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>1/ot/  Regulation  381-141 
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DA  LABEL  •)•) 
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PREVIOUS  EDITIONS  OF  THIS  LABEL  ARE  OBSOLETE
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Headquarters 
Department  of  the  Army 
s  Washington,  DC 
1 28  March  1986 
'Army  Regulation  381-141 
Effective  28  April  1986 
Military  Intelligence 
Provisions  for  Administration,  Supervision,  Control, 
and  Use  of  Intelligence  Contingency  Funds  (U) 
This  UPDATE  printing  publishes  a  revision  that 
is  effective  28  April  1986.  Because  the  structure 
of  the  entire  revised  text  has  been  reorganized, 
no  attempt  has  been  made  to  highlight  changes 
from  the  earlier  regulation  dated  1 0ctober  1983. 
By  Order  of  the  Secretary  of  the  Army: 
JOHN  A.  WICKHAM,  JR. 
General,  United  States  Army 
Chief  of  Staff 
Official: 
R.  L.  DILWORTH 
Brigadier  General,  United  States  Army 
The  Adjutant  General 
(U)  Summary.  This  regulation  establishes 
uniform  procedures  for  the  use,  administration, 
supervision,  and  control  of  certain  funds  within 
Department  of  the  Army  appropriations  re- 
served for  intelligence  and  related  activities. 
(U)  Applicability.  This  regulation  applies  only 
to  the  Active  Army  since  emergency  and  extra- 
ordinary expenses  are  not  included  in  U.S. 
Army  Reserve  (USAR)  or  Army  National 
Guard  (ARNG)  appropriations. 
(U)  Impact  on  the  New  Manning  System. 
This  regulation  does  not  contain  information 
that  affects  the  New  Manning  System. 
(U)  Internal  control  systems.  This  regula- 
tion is  subject  to  the  requirements  of  AR  1 1-2. 
It  contains  internal  control  provisions  but  does 
not  contain  checklists  for  conducting  internal 
control  reviews.  These  checklists  are  being 
developed  and  will  be  published  at  a  later  date. 
(U)  Supplementation.  Supplementation  of 
wis  regulation  and  establishment  of  forms  other 
than  DA  Forms  are  prohibited  without  prior 
approval  from  Office  of  the  Assistant  Chief  of 
Staff  for  Intelligence,  HQDA  (DAMI-PBM), 
WASH  DC  20310-1030. 
(U)  Interim  Changes.  Interim  changes  to  this 
regulation  are  not  official  unless  they  are 
authenticated  by  The  Adjutant  General.  Users 
will  destroy  interim  changes  on  their  expiration 
dates  unless  sooner  superseded  or  rescinded. 
(U)  Suggested  improvements.  The  propo- 
nent agency  of  this  regulation  is  the  Office  of 
the  Assistant  Chief  of  Staff  for  Intelligence. 
Users  are  invited  to  send  comments  and  sug- 
gested improvements  on  DA  Form  2028  (Re- 
commended Changes  to  Publications  and  Blank 
Forms)  directed  to  HQDA  (DAMI-PBM), 
WASH  DC  20310-1030. 
(U)  Distribution  restriction  statement. 
This  publication  contains  technical  or  opera- 
tional information  that  is  for  official  Govern- 
ment use  only.  Distribution  is  limited  to  U.S. 
Government  agencies.  Requests  from  outside 
the  U.S.  Government  for  release  of  this  publica- 
tion under  the  Freedom  of  Information  Act  or 
the  Foreign  Military  Sales  Program  must  be 
made  to  HQDA  (DAMI-PBM),  WASH  DC 
20310-1030. 
(U)  Distribution:  Distribution  for  the  regula- 
tion is  special  for  Active  Army  and  none  for 
ARNG  and  USAR. 
*(U)  This  regulation  supersedes  AR  381-141, 1  October  1983. 
28  MARCH  1986  UPDATE  •  AR  381-141 
^Jjall^MU' 
'V^k
(U)  Contents  (listed  by  paragraph  number.) 
Chapter  1 
General  Policies 
Purpose  and  policy  *  1-1 
References  •  1-2 
Explanation  of  abbreviations  and 
terms  •  1-3 
Use  of  funds  -•  1-4 
Responsibilities  •  1-5 
Access  to  ICF  accounts  •  1-6 
Chapter  2 
Expenditures  from  Intelligence 
Contingency  Funds 
Section  I 
Conditions  and  Payment 
Conditions  required  for  use  •  2-1 
Payment- of  claims  •  2-2  ......... 
Section  II 
Authorized  Expenditures 
Contact  expenses  •  2-3 
Bilateral  payments  •  2-4 
Expenditures  for  sources  •  2-5 
Payments  to  persons  having  special 
skills  •  2-6 
Special  operational  clothing  •  2-7 
Temporary  duty  (TDY)  expenses  •  2-8 
Local  travel  payments  •  2-9 
Permanent  change  of  station  (PCS) 
allowances  •  2-10 
Expenses  for  purchase  and  operation  of 
motor  vehicles  •  2-1 1 
Payments  and  deductions  for  meals  •  2-12 
Intelligence  property  •  2-13 
Purchase  of  documents  and 
publications  •  2-14 
Communications  services  •  2-15 
Printing  and  reproduction  services  •  2-16 
Fees  for  credit  investigations  •  2-17 
Fees  for  certificates  and  transcripts  •  2-18 
Housing  and  living  expenses  •  2-19 
Medical  expenses  •  2-20 
Real  estate  facilities  •  2-21 
Business  expenses  •  2-22 
Disposition  of  income  and  refunds  •  2-23 
Training  expenses  •  2-24 
Special  payments  for  minor  operational 
expenses  •  2-25 
Section  III 
Restrictions  on  Certain  Expenditures 
Expenditures  requiring  prior 
approval  •  2-26 
Unauthorized  expenditures  •  2-27 
Chapter  3 
Appointment  and  Responsibilities  of 
Agent  Officers  and  Custodians 
Section  I 
Appointments 
Objectives  •  3-1 
ICF  class  B  agent  officers  •  3-2 
ICF  class  A  agent  officers  •  3-3 
ICF  class  A  custodians  •  3-4 
Special  custodians  •  3-5 
-Section  II 
Procedures 
ICF  class  B  agent  officers  •  3-6 
Class  A  agent  officers  •  3-7 
Class  A  custodians  •  3-8 
Special  custodians  •  3-9 
Claimants  •  3-10  - 
Chapter  4 
Control  of  Intelligence  Contingency 
Funds 
Section  I 
Safeguarding  of  Funds 
Physical  security  requirements  •  4-1' 
Loss  of  funds  •  4-2 
Section  II 
Control  of  Foreign  Currency 
Acquisition  •  4-3 
Accountability  •  4-4 
Conversion  rates  •  4-5 
Recognizing  conversion  gains  and 
losses  •  4-6 
Accounting  for  conversion  gains  and 
losses  •  4-7 
Section  III 
Control  of  Special  Purpose  Accounts 
Withholding  accounts  •  4-8 
Escrow  accounts  •  4-9 
Chapter  5 
Civilian  Clothing  Allowances  __ 
General  *  5-1 
  
C  Allowances  for  cniistea  personnel  *  5-2^ 
Type  of  funds  to  use  •  5-3 
Property  accountability  •  5-4 
Chapter  6 
Audits  and  Inspections  of  ICF 
Accounts 
Section  I 
General  Procedures 
Audits  •  6-1 
Inspections  •  6-2 
Certificates  of  inspection  •  6-3 
Section  II 
Audits 
Internal  audits  by  U.S.  Army  Audit  Agency 
(USAAA)  •  6-4 
Internal  Audits  by  Office  of  the  Assistant 
Chief  of  Staff  for  Intelligence 
(OACSI)  •  6-5  i 
External  audits  •  6-6 
Section  III 
Inspections  and  Internal  Reviews 
Generil  •  6-7 
Comnu^d  inspections  of  class  B  agent 
accounts  •  6-8 
Command  inspections  of  class  A  agent  and 
custodian  accounts  •  6-9 
Class  A  agent  inspections  of  custodian 
accounts  •  6-10 
Inspections  of  class  B  agent  accounts  by 
finance  and  accounting  officers 
(FAOs)  •  6-11 
Responsibilities  of  commanders  *  6-12 
Unannounced  cash  counts  •  6-13 
Audit  or  inspection  of  Special  Finance  and 
Accounting  Officer  (SFAO)  "" 
accounts  •  6-14  t     • 
U.S.  Army  Finance  and  Accounting  Center 
(USAFAC)  Network  Quality  Teams 
(NQTs)  •  6-15 
Chapter  7 
Accounting  Procedures  and  Required 
Forms 
General  instructions  •  7-1 
Disposition  of  records  •  7-2 
DA  Form  703  (Intelligence  Contingency 
Fund  Cash  Blotter)  •  7-3 
DD  Form  1081  (Statement  of  Agent 
Officer's  Account)  •  7-4 
DA  Form  3697-R  (Subvoucher  for 
Disbursement  from  Confidential 
Funds)  •  7-5 
SF  1164  (Claim  for  Reimbursement  for 
Expenditures  on  Official  Business)  •  7-6 
DD  Form  281  (Voucher  for  Emergency  or 
Extraordinary  Expense 
Expenditures)  »"  7-7 — — '-^  — *- 
DA  Form  2362-R  (Subsidiary  Currency 
Ledger)  •  7-8 
DD  Form  1131  (Cash  Collection 
Voucher)  •  7-9 
DD  Form  634  (Receipt  for  Miscellaneous 
Collections)  •  7-10 
Appendixes 
A.  References 
B.  Administration  and  Control  of  ICF 
Checking  Accounts 
C.  Subvoucher  Expense  Codes 
D.  Sample  Cash  Blotters 
E.  Security  Classification  Guide 
F.  Administrative  Procedures  for  Duty 
Appointments 
Glossary 
Index 
« 
I
28  MARCH  1986  UPDATE  •  AR  612-11
Chapter  1  (U) 
^General  Policies  (U) 
1-1.  (U)  Purpose  and  Policy 
a.  (U)  This  regulation  establishes  uniform 
procedures  for  the  use,  administration,  super- 
vision, and  control  of  certain  funds  within 
Department  of  the  Army  (DA)  appropriations 
reserved  for  intelligence  and  related  activities. 
These  funds,  referred  to  as  operation  and 
maintenance,  Army  (OMA)  Appropriation 
Limitation  .017,  are  a  portion  of  the  Secretary 
of  the  Army  (SA)  contingency  funds.  The 
authorization  for  these  funds  is  granted  in  an- 
nual appropriations  acts  in  language  similar  to 
the  following:  "For  emergencies  and  extraor- 
dinary expenses  to  be  expended  on  the  approval 
or  authority  of  the  SA.  Payments  may  be  made 
on  his  certificate  of  necessity  for  confidential 
military  purposes." 
b.  (U)  Intelligence  Contingency  Funds  (ICF) 
will  be  used  only  when  the  provisions  of  para- 
graph 1-4  apply  and  when  the  use  of  ICF  will— 
(1)  (U)  Directly  contribute  to  a  specifically 
identified  intelligence  mission. 
(2)  (U)  Be  for  emergency  expenses  that  could 
not  have  been  planned  or  budgeted  for,  or  for 
extraordinary  expenses  that  can  be  planned  and 
budgeted  for,  but  are  expended  under  the 
authority  of  the  SA  as  necessary  for  confiden- 
tial military  purposes  as  authorized  in  the  An- 
»nual  
Department  of  Defense  Appropriations 
Act,  Title  HI,  Operation  and  Maintenance. 
(3)  (U)  Not  be  as  a  convenience  in  place  of 
traditional  contracting  processes,  to  include 
secure  environment  procurement  practices. 
(4)  (U)  Be  the  last  resort,  i.e.,  no  other  fiscal 
or  contracting  mechanism  is  sufficient  to  ac- 
complish the  intelligence  mission. 
c.  (U)  Before  a  decision  is  made  to  use  ICF, 
the  following  will  be  applied  to  determine 
whether  alternative  funds  or  contracting  pro- 
cedures are  available: 
(1)  (U)  Are  normal  funds,  e.g.,  OMA,  Other 
Procurement,  Army  (OPA),  available  and 
proper  for  the  proposed  expenditure? 
(2)  (U)  Are  normal  contracting  procedures, 
e.g..  Federal  Acquisition  Regulations  (FAR), 
Secure  Environment  Contracting  (SEC),  avail- 
able to  acquire  the  goods  or  services  and  to  pay 
the  expenses? 
(3)  (U)  The  following  are  possible  answers 
to  (1)  and  (2)  above: 
(a)  If  the  answer  to  (1)  and  (2)  above  is 
"Yes,"  ICF  may  not  be  used. 
(b)  If  the  answer  to  (1)  and  (2)  above  is 
"No,"  ICF  may  be  expended  according  to  pro- 
cedures outlined  in  this  regulation  i/thc  condi- 
tions of  paragraph  1-4  apply. 
(c)  If  the  answer  to  (1)  is  "No"  and  the 
answer  to  (2)  is  "Yes,"  then  ICF  will  be  ex- 
pended  using  available  secure  contracting 
^^  procedures. 
B     (d)  If  the  answer  to  (1)  is  "Yes"  but  the 
^  answer  to  (2)  is  "No."  then  ICF  may  be  ex- 
pended according  to  procedures  outlined  in  this 
regulation  if  the  conditions  of  paragraph  1-4 
apply. 
d.  (U)  Necessary  funds  will  be  made 
available  under  existing  DA  fiscal  procedures 
to— 
(1)  (U)  Selected  Active  Army  commands. 
(2)  (U)  Office  of  the  Assistant  Chief  of  Staff 
for  Intelligence  (OACSI),  Headquarters, 
Department  of  the  Army  (HQDA). 
(3)  (U)  Joint  and  specified  commands  for 
whom  the  Army  has  been  designated  executive 
agent  to  finance  intelligence  activities. 
e.  (U)  This  regulation  does  not  apply  to 
Special  Mission  Funds  (SMF)  that  are  ad- 
ministered by  the  Comptroller  of  the  Army 
under  AR  37-64. 
/  (U)  ICF  are  made  available  to  commands 
and  agencies  by  letter  authorization  from  the 
Comptroller  of  the  Army  (COA).  Commands 
or  agencies  may  not  expend  ICF  in  the  absence 
of  such  written  authorization.  The  COA  letter 
authorizes  expending  ICF  based  on  detailed 
budget  justification  submitted  by  commands  and 
agencies  in  the  Command  Operating  Budget 
(COB).  The  COBs  are  reviewed  by  ACSI,  as 
Program  Manager  for  Intelligence  Activities, 
and  specific  recommended  funding  levels,  by 
command  or  agency,  are  forwarded  to  COA  by 
the  ACSI. 
1-2.  (U)  References 
a.  (U)  Required  and  related  publications  and 
prescribed  and  referenced  forms  are  listed  in 
appendix  A.  Most  of  the  references  listed  are 
for  background  use,  particularly  by  class  B 
agents.  Others  are  special  purpose  references 
required  by  certain  units  to  conduct  their  opera- 
tions. Those  references  es&crtial  for  the  proper 
use  and  accountability  of  ICF  are  identified  as 
follows: 
(1)  (U)  The  letter  "B"  after  a  reference 
signifies  one  required  by  all  class  B  agents  and 
special  disbursing  agents. 
(2)  (U)  The  letter  "A"  signifies  one  required 
by  all  class  A  agents,  class  A  custodians,  and 
special  custodians. 
b.  (U)  Appendix  B  provides  guidance  for  ad- 
ministration and  control  of  ICF  checking 
accounts. 
c.  (U)  Appendix  C  lists  subvoucher  expense 
codes. 
d.  (U)  Sample  cash  blotters  are  shown  in  ap- 
pendix D. 
e.  (U)  A  security  classification  guide  is  pro- 
vided at  appendix  E. 
/  (U)  Administration  procedures  for  duty  ap- 
pointments are  at  appendix  F. 
1-3.  (U)  Explanation  of  abbreviations 
and  terms 
(U)  Abbreviations  and  special  terms  used  in  this 
regulation  are  explained  in  the  glossary.  They 
must  be  used  accurately  and  only  within  their 
precise  definition  when  contemplating  the  use 
of  ICF. 
