diff --git a/frontends/ParseOccam.hs b/frontends/ParseOccam.hs
index 325de96..e61d43f 100644
--- a/frontends/ParseOccam.hs
+++ b/frontends/ParseOccam.hs
@@ -1415,13 +1415,13 @@ pragma = do m <- getPosition >>* sourcePosToMeta
                             return (n, ProcName, n, fs, A.Proc m (A.PlainSpec, A.PlainRec) fs (A.Skip m))
                     else do sPROC
                             origN <- anyName ProcName
-                            fs <- formalList >>* map fst
+                            fs <- formalList'
                             sEq
                             n <- newProcName
                             return (n, ProcName, origN, fs, A.Proc m (A.PlainSpec, A.PlainRec) fs (A.Skip m))
                          <|> do ts <- tryVX (sepBy1 dataType sComma) sFUNCTION
                                 origN <- anyName FunctionName
-                                fs <- formalList >>* map fst
+                                fs <- formalList'
                                 sEq
                                 n <- newFunctionName
                                 return (n, FunctionName, origN, fs, A.Function m (A.PlainSpec, A.PlainRec) ts fs
@@ -1451,6 +1451,10 @@ pragma = do m <- getPosition >>* sourcePosToMeta
     isPragma (Token _ p@(Pragma {})) = Just p
     isPragma _ = Nothing
 
+    formalList' = do fs <- formalList >>= scopeInFormals
+                     scopeOutFormals fs
+                     return fs
+
 --}}}
 --{{{ processes
 process :: OccParser A.Process
diff --git a/transformations/SimplifyExprs.hs b/transformations/SimplifyExprs.hs
index 338daff..c3033cb 100644
--- a/transformations/SimplifyExprs.hs
+++ b/transformations/SimplifyExprs.hs
@@ -51,7 +51,15 @@ functionsToProcs = pass "Convert FUNCTIONs to PROCs"
   (Prop.agg_namesDone ++ [Prop.expressionTypesChecked, Prop.parUsageChecked,
         Prop.functionTypesChecked])
   [Prop.functionsRemoved]
-  (applyDepthM doSpecification)
+  (\t -> do exts <- getCompState >>* csExternals
+            exts' <- sequence [do st <- specTypeOfName $ A.Name emptyMeta n
+                                  A.Specification _ _ st'@(A.Proc _ _ fs' _) <-
+                                    doSpecification $ A.Specification
+                                      (findMeta st) (A.Name emptyMeta n) st
+                                  return $ (n, (extType, fs'))
+                              | (n, (extType, fs)) <- exts]
+            modify $ \cs -> cs { csExternals = exts' }
+            applyDepthM doSpecification t)
   where
     doSpecification :: A.Specification -> PassM A.Specification
     doSpecification (A.Specification m n (A.Function mf smrm rts fs evp))