FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM: ACCOUNTING AND REPORTING PRINCIPLES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86-00964R000100120042-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 14, 2016
• Document Release Date: July 22, 2003
• Sequence Number: 42
• Publication Date: February 9, 1960
• Content Type: REGULATION

Approved
,FoR (ease 2003/08/13: CIA-RDP86-00964R000100120042-8
S r)Jv
STAT
Q UNDO STATES CIVIL SERVICE COMMISSION
I ?r Washington 25, D. C.
February 9, 1960
DEPARTMENTAL CIRCULAR NO. 1024, SUPPLEMENT NO. 4
TO HEADS OF DEPARTMENTS AND INDEPENDENT ESTABLISHMENTS
SUBJECT: Federal Employees Health Benefits Program: Accounting and Reporting
Principles
The Federal Employees Health Benefits Act of 1959, Public Law 86-382,
approved September 28, 1959,. places on each Government department, agency,
and independent establishment the responsibility for keeping such records,
making such certifications and furnishing the Civil Service Commission with
such information and reports as may be necessary to enable the Commission to
carry out its functions under the Act.
The Commission is aware that agency responsibilities must be delineated
as soon as possible in order that plans can be made prior to the effective
date of operations under the Act. Therefore, the attached "Accounting and
Reporting Principles" are presented for your consideration and comment with
the understanding that these principles represent only tentative thinking and
may of necessity be changed. The following items, however, are considered
sufficiently firm so that agencies may plan their internal procedures accord-
ingly.
1. Enrollment codes will be expressed in three digits.
2. Deductions and agency share of subscription charges must be accounted
for accurately and be subject to an internal control mechanism in
addition to post audit.
Agency reports at the earliest possible date will be required to
support credits or payments to the Health Benefits Fund administered
by the Civil Service Commission.
The head of each agency is hereby requested to designate a Health Benefits
Officer and notify the Commission in writing of his name, address, and telephone
number as promptly as possible but not later than February 29, 1960. The
Commission will consider this Officer as the agency contact on health benefits
matters and look to him for such information as may be required from time to
time.
The individual designated may be the Retirement Officer or the group Life
Insurance Officer or someone else. He should, if necessary, be supported by
such technical assistants who can speak for the agency on all matters relating
Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120042-8
 DC 1024, S4(2) Approved For Release 2003/08/13 : CIA-RDP86-00964ROO0100120042-8
to health benefits (e.g. accounting, training, enrollment procedures, stocking
and distribution of forms).
Any comments relative to the attached draft "Accounting and Reporting
Principles" may be made in writing to the Bureau of Retirement and Insurance,
Civil Service Commission, Washington 25, D. C., or by phone in the Washington
area (129-3391, Mr. Harold E. Hunsaker, Health Benefits Task Force). Comments
received prior to February 29, 1960 will be considered in developing our account-
ing and reporting instructions to be issued as soon thereafter as possible.
Warren B. Irons
Executive Director
Attachment
Distribution: Washington, D. C. area only
Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120042-8
 Approved For Release 2003/08/13 : CIA-RDP86-00964Rddokpdff2ti04J2-bo DC 1024, S4(1)
w
FEDERAL EMPLOYEES HEALTH BENEFITS ACT
ACCOUNTING AND REPORTING PRINCIPLES
GENERAL
The system of accounting and reporting for the Federal Employees Health
Benefits Act is intended to fulfill the requirements of the Act in conformance
with the principles and standards of accounting prescribed by the Comptroller
General in the most reasonable and practicable manner possible.
The establishment of internal controls and the accounting necessary to
produce accurately the'reports and the results referred to in this memorandum
shall be the responsibility of agencies under their systems of accounting
approved (or to be approved) by the Comptroller General. The General Account-
ing Office has informally agreed to incorporate any necessary changes in Title
6 and Title 7 of the General Accounting Office Policy and Procedures Manual
for Guidance of Federal Agencies as a result of this new program.
OBJECTIVES AS RELATED TO THE CIVIL SERVICE COMMISSION
Records will be maintained which will fulfill the requirements of the Act
applicable to the Employees Health Benefits Fund. In order to meet the objec-
tives related to carriers, employee and agency contributions to the Fund must
be summarized in the Commission accounts by type of enrollment; i.e. self alone,
self and family, and female employee enrolled for self and a family which
includes a nondependent husband, for each plan and option (level of benefits).
A contingency reserve must also be maintained for each Health Benefits plan.
Contributions to the Fund from agencies therefore must be susceptible to this
breakdown.