28  MARCH  1986  UPDATE  •  AR  381-141 
1-4.  (U)  Use  of  funds 
(U)  This  regulation  prescribes  the  general 
authority  of  the  ASCI,  HQDA,  and  field  com- 
manders regarding  ICF.  ICF  will  not  be  used 
in  lieu  of  other  funds  to  compensate  for  the  lack 
of  planning  or  programming  for  requirements 
that  could  have  been  anticipated. 
a.  (U)  ICF  may  be  used  instead  of  other  ap- 
propriated funds  if  the  use  of  other  appropriated 
funds  or  normal  vouchering  procedures  would 
tend  to— _ 
arse  per- 
sonnel for  valid  expenses  incurred.  Advances 
of  ICF  may  be  made  when  necessary  to  meet 
operational  requirements  and  preclude  personal 
hardship. 
c.  (U)  ICF  expenditures  are  exempt  from  the 
$3,000  limitation  on  the  purchase  of  equipment 
end  items  from  operation  and  maintenance 
funds.  To  qualify  for  this  exemption,  equipment 
purchases  must  be  made  with  ICF  and  the 
equipment  must  be  accounted  for  as  Intelligence 
Property  under  AR  381-143.  Restrictions  and 
limitations  imposed  by  Congress  in  the  Authori- 
zation and  Appropriation  Acts  must  be 
followed. 
d  (U)  Except  for  the  provisions  of  paragraph 
l-4a  (1),  (2),  and  (3)  above,  nothing  in  this  AR 
is  to  be  construed  as  authorizing  the  use  of  ICF 
for  the  purchase  of  services,  supplies,  and 
equipment  that  may  be  available  through  nor- 
mal Army  personnel  and  logistics  channels  or 
that  may  be  procured  through  normal  Army 
procurement  procedures.  (See  AR  715-30.) 
e.  (U)  Once  a  determination  has  been  made 
to  use  ICF  based  on  paragraph  l-4a  through 
d,  the  limitations  and  other  coastraints  specified 
throughout  this  AR  must  be  followed.  Nothing 
in  this  AR  will  be  construed  to  allow  the  use 
of  ICF  to  circumvent  any  other  applicable  law 
and  regulation  unless  the  provisions  of 
paragraph  l-4a  through  c  apply.  In  those  cases, 
the  expenditure  requires  prior  approval  of  the 
SA  or  his  designee. 
1-5.  (U)  Responsibilities 
a.  (U)  Secretary  of  the  Army  (SA).  The  SA 
approval  of  the  Annual  Program  for  Contingen- 
cies constitutes  approval  of  the  expenditures 
pertaining  to  the  program.  The  specific  author- 
ity to  expend  such  funds  is  granted  each  fiscal 
year  and  is  evidenced  by  a  letter  issued  by  the 
Comptroller  of  the  Army  (COA)  to  each 
operating  agency  concerned.  This  letter  of 
authority  underlies  and  is,  in  addition  to,  nor- 
mal allocation  documents.  The  authority  con- 
ferred in  each  letter  pertains  to  a  specific 
operating  agency  only  and  is  not  transferable.
The  SA  will  approve  expenditures  as  specified 
in  paragraphs  2-5, 2-6, 2-13, 2-20.  and  2-21 
before  committing  or  obligating  ICF. 
b.  (U)  Comptroller  of  the  Army  (COA).  Tht 
COA  will,  as  prescribed  in  AR  37-47,  review 
the  budget  and  monitor  SA  contingency  funds, 
to  include  ICF. 
c.  (U)  The  Inspector  General  and  Auditor 
General,  Department  of  the  Army. 
(1)  (U)  The  Inspector  General  and  Auditor 
General  will  conduct  internal  audit  ar»d  inspec- 
tion of  ICF. 
(a)  (U)  The  U.S.  Army  Audit  Agency 
(USAAA)  will  perform  this  function  on  behalf 
of  the  Auditor  General. 
(b)  (U)  The  Inspector  General  may  inspect 
ICF  accounts  during  general  and  special  inspec- 
tions of  intelligence  activities  in  AR  20-1. 
(2)  (U)  See  chapter  6  for  specific 
requirements. 
d.  (U)  Assistant  Chief  of  Staff  for  Intelligence 
(ACSI).  The  ACSI  will- 
(1)  (U)  Be  responsible  to  the  COA  for  budget 
preparation  and  justification  of  ICF  Limitation 
(.017). 
(2)  (U)  Delegate  authority  to  obligate  and  ex- 
pend ICF  to  the  commanders  of  major  Army 
commands  (MACOMs)  and  certain  subordinate 
commands  and  agencies. 
(3)  (U)  Appoint  or  authorize  the  appointment 
of  certifying  and  approving  officers  (C&AOs) 
required  by  this  regulation. 
(4)  (U)  Inspect  the  accounts,  records,  and 
vouchers  on  expenditures  of  ICF;  coordinate 
with  the  USAAA,  Defense  Audit  Service 
(DAS),  and  the  General  Accounting  Office 
(GAO)  on  audits  of  ICF  accounts.  Chapter  6 
contains  instructions  on  these  responsibilities. 
(5)  (U)  Interpret  this  regulation  when  re- 
quested by  commanders.  Such  requests  will  be 
forwarded  to  HQDA  (DAMI-PBM),  WASH 
DC  20310-1030. 
e.  (U)  Commanders. 
(1)  (U)  A  commander  authorized  to  obligate 
and  expend  ICF  will  supervise,  control,  ad- 
minister, and  inspect  such  funds.  The  author- 
ity to  obligate  and  expend  ICF  may  be  delegated 
only  as  follows: 
(a)  (U)  MACOM  commanders  may  delegate 
their  authority  to  commanders  of  intelligence 
units  or  to  commanders  of  major  subordinate 
commands. 
(b)  (U)  Commanders  of  major  subordinate 
commands  may  further  delegate  their  author- 
ity to  commanders  of  intelligence  units. 
(c)  (U)  In  any  command,  the  authority  for 
supervision,  control,  administration,  and  inter- 
nal inspection  may  be  delegated  to  the  senior 
intelligence  officer,  or  to  an  officer  occupying 
a  similar  position  (see  chap  6).  The  ACSI  may 
delegate  this  authority  to  commanders  of 
selected  intelligence  units  or  agencies  not 
assigned  to  a  MACOM  or  major  subordinate 
command,  or  which  otherwise  report  directly 
to  HQDA. 
(2)  (U)  To  ensure  continuity  of  intelligence 
operations,  commanders  of  MACOMs  will  ap- 
point one  principal  and  one  alternate  C&AO. 
The  senior  intelligence  officer  and  his  or  her 
deputy  will  be  appointed  as  principal  and  alter- 
nate C&AO,  respectively. 
(3)  (U)  In  MACOMs  overseas,  the  author- 
ity to  appoint  the  C&AO  may  be  delegated  to 
commanders  of  major  subordinate  commands, 
who  should  then  make  appointments  as 
specified  in  (2)  above.  No  further  delegation 
of  this  authority  may  be  made  without  the  prior 
approval  of  the  ACSI. 
(4)  (U)  Commanders  will  forward  a  copy  of 
all  correspondence  on  the  appointment  or  relief 
of  C&AOs  to  HQDA  (DAMI-PBM).  WASH 
DC  20310-1030.  (See  app  F  for  samples  of 
appointing  documents.) 
(5)  (U)  Commanders  will  ensure  that  all  in- 
telligence property  purchased  with  ICF  is  ac- 
counted for  as  prescribed  in  AR  381-143. 
(6)  (U)  Commanders  will  cause  inspections 
for  ICF  accounts  to  be  conducted  as  prescribed 
in  chapter  6,  section  III. 
(7)  (U)  Commanders  will  regularly  review 
ICF  expenditures  to  determine  if  objectives  ac- 
complished were  worth  the  money  spent  to  ac- 
complish them. 
(8)  (U)  Commanders  will  notify  HQDA 
(DAMI-PBM)  of  the  opening,  closing,  or 
change  in  location  of  any  ICF  class  B  or  A  agent 
or  class  A  custodian  account. 
/  (U)  Certifying  and  approving  officers 
(C&AOs). 
(1)  (U)  For  appointment  of  C&AOs,  see 
e(2),  (3),  and  (4)  above. 
(2)  (U)  Before  certifying  and  approving  DD 
Forms  281  (Voucher  for  Emergency  or  Ex- 
traordinary Expense  Expenditures),  the  C&AO 
will  determine  that— 
(a)  (U)  The  expenditures  were  necessary  for 
confidential  military  purposes. 
(b)  (U)  The  voucher  is  correct  and  properly 
substantiated. 
(c)  (U)  The  payments  in  themselves  are 
proper. 
(d)  (U)  The  funds  charged  are  applicable. 
(3)  (U)  C&AOs  will  place  a  signed  statement 
in  the  official  ICF  files  stating  that  secure  en- 
vironment contracting  procedures  could  not  be 
used  for  the  transaction.  Justification  will  be 
included. 
(4)  (U)  C&AOs  are  acting  directly  for  the 
SA  and  will  be  held  pecuniarily  liable  for  defi- 
ciencies subsequently  noted. 
(5)  (U)  Neither  the  C&AO  nor  the  alternate 
C&AO  may  approve  DA  Forms  3697-R  (Sub- 
voucher  for  Disbursement  from  Confidential 
Funds)  for  payment;  they  will  not  be  designated 
any  category  of  ICF  agent  officer  or  custodian, 
nor  will  they  be  the  payee  on  any  DD  Form 
281. 
g.  (U)  Approving  officers.  Approving  of- 
ficers for  DA  Forms  3697-R  will  be  designated 
as  such,  in  writing,  by  their  commanding  of- 
j 
ficers.  (Sec  app  F  for  appointment  procedures.) 
They  will—  | 
(1)  (U)  Determine  the  validity  and  propri- 
ety of  claims  submitted  on  DA  Form  3697-R 
and  that  the  voucher  is  correct  and  properly 
substantiated. 
(2)  (U)  Certify  availability  of  funds  and  ap- 
prove such  funds  for  payment  under  the  pro- 
cedures established  in  this  regulation.  (Approv- 
ing officers  may  not  approve  their  own  claims; 
such  claims  must  be  approved  by  their  super- 
visors or  commanders.) 
h.  (U)  ICF  agent  officers  and  custodians. 
(See  chap  3  for  instructions  concerning  the  ap- 
pointment and  responsibilities  of  ICF  Class  B 
and  A  agents,  class  A  custodians,  and  special 
custodians.) 
i.  (U)  Claimants.  Intelligence  operational  and 
support  personnel  who  make  claims  against  ICF 
accounts  will  ensure  that  claims  are  valid, 
documented,  and  prepared  according  to  the  pro- 
cedures in  this  regulation. 
1-6.  (U)  Access  to  ICF  accounts 
(U)  Access  to  ICF  accounts,  to  include  reports 
of  audits  or  inspections,  will  be  restricted  to 
authorized  Government  auditors  and  to  other 
persons  when  specifically  authorized.  Any  per- 
son granted  access  to  an  ICF  account  must  have 
an  established  need-to-know  and  a  current 
security  clearance.  Personnel  responsible  for 
maintaining  ICF  accounts  will  ensure  that  per- 
sons granted  access  to  such  accounts  possess 
the  required  security  clearance.  These  person- 
nel will  maintain  a  list  that  includes  complete 
identifying  data  and  signatures  of  persons  per- 
mitted access  to  the  accounts.  The  list  will  also 
indicate  the  reason  why  access  was  granted. 
(See  chap  6.) 
Chapter  2 
Expenditures  from  Intelligence 
Contingency  Funds  (U) 
Section  I. 
Conditions  and  Payment  (U) 
2-1.  (U)  Conditions  required  for  use 
a.  (U)  The  use  of  ICF  (see  para  I-lb)  is 
restricted  to  those  expenses  required  for  con- 
fidential military  purposes  (see  para  1-4)  and  * 
related  activities  to—  *** 
( 1)  (U)  Accomplish  the  Army's  intelligence  jjj 
mission.  ** 
(2) 
€ 
i
b.  (U)  The  categories  of  authorized  expen-  £ 
ditures  listed  in  section  II  of  this  chapter  should  i 
serve  as  guidelines  to  assist  commanders  in 
establishing  the  propriety  of  claims  submitted 
for  payment. 
i
28  MARCH  1986  UPDATE  •  AR  381-141
# 
2-2.  (U)  Payment  of  claims 
a.  (U)  Claims  against  ICF  are  normally  paid 
only  to  intelligence  operational  personnel. 
However,  payments  may  be  Made  to  in- 
telligence support  personnel  when  necessary  to 
support  operations.  Payments  to  other  person- 
nel may  be  made  only  when  authorized  by  the 
ACSI,  or  according  to  authority  specifically 
delegated  by  the  ACSI. 
b.  (U)  All  claims  submitted  for  payment 
from  ICF  will  be  fully  explained  on  the  ap- 
propriate forms  and  as  prescribed  in  chapter  7. 
Claims  will  be  supported  by  unaltered,  original, 
photostatic,  or  carbon  copies  of  itemized 
receipts.  Cash  register  receipts  are  acceptable 
when  itemized  by  general  categories  of  items 
purchased  if  required  to  explain  the  expen- 
diture. Receipts  tendered  in  a  foreign  language 
will  be  translated  or  summarized  into  English. 
If  a  receipt  cannot  be  obtained  for  any  reason, 
the  itemized  expenses  will  include  a  brief  ex- 
planation of  the  reason.  Certificates  should  be 
attached  when  the  expenditure  involves  the  pur- 
chase of  supplies  and  equipment.  Certificates 
must  contain  enough  detail  to  satisfy  the  re- 
quirements of  property  and  fiscal  account- 
ability. Receipts  which  could  compromise  or 
jeopardize  the  security  of  the  operation  or  per- 
sonnel engaged  therein  may  be  filed  in  the 
source  dossier  or  unit  operational  files,  and  the 
sub  vouchers  so  annotated. 
a.  \.w)  expenditures  from~ICF  will  be 
charged  to  the  appropriate  fiscal  year  as  pre- 
scribed in  AR  37-21. 
Section  II. 
Authorized  Expenditures  (U) 
-*--..  -•■.';?;(}> 
contact  with  a  foreign  intelligence  or  foreign 
'  government  person  may  be  charged  to  ICF  if 
£3ne  meeting  enhances  the  intelligence  mission 
of  the  unit.  Command  Senior  Intelligence  Of- 
ficer approval  is  required  for  these 
expenditures. 
c.  (V)  Overt  official  contacts. 
( 1 )  (U)  The  primary  purpose  of  an  overt  of- 
ficial contact  is  not  entertainment.  ICF  may  not 
be  used  to  pay  for  a  function  unless  the  func- 
tion will  further  a  specific  intelligence  mission. 
Subvouchers  must  indicate  the  relationship  of 
the  function  to  the  mission. 
(2)  (U)  Such  functions  require  the  prior  ap- 
proval of  the  command  senior  intelligence  of- 
ficer (or  the  ACSI).  Once  the  approval  has  been 
granted,  all  expenses  may  be  paid  from  ICF 
(subject  to  the  conditions  of  para  l-4a).  The 
printing  or  engraving  of  invitations  is  included. 
(3)  (U)  Depending  on  the  circumstances  in 
an  area  of  operations,  the  command  senior  in- 
telligence officer  will— 
(a)  (U)  Limit  the  amount  of  ICF  to  be  used 
for  overt  official  contacts. 
(b)  (U)  Establish  controls  over  the  ratio  of 
U.S.  personnel  to  non-U.S.  guests. 
(4)  (U)  When  it  is  considered  proper  to  in- 
vite the  spouses  of  foreign  guests  to  an  overt 
official  contact,  the  spouses  of  U.S.  personnel 
should  also  attend.  In  such  cases,  and  as  a 
specific  exception,  both  the  U.S.  and  foreign 
spouses  per  capita  share  of  the  cost  may  be 
charged  to  ICF  if  prior  approval  is  granted  by 
the  command  senior  intelligence  officer.  This 
regulation  does  not  prohibit  attendance  of 
spouses  of  U.S.  personnel  at  overt  official  con- 
tacts. It  does,  however,  limit  reimbursement 
from  ICF  of  their  per  capita  share  of  the  costs 
to  only  those  functions  at  which  foreign  spouses 
will  be  in  attendance. 
(5)  (U)  Generally  formal  or  informal  dinners 
and  cocktail  parties  are  the  accepted  social  ac- 
tivities at  overt  official  contacts.  A  golf  game, 
tennis  match,  or  picnic  are  examples  of  other 
acceptable  activities.  Extended  activities,  e.g., 
a  dinner  either  at  a  private  home  or  business 
followed  by  "barhopping,"  are  not  considered 
acceptable.  While  a  certain  degree  of  informal- 
ity may  be  desirable  at  oven  official  contacts, 
care  must  be  taken  to  ensure  they  do  not  become 
too  informal. 
d.  (U)  Intelligence  liaison  contacts.  Food  and 
beverages  consumed  at  an  intelligence  liaison 
28  MARCH  1986  UPDATE  •  AR  381-141 
2-4.  (U)  Bilateral 
a. 
merits 
b.  (U)  ICF  may  be  used  for  the  same  types 
of  expenditures  authorized  in  the  conduct  of 
unilateral  operations.  However,  instead  of  pay- 
ment for  individual  claims,  lump-sum  payments 
covering  expenses  for  a  specified  period  of  time 
may  be  made  to  the  foreign  intelligence  unit. 
c.  (U)  Detailed  accounting  procedures  con- 
cerning bilateral  payments  will— 
(1)  (U)  Be  made  a  part  of  either  the  bilateral 
agreement  or  a  fiscal  SOP  agreed  to  by  all 
parties. 
(2)  (U)  Conform  to  the  general  procedures 
prescribed  herein. 
d.  (U)  Subvouchers  for  bilateral  payment 
will— 
(1)  (U)  Cite  the  formal  agreement  as  a 
reference. 
(2)  (U)  Contain  a  summary  of  the  activities 
financed. 
