REDUCING AND CONTROLLING WASTEFUL YEAR-END SPENDING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85B01152R001001290006-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 21, 2016
• Document Release Date: June 3, 2008
• Sequence Number: 6
• Publication Date: June 21, 1983
• Content Type: MEMO

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EXECUTIVE OFFICE OF THE PRESI
NT
OFFICE OF MANAGEMENT AND BUDGET -
WASHINGTON. D.C. 20503
DD/A 1taSistr~ .
M-83-19 June 21, 1983 MEMORANDUM FOR-HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
David A. Stockman
SUBJECT: Reducing and Controlling Wasteful Year-End
Spending
Prevention. of waste and inefficiency in Federal programs is,-.-
a top priority of this Administration. We must continue our
efforts to. eliminate wasteful year-end spending by Federal
officials who obligate funds simply so that the. funds will
not be reported as unobligated or lapse at the end of the
fiscal year... Furthermore, obligations should not be made
without taking sufficient time to ensure reasonable cost and
accountability. .As we enter the final quarter of fiscal
year 1983, please. give special attention to preventing this
potential problem in your agency. Your personal attention
is necessary because the only effective way to eliminate
this type of waste is vigorous management attention that is
supported by strong audit; investigation, and enforcement
programs.
I have asked the Administrator' of the Office of Federal
Procurement Policy to continue to assist you by providing
updated guidance on ways to prevent specific types of
wasteful year-end spending.
I ask that you issue instructions to your staff to ensure
that:
Employees have been advised of the standards of
conduct as they apply to wasteful spending and the
possible sanctions and penalties, and that-. they
are apprised of how to report waste and fraud and
the protections that are available for employees
making such reports.
Obligations for the fourth quarter of the fiscal
year are no higher than the average for the first
three quarters, except where seasonal
requirements, essential program objectives,
circumstances unique to this fiscal year, or lead-
times justify a higher level.
Orders for services, supplies, materials, and
equipment are not more than needed to meet
approved essential program objectives.
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Special `attention` should, be. 'paid to controlling the use of-
funds in-. areas. that are particularly vulnerable to' wasteful;..
spending,- e.g. ' travel, consulting and .related.services,:_
periodicals,'- pamphlets and audiovisual products and`..other-
areas identified -by :'assessments made pursuant to., OMB's
guidelines for implementing the. Federal Managers'=-Financial..
Integrity -Act and ;OMB Circular _No. -A-123: on -Internal,.
unobligated.
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(Additional procurement ... guidance by ..the
Administrator of the Office of Federal Procurement'
Policy is attached.)
Administrative '*type'> expenses required to implement'
needed management, reform shall proceed in a
planned and deliberate manner. - Computer systems:.
shall not be purchased, prematurely to obligate
funds.
Grants and other forms of Federal assistance are
subjected to rigorous review, meet current
priorities, are: funded only in justified amounts,
and are- not made just to' keep funds from lapsing
or to keep them from being reported . - as
a way that assures. compliance with this guidance.
Contracting officers, program managers, and policy officials
who are responsible for initiating or reviewing procurement
and grant actions should carry out their responsibilities in,
We also ask that Inspectors General pay particular attention
to year-end spending. Inspector General personnel,-
auditors, and legal counsel should consider noncompliance
with the aforementioned requirements to be an indication of
waste.
You should . ask your Inspector General to conduct an
assessment of the validity of a sample. of the procurements
awarded in the fourth quarter. Such,..an approach.,has had a
valuable deterrent effect in the past. To the extent
allowed by law or regulations, disciplinary action should be
taken against executive officials and employees, who waste
public funds.
I count-on your full cooperation and personal attention to
save the taxpayers as much money as possible. in support of
the President's objectives.
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