SURVEYS AND RELATIONSHIP WITH COST ACCOUNTING STANDARDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89B00552R000700050024-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 15, 2016
• Document Release Date: January 7, 2004
• Sequence Number: 24
• Publication Date: June 16, 1975
• Content Type: REGULATION

Approved For Release' 2004/03/18 : CiA-RDP89B00552R000700050024-2
a_6 Tune 1.975
C kD 1hotrUction No. 8
SU&W..T: & rveys aaaxt :relationship with Cost Accounting Standards
1. The attach i survey ;fears., No. 3771 dated April 15r(5.9 has been deeigue(I
to cwmeto 'ee with disclosure. staatements required by the Cost Acc ting Standards
'd under public law 91+-379? At the present time, each company vahich together
with its s0basidie:"ies received net awards of negotiated contracts during either
of Federal. Fisca~. Years 197'2 . or 1973 totaling more than $10 million (originally y
$30 i illicm), ad is entering into a negotiated cctttract' in excess of $100,000,,
is required to Me a disclosure staateennt. (The Board has proposed that ef-
fective 1 Jul. 1975 mf eamp r, including subsidiaries, that hags received
negotiated nas.i!e a1 defense prime contracts subject to Cost Accounting Standards
totsl'!ng ssnr than $10 al.1114n, In Federal Fisczal Years 1974 .or 1975 be required
to Stftit a, lisp stst nt.) In the eMt the entity being surveyed has
e pl*t 'am CUB-W- X (Disclosure Statement) ` a copy, if not previously
f4 bo the A?en y di=34 be secured f5rom the contractor. Page 1 through
4 (j a d ta~est4.41 ), at the *ttacbed will be completed by the auditor but
puts I maJi III I will be 1re plawoed by the ec ntrsator $ a e pleted Pam
CAED.D91. All pertinent pe staid' the sttsch d survey form will be competed
+sgV~i.icn? Boar those ecm ies not required to file a disclosure statmwt
a#Ad M~sb se are entering into a negotiated. contract in excess of $100,000?
2. The acted survey f we to be used Vw the Vul=e of deteridn ng
Usaiguy tdy*thes a prospeaetive Agency contractor an acceptable cost se.
t eyeten tar ready detexminatiaa of agatract costs. .Additionally it will
bn tts d M arttbseq aeit soots to enure consistent cost treat teat in the prepar
arertiras of 'nom as accommUtian of actual costs, corns .tent aa-ppliaatice on
ocr tyro is with other Om+ tt contracts # and also to determine eahetber
carttals.*tu is sjstan basis a aplied with dOy prat ]gated Cost Accounting
3, t b t i 1 J i Cast ?Q~g Btaandards were applicable to a all
Imred awtacaee0r" in ? s or .0001 aaaanly to those contractors wbn
goo - fiqutmd to file diselestare star-slits), unless specifically exempt by the
oat ar0asaaAfettft mod. Mffecti'ee 1 Jaxea ry 3.~'T5a the CABS has wed, the
ftvJkold 3ea"X of amts subject to Cost Accounting Standards from $300,000
tot.C00-. After a, atutra~otcr reaoiv s we $W,,000 contract aal]. subsequent
era s enr 3,004 will. also be subject to Coot Accounting Standards.
~F? so W a0ors we expected to becN'ale fanil iaar with Cost Aa3c eating
Aids as t we pa+dspt'# ted, revlw contractor's practices =A advise
MM it t in eoWJaw*. pail r vp will be made to ensure compl to and/or
!bra to *=bract price for failure to comply or to
db13 +t~oasis~ 'cast masftmaitie p nactiees in pricing proposals and in so-
# tyt ash a+eprting contract perfo to dataa.
ft d e t e r UP f Uawl Cost Aca tt Stw1ards have been Usued:
OAS w a ? Colesfs*gl1r *4 In Ott Aa3 manalati34,, eM Bep rting
Coasts ? a#Rrct ive IrOVIV no exemptions.
CAB A 02 - Consist= cy In Alloesti Casts Incurred for the Bane
Purpose: - effective 7/03172 - no exe rptious.
C" 403 - A.l~loovew,ticeaa of Hwe OlTice 1tpen*eaaa to t3egw nos -
effective 7/01/73 (to be fol.lowvd by each ccatraetor
as of the beginning of his next fiscal. year after
9/30/73) HAMPUM - those contractors taho are not
requtr d to Sundt dtselowre statements.
Approved For Release 2004/03/18 : CIA-RDP89B00552R000700050024-2
 Approvor Release: 2004/03/18: C1A-RDP8552R000700050024-2
DTs OWVOys and Reiaa`tiaasaahip with Cost Accounting Standards
CAB 104 - Gapi~t4+t of Tangible Aasaets - effective 7/01/73
(Appiieable to scorned e xpeadttus: - s for acquiaian of
tangible capital assets during the eontaractor ? e next
fiscal year beginning on or after 10/01/73.) - no
ptims.
CM 1 -
A
ccmmting;; for Vicaa11.owable Cuts - 1 'eetive 4/01/74 -
~
y.
no i iuieo
coat ACtacating Periods - effective 7/01/74 - no
exalatic>ase.
CAS T Use of Std Costs fCqr Direct I4ateriaa,l and Direct
Labe - effective 10/01/74 - no exempt&ona.
CAB 40 - Acoa tb . fbr Coats of Compensated Personal Absence -
effective 7/01/" .? no exmvuces.
CO W - D o ti of amble. Capital Assets - effective
73 does not ripply here ~aztiaaa for the
use of tangible capital assets is based on use air
1=M w" as for by the pravisi m of M06-734
east pz1ncip1es for ffiducstia . instutiaas); PM-74-4
$ for detds nine casts applicable to , to
ailed castraoU with state and loawa goss ernments) - or
saber sal Wopxiste todessl Prau-'Axrdmntt Ieegtl1aticaes.
(Altbov& the etfeoti.'a . date is 7/01/77 the Senate
tto0 is ae-eri mtay i sestitaeating to doton
wbetb r the Btalndard. 'Imposes swch an unresact sable
brim ca industry that it is inconsistent with
Bhti Ream Me Policy and eo mtt psocurewnts
a alez+ ives. )
Peopowd CAB 111- AUooaation of V mineas Unit General arA
.A+baitaist raUve a to cost Objectives.
Psweed CAB h U . Ave t-ing for Aoquisit lon Coasts of
.)aterisls.
6. its we expeo sad, to w me Yam No. 3771 (or secure a copy of Parmt
CAMMI# It net alr*W in OW files) an, these centraactore with vbaan we hairs a
t 491 vb2mm a of business, an their next visit.
Chief
Commercial Byast and Audit Division