CONTROLS OF COSTS FROM INDIRECT OBLIGATIONS
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP81-00728R000100150029-7
Release Decision:
RIPPUB
Original Classification:
S
Document Page Count:
14
Document Creation Date:
December 9, 2016
Document Release Date:
August 1, 2000
Sequence Number:
29
Case Number:
Publication Date:
June 22, 1960
Content Type:
REGULATION
File:
Attachment | Size |
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CIA-RDP81-00728R000100150029-7.pdf | 590.69 KB |
Body:
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Program
SUBJECT: General - Implementation of rinancial r~ianagement i1~
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rlrtANCIAL 11411NAGFb1E1`iT INIPI~.OVI;I41EN7,' INST?IUCTION NO.~- 1'teviseddlE.? M ??,%'`~
Specific - Controls of Costs from Fndirect
Obliga?tioi:s
RESCISSION Financial. Management Improvatnent Instruction No. ^ 10 June 59, 25X1 A
and Supplement No. 1 thereto, 6 August 59.
1. PUFtPOSL
Under the Agency's :financial management Program cost
lin~ita?tions are established for three types of costs from
indirect obligations (hereinafter reforred to as "indirect
costs"),namely, property, printing services, and boolcs and
publications. The purpose of this Instruction is to prescribe
policy and responsibilities with respect to the maintenance
of control procedures to assure that the indirect cost limita-
tions for each cost center or group of cost centers are not
exceeded.
2. POLICY
a. Separate limitations shall be established by the Budget
Division, Office of the Comptroller, for each of three
types of indirect costs to be incurred by each cost
center (or group of cost centers, where determined
appropriate).
b. Agency allottees shall not exceed the amount of indirect
cost limitations authorized for their use.
c. The three types of indirect costs are described briefly
below:
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(l) Property
(a) Property cost limitations will control the
cost o:~ all materiel issued and the cost of
materiel procured by direct purchase, both
expandable and nonexpendable, except that
common administrative items o:C property
issued to headquartors components will be
costed against an Office of Logistics cost
account.
(b) lleissues of materiel may be made without
charge to the cost limitation of any cost
center when:
1. The reissue is of the same materiel
(i.e., line item(s)) as was turned in
and to the same cost center;
~. The reissue occurs in the same fiscal
year in which the turn-in was made
(regardless of the fiscal year in which
the materiel was withdrawn from stuck);
3. The materiel turned in was not unserv-
iceable oi? obsolete;
4. The materiel is available for issue.
(2) Printing Services
Printing services limitations will control the ~~se
by Agency components of the printing services pro-
vided by the Printing Services Division, Office of
Logistics. All work performed by, or orders
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placed for outside printing through, that Division
will be tested against the printing services limi-
tation to be established for each cost center
(or group of cost centers, whore detex?mined appro-
priate).
(3) F3ooks and P~.iblications
Boo.l~s and publications limitations will control
.the cost of books and publications which each cost
center (or group o:f cost confers, where determined
appropriate) caii obtain through the services of the
CIA Library/Office of Central Deference. A'll books
and .publications provided to Agency components will
be tested against these indirect cost limitations
based upon costing procedures in effect in that
Office. In accordance with arrangements with the
Office of Central Reference costs will be compiled
and reported by the first eight digits only oY the cost
center account number.
d. The cost of property, printing services, or books and
publications provided in any fiscal year based upon
requisitions placed in a prior fiscal year(s) shall be
charged against the current year indirect cost limita-
tion. mince the original amounts of cost limitations
for any fiscal year will be based, primarily upon the
allottee's estimate of requirements for that year under
requisitions to be made in that year, the practice
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stated in the foz^egoing sentence will result in chargos
against the limitations not provided :for therein. To
compensate :for auch charges, addit3.ona"1 authorisations
may be a^equested by the allottees, i:r needed, b~isecl
upon the a1110L121t of cost charges resulting :from prior
year rentlisitions.
