PROPOSALS TO SIMPLIFY FPA PROCEDURES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05551A000100090027-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 12, 2016
• Document Release Date: November 29, 2001
• Sequence Number: 27
• Content Type: MISC

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Attachment A
PROPOSALS TO SIMPLIFY FPA PROCEDURES
1. Charge Selected Classes of Property Items to Cost Upon Acquisi-
tion.
At present all property acquired is carried in the "property on
hand" inventory accounts pending issuance, and non-expendable property
is carried in the "property in use" inventory accounts after issuance*
In order to simplify the FPA procedures, it is recommended that se-
lected classes of property be charged directly to cost upon acquisition
rather than be recorded in financial records as property on hand or in
use. The specific classes of property to be charged directly to cost
should be determined based upon a coordinated review by representatives
of the Office of Logistics and the Office of the Comptroller. Examples
of property which could be so handled might include (a) household
furnishings other than furniture and major items of equipment, (b) hand
tools, (c) cleaning supplies such as brooms, maps, etc., (d) gasoline,
oil and lubricants acquired for motor pool activities, (e) printed
forms and stationery acquired for administrative use, and (f) repair
parts and maintenance supplies. Adoption of this proposal would very
substantially reduce the workload involved in maintenance of the FPA
procedures without materially affecting their overall objectives and
would also result in the simplification of the property authorization
control procedures. Also, under this proposal the Logistics Office
could continue to require accountable officers to maintain stock
record cards showing quantities of the subject property items for
inventory purposes.
2. Limit Application of FPA Procedures to Property Accountability
Items.
The Station at present is including numerous types of
property under kVA procedures which are not intended to be covered;
e.g., periodicals, reference books, etc. It is recommended that the
intended scope of FPA procedures be clarified by a more specific
definition in the Handbook.
3. Eliminate Mills from Fixed Unit Prices.
It is recommended that mills be dropped from all fixed unit prices
to simplify procedures and eliminate "breakage" in balancing operations.
This will require modification of current Logistics regulations.
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4. Limit Price Adattments to Substantial Changes.
Discontinue the present practice of requiring fixed unit price
adjustments for small changes in unit prices; e.g., adjustment
should not be made unless the change would amount to 5 percent of
the fixed unit price or $50, whichever is less.
5. Establish Fixed Unit Prices Based Upon Local Acquisition Costs
Where Applicable.
Since approximately 90 percent of property utilized at the
Station is procured local4? fixed unit prices based upon
local procurement costs provide a more factual basis for maintain-
ing FPA and property authorization control procedures. It is
recommended, therefore, that regulatory issuances be clarified to
permit the use of local procurement costs as a basis for establishing
fixed unit prices. This proposal will simplify procedures by reducing
the number of fixed unit price changes.
6. Issuance of All Household Furnishings to Housing Officer as Re-
sponsible Officer.
To simplify both Accountable Officer and FPA procedures, consider
establishing the Housing Officer as the Responsible Officer for all
household furnishings and provide that issuances to individuals or safe
houses be covered by hand receipts held by this Responsible Officer.
This would require segregating household equipment items in separate
warehouse facilities under the control of the Housing Officer.
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Available
THROUGHOUT
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6/24/98
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G,d FoORIzeraelf MOW/06 : CIA
-RDP
or, Technical Aecean
, .
rcoptrell
,
P'rty Atcounttng p
bs?e,ieieo and found to t*-
preeetrib,04t Under
tee made by PaSe4persannel actually
? ?
the provadures lir* requiring *PPM'
in Finance and *Air days in Log/sties.
The Agency policy relative to the min of firancialakccourtiH
or property bag several major objectives which it ts believed oan bent be
ACcomplished throtigh integration in theagencelaanooUnting records of pro-
portitransa:tions at all locations where subetantial property la 000trol10C.
Tbese.objectivea include the development of firs bases for:
? a, retenclnation of current t4vtAZ>Cii. levels of property oi. lumxl 11'0,
in use az required for procurement p1a-111.ng a xi periodic budgetary aubt.dasto-3
to the Ltzreau of the Budget and the Conicrese .
b. Xaintenance of property authorisation colt:rola to arsure utili-? .
nation of Agency respooroes within approval actiOna,
- Identification of costs of ?Vendable property furniabed to .
Agency components and projects.
d. Internal ventral over Agency property L.. the custody of.acoount4h10
eux1 responsible officers at 'Headquarter:1 kr4 in the field, including the
facilitating of audlt operations.