2-5.  (U)  Expenditure 
a\
5 1'SC  552  (hHn. 
c.  (U)  Restrictions.  Intelligence  personnel 
will  not  tender  a  gift  or  a  favor  to  a  person  or 
organization  except  to  further  an  intelligence 
mission  or  the  unit  modus  operandi.  The  pro- 
hibition stated  in  paragraph  2-6  on  payments 
to  military  and  public  sector  civilian  personnel 
applies.  (See  AR  37-47  for  Army  policy  on 
nonintelligence  related  gifts.) 
d.  (U)  Contingent  liabilities. 
(1)  (U)  Contingent  liabilities  are  com- 
mitments made  by  intelligence  operational  per- 
sonnel to  agents  or  informants  according  to  ap- 
proved operations  plans  or  concepts.  Contingent 
liabilities  are  not  obligations;  they  represent 
potential  payments  that  will  be  made  only  if  cer- 
tain previously  specified  events  occur.  Provi- 
sions for  contingent  liabilities  may  include,  but 
are  not  limited  to  commitments- 
fa;  (U)  For  benefits  payable  to  the  survivors 
of  an  agent. 
(b)  (U)    For   production   or    postmissioh 
bonuses. 
Jc)  (U)  To  resettle  or  relocate  an  agent  or  his 
er  familv. 
<? 
(2)  (V)  l  o  ensure  continuity  and  to  expedite 
the  validation  of  claims,  intelligence  units  will 
maintain  complete  and  current  records  of  all 
contingent  liabilities. 
e.  (U)  Restriction  of  payments  to  Govern- 
ment personnel.  Except  for  operational  ex- 
penses, payments  authorized  in  this  paragraph 
will  not  be  paid  to  uniformed  and  civilian 
employees  of  the  Government  who  act  as 
sources  in  intelligence  operations  unless 
payments  are  approved  by  the  SA. 
2-6.  (U)  Payments  to  persons  having 
special  skills 
a.  (U)  Besides  wages  paid  to  sources,  ICF 
may  be  used  to  pay  persons  possessing  certain 
knowledge  or  skills  required  to  accomplish  an 
intelligence  mission.  Envisioned  is  the  hire  of 
certain  technical  specialists,  such  as  inter- 
preters, translators,  or  interrogators  when  the 
following  conditions  exist— 
(1)  (U)  A  legitimate  requirement  exists  for 
the  employment  of  a  person  with  special  skills, 
but  the  person  cannot  be  hired  through  normal 
civilian  employment  channels,  using  open 
funds;  or 
(2)  (U)  Timeliness  is  essential;  i.e.,  the  ex- 
pertise is  needed  immediately  to  ensure  the  mis- 
sion is  accomplished  or  to  prevent  a  security 
compromise. 
b.  (U)  With  the  exception  of  indigenous  per- 
sonnel employed  by  U.S.  governmental  agen- 
cies in  overseas  areas,  ICF  may  not  be  used  to 
pay  an  emolument  to— 
(1)  (U)  Any  person  on  active  duty  with  one 
of  the  Armed  Services  of  the  United  States; 
(2)  (U)  Any  employee  of  a  U.S.  Federal, 
State,  or  local  Government  agency;  or 
(3)  (U)  Any  person  to  perform  or  supplement 
the  administrative  duties  normally  performed 
by  regular  employees  of  the  Government 
without  the  approval  of  the  SA. 
c.  (U)  When  the  appearance  of  a  conflict  of 
interest  exists  (e.g.,  close  kin)  the  approval  of 
the  command  SIO  will  be  required.  Also,  post- 
employment  restrictions  relative  to  retired 
military  personnel  apply.  A  waiver  will  require 
SA  approval. 
2-7.  (U)  Special  operational  clothing 
Wl^JTu\) 
2-8.  (U)  Temporary 
expenses 
a.  (U)  Use  of  ICF.  Official  orders,  published 
according  to  instructions  contained  in  AR 
3 10- 10  and  the  Joint  Travel  Regulations  (JTR), 
are  required  for  all  TDY  travel  except  when 
their  use  would  compromise  the  security  of  an 
intelligence  operation.  Unclassified  orders,  con- 
taining an  open  fund  citation,  should  be  used 
whenever  possible.  Classified  orders,  also  citing 
open  funds,  should  be  used  if  it  is  necessary 
to  add  a  degree  of  security  to  a  certain  mission. 
ICF  may  be  used  instead  of  open  funds  only 
if  the  use  of  open  funds  and  classified  orders 
would  not  provide  the  degree  of  security 
necessary  to  preclude  the  compromise  of  the 
intelligence  operation*.  When  the  travel  itself  is 
part  of  the  intelligence  operation,  expenses  may 
be  reimbursed  from  ICF  on  an  actual  cost  basis 
not  to  exceed  JTR  limitations  unless  prior  ap- 
proval is  obtained  in  accordance  with  e(2)(b) 
below.  Payment  of  ICF  for  such  purposes  may 
e* 
be  made  only  to  intelligence 
personnel. 
b.  (U)  Normal  allowances.  All  alIow«aa!«? 
authorized  in  the  Joint  Travel  *»-■  -^^ 
(JTR),  along  with  instructions   ^, 
limitations,  modes  of  transportation,  advance?*! 
and  reimbursements,  pertain  to  ICF  as  weu  1 
open  funds.  Reimbursements,  whether  maS 
from  ICF  or  open  funds,  may  not  exceed  jS 
maximum  amounts  prescribed  by  law  and  Uste? 
in  the  JTR.  Combinations  of  ICF  and  opetf 
funds  may  not  be  used  to  circumvent  the  JIU'l 
limitations  for  per  diem  or  transportation  ex/ 
perises  incurred  daring  the  same  period 
TDY.  ^ 
(c)  (U)  Procedures  for  payment.    ..•-i 
(1)  (U)  Open  funds.  The  instructions  I™, 
tained  in  the  applicable  sections  of  the  JTR  anjl 
AR  37-106  will  be  followed.  Requests  for  add 
vances  and  claims  for  reimbursement  will  h/ 
submitted  to  the  servicing  finance  and  account- 
ing office  (F&AO)for  payment.  ;,'.',  " 
(2)  (U)  ICF.  Payments  will  be  made  j 
applying  the  same  criteria  prescribed  foropi 
funds,  but  the  submission  of  requests  for  » 
vances  or  claims  for  reimbursement  will  i 
made  as  follows: 
(a)  (U)  If  advance  travel  pay  or  per  dienfl 
required,  prepare  DD  Form  1081  (Stater 
of  Agent  Officer's  Account)  in  the  usual ... 
(see  para  7-4).  Submit  it  through  normal  IC 
channels  to  the  proper  agent  or  custodian.^™ 
(b)  (U)  Request  for  authority  to  exceed  J"fly 
allowances  will  be  submitted  to  HQDA  (DAMlf 
PBM),  WASH,  DC  203 10-1030  instead  ofi 
Per  Diem,  Travel  and  Transportation  Alio 
ance  Committee.  Blanket  authority  will  not 
approved.  Requests  will  be  approved  by  i 
Director  of  the  Army  Staff  (DAS).     ■■•",/., 
(c)  (U)  Within  7  working  days  after  coraplM 
tion  of  the  TDY,  submit  the  claim  through  nor-1 
mal  ICF  channels  for  payment.  Attach  the  DD] 
Form  1081  (if  used),  a  complete  itinerary,  and! 
receipts  for  all  authorized  expenditures,  to  the  j 
subvoucher  claiming  reimbursement.  If  perj 
diem  allowances  in  excess  of  the  JTR  an?' 
claimed,  the  authority  for  their  use  must  be  cited . 
,on  the  subvoucher.  ,.f:j$j] 
d.  (U)  Special  advances  of  ICF. 
(U)lt  has  been  determined  that  oper 
funds  must  be  used. 
(b)  (U)  Advance  travel  pay  or  per  diem  H\ 
essential  to  the  accomplishment  of  the  mission. 
<c)[ 
X  <2>  (u)  Such  advances  should  not  exceed  75  f 
percent  of  the  total  estimated  cost  of  the  trip. : 
They  will  be  accounted  for  in  ICF  channels  only  3 
28  MARCH  1986  UPDATE  •  AR  381-141
* 
c 
and  in  the  same  manner  as  operational  ad- 
vances; i.e.,  on  DD  Form  1081.  Upon  com- 
pletion of  the  TDY,  a  routine  claim  for  reim- 
bursement from  open  funds  will  be  submitted 
to  the  servicing  FAO.  No  reference  wili  be 
made  to  any  advance  of  1CF.  The  entire  amount 
of  the  advance  will  be  returned  to  the  agent  or 
custodian  within  3  working  days  after  receipt 
of  payment  of  the  claim,  or  within  45  days  after 
completion  of  the  TDY,  whichever  date  is 
sooner.  ■  : 
2-9.  (U)  Local  travel  payments 
a.  (U)  Official  travel  performed  in  and 
around  permanent  duty  stations  is  considered 
local  travel.  Travel  orders  are  not  required  to 
perform  local  travel.  ICF  may  be  used  to  reim- 
burse intelligence  personnel  for  local  opera- 
tional travel  expenses  if  paragraph  l-4a  applies. 
b.  (U)  Travel  in  and  around  a  TDY  travel 
site  for  which  open  funds  are  used  to  pay  for 
transportation  and  per  diem  allowances  may  be 
paid  from  ICF  if  paragraph  \-Aa  applies.  In- 
structions on  requirements  for  reimbursement, 
authorized  rates,  and  modes  of  transportation 
are  prescribed  in  the  JTR  and  in  AR  37-106, 
chapter  7. 
c.  (U)  A  voucher  (SF  1164)  (Claim  for 
Reimbursement  for  Expenditures  on  Official 
Business)  will  be  prepared  according  to  instruc- 
tions contained  in  paragraph  7-6  unless  required 
detail  can  otherwise  be  provided  either  on  the 
face  of  the  subvoucher  or  an  attachment  thereto. 
When  used,  the  SF  1164  will  be  prepared  in 
single  copy;  it  may  be  handwritten  as  long  as 
it  is  legible.  It  will  be  attached  to  the  subvoucher 
claiming  reimbursement  and  submitted  through 
ICF  channels  for  payment.  If  a  claim  is  sub- 
mitted under  paragraph  2-25,  the  SF  1164  is 
not  required.  Such  payments  are  authorized 
only  if  paragraph  l-4a  applies. 
d.  (U)  JTR  limitations  may  not  be  exceeded 
unless  prior  approval  is  obtained  in  accordance 
with  paragraph  2-8c(2)(b). 
2-10.  (U)  Permanent  change  of  station 
(PCS)  allowances 
2-11.  (U)  Expenses  for  purchase  and 
operation  of  motor  vehicles 
a.  (U)  TDY  and  local  travel  expenses.  See 
paragraphs  2-8  and  2-9  for  authorization  re- 
quired for  the  use  of  rental  vehicles  or  POVs 
for  TDY  or  local  travel  and  payment  of  ex- 
penses for  travel. 
under  paragraphs  1  -4a  and  d  and  mis  certificate 
and  a  sufficient  explanation  are  made  a  pan  of 
the  supporting  documents  attached  to  the  sub- 
voucher,  the  claim  may  be  approved  for 
payment. 
.5  USC  552  (b)(1) 
c-mhh^^^^^m^ht       '■  5  USC  552  <b)  (1) 
2-12.  (U)  Payments  and  deductions  for 
meals 
a.  (U)  Personnel  required  to  take  meals  dur- 
ing the  conduct  of  intelligence  operations  may 
claim  reimbursement  from  ICF  for  the  cost  of 
such  meals  (subject  to  approval  levels  in 
paragraphs  2-8, 2-10,  and  2-25,  as  applicable). 
Expenses  may  be  paid  only  in  excess  of  those 
a  person  would  normally  be  expected  to  pay 
from  basic  allowance  for  subsistence  (BAS)  or 
per  diem.  Deductions  for  subsistence  allow- 
(1)  H.  B     ances  are  required  only  when  the  claimant 
(a)  (U)Purchase^^^^^^^^^^^      in  a  travel  status  and  drawing  a  per  diem 
(b)  fl  tat  allowance  that  includes  an  amount  for  sub- 
sistence. In  that  case,  the  subsistence  portion 
of  the  per  diem  allowance  pescribed  in  the  JTR 
c)  (U)  License  plates.    -T  ~        wi!!  **  deducted  from  the  claim.  Deductions 
(d)  (U)  Insurance.  &  *^*C  552  /fa)  fn  must  **  taken  for  each  operational  individual 
(e)  (U)  Inspection  fees.  '   ina  TDY  status  involved  in  the  cost  of  the  meal. 
(f)  (U)  Fuel,  lubricants,  maintenance,  and      For  **>&  militarv  and  civilian  personnel,  the 
service  costs.  amount  of  the  deduction  will  be  computed  as 
(g)  (U)  Repairs,  including  damage  caused  by     {o]}°ws: 
accident.  If  the  operator  was  negligent,  survey         D-AxBxC,  where 
and   collection   action   will   be   taken,   as        D=the  amount  of  the  deduction  to  be  taken 
appropriate.  .  for  one  meal 
(h)  (U)  Storage  (garage)  fees.  ^     A  =the  rate  of  per  diem  (per  diem  allowance) 
(i)  (U)  Parking  fees.  H      B=the  subsistence  portion  of  the  per  diem 
(2fl|     ■■■  ■■H  BMH^B  *»  allowance  per  meal  (one-third  of  the  JTR  daily 
.allowance).  Thirteen  percent  per  meal  (39  per- 
  .      pnt  per  day)  is  the  currently  authorized  sub- 
,af  (J)  Purchase  (requires  approval  of  cornel  ?istence  portion  of  the  per  diem  allowance,  and 
mand  senior,  intelligence  officer).  Ci  -s  *e  amount  used  *n  me  examples  below.  Con- 
"  jji  Bfc*"*sult  ^e  JTR  for  any  changes  before  making 
Jj,  computations. 
.£.     C = number  of  meals  taken  per  day  ( 1 ,  2 .  or 
'•2  3).  Examples: 
"3 
£*(1)  (U)  Cost  of  meal  (including  tip)       S8.00 
^Amount  of  deduction  (D)=(AxBxQ 
S($25x.l3xi)     -3,25 
^S^mount  of  claim      $4.75 
(c)  (U)  License  platesT 
(d)  (U)  Inspection  fees. 
(e)  (U)  Insurance  (if  required  by  the  chief  of      (2)  (U>  Cosl  of  n*81  (including  tip)      $8.00 
a  U.S.  diplomatic  mission)  «*    A^,oun,  of  deduction  (D)=(AxBxC) 
0}  m  _^^^^^^^_-    ($4x0xl)     
?,  Amount  of  claim      $8.no 
•  •»  ^=== 
Vjf  In  this  example,  B=0  because  the  per  diem 
  r  __         ^allowance  of  $4.00  did  not  include  an  amount 
(g)  (U)  Parking  fees."'         ■"■",  *rfor  subsistence;  therefore  no  deduction  is 
(3)  (IT)  Administrative  vehicle  (see  ad-  --required, 
ministrative  property).  Normally,  no  payments 
from  ICF  are  authorized  for  expenses  incurred      <3>  W)  Cost  of  meal  (including  tip)      $2.50 
in  the  use  of  administrative  vehicles.  However,      Amount  of  deduction  (D)=(AxBxC) 
if  an  intelligence  unit  commander  certifies  to     (525x'3xU    -3.25 
the  operational  necessity  for  minor  expenditures      Amoun'  of  claim   -S0.75 
28  MARCH  1986  UPDATE  •  AR  381-141
If  the  cost  of  a  meal  minus  the  deduction  results 
in  a  negative  amount,  no  claim  will  be  submit- 
ted. Individuals  are  not  required  to  reimburse 
the  Government  in  such  cases. 
(4)  (U)  Cost  of  breakfast  (including  tip)  .  $2.00 
Cost  of  lunch  (including  tip)         6.00 
  :  $8.00 
Amount  of  deduction  (D)=(AxBx2C) 
(S25X.13X2)   ■  1-6.50 
Amount  of  claim       $1.50 
More  than  one  meal  may  be  claimed  on  the 
same  subvoucher. 
(5)  (U)  Cost  of  meal  (including  tip)       $8.50 
Amount  of  deduction  (D)=(AxBxC) 
($12xV4xl)     -4.00 
Amount  of  claim       $4.50 
When  the  per  diem  allowance  includes  only  an 
amount  for  subsistence,  i.e.,  when  Government 
quarters  are  available  but  Government  mess 
facilities  are  not,  one-third  of  the  total  allowance 
must  be  deducted  for  each  meal  claimed. 
b.  (U)  No  deduction  need  be  made  from  the 
cost  of  any  meal  required  to  be  consumed  dur- 
ing the  conduct  of  intelligence  operations  that 
is  considered  a  fourth  meal;  i.e.,  a  meal  in  ex- 
cess of  the  normal  three  meals  per  day. 
c.  (U)  A  meal  served  at  an  overt  official  con- 
tact is  considered  a  Government  meal  unless  it 
is  a  fourth  meal.  If  a  person  attends  such  a  func- 
tion and  he  or  she  is  drawing  a  per  diem 
allowance  that  includes  an  amount  for  sub- 
sistence, the  voucher  submitted  for  payment, 
i.e.,  a  DA  Form  3697-R  (Subvoucher  for 
Disbursement  from  Confidential  Funds)  (ICF) 
or  a  DD  Form  1351-2  (Travel  Voucher  or  Sub- 
voucher)  (open  funds),  will  indicate  that  a 
Government  meal  was  used.  The  person  to 
whom  the  claim  is  submitted  will  make  deduc- 
tions as  prescribed  in  the  JTR  for  each  meal 
indicated. 
