SURVEY OF THE CIA BUDGET STAFF

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05551A000200060006-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 22, 2016
• Document Release Date: September 3, 2002
• Sequence Number: 6
• Publication Date: March 16, 1950
• Content Type: MEMO

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TOt Executive-
FROMI Management officer
SWFC111 Survey of the CIA Budget Staff
16 March
Purpose
To determine if budgeting method's and techniques within CIA are
sound and accurate, as simplified as feasible, and if Budget and
Fiscal operations have been separated to the maximum degree possible.
Discussion
1. It is assumed by the Management otaff thot all parties who
will read this report of the survey are aware that CIA has had a good
budget program, accomplished by capable people. Therefore, the survey
was initiated in an attempt to determine any possible additional opera-
tions improvement and simplification omitting any reference to the
already existing good points.
2. In an effort to achieve maximum simplicity, the following or-
mat will be used under the heading of Findings and Recormend;Aions.
a. Problem and present procedure..
b. Recommended solution.
C. 'etion taken,
nga and Recommendations
item 1.
Problem and present procedure. :A complete position control card
index tile is maintained by the Budget Staff. Many uses of this
file were offered in justification for its existence. However,
only two of its uses appear to be justifiable.
a. Ae a means for computing man years for budgetary planning,
preparation and reporting.
b. As a ohm* that only one position is filled at a time.
The latter point is not in terms of personnel position control,
but rather to assure that though three personnel actions maybe
iehued for one upecific position due to attrition, Budgets,
position control card is designed to show what portion of the
man-year each encuMbent spent in the position.
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Recommended solution. That, if pasible,the Personnel vision
position control be adjusted to provide whatever information is
earcessary to the Bedeet Ste'T, or transfer to Machine tcoounting
(Hot to be abolished until now concept is proven usable.)
Action taken. Method being otedied jointly by Budget Staff and
Pereonnol Division to ransfer function to Machine Accounting.
Item 2.
bl edure. In one case examined, funds were
on basis of withholding 25 per cent
or te amount ed, In this ?ass, it appears that even farther
oed on the activity by reducing the quarterly
particular case, it may be that the problem
omens funds were not alloc-ted by Congress, until
year began. Nonethelens, there eppeare that a
flt.ngency was maintained by the Budget staff than wars
necassarj which required many changes in allotments, At this point,
it would seem C/A should assume that the Agency supervisory pereonnel
are capable of operating the offices and activities entrusted to them,
Recommended solution. That all activities be advised of the total
amount reserved for them in order that th...7 may be able to adeeeately
plan future operetions.
Action taken. The Budget Officer stated that the abcva is their plan
and it would be implemented with the new fis0
Item 3
blem and sant rocedure, At present when Avice at Allotment
o. 1 of the yearly amount allocated
ndioated in the first column, and then the quarterly *mounts
are indicated on a cumulative basis; hence, a $1000000 is net
divided into four equel amounts which total $100,000, but is shown
as 250000, 450,0000 $75,000, and $100,000, As teis appears to
create additional work for the Fiscal Office, and no good purpose
hos been offered in rebuttal, it would seem advisable to ?bang* the
system.
Recommended solution. That yearly allotmt'nt be set up in clivid
4tiarterly amounti.--This yea amount may be dieided into
equal amounts, which will total the whole emount allotted o
reasonable sums to equal the total. This allocation 'mould be
determined between the Budget Staff and the activity concerned.
i
Action taken; The eudget Staff indicated that they would take
oorrective ect on effective the first of the new fiscal year.
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esent .rocedure. Form No. 3442 is an advice of
oun 0 money eeC o co hae expended. This form indicates
obligations, unliquidated obligations, and total oblieatione?
and indicates the amount spent by symbol. 'bile this method
is very helpful to the Budget personnel, it would seem the
operator receives meeger information, and is left no alternative
hut to engaee in extensive arithnetic to determine unobligated
balancee. Further, by advice of allotment the operator is told
only two figure's, the total amount allocated for 01, personnel
service, and ce thru 09 - "all other". 7iowever, the Form No.
34-12 indicates amounts obligated by item, but does not indicate
unobligatod balance. This problem is part of an overall problem
as to whether ectivities should be advised of allotments by
specific symbols, or whether the systen or lump sum allotments
is the best for CIA. inasmuch an a "trial run" has been instituted
In the Budget Office so that they may determine which system is
the better, the Nenagement etfice will withhold its investigation
until a later date.
Recommended solution. That the Form o. 34-12 be considered or
70a73017475771771E4 no action can tie taken until N determination
can be mud* in the Budget Office as to which system of allotment
control mill be wed, noweVer, the Uanagement Office would
recommend that for most offices, Form No. 34,42 should not be
issued more often than quarterly.
n taken. potion pending.
ob1?s and
Pr
tall and then
step.
ocedu Form No. 12 discussed above
co, and nutmttted to the Budget
e operator. This would seem an unnecessary
Recommended solution. That the Form No. 34-12 when prepared by
Ffical be sulimitted directly to the activities so that questions
that may arise could be directed to either the Fiscal Office,
or the Budget Staff. The form can be prepared in an additional
copy, which copy will be gent to the thidget Staff directly.
