MEMORANDUM FOR THE HEADS OF DEPARTMENTS AND AGENCIES FROM LYNDON JOHNSON

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R00967A001000020009-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 21, 2016
• Document Release Date: August 4, 2006
• Sequence Number: 9
• Publication Date: May 24, 1966
• Content Type: MF

?r
Approved For Relf6ase2006/08/09: CIA-RDP79R00967A001000020009
THE WHITE HOUSE
May 24, 1966
MEMORANDUM FOR THE
' L.x9cufivee Ileegie
HEADS OF DEPARTMENTS AND AGENCIES
Secretary Fowler, Budget Director Schultze and Comptroller
General Staats have just informed me about their plans to
accelerate the pace of the Joint Financial Management Improve-
ment Program. They have asked Civil Service Chairman Macy
to assist in this worthy undertaking.
I have-a strong and continuing interest in the development of
business-like financial systems throughout the Federal Govern-
ment. Such systems are essential.to assist in carrying out a
basic pledge of this Administration -- to get a dollar's value for
a dollar spent. We must have financial systems which:
provide the information our managers need for
effective cost control -- for waging the war on
waste,
develop cost consciousness in men and women
at every level of responsibility in every agency,
assure financial integrity in everything the
Government does,
provide the types of financial data needed to
support the planning -p rog ramming-budgeting
system initiated last August, and
enable the Government to apply,the best and most
efficient management and operating techniques.
MORUCIDIF,
Approved For Release 2006/08/09: CIA-RDP79R00967A001000020009-0
 'Approved For Release 2006/08/09: CIA-RDP79R00967A001000020009-0
I am particularly pleased that the central agencies -- representing
both the legislative and the executive branches -- will spearhead,
with your active participation, a renewed joint program in this vital
area of direct interest to both the Congress and the President.
The legislative groundwork for this program was laid sixteen years
ago. While much progress has been made, much more is necessary
if we are to discharge the responsibility placed upon us by the Budget
and Accounting Procedures Act of 1950. Accordingly, I request the
head of each executive department and agency to take immediate
action to:
Insure that the system of accounting and internal
control in his agency meets management needs and
conforms to the principles, standards, and related
requirements prescribed by the Comptroller General.
Work with the 'Civil Service Commission in develop-
ing a more vigorous program for recruiting and
developing the professional personnel to design and
operate effective financial management systems.
Assure that financial reports and cost data provide
adequate support for the planning-programming-
budgeting system.
-- See that the agency's managers are given the basic
tools they need -- responsibility centered cost-based
operating budgets and financial reports -- for setting
and achieving maximum cost reduction goals.
The Budget Director will issue more detailed instructions with
respect to this program. Your full support is needed. I want every
manager -- the general manager and the financial manager alike --
to feel and respond to your personal demands for the use of highest
quality, business-type financial information systems.
.I want every manager to think of his part of the total Government in
terms of 'everything he owns, everything he owes and the full cost
of doing every job in relation to the, products. resulting from these
.costs. .I want him to think of minimal costs and- cost reduction as
Approved For Release 2006/08/09: CIA-RDP79R00967A001000020009-0
 Approved For Release 2006/08/09: CIA-RDP79R00967A001000020009-0
profit. And I want him to think in terms of his profit as a result
of how he uses all the resources entrusted to him. These goals
cannot be fully achieved without sound financial management
practices.
With increased assistance by the central agencies, and a positive
action program on your part, we can readily achieve what is con-
templated in the Budget and Accounting Procedures Act -- the
utilization of the best business practices in the. day-to-day manage-
ment of our Government,
Approved For Release 2006/08/09: CIA-RDP79R00967A001000020009-0
 Approved For Release 2006/08/09: CIA-RDP79R00967A001000020009-0
CENTRAL INTELLIGENCE AGENCY
EXECUTIVE MEMORANDUM
OFFICE OF THE DIRECTOR
EXECUTIVE MEMORANDUM No. 158 -
DATE 27 May 1966
TO: ROOM NO.
Deputy Director (Plans)
Deputy Director (Intelligence)
Deputy Director (Science & Technology)
Deputy Director (Support) Inspector General
General Counsel
/AW9kMt Director for National Estimates _7E48 HQ
Director. PPB
D/ fC?.-NTPE
This memorandum contains information for the addressees. Ad-
dressees may give this memorandum additional circulation within
their components as required. All copies should be destroyed, not
filed, upon completion of circulation. A master file will be kept in
the Executive Director's Office and will be available upon request.
GROUP 1
Eaclud.d , - ouromoNc
downgroding and
Approved For Release 2006/08/ 5 - bT19R00967A001 I -