DIRECTORATE OF ADMINISTRATION - HISTORY AND FUNCTIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00992R000100030014-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 33
• Document Creation Date: December 12, 2016
• Document Release Date: September 20, 2001
• Sequence Number: 14
• Publication Date: December 1, 1975
• Content Type: PAPER

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Directorate of Administration:
History and Functions
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The purpose of this document is to inform. Portions of the content may prove
redundant for some readers. However, a conscious effort has been made to famil-
iarize the reader with the present role of the Agency and the environment within
which the Directorate for Administration functions. Statistics have been used
sparingly because of their perishability. Where used, the attempt has been made
to provide the most current available, The reader is cautioned that budgetary
proposals are subject to considerable modification before enactment.
This paper is necessarily broad in scope and limited to a description of the
most significant aspects of this Directorate's responsibility. The reader who is
interested in greater detail for further clarification can arrange to have appropriate
briefings by contacting my office.
John F. Blake
Deputy Director
for
Administration
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1. Organization and Role of the Agency
A. Formation and Growth
18 September 1947 is recognized as the birthdate of the Central Intelligence
Agency. The Agency was created by Public Law 253, more commonly referred to
as the National Security Act of 1947. This same Bill established the National
Security Council (NSC) and reorganized the defense elements by creating the
National Defense Establishment, later to be called the Department of Defense
(DOD). Acting under the direction of the NSC, the Agency is to:
1. Advise the NSC on intelligence matters related to national security;
2. Coordinate the foreign intelligence activities of the government's depart-
ments and agencies;
3. Produce and disseminate national intelligence;
4. Perform such services of common concern as the NSC determines shall be
done centrally;
5. Carry out such functions as the NSC may direct.
There were four predecessor organizations to the Central Intelligence
Agency-the Coordinator of Information (COI) established at the outset of
World War II which was quickly superseded by the Office of Strategic Services
(OSS) which lasted throughout the war years. The termination of hostilities
caused the central intelligence apparatus of that era to virtually disappear. Presi-
dent Truman, by Executive Order, dissolved OSS effective 1 October 1945. From
its remnants the Secretary of War formed the Strategic Services Unit (SSU) which
survived until January 1946 when the President, again by fiat, created the Central
Intelligence Group (CIG) which was to be the immediate predecessor to the
Central Intelligence Agency.
All of these organizations, including the CIA at its birth, were dependent
upon other Government agencies (primarily the military departments with some
assistance from State) for money and often personnel. This situation was formally
rectified by passage of Public Law 110 often referred to as the CIA Act of 1949.
This Act provided the Director of Central Intelligence (DCI) with authority to
expend funds, pay travel allowances, employ and compensate personnel, procure
material and services under the provisions of the Armed Services Procurement
Act of 1947, receive and transfer funds between agencies, and procure foreign
funds by exchange or purchase.
At its inception the CIA consisted of less than
The Agency was oriented towards the
collection and processing of foreign intelligence, and its major element, the Office
of Special Operations (OSO), was the operational focus of the organization. After
nearly a year of operation, a new element, the Office of Policy Coordination
(OPC), was formed and placed in the CIA primarily for administrative and house-
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keeping purposes. In fact, OPC policy directives were generated by the NSC and
came down through the joint Subsidiary Plans Division (JSPD) in the Pentagon.
This lack of policy coherence caused major problems for the fledgling organ-
ization which were not put right until the then DCI, General Walter Bedell Smith,
effectively obtained operational control of OPC in 1952.
The addition of OPC to the Agency, coupled with an expansion occasioned
by the Korean War, brought about a dramatic growth in the Agency. By the time
( 1952) the OPC was fully integrated into the CIA, the Agency had expanded to
a complement
The majority o ese resources were evo e to UPC an its operations on e
(:old War front with the paramilitary program accounting for the bulk of these
increases.
Despite having firm control of OPC, General Smith recognized the redun-
dancy of having two virtually autonomous units (OPC and OSO) operating in
the field and the duality of support structures required to accommodate such op-
crations. By memorandum of 1 August 1952, he merged the two components into
the Clandestine Service. The organizational name applied to the new component
was the Directorate for Plans (DDP). Recently, this designation was changed to
the Directorate for Operations (DDO).
B. Organization of CIA
Figure 1 represents the current organization of the Agency. To bring the
various titles into focus the following description of functions is provided:
I. Office of the Director-Consists of the DCI, the Deputy Director of Cen-
tral Intelligence (DDCI) and their immediate staffs. Both the DCI and DDCI
are appointed by the President and confirmed by the Senate. The 1947 directive
is explicit in prohibiting active duty or retired military officers from occupying
hoth the DCI and DDCI positions simultaneously. There is no such prohibition
concerning civilians; however, the practice has been to have one position filled
by a civilian while a military officer of star rank occupied the other. In concept,
the DDCI assists the Director in the day-to-day management and administration
Of the Agency, thus enabling the Director to concentrate his attention to providing
intelligence support to the President and other proper authorities and leadership
of the intelligence community.
Within the immediate office is the Assistant to the Director, the DCI's princi-
pal advisor on Agency relationships with the public. Since the Agency does not
have a public relations office or function, he serves as the focal point for coordina-
tion of Agency contacts with the news media.
i. Executive Secretariat-The Executive Secretariat is charged with the re-
sponsibility for keeping the Director and Deputy Director advised of significant
correspondence and sensitive topics and ensuring that staff action has been com-
pleted on matters assigned to the various Directorates.
3. CIA Management Committee-This is a standing group consisting of the
)CI, DDCI, the four Deputy Directors, the General Counsel, the Inspector Gen-
oral and the Comptroller. The Committee meets periodically to assist the Director
in dealing with management responsibilities for the Agency.
25X
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the
CENTRAL INTELLIGENCE
AGENCY
DIRECTOR OF
CENTRAL
INTELLIGENCE
DEPUTY TO THE
DIRECTOR FOR
THE INTELLIGENCE
COMMUNITY
DEPUTY TO THE
DIRECTOR FOR
NATIONAL
INTELLIGENCE
OFFICERS
INSPECTOR
GENERAL
DEPUTY DIRECTOR
FOR INTELLIGENCE
EXECUTIVE
SECRETARIAT
LEGISLATIVE
COUNSEL
DEPUTY DIRECTOR
FOR SCIENCE &
TECHNOLOGY
CIA
MANAGEMENT
I COMMITTEE I
L___J
COMPTROLLER
DEPUTY DIRECTOR
FOR
ADMINISTRATION
4. Deputy to the Director for National Intelligence Offices (DIDCIINIO)-
This individual has administrative and coordinating authority for the NIO's, each
of whom is appointed by the DCI and is assigned to a geographic area or func-
tional subject as determined by the DCI. Each NIO is responsible for developing
community-coordinated products to satisfy requirements for national estimative
intelligence, for responses to specific NSC requests, and briefings to be delivered
by the DCI. This office, which is tailored to the task force concept, replaces the
Office of National Estimates (ONE) and draws on other agencies within the com-
munity as well as the Agency for its staff complement.
5. Deputy to the Director for the Intelligence Community (D/DCI/IC)-
The IC Staff prepares the Consolidated Intelligence Program Budget which brings
together the annual budget request for foreign intelligence projects (community-
wide); reviews the responsiveness of finished intelligence to consumer needs; and
receives and assesses the collection and processing activities of the intelligence
community. This office is the successor to the National Intelligence Program
Evaluation Staff (NIPE).
