FINANCIAL GUIDANCE FOR FY 1979 (Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00156R001000080026-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 15, 2016
• Document Release Date: December 2, 2003
• Sequence Number: 26
• Publication Date: October 25, 1978
• Content Type: MF

IV
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2 5 OCT 1978
MEMORANDUM FOR: Deputy Director for Administration
FROM : Deputy Director of Central Intelligence
SUBJECT : Financial Guidance for FY 1979 0
1. 0 The Congress continues to intensify its review of the Agency's
program and budget. It has made very specific adjustments in the Agency's
FY 1979 Budget request and in addition has provided. guidance on certain
activities and programs which we are required to follow. We need to
take action to ensure compliance with Congressional. directives. It
is with the recognition of this increased Congressional attention that
the financial guidance and the changes in procedures for controlling
the Agency's resources and for monitoring execution of the Agency's
budget are provided.
2. The am ram levels for the Administration Directorate are
positions. This level reflects final Congressional
action on the Agency's FY 1979 Budget request. Specifically, it reflects
the following adjustments in the DDA FY 1979 Congressional Budget request:
a. A net decrease of I Ipositions associated
with the ICS reprogramming to augment the CTS and RMS,
a reduction of 40 positions directed by the Congress,
2 positions reprogrammed to the O/DCI, and 1 position
transferred from the DDS&T to the Office of Comunications).
A reduction of $2,100,000 directed by the Congress as
a reduction in General Support costs.
c. A reduction of $185,000 as the DDA (i.e., Office of
Communications) share of a Congressionally-directed
reduction
d. A reduction of $500,000 in internal training. This
exclusive of FY 1979 Pay Act costs.
e. A reduction of $49,000 as the DDA share of the Congres-
sionally-directed reduction in external training.
The aggregate of all funds included in the DDA components'
operating amounts for FY 1979 for external training
(Subobject Class 2515) may not exceed
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has the effect of establishing a control on funds
for the Office of Training. The FY 1979 operating
amount for the Office of Training may not exceed
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f. A reduction of $100,000 as the DDA share of Congres-
sionally-directed reduction in travel. The aggregate
of all funds included in the DDA components' operating
25X1
addition, within this total, there
is afu ~
Subobj Q.t,Qla?ses 2138 ark 213 ALT his will be the
subject of later, uidance tobe -, did yith Comptroller.
g. An increase of $507,000 resulting from the transfer of the
COMSEC RD&E function to Office of Communications from the
Science and Technology Directorate.
h. FY 1979 Pay Act costs of
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25X1 3. 0 Within the operating amount, I is provided for
the costs of personal services (Object Classes 11, 12, and 13). You
may allocate these monies to components as required and reprogram between
components but may not convert them to non-personal services object
classes without the Comptroller's prior approval. Funds to cover the
October 1978 Pay Act are a part of the operating amount specified and
should be included in your operating amount in the Financial Resources
System (FRS), but Pay Act funds will not be allotted until the Congress
has acted on the supplemental Pay Act appropriation and OMB has apportioned
the funds.
25X1 4. 0 Effec 've with 1979, all Career Trainees will be employed
in wl...
initially a temPora e e' WE -`"t1 e"Cff ce of Tra ing
fund all non-personal services costs associated with the Career Training
Program, the sponso.q,, directorate (i.e., the directorate to which
the Career. Trainee will be assigned following comp. p. 'Qn, afJtzahffig)
will
eut a7~] s .A. as costs' salary and benefit s,.
Accordingly, you should designate a unique project number (FAN) for the
administration of Career Trainee costs and ensure that sufficient
funds are allocated to this project number to meet your Career Trainee
requirements for 1979. You should advise the Comptroller and the
Director of Training of the project number established for this purpose.
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5. 0 The FRS operating budget data base now contains FY 1979
data as shown in the FY 1979 column of the FY 1980 Budget Estimates
submission. The existing FRS=operating budget data should be adjusted
to conform with the program levels (funds and positions) authorized
in this memorandum. As in the past, you are expected to keep records
and controls over your resources by major component and to continue
to provide project number (FAN) and subobject class data to the FRS
to facilitate review and monitoring of the way resources are being
used.
6. 0 In FY 1979 we made substantial progress in further
improving the management of our limited resources, but much remains to
be done to reduce the uncertainties associated with providing funds
amount for FY 1979 in Object Class 21 may not exceed
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during the closing months of the fiscal year to meet essential unbudgeted
requirements. It is imperative that you continue to exercise candor
in identifying surplus funds and to'identify early in the year those
reprogramming needs which exceed authorization thresholds. Many important
and essential activities were kept on schedule during FY 1978 by the
forthright and professional way in which managers responded to solve
our many and varied resource needs. I encourage your ideas and
suggestions for ways to improve our utilization of the FRS to provide
better management information.
25X1 7. 0 Reprogramming is subject to rules and guidelines prescribed
by the Congress. Approval of the DCI is required before Congress is
notified or asked to approve any reprogramming action. Congressional.
notification and/or approval may be required where reprogramming involves:
any activity which is politically sensitive or which could
potentially be embarrasing to the US;
-- any activity that has been specifically reduced or
stricken from the program by Congressional action
(items noted in paragraph 2);
- any proposed significant activity not specifically
authorized by Congress;
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personal services costs;
or more in procurement or
-- an increase in any R&D program of
or more;
-- any below-threshold action involving a new program that
will result in significant follow-on costs; and
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- any item designated of special Congressional interest.
8. 0 The need to ensure adherence to Congressional guidelines
as well as the austerity of our program makes it necessary for us
to pay particular attention to reprogramming actions. Accordingly,
proposals to reprogram non-personal services funds in amounts of $100,000
.or more between major object classes or project numbers (FANs), or in
any amount for actions requiring approval or notification of the Congress,
must be submitted to the Comptroller for review. The Comptroller will
approve, in consultation with the DDCI as appropriate, those reprogramming
requests which do not require Congressional notification or approval
and will arrange for submission to the DCI and Congress of those that
do.
25X1 9. 0 As in the past, the Comptroller will meet as necessary
with the deputy directors to review the status of the Agency's financial
and manpower situation. At the Comptroller meetings, actions will
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be taken to correct imbalances in needs and resources. In preparation
for scheduled Comptroller meetings, the directorate will provide the
Comptroller with a report within five working days after trend reports
are ijssu The report shall contain: (1) nor.-persona services commitments
ject class and purpose, (2) personal services requirements
to year-end by object class, (3) funds available for reprogramming,
(4) obligations and unobligated commitments on items of special interest
as identified by the Comptroller, and (5) unfunded requirements.
25X1 10. 0 Commitments include only those items on which formal
action has been initiated to incur obligations, but because of administrative/
procurement/contract processing and/or other delays, the obligations have
not been recorded in the FRS. Unfunded requirements should be prioritized
and listed by categories as ". and " "High jgjty," and "Other." -"Hard"
requirements are those for which CIA has no option but to pro ide
the needed funds in the current year. Other requirements will be
classified either "High Priority" or "Other" depending on the urgency
and importance of the need. "High Priority" unfunded requirements
are those that are not mandatory but are so vital to Agency operations
as to cause serious damage if not funded in the current year. The
bulk of unfunded requirements would be designated "Other."
11. 0 After 31 July 1979, conversions of funds to Property
Requisitioning Authority (PRA) or PRA to funds will be allowed only
when fully justified in writing and the deputy director concerned
has certified the need.
12. 0 You are requested to furnish copies of this memorandum
to subordinate components as necessary to ensure understanding and
compliance.
Frank C. Car cci
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