REPORT OF FINANCE-BUDGET TASK GROUP FACT FINDING SURVEY OF LOGISTICS BUDGET AND FISCAL BRANCH 30 SEPTEMBER - 17 OCTOBER 1963

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04782A000200020010-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 12, 2016
• Document Release Date: June 27, 2002
• Sequence Number: 10
• Publication Date: October 17, 1963
• Content Type: REPORT

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CO FI NTIA L
REPORT OF FINANCE-BUDGET TASK GROUP FACT
FINDING SURVEY OF LOGISTICS BUDGET
AND FISCAL BRANCH 30 SEPTEMBER - 17 OCTOBER 1963
Organization and Personnel
a. The responsibilities and duties of the BF Branch of the Administra-
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tive Staff are distributed on a:functional basis. (Tab A is an
organizational chart of the Logistics BF Branch.)
There are seven employees in,the Branch each of whom is responsible
for one or more functions. The Chief, BF Branch, who reports di-
rectly to the Chief, Administrative Staff, supervises all functions
of the Branch giving direction and guidance on day-to-day activities.
He and, the Deputy Chief work, together in preparing all budget esti-
mates and in controlling and managing the Bulk Stock accounts and
other Branch activities. The Bulk Stock procurement accounting sys-
tem is handled by three fiscal accounting assistants. The senior
Fiscal Accounting Assistant of this unit is responsible for general
administration and control of the procurement allotments and con-
ducts liaison with Agency components on pertinent matters. Two
Fiscal Accounting Assistants are involved in the detailed mainte-
nance and reconciliation of vouchered and unvouchered Bulk Stock
accounts including appropriate files and supporting data. Two other
Fiscal Accounting Assistants are responsible for maintaining the
allotment control records for property authorization and confiden-
tial funds of the Office of Logistics. One Fiscal Accounting Assist-'
ant also does all the typing for the Office and the other assists in
preparation of budget schedules for the Office Estimates. (Tab B is
the OL/BF table of organization showing Incumbent and grade.)
C. The personnel strength of the Office of Logistics on 1 January 1964
.was= and the Office budget for Fiscal Year 1964 is 25X1
It is estimated the BF Branch devotes 20% of its total man-hours to
Budget matters, 75% to Fiscal matters, and 5% to General Administra-
tion. (Detailed statistics of matters influencing the workload of
the Office of Logistics BF Branch are provided in Tab C.)
2. Functions of BF Branch Other Than Those Relating to the Bulk Stock Accounts
The following narrative outlines the major functions performed by BF Branch
and incorporates the methods, procedures, and techniques used in perform-
ing the functions.
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a. Budget
(1) Formulation
The Chief, BF Branch prepares memorandum budget instructions
for the operating divisions based on data required by the
Budget Division for the Preliminary Estimate and Long Range
Projections, Financial Plan (Operating Budget),. and the
Office Estimates.
(a) Preliminary Estimate and Long Range Projection
Personal services costs estimates, including positions
and average employment, are computed by the BF Branch.
Office of Logistics Divisions and Staffs prepare in
rough draft a schedule by object class of all other require-
ments.
.(b) Financial Plan (Operating Budget
Material from the Divisions and Staffs is requested in
rough draft by activity, e.g., Depot, and by 25X1
object class. This includes an explanation of changes
for non-recurring and.new items and differences from the
Congressional Estimate. Personal services costs are com-
puted by the B' Branch.
(c); Office Estimates
As in other Budget exercises the BF Branch prepares the
detail of personal services which are turned over to the
Divisions for final typing. A separate justification for
each object class (200-900) setting forth details of re-
quirements and explanations of changes between the current
year and the past year and the budget year and the current
year is requested of each Division. Information is also
obtained from each Division, as applicable, on motor vehicle
requiremerits,eresearch and development, external research
projects, and `reimbursements and advances. All required
material is submitted in a single rough draft to the BF
Branch for. approval and returned for final typing by the
divisions. Narrative for all budget estimates is prepared
by the Chief, BF Branch. During the weeks of budget formu-
lation, the Director of Logistics is consulted and briefed
by the Chief,, BF Branch and his deputy on the levels of
funding for each Division and on the total impact of the
Budget on the Office of Logistics. After the BF Branch
has assembled Division estimates and the narrative, they
are presented to the Director of Logistics for final review
and approval.
