APPROVAL OF ADVANCE PAYMENT VOUCHERS BY OSRD TECHNICAL REPRESENTATIVES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00755R000200030002-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: November 17, 2016
• Document Release Date: June 9, 2000
• Sequence Number: 2
• Content Type: REPORT

approved For Release 2000/08/07 : CIA-RDP81-00755R000200030002-8
Office for Emergency Management
OFFICE OF SCIENTIFIC RESEARCH AND DEVELOPMENT
1:30 P Street, NE W.
Washington 2;, D. C.
ADMINISTRATIVE CIRCULAR :.19 (REVISED)
(Contracts)
Supplement No. 1
SUBJECT: APPROVAL OF ADVANCE PAYMENT VOUCHERS BY OSRD TECBN ICAL
REPRESENTATIVES
Effective December 11, 9)43, designated technical representatives
of the Contracting Officer will be given an opportunity to examine and
recommend approval of all advance payment vouchers submitted under con-
tracts which make provision for advances. %
This will give technical personnel a chance to pass upon the
official necessity for and reasonableness of each month's estimated expendi-
tures, on which requests for advances are based, and will assist in effect-
?ng a better.general control of the situation, No special certification by
, hnicai., representatives will be required on this type of voucher but
royal will be indicated by placing the name or initials in the space
fq~di will be provided on the voucher. In cases when it appears that
e tzeste amounts are unreasonable or unnecessary technical representatives
i`sczsS the matter with the contractor concerned and, if necessary,
o nd a Yoval.of.a lower amount. This can be done by signing or
iniang t e voucher but indicating on the accompanying transmittal.
slip 1e amount.
Tr, order to complete the plan for more adequate control of funds
advanced, the dtache instructions have been prescribed for all contractors
receiving advanceB a~ Tarnished for your information. These instruc
tions should not be furnls ta to contractors not receiving advances under . 11 contract provisions . -
Since contractors are usually anxious to receive advances as soon
as possible, priority handling should be given to all such vouchers,
Approved For Release 2000/08/07 : CIA-RDP81-00755R000200030002-8
 Approved For Release 2000/08/07 : CIA-RDP810755R000200030002-8
Circular Distribution
1. Office of Scientific Research and Development
a. Office of the Director
(1) Office of Field Service
(2) Section T
b. Liaison Office
c. Office of the Executive Secretary
(1) Mr. F. J,. Newman
(2) Mr. M. P. aide
2. National Defense Research Committee
a. Office of the Chairman
(1) Transition and Engineering Office
(2) Dr. L. W. Bass
b. Division and Panel Chiefs
c. Section Chiefs
d, Technical Aides
Committee on Medical Research
a. Office of the Chairman
b. Technical Aides
Approved For Release 2000/08/07 : CIA-RDP81-00755R000200030002-8
 Approved For Release 2000/08/07 : CIA-RDP81-00755R000200030002-8
INSTR cTIONS a,GARDING. ADVANCE PKITZ15
(To be furnished only to contractors
entitled under contract provisions
to receive advance payments).
GENERAL INFORMATION
The law which authorizes OSRD to make advance payments
specifically states that they are to be allowed if they "will promote the
National interest". Such payments are made only when and as officially
required; and funds so advanced and in the hands of contractors are
subject to the administrative regulations hereinafter outlined,
The ordinary OSRD contract does not provide for advance
payments but in unusual cases when the contractor has justified the need
and has furnished a current balance sheet, signed by "a responsible official
of the concern or institution, the advance payment provision may be
incorporated upon approval of the Contractilg Officer after a favorable
recommendation of a designated technical representative.
Advance payments cannot be made until the pertinent contract
providing therefor has been.exeouted.
PREPARATION OF REQUESTS FOR AND VOUCHERS COVERING ADVANCE PAYMENTS
In requesting advance payments under contracts providing
therefor it is necessary in order to comply with contract requirements
and standard accounting practices of the General Accounting Office to
submit the following to the Fiscal Officer, Office, of Scientific Research
and Development, 1530.P Street, N. W., Washington 25, D. C.
(1)
A letter of request (signed original and four unsigned
-copies) asking for the sum desired, referring to }
Article (Article authorizing advance payments)
of the contract and classifying by totals the estimated
expenditures under the contract for the calendar month
concerned so as to show a breakdown under the various
paragraphs defining actual costs as listed in the
contract:
Article and Items of Cost` as Listed Probable Actual
Paragraph in Contract E erditures___,
Salaries and wages $
Materials and Services
Overhead
Travel
Etc. - as listed
Approved For Release 2000/08/07 : CIA-R" -007551 :O0020003OOO2-8
 Approved For ease 2000/08/07 : CIA-RDP81-55R000200030002-8
(2) A Standard Form 1034 Voucher (certified original and.four
unsigned copies) for the same amount of advance payment
requested by the supporting letter and prepared to show
all usual information such as name and address of contrac-
tor, contract' number and date, place and date of preparation,
etc. In addition to the usual information this voucher should
contain in the space for description of articles or services
the usual itemization and certification:
(Statement)
"Advance payments under contract indicated, as
provided for in Article ?__thereof, supported by
attached letter of request with itemized estimates
required.".