3. ?ZI;BPONSIBILITI~S
a. Allottees shall be res,~onsible for;
(l) lliaintaining control ovez^ the value of rec;uisitions
placed for materiel oz^ services chargeable to
indirect cost limitations in order not to exceed
the cost limitations received.
(2) Requesting the Budget Division, Office of the
Comptroller, for any adjustments to approved cost
:limitations.
(3) reviewing, evaluating and tal>ing apr~ropriate action
based upon reports of indi~.?ect costs.
(4) Certifying through the use of a rubber stamp on
each requisition for propez^ty, printing services
and books and publications, before release to the
Office of Logistics or the CIA Library/Office of
Central S~efez^ence as applicable, that unused
indirect cost limitation is available to cover
the requisition. Lach allottee shall obtain
sufficient rubber stamps for his activity for
this purpose in the format prescribed below;
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"I certify that cost limitation is available.
Requis~.tion No.
Char e Cost Center Dio.
u iorizxng ?~xcer
NOTI'a: The identification of charges sot :Coi^?th
above by "Cost Center No." will permit the
charge to cost of the proper cost center ancl, the
accumulation of all chap^ges to cost centers with_
in an office or other grouping of cost centers for
comparison ~vith the limitation.
b. O:Ffice of Comptroller sha11 issue cost limitations and
maintain cost accounting and reporting procedures as
required by this Instruction, including procecures for
recording indirect costs ~.?eported by the O:~:~ice of
Logistics and the CIn Library/Office of Central Re:C-
erence.
c. Office of Logistics shall prepare and implement, in
collaboration with the Office of the Comptroller, inter-
nal proeetlures as required by this Instruction.
d. The CIA Library/Office of Central Reference shall pro-
vide Financial data for use by the Office of the Comptrol-
ler in compiling cost information to be redistributed to
using components, and furnish allottees, as stated in
paragraph ~:b with monthly lists of costs (issues) of
books and publications.
g
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4. PROCEDURr~
a. A suggested procedure for maintaining control over
indirect cost limitations is set forth in Attachment A.
b. Z'lith respect to books and publications it may not be
practical in many offices having small requirements for
books and publications to maintain a formal control
record over the requisitions (form 1395) submitted to
the CIA Library/Office of Central Reference. In the
event that no formal record or listing is maintained
of the requisitions for boobs and publications, a
file of the copies of unfilled requisitions should be
maintained, and as the issues are received, which are
accompanied by a delivery copy of tiie requisition, the
requisition should be withdrzwn from the "unfilled' file
and re-filed in a separate file of "filled" requisitions.
In connection with subscription renewals, for which
requisition :Forms are not required by OCR, memoranda
should be used in the requisition files to cover such
items. A~Ionthly, allottees will be provided by the CIA/
Library/Office of Central Reference with a report covering
the cost centers under their jurisdiction, which will
reflect for boobs and publications (1) the cost limita-
bons, (2) the costs incurred (issues in detail),
(3) the unfilled requisitions, and (4) the balances
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of the cost limitations. The data shown on this report,
together with the Pilo of "unfilled't requisitions,
should furnish adequate; control over the cost limita-
tions for books and publications in instances where
relatively small activity is present.
L . I~ . 1'~Ii I T~
Deputy Director
(Support)
ATTACIIPrTrNT :
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Suggested Procedure for Maintaining
Control Over Costs from Indirect Obligations
1. GENERAL
To maintain control over limitations issued for costs
from indirect obligations a separate Cost Limitation Control
Record (form No. 1642) may be me.3.ntained by
the z11o-ttee for each cost center or g~^oup of cost centers
for which an advice of cost limitation is received from
the Budget Division, Office of the Comptroller. By maintain-
ing a record of this type the allottee will lcnow the status
of each cost limitation and be assured that, insofar as
possible, costs arising from requisitions will not exceed
the amount of the cost limitation received.
2. PROCEDURE
a. The allottee will:
(1) Record the amounts of cost limitation received,
as shown on advices of cost limitations, in the
"Limitation Received" column of the control record.