2-13.  (U)  intelligence  property 
a.  (U)  Purchases.  Supplies,  equipment, 
gifts,  and  incentives,  to  be  used  in  conjunction 
with  intelligence  operations,  may  be  purchased 
from  ICF  if  paragraphs  l-4a  and  d  apply.  Prior 
to  authorizing  the  use  of  ICF,  efforts  should  be 
made  to  ascertain  availability  of  items  through 
intelligence  property  book  (IPB)  channels  (see 
AR  38 1-143).  Included  are  items  procured  for 
evaluation  and  testing  by  agencies  acting  on 
behalf  of  the  ACSI  or  for  intelligence  training. 
Limitations  imposed  on  the  purchase  of  equip- 
ment end  items  over  $3,000  from  OMA  funds 
do  not  apply  to  equipment  end  items  purchased 
with  ICF.  The  C&AO  will  approve  expen- 
ditures of  less  than  $10,000;  the  Senior  In- 
telligence Officer  (SIO)  Will  approve  expen- 
ditures from  $10,000  to  $25,000.  SA  will  ap- 
prove over  $25,000. 
b.  (U)  Accountability.  Commanders  will  en- 
sure that  accountability  for  intelligence  property 
is  maintained  according  to  instructions  con- 
tained in  AR  381-143.  Subvouchers  submitted 
for  payment  from  ICF  for  nonexpendable  in- 
telligence properly  and  incentives  will  contain 
a  statement  certifying  that  the  items  have  been 
posted  to  the  intelligence  property  book,  and 
will  indicate  the  property  transaction  number. 
However,  in  those  instances  in  which  the  prop- 
erty is  purchased  and  at  the  same  time  is  used 
or  placed  in  an  operation  where  the  item  is 
beyond  U.S.  Government  control  or  where  its 
recovery  is  not  anticipated,  accountability  need 
not  be  established.  An  explanation  to  this  ef- 
fect will  be  included  on  the  subvoucher.  The 
certificate  will  be  signed  by  the  person  account- 
able for  intelligence  property  or  by  the  prop- 
erty book  officer.  A  copy  of  the  subvoucher  will 
be  maintained  in  the  property  book  officer's 
transaction  file. 
c.  (U)  Gifts.  Gifts  procured  for  a  specific 
person  or  organization  and  presented  without 
intermediate  stockage  need  not  be  posted  to  the 
intelligence  property  book.  The  procurement 
documents  will  contain  a  statement  indicating 
the  intended  use  of  the  items,  and  will  be  at- 
tached to  subvouchers  claiming  reimbursement. 
The  recipient  will  be  identified  either  on  the 
procurement  document  or  subvoucher. 
d.  (U)  Items  used  as  payment  (exclusive  of 
incentives).  Items  procured  solely  to  present  to 
sources  instead  of  cash  payments  will  not  be 
posted  to  the  intelligence  property  book.  Pro- 
curement documents  will  contain  a  certificate 
showing  the  intended  use  of  the  items  and  will 
be  attached  to  subvouchers  claiming  reimburse- 
ment from  ICF. 
e.  (U)  Incentives.  Incentives  are  considered 
nonexpendable.  They  will  be  posted  to  the  in- 
telligence property  book.  When  incentives  are 
used  in  liaison  situations,  they  will  be  so  iden- 
tified and  dropped  from  the  intelligence  pro- 
perty book  and  any  further  accountability  when 
issued.  Accountability  wilS  not  be  maintained 
for  partial  items. 
/  (V)  Maintenance  costs.  ICF  may  be  used 
to  pay  for  the  cost  of  maintaining  intelligence 
property,  regardless  of  the  type  of  funds  used 
for  procurement  if  paragraph  1  -4a  applies.  ICF 
should  not  be  used  for  any  costs  associated  with 
noninteUigence  property  unless  security  is  a 
prime  consideration. 
2-14,  (U)  Purchase  of  documents  and 
publications 
(U)  ICF  may  be  used  to  purchase  foreign  and 
domestic  documents,  books,  maps,  newspapers, 
or  periodicals  for  use  in  connection  with  in- 
telligence activities.  Such  kerns  fall  into  one  of 
the  following  two  categories: 
a.  (U)  Intelligence  property.  This  includes 
documents  and  publications  purchased  for 
reference  or  other  operational  use  by  intelli- 
gence personnel.  Items  in  this  category  may  be 
purchased  with  ICF  only  after  the  use  of  all 
possible  overt  sources  of  funding  has  been  in- 
vestigated and  eliminated  under  paragraphs 
28  MARCH  1986  UPDATE  •  AR  381-141 
l-4a  and  d.  Accountability  will  be  as  prescribed 
in  AR  381-143. 
b.  (U)  Attachments  to  intelligence  reports. 
Documents  or  other  publications  purchased  by 
sources,  case  officers,  or  special  agents,  which 
become  part  of  intelligence  information  reports, 
are  not  considered  intelligence  property.  Such 
items  may  be  purchased  with  ICF  subject  to 
paragraphs  l-4a  and  d. 
2-15.  (U)  Communications  services 
(U)  Subject  to  the  conditions  of  paragraphs  \-Aa 
and  d  fees  for  the  following  services  may  be 
paid  from  ICF: 
n 
i  | 
f  & 
and  long  distance'^ 
telephone  calls,  and  telegrams,  provided 'w 
charges  are  itemized. 
c.  (U)  Postage,  postal  registration  or  in- 
surance, or  post  office  boxes. 
d.  (U)  Purchase  charges  for  money  orders, 
cashier's  checks,  traveler's  checks,  or  other  in- 
struments necessary  to  transmit  or  safeguard 
ICF. 
2-16.  (U)  Printing  and  reproduction 
services 
a.  (U)  When  paragraphs  l-4a  and  d  apply, 
ICF  may  be  used  to  procure  printing  and  re- 
production services  as  folio ws- 
(D 
(3)  (UjWempdrary  lease  of  printing  or 
reproduction  equipment  when  reproduction  by 
other  means  is  not  possible  or  economically 
feasible;  prior  approval  of  the  command  senior 
intelligence  officer  is  required. 
b.  (U)  ICF  may  not  be  used  to  circumvent 
restrictions  concerning  the  procurement  of 
printing  and  reproduction  services,  nor  to  pro- 
cure such  services  for  administrative  purposes. 
The  use  of  ICF  must  be  limited  to  those  expen- 
ditures that  fulfill  operational  requirements. 
2-17.  (U)  Fees  for  credit  investigation 
a.  (U)  Fees  paid  to  commercial  credit  agen- 
cies for  reports  or  services  rendered  in  support 
of  intelligence  investigations  are  payable  from  £ 
ICF  according  to  paragraphs  l-4a  and  d.       m 
b.  (U)Ifa  large  number  of  credit  investiga-    t 
lions  is  required,  intelligence  units  should—
• 
(1)  (U)  Consolidate  their  requirements  (with 
other  intelligence  units,  if  feasible). 
(2)  (U)  Enter  into  a  flat-rate  contract  for 
these  services  through  a  purchasing  and  con- 
tracting officer  who  will  use  open  funds  to  pay 
the  fees. 
2-18.  (U)  Fees  for  certificates  and 
transcripts 
(U)  Fees  paid  for  certificates  or  transcripts  of 
records  required  in  the  conduct  of  intelligence 
investigations  may  be  paid  from  ICF  if  the  con- 
ditions prescribed  in  paragraphs  l-4a  and  dare 
met. 
2-19.  (U)  Housing  and  living  expenses 
a.  (U)  With  the  approval  of  the  DAS,  ICF 
may  be  used  to  reimburse  intelligence  opera- 
tional and  support  personnel  for  housing  and 
living  expenses  incurred  in  the  performance  of 
duty  either  in  CONUS  or  OCONUS. 
(1)  (U)  Rates  of  payments.  Payments  from 
ICF  will  be  based  on  experience  factors 
^developed  within  particular  commands  and 
should  include  consideration  of  the  foils 
(a) 
(Wft 
ligTBUity  for  on-post  housing  or 
other  Government  sponsored  housing  (see  AR 
210-50). 
(c)  (U)  Cost  of  private  housing  compared  to 
Government  housing. 
(d)  (U)  Monetary  loss  resulting  from  the 
forfeiture  of  use  of  Government  facilities,  ex- 
cept medical  facilities.  Procedures  for  payment 
of  medical  care  are  contained  in  paragraph 
2-20. 
(e)  (U)  Authorized  allowances  for  other  U.S. 
personnel  in  the  same  area  (i.e.,  payment  of 
allowances  from  ICF  should  not  result  in 
preferential  treatment  for  intelligence 
personnel) 
(4)  (U)The  decisions  to  approve  the  use  of 
ICF  as  authorized  in  a(2)  and  (3)  above  will 
be  made  individually.  Separate  decisions  are  re- 
quired concerning  use  of  ICF  to  supplement 
housing  expenses  and  living  expenses.  Blanket 
approvals  for  all  personnel  assigned  to  a  par- 
ticular organization  ilffcf"**  authorized. 
ft.  i 
 
2-20.  (U)  Medical  expenses''  $S?/A, 
a.  (U)  Military  personnel.        "V  (tl 
0) 
c.  (U)  Accounting  for  deposits.  When 
deposits  are  required  for  the  rental  of  facilities, 
the  initial  transaction  will  be  shown  separately 
as  a  disbursement  on  the  subvoucher  submit- 
ted for  payment  (deposits  of  this  type  are  not 
considered  cash  advances).  One  copy  of  this 
subvoucher  will  be  placed  in  a  permanent  real 
estate  file  at  the  user  unit  level  for  audit  by 
OACSI.  It  will  be  used  to  prepare  the  collec- 
tion voucher  upon  termination  of  the  lease  and 
recoupment  of  the  deposit.  Unforfeited  portions 
of  security  deposits  will  be  accounted  for  under 
paragraphs  2-23c,  7-9,  and  7-10. 
2-22.  (U)  Busi 
a, 
d~[U)  nemud  of  claiming  reimbursement. 
Intelligence  personnel  will  submit  claims  for 
their  own  medical  expenses  and  those  of  their 
dependents.  A  dependent  may  not  submit  a  sub- 
voucher  for  reimbursement  from  ICF. 
552  (b}(1) 
.  0  USC  552  Jb)  01 
28  MARCH  1986  UPDATE  •  AR  381-141 
'5  USC  552  (b)(1)
(5)  (U)  Payments  to  dependents.    *a 
2-23.  (U)  Disposition  of  income  and 
refunds 
c.  (U)  Refunds.  KerunasoqBPIVKTTelurn 
of  a  security  deposit  made  for  a  safe-site  rental) 
will  be  accounted  for  under  paragraphs  7-9  and 
7-10. 
d.  (U)  Proceeds  from  the  sale  of  surplus 
property.  Income  received  from  the  sale  of 
surplus  intelligence  property  originally  pur- 
chased with  ICF  will  be  forwarded  through  nor- 
mal ICF  channels  for  deposit  into  the  General 
Fund  of  the  Treasury  (see  paras  7-9  and  7-10). 
Proceeds  from  the  sale  of  all  other  property  (in- 
cluding intelligence  property  purchased  with 
open  funds)  will  be  accounted  for  under  AR 
381-143. 
/  (U) Interesieam!imm£K^5n!&f<m ICF 
checking  accounts  will  be  forwarded  through 
normal  ICF  channels  as  stated  in  paragraphs 
7-9  and  7-10  for  deposit  into  the  General  Fund 
of  the  Treasury. 
2-24.  (U)  Training  expenses 
a.  (0)  Controlled  collection  and 
counterintelligence  training  exercises  are  con- 
sidered intelligence  operations.  Under 
paragraph  I -4a,  all  categories  of  expenditures 
authorized  for  the  conduct  of  actual  intelligence 
operations  are  also  authorized  for  Training  ex- 
ercises except  the  following: 
(1)  (U)  Oven  official  contacts. 
(2)  (U)  Bilateral  payments. 
(3)  (U)  Purchase  of  vehicles. 
(4)  (U)  Housing  and  COLA  payments. 
b.  (U)  No  incentive  or  payment  will  be  given 
to  any  person  who  fits  one  of  the  categories 
listed  in  paragraph  2-6b  who  is  playing  the  role 
of  an  agent  of  source. 
c.  (U)  Subvouchers  claiming  payment  for 
training  expenses  will  indicate  that  the  expenses 
were  incurred  in  the  conduct  of  approved  train- 
ing exercises.  All  other  accounting  procedures 
are  identical  to  those  prescribed  for  actual 
operations. 
2-25.  (U)  Special  payments  for  minor 
operational  expenses 
a.  (U)  To  simplify  vouchering  procedures 
and  reduce  the  administrative  burden  on  case 
officers  and  special  agents,  certain  types  of 
minor  expenditures  may  be  consolidated  and 
submitted  monthly  on  a  single  subvoucher, 
either  for  reimbursement  or  credit  against  an 
operational  advance.  Receipts  or  other  support- 
ing documents  should  be  provided  where 
possible;  however,  each  claim  must  be  sup- 
ported by  an  itemized  list  of  the  expenditures. 
The  intent  of  this  procedure  is  not  to  conceal 
types  of  expenditures  that  would  otherwise  be 
unauthorized;  such  consolidations  may  include 
the  following  categories  of  authorized  expenses: 
(1)  (U)  Local  transportation  charges,  when 
not  on  TDY;  i.e.,  taxi,  bus,  train,  or  subway. 
(2)  (U)  Road,  bridge,  or  tunnel  tolls,  when 
not  on  TDY. 
(3)  (U)  Local  or  long  distance  official 
telephone  calls  when  not  on  TDY. 
(4)  (U)  Postage. 
(5)  (U)  Beverages,  snacks,  or  meals  con- 
sumed during  the  conduct  of  casing  or  surveil- 
lance activities.  When  consumed  as  one  of  the 
three  normal  daily  meals  (B/L/D),  per  diem  or 
BAS  will  be  deducted.     »  USC  552  (b)  (1) 
(6)  — 
"Minor  operational  expenses  made  according 
to  AR  381-141,  paragraph  2-25,  for  the  month 
of   ,  for  which  no  other  claim  is  being 
,  .made."  Add  a  reference  to  any  enclosures 
(e.g.,  DD  Form  115),  if  used.  • 
(c)  (U)  The  prescribed  method  of  account- 
ing for  individual  advances  and  returns  of  ICF 
on  DD  Form  1081  is  not  altered  by  any  of  the 
above  procedures. 
Section  III 
Restrictions  on  Certain 
Expenditures  (U) 
2-26.  (U)  Expeditures  requiring  prior 
approval 
a.  (U)  Real  Estate  purchase,  real  estate  ex- 
penses (other  than  purchase)  over  $50,000,  in- 
telligence property  over  $25,000,  and  medical 
expenditures  over  $100,000  require  prior  ap- 
proval of  the  SA.  Source  payments  and  special 
skills  payments  to  U.S.  uniformed  and  civilian 
employees  require  approval  by  the  SA 
regardless  of  the  amount  involved  (see  paras 
2-5,  2-6,  2-13,  2-20,  and  2-21).  DAS  ap- 
proval is  required  for  travel  in  excess  of  nor- 
mal JTR  rates  and  for  housing  and  living  ex- 
penses (see  paras  2-8  .aid  2-19). 
b.  (U)  Besides  any  conditions  stated  in 
preceding  sections,  ICF  may  not  be  used  for 
the  following  types  of  expenditures  without  the 
prior  approval  of  the  command  senior  in- 
telligence officer: 
(1)  (U)  Tickets  to  benefits  (or  similar  func- 
tions) in  excess  of  $100  per  ticket. 
(2)  (U)  Cash  gifts  in  excess  of  $100. 
(3)  (U)  Membership  dues  in  any 
organization. 
c.  (U)  Only  the  SIO  of  a  major  command 
may  approve  expenditures  for  the  following 
purposes,  and  then  only  up  to  a  maximum  of 
$5,000.  Amounts  over  $5,000  require  prior  ap- 
proval of  the  ACSI. 
