LETTER TO (Sanitized) PRESIDENT FROM ANDREW E. RUDDOCK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86-00964R000100120006-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: July 22, 2003
• Sequence Number: 6
• Publication Date: October 26, 1960
• Content Type: LETTER

Approved For Rele 2003/08/13: CIA-RDP86-00964R000 120006-8 ADDRESS REPLY TO
UNITED STATES CIVIL SERVICE COMMISSION U.S. CIVIL SERVICE COMMISSION
AND REFER TO
BUREAU OF RETIREMENT AND INSURANCE
WASHINGTON 25. D.C.
F
President
Government Employees Health
Association, Inc.
P. 0. Box 463
Washington 1, D. C.
FILE BH:1 : jf
STAT
In furtherance of our desire to cooperate with all carriers in the
administration of their contract under the Federal Employees Health
Benefits Program, we have incorporated a new feature in the reporting
of subscription charges.
The payment made to you from the Federal Eployees Health Benefits
Fund on October 25, 1960 covering subscription charges due you on that
date, was broken down on SF 1166a into two amounts for each enrollment
code. The subscription charges applicable to pay periods having ending,
dates of September 30, 1960 or prior were shown separately from subscrip-
tion charges applicable to pay periods having ending dates on October 1,
1960 and after. This same presentation will be continued with the check
to you dated November 10, 1960. If by chance there should be any sub-
scription charges applicable to pay periods ending September 30, 1960 or
prior in our check dated November 25, 1960, we will continue the same
type of presentation.
The pay period ending date was chosen as the breaking point for
income accrual purposes. You are no doubt aware that there is generally
a lag between the end of a pay period and the pay ent of a payroll which
may be as long as fourteen days after the end of a pay period. Subscrip-
tion charges are not due and payable to the Fund administered by the
Commission until the day the payroll is paid to employees. Normal mailing
time must be added before we can deposit the subscription charges to the
credit of the Fund. Based on these operating procedures, there will be
instances where the subscription charges for a pay period will of neces-
sity be delayed until the second month following the quarter end.
We are not in a position to prepare this type of information for all
month ends; we will furnish this breakdown for the following dates:
During October and November 1960 as of September 30, 1960
During January and February 1961 as of December 31, 1960
During April and May 1961 as of March 31, 1961
During July and August 1961 as of June 30, 1961
During November and December 1961 as of October 31, 19g661
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 Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120006-8
This manner of presenting the cash receipts to your plan is for your
convenience in adjusting your subscription charge accruals to the actual
subscription charges receivable as of a particular accounting period.
Adjustment can thus be made for those accrued subscription charges which
will not be collected because of non-pay status. Of course no accrual of
subscription charges for terminated enrollments should be included in
your accounts during the 31-day extension of coverage for conversion
purposes.
It was agreed in our contract that you would furnish upon request
such reasonable financial reports with respect to operations under the
contract as are necessary for the Commissionts administration of the
program. We have reviewed our requirements for the first contract
period and now request that you submit cumulative reports on the financial
status of the first contract year program as of the following dates:
As of Date of Report
Period to be Covered
Due in CSC
Washington, D. C.
December 31, 1960
6 months
March 1, 1961
March 31, 1961
9 months
June 1, 1961
June 30' 1961
12 months
September 1, 1961
October 31, 1961
16 months
No later than
February 1, 1962
The reports prior to the end of the contract period will generally
follow the accounting and reporting requirements of the annual accounting
statement. In the very near future a statement format with explanatory
notes will be furnished for your guidance. An explanation of a method
of accruing subscription charges for reporting purposes using the in-
formation furnished on SF 1166a will also be included.
Please bring this letter to the attention of your controller or
chief accountant. Any questions regarding the new subscription charge
payment procedure and the schedule of interim reports will be gladly
answered by Mr. Harold E. Hutinsaker, Assistant to the Director, either
by phone (DUdley 6?3391) or by correspondence.
Sincerely yours,
Andrew E. Ruddock
Director
Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120006-8
 STAT Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120006-8
Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120006-8