FINANCIAL GUIDANCE FOR 1975 AND 1976

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00963R000100120003-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 14, 2016
• Document Release Date: October 2, 2002
• Sequence Number: 3
• Publication Date: August 23, 1974
• Content Type: MF

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23AUG1974
MEMORANDUM FOR: Deputy Director for Administration
SUBJECT: Financial Guidance for 1975 and 1976
1. This memorandum constitutes my guidance to you on the 1975 and
1976 programs of your Directorate . You are reminded that we do not yet
have our appropriation for FY 1975. You should proceed with the imple-
mentation of your program with that caution in mind. In addition, because
of the severe resource constraints we anticipate for 1976, even assuming
no further reductions by OMB or the Congress, I am asking that you
undertake certain detailed reviews to explore opportunities for possible
further savings. The guidance and issues are based upon the data you
submitted to the Comptroller in response to the Program Call, the Program
Review book prepared by the Comptroller, and the discussion with you
in the Management Committee on 2 August 1974.
2. The program level for your Directorate is:
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FY 1975
FY 1976
For 1975 you will receive one allotment for all the programs of your
Directorate reflecting the above totals . Since the Comptroller will no
longer retain detailed allotment records at the component level, I will
hold you responsible for creating similar controls at the component
level to ensure that Directorate totals are not exceeded. Thus, I will
expect you to keep your records and controls over your resources
by major component as in the past, and to continue to provide project
(FAN) and subobject class data to the Automated Budget Control (ABC)
System for monthly verification of the way the resources are being used .
Your first input to the ABC system should reflect initial program approvals;
no reprogramming will be allowed until this data base is established.
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3. Within the 1975 amount allotted above, is provided
for personal services costs of permanent staff and contract employment (sub-
object classes 1101 and 1145) . For temporary and part-time employment,
180 A.E. is suggested and you should compute your own dollar amounts
for subobject class 1148. You are free to allocate these monies to com-
ponents as required and to reprogram between components as needed,
subsequent to the initial input to the budget control system, but not to
convert them to nonpersonal services object classes without the Comp-
troller's prior agreement. This step is being taken to help ensure our
ability to meet a possible congressional reduction in our pending 1975
request as well as other problems or opportunities which may develop .
4. During the course of the Program Review, I approved certain key
programs for 1975 representing major investments or activities in which I
have a personal interest. Because of the importance of these projects, I
expect them to be carried forward at the levels I have approved . For your
Directorate, the specific activities are as follows:
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during FY 1975 at a funding level of
b . Secure Voice (Staff) to continue on a maintenance basis only
c. Communications Area Facilities, funded for FY 1975 at
A detailed list of specific projects scheduled to
be funded within this total should be submitted to the Office of
the Comptroller by 6 September 1974.
d. Office of Logistics Engineering Support, funded for FY 1975
at for Utilities Monitoring, a
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25X1 A P . L . 92-313 reimbursement to GSA) . A list of the specific projects
planned for the current year to be funded within this total should
be submitted to the Office of the Comptroller by 6 September 1974.
e. Merged Computer Operations, funded at for 25X1A
FY 1975 (with funds transferred from Operations Directorate) .
f . Computer Assisted Field Terminals (CAFT) .
development of this program at a funded level of
in FY 1975.
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g . Office of Communications funded
within your current FY 1975 allocation at thousand . Any
additional costs will be requested from the Reserve to meet the
25X1 C total FY 1975 factored Orequirements .
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h. COMIREX contractual studies, for which as 25X1
transferred from the Intelligence Directorate budget to OJCS, which
will have supervision over the contract. In transferring these funds
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(and in putting an additional I ~ in the OJCS program for 25X1 A
1976) I was seeking the economies of centralized management of ADP.
However, I request that you ask OJCS to set up, with OJCS as
chairman, a steering group composed of COMIREX, OD&E and the
IC Staff to assist OJCS in achieving the general community objectives
of the COMIREX program .
If for any reason you deem it necessary to change these levels by more
than 10 a, I will expect you to prepare a recommendation for the Comptroller
who will usually seek my review. While I recognize that approved
programs cannot always be carried out as originally planned, it is
:important that I be informed when changes occur and have the opportunity
to review and consider the factors causing the changes to determine
whether the funds approved earlier, or affected by the change, might
be used better elsewhere. To facilitate continuing management review,
the activities identified above must be specifically reflected by subobject
class or in FAN (or combinations of FAN) accounts and you should work
with the Office of the Comptroller to ensure that this request is met.