GENERAL
COUNSEL
DEPUTY DIRECTOR
FOR OPERATIONS
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6. Independent Offices-There are four independent offices reporting di-
rectly to the DCI. The General Counsel provides legal advice and support to the
T)CT and to other Agency components as required; the Inspector General investi-
gates employee grievances, inspects Agency activities, and supervises audits of
expended funds; the Legislative Counsel is responsible for liaison with the Con-
gress and reviews and coordinates on proposed legislation which affects the CIA;
the Comptroller prepares the annual Agency budget request, conducts perform-
ance evaluation of major components, prepares reports on Agency programs and
utilization of resources, and conducts liaison with the Office of Management and
Midget.
7. The Directorate of Intelligence-The Deputy Director for Intelligence
(DDI) has responsibility within CIA for the production of all finished intelligence
except for that falling into the area of science and technology. The DDI is also
responsible for the collection the
processing, storage and disc e intelligence; an suc crisis
management functions as the CIA Operations Center.
8. Directorate of Science and Technology-The Deputy Director for Science
and Technology (DDS&T) is responsible for research, development, and operation
of advanced collection systems. The Directorate is charged with the collection and
processing of foreign intelligence information in science and technology and for
production of finished scientific and technical intelligence. The DDS&T is per-
sonally responsible as a staff officer to the DCI for coordination of all Agency
research, development, and engineering (RD&E) programs.
9. Directorate of Operations-The Deputy Director for Operations (DDO)
has the responsibility for the collection of foreign intelligence and the conduct
of clandestine operations abroad. These activities fall into three categories-the
collection abroad of foreign positive intelligence (FI) through agent activity and
liaison with foreign intelligence services; the collection abroad of counterintelli-
gence (CI) information and the conduct of Cl operations designed to protect
the US Government from hostile action or penetration by the intelligence services
of other governments: and, the conduct of covert action (CA) operations in
furtherance of official US programs and policies abroad. CA operations, which are
subject to stringent control by policy-makers at the highest levels, are conducted
only in support of approved purposes but are designed to hide the hand of the US
Government to unauthorized persons. Since 1973 the DDO has also been re-
The Directorate carries out its overseas activities from stations and bases
located in most countries of the world. The Chief of Station (COS) is the ranking
CIA officer in his area and is responsible for the activities of the Operations
Directorate and any overseas activities conducted in his area by any of the other
three Directorates.
10. Directorate of Administration-The Deputy Director for Administration
(DDA) provides services of common concern to all Agency components. The Ad-
ministration Directorate is organized to serve the Agency as a whole, but because
of the unique requirements of the Directorate of Operations, a major share of this
Directorate's effort is in support of field activities.
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II. Evolution of the Directorate of Administration
A. The Formative Years: 1947-1955
The period under review has many parallels to the growth of the Agency
discussed in the previous chapter. Initially, supportive elements were small and
decentralized, usually under the direct control of the element being supported.
At the end of 1948, virtually all of these support-type elements were placed under
the CIA Executive, there being no single "directorate" housing these units as we
know it today. The support structure was replete with duplications of effort. At the
insistence of the operations elements, service functions were compartmented so
that one office handled overt matters while another performed covert functions.
In addition, both OSO and OPC retained small service elements (primarily supply
and transportation) as organic units. Those on the operations side felt that the
service elements should be an integral part of the operations component in order
to be responsive. Centralization of the service elements was fiercely contested
and took a number of years to accomplish.
In December 1950, the CIA Executive was redesignated the Deputy Director
for Administration (DDA) and given responsibility for the majority of administra-
tive services. As noted, OPC and OSO still retained some small service elements.
In. addition, such components as training and communications were independent
and reported to the DCI rather than the DDA. Conflicts continued and a year
later, in December of 1951, the DCI (General Smith) announced two decisions
which were to have a lasting impact on the Agency's Administrative Directorate.
In a memorandum, General Smith directed that the DDA be "directly responsible
to the DCI for all administrative support of the Agency." He further directed
that a senior administrative officer from DDA be attached to the DDP (Deputy
Director for Plans, the predecessor to the Operations Directorate) an arrangement
which survives to this day. This individual was tasked with ensuring that the
operations elements received the degree of support necessary to accomplish the
mission assigned. Both OSO and OPC were allowed to retain an administrative
officer, but were to eliminate "further duplication of functions." The forced merger
of OSO and OPC was announced in January and took place in August of 1952.
There were momentous changes, taking place in a relatively compressed time
span. It was also a period of expansion by the Agency in response to the demands
of the Korean War and the perceived requirements of the Cold War.
Whatever faults may be ascribed to the planners and operators of this era,
thinking big was not one of them. For example, guerrilla forces in the hundreds of
thousands were envisioned operating on mainland China-organized, equipped,
and of course controlled by the CIA. Money was available and, in a seemingly
uncontrolled orgy of buying, the Agency's procurement office acquired some one
hundred and fifty-two million dollars worth of foreign arms and ammunition for
use by these mythical guerrilla forces. Of course, none of these large-scale opera-
tions ever came to fruition, but it does provide a measure of the scale of opera-
tions envisioned and the involvement of the various service elements in providing
the wherewithal to support them.
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By 1955, the structure of the Agency had begun to become more settled.
The spate of reorganizations had diminished and an appearance of stability settled
over the organization. In February of that year, the DDA was renamed the
Deputy Directorate for Support (DDS). The Offices of Training and Communi-
cations were placed under the DDS and the DDP Administrative Staff was abol-
ished. The senior administrative officer whom General Smith had decreed be
attached to the DDP Staff was now attached to this staff of the DDS and served
as the bridge between the Support and Plans Directorates. This position, the
Special Support Assistant, has traditionally been occupied by an officer of wide
Agency experience who is a GS-16 or higher.
During these years, the Directorate kept pace with technology. The assign-
ment of the Office of Communications to the Directorate brought into it a major
innovator in the field of communications. It brought into the Directorate a large
body of highly qualified engineers and technicians who were not taken aback by
the thought of technology and, perhaps more importantly, who were interested in
pushing research and development to unusual limits. This force feeding of tech-
nology meant that the Directorate was to some degree prepared for the recom-
mendations of the Land Committee which resulted in the beginnings of the pro-
gram which developed the U-2. From that time forward, the Directorate found
itself increasingly involved with technology, with R&D and with "state-of-the-art"
endeavors. This experience was vital and necessary to prepare the personnel of
the Directorate for functioning in today's modern world with machine operations
measured in nanoseconds, with satellites serving as a major means of communica-
tions, and with computer utilization growing as fast as we can make it grow.
idealizing that generalizations are dangerous, there are nonetheless some per-
tinent observations which can be made about the first six to eight years of the
Agency's service element's existence. Initially it was a period of decentralization
with various operational elements going their own way. There were few rules and
those which were in effect often differed depending upon the element to which
one belonged. The stories of agents being dispatched abroad carrying attache
cases stuffed with money are not entirely apocryphal. As the drive towards cen-
tralization began to gather momentum, the pendulum gradually swung towards
the other extreme-central authority with rigid controls. Rules were codified into
the Agency regulations. Much of this was for the good since for the first time,
the regulations concerning such matters as personnel, logistics, and finance were
standardized and applicable to all employees and activities. This resulted in a
much more disciplined approach to service concerns than had existed in the earlier
days of the Agency. When viewed from the vantage point of those days, the DDA
appeared to have become a rigid bureaucratic mechanism. When contrasted with
the administrative structures of other agencies, however, it was apparent that
such flexibility and freedom of action still remained.
