PAYMENTS TO THE DEFENSE DEPARTMENT IN REIMBURSEMENT FOR SERVICES AND SUPPLIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01370R000300030046-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: August 2, 2000
• Sequence Number: 46
• Publication Date: November 7, 1958
• Content Type: MF

Approved'0or Vase 2000/09/12 : CIA-RDP80-( 70R000300030046-6
MEMORANDUM FOR:
Acting Comptroller
SUBJECT
Payments to the Defense Department in
Reimbursement for Services and Supplies
REFERENCES :
(a)
(b)
(c)
Memorandum dated 27 August 1953 to
Comptroller from Chief, Fiscal
Division
Memorandum dated 8 September 1953
to Chief, Logistics from Comptroller
Memorandum dated 17 September 1953
to Chief, Fiscal Division from
Comptroller
1. This memorandum contains a recommendation for
approval. This recommendation is contained in paragraph 7.
2. As you may recall, several years ago there were
a considerable number of vouchers for payment to the Armed
Services that were being withheld from payment until complete
receiving reports had been received. The delay in making
payment of these vouchers was the cause of great concern
as it resulted in serious inconvenience to the Service agency
and created a poor working relationship.
3. In order to immediately correct this situation it
was recommended (Reference a) and approved (References b and
c) that the payment of these vouchers be effected without
prior verification of receiving reports, with the proviso
that this verification would be accomplished on a post
disbursement basis. This procedure was in accordance with
provisions of Public Law 601, as amended, which authorizes
settlement on transactions between U.S. Government Agencies
arising out of materials provided or services rendered by
the requisitioning agency prior to complete audit and
certification. However, since clearing the backlog of
vouchers then held, the procedure of verification of receiving
reports before settlement is again being followed.
OMG a.ass~5 Pays _ _ . R4 JUST .~ ~_--- NEXT REV ? _- __ AUTN: FR 104. t
 Approved For Fuse 2000/09/12 : CIA-RDP80- 70R000300030046-6
4. The Fiscal Division, in making settlement for
these activities, continues to encounter considerable
difficulty in obtaining receiving reports or approvals of
procurement activities or identification as to the using
component to be charged for services. Referrals must
first be made to Area Divisions, Military Personnel
Division, Central Processing Branch, Office of Logistics,
Transportation Division, Supply Division or other Agency
components that are in some way believed connected with the
transaction or identified as the using component. These
processes are very time consuming as the documents require
numerous handlings before being completed. When the bills
are paid they are then reflected through the reciprocal
accounts to the Finance Division which has to analyze the
detailed items and effect appropriate recordings.
5. Numerous discussions concerning the delays in
processing these reimbursements to the Service agencies
have been held with Agency components involved as well as
with the Service agencies' representatives to expedite the
payments. The other agencies have been requested to segre-
gate their billings to facilitate our handling and their
billings are usually so segregated. However, delays in
payment of reimbursements continue to take place due to
the lack of proper documentation being made available to the
Fiscal Division to identify the charges to the using compo-
nents. The continuing delay in making reimbursements to
the Service agencies affects our relationships with them
as they make follow-ups periodically as to when they can
expect payment.
6. It has been concluded, after these discussions
with the Agency components involved with respect to expeditiag
the processing of the billings from the Defense Department,
that prompt payment should be effected by adoption of the
provision stated in Public Law 601, as referred to in para-
graph 3 above, which recognizes payments between Government
agencies prior to complete audit and certification. In
the handling of disbursements in this manner it is also
deemed appropriate that since the Finance Division has
available to it, for other purposes, documentation and/or
other informational material, which is not made available
to the Fiscal Division because of security reasons, the
Finance Division should be charged with the full responsibility
for final review of the vouchers with respect to authoriza-
tion, receiving, and distribution of charges.
 Hpprovea ror K ease luuuiu ii : c..ii-KUrou-u to uuu3uvu yu4
7. It is recommended that you approve in principle
the proposal for payment of Defense Department billings
by the Fiscal Division prior to audit and referral thereof
to the Finance Division for further processing. Detailed
procedures relative to this matter will be developed and
set forth in a Comptroller Instruction after you indicate
your concurrence herein.
8. We are continuing the review of internal Agency
procedures relative to the documentation that should be
promptly provided to the office of the Comptroller in order
that the accounting for these activities is maintained
currently and contemplate the issuance of operating proce-
dures to implement Agency regulations which currently
prescribe general requirements in this connection. We have
been concentrating our efforts on billings from the Air
Force but coverage will also include activities with the
Departments of the Army and the Navy.
25X1A
Chief, Technical Accounting Staff
Concurrences:
Chief, Fiscal Division Date
ILLEGIB
25X1A
Acting Comptroller Date