REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS + 49

ceipts collected from activities applicable to the harbors and air-
ports of the Virgin Islands be deposited into this fund. During
the fiscal year revenues deposited into the marine and aviation
fund amounted to $238,074.46. Of this amount $184,552 repre-
sented fees collected for harbor services, and $53,522.46 represented
collections for rentals and concessions, sale of government property,
and other miscellaneous service charges.
 Expenditures for the same period amounted to $236,195.66. The
fund is used for the operation of harbors and airports within the
Virgin Islands owned by the territorial government.

Federal Contributions
 During the fiscal year the Federal Government's contribution to
grant-in-aid programs and other programs amounted to $1,351,725.76,
an increase of .-':.:.,:.:.4.26 or 23.31 percent over similar contributions
of the previous fiscal year.

Department's Operations, Programs, and Policies
 During fiscal year 1962 a renovation and building project was
undertaken to provide more adequate accommodations for the De-
partment of Finance. During the latter half of the year the Pay-
roll and Data Processing Divisions moved into the new location.
It is anticipated that the entire Department will be relocated by
the end of fiscal year 1963. This move should relieve much of the
crowding which exists at the present time and enable the Depart-
ment to operate more efficiently.
 The Tax Division of the Department was completely reorganized
during the latter part of fiscal year 1962 with the view towards
improving the tax administration program. This organization
was accomplished with the assistance of the US Internal Revenue
Service.
 Plans for the change-over from a decentralized to a centralized
system of accounts were completed during fiscal year 1962. Imple-
mentation of the new system was scheduled to begin on July 1,
1962.
 Certain changes in salary tables contributed to a slight easement
in the personnel recruitment program. Generally, however, the
problem of recruiting and retaining qualified personnel continued
during the year.