13. The Years of Consolidation: 1955-1965
The rationale behind administrative centralization was to improve the effici-
ency of resource management by eliminating duplicative efforts. How this was
to be accomplished was a task to which the DDA, in cooperation with the other
Directors, addressed himself. Colonel White, the first DDA, was an intelligent,
forceful individual who left a lasting imprint on the Agency's support structure.
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The primary concern was support to the DDP, both at Headquarters and in the
field. The establishment of the SSA has previously been discussed, but more than
this single mechanism was needed. One solution was to assign support personnel
directly to the Headquarters activity or overseas stations requiring such support.
Support teams consisting of personnel, security, logistics, and finance officers
were common.
In addition, various regional activities were established consisting of special-
ists in such fields as finance, medical and security. For example, a pool of security
officers was available to visit bases and stations to assist
with security matters. is ec nique prove ed quick response by a group of in-
dividuals familiar with the peculiarities of a given geographical and political area.
While these officers, whether in the field or in the Headquarters area, remained
careerists in their particular specialty, they were, for the period of their assign-
ment, under the command of the supported element. While not entirely satisfac-
tory to all, this arrangement has worked quite well and survives to this day. These
regional facilities have been extremely sensitive to budgetary judgments and the
numbers have fluctuated in direct proportion to the ready availability of funds.
The Office of Communications and Medical Services have regularly had such
regional activities but the numbers have not remained static. The Office of
Security is today in the process of reestablishing some of its regional facilities.
Whereas the previous era had given the support elements ample exercise in
planning and acquiring bases and the materiel with which to stock them, the ten-
year period under discussion provided the testing ground for the response of the
Directorate and its components in situations of stress. The only previous compa-
rable situation had been the action supporting the overthrow of President Arbenz
of Guatemala in 1954.
The year 1956 was noteworthy for the significant and widely dispersed
political actions which exacerbated Cold War tensions. The sensational Khru-
shchev denouncement of the cult of Stalin took place in February. Later in the
year riots took place against the Communist regimes in Poland and in East
Germany. There were even riots in Soviet Georgia. These last were probably
the direct result of Khrushchev's slander of Georgia's native son but the former
resulted more from repressive political and economic practices followed by Com-
munist governments. In the midst of this, the Berlin tunnel operation was dis-
covered by the Soviets. This discovery resulted in the termination of that highly
successful intelligence operation.
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Events escalated from riots to wars. In Egypt, President Camel Nasser na-
tionalized the Suez Canal. The tensions resulting from this action culminated in a
tripartite invasion of Egypt by France, Great Britain and Israel. This military
intervention was terminated by the actions of the two super-powers, including
some missile rattling by the Soviet Union. Later in October, the Hungarian Re-
bellion took place and the Soviet Union moved swiftly and brutally to crush the
heroic but poorly armed Hungarians. There was some speculation that this ill-
fated, defiant gesture was sparked by the programs of Radio Free Europe which
may have raised the aspirations of the Hungarians for liberty by implicitly sug-
gesting active American support. In any event, the United States did nothing
except protest. After this series of momentous events accompanied, for the most
part, by little action on the part of the United States, the enthusiasm of the war
planners abated. From that point onward, war planning and the bases established
to support anticipated military-type activities were doomed. Eventually, the War
Planning Staff faded into oblivion accompanied by the bases.
C. New Building: 1955-1965
During the years since its inception, the Central Intelligence Agency occupied
a number of buildings in Washington, D.C. The major headquarters element was
located in the complex of temporary buildings along the Reflecting Pool and
running up to the 2430 E Street complex. It became obvious that efficiencies
and morale improvement would accrue if it were possible to get the entire Agency
under one roof. Accordingly, the decision was taken in 1951 to begin planning
for a new building. As a consequence of this decision, the Office of Logistics
began to draw up plans. The RECD/OL planning group was not formally rec-
ognized until 4 August 1955 when it became the Special Project Staff (SPS).
On 26 November 1955 SPS became the Building Planning Staff (BPS) and a
separate staff element of the Office of the Director of Logistics. In addition to
professionals in the building and architectural fields, representatives of various
major components were assigned to the Building Planning Staff in order to
prepare for the unique needs of those components. The basic plan was to create
a building which would provide an excellent environment for people. The current
site at Langley was selected and negotiations with the Bureau of Public Roads
resulted in the extension of the George Washington Parkway from the intersection
of the present Spout Run Parkway out to Langley and then on to Route 495 to
provide means of access to the new location. Work began on the new build-
ing in May 1959. During the period of building, inflation wreaked its toll upon
the ideal plan of getting all of the Agency Headquarters employees under one
roof. It became increasingly apparent that some employees would have to remain
outside. Plans were developed to meet this eventuality. The Office of Security
provided extensive security safeguards to ensure that no security penetrations
of the physical space of the building took place during the construction of the
building. All parts of the Agency and of this Directorate made their input to
the planning of the interior of the building. President Eisenhower laid the corner-
stone for the new building on 3 November 1959. The north half of the building
was the first upon which construction was completed and occupation of that half
began on 19 September 1961. Personnel continued to move in the building as
construction was completed. By 15 May 1962 the building was completely oc-
cupied.
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D. The Years of Challenge: 1966 to date
The years in question have been years which the Directorate has contended
with vigorous and desperate challenges, resulting primarily from this nation's
involvement in Southeast Asia. Although the American interest in Vietnam had
begun during the Kennedy years, the truly massive intervention reached its peak
The selection of the Central Intelligence Agency to perform this large
paramilitary program fell under the National Security Act of 1947. While it
might seem a logical continuation of the quasi-military activities which had
led to the overthrow of Arbenz in Guatemala and the disastrous Bay of Pigs
invasion, in truth it was a quantum jump in scope. The size of the military
involvement was such that it could not be kept secret and the clandestine
tradecraft of the Agency was not only unneeded, it was wasted by the size of the
operation. It was like trying to hide an elephant under a basket. The Geneva
accords reached following the defeat of the French prevented the overt assign-
ment of military personnel to Laos. Consequently, the National Security Council
turned to the Central Intelligence ALyencv as the only mechanism which could
The year 1968 was also the peak for the activities to turn the major CIA
programs in Vietnam over to the U.S. military.
This period of active management of military and semi-military operations
again demonstrated the ability of the Agency and this Directorate to tackle
and perform well a mission not wholly in keeping with its traditions. Although
stretched taut, the Agency and the Directorate were able to continue their
worldwide requirements.
While the operational support rendered during this period was heroic,
other changes, particularly in the management field, were occurring which had
a much greater-and lasting-impact upon the Directorate. Some of these
changes resulted from external pressures in the form of stringent budgetary
and manpower cuts imposed by OMB. Other changes, however, came as a
direct result of the mellowing of the centralization concept so avidly pursued
in the middle years. Management began to realize that it required money,
people and space to make a bureaucracy function and began to question
whether tight controls on materiel, for instance, were cost effective. In many
cases the answers were negative and a general loosening began to take place.
Such changes did not occur without meeting resistance, usually from those
who had established the procedures a dozen years earlier. But gradually the
atmosphere did clear and the pendulum began to swing back towards the
middle ground.