. 3. To accomplish these objectives the 1.43tallation of Ma:it:lel 41.1c)0?Inttic
procedures for proPerty is required at all locations 'Ahem autstaTAial mmamtn
of Agency property are involved. Agency policy revoGnisee, however, that tram ?,
practical rtandpoint it Is not appropriate to prescribe such procedures for
locations where only rolattvely small property assets axe psintsined. Thus;
these procedures were first *Wed at ZI and subsequentlrat one overseas
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area Wears very Largo Agency property- Isventories are maintained. Fellow/0g
these inotallatione it ess dsterkined that the financial aceountleg ter
property Mould be sate effective in othor loosticom served by soosallo&
11%4:mount5ble" ?Moore ss rapidly as eircuestenees permit mimeo
a. lbroa137 the iodination at ex *mountable afrioar
locatlen depends open adtataatial property assets and,
b. All War Asom, property is required to be identirlden)
Heeingetere Mori bra gin prooethwies applicable to naetorebod*
property.
4. Aceordingly, upon receipt of an todiosticfl fron WS Station that
its three hems were situated to aommodete the finanoial acommtbmgprocedurem
for property the promdures were installed In the Lases. You have indicated
your objection to the ?antimonies of this procedure at this Beesbemoseof
the tem fequired by administrative personnel IA its mintenanoe as well as
the fact that in your opinion the Hese obtains no direct operational benefit
therefrom and from the twee standpoint the procedures are not necessary.to
provide subetantial control and accountability over property. This is
particularly signifioent from your viewpoint boaauns you contemplate the
possibility that the alma my be required at any tIoe to bustaih a dresti.:
curtailment in aim or at loset a cignifioaat 4ece6tralimation such as
occurred in 8A adjaaent area some time two.
, 5. A farther fleeter which has been advanced in objectioo to the finanoial
25X1A, azcounting proeeduroe for prop n
property at is the anall amount of property in
the accountable ?Mears custody end particulery the smell inventory of
property on bend. At 310 April this property amounted to approximately $225,00c.s.
of whioh $100,000.00 represented motor vehicles end only $24,000.00reprisectod
unissued inventory on band. The rate of local procurement of property for the
current flateal year is less than $4,000,00 per montb, imoluding expendable item
25X1A whit* are not carried as property itom at the exotot for ammunitic,.
oigerettes, liquor and eerie.
6.
This entire qmsetion together with the finiiimpriftveloped in thet.fort -
25X1A stud,' of this Problem eti I will be the subject of further consideration at
Headquarters upon my return. ?articular attention will be directed to the
OOmetion otadminietratIve effort required to be applied in the light of the
operational requirements, of this an other and the poselbilitY olLLEGIB
drastic curtailment of total eteffiAg at these bases.
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nieffnlanntle
2 - COB,
- 006,
3. Comptroller, gea
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1J E;;;;;;;;;) 25 X 111
2.
vas recently
to establish 1'
We are nor* cow
aware, the procedure or f
ted for your min account in
property accountability for
ned, however, with the great desire
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ountabilit ??A
Dow px.oposed LOA
Of accounts .
serge
your three PraPertqacCousts into one central, account to be run by thel I 25X1
Bose. As I bolleve ycu. are aware, it was their intent to have this aecomplls
during the forthcoming mr trip of Chief, Technical Accountleg Btaff, Office of
the demgrtroiler. We were succesefUl in stalling this on the basis that it
would be premature at this time, pending receipt of your position mai a deter-
of what increased work load, if sny, veal& be. assumed by tie l 25X1
use. Our concern is fUrther beigiatommed by the proposal to establish the
cedure of propertyauteorimation at the field level. It is smiomstic that With
each now procedure there is an increased amount of work to be performed. While
the amount of verb:which needs to be done for agr new procedure might be minimal,
we are now lcisking. at these proposals in their totality, i.e., what will your
increased over-all work load be if all three procedures were in operation?
3. tile 41 of these procedures any be desirable, we have fended off
of the latter two until you have had an opportuoity pereonallX
ourself with the increased work load factor. We urge you, if
cessary, to view this preblem in the same light. If you feel
these new proposals within /our 'resent administrative person-
then we suggest you judge the proposal, on their merits and
tion accordingly. If the adoption of these proposals, however,
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(Authenticating Officer)
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Mort secom-ittae Itriter at sm.
NstantW Irby t
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