(J^L)  Emergency  vehicle  repair. 
b-  (U)  Command  senior  intelligence  officers 
or  intelligence  unit  commanders  may  prescribe 
dollar  limitations  on  any  of  the  categories  listed 
above.  However,  the  total  dollar  amount  of  any 
consolidated  claim  may  not  exceed  $50  per 
claimant  per  month.  A  single  subvoucher  may 
be  submitted  for  more  than  one  claimant  if  a 
DD  Form  1 15  (Military  Payroll  Money  List), 
showing  the  names  of  each  claimant  and  the 
amount  claimed  by  each,  is  attached.  Claims 
for  more  than  1  month  may  be  made  on  a  single 
subvoucher,  but  separate  entries  will  be  made 
for  each  month's  claim.The  date  of  expenditure 
will  always  be  the  last  day  of  the  month  for 
which  the  claim  is  made  regardless  of  the  sub- 
mission date  of  the  subvoucher.  The  following 
statement  is  an  example  of  the  justification  that 
should  appear  on  the  face  of  the  subvoucher: 
28  MARCH  1986  UPDATE  •  AR  381-141 
d.  (U)  Expenses  for  meals  or  refreshments 
at  official  meetings  between  U.S.  Army  intel- 
ligence personnel  and  foreign  counterparts. 
Each  request  must  be  fully  documented  as  to 
the  nature  of  the  meeting,  enhancement  of  the 
intelligence  mission,  the  reason  other  appro- 
priated funds  are  not  feasible,  and  the  amount 
and  type  of  expenditure  involved.  Expenses 
may  be  paid  only  in  excess  of  those  a  person 
would  normally  be  expected  to  pay  from  BAS 
or  per  diem,   i.e.,   the  difference   in  the
# 
• 
reasonable  cost  of  an  employee's  meal  and  the 
amount  actually  expended  because  of  the 
unusual  circumstances  of  the  event.  Copies  of 
each  prior  approval  will  be  forwarded  to  HQDA 
(DAMI-PBM)  within  7  working  days  of  the 
approval.  Expenses  are  not  authorized  for  meet- 
ings between  Army  and  other  Department  of 
Defense  personnel  or  U.S.  Federal,  State,  or 
local  government  agencies. 
2-27.  (U)  Unauthorized  expenditures 
(U)  ICF  will  not  be  used  to  pay  for— 
a.  (U)  Control  of  vice. 
b.  (U)  Conduct  of  military  police  operations, 
including  criminal  investigations. 
c.  (U)  Conduct  of  activities  for  which  other 
appropriation  limitations  have  been  made 
available  (see  AR  37-47). 
d.  (U)  Travel  incident  to  inspection  trips  or 
attendance  at  conferences. 
e.  (U)  Any  other  travel  that  is  not  directly 
connected  with  an  intelligence  operation  or  an 
intelligence  training  mission,  or  which  does  not 
meet  the  conditions  stated  in  paragraphs  2-8  and 
2-9. 
/  (U)  Seasonal  greeting  cards. 
g.  (U)  Any  item  specifically  prohibited  by 
the  Congressional  Authorization  or  Appropria- 
tion Acts  of  the  year  of  execution;  e.g.,  PL 
97-377,  dated  21  December  1982. 
(1)  (U)  Sec.  737,  "None  of  the  funds  appro- 
priated by  this  Act  shall  be  available  for  any 
research  involving  uniformed  or  nonvoluntary 
human  beings  as  experimental  subjects;  Pro- 
vided, that  this  limitation  shall  not  apply  to 
measures  intended  to  be  beneficial  to  the  recip- 
ient and  consent  is  obtained  from  the  recipient 
or  a  legal  representative  acting  on  the  recipient's 
behalf." 
(2)  (U)  Sec.  755,  "None  of  the  funds  pro- 
vided by  this  Act  shall  be  used  to  perform  abor- 
tions except  where  the  life  of  the  mother  would 
be  endangered  if  the  fetus  were  carried  to 
term." 
h.  (U)  First  echelon  vehicle  and  equipment 
maintenance.  Such  maintenance  is  the  respon- 
sibility of  the  operator  or  user. 
Chapter  3 
Appointment  and  Responsibilities  of 
Agent  Officers  and  Custodians  (U) 
(U)  Section  I 
Appointments 
3-1.  (U)  Objectives 
a.  (U)  To  expedite  disbursements  of  ICF  and 
to  insure  proper  accountability,  ICF  agent  of- 
ficers and  custodians  will  be  appointed  at 
MACOM,  major  subordinate  command,  and  in- 
telligence units. 
b.  (U)  The  number  and  type  of  appointments 
for  a  particular  command  or  agency  will  depend 
on— 
(1)  (U)  Anticipated  volume  of  dis- 
bursements. 
(2)  (U)  Proximity  to  the  FAO. 
(3)  (U)  Requirements  for  operational 
security. 
c.  (U)  Appendix  F  contains  samples  of  the 
types  of  documents  to  be  used  when  appointing 
ICF  agent  officers  and  custodians.  (See  also  DA 
Pam  600-8,  procedure  7-10.) 
3-2.  (U)  ICF  class  B  agent  officers 
a.  (U)  Function.  Class  B  agents  are  ap- 
pointed to  disburse  ICF  to  class  A  agents,  custo- 
dians, and  intelligence  personnel  assigned  to  the 
various  intelligence  units  within  the  command. 
Class  B  agents  are  also  the  primary  points  of 
contact  for  ICF  policy  within  their  respective 
COm!T.5iKiS. 
b.  (U)  Requirements.  Commissioned  of- 
ficers, warrant  officers,  or  U.S.  civilians,  GS-9 
or  above,  may  be  appointed  as  ICF  class  B 
agent  officers.  Since  such  appointments  are  nor- 
mally made  only  at  the  headquarters  of 
MACOMs  or  major  subordinate  commands, 
class  B  agents  will  be  appointed  from  the  staffs 
of  command  SIOs.  Other  units  and  agencies  will 
not  appoint  class  B  agents,  un'ess  authority  is 
granted  by  the  ACSI. 
c.  (U)  Appointments.  Class  B  agents  will  be 
appointed  by  the  headquarters  to  which  they  are 
assigned.  (See  app  F  for  procedures  to  be  used 
when  making  appointments.) 
d.  (U)  Total  accountability.  The  command 
senior  intelligence  officer  will  determine  the 
limitation  of  accountability  and  the  amount  of 
cash  authorized  to  be  kept  in  the  custody  of  the 
class  B  agent.  The  dollar  amounts  of  total  ac- 
countability and  cash  on  hand  will  be  specified 
in  the  appointing  documents. 
3-3.  (U)  ICF  class  A  agent  officers 
a.  (U)  Function.  Class  A  agents  are 
designated  as  such  by  their  commanders  (or 
agency  chiefs)  to  disburse  ICF  to  intelligence 
personnel  assigned  to  their  units.  Subordination 
of  the  ICF  class  A  agent  will  be  no  lower  than 
the  Deputy  Commander  or  an  individual 
occupying  a  similar  position. 
b.  (V)  Requirements.  Commissioned  of- 
ficers, warrant  officers,  or  U.S.  civilians,  GS-9 
or  above,  assigned  to  intelligence  units  or  agen- 
cies may  be  appointed  as  ICF  class  A  agent 
officers. 
c.  (U)  Appointments.  Since  ICF  class  A 
agents  conduct  their  fiscal  operations  through 
the  command  ICF  class  B  agent,  their  appoint- 
ments will  be  made  by  the  same  headquarters 
that  appointed  the  class  B  agent.  Such  appoint- 
ments are  normally  made  only  by  MACOMs 
or  major  subordinate  commands.  If  authority 
has  been  granted  by  the  ACSI,  HQDA,  for  ap- 
pointment of  a  class  B  agent  at  an  intelligence 
unit  (see  para  3-26>  above),  then  that  unit  com- 
mander may  also  appoint  ICF  class  A  agents 
if  required.  Follow  the  procedures  illustrated 
in  appendix  F  when  making  appointments. 
d.  (U)  Total  accountability.  Along  with  re- 
quests for  appointments  of  class  A  agents,  unit 
commanders  will  recommend  to*  the  command 
senior  intelligence  officer  the  limitation  of  ac- 
countability and  amount  of  cash  required  to  be 
kept  on  hand  by  the  ICF  class  A  agent.  The 
dollar  amounts  of  total  accountability  and  cash 
on  hand  authorized  by  the  command  SIO  will 
be  specified  in  the  appointing  documents. 
3-4.  (U)  ICF  class  A  custodians 
a.  (U)  Function.  ICF  class  A  custodians  are 
appointed  to  disburse  ICF  to  personnel  assigned 
to  intelligence  units  located  beyond  normal 
commuting  distance  from  an  ICF  class  A  or  B 
agent  officer. 
b.  (U)  Requirements.  Commissioned  of- 
ficers, warrant  officers,  enlisted  personnel,  or 
civilians  may  be  appointed  as  ICF  class  A  custo- 
dians by  commanders  of  intelligence  units. 
c.  (U)  Appointments.  ICF  class  A  custodians 
will  be  designated  by  their  parent  unit  com- 
manders. Follow  procedures  in  appendix  F 
when  making  appointments. 
d.  (U)  Total  accountability;  The  limitation 
of  accountability  and  amount  of  cash  to  be  kept 
on  hand  will  be  determined  by  the  appointing 
authority  and  will  be  specified  in  the  appoint- 
ing documents. 
3-5.  (U)  Special  custodians 
Special  custodians  may  be  appointed  to  support 
those  operations  wherein  security  is  of  para- 
mount importance;  viz.,  where  conditions  are 
such  that  funds  must  be  disbursed  and  accounted 
for  in  a  manner  that  provides  a  greater  degree 
of  security  than  can  be  afforded  in  normal  ICF 
channels.  Such  appointments  must  be  author- 
ized by  the  ACSI. 
(U)  Section  II 
Procedures 
3-6.  (U)  ICF  class  B  agent  officers 
ICF  class  B  agents  should  make  funds  available 
to  as  many  ICF  class  A  agents  and  custodians 
as  needed  to  ensure  financial  support  to  all  in- 
telligence units  within  the  command. 
a.  (U)  Pecuniary  responsibilities.  Class  B 
agents  ire  pecuniarily  responsible  to  the  FAO 
to  whom  they  are  appointed. 
b.  (U)  Maintenance  of  records.  To  ensure 
proper  accountability  for  ICF,  class  B  agents 
will  maintain  the  following  records  and 
documents: 
(1)  (U)  Copies  of  appointing  documents  for 
the  following  individuals: 
(a)  (U)  CAOs  for  DD  Forms  281  (see  para 
1-5/). 
(b)  (U)  Approving  officers  for  DA  Forms 
3697-R  (see  the  glossary). 
(c)  (U)  ICF  class  B  agents. 
W)  (U)  ICF  class  A  agents. 
28  MARCH  1986  UPDATE  •  AR  381-141
(?)  (U)  ICF  class  A  custodians,  appointed 
directly  to  the  class  B  agent. 
(2)  (U)  Instructions  received  from  the  FAO. 
(3)  (U)  ICF  Cash  Blotter  (DA  Form  703). 
(4)  (U)  Statement  of  Agent  Officer's  Account 
(DD  Form  1081)  for  the  following  transactions: 
(a)  (U)  Advances  of  funds  from  or  returns 
of  funds  and  vouchers  to  the  FAO. 
(b)  (U)  Advances  of  funds  to  or  return  of 
funds  or  subvouchers  from  class  A  agents,  class 
A  custodians,  or  intelligence  personnel. 
(5)  (U)  A  copy  of  vouchers  for  Confidential 
Expenditures  (DD  Form  281a,  Memorandum 
Copy). 
(6)  (U)  Copies  of  Cash  Collection  Vouchers 
(DD  Forms  1131)  and  DD  Forms  634  (see 
paras  7-9  and  7-10). 
(7)  (U)  Originals  of  Subvouchers  for 
Disbursement  from  Confidential  Funds  (DA 
Forms  3697),  with  receipts  and  all  other  sup- 
porting documents  attached. 
(8)  (U)  Subsidiary  Currency  Ledgers  (DA 
Forms  2362-R),  if  required. 
(9)  (U)  Copies  of- 
(a)  (U)  Reports  of  command  inspections, 
audit  by  OACSI  and  all  other  audit  or  inspec- 
tion reports  (see  chap  6). 
(b)  (U)  Reports  of  inspection  of  subordinate 
class  A  agent  and  custodian  accounts. 
(10)  (U)  Any  special  authorizations  or  other 
data  that  will  support  expenditures  of  ICF. 
(11)  (U)  ICF  account  access  register  (see 
para  1-6). 
c.  (U)  Inspection  requirements.  (See  chap  6.) 
d.  (U)  Disposition  of  vouchers  and 
subvouchers. 
(1)  (U)  Subvouchers  (DA  Forms  3697-R) 
that  have  been  approved  by  the  approving  of- 
ficer will  be  consolidated  and  totaled  so  that  a 
voucher  (DD  Form  281)  can  be  prepared  and 
submitted  to  the  FAO. 
(2)  (U)  DD  Form  281  will  be  prepared  and 
certified  according  to  the  instructions  con- 
tained in  paragraph  7-7.  Original  subvouchers 
paid.by  the  class  B  agent,  along  with  those  sub- 
mitted for  credit  by  class  A  agents  or  custo- 
dians, will  be  forwarded  to  the  command 
C&AO  for  review  at  least  monthly  and  at  any 
other  time  specified  by  the  C&AO. 
(3)  (U)  Subvouchers  that  the  C&AO  has  re- 
jected will  either  be  adjusted  by  the  class  B 
agent  if  payment  were  made  by  him  or  her,  or 
returned  to  the  class  A  agent  or  custodian  who 
submitted  them.  A  collection  action  will  be  ac- 
complished (see  para  7-9)  for  any  claim  not  ap- 
proved for  payment  by  the  C&AO. 
(4)  (U)  The  original  DD  Form  281  and  four 
copies  of  DD  Form  281a,  Memorandum  Copy, 
will  be  forwarded  to  the  FAO  with  an  accom- 
panying DD  Form  1081  (see  para  7-7). 
(5)  (U)  After  the  class  B  agent's  copy  of  DD 
Form  281a  has  been  returned  by  the  FAO,  it 
will  be  attached  to  the  original  subvouchers  (DA 
Forms  3697-R)  and  filed  for  audit  and 
inspection. 
3-7.  (U)  Class  A  agent  officers 
ICF  class  A  agents  should  make  funds  available 
to  intelligence  personnel  within  their  units  and 
to  as  many  ICF  class  A  custodians  as  needed 
to  ensure  fiscal  support  of  approved  operations. 
a.  (U)  Pecuniary  responsibility.  Class  A 
agents  are  pecuniarily  responsible  through  the 
class  B  agent  to  the  FAO  to  whom  they  are  ap- 
pointed. However,  they  will  conduct  all  ICF 
transactions  through  the  command  ICF  class  B 
agent. 
b.  (V)  Maintenance  of  records.  Class  A 
agents  will  maintain  the  following  records  and 
documents: 
(1)  (U)  Copies  of  appointing  documents  for 
the  following  individuals: 
(a)  (U)  Approving  officers  (see  para  l-5g). 
(V)  (U)  ICF  class  A  agents, 
(c)  (U)  ICF  class  A  custodians. 
(2)  (U)  A  copy  of  any  instructions  received 
from  the  class  B  agent. 
(3)  (U)  ICF  Cash  Blotter  (DA  Form  703). 
(4)  (U)  Statement  of  Agent  Officer's  Account 
(DD  Form  108 1 )  for  the  following  transactions: 
(a)  (U)  Advances  of  funds  from  or  returns 
of  funds  and  subvouchers  to  the  ICF  class  B 
agent. 
(b)  (U)  Advances  of  funds  to  or  returns  of 
funds  and  subvouchers  from  ICF  class  A  custo- 
dians or  intelligence  personnel. 
(5)  (U)  Receipt  for  Miscellaneous  Collec- 
tions (DD  Form  634),  if  used. 
(6)  (U)  Duplicate  copies  of  paid  subvouchers 
(DA  Forms  3697-R)  without  supporting 
documentation. 
(7)  (U)  Subsidiary  Currency  Ledgers  (DA 
Forms  2362-R),  if  required. 
(8)  (U)  Copies  of- 
(a)  (U)  Reports  of  command  inspections, 
audits  by  OACSI,  inspections  by  the  ICF  class 
B  agent,  and  all  other  audit  and  inspection 
reports. 
(ft)  (U)  Reports  of  inspection  of  subordinate 
ICF  class  A  custodian  accounts. 
(9)  (U)  Any  other  data  or  special  authoriza- 
tions that  will  support  expenditures  of  ICF. 
(10)  (U)  ICF  Account  Access  Register  (see 
para  1-6). 
c.  (U)  Inspection  requirements.  (See  chap  6.) 
d.  (U)  Procedures  for  making  returns. 
Returns  will  be  made  to  the  ICF  class  B  agent 
in  the  following  manner: 
(1)  (U)  At  the  end  of  each  accounting  period, 
as  specified  by  the  class  B  agent,  the  class  A 
agent  will  assemble  all  approved  subvouchers 
paid  during  the  period  and  will  forward  them 
to  the  class  B  agent,  along  with  a  letter  of 
transmittal.  The  letter  of  transmittal  will  include 
a  list  of  the  subvouchers  showing  the  number 
and  amount  of  each  subvoucher  and  the  name 
of  each  claimant. 