The U.S. involvement in Southeast Asia came to be seen by the American
people as an unnecessary sacrifice of lives in a matter which was not of primary
concern to our national security. This change in the public attitude caused
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President Johnson to reach his decision not to run for a second term. This
change in attitude also brought into being a general wave of demonstrations
and radicalism aimed at ending the involvement of the United States in another
part of the world. At least temporarily, these societal perceptions have resulted
in a different definition of terms such as patriotism, loyalty and duty. These
changes in society have forced the Agency and the Directorate to new ways of
thinking. The traditional stereotypes are no longer effective.
Change has become a way of life. For example, the influence of Equal
Employment Opportunity (EEO), environmental legislation, the energy crisis,
adoption of Management by Objectives (MBO), and continued personnel cuts
have established a new environment for the Directorate. As it completes its
first generation of existence, these influences, coupled with the advent of the
satellite and the computer, have brought the Directorate into a new world.
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A. What Does the DDA Manage?
Figure 2 presents a rather comprehensive glimpse of the Directorate's
functions. In effect, the Deputy Director for Administration (DDA) is responsible
for the management of the human, financial and material resource systems of
the Agency and for the provision of these resources plus certain services of
common concern. Each Directorate and each component, of course, is responsible
for the management of the resources assigned to it to ensure the accomplish-
ment of its prescribed mission. However, the DDA's responsibilities can be
characterized as "cradle to grave" in the sense that this Directorate is involved
with the employee from the moment he or she enters employment until they die
and their annuity is either terminated or transferred to the beneficiary.
the directorate for
ADMINISTRATION
ASSISTANT
FOR
RESOURCES
OFFICE OF
COMMUNICATIONS
OFFICE OF
TRAINING
OFFICE OF
FINANCE
OFFICE OF
SECURITY
OFFICE OF
JOINT COMPUTER
SUPPORT
OFFICE OF
PERSONNEL
ASSISTANT
FOR
INFORMATION
OFFICE OF
LOGISTICS
OFFICE OF
MEDICAL
SERVICES
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B. What is Management?
Management has been defined as the process of employing people and
material in the economical and effective accomplishment of a task. Simply
stated. it is the mechanics of getting the job done. It carries with it responsibility
for planning, organizing, directing, coordinating and controlling the gamut
of available resources and applying these resources in the accomplishment
of a task.
C. What is the DDA Management Philosophy?
Management philosophies abound, but the one adopted by the Agency and
exemplified by the DDA is based on Management by Objectives (MBO). The
efforts of each individual must be thoroughly integrated into the whole in
order to achieve the stated objective. One recent example of this concept in
action is the issuance of a Letter of Instruction to every member of the
Directorate wherein the individual, in consultation with his supervisor, receives
in writing what functions he/she is expected to accomplish and the manner
in which they are to he performed. This letter is a much more personal approach
and the stress is one of participation rather than direction.
Using the MBO principles, each office of the Directorate has established
goals and a time frame for accomplishing these goals. Here again, the partici-
patory aspect is utilized with the goals being established only after extensive
consultations between the DDA and his Office heads.
It is too early to fully assess the results of this management philosophy,
but all indications point toward success. This approach is particularly useful
in identifying functions. Each Office conducted a functional analysis in the
fall of 1973 and this information is now available to the DDA for decision-
making purposes. One example of its usefulness is in the matter of personnel
and budgetary cuts. Heretofore, such cuts have been made on a percentage
or dollar basis, but now for the first time specific functions can be identified
by both manpower and monetary costs. Top management has the option of
eliminating an entire function rather than distributing reductions across the
board with no real appreciation for what affect the reduction will ultimately
have on the efficiency of the organization.
In some instances the division of functions may be limited to a single Office
within the Directorate-the medical function being a good example. In others
though, it will be necessary to cross Office lines, and even Directorate lines,
as is the case with the security function. In this particular instance, if one
accepts counterintelligence as inherently a security function, it should be noted
that the DDO has responsibilities in this field as well as the Directorate's
Office of Security (OS). Also within the field of security, the Office of
Communications (OC) has been assigned specific responsibilities in areas
such as communications and emanations security. This discussion will
he based on major functional areas with little attempt to equate a specific
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function to a specific Office within the Directorate. See Appendix B for organi-
zational charts of the individual Offices accompanied by their specific functions.
The Directorate's Office of Personnel (OP) operates a sophisticated
and successful recruiting program. Each year it receives applications from some
are ultimately placed on
the payroll. As can be expected, prospective employees are subjected to an
intensive screening process which includes physical and mental testing, as well
as a thorough security investigation culminating in a polygraph examination.
For these reasons, numerous applicants do not gain employment with the Agency.
Some do not meet the standards while others find employment elsewhere be-
cause, admittedly, maintenance of these standards requires a processing time
which now averages three to three and a half months. Undoubtedly, some good
prospects are lost because of these procedures, but because of the national
security nature of the Agency's mission, a less thorough approach cannot be
accepted.
These factors also impact negatively in the area of the Equal Employ-
ment Opportunity (EEO) program. In this area the Agency, as well as the
Directorate, are less than satisfactory performers. The latest figures indicate
that blacks comprise 20.4% of the Federal workforce, as contrasted to the
Agency figure of 6.3%. The OP is making every effort to attract qualified
members of minority groups, but it will no doubt be a lengthy process to match
the Government-wide average simply because established standards will not be
relaxed merely to satisfy a "quota." The total percentage of female employees
is adequate (31.6%). Efforts are currently being concentrated upon providing
expanded opportunities for women in terms of advancement and by modifying
the clerical stereotype that has prevailed in the past.
Actual recruitment may occur in a variety of ways. The OP maintains
recruiting offices throughout the country, primarily to seek qualified candidates
from the campus environment. Oddly enough, the "anti-establishment" atmos-
phere which permeated many universities did not materially reduce the numbers
of students evincing an interest in Agency employment. All Directorates levy
requirements on the OP, particularly for professional and technical personnel.
Recently, the DDS&T has been placing heavy demands upon the recruiters to
provide candidates with scientific qualifications. The OP also maintains a
"walk-in" office in Arlington, Virginia, and many inquiries are received through
the mail as a result of newspaper advertisements, campus notices, or just plain
word-of-mouth information.
A vital element of the recruitment program is the provision for an
influx of professional staff employees via the Career Training Program (CT).
Currently 70 positions are reserved for this program which is administered by
the Directorate's Office of Training (OTR). These individuals are given a
varied program of training and, by mutual agreement between the individual
and a given Directorate, placed in that Directorate upon the completion of
their training. The majority of the CT's are assigned to the DDO (approximately
6117c on the average) with the next largest group (usually 33%) going to the
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DDI. The DCI's office and this Directorate receive the remaining 6%. The
1_)DS&T maintains its own program and for the past two years has not received
any graduates from the CT program.
h.Management
ore stress than ever before is being placed on the effective manage-
ment of personnel. On 1 April 1974 the DCI published the recommendations of
it panel chaired by the Director of Personnel. Some of the primary changes
consisted of consolidating the existing twenty-three career services into five
major career services-one for each Directorate plus one in the Executive area;
dissemination of uniform promotion criteria; creation of Directorate-wide coun-
seling programs; standardization of selection criteria for attendance at senior
schools and other external training; policy to facilitate inter-Directorate trans-
fers and rotational tours; establish uniform grievance procedures, and many
more. These new procedures following on the heels of the Letters of Instruction
discussed previously indicate the sincere desire to improve the personnel man-
agement system.
hi addition to the Administration Services Resources Board, each Office
has its own career sub-service board and these are often subdivided into panels
conforming to occupational specialties. It is at this level that the majority of
the recommendations for promotion or rotation are developed. Customarily,
an Office Head can promote (within personnel ceilings) up to grade GS-15.
iromotion to GS-16 and above are recommended to the DDA by the ASRB.