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(d) Congressional Estimate
Bureau of the Budget hearings are attended by the Director
of Logistics, Chief of Support, and the Chief and, Deputy
Chief, BF Branch. Other participation in the Congression-
al Estimate exercise is nominal.
(2) Execution
Control of Logistics funds excludin the Bulk Stock Accounts
which are discussed separa a yt 1, is largely the responsibility
of the BF Branch. There are six allotment; one vouchered and,
one confidential each for the Office of Logistics in general,
Printing Services Division, and Logistics Property Procurement'.
Sixty-seven cost centers are maintained. Each month BF person-
nel prepare an "Analysis of Obligations" for the Director of
Logistics. This report summarizes obligations for personal
services and other. costs by component and major activity show-
ing funds budgeted, funds used, the unobligated balance, and
percentage of funds used compared with a straight line projec-
tion; Divisions and Staffs are provided a monthly report en-
titled "Status of Funds by Object Class and Property Author-
ization". This report summarizes for each cost center, vouchered
and confidential fund expenditures, obligations, unliquidated
obligations, and cumulative requisitions by object class. The
Chief, BF Branch briefs the Director of Logistics periodically
on the status of vouchered and confidential fund obligations and
property authorizations and encumbrances. Briefings are more
frequent when emergency fund situations arise. Divisions and
Staffs are required to limit spending to the amounts budgeted
for their respective activities. Adjustments in budgeted amounts
are coordinated by the Chief, BF Branch and his deputy who work
closely with Division Chiefs in reallocating funds when justified.
Any very large expenditure for goods and services is brought to
the attention of the Chief, BF Branch or his deputy who either
concurs or seeks advice from higher authority if he has any doubt
of the freed for the expenditure.
(1) Allotment Ledger
(a) Funds
A single allotment ledger for controlling confidential funds
and property requisitioning authority allotments is maintain-
ed by cost. center on obsolete Form 619, "Allotmnent'and
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Property Authorization Control Record". Funds obli-
gations for each cost center are recorded by object
c ass ization. With few exceptions, obligations are
recorded from specific documents which are filed in
an unliquidated document file. Liquidations are made
from data shown on the monthly expenditure run. In
instances,when the object classification of the expen-
diture differs from the object classification of obli-
gation, the original obligation is reversed and re-
entered to correspond with the data on the monthly
expenditure run. Liquidated documents are transferred
to a separate file. Payroll obligations are based on
prior month's experience and are liquidated and adjusted
on the basis of the monthly expenditure run. Office of
Logistics does not have any Cargo costs2 5X1
and travel costs are obli ated and liquidated in accordance.
with except that obligations are 25X1
iden e y.o ec c ass. The Office of Logistics
maintains seven Imprest Funds. Obligations are based on
expenditures reflected in accountings and are liquidated
from the monthly expenditure run. A rec p of obligations
by object classification is made by tapi such data from
current month's activity for each cost center for inclusion
in the monthly internal status of funds report.
(b) Property
Control of property requisitioning authorization is main-
tained in the allotment ledger on the same ledger sheets
used for recording funds activity., Upon receipt of a
Logistics requisition, Form 88, the BF Branch records 5X1
the requisition by voucher number and cost center in a to ,
certifies availability of property requisitioning author-
ization, and forwards the requisition
?
When the run-off copy of the requisition IN rece? ve
the,Depot, it is obligated on Form 619 and filed. These
obligations are adjusted and liquidated on the basis of
the monthly issues run.
(c)
A stock account budgeted for by the Office of Logistics
is maintained for items requisitioned for common use such
as furniture and office supplies for which no consumer
requisitioning authority is required. Control is effected
by the BF Branch through recording obligations from requi-
sitions or from purchase orders prepared by one of the.
three consumer centers 25X1
data in the monthly issues run.
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(d) Printing and Books and Publications
Printing obligations are entered on Form 619, "Allot-
!ment and Property Authorization Control Record", from
copies of printing requisitions, if received. Other-
wise obligations are entered from data on the Printing
Services Division monthly customers report. Obligations
are adjusted and liquidated on an item by item basis
from the PSD monthly customers report. The annual
requisitioning authority for books is encumbered in total
at the.beginning of the fiscal year. Liquidations are
effected from the monthly expenditure run. Book requi-
sitions are processed. through the Procurement Division.
