REIMBURSEMENT OF MEAL AND COFFEE EXPENSES AT OFFICIAL MEETINGS ATTENDED SOLELY BY U. S. GOVERNMENT EMPLOYEES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00498A000100150080-6
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 19
• Document Creation Date: December 9, 2016
• Document Release Date: September 8, 2000
• Sequence Number: 80
• Publication Date: March 25, 1975
• Content Type: MF

Approved For W~'f lYllgf 71 4~EC4~OP 4$14Yd001001500
*OGC Has Reviewed*
25 March 1975
MEMORANDUM FOR: Director of Central Intelligence
SUBJECT . Reimbursement of Meal and Coffee
Expenses at Official Meetings Attended
Solely by U. S. Government Employees
REFERENCE . Memo from DCI to multiple adses., dtd
11 Jan 74; Subj: Entertainment iri the
Executive Dining Room
1. A review of applicable legal and regulatory constraints makes
it advisable to raise once again the question of the expenditure of govern-
ment funds for the purpose of purchasing meals and coffee at meetings or
luncheons attended solely by U. S. Government employees.
2. Prior to 11 January 1974, the policy governing the expenditure
of government funds for the official entertainment of employees of the
U. S. Government exclusively required approval by the Director or a
single senior officer designated by him. Historically, policy state-
ments governing official entertainment of U. S. Government employees
have dealt primarily with the delegation of authority to approve such
expenditures and until the 11 January policy statement, none addressed
the issue of the fundamental legality of such expenditures in the first
place. However, the 11 January policy statement (paragraph 2) contains
an antithesis which creates problems for officers charged with certifying
expenditures as being in accordance with the law.
3. The 11 January 1974 memorandum (reference) states that an
exception to the policy forbidding the use of official funds for the
purpose of "entertaining" government employees "may be made only in the
most unusual and special circumstances" and that "such an exception shall
require the advance approval of the Director." The problem with this
policy--according to the General Counsel--is that the Director does not
have the authority to approve such an expenditure unless the expenditure
is "to support Agency activities of a confidential, extraordinary or
emergency nature." "Confidential funds should not be used for the
solution of administrative problems unless security or operational
ADMINISTRATIVE -- INTERNAL USE ONLY
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 ADMINISTRATIVE - INTERNAL USE ONLY
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-2-
factors preclude the use of vouchered funds" A procedural
requirement of prior approval is not really germane and cannot establish
legitimacy. Exceptions in the absence of an operative intelligence
requirement cannot be authorized even by the DCI.
4. Authority for such expenditures could be granted via the
appropriation route and the Comptroller is including in the FY 1976
budget to the Congress, a statement which, if unchanged, will authorize
expenditures of "funds for the Office of the Director support activities
under his direct control and provide not more than $16 thousand for
official reception and representation expenses including the expenses
of cooperating U. S. Government officials and private U. S. citizens
at meetings concerned with the official functions of the Central
Intelligence Agency." (Att. C) This language will not legitimatize
the expenditure of government funds for such routine things as the
purchase of coffee for the Director's morning meetings or other meetings
attended solely by Agency employees.
5. In view of the -Fact that the General Counsel is explicit in his
opinion that such expenditures are illegal, I believe it is necessary to
revise paragraph 2 of the 11 January 1974 memorandum deleting any
reference to exceptions in cases involving meals or luncheons attended
only by U. S. Government employees.
6. It is recommended that you issue the attached memorandum
announcing a change in policy concerning exceptions and suggesting
that officials who feel they can justify the use of government funds
for meals and refreshments for official activities seek authorization
through the budget process in future years.
Attachments:
a. Reference
b. Copy of
c. Copy of to ement to be included
in FY 76 Congressional Budget
d. Copies of GAO Decisions B-163764,
B-159633, B-168774
e. Memo for Deputy Directors & Independent
Office Heads from DCI; Subject: Official
Entertainment for DCI Signature
ADMINiST A a IVc iPV T i r` tir L U 11=. ONLY
STATINTL
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11 January 1974.
