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Document Number (FOIA) /ESDN (CREST): 
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Document Creation Date: 
December 9, 2016
Document Release Date: 
September 15, 2000
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Publication Date: 
September 20, 1976
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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 Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 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). Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 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 Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 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 Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 488 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 5-29-75 Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 Ap rived Fir Release 2001/08/j~ ' gIA2-RRP7tl9-0g498j0001t00030010-6 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 Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 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 Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 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. Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 492 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 5-29_75 Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 494 WithholdiwAk?pply t s, Fjrpelease 2001/08/27 :4%A- lUQQ QQQ,M-849010-6 - - 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. FINANCIAL MANAGEMENT Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 A9 6.3. Issuance of CAppravaT ~P lee 12001/08/27: CIA-RDP79-00498A000100030010-6 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 T L:VIi 1211 5-29-75 3 Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6 Next 3 Page(s) In Document Exempt Approved For Release 2001/08/27 : CIA-RDP79-00498A000100030010-6