(2) Advances and Advance Account Control
(a) Requests for Advances
Forms are prepared and typed by the requesting component.
BF Branch records are checked to determine that advancee's
aeccount is current, and that the request has been signed
by an authorized approving officer.
(b) Controls
A vouchered funds advance control record is.maintained
on an internal office form. Confidential fund advances
are controlled through the daily machine listing, one
copy of which is. retained by the BF Branch and one copy
sent to the advancee's division. A card file of confi-
dential funds advances is kept by due date, and advancees
whose accountings are due are notified by telephone.
The information on these cards is abstracted from the
daily machine listing.
(3) Travel
(a) Orders
Travel orders are prepared and typed by the Divisions.
The BF Branch prepares a folder for each traveler and
assigns the travel order and cost center numbers to'the
travel order. The Division Chief is requesting officer
for domestic travel, the Director of Logistics for foreign;
travel. The Director of Logistics or the Chief, Adminis-
trative Staff is the authorizing official for domestic
travel. The SSA-DDS is the authorizing official for.
foreign travel.
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(b) Accauntings
:Travel vouchers are prepared by the Divisions and sent to
the BF Branch where a preaudit is made prior to approval.`
Most Logistics travel is domestic and involves vouchered
funds which are obligated and liquidated by the. Fiscal
Division. The Director of Logistics and the Chief, Admin-
istrative Staff are approving officers for travel vouchers.
(4) Other Accountings ,
Imprest fund apcountings and project and operational expense
claims are prepared and typed priox to submission to the BF
Branch. Claims are not subjected 'to a detailed audit prior
to submission to Confidential Funds Division.
(~) Briefings
BF Branch ~ersonnel occasionally brief employees prior to
Individual employees- are briefed
on travel and accounting procedures on request.
c. General Administration
Correspondence initiated by the BF Branch consists almost entirely
of memoranda. The majority of budget material, memoranda, and
Internal status reports are typed by a Fiscal Accounting Assistant.
Filing of BF correspondence; funds, property and printing obligation
and liquidation documents; and activity reports is performed by a
Fiscal Accounting Assistant. Overtime is allotted to each division
on the basis of past year data.- Time and attendance clerks report
overtime worked each four weeks. The BF Branch monitors the divi-
sions' use of overtime and any overtime in excess of quota requires
approval of the Director of Logistics. ~A concise recap sheet of
~' the vouchered military payroll is prepared by the BF Branch.
Bulk Stock Procurement Allotment Control System
a.. General
Administration of the bulk stock procurement allotment control system
.was assigned to the Logistics ~BF Branch in January 1y61. Three Fiscal
Accounting Assistants, one grade GS-8 and two grade GS-5, are present-
ly responsible for maintaining the detailed records. One GS-5 Fiscal
q,c.counting Assistant is responsible for processing vouchered funds
transactions, the otHer, confidential funds transactions. There are
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nine Bulk Mock procurement allotments - faur vouchered Funds
and .five confidential funds. Twenty-one cost centers are
maintained. Cost centers are principally designed to segregate
procurement coats k~etween stock and non-stock and vouchered and 2 5X1
confidential funds within the five ma,~or materiel categories:
General, Communications, Ordnance and,Airbarne TSD and Medical.
Separate cost centers are a,1so maintained for
and Reimbursable items. The allotment control sy e
to accomplish two .basic purposes:
(1) To develop accurate azd timely ini'oimation that will enable
management to determine at any .time what portion of allotted
funds has been committed and obligated for procurement.:
(2) To fulfill the pffice.of Lagiatics' responsibility for main-
taming adequate obligation records in its role as allottee
for confidential funds. A monthly status of funds report is
prepared which summarizes by cost center cumulative obligations
to date and identifies open commitments on hand. Open commit-
ments essentially consist of requisitions on hand for which
obligating documents have not been received. Control of each '
allotment is effected by adding the cumulative obligations
and open commitments, and comparing this total with the amount.
allotted to determine the uncommitted balance available for
fur - lotments of funds are made to
the Depots for property procurement ?2 5X1.
