ALLOWANCE OF CLAIMS FOR OPERATIONAL LUNCHEONS FOR AGENCY PERSONNEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05538A000300040006-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: September 7, 2000
• Sequence Number: 6
• Publication Date: June 21, 1955
• Content Type: MF

Approved For Release
MEMORANDUM FOR: Chief, Finance Division
THROUGH : Comptroller
SUBJECT . Allowance of Claims for Operational
Luncheons for Agency Personnel
OGC HAS REVIEWED.
1. Your memorandum of 31 May 1955 requests an opinion on the
legality of a claim for the expense of an operational luncheon
attended solely by persons associated with this Agency.
2. This claim was submitted by a staff employee for reimbursement
for the expenses of an operational luncheon attended by himself,
one other staff employee, one contract agent and one covert associate.
Information received verbally from your office on 15 June inci`ated
that both the contract agent and the covert associate devote skbstan-
tially full time to the service of this Agency and that they receive
annual salaries comparable to those paid staff employees with similar
responsibilities. It is assumed that the luncheon was necessary for
operational reasons therefore if the circumstances comply with 25X1A
the requirements of "Reimbursement for Operational Expenditures",
the claim should be pain in accordance with the provisions of that regu-
lation.
3. In paragraph 3b(1) of _ it is provided that:
"Reimbursement will not be allowed for the expenses of enter-
taining officers or employees of the U. S. Government exclu-
sively. However, where such persons' presence is necessary or
incidential to the procurement of confidential information or
special services or for other operational reasons such expenses
may be allowed."
Paragraph 3b(2) provides that:
" ? .Each CIA employee in a TDY travel status and receiving
a per diem allowance who partakes of an entertainment meal shall
be required to deduct one-fifth of the authorized per diem rate for
the corresponding date on the voucher claiming reimbursement for
travel expenses. . . ."
The key question is whether or not the contract agent and covert associate
are officers and employees of the U. S. Government within the meaning of this
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regulation, for if they are the claim is for reimbursement for the expenses
of entertaining officers or employees of the U. S. Government exclusively
and must be disallowed. By definition in CFR 14.9, "A Contract Agent is
a person . . . who is not an employee . . ." Similarly in CFR 14.14 it is
said of a Covert Associate that, "He does not become an employee of CIA or
of the U. S. Government, nor does he acquire any of the benefits, financial
or otherwise, resulting from such employment solely by virtue of his associ-
ation with the Agency". It may be in the cases of the agent and associate
in question that they have some of the indicia of employees. The fact that
each devotes substantially full time to Agency activities and receives a
salary comparable to a staff employee holding similar responsibilities weighs
in favor of considering them as employees. However, the Agency has chosen
to put them under contracts which provide that they are not employees. This
has been done in order that certain advantages may accrue to the Agency, not
as an attempt to benefit the agent and associate. The Agency cannot now
determine that for some other purposes which will be of advantage to the
S. Govern-
Agency these individuals are to be considered employees of the U.
ment. For all purposes they are either employees or they are not. Since
the Agency has chosen to enter contracts with them providing that they are not
employees of the U. S. Government they must be considered to fall outside of
afornaall llepurposes.
the term "officers and employees of the U. S.Government"
Their status cannot be changed as it may happen to
Agency.
4. It may be that had this situation been considered inthe drafting of
25X1A the regulation would have been worded so as to prohibit this type
of c aim. The fact is that the regulation as it stands does not prohibit the
claim. If the intention of the Agency is to broaden the limitations of the
regulation so as to limit or bar claims for reimbursement for the expenses of
entertaining those associated with the Government other than as officers and
employees it must be done by changing the regulation. We cannot read into a
regulation a meaning which may have been intended, but which is not stated
in the regulation as written.
5. Since two of the persons attending the luncheon were not officers and
employees of the U. S. Government the claim for reimbursement is valid. For
the same reason the contract agent need not reduce his claim for per diem by
one-fifth for the day of the luncheon.
Office of General Counsel
Approved For Release 2001109/6 : CIA-RDP78-05538A000300040006-9