LETTER TO THE PRESIDENT FROM W. F. RABORN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000500010011-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 15, 2016
• Document Release Date: July 31, 2003
• Sequence Number: 11
• Publication Date: June 1, 1965
• Content Type: LETTER

NSC REVIEW
COMPLETED
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The
The House
Wasbtnt,zh DC.
President:
1. JUN 1965
_
1 Execive Registry
This letter is in /*aperitifs to a *quest from your Special Assistant,
. Horace Bushy, for information on Agency actions which will assure
compliance vytth your memorandum of May 111, 1965, on une buying''.
As you may knew, the uxtapent portion of this Agency'sannual funds
lapses into a contingency reserve, rather than being returned to the
Treasury. and historically this residual amount at end year has averaged
In 1964, for example, about
waa transferred into the reserve. This practice not only assists
in Maintaining an adequate sum to cover those contingencies which more
overt agencies fund through supplemental appropriations, but building up
the reserve tsa this way also reduces the contingency ivicrerneast we must
ask for in new oblitiational authority. Again by way of illustration, the
Agency's 1966 appropriation retvest included only the relatively small
sure of In new monies for the reserve. The current outlook
is that this year there will again be a sum te transfer into the reserve,
although the heavy involvement of this agency in Southeast Asia, and
recent emergency actions attendant to the Dominican Republic crisis,
may refsult iu less-thari-normal carry-over.
I believe that the foregoing description of this Agency's unique
situation with respect to "underspending" is essential to an understandin
of our policy toward "June buying". In thi* ease, the pressures for
wholesale and often hasty -- obligations during the closing weeks of
the fiscal year are alleviated by the knowledge that the funds will *et be
"lost", but will be available in the contingency reserve to meet properly
justified requirements, with actual release subject to the approval of
the bureau of the budget.
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Despite this provision for end year -ova the et has been in
this Agency a. history of a modest tncreatre n rate of obligations in the
closing period of the year. I believe that this Increased outlay of funds
has been closely monitored, but this year, in view of your high personal
interest, my senior officers were instructed to exercise even further
vigilance than in the past. Li addition, there has recently been an op-
portunity to brief the new Director of the budget on this Agency's control
systems for regulating obligations, and we were able to demonstrate real
progress in obligating against requirements on a straight-line basis across
the year - with particular success evident in the field of ititD contracti14.
While there is still room for improvement, this spreading of the woreload
has unquestionably resulted in better contracts sad more effective utilization
of manpower.
I can assure you that 'we shall continue to make every effort in the
Central Intelligence Agency to prevent unju
purchasing.
25X1 0/BPAkil Igmb true 65)
Distribution:
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Addressee
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BPAM Reading 1,4_,X.G.62(7
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ed and uneconomical
rely,
/-3-/
W. F. istaboru
Director
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THE WHITE HOUSE
WASH IN GTON
May 20, 1965
FOR The Cabinet
Heads of Agencies
FROM : Horace Busby
Special Assistant
to the President
In regard to the attached, it is
requested that a report be submitted
to the President by une 1 on actions
taken within your Jiepartment or
Agency to assure compliance with the
President's Memorandum on
"June Buying. "
Your cooperation is appreciated.
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Nny
THE WHITE HOUSE
Washington
May 18, 1965
MEMORANDUM FOR THE CABINET
AND HEADS OF AGENCIES
Subject: June Buying
Executive Registry
I am grateful for your coop4ration, assistance and leadership in our
determined and increasingly successful efforts to eliminate waste from
our Federal programs, and to translate the experience, enterprise and
initiative of Federal employees into effective savings for the taxpayers.
In accomplishing what has thus far been achieved, many, old and ill-
considered habits have been responsibly re-examined and successfully
challenged to the constructive benefit of more efficient management and
operation throughout the Executive Branch. In this context, I want to
raise with you the matter of end-of-year spending, commonly referred
to as "June Buying."
When an agency speeds up spending in the last few weeks of the Fiscal
Year, in the absence of clear and compelling reasons, the practice looks
like an iffeiii-pt to use up funds which otherwise would lapse. We cannot
expect our employees to believe that cost reduction efforts are serious if
they see evidence of opportunistic spending in the last days of the Fiscal
Year. I see nothing at all wrong in returning unused appropriation
balances to the Treasury. Last year, we turned back $805 million when
the Fiscal Year ended and I hope that this practice may be the rule, rather
than the exception.
I do not want "June Buying" to become a way of circumventing our cost
reduction efforts. "June Buying" may be an ancient practice -- but that
does not justify it or excuse it. Accordingly, I hope that each of you will
personally take whatever steps are necessary to insure that in your
Department or agency --
-- Orders for supplies, materials, and equipment are kept to
the minimum needed to carry on essential, approved programs.
Inventories are held to normal levels.
-- New contracts for future services and advance payments to
contractors and vendors are made only in accordance with
established plans.
I regard each. Department and Agency Head as responsible for maintaining
a close personal watch .to prevent unjustified or uneconomical purchasing at the
end of the Fiscal Year -- and I am sure that you will cooperate to.tfiei tuliest.
L don B Johnson
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