Proc ling vouchered and confidential,
funds allotments are discussed separately below.
I
b. Vouchered Fund Allotments
Run-off copies of requisitions, Form 8~, reflecting procurement to
be effected from vouchered fund, are matched with obligating docu-
ments o~=h~rrel. The requisitions, with or without obligating docu-
ments'attached, are filed by voucher number and segregated by cost
center in a single active file. Upon receipt of the semi-monthly
-cost center machine run from Fiscal Division, all entries thereon
are individually cross checked to the requisitions and obligating ,
documents on Pile to determine the accuracy of the charges and
whether all procurement items on a requisition have been obligated:
Adjustment vouchers are prepared and transmitted to Fiscal Division
to correct erroneous charges. When all procurement items on a requi-
sition have been obligated the requisition and associated obligating
documents are pulled from the .active file and filed by voucher number
and cost center in a completed file. Cost center runs are received
from Fiscal Division approximately the 10th and 21st of each month.
To ;produce the month-end status report. of Bulk Stock funds on a timely
'basis, the cost center run received on the 21st of the month, which
covers Fiscal Division activity for approximately the first 11 work-
ing days of the month, is used. Cumulative obligations are abstracted
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from the cost center run and all obligating document? in the 'active
file, which have not yet appeared on~the run, are taped and added
to the cumulative obligations. Cumulative obligations are thus
up-dated to the end oP the mar~th and the revised figure is shown
an the status of funds report. Requisitions~in the active file
are re-examined, and all procurement items for which. obligating'
documents have not been received are taped and reflected as open
commitments on the status of funds report.'
c. .Confidential .'F'unds Allotments , ~~-~
'~`` .
(1) Run-off copies of requisitions, Fonm 88,~reflecting procurement
to be effected from confidential funds, are matched with ob1i-
gating documents~e- Line sterns an the requisition which
are covered by an obligating document are checked and the result
ing total is entered in red ink on the face of the requisition as
an unliquidated obligation. Any remaining line items on the
requisition for which an obligating document has not been re-
ceived are extended-and the total of such items is entered on
the face of the requisition in blue ink as an open commitment.
When it is apparent that multiple obligating documents, will be
involved, e.g., a contract, a "Detail Obligation Record" form
is used to post end adjust open commitments and obligations for
. that particular requisition. Requisitions for which no obligat-
ing documents have been received are filed in a single file by
voucher number and segregated by cost center. Requisitions that
are partially obligated and. those that are fully obligated but
not liquidated are filed in a single file by voucher number and
segregated by cast center. For easy identification a pink tab
is stapled on requisitions having open commitments. When the
monthly expenditure run is received from Finance Division, data
thereon is posted to each requisition (ar Detail Obligation
Record) in green ink. When the order is completed, obligations
are adjusted and the adjustment noted on the requisition. Ftii,lly
obligated and liquidated requisitions are refiled by voucher
number in a "completed" file segregated by procurement account.
Adjustment vouchers are prepared and forwarded to Finance Divi-
eion to correct errors appearing on the expenditure .run. There
are three sets of files maintained for Confidential funds allotted
for property procurement: Encumbrance, Unliquidated, and Liqui-
dated.
{2) At least twice a month, more often if the ~wark load is heavy or
money is tight, obligations are posted by a Burroughs Sensimatic
Accounting Machine. Obligations and obligation adjustments
are machine posted to cost center ledgers from the red Ink
entries on the requisitions ar Detail Obligation Record
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forms.- These postings are mods either individually or
grouped by like items. After reconciliation of the monthly
expenditure run, the expenditure totals 'by cast center are
transcribed to sumrp~ary cards by monthly amount and cumulative
totals and machine posted. to coat cent;er ledgers from the
.cards. Each group off' documents is taped as a check against
' the machine postings. At the end of each month, open commit-
- ments are computed by taping requisitions in the active files,
and machine posted to the coat center ledgers which in turn
are recapped an ledgers maintained by major material units
~ and by allotments. .(Tab E lists detailed statistics of mat-
ters influencing the workload involved in maintaining the
Bulk Stack allotment control records and Tab F is a chart
showing document flow to the BF Office relating to the Bulk
Stock allotment control retards.)
