DIRECT FUNDING CONCEPT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP93-00229R000100070004-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: March 26, 2003
• Sequence Number: 4
• Publication Date: December 28, 1973
• Content Type: MEMO

OPTIONAL FORM NO. 10 5010-107
MAY
GSA G1962EN.ED'T For lease 2003/05/28 : CIA-RDP93-002298 90100070004-4
UNITED STATES GOVERNMENT
Memorandum
TO Acting Chief, Supply Division, OL DATE: /7. -'Z4- 7 3
Chief, Supply Management Branch, SD/OL
SUBJECT: Direct Funding Concept
1. I have many questions about the Direct Funding
concept which seems to have the inside track with 12th
floor officials. It would appear to place Logistics into
a very minor role of materiel management if it were as-
signed responsibility only for items of common use; i.e.,
administrative supplies and equipment. Both in line items
and dollar value of inventory, this represents a pretty
small share of the pot.
2. I also wonder how Logistics would administer the
issue of such items as electric typewriters. ince the
using component no longer would be responsible for budget-
ing for such an item, the constraint to order indiscriminately
would be absent, and Logistics would issue on basis of avail-
ability only. It certainly can't police such request
3. I also have questions concerning the effect of
Direct Funding on our GIMS II program. Will we be able to
salvage any portion of ICS? Glenn is pessimistic about this
possibility and feels we would have to start from scratch.
I must admit I don't know the answer but believe we should
pursue thoroughly before adopting a new system.
4. The recommendations of the PPA/PRA study group con-
tain many generalities which should be investigated. Examples
are:
Direct Funding (paragraph 4) - "initial property
accountability will be picked up by the requisitioning
component in accordance with current FPA in-use ac-
countability procedures." To the best of my knowledge,
with exception of account 6805, in-use proper account-
ability has disappeared. Type II activities account for
Approved For Release 2003/05/28 : CIA-RDP93-00229R000100070004-4
Buy U.S. Savings Bonds Regularly on the Payroll Savings Plan
 Approved For gelease 2003/05/28 : CIA-RDP93-002298090100070004-4
SUBJECT: Direct Funding Concept
a dollar value of property, and line item identi-
fication is lost. An example of the problem in
this system is total inability to identify quantity
or dollar value of non-expendable property in use.
We can, after research, develop how many of an item
were issued, and who received them. But we have no
way of knowing what happened after the issue. To
ascertain the number of microform devices in use in
the Agency required that each component, both over-
seas and at Headquarters, conduct a physical inventory
and report such information back. This certainly is
not indicative of a sound, responsive inventory system.
5. The need to retain information on in-use property has
been proved by TSIPS program and by OC's similar program for
its high priced, sensitive items. The number of such programs
will probably increase, and the Agency's property management
system deteriorate to the early 1950's era when OSO, OC, and
OPC each had its own separate and distinct supply systems.
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Approved For Release 2003/05/28 : CIA-RDP93-00229R000100070004-4