OBJECTIVES AS RELATED TO AGENCIES
Agencies will process Health Benefits Registration Forms (now being devel-
oped) from eligible registrants through the payroll offices as authority to
make payroll deductions and agency contributions for employees enrolled in the
plans of their choice. Terminations and other changes in enrollment will simi-
larly be processed. On the basis of this documentation, payroll deductions
and eligibility for benefits are established. Agencies may be required to
certify the eligibility of enrollees for benefits.
Agencies will maintain pre-determined control totals by types of enroll-
ment within plan options for the amounts to be withheld from enrolled employees
and for the agency contributions. Agencies will regularly report such amounts
applicable to each payroll processed or consolidations thereof acceptable to
the Commission.
Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120042-8
 t ,t: a.chment i toA M@eq,I,W ease 2003/08/13 : CIA-RDP86-009641 0100120042-8
:OBJECTIVES AS RELATED TO CARRIERS
Carriers will be paid by the Commission as often and as timely as practi?ca-
~>1e in accordance with their contract. Payments to carriers will not identify
lames of enrolles or numbers of persons covered by the payment.
+I1, AGENCIES
Each payroll office or the accounting station for the payroll office will
report for each payroll processed the amount withheld from employees and the
igency contribution by enrollment code number. The code will consist of three
digits: first two representing a plan (more than forty plans will be involved)
.Lnc[ the third digit representing the plan's first or second option and the
.ype of enrollment. (See sample of coding, Exhibit A.) The distribution of
he total contributions (employee and agency) by enrollment code will be based
r+n pre-determined controls supported by appropriate documentation. (See an
,;xamp1e of a control register, Exhibit B.)
Each payroll office or the accounting station for the payroll office will
caintain records in such form as necessary to report semi-annually as of June
'0 and December 31 to the Commission by enrollment code the total employee
withholdings and agency contribution for the payrolls paid. This report will
he used to reconcile the accounts of the agency and the Commission in order to
sseure the accuracy of the payments to carriers. Exhibit C may possibly be
1~1.dapted for use for this semi-annual report. Reasonable statistical data on
:nrollees will also be required.
j;encies paying payrolls through the Treasu Division of Disbursement
Each payroll office will furnish with each payroll. submitted to a Treasury
tisbursing office:
I. An extra copy of the SF 1166, SF 1128, or other document
for which an entry is processed to 24 X 8440( ).
2. One copy of Exhibit C, Employee Deductions and Agency
Contribution, Federal Employees Health Benefits Act, in
support of item 1.
The procedure for crediting a trust account bearing a symbol 24 X 8440( ),
Employees Health Benefits Fund, is similar to that presently used under the
Federal Employees' Group Life Insurance Program.
Each Treasury Disbursing Officer processing payrolls for agencies will
ce.ach the extra copy of the SF 1166, SF 1128 or other document for which an
Entry is to be processed to 24 X 8440( ) and the supporting Exhibit C and
-indicate on these documents his usual stamp and accounting date. Addressed
Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120042-8
 Approved For Release 2003/08/13 : CIA-RDP86-00964RO%(t ,8fl 42-8to DC 1024,54(3)
NW *Ift/
envelopes will be furnished each Treasury Disbursing Officer for transmitting
these documents to the Commission daily.
Agencies whose payrolls are paid by disbursing officers other than those of
the Treasury Department
Each payroll office or the accounting station for the payroll office will
furnish with each payroll submitted to the disbursing officer:
1. An extra copy of the SF 1166, SF 1128, or other document
for which the amount of employee withholding and agency
contribution is charged to an appropriation or fund.
2. One copy of Exhibit C, Employee Deductions and Agency
Contribution, Federal Employees Health Benefits Act, in
support of item 1.
The disbursing officer will issue a check payable to the U. S. Civil
Service Commission and record the check number and date on Exhibit C. If more
than one payroll is being processed for an accounting date, the check to the
Commission may cover a group of Exhibit Cts. The extra copy of the SF 1166,
WO SF 1128 or other document for which an appropriation or fund is charged and
the supporting Exhibit C will accompany the check sent to the Commission.
Agencies whose payrolls are paid by the United States Disbursing Officers of
the State Department
Each payroll office or the accounting station for the payroll office will
furnish with each payroll submitted to the disbursing officer:
1. An extra copy of the SF 1166, SF 1128, or other document
for which an entry is processed to 24 X 8440( )?
