MEMORANDUM FOR THE RECORD FROM E. H. KNOCHE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84M00713R000200100007-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 16, 2016
• Document Release Date: December 22, 2004
• Sequence Number: 7
• Publication Date: April 5, 1976
• Content Type: MFR

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5 April 1976
MEMORANDUM FOR THE RECORD
Tom Yale, CIA Director of Finance, came to see me today.
He said he felt strongly that the IC Staff, as it moves off and becomes
more separate, should have its own budgeting arrangements. He thinks
that one way to do this is to provide a single line item in the Agency
budget to cover the ICS with the understanding that it would be defended
by,the D/DCI/IC, but not scrubbed by the CIA Comptroller. Certifica-
tion of expenditures and budget execution would be made directly to
the Office of Finance computer and registered against four or five
financial account numbers-set up exclusively for the IC Staff.
I
He urged that there be an ICS budget officer, at the GS-14 or 15 level,
reporting directly to the Executive Officer and acting in effect as the
ICS Comptroller. Yale would prefer Executive Officer subordination
rather than burying the budget man in an administrative staff. Yale
thought new arrangements along these lines could be worked out and
take effect beginning FY-77 on 1 October this year.
STAT
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Some Thoughts on ICS Reorganization - Administrative Support Structure
1. As the development and execution of plans for restructuring an
augmented Intelligence Community Staff gain momentum, policy as well as
procedural issues involving administration and support will have to be
addressed. It would seem timely to raise some of the more important
issues and hopefully to begin to develop the concepts, the policies,
and the procedures which might apply to the support administration of
a more "separate" Intelligence Community Staff.
2. It is perhaps somewhat elementary to suggest that the first
issue needing resolution is a definition of the term "separate." However,
a clear interpretation and understanding of this assertion is crucial to
the solution.
3. The notion of "separate" and "not a part of CIA" is obviously
a reasonable one as it applies to the conduct of ICS substantive and
operational responsibilities. Independence from CIA substantive influ-
ence and control is no doubt advantageous and even necessary if accusations
of parochialism and-self-interest are to be avoided as the Staff acts for
and in behalf of the Director of Central Intelligence. But the issue of
administrative support can be viewed quite separately from decision-making
issues of substance and community management policy. One can argue with
logic for independence from CIA influence and control in substantive
policy areas but in internal administrative areas the arguments may be
less convincing.
4. Administrative support in one sense is a service function--an
activity which assures the flow of the resources necessary for an organiza-
tion to do a job. In another sense administration involves the notion of
responsible management of those resources. It is to assure a degree of
responsible management of resources that CIA has evolved a body of regula-
tions over the years which sets forth policies and procedures governing
the administration of personnel, property and funds. It is unlikely
that CIA could be persuaded to render administrative support to any
organization demanding exemption from the controls and standards pres-
cribed by these regulations as a condition of that support. Further,
it is doubtful that there is any legal basis for the administration of
personnel, property and funds outside the framework of these regulations
in the absence of any other applicable regulations. Therefore, this
think piece will not deal with the problem of the degree to which ICS
should be exempted from the provisions of CIA administrative support
regulations but rather with the manner and the process by which CIA }
will render that support.
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5. Realistically, there are three options available:
1) Continue the support arrangement as it now
exists and which places the responsibility for the
quality, coordination and procurement of administra-
tive support for the ICS upon the Administrative
Office of the DCI Area--a responsibility which he
has for all offices of the DCI Area;
2) Adopt a modification of this approach which
would require the addition of a small number of admin-
istrative specialists to the Table of Organization of Uf
the ICS who would work with and through the Administra-
tive Office of the DCI Area on most administrative
matters except perhaps the most routine; or
3) Establish a totally independent administrative
unit in the ICS with responsibility and resources suf-
ficient to handle all matters arising in areas of
personal services, personnel management, budget,
financial management and control, logistics, training,
travel, security, etc. In effect another administrative
staff somewhat similar (in size and expertise) to the
current AO/DCI would be required.
