Francesco/who-killed-jfk huggingface dataset:
[157-10014-10144.pdf — page 206]
S-E-C-R-E-THHB 230-14nn. FINANCIAL ACCOUNTING AND REPORTING(1) The instrumentality will maintain an accounting and a financial reporting system consistent with the dictates of cover and security and approved by the Director of Finance.(2) The accounting system will provide(a) full recording of the financial operation of each instrumentality;(b) control over and accountability for all funds, property, and other assets for which each instrumentality is responsible;(c) information required for integration of instrumentality accountings into the accounting records of the Agency;(d) any other financial or cost information required for effective management of the instrumentality by the responsible Operating Official.(3) The instrumentality will submit the following financial statements and related data on at least a quarterly basis:(a) Balance Sheet.(b) Statement of Income and Expense.(c) Summary Statement of Cash Receipts.(d) Summary statements of each transaction in Certificates of Deposit and interest-bearing accounts.(e) Schedule of salaries paid to Agency staff and contract personnel.(f) Schedule of salaries and expenses, classified by general categories, paid to directors and principal executives of the instrumentality.(g) Schedule of cash in bank accounts with certification that reconciliation with instrumentality accounts has been made and reviewed.(h) If an asset has been written off during the reporting period, a schedule also will be included with the financial report describing the item(s) written off and the circumstances that support the writeoff action. Write-off action is subject to the approval procedures in HHB 30-1 chapter VIII and HR 45-6.
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# S-E-C-R-E-TPLANS PROGRAMS, AND PROJECTSHHB 230-140(i) Any other financial reports required by the Office of Finance and concurred in by the Agency component responsible for the project.(4) The statements will be certified as true and correct by the principal agent of the instrumentality. The statements will clearly reflect Agency funding for the period covered, or such funds will be identified in a covering memorandum signed by the appropriate Agency approving officer transmitting the statements to the Office of Finance, including specific identification of the manner in which the funding is recorded on the books of the instrumentality. In addition, the covering memorandum will identify all fictitious accounts and amounts included in asset, liability, capital, income, or expense accounts, the balances of which are distorted to cover present or anticipated Agency funding or interproject transfers of funds or equipment. If overt records must be deceptive for cover purposes, supplemental reporting should give complete and accurate information for internal Agency records.## BORROWING, LENDING, AND PLEDGING OF ASSETSThe prior concurrence of the Director of Finance and approval of the Deputy Director having jurisdiction over the instrumentality are required for borrowing or lending funds or pledging any asset by an instrumentality. Bank overdraft privileges will be considered as borrowings and require the same concurrence and approval as stated above. Notional borrowing or lending in order to pass Agency funds between instrumentalities for approved funding purposes does not require the above concurrence and approval.## INVESTMENT POLICYp. (1) When an Operating Official wishes to invest funds that have been approved for retention in accordance with paragraph 4b (2) above or funds that are a portion of the three months normal operating cash requirements, he will forward to the Director of Finance for his approval a memorandum recommending the investment of funds. The memorandum recommending the investment of funds will provide the following data:(a) Reason for the investment.(b) Types of investment recommended, restricted to the following:(1) U.S. Government securities.(2) Interest-hearing accounts or Certificates of Deposit in member banks of the Federal Reserve System only.Revised: 29 October 1974![CIA logo]NW 50955 DocId:32403532 Page 208JUL 30 1975CIA
