COMMENTS ON SURVEY REPORT OF THE CIA BUDGET STAFF

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61-00274A000100060006-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 12, 2016
• Document Release Date: July 31, 2002
• Sequence Number: 6
• Publication Date: March 24, 1950
• Content Type: MEMO

3.7B1N0ARD FORM. W. 54
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vJJace 1v1E?120r~LYLd2Lyi2 UNITED STA~S GqVERNMENT
TO : Management Officer
: Budget Officer
SUBJECT: Comments on Survey Report of the CIA Budget Sta~
The various recommendations involved in the subject report have
been carefully considered by this office. Our comments are presented
in response to the Management Report under the appropriate citation
references set forth in the report.
General problem: Budget Staff man-year control card file.
Comment: During the interval since performance of the
Managemenf'Survey the Budget Staff has engaged in a number of
discussions with the Personnel Division, Administrative Staff,
and Machine Methods Division, OCD, on the subject. The
discussions so far have served to justify the following statements:
a. The Personnel Division records upon which position
control is maintained cannot furnish the Budget Staff the
information it requires.
b. For budgetary record purposes advices of personnel
action in the case of some assignments must be improved to
include more specific information as to the intent of the
action. (Personnel Division concurs.)
c. There is a possibility that the Budget Staff
requirement with regard to budget control card records can
be satisfied by transfer of existing card records to machine
accounting processing. Detailed problems of accomplishing
this transfer are now being studied by the Budget Staff and
Machine Methods Division, The Machine Methods Division
will soon be in a position to furnish to the Budget Staff
"dry runs" of the personnel information it requires. These
test experiments will continue until such time as there is
a general agreement as to whether or not existing card
records in Budget Staff can be eliminated.
Item 2.
General problem: Allotments of funds to Offices and Staff
Sections in smaller amounts than were provided in the Budget
fo
t
r opera
ions during the fil
sca year.
Comment: At the beginning of fiscal year 1950 partial
allotments of funds were made by the Budget Staff to offices
and staff sections for reasons directly attributable to the
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lateness of appropriation action. It is not expected that
a similar situation will apply in the future but in any
case corrective arrangements have been made by the Budget
Staff which should prevent any confusion or misunderstanding.
It is our present plan that allocations covering fiscal year
1951 will be made to Assistant Directors and Staff Chiefs
shortly before 1 July. Such allocations will be made by
memorandum from the Budget officer to Assistant Directors and
Staff Chiefs on the basis of "subject to availability of funds".
Advices of Allotment Authorization will be released after
appropriation enactment and will be directly predicated on the
allocation memorandum. It might be pointed out that despite
the fact that a partial allotment of funds resulted in some
awkwardness during the current fiscal year, the amount available
for initial allotment was legally restricted in view of the fact
that the Agency authority for initial operation was based on
interim resolutions during the period July to September. Under
normal circumstances not more than a "10%" reserve for contingencies
will be withheld by the Budget Staff, unless it is obvious that
funds included in the budget for a particular activity(s) are in
excess of known requirements.
Item 3.
General problem: Release of Advice of Allotment Authorization
on the basis of dividing the yearly figure into four quarterly
amounts rather than upon a cumulative basis.
Comment: This matter was previously discussed with the
Fisca vision, Administrative Staff, and an agreement had been
reached whereby the action recommended would be taken with regard
to allotment advices issued during fiscal year 1951.
Item Li..
General problem: Revision of Report of Obligations and
Expenditures by Object Classes, Form No. 34_12, to furnish
obligation information to Assistant Directors and Staff Chiefs
in a more convenient manner.
Comment: The Budget Staff concurs in the fact that Form
ILLEGIB
No. 3 12-wM'1 require revision on the basis of present allotment
and control procedures as indicated. by drafts of procedures which
have been submitted to the Management office for suggested 25X1
incorporation within of the manual of Agency Regulations.
At present the Budget a is developing revisions of not only
the Form No. 34-12 but also the Advice of Allotment Authorization,
Form 32-5 and Request for Change in Allotment, Form 32-7.
