[157-10014-10144.pdf — page 193]
HR 230-8c(3)SECRETPLANS, PROGRAMS, AND PROJECTSthe application of funds is a matter of negotiation. (NOTE: Operational loans shall be handled in accordance with provisions of HR 30-9 and chapter IX of HНВ 30-1.)(c) Subsidy. A subsidy is the contribution of funds or materiel to an instrumentality by the Agency, with the Agency acquiring no equity in the assets nor right of participation in either the income or the profits of the entity. (Payments to foreign liaison services are excluded from this definition.) There are two types of subsidy:(1) Controlled. A controlled subsidy involyes support of an instru- mentality whose income is primarily derived from Agency funds and which is therefore largely dependent upon such support. To the extent that the Agency is able to exercise control it does so through the formulation of budgets, the requirement for financial accountings, and the application of funds. Where a project consists of a combination of separate subsidy and proprietary instrumen- talities, proprietary regulations will be applied to the proprietary instrumentality.(2) Noncontrolled. A noncontrolled subsidy involves support of an instrumentality to which negotiated fixed-sum incentive. pay- ments of Agency funds are made, but budget formulation and the exercise of discretion over expenditures are at a point es- sentially beyond Agency control Evaluation of performance is a matter of operational judgment, not necessarily related to the amount of the fixed-sum payments.(d) Funding and Payrolling Instrumentalities. A funding or payrolling instrumentality is used to fund or payroll Agency activities when, for reasons of security or cover, funding or payrolling must be accomplished through an overt mechanism. The Agency has legal or beneficial owner- ship of a funding or payrolling instrumentality through appropriate nominee or legal entity arrangements. Although these instrumentalities are proprietaries, they operate under special authorizations that may vary substantially from the requirements of this regulation and HHB 230-1.(3) PROJECT OUTLINE. A project outline is a written plan for accomplishing programmed operational objectives. Upon approval by appropriate au- thority it becomes the framework within which the project is implemented and its effectiveness initially evaluated.(4) PROJECT RENEWAL. A project renewal is the approval after evaluation by appropriate authority for continuation of a project beyond the period covered by its initial approval or previous renewal. The renewal may update or supersede certain provisions of the project outlines(5) ADMINISTRATIVE PLAN. An administrative plan is a supplement to the project outline which upon approval by appropriate authority consti- tutes the administrative framework within which the instrumentality is to operate. To that extent it replaces all Agency regulations, except this regulation and HR 230-9, in the management of project instrumentalities, their internal activities and non-Agency employees. An administrative plan is required for all projects establishing and utilizing proprietaries, operational investments, funding and payrolling instrumentalities, and controlled subsidies.(6) TERMINATION. Termination is the discontinuance of a project or an Instrumentality, upon written approval of the Deputy Director or Head of Independent Office concerned.(7) LIQUIDATION. Liquidation is the settlement of accounts of an instru- mentality, the final disposition of its remaining assets, and dissolution of the instrumentality.Revised: 1 August 1959 (454)