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# PLANS, PROGRAMS, AND PROJECTS(3) Non-U.S. Government securities; list specific issues recommended for purchase.(c) Maximum amount recommended for investment in each type.(d) Length of time investment of funds is anticipated.(e) In the event of investments in securities, state the name in which they will be registered and the type and location of safekeeping facilities to be used for the securities.(2) After initial approval of the Director of Finance, the instrumentality may, at its discretion, make continuing investments in U.S. Government securities or in interest-bearing accounts or Certificates of Deposit of approved bank(s) having maturities of one year or less. Each purchase of Certificates of Deposit having maturities of greater than one year and each investment in non-U.S. Government securities must have prior approval of the Director of Finance and the Comptroller.q. REAL PROPERTY AND OFFICE FURNISHINGS(1) The lease of real property requires approval of the designated Agency approving officer for the project concerned. Purchase, construction, improvements, or alterations of real property (except improvements or alterations included in approved operating budgets) require approval of the designated approving officer for the project concerned and, in appropriate cases, the technical authorization of the Director of Logistics. (The component responsible for the project will maintain a record of real property held by the instrumentality, including the following information as applicable: country or state of location; type, i.e., purchased or leased; size, i.e., square footage of building and acreage of land; purchase price; permanent improvements or alterations totaling $1,000 or more; annual rental and term of lease, unless the property is acquired for less than 12 months and the rent does not exceed $250 per month. This information will be made available to the Director of Logistics upon request.)(2) The procurement of office furnishings not included in approved operating budgets requires the prior written approval of the Operating Official responsible for the project.LIMITATION ON INDIVIDUAL DISBURSEMENTS AND CONTRACTUAL ARRANGEMENTSExcept for funding transactions, any disbursement in excess of $5,000 or contractual arrangement of more than 12 months' duration requires the prior approval of the designated Agency approving officer for the project concerned.
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S-E-C-R-E-TPLANOGRAMS, AND PROJECTSHHB 230-14ss. SPECIAL ADMINISTRATIVE EXPENSE POLICY(1) Travel and subsistence expenses incurred in behalf of the instrumentality by authorized representatives will be paid on the basis of actual and necessary expenses. When actual and necessary expenses exceed the maximum allowable rate established for reimbursement for actual expenses under HR 22-7, the claimant will provide detailed justification. Authorized representatives may include stockholders, officers, directors, employees, any individual retained in a professional or independent contractor capacity on a fee basis, and staff agent or contract personnel wholly integrated into the project. Air transportation less costly than first-class will be used to the extent practicable. When first-class fares are paid, such payment will be justified in writing in the files of the instrumentality.(2) Operational entertainment expenses incurred by any of the above personnel will be reimbursed on an actual cost basis in accordance with HHB 30-1 chapter IX, to the extent that such expenses are reasonable and necessary to the accomplishment of operational objectives.(3) Directors of instrumentalities may be paid up to $50 per day, and travel and subsistence expenses for their attendance at directors' meetings, except that the payment of $50 per day will not be allowed to directors having an employment re- lationship with the Agency or with the instrumentality.(4) Expenditures authorized in paragraphs s(1), (2), and (3) above will be reviewed at periodic intervals by the responsible case officer to evaluate the necessity for such expenditures and their reasonableness.t. TERMINATION AND LIQUIDATION(1) The Administrative Plan will provide that when a proprietary project or part thereof ceases to have operational value or will cease to have such value in the immediate future, the responsible Operating Official will prepare and submit to the Deputy Director concerned for his approval a proposal to terminate the project or a part thereof.(2) The proposal will set forth any conditions or considerations that have a bearing on the decision to discontinue the project or a part thereof and include the date that it is recommended operations cease.(3) The liquidation plan will be prepared in accordance with the provisions of paragraph 6 below.