Under "Recommended Solution" the Management office
has indicated its feeling that Form 34-12 should not be issued
more often than quarterly. Such an arrangement might be considered
adequate for the smaller offices, however, the larger offices,
which contain a number of highly active accounts, must receive
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obligation reports monthly if they are to have assurance that
they are operating within available funds. Budget Staff
analysts must receive monthly Statements of Obligations to
enable them to perform their assigned responsibilities if they.
are to furnish adequate assistance and guidance to operating
offices on fund problems.
ILLEGIB
Item 5.
General problem: Submission of Form No. 34-12 by Fiscal
Avis on, Administrative Staff, directly to organizational units
rather than through the Budget Staff.
Comment: The Budget Staff feels that the present arrangement
should con nue. Delivery through the Budget Staff affords the
Budget analyst an additional opportunity to maintain necessary
liaison with operating offices and to advise regarding any matters
of import in connection with fund status.
Item 6.
General problem; Prevention of last minute rush in Budget
presen ati`on:
ILLEGIB
Comment: The Budget Staff feels that a paramount consideration
under zsubject is to obtain general agreement as to a deadline
beyond which no budgetary additions or changes will be submitted
for incorporation within the estimates. Last year the Budget
Staff received information for incorporation within the budget
document as late as the 124th of September. From 15 August to
lL September a number of changes were received by the Budget Staff
which required the complete reworking of entire sections of the
budget. In this connection it might also be mentioned that a
change within a section after the presentation has been t-shaped
up" also requires revision in a number of recapitulation schedules,
the overall spreadsheet and similar data. Accordingly, it is of
the utmost importance that the Budget Staff be kept entirely free
from such changes for a substantial period prior to 15 September.
Reference as It is believed that the Budget Staff has
made a substantial beginning toward'the issuance of
comprehensive Administrative Instructions by preparation
of the various chapters already submitted to the management
Office for incorporation within the Agency Manual of Operating
Procedures. It is the present intention to improve and
extend these issuances during fiscal year 1951.
Reference b. The Budget Staff has in operation an
-
analy
s program which Will provide additional budget
information for operating offices which should result in a
4 % better understanding of budgeting and budget problems. In
connection with quarterly analysis of funds which are now
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being prepared by Budget Analysts conferences are held
with program operators at regular intervals on the
complete budgetary status of their activities. There is
reason to believe that the strength of the Budget Analyst
Program Operator liaison program is improving daily.
Subsequent to the release of the Call for Estimates a
general conference will be held so there will be a complete
understanding on the part of operating officials who will
be expected to work up the detailed requirements expressed
in the Call for Estimates.
Reference c. Same comment as above.
Reference d. Same comment as above.,
Reference e, The present plan is to release the Call
for Es'unates not later than 15 April with the requirement
that agency estimates be transmitted to the Budget Officer
on or before 1 June. This will provide operating offices
six weeks for preparation prior to the due date of 1 June.
This deadline will coincide with the requirement for
submission to the Projects Review Committee of estimates
covering unvouchered activities.:
Reference f. Hearings will be held prior to final
estimate preparation in accordance with the schedule prepared
by the Budget officer and transmitted to the Management
Officer on 17 January 1950.
7.
General problem: Review all PRO submissions prior to Committee
hearings,
Comment: The Budget Staff is in complete concurrence with
this recommendation and has recently prepared at the request of
the Management office a.suggested revision of Administrative
Distraction Subject: "Projects"., for incorporation within
the Manual o Agency Regulations, which will require the PRC
request to be submitted through the Budget Officer. This
procedure will permit additional information to be made available
to members of the PRO.
General problem,. Issuance of one Advice of Allotment Authorization
for tiyear for a given activity with changes required during the
year being accomplished by a change slip in lieu of the issuance
of revised Advices of Allotment Authorization.
