MEMORANDUM FOR THE HEADS OF DEPARTMENTS AND AGENCIES FROM LYNDON B. JOHNSON

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000100130005-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: December 9, 2002
• Sequence Number: 5
• Publication Date: May 24, 1966
• Content Type: MF

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THE WHITE HOUSE
May 24, 1966
MEMORANDUM FOR THE
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 havea 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-programming-budgeting
system initiated last August, and
enable the Government to apply the best and most
efficient management and operating techniques.
DIA review(s) completed.
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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
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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.
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 Approved For Release 2x03/02/27 : CIA-RDP80B01676R000100130005-4 ( Executive Regiery g
CENTRAL INTELLIGENCE AGENCY
EXECUTIVE MEMORANDUM
OFFICE OF THE DIRECTOR
EXECUTIVE MEMORANDUM No. 158
DATE 2 1966
TO:
Deputy Director (Plans)
Deputy Director (Intelligence)
Deputy Director (Science & Technology)
Deputy Director (Support)
UNW6 let
Inspector General
General Counsel
Director for National Estimates
DLrictor, PPB
O/ExDirf __
Distribution:
ROOM NO.
1 - Ea addressee w/cy of Memo from the President for the
Heads of Departments and Agencies dtd 24 May 1966 re
the development of business-like financial systems
throughout the Federal Government (ER 66-2397)
-t`--ER w/orig of ER 66-2397
1 - ExDir w/cy of ER 66-2397
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.
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ExciudS Irom ouromolic
downprodinp and
(CLASSIFICATION) dsdossifica~ion