ACCOUNT CLASSIFICATION FOR DIVIDENDS RECEIVED BY GOVERNMENT EMPLOYEES' HEALTH ASSOCIATION, INC.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05538A000100010008-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: August 11, 2000
• Sequence Number: 8
• Publication Date: February 27, 1958
• Content Type: MF

Approved For Release 2002/ -RDP78-05538A000100010008-2
CT
- a
driA.,1
Director of Personnel
' 1358
Account Classification for Dividends
'Received by Government Employees'
Health Association, Inc.
a. Report of Audit of Government
Xmployees Health Association,
Inc., 1 June 1956 - 31 May 1987.
b. Memorandum from Deputy Comptroller
to your Office dated 23 October
1957, on the subject, "Review
of Bookkeeping System used by
Insurance Branch of BCD".
1. vie note that paragraph Od of feren. a. recommends
the establishment of a trust liability account for dividends
which have been received by GEHA from UBLIC.
2. The accounting treatment initially followed by GRA
conforms with the present provisions of the Chart of Accounts
which was revised to provide an accounting treatment for divi-
dends received subsequent to the date of the audit; the pro-
visions of the Chart of Accounts in this respect were not a-
vailable to the Audit Staff at the time of the audit. We
believe the present accounting treatment should remain un-
changed until such time as firm conclusions are reached as to
the ultimate disposition of dividends received. In the circum-
stances, however, we believe that a portion of Earned Surplus
equal to dividends received should be considered as "reserved"
even though no book entries are recorded to designate such a
reservation. We have informed the Audit Staff that at such
time as the Board of Directors of GINA adopts a policy for the
disposition of insurance dividends, as commented on in para-
graph 7 of reference a., the Technical Accounting Staff will
review the GEHA Chart of Accounts and make any formal changes
therein which may be required to provide an accounting treat-
ment for dividends consistent with such policy determination.
3. It will be appreciated, therefore, if you will in-
form this Office when the Board of Directors of GERA resolves
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the policy question
ceived in order that on
to any changes which may
Chart of Accounta.
dispoitjon of dividends
given at that time
necessary in the GERA
4. The Audit Staff is in agreement with this memorandum.
Distribution:
Orig. & 1
1
1
1
- Addressee
- Signer's copyir
- Audit Staff
- (Mr
- TAS Subject
- TAS Chrono
- TAS Reading
TASIRRL/mlc(7 February 1958)
E. R. SATJ
Comptro
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