Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 21, 2016
Document Release Date: 
June 3, 2008
Sequence Number: 
Case Number: 
Publication Date: 
June 21, 1983
Content Type: 
PDF icon CIA-RDP85B01152R001001290006-1.pdf665.14 KB
Approved For Release 2008/06/03: CIA-RDP85B01152RO01001290006-1 Approved For Release 2008/06/03: CIA-RDP85B01152R001001290006- Approved For Release 2008/06/03: CIA-RDP85BO1152 R001001290006-1 E~ac~.s 8rglrlA ? 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. Approved For Release 2008/06/03: CIA-RDP85B01152RO01001290006-1 Approved For Release 2008/06/03: CIA-RDP85B01152R001001290006-1 ? 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,:_ 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. ? (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, 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. Approved For Release 2008/06/03: CIA-RDP85B01152R001001290006-1