MEMORANDUM FOR: See Distribution
SUBJECT : Official Entertainment in the, Executive
Dining Room
REFERENCES
(a) Memo dtd 29 June 1963 to ExDir from DDCI,
Subject: Delegation of Authority
(b) Memo dtd 10 April 1967 to Deputy Directors
and Heads of :independent Offices from
ExDir, Subject: Official Entertainment
in the Executive Dining Room
(c) Memo dtd 29 July 1971 to Deputy Director
for Plans from ExDir, Subject: Official
Entertainment in the Agency Dining Room
(d) Memo dtd 17 March 1972 to Deputy Directors
from ExDir, Subject: Official Entertain-
ment in the Executive Dining Room
(e) Form 725 dtd 5 September 1973 to Director STATINTL
of Finance from DCI, Subject: Delegation
of Authority and Headquarters Notice
dtd 24 July 1973
STATINTL
1. For some time the basic policy of the Agency has been
that expenses incurred in the official entertainment of officers or employees
of the U. S. Government exclusively required approval by the Director or by
a single senior official designated by him. Per reference (a) this authority
was delegated to the Executive Director. Reference (b) stipulates that offi-
cial entertainment in the Executive Dining Room must be hosted personally
by a Deputy Director or Head of an Independent Office, or by his deputy when
directed. Reference (c) disapproved a request to delegate to Division and
Staff Chiefs the authority of a Deputy Director to submit vouchers for official
entertainment. Reference (d) permitted Deputy Directors to delegate to a
MCA-73
.. L.
J .~
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single senior officer their authority to submit such vouchers. Reference.
(e) established the Executive Secretariat, appointed, the Executive Secre-
tary, and delegated, to the Executive Secretary the Director's authority to
approve the payment of these expenses.
2. During the past few months Agency policy concerning the official
entertainment of officers and employees of the U. S. Government. has been
under review. The Comptroller General's position is that official funds
should not be used for the entertainment of Government officials unless
specific authority for that purpose has been given by the Congress. There-
fore, it has-been concluded that the Agency shall no longer use official funds
to pay for the expenses incurred in the entertainment of officers or em-
ployees of the U. S. Government fin the Executive Dining Room In addition
to those persons included within the definition of "officers and employees"
in Title 5 of the U. S. Code, this phrase includes staff employees, staff
agents, detailed military and civilian personnel, contract employees, and
career agents of this Agency. IAn exception to this policy may be made,
only in the most unusual and special circumstances. Such an exception
shall require the advance approval of the Director
3. The Director's Imprest Fund may be used to pay the full cost of
a function, including the meals served Agency personnel, when the purpose
is to entertain a foreign official or a non-U. S. Government personality.
Deputy Directors may delegate their authority to submit vouchers for these
functions to a single senior officer. Since the burden is a limited one,
Heads of Independent Offices are expected to continue personally to retain
this authority. The Executive Secretary has been designated as the single
senior official who may authorize the payment or reimbursement of these
expenses.
4. It shall no longer be necessary that official entertainment in the
Executive Dining Room be hosted personally by either a Deputy Director
or his Associate. Any other senior official designated by a Deputy Director
or a Head of an Independent Office may act as host.
5. The General Counsel has been asked to amend the appropriate
Headquarters Regulation to reflect the change of policy and delegations
set forth above. The policy and delegations referenced in this memoran-
dum are hereby rescinded.
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Distribution:
DDCI
DDS&T
DDI
DDM&S
DDO
D/DCI/IC
D/DCI/NIO
General Counsel
Legislative Counsel
Inspector General
Comptroller
Director of Finance
USIB/S
Assistant to the Director
Executive Secretary
AO/DCI
Executive Dining Room Office
/ER (Original)
MCA-73 File
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1. GENERAL
a. APPLICABILITY. This regulation applies to the financial administration of
both vouchered and confidential funds, except where a subparagraph spe-
cifically limits applicability to one type of funds.
b. AUTHORITY. The Central Intelligence Agency Act of 1949, as amended, pro-
vides in part as follows:
(1) "Section 8(a). Notwithstanding any other provisions of law, sums made
available to the Agency by appropriation or otherwise may be expended for,
purposes necessary to carry out its functions...:'
.(2) "Section 8(b). The sums made available. to the Agency may be expended
without* regard to the provisions of law and regulations relating, to the
expenditure of Government funds; and for objects of a confidential, ex-
traordinary, or emergency nature, such expenditures to be accounted for
solely on the certificate of the Director and every such certificate shall
be deemed a sufficient voucher for the amount therein certified."
e. POLICY. It Is Agency policy to limit the exercise of the special authorities
provided in the CIA Act to those activities which in the national interest re-
quire security protection. In line with this general policy the following prin..'
ciples are set forth for guidance of Agency personnel involved in the obligation,,
approval, and expenditure of Agency funds:
(1) Vouchered funds (those which can be accounted for and audited in con-
formance with the laws that apply to other Government agencies and with
standard Government regulations and procedures) will be used if opera-
tions and operational security do not require the use of confidential funds.
