DECENTRALIZED ALLOTMENT CONTROL PROCEDURE - VOUCHERED FUNDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00728R000100150031-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 18
• Document Creation Date: December 9, 2016
• Document Release Date: August 1, 2000
• Sequence Number: 31
• Content Type: REGULATION

 Approved For Release 2001 /03/3~:~ - :DP81-007288000100150031-4
Financial Management Improvement Instrucl~3.on N'o.
SUBJECT: General - Implementation of Financial Manage-
mont Improvement T~rogram
Specific -Decentralized Allotment Control
Yi"ocedure - Vouehered Funds
REFERENCE: - IIeadquartors Allotment Control
rote ure
25X1A
1. I~URI~osL
Tlie purpose of this Instruction is ?to provide vQUCIiered
funds allottees with a uniform system for the control of
vouchered funds allotments, obligations, expenditures, and
adjustments thereto, and to prescribe a procedure for the
reporting of obligations by the vouchered .funds allottees to
the Fiscal Division, Office of the Comptroller. The provi -
sions of this Instruction shall be effective beginning
1 July 1959.
2. GENERAL
Fora number of years allottees have maintained control
records of confidential funds allotmen~s and rendered monthly
summary obligation repor%s to the Finance Division, Office of
the Comptroller, for inclusion in monthly financial statements.
In conformance with the Agency's Financial Management Improve-
ment Program, and in order to provide. more current records
of the status of each vouchered funds allotment, it is deemed
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desirable for allottees also to maintain control records of
vouchered fund allotments and to ronder monthly summary
obligation reports of accumulated obligations to the fiscal
Division, Office of tlae Comptroller.
:3. PROCEDURE
Reference handbook sets :forth the detailed "headquarters
Allotment Control Procedure" to be followed by allottees with..
respect to confidentia], funds allotments. The procedure .for
maintaining allotment control for vouchered funds shall be as
set forth in reference, subject to the special instructions
set forth below:
a. Allottees shall maintain allotment control records to
reflect accumulated obligations by object classes and
shall submit monthly summary obligation reports
reflecting accumulated obligations by object classes,
as prescribed in Attachment A hereto.
b. Obligation documents, except for payroll and related
items, carrying a certification as to availability of
funds shall be forwarded promptly to .the Fiscal
Division, Office of the Comptroller. These obligation
documents shall reflect in addition to the certificate
as to availability of funds. (1) the obligation reference
number, and (L) the cost center symbol to which the
subsequent expenditure should be charged. expenditures
against previously submitted obligations will be pro-
. cessed by the Fiscal Division without referring the,
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expenditure vouchers to the allottde for further cer~i -
f ication i~~ cases where tl~e Fiscal Division has a
contract or purchase order, and a receiving report, and
such practice is agreeable with the allottee; this
practlc? is currently being followed with respect to
obligations which originate in the Office of Logistics
and in the Office of Communications. Expenditure
vouchers received by the Fiscal Division, for which
obligation documents a,re not on file, will be forwarded
to the allottee for certification that funds are avail-
.able prior to payment. The requirement that an allottees'
certification of availability of funds appear on each
obligation document will, in some instances, require the
rerouting of ceri:ain obligation documents, such as
contracts; for services, not now flowing through the
allottees' offices. Prior to 1 July 1959, allottees'
should take the necessary steps to arrange for any such
rerouting which may be required..
c. .Payroll .obligations may bo recorded under a simplified
procedure described in Attachment B IZereto.
d. Expenditures shall be recorded on the Allotment Control
Record based upon the mont131y expenditure listing
received from the Office of the Comptroller, inasmuch
as the Fiscal Division will pay some claims on the basis
of previously submitted obligation documents appropriately
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certified to show availability of funds.
