WAIVER OF PROVISION OF (Sanitized) TRAVEL ON AMERICAN AIRLINES FOR EMPLOYEES (Sanitized) PRIOR TO JUNE 1975

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00498A000100030010-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 11
• Document Creation Date: December 9, 2016
• Document Release Date: September 15, 2000
• Sequence Number: 10
• Publication Date: September 20, 1976
• Content Type: MF

ROUTING AND RECORD SHEET
SUBJECT: (Optional)
Waiver of Provision
STATINTL for Employees _
Director of Finance
1212 Key Bldg.
TO: (Officer designation, room number, and DATE
building)
RECEIVED FORWARDED
NCLkSSI t'l E INTERNAL
Approv od5~elN? 2001/08/27 : CIA-RE09-Qff ,
Deputy Director for
Administration 7-D-26 Hqs
FORM
3-62
COMMENTS (Number each comment to show from whom
to whom. Draw a line across column after each comment.)
ail 0 USE PREVIOUS ^ SECRET ^ CONFIDENTIAL ^ USE ONLY
iravei on American Hiriines
Prior to June 197 uft
EXTENSION NO.
^ UNCLASSIFIED
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 Approved For Release 2001/0 /1", 'CfA=RDP;T9 00498A0
MIfi1ORANDUM FOR:
Deputy Director for Administration
FROM :
SUBJECT :
Thomas B. Yale
Director of Finance
Waiver of Provision of Travel on American
25X1A
Airlines for Employees Prior to
25X1A
June 1975
REFERENCE :
(a) Memo for DDA fm D/F dtd 27 Apr 76, Same Subj
(b) OGC 76-4498 dtd 16 Aug 76, Same General Subj
1. Action Requested: It is requested that you approve the recom-
mendationin Para ra 3 to fore o the effort to identify possible claims
against employees who may have used foreign airlines 25X1A
for R&R travel prior to 17 June in circumstances where re-
quired use of American Airlines.
2. Basic Data:
a. Reference (a) detailed the circumstances under which there
may have been unauthorized use of forei airlines for RER travel prior
to 17 June 1975 by employees and recommended your 25X1A
approval for waiver of the regulatory provision that required use of
American airlines.
b. Reference (b) took legal exception to the above recommendation
but suggested we examine standards promulgated by the Attorney General
and the Comptroller General (quoted in 4 FAM 488, Tab A attached) for
settlement of claims under the provisions of the Federal Claims and
Collection Act of 1966.
c. Under those standards, the head of an Agency may terminate
collection action and consider a case closed for several reason,
including:
(1) when it appears that the cost of collection action will
exceed the amount to be recovered (4 FAM 488.1-4c) and
(2) the evidence necessary to prove the claim cannot
be produced (4 FAM 488.1.4e).
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 Approved For Releas6Oif 1" . t
z ,dIA RDP79-00498A000100030010-6
SUBJECT: Waiver of Provision of Travel on American Airlines 25X1A
for Employees Prior to June 1975 25X1A
d. An effort to identify all potential claims would require
research of all RTR travel between October 1963
when Agency foreign airline po icy was first published and June
1975 (when Station policy was corrected). The research at the
minimum would require (a) identification of each R&R trip to an
alternate R1R destination, (b) examination of the travel voucher
to determine if foreign airlines were used (c) examination of an
American airline guide for the time period of the travel to
determine the extent to which American airlines could have been
used and (d) analysis to determine the pecuniary liability if
American airlines should have been used in the circumstances of
the particular trip. Collection efforts would require the develop-
ment of a full explanation for the basis of each claim and
correspondence with the individual; in cases where the employee
is no longer with the Agency it would be necessary to determine
current status and location before deciding upon and commencing
collection effort.
e. It seems apparent that the direct and indirect costs of
the cumulative efforts necessary to pursue the above research and
collection program would. exceed potential recoveries. We have
no estimate of the number of potential claims that might surface
but it is estimated the maximum claim per traveler would be $500
(the current cost of
There is also a good possibility we would lack all of the evidence
necessary in some cases to prove claims. In these circumstances
it seems consistent with the intent of the Tab A guidelines to
forego the efforts that would be required to effect collection of
the potential claims described above.
f. DIRLINT 11424, copy attached as Tab B, provided guidance
on the resolution of individual cases involving travel co,-rumenced
prior to 17 June 1975. It is believed only equitable that the
Station be authorized to settle these cases in accordance with
the prior Station policy if you approve termination of further
collection effort on identification of possible claims.
