CIA BUDGET PROCESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M00165A002600010010-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: January 23, 2004
• Sequence Number: 10
• Publication Date: March 7, 1977
• Content Type: MF

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7 M! R 1977
MEMORANDUM FOR: James H. Taylor
Comptroller
FROM : Admiral Turner
SUBJECT : CIA Budget Process
I enjoyed your memorandum of 9 February on the CIA
budget process. I would like to be'sure that program
submissions which are made in June in accordance with
your schedule clearly identify the priorities which the
Directors would establish when moving from their austerity
budget to their PRC guidance level budget, and from their
guidance level,budget to their optimal budget.
STANSFIELD TURNER
r+'
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Ns'E FOR: DCI Designate
SUBJECT: The 1978 CIA Budget
1. In our session Tuesday evening, you asked for details of the budget
process within CIA. Here is a short summary of what we will be doing for
fiscal 1979. It is identical in all basic respects to the process employed
in previous years. The President's deep interest in programs and budget
issues may lead to his involvement in some form during the July Program
Review or even earlier.
2. Also included is the-brief paper on the missions and functions
of the major subdivisions of CIA that you requested. A separate envelope
contains a copy of the Congressional budget submission that was forwarded
to our oversight committees last week, intended as background reading.
It covers CIA's activities, as well as the budget, in considerable detail.
3. The following comments on the contents of the budget book'should
help you find items of particular interest.
-The Perspectives section includes a brief discussion of
historical trends and a somewhat more lengthy explanation.
of major changes in organization and management that have
taken place in the last year.
-The Program for 1978 section 'summarizes major changes and
includes the standard Program and Financing statement
accounting for funds appropriated for CIA. It also includes--
a table accounting,for funds appropriated to other agencies
and advanced to CIA.--
-The Program by Program Category section may be of greatest
interest to you at this juncture. You can skip the first 11
pages; they merely summarize what follows, omitting all sensitive
material. Beginning with page 111-13, you will find a detailed
discussion of recent achievements and future plans, as well as
the budget itself. Also included, at the direct request of the
house Appropriations Committee, are statistics on certain functions
susceptible to quantification, as well as a tabulation that
attempts to differentiate 'between programmatic changes and cost
changes.
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--In the Program by Organization section, you will find tabulations
by division and overseas stations of DDO expenditures, as well as
maps showing the location of overseas. stations. The term "special
activities" on the tables refers to political and propaganda
activities. These tables, however, show only the funds budgeted
to the operating divisions; a discussion of the covert
action program overall is in the Program by Program Category
section, pages 111-59 to 1II-62.
--The Object Class and Personnel Data sections are tabulations
of basic financial data and probably of minimal interest.
--The Supplemental Schedules section covers (1) items that
Reserve (VII--J).
are mandatory under existing legislation or under OMB guidelines
and, (2) items of particular interest to Congress. You
probably will be most interested in those that deal with
Congressional directives-to us (section VII-A), SIGINT (VII-B),
RD&E (VII-C), Prgprietaries (VII-I), and the Contingency
4. I enjoyed the opportunity to talk with you Tuesday and look forward
to many future meetings.
James H. Taylor
Comptroller
Attachments:
As stated
Distribution:
Original - Addressee, w/atts
1 - DDCI, w/att
1 - ER,.w/att O
t~- Compt Chrono, w/att
1 - AC/R, w/att
1 - Compt Subject, w/att
1 - Reading File, w/o att
1 - AnG Chrono, w/att
O/ComptResStaffAnG:HBoatner/jes4L9Feb77)
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BUDG . RAM PROCESS WI'T'HIN CIA FOR 09
o A Program Call for 1979 has just been issued by the Comptroller.
This contains instructions for preparing. component programs for top
management review in July. New this year: programs will be
submitted at three levels (austerity, at PRC guidance level,
optimal). Program Guidance will be issued in mid-February.
This will specify dollar levels for each directorate for 2 of
the 3 levels (no limit on maximum that can be proposed) and will
include guidance on specific substantive areas.
o Program Submissions will be submitted to the Comptroller in June.
Comptroller compiles, analyzes, and submits recommended Agency program
to the Executive Advisory Group and DDCI for discussion and preliminary
decision.
o Program-Review. In early July, the DDCI reviews the Comptroller
recommended program With EAG members and reaches a preliminary
decision.
o The Program is then submitted to the NSC Policy'Review Committee for
review and decision in mid-July. (Policy question to be discussed
with Admiral Murphy: should OMB participate in this PRC review?)
o .Financial Guidance letters will be issued by DDCI in August, reflecting
Program Review and PRC decisions; dollar and position levels are
specified for each directorate and any appropriate guidance is transmitted,
o OMB-Submission is compiled in September.
e OitiNB/PRC joint-review of program will take place in October and November.
The review includes detailed hearings on each program selected for
examination by either 0MB or PRC (IC Staff). Typically some 80-120 hours
of hearings are conducted.
o PRC Reviews recommendations of 0MB and PRC staff (and CIA appeals)
in November.
e Presidential Review, at which any outstanding issues between 0MB and
PRC are settled, will take place in early December. -
o Guidance letters to CIA directorates will be issued by the Comptroller
in late December. On the basis of Presidential decisions, these allocate
total funds and positions to the components and provide appropriate
additional guidance. The components will then prepare and forward inputs
for the Congressional Budget in late December.