e. Obligations for transpor?Lation of things shall be
rcc:orded as a normal obligation against the allottees'
funds rather than as prescribed 25X1A
~. 1~P1~LICeBILITY TO 1lLLOTN[FNTB 0?^ T.~I3.IOR FISCeL YLtiIZS
a. Tile procedure prescribed herein, effective 1 July 1959,
shall apply also to a,11 open vouchcred funds allotments
of prior fiscal years (fiscal years 1959 and 1958). In
addition, allottees shall have the responsibility of
maintaining continuing records of unliquidated obliga-
tions applicable to lapsed appropriations for inclusion
in annual listings to be provided to the Office of the
Comptroller.
b. BLS soon as practicable after 30 June 1959, the allottees
will be provided by the Office of the Comptroller. with
the status of each open allc?tment for fiscal years 1959
and 1958 as shown on the records of the Fiscal ]Division
as of 30 June 1959, showing the gross amount of a11ot-
ments, cumulative obligations, accumulative expenditures,
unliquidated obligations and unobligated 'aalance. Further,
the .Fiscal Division will furnish each allottee clocunz~:nta-
tion to support each unliquidatecl obligation outstanding
for fiscal years 1959 and 1958 as of 30 June 1959, or
witl'~ lists of all unliquidated obligations outstanding
as of 30 June 1959. In either case, the unliquidated
obligations will be identified by a reference number
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which will be shown in subsequent expenditure listings to
enable allottees to adjust their allotment control
records. Also, for the records of allottees the Fiscal
Division will provide a listing of unliquidated obliga-
Lions as shown by its records as of 30 June 1959, for
the allotments of fiscal. year 195? and for prior years.
c. Beginning 1 July 1959, since the Fiscal Division will
have available detailed documentation representing
unliquidatea obligations for fiscal years 1959 and. prior
years, it will continue to pro~;ess to the extent that
it has heretofore, payment documents without reference
-prior to payment to the allottee even though the obliga-
tion documentation does not reflect a certification by
the allottee as to the availability of funds. In cases
where no record is available in the Fiscal Division of
a recorded obligation for any payment document, such
document will be referred to the allottee for certifi-
cation as the the availability of funds prior to payment.
I~. K. lYPlITE
Deputy Director (Support)
ATTACHMENTS
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P81-007288000100150031-4
A~i'TxCI~VlENT A
PROCEDURE FOR MAINTAINING VOUCIIERED FUNDS
ALLOT117ENT CONTROL RECORD AND REPORTING CUMULATIVE
OBLIGATIONS TO FISCAL DIVISION
? OFFICE OF TIIE COMPTROLLER
1. Allotment: Control - Gonex?a1
A separate allotment control record shall be maintained
for each allotment issued by the Budget Division, Office
of the Comptrollex?. xllottees may elect also to main-
tain an obligation control at a level below the allot-
ment level. If so, Form No. 1643 should be maintained
at such lower level in the same manner as for obligation
control at the allotment level.
2. Maintenance of allotment Control Record - Form No. 1643
(Figure 1)
a. To provide consisf:ency between vouchered and confi-
dential funds allotment control records, the
columns for recording date, reference, description,
allotments, obligations, expenditures and unobli-
gated balances are the same for vouchered as for
confidential funds and will be posted in the same
manner. The requirement that vouchered funds
obligations be reported by major object classifica-
tion, however, necessitates additional columns far
recording object class breakdown.
b. In order to obtain object class data on cumulative
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obligations the allotment control record may be
maintained under either of the two alternative methods
sot fort h below:
(1) Alternative ono
Utilize the object class columns to record the
object class breakdown of each. obligation at
the time it is recorded in ?the obligations
incurred column. This will necessitate an
adjustment to the appropriate object class
column, in each instance when (a) an obligation
is liquidated by an expenditure .in an amount
other than the exact amount obligated, (b) the
expenditure is made to different object classes
than those obligated, and (c) an obligation is
cancelled or adjusted. At the end of each
month the totals of the several object class.
columns will represent cumulative obligations
by object class breakdown.