(2)  (U)  A  Statement  of  Agent  Officer's  Ac- 
count (DD  Form  1081)  will  accompany  the  sub- 
vouchers  (see  para  7-4). 
e.  (U)  Requests  for  advances.  All  requests 
for  advances  of  funds  will  be  forwarded  through 
the  unit  commander  to  the  ICF  class  B  agent , 
or  as  otherwise  directed  by  the  major  command. 
3-8.  (U)  Class  A  custodians 
a.  (U)  Pecuniary  responsibility.  ICF  class  A 
custodians  are  pecuniarily  responsible  to  the 
ICF  class  A  agent  (or  class  B  agent)  to  whom 
they  are  appointed.  ; 
b.  (U)  Maintenance  of  records.  ICF  class  A 
custodians  will  maintain  the  following  records: 
( 1 )  (U)  Copies  of  appointing  documents  for 
the  following  individuals: 
(a)  (U)  Approving  officer  (see  para  l-5g). 
(b)  (U)  ICF  class  A  custodian. 
(2)  (U)  A  copy  of  any  instructions  received 
from  the  IFC  class  B  or  class  A  agent. 
(3)  (U)  ICF  Cash  Blotter  (DA  Form  703). 
(4)  (U)  Statement  of  Agent  Officer's  Account 
(DD  Form  1081)  for  the  following  transactions: 
(a)  (U)  Advances  of  funds  from  or  returns 
of.funds  and  subvouchers  to  the  ICF  class  A 
(or  class  B)  agent  officer. 
(b)  (U)  Advances  of  funds  to  or  returns  of 
funds  and  subvouchers  from  intelligence 
personnel. 
(5)  (U)  Receipts  for  Miscellanous  Collec- 
tions (DD  Forms  634),  if  used  (see  para  7-10). 
(6)  (U)  Copies  of  paid  subvouchers  (DA 
Forms  3697-R)  without  supporting  documen- 
tation. 
(7)  (U)  Subsidiary  Currency  Ledgers  (DA 
Forms  2362-R)  if  applicable. 
(8)  (U)  Copies  of  reports  of  command  in- 
spections, audits  by  OACSI,  inspections  by  the 
class  A  or  class  B  agent,  and  all  other  audit  and 
inspection  reports. 
(9)  (U)  Any  other  data  or  special  authoriza- 
tions that  will  support  expenditures  of  ICF. 
(10)  (U)  ICF  Accoun  Access  Register  (see 
para  1-6). 
C.  (U)  Procedures  for  making  returns.  Sub- 
vouchers  or  cash  will  be  returned  at  the  times 
and  in  the  manner  stated  by  the  class  A  (or  class 
B)  agent.  Procedures  should  conform  to  those 
stated  in  paragraph  3-7a"  above. 
d.  (U)  Requests  for  advances.  AH  requests 
for  advances  of  funds  will  be  forwarded  through 
the  approving  officer  or  the  commander  to  the 
ICF  class  A  (or  class  B)  agent  officer  or  as 
otherwise  directed  by  the  major  command. 
3-9.  (U)  Special  custodians 
a.  (U)  Categories.  Special  custodians  belong 
to  one  of  the  following  general  categories: 
(1)  (U)  Those  appointed  by  the  ACS.  to  sup- 
port certain  operations  requiring  unique  funding 
arrangements. 
(2)  (U)  Those  appointed  by  commanders  of 
intelligence  units  (with  prior  approval  of  the 
ACSI)  to  support  operations  that  require 
extraordinary  accounting  procedures  and  secu- 
rity measures  not  afforded  in  normal  ICF  ac- 
counting channels. 
28  MARCH  1986  UPDATE  •  AR  381-141
b.  (U)  Accounting  procedures.  Procedures 
for  establishing  and  maintaining  special  custo- 
dian accounts  will  vary  with  specific  re- 
quirements and  will  be  furnished  by  the  appoint- 
ing authority.  Such  procedures  will  follow  those 
stated  in  this  chapter  to  the  extent  possible. 
3-10.  (U)  Claimants 
All  claims  for  ICF,  including  requests  for  ad- 
vances of  funds,  will  be  supported  by  written 
authorization  from  the  claimant's  commander 
or  supervisor  and  will  be  forwarded  through  the 
approving  officer  to  the  ICF  class  A  (or  class 
B)  agent  officer  or  as  otherwise  directed  by  the 
major  command.  There  is  no  particular  format 
prescribed  for  the  written  authorization. 
Chapter  4 
(U)  Control  of  intelligence 
Contingency  Funds 
(U)  Section  I 
Safeguarding  of  Funds 
4-1 .  (U)  Physical  security  requirements 
a.  (U)  Storage  of  cash.  The  term  *  'cash"  in- 
cludes foreign  currency  as  well  as  all  types  of 
U.S.  currency  ("Green"  and  Military  Payment 
Certificates),  Treasury  checks,  and  other 
negotiable  instruments.  Cash  on  hand  will  be 
kept  separately  in  a  safe  that  has  a  combina- 
tion lock.  Only  the  person  responsible  for  the 
cash  (i.e.,  the  class  B  or  A  agent,  or  custodian) 
will  have  knowledge  of  the  combination.  A 
sealed  envelope  containing  the  combination  will 
be  given  to  the  commander,  and  will  be  opened 
only  upon  the  death,  incapacitation,  or  relief 
of  the  responsible  person.  Safe  combinations 
will  be  changed  upon  transfer  of  the  agent  or 
custodian. 
b.  (U)  Checking  accounts. 
(1)  (U)  In  lieu  of  cash  on  hand,  the  ACSI, 
HQDA,  may  authorize  class  B  or  A  agents, 
class  A  custodians,  special  custodians  or 
claimants  to  establish  checking  accounts  when— 
(a)  (U)  It  is  necessary  to  transmit  ICF  to 
subordinate  agent  officers,  custodians,  or  in- 
telligence personnel  who  are  located  beyond 
normal  commuting  distance  from  their  source 
of  ICF  and  US  Treasury  checks  cannot  be  ob- 
tained or  security  requirements  preclude  their 
use;  or 
(b)  (U)  A  checking  account  will  provide  a 
method  for  safeguarding  ICF  which  is  not  other- 
wise available;  or 
(c)  (U)  Circumstances  are  such  that  the 
establishment  of  a  checking  account  will  insure 
more  efficient  conduct  of  ICF  transactions. 
(2)  (U)  Requests  for  the  establishment  of 
checking  accounts  will  be  forwarded,  along 
with  justification,  to  HQDA  (DAMI-PBM).  As 
a  minimum,  justification  will  include  the 
reasons  for  establishing  the  account,  type  of  ac- 
count, type  of  currency,  name  and  location  of 
banking  facility,  and  name  and  title  of  persons 
authorized  to  draw  checks  against  the  account. 
Procedures  for  the  administration  and  control 
of  checking  accounts  are  contained  in  appen- 
dix B. 
(3)  (U)  Only  banks  or  credit  unions  that  have 
been  recommended  by  USAFAC  and 
designated  by  the  Secretary  of  the  Treasury  as 
a  general  depositary  will  be  utilized.  (See  AR 
37-103,  par  3-92c.) 
c.  (U)  Added  information.  For  more  infor- 
mation about  physical  security  requirements, 
see  AR  37-103,  chapter  3,  section  III.  IV,  and 
V. 
4-2.  (U)  Loss  of  funds 
a.  (U)  When  ICF  are  lost  or  not  properly  ac- 
counted for,  subvoucher  (DA  Form  3697-R) 
will  be  prepared  for  the  amount  of  the  loss  (see 
7-16).  The  form  will  be  kept  separate  from  all 
other  subvouchers  and  forwarded  immediately 
to  the  class  B  agent  (with  the  accompanying  DD 
Form  1081).  For  fiscal  accountability,  the 
amount  of  the  loss  will  be  included  on  the  DD 
Form  281  prepared  by  the  class  B  agent. 
b.  (U)  The  matter  will  be  reported  without 
delay  to  the  appropriate  MACOM  headquarters. 
In  the  absence  of  such  a  headquarters,  report 
the  matter  to  HQDA  (DAMI-PBM).  A  full  in- 
vestigation will  be  made  as  required  by  AR 
37-103.  Results  of  all  board  proceedings  and 
other  actions  relating  to  the  loss  will  be  for- 
warded to  the  ACSI.  The  ACSI  will  review  the 
proceedings.  On  behalf  of  the  SA  the  ACSI  will 
take  whatever  action  is  determined  to  be  in  the 
best  interests  of  the  United  States,  considering 
the  security  aspects  of  the  case.  The  case  will 
be  forwarded  to  the  COA  for  legal  and  finan- 
cial review  and  decision. 
c.  (U)  Uniformed  and  civilian  employees  of 
the  Government  will  be  held  pecuniarily  liable 
for  loss  of  funds. 
d.  (U)  For  more  information  about  loss  of 
funds,  see  AR  37-103,  chapter  3,  section  VIII. 
(U)  Section  II 
Control  of  Foreign  Currency 
4-3.  (U)  Acquisition 
a.  (U)  In  overseas  commands,  foreign  cur- 
rencies will  be  obtained  as  prescribed  by  the 
command's  currency  regulations. 
b.  (U)  In  foreign  areas  not  under  the  jurisdic- 
tion of  an  oversea  commander,  and  where  the 
services  of  an  FAO  are  not  available,  an  ap- 
plication for  foreign  currency  requirements  will 
be  made  directly  to  the  U.S.  embassy  or  lega- 
tion. If  currency  is  not  available  from  those 
sources,  it  will  be  purchased  as  prescribed 
below. 
c.  (U)  Foreign  currencies  not  obtainable 
from  any  of  the  above  sources  will  be  acquired 
from  local  banking  or  other  legitimate  sources 
who  are  authorized  by  the  government  of  the 
country  concerned  to  engage  in  foreign  cur- 
rency transactions. 
28  MARCH  1986  UPDATE  •  AR  381-141 
d.  Regardless  of  the  source  of  acquisition, 
a  record  of  all  foreign  currency  purchases  will 
be  made  and  will  be  supported  by  an  exchange 
receipt,  signed  by  an  official  of  the  establish- 
ment from  which  the  currency  was  obtained, 
showing  the  amount  purchased,  the  date  of  the 
purchase  and  the  rate  of  exchange  used  in  the 
transaction.  When  receipts  are  not  available, 
certificates  containing  the  same  information  will 
be  prepared.  Official  receipts  or  certificates  will 
be  retained  with  other  ICF  records  for  audit  and 
examination. 
e.  (U)  On  extremely  rare  occasions  when  the 
purchase  of  foreign  currencies  from  the  sources 
described  above  is  not  operationally  feasible, 
currencies  may  be  purchased  from  other  sources 
if  authorized  by  the  intelligence  unit 
commander. 
/  (U)  To  minimize  gains  and  losses  as  a 
result  of  frequent  currency  conversion  transac- 
tions due  to  fluctuating  exchange  rates,  ICF 
agents  and  custodians  should  make  one  bulk 
purchase  of  currency  per  accounting  period  in- 
stead of  several  smaller  purchases.  When  possi- 
ble, intelligence  personnel  should  obtain  foreign 
currencies  from  ICF  agents  or  custodians.  In- 
dividual purchases  by  intelligence  personnel 
should  be  made  only  as  the  last  resort. 
g.  (U)  Units  whose  contingency  missions  in- 
clude the  need  for  immediate  expenditures  of 
ICF  upon  arrival  in  an  oversea  area  should  keep 
on  hand  necessary  amounts  of  the  appropriate 
foreign  currencies  for  issue  just  prior  to  deploy- 
ment. Currencies  may  be  obtained  from  any 
legitimate  US  banking  or  financial  institution. 
Receipts  will  be  acquired  and  maintained  as 
stated  in  d  above. 
h.  (U)  The  SIO  must  approve  all  foreign  cur- 
rency holdings  up  to  $5,000.  Organizations  that 
hold  (cumulatively)  more  than  $5,000  of  foreign 
currency  must  obtain  ACSI  approval.  All  cur- 
rency holdings  must  conform  to  AR  37-103 
procedures  for  cash  on  hand. 
4-4.  (U)  Accountability 
More  than  one  type  of  currency  may  be  kept 
on  hand  by  an  ICF  class  B  or  A  agent  or  custo- 
dian (or  only  foreign  currency  may  be  kept). 
If  so,  a  Subsidiary  Currency  Ledger  (DA  Form 
2362-R)  will  be  maintained  for  each  type  of 
currency  being  used,  and  for  each  different  ex- 
change rate  of  a  particular  foreign  currency. 
The  ledger  will  show  that  amount  on  hand  in 
both  foreign  and  U.S.  dollar  values  and  the  rate 
of  exchange  at  which  the  currency  was  acquired 
(see  par  7-8  and  fig  7-21).  The  total  U.S.  dollar 
balances  of  all  currencies  listed  on  Subsidiary 
Currency  Ledgers  should  always  equal  the 
balance  in  the  Cash  on  Hand  column  of  the  Cash 
Blotter  (DA  Form  703)  after  reconciling  for 
conversion  gains  and  losses  (see  par  4-7). 
4-5.  (U)  Conversion  rates 
a.  (U)  Foreign  currencies  having  stable  ex- 
change rates.  The  rate  of  exchange  to  be  used
in  computing  the  U.S.  dollar  equivalent  for  ac- 
tual subvoucher  disbursements  is  the  rate  of  ex- 
change at  which  the  currency  was  acquired. 
b.  (U)  Foreign  currencies  having  varying  ex- 
change rates.  The  rate  of  exchange  to  be  used 
in  computing  the  U.S.  dollar  equivalent  for  ac- 
tual voucher  disbursement  on  sales,  when  ex- 
pressed in  terms  of  local  currencies,  may  be  an 
average  rate  reduced  or  increased  to  the  nearest 
mill.  However,  a  separate  Subsidiary  Currency 
Ledger  (DA  Form  2362-R)  must  be  used  for 
each  different  exchange  rate. 
c.  (U)  Exchange  gains  or  losses.  Gains  or 
losses  incurred  as  a  result  of  foreign  currency 
purchases  and  related  transactions  will  be  ac- 
counted for  as  stated  in  paragraph  4-7. 
4-6.  (U)  Recognizing  conversion  gains 
and  losses 
a.  (U)  How  gains  and  losses  occur.  Conver- 
sion gains  and  losses  are  minor  increases  or 
decreases  to  total  accountability  resulting  from 
the  requirement  that  foreign  currency  transac- 
tions be  reflected  in  U.S.  dollar  equivalent 
values.  A  gain  or  loss  can  occur  when  the  sum 
of  the  U.S.  dollar  values  of  the  individual 
foreign  currency  expenditures  does  not  equal 
the  U.S.  dollar  value  of  the  total  amount  of  the 
foreign  currency  expended  (i.e.,  the  whole  is 
actually  greater  or  smaller  than  the  sum  of  its 
parts).  Conversion  errors  can  occur  on  the  ac- 
counting records  as  follows: 
(1)  (U)  DA  Form  2362-R  (Subsidiary  Cur- 
rency Ledger).  A  gain  or  loss  could  result 
anytime  an  amount  of  foreign  currency  is 
added  to  subtracted  from  the  Subsidiary  Cur- 
rency Ledger,  and  the  new  balance,  convened 
to  U.S.  currency,  is  more  or  less  than  the  sum 
of  each  individual  U.S.  line  item  amount. 
(2)  (U)  DD  Form  1081  (Statement  of  Agent 
Officer 's  Account).  A  foreign  currency  balance 
may  exist  in  a  particular  account  and  an  amount 
of  that  same  foreign  currency  may  be  added  to 
or  subtracted  from  the  original  balance.  If  so, 
the  resulting  equivalent  U.S.  dollar  balance 
could  be  more  or  less  than  the  sum  of  the  in- 
dividual U.S.  dollar  amounts.  For  example,  a 
person  has  a  cash  advance  of  70  marks  at  the 
beginning  of  the  month.  He  or  she  draws  an 
additional  advance  of  40  marks  (at  the  same  ex- 
change rate;  e.g.,  3  marks  equals  SI  in  U.S. 
currency)  from  the  ciass  A  agent.  The  U.S. 
dollar  value  of  the  beginning  balance  is  S23.33 
(70  -i-  3),  while  the  U.S.  dollar  value  of  the 
additional  advance  is  $13.33  (40  -r  3).  The  total 
of  the  A  U.S.  dollar  equivalents  is  S36.66 
($23.33  +  13.33).  However,  when  the  total 
number  of  marks  is  convened  to  U.S.  dollars, 
the  balance  is  $36.67  (110  -=-  3);  an  apparent 
1  cent  gain  has  occurred  in  the  class  A  agent's 
accounts. 