3. It is recommended that you approve termination of further
collection effort on possible claims including those cited in Tab B
that the Government may have for the use of foreign airlines which
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 Approved For Release 2001/08/27: CIA-RDP79-00498A000100030010-6
SUBJECT: Waiver of Provision of - Travel on American Airlines 25X1A
for Employees Prior to June 197S 25X1A
was in accordance with Station policy prior to 17 June 1975, but in
violation of because it is expected (a) the aggregate cost
of identification and collection would exceed aggregate recoveries
and (b) full documentation to prove claims may not be available in
cases.
Thomas B. Yale
APPROVED: /s/ John F. Blake
Deputy Director for
Administration
Deputy Director for
Administration
Distribution:
0 ~ 2 - Add. (Orig to be returned)
1 - D/F wo/a
1 - DD/PFS w/a
I - a&c
2 0 SEP 1976
25X1A
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 488 Claims k,Applr%rordRelease 2001/08/27
the United ;,tales
488.1 General Authority
Under the provi.dons of the Federal Claims
Collection Act of 1966 (Public Law 89-508
dated July 19, 1966; 31 U. S. C. 952), the
Department is required to attempt collection
of all claims of the United States for money
or property arising out of the activities of the
Department. The Act also gives the Depart-
ment authority to compromise, suspend, or
terminate collection action on any such claim
due the Department, not in excess of $20, 000,
exclusive of interest. The following general
criteria, as defined in the joint regulations of
the General Accounting Office and the Depart-
ment of Justice, pertaining to Federal Claims
Collection Standards, are established for
implementation of one or more of the actions
referred to in this section.
488. 1-1 Collection Action
a. Negotiation With Debtor
Aggressive action, on a timely basis with
effective followup, is taken by the appropriate
post, bureau, or office upon all claims for
money or property arising out of the activities
of the Department. This normally consists
of three appropriate written demands upon the
debtor (at 30-day intervals) unless the re-
sponse to the first or second demand indicates
that further demand would be futile. Other
actions available include, but are not limited
to, collec"-i.on by offset (payroll or other),
personal interview with debtor, contact with
debtor's employing agency (if employed by the
Federal Government or the Military Establish-
ment), and consideration of the suspension or
revocation of licenses (in the case of vendors)
or other privily ;es heretofore granted the
debtor.
b. Installs:- a ,ments
All claims, i .. the r with interest, should be
collected in 1,;11 ut one. lump sum whenever
possible. tl :,ever, if the debtor is finan-
cially unable, to pay the indebtedness in one
lump surn, cayment may be accepted in re-
gular installments. The size and frequency
of installment payments should bear a
reasonable relelion to the size of the debt,
the debtor':; ability to pay, and the liquidation
of the claim in not more than 3 years.
:l^I lAtROPTc940498A000100030040t.6 on ar,
unsecured claim will exceed $750, an attempt
should be made to obtain an executed confess-
judgme.lt note from the debtor. However,
installment payments will be accepted re-
gardless of whether or not the note is received.
488. 1-2 Compromise
a. If the collection actions described in sub-
section 488. 1-1 do not result in settlement
of the debt, a compromise may be sought by
the Department or the debtor if it is deter-
mined that the Department cannot collect the
full amount because of such factors as (1) the
debtor's inability to pay; (2) the refusal of
the debtor to pay the full amount and the De-
partment's inability to enforce collection in
full within a reasonable time; (3) there exists
a real doubt as to the Government's ability to
prove its case in court because of legal issues
involved or a bona fide dispute as to the facts;
or (4) the cc st of collecting the claim does
not justify the enforced collection of full
amount.
b. In determining the debtor's inability to pay,
the following factors are considered: (1) age
and health of the debtor; (2) present and po-
tential income; (3) inheritance prospects; and
(4) the possibility that assets have been con-
cealed or improperly transferred by the
debtor.
488.1-3 Suspension
Collection action --s suspended temporarily
if the debtor cannot be located after diligent
effort and there is reason to believe that
future collection action will be productive.
Periodic review action is taken on all such
cases placed in suspense, keeping-in mind
the administrative costs of such review-
against the amount to be collected.
Termination
Collection action is terminated and the case
considered closed when one or more of the
following conditions exist:
a. It becomes clear that the Department
cannot collect or enforce collection of any
significant amount from the debtor, taking
into consideration the judicial remedies
available and the debtor's future financial
prospects.
TL:F1N-211 FINANCIAL MANAGEMENT
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The debtor cani,ut e ocate an ie y to epar men
.b
.
applicable statute of lindtations has expired.
c. If appears that the cost of collection
action will exceed the arr.ount recovered.
d. The claim is legally without merit.