d.. Procedural Details and Problems
._.._--
(1)' Documents - The requisition,- Form S$, is of primary importance
in maintaining allotment control under the present system, as
it is the document from which encumbrances are recorded against
the applicable procurement cost center. Identification of all
requisitions requiring procurement action is necessary for
accurate determination. of funds committed to procurement. To
fulfill this need, the BF Branch instituted a system of logging
requisitions for Fiscal Year 1964.. The lag consists of pre-
numbered lists which coincide with the blocks of voucher num-
bers assigned far use by the different Logistics components
authorized to process and number requisitions.' Requisitions
received in the BF Branch are logged by placing code numbers
opposite the proper voucher number. The code numbers indicate
whether vouchered or confidential funds are involved, the type
of materiel by major category, and whether it is for stock
replenishment or direct purchase for a consumer. The log
facilitates efforts to locate requisitions within the BF Branch
and enables identification of a missing requisition when an
obligating document is received. The log does not permit
positive identification of all requisitions involving procure-
went action. Identification cannot be made since the processing
and numbering of requisitions is decentralized in the Office of .
Iagiatics~and at least six of the basic number blocks involve requi-
- ~ sitions that may cover either stock issues, procurement, or both.
(Tab D lists the blocks of voucher numbers assigned for use by
Logistics components.).
(~} Procurement at Overseas Locations
' Requisitions specifying procurement at overseas locations are
' recorded as encumbrances by the BF Branch. Obligations are ~
recorded on the basis of cables or dispatches requesting
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procurement-nation by an overseas installation, or at the
end of the Fiscal Year these encumbrances are converted to '
obligations if a receiving report is on file. Encumbrances
or obligations are maintained as open items pending receipt
of a T~A from the procuring installation. During FY 1963
the BF Branch encumbered approximately $50,000 covering 25
..requisitions involving overseas procurement. Since receiving
reports are on hand in eleven cases and only two TA's have
been received to date, it, appears that Bulk Stock Funds are
being encumbered and obligated far items which may have been_
cancelled or for which the expenditure has been recorded
against other funds.
(3) Re uisitions Diverted
Re uisitions involving procurement action are diverted to the
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Depots by Procurement Division and the
po if e consignee is located overseas and procure-
. men y a field depot is feasible and will save transportation
charges. In the case of diversions by Procurement Division,
the estimated cost has already been encumbered against procure-
- went funds by the BF Branch. The BF Branch maintains a list
of Procurement Division diversions which in the past, has
been compared with the accountings and
when identified as having been obligated by the Depot, the
encumbrance was dropped.
25X1
{~+~ Unliquidated Obligations
The BF Office reconciles unliquidated obligations with unliqui-
dated docume$~ts each month. The validity of unliquidated obli-
gations is reviewed only at the time the appropriation lapses
and a schedule of unliquidated obligations must be prepared in
connection with establishing the M Account balance. Such obli-
gations thus may remain on the books without review for a period
of two years after the close of~a fiscal year.. However, noti-
fication is provided to the BF Branch by Procurement Division
of any significant changes.
(5) Military Procurement
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made' to ascertain from the Department of Defense ~rhether
billings are contemplated for all items covered by the
obligations.. The I~gistics B~ Branch states that this is
in conformance with, Agency policy.
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CORRESPONDENCE -.OUT (Annual)
Dispatches
Cables
Memoranda
Total Correspondence - out
GENE[2/1L (Annual)
Briefings
Audit Report
Travel Orders (Principally Domestic)'
Time and Attendance Reports
Property Requisitions
Printing Requisitions
Book Requisitions
Overtime (Paid and Unpaid Hours)
REPORTS PREPARED BY LOGISTICS
--~._._
(CFD) Lia~ aP lapsed Appropriations.Obligations
(OL) Analysis. of Obligations, Director of Logistics
(OL) Status of Funds, Divisions and Staffs
(OL) Status of Property Procurement Funds
(BD) Preliminary Estimate
(BD Long Range Estimate
(BD~ Office Estimate
(B,D) Financial Plan (Operating Budget)
(BD8cCFD) . SOR ~ ~'
TAB C (ront'd. )
1
200
201
285
3,67
37~+
362
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