(3)  (V)  DA  Form  3697-R  (Subvoucher  for 
Disbursement  from  Confidential  Funds).  A  con- 
version gain  or  loss  can  occur  on  any  sub- 
voucher  having  two  or  more  expenditures  of 
foreign  currency  listed  thereon.  Again,  the  gain 
or  loss  will  occur  whenever  the  sum  of  the  U.S. 
dollar  value  of  the  individual  foreign  currency 
expenditures  does  not  equal  the  U.S.  dollar 
value  of  the  total  amount  of  foreign  currency 
expended.  For  example,  a  subvoucher  is  sub- 
mitted that  reflects  the  expenditure  of  1,000, 
35,000,  and  655  Indian  rupees.  At  an  exchange 
rate  of  1,700  rupees  equals  $1  in  U.S.  currency, 
these  expenditures  have  U.S.  dollar  values  of 
$0.59, 20.59,  and  $0.39,  respectively.  The  sum 
of  the  U.S.  dollar  values  of  these  individual  ex- 
penditures is  $21.57.  However,  a  total  of 
36,655  rupees  was  expended,  which  had  a  U.S. 
dollar  value  of  $2 1.56  (36,655  -^  1.700).  The 
1  cent  difference  was  an  apparent  conversion 
loss  resulting  from  the  transaction. 
b.  (U)  Minimizing  conversion  gains  and 
losses. 
(1)  (U)  The  conversion  gains  and  losses 
shown  in  the  example  above  were  actually  er- 
rors that  resulted  from  rounding  the  U.S.  dollar 
equivalents  at  the  second  decimal  place.  If  in- 
dividual expenditures  are  convened  and  carried 
out  to  the  fourth  decimal  place,  conversion 
gains  and  losses  will  almost  never  occur.  Notice 
what  happens  to  the  conversion  "loss"  il- 
lustrated in  a(3)  above  when  the  convened  U.S. 
dollar  amounts  are  carried  out  to  four  decimal 
places: 
U.S.  Dollar  Equivalents 
(3  marks=S1.00) 
U.S. Dollar  Equivalent  of  Individual 
Expenditures 
Indian 
Rupees 
2  decimal 
places 
4  decimal 
places 
1,000 
35.000 
655 
$0.59 
20.59 
.39 
$0.5882 
20.5882 
.3852 
36,655 
$21.57 
$21.5617 
U.S.  equivalent  of  36,655  rupees  = 
36.655-rl.700  or  $21.5617;  no  gain  or  loss. 
In  the  long  run,  it  would  be  well  worth  the  time 
and  effort  to  carry  out  all  conversion  computa- 
tions to  four  decimal  places  rather  than  try  to 
account  for  conversion  gains  or  losses. 
(2)  (U)  Subvoucher  gains  and  losses  can  also 
be  prevented  by  preparing  subvouchers  in  the 
following  manner: 
(a)  (U)  Convert  each  foreign  currency  ex- 
penditure and  show  the  U.S.  dollar  equivalent 
parenthetically. 
(b)  (U)  Add  the  U.S.  dollar  equivalents  of 
the  individual  expenditures,  but  show  this  total 
only  parenthetically.  Do  not  pay  this  amount. 
(c)  (U)  Add  all  the  individual  foreign  cur- 
rency expenditures. 
(d)  (U)  Convert  the  total  foreign  currency 
amount;  pay  this  amount  and  record  only  this 
amount  in  the  accounts. 
(e)  (U)  Place  this  statement  on  the  sub- 
voucher:  "Totals  may  not  add  because  of 
rounding."  The  following  example  illustrates 
the  above  procedures: 
German  Marks 
(rounded  off  at 
2  decimal  places) 
4.85 
($1.62) 
7.50 
(2.50)        ' 
2.00 
(.67) 
.50 
(.17) 
1.55 
(.52) 
9.65 
(3.22) 
26.05 
($8.70) 
26.05  marks -5-3  =$8.68 
Amount  of  claim  to  be  paid:  $8.68 
The  total  U.S.  dollar  amount  of  each  in- 
dividual expenditure  is  $8.70;  26.05  marks  con- 
verted to  U.S.  dollars  equals  $8.68.  Since  the  ■■ 
2  cent  difference  is  due  to  rounding  only,  the 
above  method  is  acceptable  for  accounting  pur- 
poses. It  prevents  the  occurrence  of  a  gain  or 
loss  since  only  one  U.S.  dollar  equivalent  is  ac- 
tually used;  i.e.,  the  total  foreign  currency 
equivalent.. 
(3)  (U)  If  the  procedures  in  (1)  or  (2)  above    ; 
are  not  followed,  gains  or  losses  still  will  not 
occur  unless— 
(a)  (U)  Direct  reimbursement  is  made  in  a 
foreign  currency,  or 
(b)  (U)  The  amount  of  the  claim  is  applied 
against  an  advance  of  foreign  currency.  If  reim- 
bursement is  made  in  U.S.  currency  (or 
Military  Payment  Certificate  (MPQ)  or  applied 
against  an  advance  of  U.S.  currency  only,  a 
gain  or  loss  cannot  occur  because  no  foreign 
currency  is  disbursed  and  no  entries  involving 
foreign  currency  amounts  are  made  on  the  ICF 
agent  or  custodian's  accounting  records. 
(4)  (U)  The  nature  of  a  particular  account  and  . 
the  amount  of  foreign  currency  transactions  will  ■ 
determine  the  desired  method  of  computing 
foreign  currency  transactions.  However,  in 
every  instance,  it  will  be  easier  to  prevent  con- 
version gains  and  losses  than  to  account  for 
them. 
4-7.  (U)   Accounting   for  conversion 
gains  and  losses 
a.  (U)  Regardless  of  how  much  effort  is  ex- 
pended in  minimizing  gains  and  losses,  they 
cannot  be  completely  eliminated.  Even  though 
they  are  relatively  minor,  they  must  be  formally 
accounted  for  at  every  ICF  agent  and  custodian 
level. 
b.  (U)  Immediately  before  the  submission  of 
subvouchers,  conversion  gains  and  losses  will 
be  totaled.  Gains  will  be  used  to  offset  losses. 
Net  gains  or  losses  between  class  B  agents  and 
class  A  agents,  class  A  agents  and  class  A  custo- 
dians, and  ICF  agents  or  custodians  and 
claimants  who  have  operational  advances  of 
ICF  may  be  recorded  on  DD  Form  1081  and 
forwarded  to  the  next  higher  level  of  account- 
ability, or  carried  on  the  cash  blotter  as  a  pen- 
cil entry.  If  forwarded,  total  accountability  will 
be  adjusted  in  the  normal  manner,  only  after 
28  MARCH  1986  UPDATE  •  AR  381-141
the  DD  1081  has  been  accepted  and  returned 
to  the  appropriate  agent  or  custodian;  i.e. ,  credit 
will  be  given  for  net  losses;  total  accountability 
will  be  increased  by  the  amount  of  any  net 
gains.  Proper  methods  of  recording  gains  and 
losses  are  shown  on  the  sample  Cash  Blotters 
in  appendix  D. 
c.  (U)  The  class  B  agent's  total  accountability 
must  equal  the  sum  of  Che  total  accountability 
of  all  subordinate  accounts  (plus  any  cash  on 
hand  or  subvouchers  originated  at  the  class  B 
agent  level).  Therefore,  accumulated  net  gains 
or  losses  at  the  class  B  agent  level  must  be  for- 
mally accounted  for  as  follows: 
(1)  (U)  Total  accountability  will  be  adjusted 
as  stated  in  b  above. 
(2)  (U)  Accumulated  net  gains  from  all 
subordinate  agent  and  custodian  accounts  will 
be  reported  to  the  FAO  on  DD  Form  1131 
(Cash  Collection  Voucher). 
(3)  (U)  Accumulated  net  losses  from  all 
subordinate  agent  and  custodian  accounts  will 
be  accounted  for  on  a  subvoucher  (DA  Form 
3697-R).  Only  one  such  subvoucher  need  be 
prepared  per  accounting  period.  (See  table  D-3 
(PR  Number  24),  and  fig  D-3.) 
(4)  (U)  In  any  one  accounting  period,  either 
a  DD  Form  1 131  or  a  DA  Form  3697-R  wUl 
be  used,  but  not  both.  Preparation  and  submis- 
sion of  the  DD  Form  1 131  by  the  class  B  agent 
will  be  accomplished  as  stated  in  paragraph  7-9; 
DA  Form  3697-R  will  be  prepared  as  stated 
in  paragraph  7-5  (see  also  fig  7-17).  DD  Form 
1131  or  DA  3697-R  will  not  be  used  to  account 
for  conversion  gains  and  losses  below  the  class 
B  agent  level. 
(U)  Section  III 
Control  of  Special  Purpose  Accounts 
4-8.  (U)  Withholding  accounts 
Commanders  of  military  intelligence  units  may 
establish  withholding  accounts  for  each  opera- 
tions plan  requiring  their  use.  Prior  approval 
to  establish  such  accounts  must  be  obtained 
from  the  command  senior  intelligence  officer 
or,  in  his  or  her  absence,  from  the  ACSI. 
Specific  procedures  for  maintaining  each 
withholding  account  will  be  described  in  the  ap- 
plicable operations  plan.  Amounts  obligated 
must  be  within  fiscal  year  limitations. 
4-9.  Escrow  accounts 
Military  intelligence  units  engaged  in  operations 
requiring  the  use  of  escrow  accounts  will  re- 
quest approval  to  establish  such  accounts  from 
the  ACSI,  HQDA.  Requests  will  be  submined 
through  intelligence  channels  to  HQDA 
(DAMI-PBM)  for  review  and  forwarding  to  the 
SA  for  approval.  Requests  for  approval  of 
escrow  accounts  must  be  based  on  an  ap- 
proved operations  plan.  The  plan  must  prescribe 
procedures  for  maintaining  any  escrow  account. 
Amounts  obligated  must  be  within  fiscal  year 
limitations. 
Chapter  5  (U) 
Civilian  Clothing  Allowances  (U) 
5-1.  (U)  General 
a.  (U)  Eligibility  for  allowances.  Those 
enlisted  personnel  who  are  required  to  wear 
civilian  clothing  to  perform  official  duties  will 
be  paid  a  civilian  clothing  allowance.  Officers, 
warrant  officers,  and  civilian  personnel  are  not 
entitled  to  civilian  clothing  allowances. 
b.  (U)  Procedures.  Intelligence  unit  com- 
manders will  ensure  that— 
(1)  (U)  The  type,  cost,  quality,  and  quantity 
of  civilian  clothing  purchased  by  persons  with 
authorized  allowances  are  consistent  with  opera- 
tional requirements  and  propriety. 
(2)  (U)  Only  those  enlisted  personnel  who 
require  civilian  attire  to  accomplish  assigned 
duties  are  paid  civilian  clothing  allowances.  Ad- 
ministrative personnel  will  not  be  authorized  a 
civilian  clothing  allowance  unless  it  is  opera- 
tionally necessary  to  provide  civilian  cover  for 
the  unit  or  any  portion  thereof. 
(3)  (U)  Enlisted  personnel  who  are  not 
authorized  to  receive  civilian  clothing 
allowances  are  not  required  to  wear  civilian 
attire. 
(4)  (U)  Intelligence  operational  and  support 
enlisted  personnel  will  be  paid  civilian  clothing 
allowances  from  the  Military  Personnel  Army 
(MPA)  appropriation.  Such  personnel  will 
receive  authorized  civilian  clothing  payments 
through  the  JUMPS.  Requests  for  Military 
Intelligence  (MI)  operational  and  support 
personnel  are  forwarded  to  Commander, 
MILPERCEN,  ATTN:  (MI  enlisted  branch), 
Alexandria,  VA  22331-0400  for  verification. 
Requests  are  then  sent  to  TAG  for  final 
approval  5  USC  552  90 11). 
5-3.  (U)  Type  of  funds  to  use 
(U)  The  payment  of  civilian  clothing  allowances 
from  MPA  precludes  the  use  of  ICF. 
5-4.  (U)  Property  accountability 
(U)  Property  accountability  is  not  required  for 
articles  of  civilian  clothing  purchased  with 
authorized  civilian  clothing  allowances.  Special 
operational  clothing  will  be  accounted  for  ac- 
cording to  instructions  contained  in  AR 
381-143. 
28  MARCH  1986  UPDATE  •  AR  381-141 
Chapter  6  (U) 
Audits  and  Inspection  of  ICF 
Accounts  (U) 
Section  I 
General  Procedures  (U) 
6-1.  (U)  Audits 
a.  (U)  Definition  and  purpose.  Audits  are 
detailed  examinations  of  an  account  or  program 
to  evaluate  any  or  all  of  the  following: 
(1)  (U)  Financial  propriety  and  statutory/ 
regulatory  compliance. 
(2)  (U)  Economy  and  efficiency  of  the 
management  and  use  of  resources. 
(3)  (U)  Desirability,  benefits  and  achieve- 
ment of  operational  program  results. 
b.  (U)  Categories  of  audits.  The  two  basic 
categories  of  audits  are  as  follows: 
(1)  (U)  Internal  audits.  Internal  audits  are 
those  conducted  by  an  element  of  the  organiza- 
tion under  examination.  As  to  the  audit  of  an 
ICF  account,  the  "organization"  is  the  Depart- 
ment of  the  Army  (DA).  The  only  agencies 
within  DA  authorized  to  conduct  internal  audits 
of  ICF  accounts  are  the  USAAA,  an  agency 
assigned  to  The  Auditor  General,  and  OACSI. 
(2)  (U)  External  audits.  External  audits  are 
those  conducted  by  agencies  outside  DA.  The 
General  Accounting  Office  (GAO)  and  the 
Assistant  Inspector  General  for  Auditing,  Of- 
fice of  The  Inspector  General,  Department  of 
Defense  (DODAIG-AUD)  conduct  external 
audits  of  ICF  accounts. 
6-2.  (U)  inspections 
(U)  Inspections  are  not  only  thorough  examina- 
tions of  fiscal  records  and  accounts,  but  also 
reviews  of  necessary  operational  data  to 
evaluate  mission  accomplishment  vis-a-vis  cost 
effectiveness.  Inspections  of  ICF  accounts  will 
be  conducted  under  the  procedures  prescribed 
in  section  III. 
6-3.  (U)  Certificates  of  inspection 
(U)  Any  person  or  agency  conducting  an  inspec- 
tion of  an  ICF  account  will  place  a  certificate 
on  the  Cash  Blotter  (DA  Form  703)  pertaining 
to  the  final  month  of  the  inspection  period.  The 
certificate  will  include— 
a.  (U)  Date. 
b.  (U)  Period  covered  by  the  inspection. 
c.  (U)  Scope  of  the  inspection. 
d.  (U)  Deficiencies  uncovered,  if  any  (if 
negative,  so  state). 
e.  (U)  Signature  and  title  of  the  chief  of  the 
inspection  team.  Figure  D-3  contains  an  exam- 
ple of  the  type  of  certificate  required. 
Section  II 
Audits  (U) 
6-4.  (U)  Internal  audits  by  U.S.  Army 
Audit  Agency  (USAAA) 
a.  (U)  Conduct  of  audits.  The  USAAA  will 
conduct  internal  audits  of  ICF  accounts.  (See 
para  6-12  for  responsibilities  of  commanders.)
b.  (U)  Frequency  of  audits.  The  US  AAA  will 
determine  the  frequency  of  audits  under  AR 
36-5. 
c.  (U)  Required  security  clearances. 
Auditors  must  possess  the  necessary  security 
clearances  before  they  may  be  granted  access 
to  any  ICF  account.  The  audit  of  certain 
accounts  may  require  special  access  authoriza- 
tions in  addition  to  valid  security  clearances. 
Before  the  conduct  of  these  audits,  arrange- 
ments will  be  made  with  OACSI  to  grant  such 
authorizations. 
d.  (U)  Restrictions  on  number  of  auditors. 
Information  obtained  from  the  examination  of 
ICF  accounts  may  be  sensitive;  therefore,  the 
number  of  people  involved  in  such  audits  will 
be  kept  to  the  absolute  minimum  necessary  to 
accomplish  the  required  tasks. 
e.  (U)  Prior  notification.  The  USAAA  will 
notify  the  OACSI  before  conducting  an  audit 
of  any  ICF  account.  The  notice  will  include  the 
identification  of  the  account  to  be  audited,  and 
the  names  and  security  clearances  of  the  audi- 
tors. The  ACSI  will  then  notify  the  commander 
of  the  agent  or  custodian  whose  account  is  to 
be  audited.  The  ACSI  will  also  forward  evi- 
dence of  required  security  clearances  end  access 
authorizations  for  the  members  of  the  audit 
team. 
/  (U)  Scope  of  audits.  The  scope  of  a 
USAAA  audit  of  an  ICF  account  will  be  deter- 
mined by  USAAA  according  to  AR  36-5. 
(!)  (U)  The  purpose  of  such  an  audit  is  to 
ascertain  that  ICF  have  been  spent  only  for 
legitimate  purposes  and  that  any  funds  expended 
were  accounted  for  properly;  therefore,  the 
audit  may  require  an  examination  of  any  or  all 
of  the  following  records  and  supporting 
documents: 
(a)  (U)  DA  Forms  703  (Cash  Blotters). 
(b)  (U)  DD  Forms  1081  (Statements  of 
Agent  Officer's  Account). 
(c)  (U)  DD  Forms  281  (Vouchers  for 
Emergency  or  Extraordinary  Expense 
Expenditures). 
(d)  (U)  DD  Forms  1131  (Cash  Collection 
Vouchers)  or  any  other  documents  evidencing 
gains  or  iosses  of  ICF  for  any  reason  (available 
at  the  class  B  agent  level  only). 
