APPLICATION OF THE PROCEEDS OF SALES OF PERSONAL PROPERTY TOWARD THE PURCHASE OF REPLACEMENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01370R000300030010-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 9, 2016
• Document Release Date: September 6, 2000
• Sequence Number: 10
• Content Type: MF

Approved For Release 2001/04/05: CIA-RDP80-0137OR000300030010-5
RIORAWDUR FOR: Director of Logistics
SUBJECT : Application of the Proceeds of Bales of
Personal Property Toward the Purchase of
Replacements
25X1 A UPERBNCRg
(a) Same Bubject, dated
26 July 1955.
(b) Comptroller Instruction Noe. 15
and 16, dated 29 August 1955.
1. It is the policy of the Agency, as set forth in
reference (a), issued pursuant to Section 8 of Public Law
600, approved August 2, 1996, and as implemented by the
General Accounting Office Policy and Procedures Manual,
that the proceeds of sales of personal property be used
toward the purchase of similar items of now property
when the purchase is for replacement purposes.
2. Comptroller procedures, as prescribed in reference
(b), provide for the Fiscal or Finance Division, an appli-
cable, to advise the Office of Logistics of all such
collections and your Office in turn matches up the disposed
items with replacements, if any, and submits to the Fiscal
Division the report of the completed replacement transaction.
This report supports the accounting entry of the sales pro-
ceeds as a reimbursement to the current year appropriation
account. Proceeds of sales of personal property are avail-
able for use toward the purchase of a replacement in the
fiscal year in which the sale in made and the following fiscal
year. If no obligation is made for a replacement during that
period the funds are cleared from the "deferred credit"
category and deposited with the U.S. Treasury as "miscellane-
ous receiptst' .
3.. The majority of the proceeds of these sales pertain
/eto,motor' Vehicles, the inventory of which to under strict
cont#rq ~YY headquarters. All disposals or purchases made at
field `fn *tallations are specifically authorized by your Office,
acid the matching up of these replacement transactions does not
preit any difficulty.
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4. There is a problem, however, with respect to the
transactions involving personal property other than vehicles.
(These represent collections on items many of which are small
amounts; also, many are reported under broad categories by
field stations, e.g. furniture, not identified to a particular
piece of furniture or that it involves a replacement. The
Office of Logistics has been quite disturbed about the work-
load involved in analyzing transactions of this nature,
particularly with respect to trying to identify these small
amounts per item to replacement transactions, and there have
been numerous discussions between representatives of this
Office with representatives of your Office to arrive at some
practical solution to the problem. A representative of your
Office some time ago requested the Finance Division to
discontinue sending collection reports on all property ex-
clusive of vehicles, particularly because it had been determin-
ed that operating offices budget not only on vehicles. This
request was denied in the absence of competent authority to
make an exception to Agency regulations.
5. In order to make a more practical application of
the Law, which is permissive, and yet meet the objective of
the Law without undue administrative burden, it is proposed
that Agency policy with respect to proceeds of sales of
personal property other than vehicles be modified to provide:
a. Sales of types of property other than vehicles (such
as office furniture; household furniture; tools and
automotive spare parts, tires, etc.; communications
equipment, including transmitters, receivers, etc.;
medical equipment; photographic equipment, etc.) be
considered replacement transactions without further
identity to specific replacement units and the
proceeds treated as reimbursements to appropriations
as long as the overall Agency inventory level estab-
lished for each such type of property is not scheduled
for reduction as a result of such sales.
b. Sales of types of property other than vehicles be
considered non-replacement transactions and the proceeds
treated as miscellaneous receipts when the overall Agency
inventory level established for each such type of property
is scheduled for reduction as a result of such sales.
c. Notwithstanding the foregoing, sales of all types
of property be considered non-replacement transactions
and the proceeds treated as miscellaneous receipts
when the sum of the line items pertaining to a particular
sale, is $50.00 or less.
 R. The foregoing procedure in considered from a
practical viewpoint to comply with GAO procedures on
this subject although it does not require specific item
for item identification to be reflected as support for
the replacement transaction. However, in view of security
measures that are necessary in Agency activities and which
often result in unusual acquisitions and dispositions of
property items, it in considered advisable to adopt such
a procedure.
7. If the proposal stated in paragraph 5 above
meets with your concurrence, it is requested that you
so indicate on the copy of this memorandum and return
it to this Office.
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E. R. SAUNDERS
Comptroller
I concur in the proposal stated in paragraph 5 above and
the representatives of my Office engaged in the related acSivittes
will be advised of the modified policy and procedures.