6. Before examining the merits of each of these alternatives,
it might be useful to recap briefly the rationale leading to the
centralization of support for the "DCI Area" in one administrative
office within the immediate Office of the Director.
7. Prior to Mr. Colby's appointment as DCI, each "office
of the so-called "DCI Area" Was responsible for the totality of
its own administrative management and support requirements. The
Administrative Office of the DCI was committed solely to the support
of the immediate Office of the Director. Consequently, each office--
in one way or another employed individuals to handle administrative
.problems directly with DDA support offices.
8. The DCI felt that this resulted in two relatively undesirable
situations:
1) an excessive number of man-years involved
in administrative support in the DCI Area; and
2) a certain lack of homogeneity among the
several offices in the handling of support problems
particularly in the budget, personnel and procure-
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1. There are several different approaches to the problem of providing
administrative support for the ICS. The basic decision that must be
made is how independent does the new ISC want to be?
2. At this time, the DCI Administrative Staff provides the necessary
support in such areas as personnel, budget and finance, as well as
maintaining the Logistics property account. The DCI Administrative
Staff.currently provides administrative support to eight different
offices, such as the IC Staff that are included in the overall DCI
complex. Each of these eight offices or staffs are handled as a
separate identity by the DCI/Admin Staff, and their budgets and proper
records are maintained as separate line items in the overall DCI accou
3. There appears to be only two courses of action to be explored:
(a) Continue to provide administrative support within the existin
frame work; or
-(b) Establish a separate administrative staff for the ICS.
4. The pros and cons of both courses of action are as follows:
Maintain present arrangement with DCI/Admin Staff
PROS
,+i A. The number of personnel required to staff an independent
Administrative Staff would not be necessary, thereby re-
ducing overhead costs by approximately $100,000.00. One
additional Admin. Officer would be required to assist the
Executive Officer in supervising the existing small Admin.
Staff in its daily operation. This individual would also
provide the interface with the DCI/Admin Staff for accomplish-
ing tasks which required their assistance.
B. All budget inputs to the computer would be made by the DCI/
Admin Staff and, as a result, it would not be necessary to
install a CRT terminal for budget inputs.
C. All administrative functions, such as Logistics, Personnel,
and Travel currently performed by the DCI/Admin Staff would
continue to be performed by them. It would not be necessary
to establish new working arrangements with DD/A elements at
a time when the IC Staff is undergoing a reorganization and
relocation, thereby making the transition period much easier.
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A. The IC Staff would still be dependent on the DCI/Admin Staff
for logistics, finance and personnel support. (The ICS will
still be dependent on CIA for support regardless of what ar-
rangements are made concerning an independent Administrative
Staff,)
B. It is anticipated that some areas of administrative support
could take longer to accomplish as the IC Staff would be one
of eight activities placing requirements on the DCI/Admin
Staff.
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ESTABLISH A SEPARATE ADMINISTRATIVE GROUP FOR THE IC STAFF
PROS
A. Would ensure independence from the DCI/Admin Staff.
B. ICS would be able to direct its own administrative support,
i.e., logistics, finance, and personnel.
C. ICS would monitor/program/reprogram their own'budget.
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ESTABLISH A SEPARATE ADMINISTRATIVE GROUP FOR THE IC STAFF
A. Would require an increased staff of 5-7 individuals to
administer logistics, finance, personnel, etc. As a result,
overhead costs would increase by approximately $100,000.00.
B. Would require establishment of new channels of communications
for accomplishing daily support through the DD/A, i.e., the
Administrative group would deal directly with their counter-
parts in their career services.
C. Reprograming of funds would be more difficult if the budget
were separate from DCI.
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5. It is recognized that this is rough treatment of a complex issue.
However, when the costs of establishing a separate Administrative Staf
are so high, there must be a much greater benefit than is apparent at
this time.
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