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Comment= This office wishes to retain in substance the
presen sys em for the following reasons;
ILLEGIB
a. The information which would be included on this
change slip would be almost identical to that Which would
be required if a revised Advice of Allotment Authorization
were to be issued and such a change would result in the
use of two forms where one now suffices.
b. At present it is intended that throughout the
fiscal year 1951 budget analysts will prepare a quarterly
analysis of funds covering the activities to which they
are assigned. It is believed that this procedure will
result in better budgetary planning and consequently reduce
the number of changes required.
c. The Budget Staff at the present moment is engaged
in a study to effect a reduction in the number of allotment
accounts required for operating offices. It is believed
that a reduction can be made in the number of allot
t
men
accounts through consolidation of those accounts which
i
l
nvo
ve small amounts of money. This action will be effective
in reducing the number of revisions necessary in Advices of
Allotment Authorizations.
d.. It is believed that on the basis of change slip
usage there would be a greater possibility of error.
Miscellaneous:
Item 1: Object and sub-object classification study for
possible improvement and for possible application of IBM Machine
Methods for cost accounting purposes.
Comment: (a) Object classes of expenditure are prescribed
by Budget-Treasury Regulation #1 and are standard for the U. S.
Government. The present schedule of sub-object classifications
is under study by the Budget Staff for consideration as to whether
or not it can be improved.
(b) The Budget Staff does not have a definite
reaction at this time as to the applicability of IBM machine methods
for cost accounting purposes. It is believed that this matter may
serve as a subject for future consideration in discussions with
representatives of the Machine Methods Division, OyD and Fiscal
Division, Administrative Staff.
Item 2: Budget-Management Survey coordination and follow-up
Comment: The Budget Staff feels that the arrangement of having
Budge analysts make follow ups on Management surveys is an
appropriate and valuable Budget-Management arrangement. The plan
is dependent upon very close liaison between both staffs and,
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agreement upon matters on which a follow up should be made
before implementation by the budget analyst.
Item 3s Statement of functions for the Budget Staff and
functional statements for the analyst and other personnel of
the Budget Staff.
Comment: With regard to the statement
f f
o
unctions for
the Bu e Staff included in the survey report under Tab A,
it is suggested that further consideration be
i
g
ven to
clarification of some of the major responsibilities. The
f
n
ti
l
u
c
ona
statements
for each employee-
m to
p yee within the Staff and it is anticipated that
these will be ready for submission to the Management Staff within
the near future.,(
Item Li.: Reference is made to Tab B which includes a list of
proposed procedures and problems currently under consideration
by the Budget Staff and the status of each is reported below by
appropriate paragraph reference.
1. A Budget Staff analyst is now engaged in making a
detailed study of the problem for recommendation to the Budget
Officer.
2. A tentative system covering this point has been
developed and is now in use on a trial basis.
3. It is anticipated that the developed system should be
ready for review by the Management Officer on 1 July.
4. This subject is covered under Item 3, t'Miscellaneousru.
5? This subject is covered under Item k, "Recommendations
and findings",
6. These are in the process of preparation.
To A draft covering a filing system has been completed.
8. The annual revision of Chart of Allotment Accounts is
now in process.
9. This matter has been under study for some time and it
is our intention that essential points pertaining to possible
improvements in the present system will be developed and appear
as a part of the Call for Estimates to be released 15 April.
It is our opinion that the management survey was valuable in furnishing
the Budget Staff an objective appraisal of its existing operations and
providing a sound base for Budget-Management operations in matters of
common concern. The Budget Staff also wishes to express its appreciation
of the manner and s
i
it i
p
r
n which the Management Survey was conducted.
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Responsibilities of the Budget Officer
and the Budget Staff
A. The mission of the Budget Staff is to develop and justify to the
Bureau of the Budget and the Congress adequate and accurate annual
budget estimates; formulate and administer a program of budgetary
execution to assure the prevalence of a balanced relationship between
funds and activity requirements and accomplish an orderly and effective
program of expenditure; procure through covert and semi-covert channels
and procedures the annual appropriations made on behalf of CIA;
establish fiscal policies and procedures and otherwise provide staff
advice to the Agency on all related matters to insure the establishment
and maintenance of appropriate controls and regulations with respect to
accounting and audit matters; and coordinate the use of types of funds
as well as other financial matters, Agency policy and procedure with
other appropriate officials concerned with internal management problems.