This Board also conducts a post-review of promotions to GS-15 made by the
other Offices in order to become familiar with potential supergrade nominees.
'?'o assist top management, two important programs have been
initiated; the Annual Personnel Plan (APP), and the Personnel Devel-
opment Plan (PDP). These programs originated with the DCI, but
the Directorate is deeply involved in the implementation phase. The APP
is designed to reflect the current and projected status of personnel by category;
i.e., clerical, professional or technical. The OP receives input from the
Directorates and is ultimately responsible for producing the Agency APP. The
,'DP is designed to identify personnel with executive potential while simulta-
neously making plans to fill vacancies in the senior ranks. Key slots are identified
and a number of potential incumbents matched against each slot. Once such
ndividuals have been identified, it then becomes a matter of providing the
proper training and experience to successfully function in the projected slot.
n essence, the PDP is similar in objective to the Civil Service Commission's
CSC) Executive Development Program. Both of these programs are too new
to assess results at this time, but when fully implemented, they should prove
+i) be valuable management tools.
Theoretically, the combination of a stringent selection process coupled
with enlightened management should produce a body of well-adjusted and
highly-productive employees. For the past five years the Agency attrition rate
has hovered between ten and eleven percent (except in FY 1973 when a major
forced reduction raised this to twelve percent).
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Retirements account for a significant proportion of personnel losses.
The Agency operates under two retirement systems, both of which are ad-
ministered by the Directorate. The normal Civil Service Retirement System
(CSRS) accounts for fifty-six percent of all retirements. In 1964 Congress au-
thorized a special retirement system termed the CIA Retirement and Disability
System (CIARDS) and this Act has been amended five times since its passage.
A formula usually referred to as "50-20-10 and 5" sums up the eligibility for
retirement under CIARDS; 50 years of age, 20 years Federal service of which
a minimum of 10 must have been performed with CIA with a minimum of 5
years of Agency service having been "qualifying" years-normally service at
overseas posts. The number of employees who can retire under the CIARDS
is controlled by Congress (3,600 have been authorized through July 1979) and
to date (31 March 1974 a total of 1,584 have retired under this system. A com-
parison of the two systems is indicated in the following chart:
FY 69
70
71
72
73
74
CIARDS ......... 155
140
252
231
541
382
CSRS ........... 165
221
350
344
559
348
The increasing number of retirements in the decade of the seventies
is attributable to a combination of factors-the age of those who entered Fed-
eral service during World War II and continuing pressures to reduce personnel
are paramount. It should be noted that while the Agency generally abides by
the rules and regulations established for all Federal employees, it does impose
a mandatory retirement age of 65.
Resignations and involuntary release, either because of a surplus situa-
tion or misconduct, are the remaining causes of attrition. Involuntary separations
are relatively rare, but it should be kept in mind that the DCI has historically
interpreted sections of the National Security Act of 1947 as giving him sole
authority to "hire and fire" and to date this authority has not been effectively
challenged.
The Agency is a human-oriented organization and one evidence of this
attitude is found in the scope and variety of services available to employees.
(1) Northwest Federal Credit Union (NWFCU)
This is a federally chartered organization which is self-supporting.
It is managed by a board of directors elected by the membership and reim-
burses the Agency for its staffing and other overhead expenses. It is, however,
the responsibility of the DDA through the Director of Personnel to provide
staff supervision and guidance to the Credit Union. The records of 31 January
1975 indicate that the Credit Union had on deposit
$66,003,650. Loans outstanding amounted to 36,428,960 as of that date. There
is nothing unique about having a credit union since most Federal agencies main-
tain them for the benefit of employees, however, there are certain subtleties
employed. Because NWFCU is known as the CIA's Credit Union, employees
under official cover may not cash checks through this facility and proceeds
of loans are made by sterile check to ensure that the cover of these employees
is maintained.
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(2) Life Insurance
't'here is a total of three term life insurance programs open to Agency
employees and they are managed by the OP. One is the standard Federal Em-
ployees Group Life Insurance (FEGLI) available to all Federal employees
which provides coverage in the amount of an employee's annual salary rounded
to the next higher thousand plus $2,000; e.g., an employee earning $10,500 per
annum would have $13,000 worth of insurance in force. An additional $10,000
" optional" plan is also available. Agency employees may join the Worldwide
Assurance for Employees of Public Agencies (WAEPA) which has a $30,000
limit, or the United Benefit Life Insurance Company of Omaha (UBLIC) plan
which has a $36,000 limit.
3) Health Insurance
"There are four health insurance plans available. One of these, the
Association Plan, is designed exclusively for those employees under official cover.
The insurance is placed with Mutual of Omaha, but the identities of the persons
K,re protected from the public record. An identical plan called Government
Employees Health Association (GEHA) is available to overt employees. The
remaining three plans are for overt employees and compare with those found
in other agencies. They include the Indemnity Benefit Plan (AETNA), the
Service Benefit Plan (Blue Cross) and Group Health.
14l Other Insurance
A number of specialized insurance programs are available to em-
ployees including a Dread Disease Plan, Income Replacement, Air Flight Trip,
Military Air Flight Trip, and a Flight and Accident Policy.
#` 5) Employee Activity Association (EAA)
This element provides a wide range of services which include a
`i'icketron facility and a small store in the Headquarters Building. The store
sells, at discount, a variety of goods such as cameras, film, records, stereos,
i.elevisions, watches, and a host of small household applicances. EAA sponsors
a variety of extracurricular sporting events, self-improvement courses ranging
from guitar to karate, an Arts and Crafts Club, and instruction in bridge and
(7hess. One of its most popular events is the annual raffle of a limited number of
Washington Redskin football tickets.
'6) Voluntary Investment Plan (VIP)
In the late sixties, two employees of the Directorate developed an
idea for an investment program which would be available to all employees and
be based on the concept of the investment club which had become popular
in many sectors. Only one other U.S. Government employer, the Tennessee
Valley Authority, had such a program and the Agency's planners relied heavily
on TVA's experience. Since the "plan", as it is usually referred to, is relatively
unique within Government, its availability is not published outside the Agency.
It was approved by the DCI in December 1969 and actually began operating
in May 1971 with a group of mutual funds as its investment base.
It is an internal plan administered by six Agency employees (ap-
>ointed by the DCI as trustees) who have the legal responsibilty for operation
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of the plan and investment of funds. Changes have occurred and investments
shifted from one fund to another, but the premise remains the same-provide
the employee with an opportunity to invest in the economy through a trust.
In effect, the VIP acts as a trust for its members who purchase and hold units
in the trust. Under such circumstances, capital gains taxes are deferred until
the member liquidates his units. Ideally, this would occur upon retirement when
the individual is in a much better position to claim the accrued capital gains.
A member can use his "units" as collateral with NWFCU, can stop his invest-
ment at any time, and of course, "cash-in" his units at the time of departure
from Agency employment (regardless of circumstances). To date, the plan has
some 3,375 members who are currently investing at the rate of $1.6 million per
annum. The value of the fund fluctuates daily in line with the stock market,
but the current value of shares owned by the trust amounts to approximately
six million dollars.