(L) Alternative two
Utili.z_ the object class columns to record tI2~:
object class breakdown of each expenditure at
the time it is recorded in the expenditure.
column and at the end of each month determine
theobject class breakdown of unliquidated
obligations by recapping the documents in the
unliquidated obligation file. The total of each
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object class of expendi?L-ui?es added to the. object
class of unliquidated obligations will represent
cumulative obligations by object class.
3. 117ontlily Summary Obligation Reports
a. To provide data for the recording of all obligations
in the accounts maintained by the Fiscal Division,
each vouclzered funds allottee shall prepare and
transmit to the fiscal Division at the close of each
monthly accounting period a summary obligation
report. This report shall be prepared on Form No.
1644, Summary Obligation Report (Figure ~), to show
the amount of the cumulative fund obligations by
object class to be recorded by the riscal Division
for each allotment account.
b. The allo?L-ments shall be listen on Form No. 1644 under?
subheadings for each fiscal year. The reports will
reflect each month (1) all allotments maintained
by the allottee for the current fiscal year regard-
3.ess of whether there have been any changes in
cumulative obligations during the current month, and
(L) all allotments for the two prior fiscal years
for which changes have occurred during the current
month in the total cumulative obligations to date.
Tf no change has occurred during the month in the
.cumulative obligations of the allotments for either
of the two preceding fiscal years, the year will be
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listed .and the words "'No Changes" inserted there-
under in the A1lotmont Symbol column.
The summary obligation reports submitted on Form
No. 1644 must reach the Fiscal Division no later
than the second working day following the. close. of
each month. It is the responsibility of the allottees
to insure that the Fiscal Aivision :is currently
and ad@quately informed of the cumulative obligations
to be recorded by it.
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KTTeC1IMENT B
SIMPLIFIED METHOD FOR RECORDING
PAYROLL OBLIGIiTIONS
1. Voucliered funds allotteos will be provided with a
summary of eaeli bi-weekly payroll shot~ving the total payroll
charges for gross salary (object class 01) and Eigeney con-
tributions to life insurance (object class 0?), retirement
(object class 11) and FICA (object class l5). This summary,
with appropriate adjustments whenever necessary because of
known personnel changes which would have an important effect
on the obligation recorded, may be used to project future
payroll obligations in the following manner:
a. At the beginning of each fiscal year, establish
estimated obligations for the partial and complete
bi-weel~ly pay periods in July (e.g., in July 1959
these periods are 1-11 July, 12-25 July, and 26-31
July). assuming a 10 work day pay period, the
obligation to be established for 1-11 July would
be 8/lOths of the most recent payroll summary availa-
ble, for 12-25 July 10/1Oths, and for Z6-31 July.
5/1Oths. For example, if the latest bi-weekly pay-
roll summary available indicates gross salary
charges of $2,000 and there were no known personnel
changes requiring recognition in the estimate, the
estimates to be set up for 1-11 July would be $1,600,
,~ ~'~
a, Y
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for 12-25 July $2,000, and for 26-31 July $1,000, or
a total of $4,600. Those figures were arrived at as
follows:
Pay Pex?iod
Work Days
1/10 Bi-weekly emt
Estimat
.
e
1-ll July
8
$200
$1600
12-25 July
l0
200
2000
26-31 July
5
200
1000
b. At the beginning of each succeeding month, reverse
the estimate for tl~e partial bi-weekly pay period
fallir~~~ at the .end of the previous month and establish
an estimate covering the full bi-weekly pay period
beginning in the p~~ovious month and ending in the
current month (for example, the last estimate
established in July covered fromL6-31 July, but the
full pay period covers from 26 July - 8 August). Thus,
at the beginning of August the estimate for 26-31
July would be reversed and a new estimate established
covering the period 26 July - 8 August, in addition
to estimates for 9-22 and 23-31 August, By using
this mothod the expenditures for a particular pay-
roll may serve to fully liquidate obligations established
for the same period.
c. Estimated obligations for related payroll items,
namely, life insurance, retirement and FICti, would
be established in the same manner as for salary.
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