COMPTROLLER MEETING - 27 JUNE 1978 (U)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00261R000300030006-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 9, 2016
• Document Release Date: September 6, 2000
• Sequence Number: 6
• Publication Date: June 29, 1978
• Content Type: MFR

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MEMORANDUM FOR THE RECORD
SUBJECT: Comptroller Meeting - 27 June 1978 (U)
^1.(U) The Comptroller met with the Deputy Directors at 4.00 p.m.
2.(U) Mr. Yale reported on the Status of Advances from Other Government
Agencies and Other Governments through two-thirds of the year, noting no
significant abnormalities.
3. (S) Delivery of 40 KY-70 Secure Voice Terminals ordered late last
year will begin about this time next year. The Dir-qctpr of Cpinmunic ions
Will be in touch with the Directorates to validate requirements _and establish
the priority attached to each for use in determining how the terminals
should be allocated on delivery.
4.(S) Funding actions taken during the first six months of 1978 were
reviewed. About 45 requirements were funded totalling about $6.4M
using funds available from advance funding actions taken late in 1977,
personal services surpluses in the Operations Directorate in 1978, and some
surpluses in the Office of Communications.
5.(C) Through two-thirds of the year the Agency program overall is
obligated or committed at almost exactly the two-thirds rate. Personal
services are obligated at slightly less than two-thirds and non-personal
services at slightly more.
6. (S) On-du ..strength of the Agency continues to decline, with
on duty as of 17 June 1978, 128 `below the 1978 ceilincx '-- The Office
of Personnel projects that Agency strength by the end of September will.
have dropped to about about 100 below the positions requested in_
thQ:F1979 Congressional Budget. Even if the worst case were realized, and
90 po 1tions were cut as proposed by Congressional committees without any
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offset for the increase of 15 positions, directed by the Senate Select
Committee to be added to CI Staff, the on-duty strength projected by the
Office of Personnel would still be below the 1979 authorization. Directorate
projections of year-end strength are considerably more optimistic than
those of the Office of Personnel, but there is some doubt that the
Directorates can meet their objectives. There was some discussion of
actions that might. be taken to ensure that 1978 year-end strength does
not drop below the 1979 ceiling. Mr. Malanick reported that he has
directed the Offices of Medical Services, Security, and Personnel to
expedite applicant processing.. Directorates were encouraged to accelerate
recruitment efforts to bring as many people as possible into the Agency
against 1979 requirements. The roblpm will be reviewed again next month,
which time some specific proposals for actions to be taken-Will-be
7.(S) Personal services savings through the end of the year are
estimated to be about $2.8M, assuring appropriation of the full amount
requested for the Pay Act. Congress rarely appropriates the full amount
requested, however, and we might have to absorb as much as 10 percent.
Until the Pay Act appropriation is settled, personal services savings are
not available for reprogramming.
8.(S) The status of some selected major activities was reviewed by
group chiefs with explanations offered for lagging or advanced obligation
and commitment rates. Mr . presented a detailed analysis of the
status of Project SAFE fu S.
9.(S) Last January there was some concern that external training
requirements might exceed funds available within the Congressional limitation
imposed by the Agency response to a Congressional reduction of $1M in
training funds. Overall, obligations for external training are now behind
the straight-line rate, even though three of the five major components
are ahead of the curve. Some components may have curtailed external
training to guard against exceeding the Congressional mark, and it was
suggested that Directorates review again their external training require-
ments through the remainder of the year and present to the Comptroller
by 14 July their best estimates of the remaining requirements. These
estimates will be reviewed at the July Comptroller Meeting, with a view
toward reallocating authorization for external training to satisfy the
most urgent requirements.
25X1Cer^ 10.(S) The status of funds budgeted for reimbursements to the
was reviewed, showing an estimated potential increase
of about $1.4M. Only two of nine agreements have been finally negotiated
for 1978. In both of these cases a slight surplus in budgeted funds has
occurred. Other agreements will not be negotiated until later in the year,
25X1Cer^ ^but an overall increase is anticipated because of a difference between
the actual number of and the number budgeted. Rising
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costs are also a contributing factor. Because reimbursements to the
25X1Cyyyy are a matter of Congressional interest, and because
the Congress made a token reduction of about $230,000 in funds budgeted
for this item in 19,78, it is anticipated that a report to the Congress
will be required describing the final negotiated figure and the reasons
for any increase that may finally be determined to exist..
12.(S) Last fall we allotted all of the appropriated personal
services money and 85 percent of the non-personal services appropriation.
The intent of the partial allotment was to cause managers to think ahead
about how they run their programs; encourage them to obligate at an even,
or planned, rate throughout the year; encourage them to validate obligations
as they go through the year; and improve the basis for estimating the
availability of surpluses during the last part of the year. At that time
we said the unallotted 15 percent balance would be allotted early in the
fourth quarter on the basis of need, including the need to fund unfunded
requirements, and we presented a formula in terms of percentages for
computing the amounts to be allotted/withheld. Using dollar amounts,
rather than percentages, a chart was displayed showing the method of
computation for fourth-quarter allotments. The formula applied and the
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amounts. to be allotted were accepted by those present. Estimated surpluses
totalling about.$3M continue to be withheld to satisfy requirements that
may occur during the last quarter of the.. year or to fund items taken out
of the 1980 Program, for funding in 1978 .o_r1.97..9
Chief, Budget Management Group
Office of the Comptroller
Distribution:
Orig - Compt. Subject
1 - DDCI
1 - ER
1 - AO/DCI
- DDA
1 - DDO
1 - DDS&T
1 - A/D, Mgmt., NFAC
1 - Compt.