(Special Certification)
"I hereby certify that the probable actual costs
listed are directly chargeable to the contract referenced,
cover contemplated expenses for the calendar month
of , and that none of the items
covered by this proposed advance have been included in
any previous request for advance payments."
VOUCHERING ITEI-) FOR WHICH WHICH ADVANCE PAYNIELVTS HAVE, 13EIN DECEIVED
In submitting vouchers under contracts on which advance payments
have been received contractors should be careful. to segregate and voucher
separately all items for which payment has not been received and those
items for which settlement has been received under an advance payment,
Vouchers. covering items for which payment has been received
(advance payment) should be submitted promptly after the close of the month
concerned and should bear this or a similar notation, "No check to be drawn;
items listed on this voucher included in advance payment number
for $ ; this voucher submitted in itemized support thereof
Such vouchers will, of course, not involve the-issuance-of a check but will
be filed with and constitute required itemized support for the pertinent
advance payment voucher.
All vouchers (except those covering advance payments and which
are supported by'letters of request showing estimated totals of the various
types of contemplated expenses listed under pertinent paragraphs in the
applicable contract) must be itemized as required by current instructions.
VOUCHERING ITEMS t.BTDE;R ADVANCE PAYMIII?T CONTRACTS FOR WHICH PAYMENT HAS
NOT BEEN RECEIVED 1N ADVANCE . ~~
Vouchers covering items for which payment has not been received
should be submitted promptly after the close of the month concerned and
should bear this or a similar notation, "Check to be drawn; no items listed,,
Approved or Relea'd&12(60/O'~481'=007558000200030002-8
 Approved For Release 2000/08/07 : CIA-RDP81-0075500200030002-8
-3-
vouchers of this typo inay be involved under advance payment contracts if
expenditures for a given month happen to exceed the estimated and advanced
amount.
{1L' dLTi I"r` 'Ai'f'VE R"'GULA'Y'-OATS GOVEI ING THE MA ,aNG OF ADVANCE PAYMENTS
(1). Advance payments are made on a month to month basis and cover
the estimated, or probable actual, expenditures which the
contractors contemplate will be required during the calendar
month concerned.
(2) Small contracts - the size depending upon the circumstances -
do not usually provide for advance payments as the contractors
themselves can ordinarrily finance them.
(3) A minimum limit of $10,000. is usually placed on monthly
advances since the trouble and expense of handling vouchers
for smaller amounts is usually out of proportion to the
final results achieved.
(4) Advance payments are not usually made for periods longer
than two months, This means that such payments would not be
made for more than two months at the beginning of new contracts
aria thereafter not more than two months in advance of required
itemized vouchers submitted in support of the advances.
(.) Advance payment vouchers will be examined. and recommended for
approval by designated technical representatives of the
Contracting Officer.
(6) Ordinarily advance payments will not be made for the last two
months of any contract which is being terminated,
ADMINISTRATIVE RFGUTATICNS GOV MING THE FUNDS ADVANCED AND IN THE HANDS
OF CUNTRACTORS.
(1) Interest will not be charged contractors on outstanding
balances of advances.
{-2-}._ vance payment bonds will not be required from contractors.
(J )
Counter signatures of the Contracting Officer, or an authorized
representative, will not be required on checks drawn against
advanced funds.
(1+) All OSRD advanced funds must be kept separate from the contract-
ors' own or other funds and in a special bank account. A
contractor receiving advance payments under more than one OSRD
contract need not open different accounts for each contract
but may handle all advances through the ono special checking
account. All OSRD advances received by a contract must be
deposited in the special account and all related expenditure
checks must be drawn aginst it.
Approved For Release 2000/08/07 : CIA-RDP81-00755R000200030002-8
 Approved For R ease 2000/08/07 : CIA-RDP81-&55R000200030002-8
When opening the' required special account the contractor should arrange
with the bank to furnish duplicate monthly statements of the account, one
to be mailed. to the contractor and the other to the Fiscal Officer,
Office Cf Scientific Research and Development,, at the address above given.
S,U4P'aP RD, QUEST AND VOUCHER
There are attached a properly prepared sample advance payment
voucher and a letter of request. These requests and vouchers when
submitted by contractors should be sued by any responsible official
Gf the or{ anization.
C G. Cruikshank
Fiscal Officer
December 1? 1943
Approved:
Irvin Stewart
Contracting Officer
Approved For Release 2000/08/07 : CIA-RDP81-00755R000200030002-8