(7) Counseling
A number of counseling services are administered by components
of the Directorate. Regardless of the nature of an employee problem, there is
someone to take it to. All Offices have EEO counselors and most Office Directors
maintain some sort of "open-door" policy for their employees. In fields such as
drug abuse, alcoholism, or other psychiatric areas, the Office of Medical Services
(OMS) provides counseling and assistance. The Office of Security (OS) stands
ready with guidance on writing for publication, public speaking and outside
(Agency) employment. A security duty officer system is manned 24 hours each
day and every employee knows that if there is some problem, whether it be
a missed plane connection while returning from leave or a brush with a law
enforcement agency, a specific extension can be called, the problem identified,
and whatever assistance the circumstances warrant will be provided (the Agency
will not, however, interfere with the due process of civil or criminal law). It
should be stressed that not only is such counseling available, but that it is ren-
dered in a confidential and compassionate manner which enables the employee
to trust the counselor and provides a mechanism whereby many potentially
serious personnel problems can be nipped in the bud.
2. Security
The security functions of the Directorate are many and affect not only
the internal operations of the Agency, but also permeate the intelligence com-
munity. As a result of a series of Executive Orders, National Security Council
Intelligence Directives, and inter-departmental agreements, the Agency, in the
person of the Director of Security, is deeply enmeshed in establishing standards
and providing guidance to the community as a whole. Specific responsibilities
within the community include the provision of uniform compartmented security
policy to national intelligence collection programs; operation of the Inter-Agency
Training Center; and providing leadership and support to the National Computer
Security Program which is designed to protect official data stored in modern
information handling systems.
Within the Agency the underlying principle of security is based on com-
partmentation and the need-to-know. Unlike other agencies where individuals
may be cleared for specific classifications (i.e., Confidential, Secret), all staff
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5. Training
Agency training is regulated by Title 5, U.S. Code, Chapter 14 (formerly
the Government Employees Training Act of 1955). CIA, however, is exempted
by Executive Order 10805 from supervision and control by the Civil Service
Commission and from certain administrative requirements of the Code. It is the
policy of the Agency to follow the general provisions of the Code as fully as
possible, consistent with the Agency's operational and security requirements.
Stated briefly, the basic principle of training management which is applied is
that no training is given internally that can be done outside CIA with comparable
effectiveness, economy, and security.
Thyy lion's share of the training responsibility is vested in the Directorate's
Office of Training (OTR). This Office has the task of developing, coordinating,
and conducting training programs for staff and contract employees of CIA, for
U.S. officials reviewing the
training conducted by other components ot the Agency; an administering
Agency-sponsored training at external facilities. Other components within the
Directorate, namely the OC, conduct major training programs, and each of the
Deputy Directors has certain training responsibilities and programs which satisfy
parochial needs.
a. Language Learning Center
1'ecause the Agency is deeply involved in the collection of foreign
intelligence, a great deal of time, personnel and money is devoted to providing
language skills to its employees. The acquisition of language skills is encouraged
ley the granting of cash awards for designated languages and skill levels. Within
the DDO, proficiency in languages must be commented upon in a professional's
Fitness Report and is a factor weighed by the promotion boards of that Direc-
torate. Certain personnel positions have been designated as Language Positions,
and the incumbents must have or attain the degree of language skill stipulated.
To meet this requirement, OTR offers 22 language courses taught by a comple-
ment of 63 contract employees, the majority of whom teach in their native
tongue. A staff complement of 21 manages, coordinates, and provides support
to the Language Learning Center which spent in FY 1974 $1.3 million to teach
21.7 classes providing 19,326 student days of instruction.
"special requirements for a particular language or dialect which is not
in the curriculum are met by sending the student to an external training facility
or by obtaining tutorial assistance. Of course, if a trend develops and the same
language requirement becomes repetitive, the Center may find it worthwhile
(cost effective) to include it in the regular curriculum. Ten years ago the
e lemand for a knowledge of the Vietnamese language was not appreciable, but
during the past six years it has been a stable language . . . and one which it
can be predicted will ultimately return to its previous status as a special require-
ment rather than regular curriculum language.
1'he Center does more than offer classroom instruction. It also conducts
language proficiency tests, the results of which are input into the Agency's
language Qualifications Register maintained by the OP. (Prospective language
:students are given the Modern Language Aptitude Test by the Psychological
Services Staff/OMS prior to enrollment in a full-time course of instruction to
eliminate those who may obviously be unable to attain the desired proficiency.)
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d. Career Training
The Career Trainee Program began in 1951 and has been one of the
principal means of acquiring highly qualified young professionals, particularly
for the DDO. Until 1958 training was programmed according to the require-
ments of each Career Trainee (CT). In July 1958, an integrated program was
introduced which required all CT's to take the same basic training. In the spring
of 1970 the program was further refined to include interim assignments of
approximately six months for each CT before final placement in an Agency
component. CT's have entered the program from either internal transfers or
external recruiting with the majority entering the program from the college
campus.
Once the CT has begun the program, he remains on the Office of
Training rolls for a period of from 12 to 18 months. During this time the trainee
takes a 4-week basic course followed by an interim assignment and then more
specialized training depending upon the area of specialization the trainee and
his/her advisor feel is best suited to the individual as well as the Agency. At the
end of this combination of study and on-the-job training, the CT is placed in a
career service and is removed from OTR's rolls.
The fact that an individual. enters on duty under the auspices of the
CT program does not automatically guarantee a successful career in the Agency.
The scope of the program has been reduced in recent years (to an average of 50
per annum) as a direct result of the general contraction of the Agency. The CT
program is one of the more expensive of the training programs. Eight staff per-
sonnel are required to manage, counsel, and monitor the progress of individual
trainees.
e. Intelligence Community Training
In 1972 the Directorate inherited from DIA the responsibility of pro-
viding training in information science. The curriculum currently offers three
courses, with a fourth underway, in computer science, operations research, and
systems analysis as they relate to intelligence collection, production, and sup-
port tasks. Originally, DIA was to make available three instructional slots, but
this commitment was later withdrawn. NSA did make available two instructors
and the Agency committed a total of five instructors plus three clericals to
support the program. This program is meant to support the training needs of the
Intelligence Community in these disciplines and it is hoped that other members
of the community will eventually contribute their expertise-and resources-
to ensure its success.
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t'he training enumerated above is among the larger and more costly pro-
grams, but do not represent the total effort by any means. OTR has recently
pioneered a self-study program to assist employees. Most of the subject matter
at this point concerns management topics, but it is hoped to expand the selection
available. An off-campus program has been instituted under the auspices of the
University of Virginia. Agency employees, accredited by the University, teach
these classes for academic credit on Agency property after duty hours with
the costs absorbed by the Agency.
()ne element of OTR, the Intelligence Institute, develops and conducts
courses or the core curriculum which have as their main objective the expanding
of knowledge and perspective of attendees about the Agency, the Intelligence
Community, and the various factors which impact upon the intelligence profes-
sion, These courses include the Senior Seminar for upper level employees, the
Midcareer Course and the Advanced Intelligence Seminar for middle-level
officers, and the Intelligence in World Affairs Course for new Agency profes-
sionals. Area training includes the China Familiarization Course, the Latin
American Area Seminar, and such ad hoc courses as are needed to meet specific
requirements.
At the other end of the spectrum is OTR's Functional Training Divi-
sion which, as the name implies, is responsible for the development and conduct of
skills training programs Subjects covered
include Collection, Intelligence eseare , me igence Pro uction, Communica-
tions Skills (effective briefings, writing and reading), Information Science, Man-
agement, Supervision, Administration, and Clerical skills training programs.