C. The evidence necesary to prove the claim
cannot be produced, or the necessary witnesses
are unavailable, and efforts to induce voluntary)
payment are unsuccessful.
488.2 Exceptions
a. The criteria and actions referred to
above do not apply to any claim wherein there
is (1) an indication of fraud; (2) misrepre-
sentation on the part of the debtor or any
other party having an interest in the claim;
(3) a tax claim; or (4) any claim based in
whole or in part on conduct in violation of
the antitrust laws,
b. Only the Comptroller General, or de-
signee, may effect compromise of a claim
that arises out of an exception made by the
GAG-iii the-a-c -ciunt of an accountable officer.
488.3 procedures To Be Observed in
Compromise, Suspension, or
Termination of Claims
488.3-1 By Posts
X a.* Claims not in excess of * $200* are
terminated if normal collection action has
proved futile and when such termination is
approved by the administrative officer. Ap-
proval for termination is obtained by use of
a-me, rnoFandnrn-irorn the budget and fiscal
officer *(or other :,fficer familiar with the
case)* to the administrative officer con-
_= -_: tainin (1_)_tlic .:;.r a of the debtor; (2) the
:ainoun_ t of tfie~ ~?la.i,n (3) a brief statement
of the efforts rn_?.-L' to effect collection; and
(4) the reasons ? ?, turther collection action
should not be ,;r:'!. '-il cn. A permanent re-
cord is mainteiruu - ,t the post of all such
terminated claim ..
*b. *; Claims ir: excess of :* $200* are
forwarded to the Department by UM, Sub-
ject: AFIN`, marked for the attention of
BF/FS, togethc. with complete documenta-
tion and the post' recommendation for set-
tlernent.
a. Claims not in excess of * $200 * ori-
ginating in the Department are terminated by
Financial Services (BF/FS/Revenue and Re-
ceipts) if normal collection action has proved
futile. A permanent record of all such cases
is maintained by that office.
b. Claims in excess of '*$200* are for-
warded to the Director of Financial Ser-
vices (BF/FS), or the Director's alternate,
together with complete documentation and
recommendation for settlement.
* 488.3-3 Departmental Review and Settlement
of Claims in excess of $200
a. Departmental review of claims originating
at a post or in the Department in excess of
$200 recommended for compromise, suspen-
sion, or termination is the responsibility of
the Director of Financial Services or the
Director's alternate. Claims are reviewed
to ascertain if recovery actions have been con-
sistent with provisions of title 4, chapter II,
of the Code of Federal Regulations; require-
ments prescribed in 4 GAO 55; and in accord-
ance with these regulations.
b. If the claim is against a contractor, the
Department of the Army should be notified to
include the contractor on the "List of Contrac
tors Indebted to the United States" (commonly
known as the Army Holdup List). The pro-
cedures for these referrals are contained as
a forward to the list, which is published
quarterly by the U.S. Army Finance and Ac-
counting Center, Indianapolis, Indiana 46249?.
Copies of the list are retained in BF/FS.
Notwithstanding such notification, the claims
should be pursued, including, where appro-
priate, referral to the General Accounting of-
It is the Department's policy not to refer
debts of less than $1, 000 for inclusion on
the list unless warranted by the facts and
circumstances.*
4FAM 438. 2 FINANCIAL MANAGEMENT TL:FIN-211
( ::) Revision 5-29-75
0
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 Claims are referred as soon as possible ac-
companied by the current address of the deb-
tor, reasonably current credit status (if
available), and a brief summary of the case
and action previously taken by the Department.
The file, records, and exhibits of the claims
so referred are retair.ed by the Department
of State.*
490 SUSPENSIONS AND DISALLOWANCES
BY GAO
491 Informal Inquiry
491. 1 Request for information
In auditing the monthly accounts of USDO's,
the GOA occasionally finds it necessary to
request additionall documentation or informa-
tion before ?)assing upon the validity of a trans-
action. When such an o_casion arises, the
GAO forwards a request for the data to the
Department of State on GAO Form 3010,
Informal Inquiry. If, however, the individual
circumstances indicate that the Informal -
Inquiry will not si_ffice, a letter is written
instead: The Department of State in turn for-
wards the original and two copies of the request
to the applicable post for reply.
491. 2 Reply to Informal Inquiry
The reply to the inquiry fr am GAO is inade by the USDO or the certifying officer. The
reply is made as soon L s possible after receipt.
In the event a reply cannot'be made withing 30
days, the approximate date that such reply
-will be made is noted on the courtesy copy of
the transmittal t:'iern-orandum (DSL-642) and
returned to the Department of State.