Director of Logistics
 . Approved For Rase
as Referred to by the Office
a of Proceeds of Sales
the Purchase of Rep acements
C.G. 620
730
C. 0. 31
107
385
477
28 C 0. 155
257
443
IA-RDP80-O10R000300030010-5
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eral Decis
Quoted below are excerpts from C.G. decisions relating
to Application of weeds of gales Toward Replacements.
27 C.G. 477 - 1 the Secretary of th
ft
vary 26, 1948:
entation proposed to be
de used to ice payment on
account of the purchase of a general class of new equip-
h,, for example, as sedans and busses--were
fr
the same general
sales of old equipment of
papers would not
show that the funds used to make payment on account of
a particular vehicle were derived from the sale of an
old vehicle which it is to replace. ice,, it is obvi-
at the use of the proposed subsidiary accounts
chase with a particular sale. Rather, identification
not contemplate the identification of a particular
would be limited to a reference of a class of sales to a
the use of the subsidiary accounts as
proposed would not permit the identification of par-
ticular purchases with related sales and, therefore,
similar class of pu
the accounting for transactions thereunder would not
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TAB a
;cont. }
ly with the provisions of section 8 of Public
Law 800. Accordingly, the request for the establish-
t of the proposed subsidiary accounts must be
27 C.G. - lo the Federal Warps Administrator, larch 22
"Reference is made to your letter of February 9,
194$, relative to a proposal that the Public Roads
Administration be Permitted
ideer all its con-
struction and maintenance equipment
excavators, dogs, scrapers, g
used exclusively for building and main-
taining roads and bridges as "'road building equipment,"
that the proceeds from the sale of any one or more
pieces of such equipment, or the exchange value there-
of, may be applied toward th
now equipment under section 8 of the act of August 2,
1946, 60 Stat. 8818, 809."
. .
"The authority granted in section 8 of Public
law 600 is intended for use by departments in the pur-
chase of items which are to be used in replacement of
old equipment. And the authority extends only to the
 Approved For F ease 2001 IA-RDP80-IP70R000300030010-5
TAB g
(cont.
change or sale
ted under section 8 of public
Lined in your letter the individua
of equipment would for all intents and purposes lose
their individual is
yoking the authori
Law 90#. A truck would not be classed as a truck, a
grader would not be class" as a grader, a tractor
would not be considered a tractor, etc.,, but all such
equipment would
.eat for the purpose of in..
into the general category
of "Road Building !Equipment,,"
actually the
ale of any one of the various types of
equipment enumerated in your letter would be available
for application against the purchase of any other type
of equipment.
"-I do not feel that the intermingling of vario
types of equipment related only by use in a general
activity such an road building and the classification
thereof under one broad heading, is comprehended in
items" as contained in section 8 of
public Law 600. An interpretation of the term such
as contended
intendment of
would
afield of the on
Accordingly
advise that this Office may not acquiesce in the wodi-
fication of the holding in 23 gip. Gen. 931, to the
extent proposed."
 month
Collected
Jul.
1957
1,, 689.11
20, 015.42
AmJmir.
1957
127.77
266, 395.42
.
1957
26,785.47
Oct.
1957
3, 676.00
10,567.29
Nov.
1957
6,058.67
100017.11
Dec.
1967
1, 923.99
12,641.13
Jan.
1958
28,411.46
Feb.
1958
2, 803.00
18,451:.52
VAX.
1958
18, 706.69
Ap'r,
7,953
125.00
22t637.52
y
1958
2,022.07
34,903.29
Jun. 1968
4,0
3012LO.
Tote
1058 FY
$21,2
$1259 781..
Jul.
1958
1958
2.958
Oct.
1958
Nov.
1958
Dec.
1968
Jan.
1969
Feb.
1969
Mae.
1,959
Apr.
1959
may
1969
>un.
1050
Tota1e ..
1959 FY
3 2, lR81. 25
3.458.81,
21,489.25
8,631 59
23,117.98
21,,497.46
27,2".37
21,9044.19
18,448.47
16,273.68
9,988.47
18,488.68
.
240602.05
21,429.94
18, 3.91
15,x.32
35 328.27
$248, 805.81
Bales-Pe
204.25 $ 40607.33
.. 498".06
6,506.00 5,733.76
.7
4, 016.35
721.37
6, 633.09
7, 551 35
288.53
1,675.29
9, 227.01
19,030.50
3,036.01
709.25 $ 67,436.44 $ 74 145.69
4 252.03 $ 13,376.23
;08, 916.78
2,102.10
3.00 11,908.74
2,230.17
14, 651.90
5,179.98
a 7,387.91
8,080.19
-- 2v748.02
30857.28
5* 801. 45, 995.38
$259, 923.79 $5, 858.72 $226,431.68
01
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13700RR000106
2t290.40