(2) Confidential funds (those which are accounted for outside the Agency
solely by certification of the Director) will be used to support Agency ac-
tivities of a confidential, extraordinary, or emergency nature. Normal
provisions of statutes for the obligation and expenditure of Government
funds shall be followed by the Agency in its expenditure of confidential
funds except when determined inappropriate In view of the security or the
extraordinary or eerg.ency nature of our activities. Expenditures shall
be accounted for in a manner compatible with the maintenance of rea-
sonable security for Agency operations and the protection of the sources
(3) Confidential funds will not be used for the solution of administrative
problems u^'~ :Iles ooperations or security factors peculiar to the Agency re-
quire the expenditures and preclude the use of vouchered funds.
(4) Confidential funds shall not be used to give employees of the Agency a
preferential position of prestige or financial benefit in comparison to other
Government employees, and special operational expenditures shall not be
allowed which would result in a direct or indirect personal gain or benefit
to an Agency employee unless they are for an undertaking which is essen-
tial to the conduct of an approved activity and are of such a nature-that
the expense would not have been incurred by the employee except in,sup-
port of the official activity involved.
d. RESPONSIBILITIES
(1) THE DIRECTOR. The Director of Central Intelligence is responsible for
the proper expenditure of Agency funds. To fulfill this responsibility the
Director:
CBO'J i
E..I.. /.... w.e t:`..rv k-, .4('1 t.~.a ~ nlacsl :?rc(m e:nt
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 THE CCMPTRDLL_rER GENEPIAL
7P &A-f [ 7 3-0WA40-60ROI 156b'r E
FILE. B-159633 DATE: May 20, 1.9 7 4
MATTER OF:
Rental of building in District of Colza.bia
send payment of training. coursa e.- eases
1. Prohibition in 40 U.S.C. 34 asst a=c-,st-'.on of
contract for rental of any building in District
of Colur is for -avernrcntal, cur. Hosea unless an
appro.riation thereror i.ea been made bears naykent
y Ja c~cn n e-recca~-ar;. d
of ~f~z?_ncA ~ xa!'fn r~,...?a. ..a absence
of dale-mice of ? e~~i i,_ azithori ty by
ictrator to official o; CS. who roved fo=a-
tion of rental agrae;nc.
Cov r :ant payment for coffoc -break itk ,; j.oti..
vided Coverm- nt. erio1oyees otarr_iciaating in a
ana errent seminar is not perrni.tted iaz lig
of genera! rule that in a ertce. of "Lori ^in-
legislation refresh tints furnished to Goavar=e-at
employees .y not be paid for with pprcr ri~ited
funds.
1 7: Tr. Carp E. Schroeder, an authorized eertifyizv nffi c ~r of i e
C= eral Services Adrinistraticn (GSA), ha.a reouestetd oats e?ecisjcn
cernirg the propriety of hips certifying for payment an invoi
from the 7.'hcxnias Circle Inn (: nada Inn) located in :iasiUa toe, D.C.
for either the total invoice arount of. $71.3.66 or the Lesser suzi
of $283.66 representing a deduction of the $500 charged for room
. The . services of the Inn were obtained for the purao: a of
bolding, a ccoriercia.lly offered training course titled "Problem
Solving aud Decision
the weak of October 15, 1973, through October 19, 173... .':n official
of the Adr aistrntivv Serv ces Division of the Aut .aced Data and
? eleco==icatlons Service, GSA, raada the n2c!'ssarsi Et'i1^ ?^""i_" i
trlth the Inn includi,-s; approval of tie :3100 roes day roou re-ata -
Pil ,y
charge. .~.itc t ~5.iatGi:att?(.1 ?.?1t2 and it_luCO......:,aa2lG.t_l'J:IS :i2L''IiC?3 ~;i-w-T?!:~!
i.._ss described in lir. Scarot2(L-ar'E3 s=-rascio:2 as `-tne bLx:fiti I
orgr,aization, in this case" is one or the n3.Vc operating. sere cc:,1
of G:,1 vitn ?'Ile resaonsib litJ' o a::riaioterin , autc-aaiic ^..~
!#zoce:.ising ~wl)7I rs and ca=Lnu :WaricL?J stirv~ 's for t ::' GGv:?oi :. ~
Tba cer-ttf-r- nr; officer's dub= revard!ug th $500 r ~~r?r_=ii
char e ar3 .~~ s ;; .. _ U O ax c;_._ rr ;;.; i union c~a: t,aine t in t.1 act c
34, w d;: i1
,11a-zc11 3, 131 7 , Scat. 37?..',, 40
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 D-159633
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"no contract shall be made for the rent of
any building, or part of any builrl.ng, to be used
the=_ District
for the purposes of the- Gover ne:nt in
if Columbia, until an appropriation therefor shall
have been made in terms by Conqres:=x, and this
clause shall be regarded as notice to all contrac-
tors or lessors of any such building or part of
any building."