. The l-eply- is' :made on t Le rever e of the,C \-O
Form 3010. The officer v:h6 prepares the
reply signs the document in the appropriate
place, and forwards the original and one copy
to the Department of State, Attention: BF/FS.
The Department of State in turn forwards the
reply to the GAO. The. post does not mail the
reply directly to t;e GAO.
FINANCIAL MANAGEMENT
4 FAM 488. -1
( +~') Revision
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c. The Director of Financial Services (or
alternate), aft(. r. review in accordance with
regulations cited in paragraph a, may ap-
prove or disapprove recommended compro-
mise, suspension, or termination of claims
in excess of $200, but not exceeding $500.
Disapproved claims are for referral in ac-
cordance with section 488.4. The applicable
office, bureau, or post is notified of the
Director's action and must adjust their files
accordingly.
d. Claims in excess of $500, originating at
a post or in the Department, are delivered
by the Director of Financial Services (or
Alternate) to a committee for review and de-
termination of appropriate action. The com-
mittee is composed of (1) a representative
of the bureau or office concerned; (2) a rep-
resentative from the Office of the Legal
Adviser; and (3) a representative from Fi-
nancial Services. The Financial Services rep-
resentative is responsible for assembling the
committee when required, acting as chairman,
recording the actions of the committee, and
performing such other duties as may prove
necessary. In unusual cases where doubt
.exists ;vhether.collection action- should be com-
promised, suspended, or terminated, the ad-
vice of the General Accounting Office may be
sought by the committee. Also, at the dis-
cretion of the committee, the specific approval
of the Assistant Secretary for Administration
may be requested on any particular decision to
be taken. Any claim which. the committee de-
termines cannot be compromised, suspended,
or terminated in accordance with regulations
cited in paragraph a are for referral in ac-
cordance with section 488.4. The applicable
office, however, or post is notified of the corn-
inittee's action and must adjust its- files ac-
cordingly.:};:
Ittrferrals-of Unresolved Claims.-
Claims in s of $Z00, for which collec-
tion action I-?, en unsuccessful and for which
comprorni . , ,.i:;pense, or termination cannot
be approv,?w1 rite Director of Financial Ser-
vices (or al.t. n.rlc) for claims not in excess
of S500 or uy Lire committe for claims in ex-
cess of $500 are referred by the Director (or
alternate) to the General Accounting Office.
The procedures for these referrals are con-
tained in 4 GAO 5(', and the only exceptions
to these reporting requirements are those
listed in 4 GAO 56. 3, and 4 CFR 101.3 and
105.1.
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492 Notice of Except ion 492.3 Acknowledgment of Reply
492.1 Issuance of Exception
When, in the auditing of an agency's accounts,
an, exception is taken by the GAO involving
the liability of either a certifying officer or a
USDO, the reasons for it are stated on SF-
r F t' n and Re I The
On receipt of a reply to an exception which the
GAO finds to be satisfactory on the existing
record, a copy of the exception is forwarded
to the USI)O or certifying officer, through the
Department of State, bearing the notation
"Reply dated accepted as satisfactory."
1100, NNotice o x c p io p y.
.SF-1100 is forwarded to the Department of if the reply to an exception does riot present
State, which in turn forwards the original and satisfactory basis for the removal of the e:x-
two copies of the SF-1100 to the applicable ception, the GAO issues a revised exception
post for reply. clearly explaining why the reply was unsatis
factory.
492. 2 Reply to Notice of Exception
The reply to the SY- 1100, Notice of Exception,
from GAO is made by the USDO or the certi-
fying officer as soon as possible after receipt.
In the event a reply cannot be made within
30 days, the approxir~ia.te date that such reply
will be made is indicated on the courtesy copy
of the transmittal memorandum (DSL-642)
and returned to the Department of State.
In the event the_respective-certifying officer
or USDO is no longer at the post, the officer
currently certifying or disbursing at the post
furnishes, over officer's own signature, the
reply to the exception if it can be provided on
the basis of the information or data on file.
For use in the event it is necessary to issue
a revised exceytion, the successor provides
the responsible officer's current address in
successor's reply to the original notice of
exception. The of`iccr who replies `-o the
exception uses the "Reply to Exception" space
on the form. The officer signs in the space
reserved-for-the.-signature of the person -
making the reply, and executes the endorse-
ment on the bottom line. The space designated
"A rinainistraticely -Vtrified by" is left blank.
5he.o_riginal:.and duplicate of the SY=1100-are --
.