B. The functions of the Budget Staff which are performed under only very
general administrative direction may be briefly recapitulated as
follows:
1. Provides the mechanics and procedures for the formulation,
preparation and execution of the Agency's annual budget.
2. Plans and establishes in coordination with other officials
financial and budget policy.
3. Effects control of Agency funds under applicable budgetary
.provisions and the requirements of approved activities by the
formulation and administration of a system of allotment accounts.
In this connection is responsible for issuing advices of allotment
authorization and complement notices to operating officials.
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1i.. Provides unusual and unprecedented procedures and liaison
for the secure expenditure and accounting of funds including those
which are not accountable to the General Accounting office.
5. Determines and assists in the administration of the applica-
tion and coordination of rules, regulations and Agency policies and
procedures applicable to both vouchered and unvouchered foreia-n
financial operations and transactions.
6. Establishes, coordinates and controls all liaison with other
Government agencies concerning buds;,et and fiscal matters of all
types and conducts all liaison with the Bureau of the Budget.
7. Responsible for compilation and submission of designated and
as required reports to the Bureau of the Budget, the Postmaster
General and the Congress of the United States.
8. Compiles and presents informative and analytical statements,
reports, graphs, charts, etc. to reflect the progress of budgetary
execution and as required for Agency administrative requirements.
9. Develops standards to control the budgetary and financial
systems of the Agency.
10. Plans, develops and effectuates unique procedures governing
the disbursement, control and accounting for CIA funds with the
Bureau of the Budget, Treasury Department and the Office of the
Comptroller General of the United States in order to establish and
maintain policies and procedures within the Agency with respect to
the utilization of funds in accordance with Government laws, regu-
lations and general policies to the extent permitted in supporting
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the mission of the Agency and the concept of the use of
appropriated funds under the wide'latitude provided in Agency
legislation.
11. Directs the development of technical budgetary and
accounting procedures governing both domestic and foreign
financial activities and transactions for both vouchered and
confidential funds and in connection therewith approves and
insures the coordination of adequate instructions to Finance
Officers, Certifying Officers and Agent Cashiers located both
within and without the United States.
12. Continually reviews and analyzes budgetary and financial
statements and effects or recommends appropriate action as
required.
13. Reviews and recommends to the Director, CIA, special in-
structions and the establishment of policies concerning the
accounting of special funds and coordinates in arriving at
determinations as to action to be taken resulting from inspections
and audits covering foreign financial transactions to insure
compliance with Agency policies, regulations and procedures.
14. Reviews and makes determinations with respect to plans
and procedures relating to foreign currency exchange and dis-
bursement of foreign currency and the control of gains and losses
incurred on monetary exchanges, devaluations, etc.
15. Initiates, directs and controls liaison concerning all
financial policy and related procedural matters with operating
officials for the purpose of establishing and maintaining uniform
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fiscal and budgetary policies and procedures in cooperation with
the Coordination, Operations and Policy Staff and the Management
Staff.
16. Assists the Coordination, Operations and Policy Staff and
the Management Staff inliaisonwith appropriate Agency officials in
the development and implementation of improved financial programs
and activities for the efficient and economical administration of
the Agency's mission on world wide basis.
17. Otherwise plans and directs or executes fiscal or other
related specialized programs of national and international signifi-
cance requiring an exceptionally high degree of technical admini-
strative and fiscal research and development.
18. gcts in a professional and consulting capacity in advising
the Director and other Lgency officials relative to budget and
fiscal specialized work which has no precedent outside the Agency.
19. Conducts an analyst program throughout the Agency to con-
tinually provide assistance in the development of budget require-
ments and programs and to maintain appropriate financial control
over operating activities.
20. Develops and coordinates budgetary and fiscal activities
necessary in the conduct of NVSC operations.
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