1 - D/Compt.
1 - Compt. G. Chiefs (DDA; DDO; DDS&T; DCI/NFAC; AnG)
1 - Compt. Reading
1 - F3MG Chrono
O/Compt./BMG ~Amlp (7365) 28 June 1978
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LAST YEAR WE FUNDED 40 KY-70 SECURE VOICE TZIRMINALS.
0 DELIVERY WILL BEGIN APRIL/MM 1979.
o RE` JIR.E_MENTS WILL HAVE CHANGED, NEW ONES WILL HAVE DEVELOPED; AND, IN ANY CASE, THEY
WILL EXCEED AVAILABILITY.
W, E NEED TO PLAN NOW FOR THE ALLOCATION AND INSTALLNTION OF THE 40 TERMIL'LALS o
o THE DIRECTOR OF CDEKUNICATIONS WILL BE IN TOUCH WITH YOU SOON FOR A VALIDATION OF REQUI E 4ENTS
AND THE PRIORITY ATTACHED TO EACH TO BE USED AS THE BASIS FOR DETERMINING M1 THE TMAM,1ALS
SHOULD BE ALLOCATED ON DELIVERY. 0
TODAY WE WILL:
... REVIEW FUNDING ACTIONS TAKEN DURING THE FIRST SIX MONTHS
.REV-7---1,\T THE STATUS OF PERSONAL AND PEON-PERSON'A'L SERVICES OBLIGATIONS THROUGH 31 MAY,
TWO-THIi S OF THE YEAR.
25X1A ...LOOK AT EXTERNAL TRAINING
...CONSIDER UNFUNDED REQUIREMENTS IN RELATION TO. ESTIMATED SURPLUSES AND PROPOSE SOME
TU DING ACTIONS.
... DISCUSS FOURTH QUARTER ALLOTi,4:ENTS.
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SEC ET
DISCUSSION
Personal Services Savings Estimated:
by Directorates
$1.000
by Comptroller
$2.800
Difference due to differing methods of computation. Interested parties agree
th
t
at Comp
roller method probably is more accurate
?
a Estimates assume appropriation of full amount requested for the Pay Act.
a Congress rarely appropriates the full amount requested.
we may have to absorb as much as 10 percent.
o A 10 percent cut will use up more than $2 million.
o Personal Services savings not available, therefore., to fund unfunded requirements.
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SEC R LET
FOUR= QUARTER ALLOTMENTS
LAST FALL WE AL LOTTED 85% OF THE FULL APPROPRIATION. WE SAID AT THE TIME THAT
CUR PROBLEM IN PREVIOUS YEARS HAD BEEN OUR INABILITY TO ESTIMATE WITH REASONABLE
ACCU_tACY ND RELIABILITY AT ANY TIME DURING THE .YEAR, BUT ESPECIALLY DURING THE LAST
W (`T"'O--Fo MONTHS OF THE FISCAL YEAR, HOW MUCH MONEY IS, OR WILL BECOME, AVAIL ABLE
AS UCNOBLIGATED BALANCES TO FUND UNBUDGETED REQUIREMENTS.
T_HE IN 'EN'T OF THE PARTIAL ALLOTMENT WAS TO:
...CAUSE MANAGERS TO THINK AHEAD ABOUT-HOW THEY RUN THEIR PROGRAMS.
... ENCOUP AGE THEM TO OBLIGATE AT AN EVEN, OR PLANNED, RATE THROUGHOUT THE YEAR,
... ENCOUPAGE THEM TO VALIDATE OBLIGATIONS AS THEY GO THROUGH THE, YEAR.
...I PROVE THE BASIS FOR ESTIMATING AVAILABILITY OF SURPLUSES.
FUrER, HE SAID THE UNALLO'TTED BALANCE (15%) WILL BE ALLOTTED EARLY IN THE FOURTH
QUARER ON TIE BASIS OF NEED, INCLUDING THE-NEED TO FUND UNFUNDED REQUIREMENTS, AS
AGREED AT A CO 1PTROLLER' S :FETING. THE HARD UNFUNDED REQUIREMENTS IDENTIFIED BY A
PARTICULAR COMPCNEN'I' WILL BE A FACTOR IN DETERMINING THE AMOUNT TO BE ALTAIi'ED FROM THE
I5% t' ITHH ;LD; AT THE TIME, WE PRESENTED A F ORMULA IN TERMS OF PERCENTAGES FOR COMPUTING
THE AMOUNTS TO BE ATLO'ITED. IT NOW APPEARS MORE .MEANINGFUL TO PRESENT DOLLAR AMOUNS
IN _'RL1-'=ON TO THE FUNDING ACTIONS WE RECOMM'u'MLND, IF WE TAKE THOSE ACTIONS, IT WILL MEAN
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