The Commission for Economy in Governmental Expenditures was created for two years by Chapter 599 of the Acts of Assembly of 1958. This act provided that the Commission should consist of the Joint Auditing Committee of the Senate and the House of Delegates and that the Auditor of Public Accounts should act as executive secretary. The act imposed upon the Commission the duty of making studies for purposes of ascertaining whether services and personnel might be eliminated, or combined, in the interest of economical and efficient administration.

When the Auditing Committee of the General Assembly and the Auditor of Public Accounts studied the purchasing function of the State, they became convinced that there were definite opportunities for improvements and economies in inventory management of the several State agencies. Therefore the Commission undertook as its first objective a comprehensive study of inventory management, including warehousing operations on a state-wide basis.

In the conduct of this study the Commission and its executive secretary had the advice, counsel and assistance of Messrs. Donald T. Ward and Wesley R. Ellms of the firm of Worden & Risberg; management consultants, whom we engaged to assist in our study. Mr. Ellms, who was assigned on a full-time basis during the firm's engagement, had had considerable experience with industrial and other areas of inventory management and warehousing operations and rendered very valuable assistance in this study.

From the study has been prepared the report which follows this communication. The report sets forth our findings and recommendations. It has been reviewed with the Governor, who found himself in agreement with our recommendations, and on November 6, 1959, he issued instructions to the Director of the Department of Purchases and Supply to proceed immediately in putting into effect the recommended program and procedures.

The Commission and its executive secretary, the Auditor of Public Accounts, and the consultants wish to acknowledge the splendid cooperation of the departments, institutions and agencies of the State during the course of the study. The generous assistance of the Department of Purchases and Supply was especially helpful.

Respectfully submitted,

Thomas H. Blanton, Chairman
Lloyd C. Bird
Frank P. Moncure
George E. Allen, Jr.
W. Randy Smith

Commission for Economy in Governmental Expenditures