In addition to the OTR and OC training responsibilities, other offices in
the Directorate also provide training. The OMS provides courses in first aid and
life-saving techniques. The Office of Joint Computer Support (OJCS) presents
classes in the mechanical and language techniques pertaining to computers.
One final comment concerning the role of the Training Officer is in
order. Each major component of the Agency has an appointed Training Officer.
Usually these individuals handle training matters in conjunction with a myriad of
other duties. Efforts are underway to upgrade the role of the Training Officer
with the ultimate goal of each major component having one officer whose sole
function is to monitor the training needs of the members of his component.
The medical function is one of the few that is performed in toto by a
single office within the Directorate-the Office of Medical Services (OMS).
This Office predates the formal establishment of the Agency having evolved
directly from the medical element of the SSU. OMS also has the distinction
of having had the same director since its inception in 1947, Dr. John Tietjen.
The basic legal authority for the Agency Medical Program is PL 79-658
which authorizes the establishment of health service programs in Federal
agencies. Basic authority for the extension of the program to overseas locations
came with the CIA Act of 1949. The Agency Medical Program provides medical
support for Agency activities at Headquarters,
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a. Conventional Health Services
A Clinical Division within OMS is responsible for the traditional pre-
ventive medicine effort and includes first aid, health education, health inspections,
occupational health, and certain types of physical examinations such as fitness
for duty and medical disability retirement. For several years a Consultative
Services Program for employees has been operative. In this strictly voluntary
program, an employee may request and receive professional advice and assistance
in personal and family problems.
A new clinical program was initiated in October 1973 whereby employees
who are not seen for physical examinations on any recurrent basis are provided
medical screening tests and a following physical examination when indicated.
This program, called the Multiphasic Testing and Periodic Health Examination
Program, has proved popular and during the first six months of operation screened
a total of 1,075 individuals. A number of abnormalities have been uncovered
such as hypertension, diabetes, and even tumors, none of which were suspected
by the examinees.
The bulk of the physical examinations are performed by the Selection
Processing Division. All applicants for employment receive physical examinations
prior to or upon entrance on duty and must meet Agency standards for
employment. Prior to certain personnel actions such as overseas assignment,
return from overseas assignment, overseas TDY, and special training, the
health of an employee is reviewed and, when indicated, another physical
examination is given. Supergrade employees are given complete physical checkups
on an annual basis. Dependents accompanying employees on overseas assign-
ments are also examined prior to movement and this unit also provides all
immunizations for employees and their dependents prior to movement overseas.
OMS budgets for and coordinates the examination of individuals who, for cover
reasons, cannot be seen on Agency premises. In specialized cases when outside
consultation is deemed necessary, the Agency employs the services of such con-
sultants.
In conjunction with the purely physical examination, all applicants are
evaluated for their emotional stability. Certain assignments, because of their
sensitivity or hazardous nature, require that the nominee be given a psychiatric
evaluation in addition to the routine physical examination. The Psychiatric Staff
provides clinical assistance to employees on request and fulfills the professional
role in Agency activities such as the Alcoholic Rehabilitation Program and the
Drug Abuse Program.
A drug display devised by this Staff won recognition from the AMA at its
convention in 1972. Programs have been started to assist interested groups of
employees who want to lose weight and also those who want to stop smoking.
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computer equipment and personnel in OJCS, it does not preclude other com-
ponents having computers when it is clear that a special operational responsi-
bility warrants separate facilities. The DDS&T has, in its Office of Elint and
at the National Photographic Interpretation Center (NPIC), organic computer
capabilities. This Directorate's OC also has a dedicated computer capability
used for message switching. Indicative of the trend towards centralization is
the increase in both manpower and money in FY 1975. OJCS staff positions
The OJCS Computer Center operates 24 hours per day, seven days a
week. It contains nine large IBM computers with connections to 352 remote
computer terminals allowing users to enter data, retrieve information, write
programs, and process data without leaving their offices. A broad range of
computer applications support the scientific, intelligence, and management op-
erations of the Agency. For example, programs such as mathematical modeling
and simulation, analysis of scientific data for overhead reconnaissance, and analy-
sis of antenna design support scientific endeavors. A number of programs dealing
with topics such as order of battle information, analysis of foreign missile and
space activities, and simulation of air defense systems support the production
of intelligence.
Managers have taken cognizance of the variety of applications ADP offers.
Routine functions such as payroll, stock accounting, personnel and training
records and reports have long been automated. However, in today's atmosphere,
the requirement is for sophistication and quicker response. In line with the
DCI's expanding authorities and responsibilities a program concerning intelli-
gence community resource allocations has been developed to assist the decision
makers. In key areas such as finance and logistics, Data Access Centers (DAC's )
have been (or are being) installed to implement the Management Assistance
Programs (MAP), developed as a joint effort between OJCS and the office of
prime concern.
Another trend, and a logical outgrowth from the policy and technology
which gives users direct access to the computer, is the trend towards storing
more and more data on-line so that it is immediately available to the user. In
recent years, additional systems storage has been effective in a variety of forms-
core memory, random access disks, and magnetic drums. Unfortunately, over
25,000 reels of magnetic tape and 400 disk packs are still used in the systems
and accounted for in the OJCS tape and disk library. OJCS is developing a mass
storage system (termed ORACLE) for storing a trillion bits of data on-line-
two to three times the data stored in the existing tape library. This will become
operational in FY 76.
An evaluation of the workload, by component, was conducted in January
1974. As could be expected, the DDA turned out to be the largest consumer
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of OJCS' services-42%. The next most voracious consumer of these services
is the DDS&T which accounts for 32% of the workload. The remaining 26%
was divided among the DDI (1817c), DCI (7%), and the DDO (1%). With
the acquisition of the DDO functions on 1 July 1974, these percentages changed
and the DDO became a much larger consumer than heretofore.
One of the basic problems in this field is keeping pace with the demand.
Managers throughout the Agency have been encouraged to acquaint themselves
with ADP applications and as their appreciation has grown, so too has the
demand. Coupled with this is the need to replace as many manually performed
functions as possible with the machine as the Agency personnel ceiling continues
to shrink. Outside influences, often unforeseeable, impact on the system. Recently
the requirement to make retroactive payment to employees and ex-employees
for the seven pay periods spanning the period October 1972 to January 1973
translated into additional work. In short, even though the resources are being
increased, it is not at all certain that the capability will match the demand.
The finance function is divided between two elements in the Agency.
The Office of the Comptroller is an autonomous unit reporting directly to the
DCI. The comptroller function in the Agency is similar to that found in any
other Government agency and concerns itself primarily with the budget, liaison
with the OMB, and the allocation of funds to Agency components. This Di-
rectorate's Office of Finance (OF) performs the classic finance functions of
accounting, disbursement, and, because of the unique mission of the Agency,
fn addition to pay and allowances, the payroll unit also maintains leave
balances for each employee. The current machine program has automated this
function and each employee pay slip now includes a running total for both
annual and sick leave showing balance at the start of the leave year, amounts
earned and taken, and balance available as of the end of the pay period. The pay-
roll function then is pretty much a routine matter, one that most people take for
granted, but nevertheless a function of prime importance to the morale of the
A,
gency as a whole.