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e The President's Budget will be compiled by 0M'MIB in December and submitted
to Congress next January. (CIA and certain other Community programs are
included within it but not explicitly identified.)
o The 1979-Congressional-Submission will then be prepared by the Comptroller
staff during January and submitted to Congressional oversight committees
on 1 February.
o Congressional hearings with DCI and DDCI will take place in March and
April. The usual format has been to..begin with the DCI on Community
programs, and continue with DCI, DDCI, and/or others on details of
CIA, and other community programs.
o Authorization action by Senate Select Committee will take place for first
time this year. There is not likely to be matching action on the House
side. The procedures are unclear.
o The House Appropriations-Committee mark will be received in late May or
early June. Agency may appeal to PRC; PRC may appeal to Senate.
o Senate Appropriations-Committee acts after House, and generally
concentrates on issues raised by House.
o Conference-committee of House and Senate Appropriations Committees will
neet in late August or early September. Appeals are possible, but
conferees can consider only those items on which the two committees
have taken different actions.
o Conference action will be conveyed in classified letter to OMB and the
DCI in late September. This completes the detailed external process
of the budget. We then turn to the problem of administering the operating
year.program.
o Financial guidance letters from?DDCI will be prepared by Comptroller in
September 1978. These will allocate funds and positions approved by
Congress to directorates and include any limitations imposed by Congress
and any further restrictions DCI or DDCI wish to impose.
o Active Operating budgets will be prepared by CIA components in October.
e Comptroller's-meetings (Comptroller, four deputy directors, administrative
officer of DCI area, Director of Finance) will take place monthly,
beginning in January, and continuing through the end of fiscal 1979
to review status of funds and positions. As new requirements arise,
decisions are made on whether to proceed with them and, if so, how
the funds and positions are to be made available. These decisions are
submitted to the DDCI for his approval. If approved, they are conveyed
to the directorates in the form of minutes of the Comptroller's meetings
or as amendments to the Financial Guidance letters.
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o Requests for Reprogramming within each Directorate above thresholds
established by Financial Guidance letters must be submitted to
Comptroller for approval or recommendation to DDCI.
o Proposals -for-Reserve withdrawals must be submitted to Comptroller,
DDCI, and DCI for approval. (If for covert action or other sensitive
activities, these will already have been approved by the Special
Coordination Committee of NSC, there-will have been a Presidential
Finding of need in the interest of national security, and seven
committees of Congress will have been briefed.) Requests are
then submitted to OMB for approval. If 0MB approves, Congressional
Committees are notified.
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Program P a ning
Budget
Formulation ~? c ~B E R
Q Budget Stir
Execution \ ~
A new fiscal year begins each year on October 1st.
A new budget planning cycle begins each year in January with the issuance of the
Program Call which is applicable to the fiscal year beginning 21 months later.
Budget Officers, preparing the Program Plans, Budget Estimates, and Congressional
Budgets, shall refer to the required three fiscal years of financial data as being the
Program Year, that is, the year for which a budget plan is being developed; the Budget
Year, the year immediately preceding the Program Year; and, the Current Year, the
year immediately preceding the Budget Year.
NOTE: F P&r eefe's6g0~~/@Ply// :sQm-wM OID D:'1;6 gQ2C~OQ 18Q1~.5Committee.
Other changes are also likely under the new Administration.
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m Provides leadership of Intelligence Community and executive direction
of CIA, and provides staff support to DCI and DDCI.
a Comptroller: Advises on all CIA resource. matters; prepares CIA's program
and budget submissions for PRC,-0MB and Congressional review, and maintains
the Agency's financial and manpower controls; provides a central mechanism
within CIA for collection guidance; conducts assessments to aid collection
and Agency management in managing resources.
o Office of EEO: Administers several affirmative action programs and the
Federal discrimination complaint system.
? Inspector General: Provides the full and final audit of all CIA activities
and funds;. investigates reports of malfeasance of employees and reported
conflicts of interest and reviews appeals of employee grievances; conducts
regular component inspections to determine compliance with guidelines
and regulations and to determine problems that warrant management attention.
? General Counsel: Provides advice to Director and all officials and
employees on legal matters; reviews contracts and regulations of the Agency
from a legal viewpoint; conducts legal liaison outside the Agency.
? Legislative Counsel: Advises the DCI and DDCI on all Congressional matters
affecting CIA and the Community; coordinates Congressional contacts and
levies Congressional requirements on Agency elements; maintains liaison
with appropriate Congressional Committees; and recommends action in response
to legislative proposals.
o National Intelligence Officers: Provide liaison between the Intelligence
Community and policy-level consumers in order to produce Community-
coordinated intelligence to satisfy..policymakers` requirements.
o Agency goals established by the CIA Executive Advisory Group:
--sharpen capabilities to' give policymakers what they really need;
-improve management processes for coordination and integration of all
activities and for planning; _ .
-establish relations of mutual confidence with oversight organs and
the public;
-strengthen command and control arrangements, and;
---improve personnel policies.
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