines and procedures, salary reviews for Federal and trust senior employees have been accomplished. While selected senior trust employees (some assistant secretaries and bureau directors) are not a part of the new senior gradeless system, salaries for these employees were also considered at the same time.

As a result of the review, the Secretary has approved a number of salary increases for senior staff members effective July 28, 1991. Of the total 110 senior staff members reviewed, 88 (or 80%) received salary increases ranging from 0.2 percent to 45 percent; the average pay adjustment was 10 percent.