Mr. Schroeder` s letter indicates his concern that "[since] the
appropriation len u"--e for t ha Automated Data and Teleco xaLicatiaas
Service, t: e benefiting organization in this case, does not specif-
ically provide for the rental of space the language of
40 U.S.C. 34 prohibits payment of the room rental char,-,e with
Coverxent funds.
Our Office has held that the prohibition expressed in 40 t7. S.Cz 34
against the execution of a contract for the rental. of any husi.l.d:i.ng In
the District of Colunbia for goverorental purposes until an appropria-
tion has been made is comprehensive and. a on.lies to all uses- whether
temporary or permanent. See 35 Cc--p. Gen. 314 (1955) and.. 43 Comp.
Can, 305 (1969) as well as cases cited in those decisions. However,
the Federal Property and Administrative Services Act of 1.949, 63 Stat.
377, as amended, authorizes GSA to enter into leasing agreements for
the benefit and accon odation of Federal. agencies. Specifically secc?-
Lion 210(h) (1) of that Act (40 U. S.C. 490(h) (1)) provides as follows
"The A miaistrator [of GSA) iii authorized to enter
into lease agreements with any person, copart .ershia,
corporation, or other public or private entity, :-;':licit
do not bind the Government for periods in excess of
twenty years for each such lease agreement, on such
terms as he deans to be in the interest of the United
States and necessary for the accosmodation of Federal.
agencies in buildings and i^provements which are in
existence or to be erected by the lessor for such
purposes and to assign and reassign space- therein to
Federal agencies."
.we consider the language of this section together vrith its legislative
history as authorizing the Administrator of GSA to lease buildings
and parts of hui1 dt:? =^ in the District of Col urbia (6cc page` 1, : I7 tse r
Pcport No. 1814, and pages 1, 2, and 3 of the Senate Report No., 111)6, 85th
! it is ou 'V1 ='- that i tt_ e k1 L?:'..,istra7.:oa: of
C toasaqueatly.
C,/+onr,ress).
CSA had authorized the formation or this rental agreement, the statu-
te y requirement of. 40 lt. S. C. 34, t. at no contract to rent. space in the District of Coli.:_.;in for gor2rme_mtal purposes be formed unless
W- thorized by a specific appropriation would have been matt: fte-...
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Although 40 U.S.C. 436(d) authori:::ea the Ad*riinistrator of GSA
to delegate the authority vested in him under the Federal Property
mtd Administrative Services Act of 1949 to any official in
the General Services Adminlstreti.on * * there is nothing in
the record to indicate that such authority had been delegated to
the official who entered into the cuestioncd lease arr.arueezreat.
Therefore, on the basis of the present record we us.t conclude
that the prohibition contained in 40 U.S.C. 34 bars pa7nent of
the $500 rocrz rental char ;e. In accarda ca with the fore :{nom.
the first cues-14-on presented in the certifying officer's sub fission
a-i to whether the invoice can prooerl-7 be certified for paynent
in total amount or. S7Eo.66 is ar,51-7cred in the negative.
The rer7air~in amount of $233.60 that is Included in this irnaalca
an expense of conducting this seminar nnpare-atly represents t1,-Le
combined cost of the daily coffee-refreshne:zt area that ware pro-
vided to meniner participants a rid the rental fepa eh::recd for t h;a
use of various instructional aids such as tape recorders and easels..
Although we do not question payment for the latter item, it has
generally been held that in the absence of aut-.oririn? lc--islation
the cost of refresh^';^ts furnished to C-overnnant employees : a- not
be paid with approoriated fu. ds. See 47 Co . Gen. 0 5a and
B-168774, Sentember 2, 1970, as s~re71. as ca..ses cited in those
decisions. Under the circtstances as reported in the certifying
officer's letter ue are not aware of any basis on which to authorize
payment for the coffee-breed items prcv?ded to rerriaar narti;ipanta..
Consequently, we must conclude on the basis Of the present record
thatJr- would be improper for the Corer rient to pay the 3168 coffee-
break expenses.
In accordance with the foregoiro, t:l,:e invoice may be properly
certified for payment In the --mint of $120.66 representing a deduction.
of $663 from the total invoice a=unt of $783.66.
(Signed) R. F. ULLER
ACTING Coptroller General
of the United States
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COMPTROLLER GENERAL OF THE UNLTF
WASHINGTON, D.C. 20541$
Di rC~.'