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S-E-C-R-E-TPLANS, PROC IS, AND PROJECTSHIIB 230-15(4) If the proposal includes deactivation of any project instru-mentality, together with a disposition of a portion of itsassets, the memorandum will set forth, in an attachment, in-formation concerning planned disposition, after settlement ofobligations, of cash and noncash assets of the instrumentality.The plan for partial disposition of assets requires the sameapprovals as a liquidation plan.5. CONTINGENCY CASUALTY PLANA contingency casualty plan should be prepared for instrumentalities ifrequired by HR 20-49.6. LIQUIDATION PLANWhen the Deputy Director concerned has approved liquidation and dis-solution of a project instrumentality, a liquidation plan will be developedby the responsible Operating Official to cover liquidation of the assetsand liabilities of the instrumentality as required by HR 230-8 and inaccordance with the format and substance set forth below. It will beforwarded for approval as provided in HR 230-8d.a. Identification of instrumentality(s) to be liquidatedb. Approval for termination (cite approved proposal as required inparagraph 4t(1) above)c. A concurrence sheet showing concurrences in the applicable pro-visions of the liquidation plan by the designated representativesof the General Counsel; the Director of Finance; the Chief, Coverand Commercial Staff; the Director of Logistics, when real andpersonal property holdings are involved; other Agency componentswhen their functional responsibilities are involved, and the Comp-troller when assets of an estimated market value in excess of$50,000 are involvedd. Financial StatementsFurnish a current statement of assets and liabilities, and a pro-jected statement of assets and liabilities at date of terminationto include terminating expenses.e. Method of Liquidation(1) Party responsible for actual liquidation. Explain how liquida-tion of the instrumentality will be handled, such as by princi-pal agent, cleared and witting attorney, etc.RECEIVED FROMOCT 30 1975CIARevised: 29 October 1974S-E-C-R-E-T E2 IMPDET CL BY: 059687NW 50955 DocId: 32423532 Page 211 13
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HHB 230-1PLANS, PROGRAMS, AND PROJECTS.(2) How will the instrumentality be disposed of?(a) Will it be disposed of intact? If so, by bid, negotiation, gift, etc.; or(b) Will the instrumentality shell be transferred to another Agency project; or(c) Will the charter be terminated; or(d) Will the instrumentality continue to operate without Agency participation; or(e) Will the instrumentality be deactivated but retained in a dormant state for future possible use?f. Requirement, if any, for additional funds to cover liquidation and estimated date of financial liquidationg. Disposition of Assets and Liquidation(1) If the instrumentality is not to be sold intact, how will noncash assets be disposed of? By bid, 'negotiation, transfer to another Agency project, gift, etc.?(2) Include a positive recommendation to be developed in consulta- tion with the Director of Finance for the disposition of all cash assets including funds recovered or realized through the liquidation process.h. Final AuditThe plan should provide for a final audit before the instrumentality is liquidated or sold.i. Authorization for adjustment of Agency financial records for profit or lossj. A positive statement that the Office of Finance is authorized to make necessary adjustments to the instrumentality's investment account based on the final liquidation financial statement7. FISCAL ANNEXESa. GENERALUse of the fiscal annex is based on the principle that accounting requirements should be determined by the nature of the relationship between the instrumentality and the Agency, the degree of control
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# PLANS, PROGRAM AND PROJECTSHHB 230-17bexercised by the Agency and, finally, the availability of meaningful accounting data within the instrumentality. In this light, fixed, pro forma accounting requirements are not sought; rather, each case will be approached individually through the fiscal annex with a view to establishing accounting requirements that will assure that use of Agency funds is controlled and adequately documented to a degree consistent with the nature of the instrumentality and its relationship with the Agency. A fiscal annex is required for all noncontrolled subsidies.b. ACCOUNTING PRINCIPLESThe purpose of the fiscal annex is to document the particular fiscal realities of an individual noncontrolled subsidy (HR 230-8c(2) (c) (2)). The fiscal annex may authorize appropriate deviation from normal Agency accounting requirements. It should establish funding arrangements, specific accounting controls, financial reporting requirements, and writeoff provisions consistent both with the fiscal realities and with the Agency's responsibilities for proper use of funds. Accounting control should be