DISCONTINUANCE OF CERTAIN BOOK SEGREGATIONS OF CASH ON FISCAL DIVISION RECORDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05548A000100050003-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: May 3, 2001
• Sequence Number: 3
• Publication Date: June 6, 1963
• Content Type: MF

Approved.For Release 2007/30 : CIA-RSV 46A000100050~01003-2
MEMORANDUM FOR: Deputy Comptroller
JUN 1963
Discontinuance of Certain Book Segregations of Cash
on Fiscal Division Records
REFERENCES
(a)
Memorandum for Chief, Technical Accounting Staff,
from Chief, Budget Division, dated 30 October 1961,
Subject: Discontinuance of Use of Accounts 21X6050
(b)
(c)
and 21X6875
Memorandum for the Record, dated 22 October 1956,
Subject: Special Deposit Accounts for Income Taxes
Withheld
Proposed Revision No. 10, Chart and Description of
Accounts, Fiscal Division
1. Reference (a) authorized the discontinuance of the use of certain
special deposit Treasury symbols used up to the time of that memorandum for
recording cash equal to Agency's liability for withholdings for U.S. Savings
Bonds and Trust Deposits, respectively. Reference (a) specified that gen-
eral ledger segregations of the respective categories of cash should continue
to be maintained. Accounts 113, Disbursing Funds - Deposit Funds (By Classes),
and 114, Disbursing Funds - Suspense, have been maintained to meet that require-
ment.
2. The requirement for the general ledger segregation was considered
25X1A9a by Mr. - to be necessary in keeping with an oral commitment by the Agency
in 1951 or 1952 to U.S. Treasury and GAO officials. We understand that the
cited commitment was made at the time Treasury appropriation accounts on a
fiscal year basis were discontinued in favor of a "no year" special deposit
account subject to the understanding that the Agency would continue to main-
tain book segregations of cash which would reflect the same balances as would
have been reflected in appropriation year accounts had they been continued.
3. Reference (b) indicates that the GAO and Treasury agreed to the
discontinuance of the use of a special deposit Treasury symbol account for
cash representing the liability for Federal Income Taxes withheld. Although
the memorandum makes no specific reference to the need for continuing a
general ledger segregation of such cash, the fact is no such segregation of
cash has been maintained.
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W
DET NNV~D'
4. Attention was focused on the fact situation discussed in paragraph
3, above, in a recent consideration of the basic reasons for maintenance of
accounts 113 and 114. It is our conclusion that the basic situations are
analogous insofar as accounting principles are concerned. Therefore, cur-
rent revision number 10 of the Chart and Description of Accounts, Fiscal
Division has been prepared to include provision for discontinuing the require-
ment for the separate accounts in order to provide an appropriate simpli-
fication of the Fiscal Division accounts.
25X1A9a 5. Mr. - concurrence in this proposal was requested inasmuch
as he had signed reference (a). Mr. - does not concur, however, as i125X1A9a
is his view that the commitment cited in paragraph 2 is applicable and that
it would be improper to discontinue the general ledger cash account segre-
gation. He was not aware of the existence of the fact situation discussed
in paragraph 3, above, and believes it too is at variance with the afore-
mentioned commitment.
6. We believe no meaningful purpose is served by the maintenance
of book segregations of cash to equal the liability for U.S. Savings Bonds
and Trust Deposits. The balance of these two accounts as of 28 February
1963 in comparison with the liability for Federal Income Taxes Withheld for
which no corresponding cash segregation was maintained were as follows:
U.S. Savings Bonds
Trust Deposits
Federal Taxes Withheld
It is apparent that the Federal Taxes Withheld item is considerably more
significant than either of the other two items.
7. Inasmuch as the specific subject matter of this memorandum, though
closely related, was not directly involved in the 1951-52 commitment, and
in view of the relatively lesser degree of substance involved, we believe
it is proper to resolve the question of the need for book segregations of
cash equal to the liability for U.S. Savings Bonds Deductions and Trust
Deposits on its merits without reference to the commitment cited in paragraph
2.
8. For your general information, it has been our intention for some
time to prepare a staff study on the more significant question of the need
for book segregations of cash for appropriation fiscal years since the real
benefit of such segregations has been under question for several years.
The most recent report of audit of the Fiscal Division recommended that this
Office consider discontinuance of the cash account segregations by fiscal
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year. We have not had the time as yet to prepare such a study but expect
to do so in the near future.
9. It is recommended that you approve reference (c) which includes
provision for discontinuing accounts 113 and 114.
Chief, Technical Accounting Staff
3
Approved For Release 2001/07/30 : CIA-RDP78-055548A000100050003-2
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