V~ f Of r_ :C ] 4 0;.2
Educa't 1C:j, and i"!- I'aTe
,cptember 21 1970
^.. , r 7 you ]^C:qu 3 4r. '' our C7 cisiO-s a3 to ii i~.'thcr
in k h 2 ~L o f '' 1? -y 0
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Y t h .., n 4Y~1to u.n':1 , ??i, 7..-^...1'?:~-'yli :: d3
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so=) :;'~' .
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a lCCE'ibi O by 1:`J .dJn3 -f??,'.:a.`',io; s on ?G',' aza
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'i 1,1.3 CC'1,jtr"r2C G?-VC J + W f' ws `y
th3ir` e 7 with the co3u ltant s so u: _ th~a of the
could :x f !:? .'s pO ~3 ibl E,?.:i.d :C~ik?T'"'%y ~2;r"~T :l,? 'L:'].:,', ca oyee8
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'v'. a?valyf 2t' ' '6roluld have a`ocm t:T'~ hat awirv ardl.
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to st?Y T7 L:;1'P:l~: i u .'i t 1: e 3? t
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L? L-'-a :^,-:r:w
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 u-163774
Wo must'. hold,.. th --t
u .inca the ie [ s of t~1s v3 or of ?. t cC'1m my tit=
-c- tiy-cr ` t b consultants akin; part -? ~a "he r o :1'rren^-z am not
set out i:i >o, r i eY:;x'csa no op?nicn ~Cp~'~ r'Jin u!k -propri ty
l:?~ ::;j: 417'< vzle?ao:, 1C 1n~ and ne,3l.3 to ti L.IP
Its hi-..z Ltl'M c ' i?:~r-t= 'm
Sincerely. our,
ILF. LLER
Actina C? tn" of r sa zxal
of thw trait-e." O'G au
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In g Cor dit?crs o for -4-Sj-r 31) e ,C1& p'er'? a:x a 7.; aA a .si , uu xl
gene l a ca . M 34 1 {+"aMr_
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 Approved MM I F AIRtJPV9C6V~~8A000100150080-6
MEMORANDUM FOR: See Distribution
SUBJECT . Official Entertainment
REFERENCE : Memo from DCI to multiple adses.,
dtd 11 Jan 74; Subject: Entertainment
in the Executive Dining Room
1. Paragraph 2 of the reference memorandum is hereby amended
to remove the proviso providing for any exceptions to the prohibition
of using government funds for the purchase of meals or coffee at
meetings or functions attended solely by officers and employees of
the U.S.Government. Authority has been requested through the FY 76
budget process for a limited liberalization of this policy and, if
sustained in our appropriation, guidelines will be issued at that
ti me.
2. Any addressee who feels that a special situation exists
with respect to any activity of his directorate or office (e.g.,
interagency training seminars), should discuss with the Comptroller
the feasibility of seeking authorization for those expenditures
through the budget/appropriation process in the future.
W. E. Colby
Director
Distribution:
DD/I
DD/A
DD/0
DD/S &T
OGC
OLC
IG
D/DCI/IC
D/DCI/NIO
Comptroller
AO/DCI
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 UNCLASSIFIED. CONFIDENTIAL SECRET
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EXECUTIVE SECRETARIAT
Routing Slip
ACTION
INFO
DATE
INITIAL
1
DCI
2
DDCI
3
S/MC
4
DDS&T
DDI
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DDA
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DDO
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D/DCI/IC
9
D%DCI/NI
10
GC
11
LC
12
IG
13
Compt
14
D/ Pers
15
D/S
16
DTR
17
Asst/DCI
18
AO/ DCI
19
20
21
22
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CONFIDENTIAL SECRET.;;
INFO :;
DATE".,
.S/MC
..DDS&T
I DDA
tD/DCI/IC
D/ DCI/ NI
AO/ DCI
ACTION
Remarks: -
a mot" evide. cars -.110
A-arit.
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 Ap
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UNCLASSIFIED CONFIDENTIAL SECRET
OFFICIAL ROUTING SLIP
TO
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INITIALS
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3
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ACTION
PREPARE RE
APPROVAL
DISPATCH
RECOMME ATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks:
FOLD HERE TO RETURN TO DER
FROM;
NAME. ADDRESS AND PHONE NO.
DATE
UNCLASSIFIED CONFIDENTIAL
SECRET
67NO. 237 Use previous editions
FON1 -T
Approved For Release 2001/08/27 : CIA-RDP79-00498A000100150080-6