established through the use of Agency advance accounts, intransit accounts, and memorandum accounts to follow the flow of funds from the case officer to the ultimate recipient.c. FINANCIAL STATEMENTSProvision should be made in the fiscal annex for financial statements to be used as the final element of accounting control through use of Agency memorandum accounts(1) when financial statements are the normal practice of an instrumentality;(2) when they are available to the Agency within the operational relationship; and(3) when the Agency contribution is identifiable therein.d. USE OF CERTIFICATION AS EVIDENCE OF FULFILLMENT OF THE PURPOSES FOR WHICH FUNDS WERE ADVANCEDWhen meaningful financial statements are not available and the nature of the operation is such that insistence upon financial statements is inadvisable, it is considered appropriate and consistent with Agency practice to provide for documentation of "services rendered" in the form of a certification signed by an appropriate case officer and approved by the designated Agency approving officer for the project concerned. Such certification executed on requests for advance subsequent to the initial advance should read substantially as follows:
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S-E-C-R-E-TPLAN PROGRAMS, AND PROJECTSI certify that to the best of my knowledge and belief funds advanced to this project have been or are being used for the purposes for which they were drawn and further advances are warranted.In these instances appropriate evidence of receipt of funds by the instrumentality or its representatives normally will constitute full accounting for use of the funds and no memorandum accounting procedure need be used.e. USE OF CERTIFICATION FOR OPERATIONAL REVIEWIn addition to the use of certifications to support use of funds, Operating Officials occasionally desire to use this procedure to ensure that appropriate periodic review of the financial aspects of the instrumentality is accomplished by responsible officers. In such cases the fiscal annex may provide that certifications will be the basis for recording and clearing the memorandum account even though accounting requirements are satisfied prior to such recording and clearing.f. FINANCIAL DATA FOR OPERATIONAL PURPOSESOccasionally operational interest in projects requires that certain financial information be obtained from the instrumentality. This information ordinarily consists of data regarding the use of funds that indicates that such use is, in general, consistent with the purpose of the project. Although these data are of accounting significance, the format, arrangement, and objective of the reports may be in a form that is not susceptible to technical treatment and recording in the accounts of the Agency. In such cases the fiscal annex should indicate that the financial report is required for operational but not accountability purposes.g. REIMBURSEMENT FOR OPERATIONAL DEFICITSIf the amount of Agency support is determined by the operating deficit of an instrumentality, payments must be supported by financial statements or other satisfactory evidence establishing the amount of the deficit.h. FORMAT OF FISCAL ANNEXESAlthough the format is not rigid, the sections described below are the minimum requirements of a fiscal annex. Other sections may be added as necessary.
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PLANS, PROCIS, AND PROJECTSHHB 230-17h(1)(1) Purpose and InstrumentalityFurnish a brief, sterile statement of the nature and purpose of the project and instrumentality to be used. Include a brief description of the Agency's relationship with the instrumentality, showing the degree of control that the Agency can exercise over the facility in its use of and accounting for funds.(2) FundingDescribe the basis for advances to the instrumentality, and the mechanisms to be used in introducing funds into the activity; state whether it will be funded by headquarters or specified field stations. Any special or unusual requirements should be set forth in this section.(3) Accounting and WriteoffDefine the accounting requirements applicable to the instrumentality and prescribe the documentation required to permit certification and writeoff by the authorized certifying officer. The use of memorandum accounts should also be described in this section.DISTRIBUTION: SPECIALRECEIVED FROMOCT 20 1975Revised: 29 October 1974