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Another major statutory function is the operation of the Agency's account-
ing system. This involves the maintenance of official records reflecting the status,
use, and accountability for all funds, property, and other assets
for which the Agency is responsible. Since the Agency is not subject to au it
by other Government entities such as the GAO, the OF (complemented by an
independent Audit Staff which reports to the DCI through the Inspector General)
must be extremely careful to ensure that all financial transactions are conducted
in a legal-and ethical-fashion.
To assist the operating components, professionals from the Finance career
service are assigned on a rotational basis as Budget and Fiscal Officers or as
Certifying Officers. Major field stations are also provided with Finance Officers
to ensure that support in this area is efficient, effective, and in consonance
with the applicable financial procedures.
The OF and OL have developed a set of procedures for property account-
ability (FPA) which differs from that found in other Government agencies.
The audit function alluded to briefly in the foregoing paragraph is another
split function. While the Audit Staff conducts annual audits of field stations
and operating components, the OF is responsible for auditing the industrial and
commercial contracts and is also responsible for prepayment audits of all claims
and invoices. In the category of industrial contracts, the OF provides contracting
officers and procurement personnel with financial information to enable them to
achieve the maximum in services and materials at a minimum cost. End products
are comprised principally of Survey Reports and Proposal Analysis Reports
utilized by the contracting officer and by the Certifying Officer in final settle-
ment of contracts. If the need arises, commercial auditors will be employed.
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in, the section on Personnel, the Agency retirement system (CIARDS)
was mentioned. Under terms of the enabling legislation, the DCI is charged
with the administration of the system. Authority has been delegated to the OF
to maintain financial records and compute and pay amounts due the annuitants
and survivors. A concomitant responsibility is the management of the CIARDS
investment portfolio. The workload involved in the function is a steadily in-
creasing one because the number of retirees under this program continues to
grow.
9. Staff Functions
The Staff of the DDA has recently been reorganized to add two Assistants,
one for Resources and the other for Information. In addition to these two
Assistants, there is a Special Assistant to the DDA for DDO matters and an
Executive Officer. There are also five staffs; Historical Staff, the Information
Systems Analysis Staff, the Information Review Staff, the Career Management
Staff, and the Planning Staff.
a. Executive Officer
The Executive Officer performs the vital function of managing the flow
of paper which concerns the Office of the DDA, assigning action requirements
upon staff elements or the offices of the Directorate, establishing suspense dates
and monitoring those dates and serving as a general aide-de-camp to the DDA
and the ADDA.
h. SSA/DDA
This is a small staff consisting of two officers and two secretaries
which serves as the bridge between the DDA and the DDO. The staff was
cstablished in the early 1950's as noted earlier in discussion of the relationships
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between the DDO and the DDA. It serves to keep the DDA advised of those
DDO operational problems which impact upon the DDA and likewise to ensure
that the quality of support from the DDA elements to the DDO remains at a high
level.
c. Assistant for Information
This is a newly created position which has general oversight respon-
sibility for all of the information elements of the DDA staff: the Information
Systems Analysis Staff, the Information Review Staff, and the History Staff.
This position serves as the overall Agency focal point for matters affecting the
Agency under the amended Freedom of Information Act of 1974 and the
Privacy Act of 1974. As such, the position is responsible for the development
of Agency policy with regard to public release of Agency information.
d. Assistant for Resources
This position, likewise a newly created one, is responsible for the
formulation of recommendations to the DCI relative to Directorate policy on its
utilization of resources. In addition to the normally considered resources available
to the Directorate of manpower and money, the position also serves as the ADP
Data Base Manager for the Directorate.
e. CIA History Staff
f
This element has existed in various modes during the past few years.
It was primarily responsible to the DCI, but in 1973 it was determined that the
DCI's span of control was stretched too far and thus responsibility for this staff
was transferred to the Directorate. It: is a small staff (scheduled to be reduced
from 7 slots in FY 1975 to 2 slots in FY 1976) with a big job. For a number of
years the various components concentrated on producing component histories
and narratives of special projects. The problem was both a lack of centralized
control and the establishment of a firm list of objectives. This problem has been
rectified in the past year. Decisions have been made to allow the component
histories to languish. The Agency Management Committee has received and
approved a list of topics about which histories will be completed. This list
includes 17 subjects ranging from operational histories of projects -
The Staff, of course, lacks the personnel, and in some instances the
expertise, to actually write all the histories. Money has been budgeted to pay
for consultants, usually retired Agency employees with an intimate knowledge
of the subject matter. Security considerations place certain limitations on the
hiring of consultants from outside the Agency "family." A major problem facing
the Staff (which will be shared by the IRS) is in the area of declassification. In
today's environment there appears to be an almost paranoic demand that the
Government "tell all." It is also true that the Agency has had some impact on
the conduct of foreign affairs and no recitation of the U.S. Government's activities
in the foreign field could be considered complete without a knowledge of what
contributions were made by the CIA. Publication of the "Pentagon Papers" gave
the public the first real appreciation of the role played by the Agency at the
national policy-making level and subsequent revelations seemed to have whetted
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appetites for more. It is anticipated, therefore, that some of these histories, or
portions thereof, will ultimately see the light of day.
f. Information Systems Analysis Staff (ISAS)
This Staff is a relatively large one consisting of
personnel. It is responsible for the development and execution o an gency-
wide plan dealing with all aspects of information management other than that
information which is processed through ADP. Included in the areas of concern
of this Staff are copiers and duplicators, word processing centers, filing equip-
ment and filing systems, micrographics, the operation of the Agency's Records
(.enter and Archives, and the provision of the Directorate Records Management
Officer.
Aside from the mechanical filing and storage function, ISAS also is
the repository of expertise in the area of records management. Many aspects of
this function are statutory in nature. The personnel in this field review existing
procedures and systems and, where appropriate, recommend improved methods
and equipment relating to the management of forms, correspondence, file systems,
records control, vital records, filing and storage equipment and copier and word
processing equipment. All requests for the purchase or rental of copy machines
must he approved by ISAS and the staff also conducts a vigorous program
designed to reduce the number of forms in use throughout the Agency. Any
request to produce a new form is therefore closely scrutinized before it is
accepted into the system. The proliferation of copy machines has likewise caused
concern. The rental costs (currently running $2 million a year)-the paper
consumption-are becoming critical factors. ISAS has begun a pilot program
to establish machine rooms. If successful, machines will be withdrawn from
individual offices and consolidated into such rooms. While the program would
result in some inconvenience, it could also reduce the number of machines
needed to accomplish the reproduction task.
In conjunction with the records management program, the Staff also
functions as the Agency's micrographics expert. Four staff and one consultant
provide expertise to this body and their endeavors are concentrated on eval-
uating proposed micrographic applications, coordinating micrographic programs
on an Agency-wide basis, and approving requests for procurement of equipment.
A major aspect of this function is to publicize the benefits that can accrue to
users of a sound micrographics program and to then render assistance in estab-
lishing programs for individual offices. In this manner it is anticipated that a
savings in file space and a corresponding increase in efficiency will result.
g. Plans Staff
the Plans Staff provides staff guidance on the preparation of plans,
programs, and budgets. Basically, the staff prepares the Directorate Programs
and Budgets and coordinates these with the Office of the Comptroller. Plans
Staff monitors the execution of all Directorate Programs and Budgets and is
responsible for recommending the allocation or reallocation of resources within
the Directorate. The Chief of the Plans Staff has been designated as the Direc-
torate's MBO Officer and as such coordinates the many objectives meetings
and acts as the catalyst for the MBO program.
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