'ction taken. Budget and Fiscal will study and suumit the recommen-
dation.
6.
past, most Budget presenta
rs. In 411 fairness genera
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a good deal of this was beyond the control of the. Iudget itaf.
However, it creates- a considerable hardship on the operating
activities,. prevents adequate planning and undoubtedly makes
for fallacious: budget planning. .Much of thishas already been
corrected.
Recommended lution. 'ghile- this comment is eomei,hat extensive,
tee d contribute toward the improvement of
this problem:
a. The issuance of compreheneive administrative instructions
to set forth the concept of Rudget and inherent problems, certain
definitions, legal requirements and requirements necessary to
setiefy the Bureau of the Budget and Congress.
b. To engage in a program of "good publicity' ting
activities have a better understanding of budceting and
problems, so that they will be in a position to cooperate. ther
through the orientation prograr, or specially celled coefe e.)
a. &ct as a source of advice for the cperatine activities
and matters which may require project review action.
d. Promote budeet consciousness in the operating activities
which will assist the overall Agency budget program as well as
the operatine activity itself.
Assure that cells for estimates are in possessionthe
in offices at least eix *mike prior
dy planned)
prepa
the due date.
Conduct Agencybudget haaringe prior to final estimate
on. (Already planned)
Action taken. - Moot of this program is under way and should be
eompieied in the may future.
tam
cedure. Estimateshich nut be subsiteed
e are normally prepared by the
earati activity and submitted directly to the ?FE:, and while
the Budeet Of3cer is a msber of this Committee, it would appear
thet he would be attending the meetings under somehat of a
handicap, a the Agency Budget officer, it would appear more
feasible if he -were permitted to review all such projects prior
to the Committee meetings.
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Recommended solution* That one copy of all requesle for Projeota
IMT-M?VErrareweeu?to the Budgwt Officer at least 24 hours in
advance of the Cormittee etine in order that budgetary implica-
tions can be examined and the Comrittee accurately 4nd properly
advieed at the meeting in regard to the status of funds.
k:tion taken. Discussed with the Ooneral Counsel who screed that
WITTErri7 generally the case, he will endeavor to assure advance
notice to the Budget Officer in all case*. ?reposed changes to
Administrative Instruction No. are being drafted.
Problem and resent procedure.-hein funds are received each
fiscii 76,4r a f&rm is prepared end submitted to every operating
activity indicating the amount of money allotated. Per every
change malt in the allotment an entirely new form must be
prepared, eopying all old figures over, showing changes, etc.
Thin would appear to be an unneeessery workloed, for Budget :tat T.
Reoommended solution. It is recommended that When the original
Advice of Allotment is granted, it should. be granted as a yearly'
sheets and changes made thereafter be made by chance slip (now
form to be designed), 11 on the receipt of a change slip, each
office concerned would correct the items effected and pest new
totals.
Action taken, Being considered by 'Budget?
iiisoellaneous
ender this heading we would like to present items of general interest
with and without recommendation:
1. Recommended that a general study or object and sub-oct
classification be made to determine it our budgeting eystem would
satisfy two needs:
a. Bureau of Budget requirement., and
b.Provide. cost accounting by rit- machinee which will
satisfy any logical or reasonable request from any source.
'Then this: study is rade, it is roomsended that all field
stations be considered and the pattern established to take the field
stations into considerations.
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2. As a matter of tying relationships of the Management and
budeet Staffs more closely together, a- system has been devised between
the Budget Officer and the Manegement officer whereby the budget
ansilyets will actually engage, in Management activities in the follow-
up phase of: every Managerent survey whether major or mina.: This
system will be effeoted by providing the: budget analyst of greatest
concern (through the Budget Officer) a copy of every Management
recommendation when they are approved in the Executive's office.
ihe budget analyst will then act as a ttanagement a: ent to determine.
that the proem= as approved has been or is being implemented..
This will provide the budget analyst with e broader Agency knowledge,
will eseeet the operating office in its budgeting, and will asslat
the Management progrem in oarryine out its mission. Normally, these
activities will be held strictly to administrative management.
it is frequently impossible to divorce administrative management
from operations, coordination with e0APS will be automatic at any
time an operational matter is involved.
3. tLached hereto is Tab !, Stetement of Functions for the
Budget Staff. Functional etatemente for the anelyet and other
personnel of the office will be written by the Budget officer and
submitted to the eanegement etaXf.
4. Attaehed. as Tab B is a list of proeosed, procedural changes
and prehleme which are currently under consideration or have been
concurred in and Are being implemented which this office will examine
at a later date to determine the degree_ of success of implementation.
Manageent he ernotated Tab B as to degree of achievement as of the
date of this report.
Conclusions
It is recommended that no T/0 change be considered or effected at
this time. Tiowever? shortly after the beginning of the new fiscal
year in July, the Management Stf will re-survey those portions of
the Budget etaff whie7, are left undecided in this report. Further
by that date, certain IBM: processes may have been established in
the Budget staff,- and- at that time a final report 'Ill be written
which will include any T/0 Adjustment which might be considered best.
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