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OGC-03313 February 1975MEMORANDUM FOR: Director of Central IntelligenceSUBJECT: Proprietary Withdrawals and the Contingency Reserve1. I am attaching a memorandum of law entitled "Proprietary Withdrawals and the Contingency Reserve." This was discussed with you last week.2. It is obvious that a number of policy decisions and actions will flow from this decision. Our congressional committees need to be appropriately informed, the Comptroller will need to work out certain adjustments with OMB, and I also believe there are certain policy decisions that the Comptroller will have to work out with Finance with respect to pending transactions which would have placed returns from proprietaries in the Reserve. I shall send copies of this memorandum of law to all interested components and will assist them in any way they wish.![signature of John S. Warner]JOHN S. WARNERGeneral CounselAttachmentcc: DDADDOOLCComptrollerD/FinanceRECEIVED FROMOCC:JSW:sinOriginal addressee1- ER via Ex Secty w/attCIA OGC Subj: APPROPRIATIONS w/att1- ChronoSECRETE-2 IMPDETCL BY 000276NW 50955 DocId: 32423532 Page 216
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OGC 75-03303 February 1975MEMORANDUM OF LAWSUBJECT:Proprietary Withdrawals and the Contingency ReserveREFERENCES:A. Memo to DCI fr C/CCS, dtd 8 Jan 74, subj:Project MHMUTUAL PolicyB. Memo for the Record fr Comptroller, dtd 19 Aug 74,same subject1. Reference A recommended that there be returned to the Agency   Reserve starting with calendar year 1973 that portion of MHMUTUAL annual   profits not required for Project needs. The Director approved the basic   paper on 8 February, but noted "surplus funds from MHMUTUAL earnings   will be returned to the Treasury rather than the Agency Reserve."   Reference B recorded a telephone decision by the Director that "[w]hen   funds are withdrawn from proprietaries, they will be transferred to the   Contingency Reserve...."2. The purpose of this paper is to examine the legal aspects of these   policy decisions. The concept of the Reserve was established in 1952 as a   means by which the Agency would have flexibility to fund projects or   activities which had not been contemplated in the normal appropriation   request. Its purpose was to create a mechanism to provide funds for   unforeseeable requirements which would be more rapid and secure than   the supplemental appropriation procedure employed by other Government   agencies. The Reserve has been funded by direct appropriation and by   transfer of unobligated appropriations at appropriate times after the close   of the fiscal year. Funds were and are released from the Reserve only with   the approval of OMB with subsequent notice of each Reserve withdrawal   furnished in writing to the two appropriations committees.
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3. In lieu of a specific annual appropriation act for the Agency, OMB by letter notifies the chairmen of the two appropriations committees that the Agency budget of a specific number of dollars is contained in the DOD appropriation request. The letter also specifies the accounts in which these funds are located. In the past where there were appropriations to the Reserve, that letter would specify the amount of the operating budget and the amount to be applied to the Reserve. After committee action, appropriate letters, sometimes separately and sometimes jointly signed by the chairmen of the two committees, are sent to OMB specifying what has been approved for the Agency budget and confirming the accounts in which they are located. Thereafter, the necessary transfers to the Agency are accomplished pursuant to the authority of Section 5 of the CIA Act of 1949, which was specifically worded so as to permit appropriations for the Agency to be placed in the accounts of other agencies and then transferred to the Agency free of all limitations and restrictions on the appropriation from which transferred. The effect of this was to permit those funds to be expended under the authorities of the CIA Act of 1949, rather than the authorities of the appropriation acts from which transferred. A transfer under other authority such as the Economy Act would require that the funds be spent in accordance with limitations of the appropriation from which transferred, both as to purpose and annuality. Unlike any other agency, our "appropriation act" is the process described above and consists of the following principal elements:a. the OMB letter;b. the chairmen letters;c. the DOD appropriations act approved by the whole Congress and signed by the President; andd. the transfers to the Agency approved by OMB and authorized by Section 5 of the CIA Act of 1949.4. The question then arises whether a return of money from a previously established proprietary can be placed in the Reserve and later expended by the Agency under the law. There are several provisions of law based on Article I, Section 9 of the Constitution, which states that "no money may be drawn from the Treasury, but in consequence of appropriations made by law," Twenty years after the Constitution was ratified, the act from which present law derives was enacted. That law is section 628 of Title 31 of the U. S. Code which states:Except as otherwise provided by law, sums appropriated for the various branches of expenditure in the public service shall be applied solely to the objects for which they are respectively made, and for no others.