5. You will be expected to raise, for separate decision, any repro-
gramming which was not explicitly reviewed during the Program Conference
and which would commit you or the Agency to an obligation of more than
during the following five years.
6. There is one additional requirement upon which I must insist . The
Program Execution Procedure set forth a requirement for notifying me,
under certain conditions, before action is taken on activities approved
during the Program Review. These involve:
a. Politically sensitive projects, carrying a significant risk of
causing embarrassment to the U . S . Government in general or to
the Agency in particular . Approval by the National Security Council
of politically sensitive activities will fulfill this requirement .
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b. Major contractual agreements undertaken on behalf of and
funded by other agencies.
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c . Real property transactions which have the potential for
raising security, political or operational difficulties.
d. Other individual transactions involving more than
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Although it will rarely be necessary to change a plan at the last minute,
it is imperative that I be informed through the Comptroller before you
take action on any of the kinds of projects described above so that they
can be evaluated in relation to the then current status of the environment
and the Agency's overall resource situation .
7. All matters covered above should normally be sent in one copy
only to the attention of the Comptroller who will forward them to me
when he believes they require my specific approval. In cases where he
believes it unnecessary to inform me personally, he will so notify you.
Periodically he will inform me of those items where he has determined
my direct involvement was not required.
8. In paragraph one I noted the need to continue seeking oppor-
tunities to effect further savings in funds and positions . You will
have your own ideas about how you might approach this problem but
there are a number of areas where I believe attention will prove
rewarding . You are requested to consider and submit recommendations
by the dates indicated:
a. Examining comprehensively the personnel and career
management practices throughout the Agency and the resources
devoted to them. Your examination should take into account the
differing career management needs of the Directorates and should
identify areas where differences serve no useful purpose. The
objective should be to provide the most effective career manage-
ment system for the Agency with reduced resources in FY 1976.
28 February 1975
b . Developing and instituting amulti-faceted program to
reduce the cost of day-to-day Agency operations in areas most
seriously affected by inflation . Managers and individual
employees must be made aware of ways in which they can effect
savings through frugal use of materiel resources . 31 October 1974
c. Accelerating the development of methods to identify the
costs of services furnished to Agency components; and expanding
that effort to include a systematic study of all areas of activity
where modification of the way we budget for goods and services
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might focus managerial responsibility more sharply on the alloca-
tion of resources . Such a study should bear in mind the cost/
benefit tradeoffs, and should stop short of developing systems
which- would cost more to administer than their implementation
might save. 31 December 1974
d. Stud in in coordination with the IC Staff, ways in
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parts of the Intelligence Community in the long term. Pro-
posals should include alternative ways in which the cost of
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Action to implement such a program probably should be deferred
until we have some experience with the current arrangement,
but proposals should be ready for inclusion in the FY 1978
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f. Investigating the economies which might be realized by
g . Studying ways in which the cost of providing communica-
tions services might be charged to individual customers within
the Agency as well as other departments and agencies . 1 March 1975
9. The other Deputies have been asked to undertake studies in their
own areas of responsibility. Some of them will be of interest to you and
some will require your cooperation and assistance:
(1)
to consider, with DDS&T, the merging of
OEL, and relevant parts of OTS into
a single organization supporting SIGINT collection;
(2) to define the minimum necessary overseas
structure; identifying for each country the irreducible
minimum level of resources required to sustain the
essential operations at each station and base including
communication and all other support costs; and
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(3) to establish a language training complement
and suggest an appropriate size and how it should
operate .
b. The DDS&T has been asked to conduct a study of technical
support to agents, including communications support to determine
whether and to what degree such support should be made the
responsibility of one component. The types of support required,
the costs of this support in manpower and in equipment, and
current practices in decentralized funding should be examined.
This study will involve, at a minimum, OT~, OD&E, OC,
and OEL .
c . The Comptroller will direct a study of the resources
devoted to our accounting, certification, and budget functions
throughout the Agency . He will examine the whole process
of resource control in terms of structure, timing, information
requirements, use of computer time, and relevance to manage-
ment needs at various levels .
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