Ttie amount of the limitation will also be extended.
to the "Unused Limitation" column.
(2) Requisitions for property shall be priced by the
Logistics Officer of the requisitioning component;
the estimated cost of requisitions fox printing
services shall be determined based upon a schedule
of estimated costs to be provided to each allottee
by the Printing Services Division, Office of
ATTACiIMENT A
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Logistics; ana requisitions for books anu'publica-
tions will be priced for recording on this record
based on tlio best estimates possible by the allottee
or obtained from the CIA T~ibrary/Office of Central
Refexenco. The priced requ:~sitions shall be for-
warded to the individual maintaining the Cosh
Limitation Control ?~,ecord for recording in the
"Requisitions Issued" column (for books and
publications the "Description" column should
include a specific identification of the book or
publication requisition for later use in identifying
filled requisitions). All entries and adjustments in
the "Requisitions Issued" column will be reflected
in the "Unused Limitations" column. The individual
designated to maintain the control records will
certify on all copies of the requisitions t:~at cost
limitatior~ is available. A rubber stamp shall be
used for the certification which shall read as
follows
certify that Cost Limitation is available.
Requisition No.
Charge Cost Center No.
u orYZing - cer
(3) Entries shall be made in the ''Deliveries Against
Requisitions'' column as follows:
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(a) For property issues based upon detailed
monthly listings to be provided by the Office
of the Comptroller showing the cost of property
issues;
(b) Fox printing services based upon documents to
be provided by the Printing Services Division
showing the cost of each job; and
(c) For books and puihlications based upon a
monthly report to be provided by the CIA
Library/Office of Centz?a1 Reference which
will reflect the cost of each requisition
filled.
(4) At the beginning of each fiscal year the total
estimated value of prior year unfilled requisitions
will be recorded in the requisition issued column
as an obligation and as a reduction of the ne~v
fiscal year indirect cost limitation. In addition,
the amount of deliveries against such requisitions
shall be recorded as they occur on the prior year
Form 1642, and any differences between the estimated
value of the requisition and the actual cost shall
be extended to the "Unused Limitations" column and
such cl~fferences also shall be recorded on the
cr.Irrent year Form 1642 as adjustments of the
requisition issued column and the balance of the
current year "Unused Limitation".
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'1.3 JlJ"I 1960
A~IDIt~IO#iANDi7A~I i'OT~: Deputy Director (Support)
SUDJ~CT : proposed Revision o:f IZe:ference
Rr ~ ~RICNCD : ri~nancial management improvement Instruc~L-ion
No. ~ dated l0 June 1959; subject:
Controls o:f Costs :from Indirect
Obligations
1. This memora~lclum contains a request :For action in
paragraph 3 below.
2. Reference sets forth policy a.nd responsibilities with
respect :, the rnaintonance o:f control procedures :for indirect
cost limitations. '!.'leis revision is required consistent with
the change in policy :for property procurement funding whereby
all property will be charged against general procurement allot-
ments and will be subject to property cost limitation control.
The revision also sets :forth the requirement that current year
cost limitations for property, printing services, and books and
publications will bo charged :for costs resulting from prior year
requisitions and that additional cost limitation may be requested,
i:f needed, 'to offset such costs. it ~urthex~ provides a suggested
method :for the maintenance o:f the Cost Limitation Control Recorcl
(corm 1642) to recognize such prior year charges to the current
year cost limitations.
3. Subject is submitted :for authentication for publication
with AB distribution in sufficient time to place the issuance in
the hands o~ personnel concerned not later than 30 June 1960.
Deputy Comptroller
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rinancial 1~Iana~ement Improvement Instruction No. ~- Revised
-'~ubject; Controls o~ Costs :Crone Indirect Obli~a?L-ions
CONCUR :
25X1A
25X1A
I'or ?the Deputy Director (Plans)
I'or the Deputy Director (Intelligence)
ss~.s -an o ie ~ m n
a ?e
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