Attention: BF/J'
in turn forward--
post does not rna,l '
GAO-
1 lie Depart-lent of State
c p ly to the GAO. The
reply directly to the
493 Reporting Repayment
A questioned payment must be repaid as soon
as it is determined by the GAO that the amount
will not be allowed. The repayment is reported
on the GAO Form 3010, Informal Inquiry, or
the SF-1100, Notice of Exception and Reply,
as applicable. If the original of the pertinent
form has previously been sent to the Depart--
rnent of State, the repayment is reported on
a copy of the form or by OM. -
In the event the repayment is to be made in
installments, a statement as to the specific
arrangement with the debtor for liquidating
the entire indebtedness is included in the
repayment report.
The repayment report ' includes the name of
the USDO in whose accounts the collection is
recorded, the month in which the collection
was entered in the accounts, the' collection
document number, and the amount collected.
When the collection is in foreign currency,
the name of the foreign currency and the U. S.
dollar equivalent is furnished.
4 FA\t 492 FLNANCIAL MANAGEMENT TL:: '1ti-2 11
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 494
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- -
Due Per:;oinnel -- -
494.1 Report to the Department
A USI)O or certifying officer may receive
a statement of account indicating that the
General Accounting Office has disallowed
credit or payment made to an employee of the
Department or another agency serviced by the
Department. The USDO or certifying officer
will, if no action by the Department is pending
on the payment in question, immediately in-
form the employee of the disallowance. A
report will be forwarded to the Department,
Attention: BF/I'S, indicating that the state-
ment of account has been received involving
an employee and that the employee has been
informed.
When the employee considers that undue
hardship would be imposed by requiring reirn-
bursement at once of the disallowance, the
employee should promptly submit to the De-
partment, Attention: BF/FS, an explanation
of the facts in detail together with a definite
proposal for settlement of the disallowance.
494.2 Action by the Department
On receipt of the report of the USDO or certi-
fying officer, and after consideration of the
proposal for settlement if one is promptly sub-
mitted by the employee, BF/FS may direct
either-thaC Elie amount of the disallowance be .
refunded immediately or that satisfactory
arrangements be made with the Department
for settlement through the acceptance of partial
payments. It must be clearly understood that,
if arrangement for making deferred payments
are not approve-d, it will be necessary to with-
hold conipen:;,ttion until full reimbursement
has beenaccuiupb shed.
494.3.- Pitvrrtl.l Deductions
Deduction:- yi alts representing refunds
in whole er i rt on account of disallowances
are effect: i ;.; : ._. orclance with the instructions
in section
TIC:FIN-Z11
5-29-75
When a Notice of Overcharge, GAO Form 100::,
is issued by the General Accounting Office
against foreign carriers, and domestic car-
riers having branches abroad, involving pay-
ments made in foreign currencies, a stamped
impression of instructions to the carrier and
the post is sho?.vn on the overcharge notice
requesting the carrier to make refund, in the
indicated currency, to the local post and to
present with such refund a copy of the GAO
Form 1003. The USDO or cashier receiving
the refund issues a form FS-459 as a receipt
and indorses the copy of the GAO Form 1003
to show the number and date of the FS-459.
This annotated copy of the GAO Form 1003
is forwarded to the Transportation Division,
General Accounting Office, Washington, D_ C.
20548. The appropriation or fund account to
be credited is shown on the GAO form 1003. -
496.1 Definition
The terra "settlement" in*connection with
public transactions and accounts is used to
describe administrative determination of the
amount due.
496. 2 Types of Accounts Subject to Settlement
It is the responsibility of the GAO to audit and
settle the accounts of the U. S_ Disbursing
Officers. Settlements are required to be made
also with certifying officers when there are
exceptions on the basis of which charges are
to be raised against such officers.
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Upon completion of the audit of an account,
a certificate of settlement is issued by the
GAO if there are exceptions outstanding which
have been raised against the U.S. Disbursing
Officer or the certifying officer as a result of
the audit. If there are no exceptions outstand-
ing, no certificate of settlement will be issued.
The settlement certificate for a U. S. Disbursing
Officer is GAO Form 143, Certificate of
Settlement of Account.
The settlement certificate for a certifying
officer is GAO Form 3011, Certificate of
Settlement.
The outstanding exceptions are itemized on
GAO Form 2087, Statement of Exceptions
Outstanding, and at.t:u. lied to GAO Form 143
or GAO Form 3011 as appropriate.
497-499 (Unassigned)
4 FA 1,,;f 496.3 FINANCIAL MANAGEMENT
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