2. One copy of Exhibit C, Employee Deductions and Agency
Contribution, Federal Employees Health Benefits Act, in
support of item 1.
The United States Disbursing Officer processing payrolls for the agencies
will detach the extra copy of the SF 1166, SF 1128, or other document for which
an entry is to be processed to 24 X 8440( ) and the supporting Exhibit C, and
indicate on these documents his usual stamp and accounting date. These docu-
ments will. be accumulated for the U. S. Civil Service Commission for transmit-
tal with Treasury Department's copies of the SF 1218 and 1221 to the State
Department. The State Department will transmit these documents with the
Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120042-8
 Ott !chment 1 to AI prt 1,60( Base 2003/08/13: CIA-RDP86-00964E 0100120042-8
'rcasury DepartmentTs copies of SF 1218 and 1221 in order for the Treasury
)epartment to indicate the accounting month on the documents before trans-
ii.tting them to the Commission.
c>~ut processing of Exhibit C required
Exhibit C will be the basis for the Commission to compute the amount due
he respective carriers. Carriers must be paid at the earliest practicable
rate. Therefore, Exhibit C will be submitted to the applicable disbursing
r.fficers for transmission to the Commission on or before the payroll payment
rate. Agencies with a normal payroll payment lag following the end of the
)ayro-i1 period should experience no difficulty furnishing the disbursing
ff?icer with Exhibit C because of the pre-determined control totals provided
~r under their accounting system. Any necessary adjustments can be included
ui the next Exhibit C.
echanization
Those agencies operating a mechanized payroll may find that data required
Exhibit C can be processed mechanically.
[hint outs of the identical data required on Exhibit C may be acceptable
:fl long as the information in the heading and at the end of the form is also
urni shed .
Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120042-8
 Approved For Release 2003/08/13 : CIA-RDP86-00904R4Ab~i-?0~2b042-$x% l02/ , $ 4
Exhibit A '`
0:ption 1
Self alone
1
O11
Self and family
2
012
Female - Nondependent husband
3
013
Option 2
Self alone
4
014
Self and family
5
015
Female - Nondependent husband
6
016
Option 1
Self alone
1
021
Self and family
2
022
Female - Nondependent husband
3
023
Option 2
Self alone 4 024
Self and family 5 025
Female - Nondependent husband 6 026
Same system
Note: The code applicable to a specific plan and various options and
levels of coverage will be assigned by the Civil Service
Commission.
The importance of coding at this time is the decision to use
three digits.
Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120042-8
 Approved For Release 2003/08/13 : CIA-RDP86-00964R000100120042-8
CONTROL REGISTER
tG~ Y
PAYROLL BLOCX NO.
FEDERAL r'.?LOYEES HE LTN @E- ITS ?CT
.EF
F
LZCAT1 ,,.
PAYROLL PERIOD
O': TO
6 CL0iPIGS TER'! 1TE0
ITOT 1. r'sRC '
R.%T E
TO BE ECU=CT EO
V
jz i
C::..,:.0
;r
ii LL== I~
.+?.D TRfNSF S
G
E L ;; 0 P
"
OT:-F-R
E S +'[,R
L#Ys
AGE Y
E.PLOYCE
AGE~Cy
rcTt1
f
1
~
1
# i
{
B
I
G
+
1
E
{
IE
i
t
C
t
1!
1
~
 ST'NOARU Fora NO. Approved Fob Release 2003 J T C[i4-RDP86-00964R %1%04o8 DC 1024sS4
EN'I, EIs DEDUCTIONS AND AGI NCY CONTRI61T6ONS
I-'UX RAL EMPL.OYECS HEALTH BENEFITS ACT
q'fPA1-,THZNT OR ESTAF.SI_ I SI+YIENT
STATION NO.
REPORT W.
L+++RCAU, DIVISION OR OFFICE
PAYROLL PL.RIOD
FROM
TO
LOCATION
UNI.
NT
ENrDOLLNENT
ENROLLMENT
ENROLLMENT
ENROLL. ME r
COX'E
____
C.HtRCE
COCA:
CHARGE
CODE
CHARGE
CODE
CI4ARGE
CODE
CHARGE
EIAILOYEE
DEDUCTIONS. . . . . . .
AGENCY
CONTRIBUTIONS. . . ?
TOTAL ENROLLMENT
CI1i RGE AS DISTRI-
SUTED BY CODE ABOVE. . $.
PAID BY CI.ECK NO.
DATE
Ap
rove
For Release 4
0131t
8113 : CIA-RD
6 0b96402000100120042-
DATE