(e)  (U)  DA  Forms  3697-R  (Subvouchers  for 
Disbursements  from  Confidential  Funds)  in- 
cluding all  receipts  and  other  attachments. 
(f)  (U)  Access  to  cash  (or  checking  account 
records)  to  verify  the  amount  of  cash  on  hand 
(or  in  banks). 
<g)  <U)  DA  Forms  2362-R  (Subsidiary  Cur- 
rency Ledgers)  including  required  certificates 
of  exchange. 
'In  if)  Appointing  documents  for  ICF 
..Scmv  custody,  approving  officers,  and  cer- 
tit>  ins  and  approving  otficcrs. 
'•i  Ui  Required  r'ceulauons  and  other  in- 
structions on  ihe  control  of  ICF. 
"<  ili  IVrs  „„,N  amlii  or  inspection  rcpons. 
«*l  'I  l  l!itol!iL'ciii.c  property  accounts. 
o*n>»  .-mhiiiis.  witnhoMiinr  .u  counts,  records 
of  cover  businesses,  source  files,  and  intelli- 
gence operational  plans  and  reports  (e.g.  spot- 
ting reports,  contact  reports,  etc.)  will  not  nor- 
mally be  subject  to  audit  by  USAAA. 
til)  (V)  Distribution  of  reports  of  findings. 
USAAA  will  make  the  necessary  limited  inter- 
nal distribution  of  their  audit  reports.  No  other 
distribution  is  authorized  without  the  prior  con- 
sent of  the  ACSI.  USAAA  audit  reports  may 
not  be  used  by  agents  or  custodians  as  author- 
ity for  the  destruction  of  ICF  records.  (For  in- 
structions on  destruction  authority  see  para 
7-2.) 
6-5.  (U)  Internal  audits  by  Office  of  the 
Assistant  Chief  of  Staff  for  Intelligence 
(OACSI) 
a.  (U)  Purpose.  OACSI  audits  will,  of 
necessity,  include  an  examination  of  the  various 
ICF  accounting  records.  The  examination  will 
not  be  solely  for  determining  the  accuracy  of 
account  balances.  The  main  purpose  will  be  to 
evaluate  the  amount  and  propriety  of  all  ICF 
expenditures  in  view  of  the  unit's  mission. 
When  possible,  recommendations  will  be  made 
for  more  efficient  use  of  resources. 
b.  (V)  Frequency.  OACSI  will  normally 
audit  every  class  B  agent  account  yearly.  In 
audits  of  class  B  agent  accounts,  selected  class 
A  agent,  class  A  custodian,  and  special  custo- 
dian accounts  will  also  be  examined.  Depend- 
ing on  the  circumstances,  OACSI  may  audit 
certain  accounts  more  often  than  yearly. 
c.  (U)  Scope.  OACSI  audits  will  include  a 
review  of  accounting  records  and  supporting 
documents  listed  in  paragraph  6-4/11)  plus  the 
following:  «^, 
(1)  (U)  Withholding  accounts        •* 
(2)  (U)  Escrow  accounts. 
o: 
(4)  (U)  Intelligence  property 
(5)  (U)  Any  operational  plans 
reports  necessary  to  accomplish  the  purpose  of 
the  audit. 
d.  (U)  Intelligence  property.  Coordination 
will  be  maintained  with  the  Intelligence  Materiel 
Activity  of  the  AMC  for  its  property  inspec- 
tions under  AR  381-143  to  minimize  the  im- 
pact of  audits  and  inspections  on  individual 
activities. 
6-6.  (U)  External  audits 
(U)  The  only  agencies  outside  DA  authorized 
to  audit  any  contingency  fund,  including  ICF, 
are  the  GAO  and  the  DODAIG-AUD.  GAO  has 
continuing  authority  under  Public  Law  96-226 
to  conduct  audits  of  contingency  funds  only  to 
verify  that  an  expenditure  was  made  as  author- 
ized by  law.  GAO  is  not  expected  to  audit  ICF 
accounts  according  to  a  regular  schedule.  Any 
intent  on  the  part  of  GAO  to  conduct  an  audit 
would  first  be  made  known  to  HQDA.  The  AC- 
SI, HQDA,  would  then  notify  the  appropriate 
command  or  agency.  No  ICF  account  may  be 
audited  by  GAO,  DODAIG-AUD,  or  USAAA 
unless  the  unit  has  received  prior  notice  from 
the  ACSI.  4 
Section  III  (U) 
Inspections  and  Internal  Reviews  (U) 
6-7.  (U)  General 
(U)  The  ACSI,  as  the  service  senior  intelligence 
officer,  together  with  the  Army  General 
Counsel  and  The  Inspector  General,  is  respon- 
sible for  intelligence  oversight  for  the  U.S. 
Army  (see  AR  381-10).  Continual  monhorship, 
periodic  audits,  inspections,  and  responsibility 
for  the  administration,  supervision,  and  control 
of  all  ICF  expenditures  are  integral  to  the 
ACSI's  oversight  function.  Intelligence  over- 
sight and  audit  are  conducted  by  ACSI,  The 
Auditor  General,  and  The  Inspector  General. 
Other  limited  inspections  will  be  accomplished 
as  described  in  paragraphs  6-8  through  6-13. 
6-8.  (U)  Command  inspections  of  class 
B  agent  accounts 
a.  (U)  Frequency.  Commanders  of 
MACOMs,  major  subordinate  commands,  or 
other  agencies  who  have  ICF  class  B  agent  ac- 
counts will  cause  an  inspection  to  be  made  of 
the  class  B  agent's  account  at  least  yearly, 
approximately  6  months  from  the  date  of  the 
last  audit  by  OACSI  and  upon  change  of  class 
B  agents. 
b.  (U)  Qualifications  required  of  inspectors. 
Such  inspections  will  be  conducted  by  a  I 
disinterested  officer  possessing  an  intelligence 
MOS  or  by  a  similarly  qualified  warrant  officer 
or  civilian  employee.  As  used  in  this  regula- 
tion, the  term  "disinterested  person"  means 
anyone  who  is  not  in  the  chain  of  fiscal  respon- 
sibility or  anyone  whose  duties  are  not  directly 
supervised  by  the  agent  to  be  inspected.  No  per- 
fo  son  will  be  considered  disinterested  who  is 
files,  or  J  either  currendy  filling  one  of  the  positions  listed 
below  or  who  has  formerly  filled  one  during 
the  tenure  of  the  agent  officer  being  inspected: 
(1)  (U)  The  FAO  (or  any  member  of  his  or 
her  staff)  to  whom  the  class  B  and  A  agents  are 
appointed  (except  as  authorized  in  para  6-1 1). 
(2)  (U)  The  primary  and  alternate  C&AO. 
(3)  (U)  Approving  officer  (for  DA  Forms 
3697-R). 
(4)  (U)  Agents,  custodians,  or  approving  of- 
ficers or  subordinate  ICF  accounts. 
(5)  (U)  Any  military  or  civilian  employee 
whose  efficiency  report  is  prepared  or  indorsed 
by  the  person  being  inspected. 
(6)  (U)  The  incoming  agent  officer  (upon 
change  of  agents). 
(7)  (U)  Any  other  person  whom  the  com- 
mander does  not  consider  disinterested  because 
of  various  associations  with  the  agent  officer; 
e.g.,  close  personal  friendship,  etc. 
c.  (U)  Appointment  of  inspectors.  Persons 
who  are  directed  to  conduct  inspections  of  ICF 
class  B  agent  accounts  will  be  designated  as 
such,  in  writing,  by  the  commander  ordering 
% 
28  MARCH.  1986  UPDATE  •  AR  381-141
the  inspection.  (See  app  F  for  procedures  to  be 
followed  when  making  appointments.) 
d.  (U)  Scope.  The  commander  ordering  the 
inspection  will  determine  the  scope  of  any  in- 
spection of  a  class  B  agent  account.  However, 
as  a  minimum,  such  inspections  should  include 
verification  of  total  accountability,  and  an 
assessment  of  validity  and  propriety  of 
expenditures. 
e.  (U)  Reports.  Copies  of  inspection  reports 
will  be  given  to  the  commander  who  ordered 
the  inspection  and  to  the  class  B  agent.  The 
reports  will  be  retained  for  review  by  USAAA 
and  OACSI  during  their  respective  audits  and 
inspections. 
6-9.  (U)  Command  inspections  of  class 
A  agent  and  custodian  accounts. 
a.  (U)  Frequency.  Commanders  will  ensure 
that  class  B  agents  examine  the  accounts  of  their 
subordinate  class  A  agents  at  least  yearly,  and 
upon  change  of  class  A  agents.  Class  B  agents 
may  also  inspect  Class  A  custodian  accounts. 
However,  there  is  no  requirement  for  the  class 
B  agent  to  do  so  unless  the  custodians  are  ap- 
pointed directly  to  the  class  B  agent.  In  those 
cases,  custodian  accounts  must  be  inspected  as 
if  they  were  class  A  agent  accounts;  i.e.,  an- 
nually, and  upon  change  of  custodians. 
b.  (V)  Scope.  The  inspecting  officer  will 
determine  the  scope  of  any  inspection  of  a  class 
A  agent  or  custodian  account.  However,  mini- 
mum requirements  are  the  same  as  those 
prescribed  in  paragraph  6-8a. 
c.  (U)  Conduct  of  inspections.  When  possi- 
ble, the  class  B  agent  should  conduct  inspec- 
tions in  the  presence  of  class  A  agents  (or  custo- 
dians). However,  if  travel  is  required,  and  cir- 
cumstances preclude  presence  of  class  A  agents 
(or  custodians),  pertinent  records  may  be  mailed 
to  the  class  B  agent;  or  inspections  may  be  con- 
ducted by  a  disinterested  person.  If  a  disinter- 
ested person  is  to  perform  the  inspection,  the 
instructions  contained  in  paragraphs  6-8fc  and 
c  will  be  followed.  If  records  are  mailed  to  the 
class  B  agent,  temporary  accounts  will  be  main- 
tained until  the  official  records  are  returned. 
d.  (U)  Reports.  Copies  of  inspection  reports 
will  be  forwarded  to  the  class  A  agent's  (or  cus- 
todian's) commander.  Reports  will  be  retained 
for  review  by  the  USAAA  and  the  ASCI  dur- 
ing their  respective  audits. 
6-10.  (U)  Class  A  agent  inspections  of 
custodian  accounts 
(U)  Class  A  agents  will  examine  the  accounts 
of  all  subordinate  ICF  class  A  custodians  at  least 
yearly.  This  requirement  may  be  waived  if  the 
custodian's  account  has  been  inspected  by  the 
class  B  agent  during  the  previous  12  months. 
However,  the  class  A  agent  (or  a  disinterested 
person)  will  examine  the  accounts  upon  change 
of  custodians  in  spite  of  the  date  of  the  last  in- 
spection. (See  paras  6-9*.  c,  and  d,  and  para 
6-8c,  d,  and  e  for  scope,  conduct  of  inspec- 
tions, and  reports.) 
6-11.  (U)  Inspections  of  class  B  agent 
accounts  by  finance  and  accounting  of- 
ficers (FAOs) 
a.  (U)  FAOs  may  inspect  ICF  class  B  agent 
accounts  at  any  time  to  ensure  compliance  with 
specific  instructions  they  have  issued  on  the 
safeguarding  and  handling  of  funds,  and  to 
verify  total  accountability.  No  other  audits  of 
ICF  accounts  by  the  FAO  are  authorized. 
b.  FAOs  may  be  granted  access  only  to  cash 
on  hand  (or  checking  account  records),  DA 
Forms  703  and  DA  Forms  2362-R,  and  DD 
Forms  281,  DD  Forms  1081,  and  DD  Forms 
1131.  However,  the  ACSI  may  modify  these 
procedures  to  protect  the  security  of  certain  sen- 
sitive operations. 
c.  (U)  All  DD  Forms  28 1  may  have  not  been 
processed  at  the  time  of  an  inspection  by  the 
FAO;  i.e.,  when  subvouchers  (DA  Forms 
3697-R)  are  still  on  hand.  If  so,  the  FAOs  will 
not  be  able  to  verify  total  accountability  in  the 
normal  manner  since  they  are  not  authorized 
access  to  DA  Forms  3697-R.  When  such  is  the 
case,  the  following  certificate,  representing  the 
total  amount  of  .subvouchers  on  hand,  will  be 
prepared  and  given  to  the  FAO: 
I,  (grade  and  name),  ICF  class  B  agent,  certify 
that  I  have  on  hand  confidential  subvouchers 
and  receipts  totaling  $   This 
amount  represents  valid  expenditures  of  funds 
under  the  provisions  of  AR  381-141 ,  and  will 
be  included  with  the  next  voucher  submission. 
(signature;  class  B  agent) 
(signature;  witness) 
This  certificate,  when  signed  by  the  class  B 
agent  and  a  witness  (a  commissioned  officer, 
warrant  officer,  or  civilian  employee  belong- 
ing to  the  same  unit  or  agency  as  the  class  B 
agent),  will  be  used  by  the  FAO  instead  of  the 
subvouchers  to  verify  total  accountability. 
6-12.  (U)  Responsibilities  of  com- 
manders 
a.  (U)  Inspections  and  Internal  Reviews. 
Commanders  or  agency  chiefs  who  use  ICF 
will- 
(1)  (U)  Ensure  that  funds  are  expended  and 
accounted  for  according  to  the  instructions  con- 
tained in  this  and  other  applicable  regulations 
and  directives. 
(2)  (U)  Conduct  whatever  other  internal 
reviews,  besides  required  inspections,  they 
deem  necessary  to  fulfill  their  responsibilities. 
b.  (U)  Notice  of  change  of  agents  or  custo- 
dians. The  commander  will  ensure  that  the  ICF 
class  B  agent  is  informed  of  any  projected 
change  in  class  A  agents  or  custodians  so  that 
required  transfer  inspections  can  be  made. 
6-13.  (U)  Unannounced  cash  counts 
(See  AR  37-103,  para  3-58b.) 
a.  (U)  Commanders  will  ensure  that  the  ac- 
counts of  all  ICF  agents  and  custodians  that  han- 
dle actual  cash  are  subjected  to  unannounced 
cash  counts  at  least  once  every  3  months.  Veri- 
fication of  total  accountability  is  required  in 
conjunction  with  unannounced  cash  counts. 
Cash  counts  will  be  conducted  by  two  disinter- 
ested personnel  (officers,  warrant  officers, 
civilian  employees,  or  senior  noncommissioned 
officers). 
b.  (U)  To  verify  total  accountability  (i.e.,  all 
Cash  Blotter  account  balances),  the  verifying 
persons  must  have  access  to  checking  account 
records  and  bank  statements  (if  any),  actual 
cash,  Subsidiary  Currency  Ledgers,  paid  sub- 
vouchers  (DA  Forms  3697-R)  on  hand,  and 
DD  Forms  1081  evidencing  cash  advances  and 
paid  subvouchers  in  transit. 
c.  (U)  The  verifying  persons  will  make  an 
entry  on  the  next  line  of  the  Cash  Blotter  set- 
ting forth  the  result  of  their  count  in  substance 
as  follows  (See  figs  D-l  and  D-2): 
On  (date)  at  (time)  the  undersigned 
verified,  by  actual  count,  cash  held 
at  personal  risk  in  the  amount  of 
S  ,  bank  statements  represent- 
ing cash  deposits  in  the  amount  of 
$  ,  subvouchers  held  as  cash 
in  the  amount  of  $  ,,  evidence 
of  proper  advances  of  cash  in  the 
amount  of  $  ,  and  evidence  of 
subvouchers  in  transit  in  the  amount 
of  $  ,  the  total  $  which 
is  (or  is  not)  in  agreement  with  the 
balances  shown  above. 
The  signature  and  grade  or  title  of  each  verify- 
ing officer  will  follow  the  above  entry.  The 
verifying  persons  will  advise  the  commander 
who  ordered  the  cash  count  of  their  findings. 
d.  (U)  When  verification  of  cash  and  total 
accountability  pertains  to  an  ICF  class  B  agent, 
the  proper  FAO  will  be  notified  of  the  result 
in  the  way  prescribed  in  AR  37-103,  paragraph 
15-37.  FAOs  need  not  be  notified  of  the  results 
of  verification  of  ICF  class  A  agent  and  custo- 
dian accounts. 
e.  (U)  The  commander  will  also  direct  unan- 
nounced cash  counts  of  claimants  who  are 
holding  an  ICF  advance.  The  cash  counts  will 
be  conducted  at  the  discretion  of  the  commander 
at  least  semiannually  (one  of  which  must  take 
place  during  the  last  month  of  the  fiscal  year). 
6-14.  (U)  Audit  or  inspection  of  Special 
Finance  and  Accounting  Officer  (SFAO) 
accounts 
(U)  Nothing  in  this  regulation  will  be  construed 
to  preclude  otherwise  authorized  audits  or 
inspections  of  the  activities  of  the  SFAO, 
INSCOM  that  do  not  involve  OMA  funds  under 
Limitation  .017. 
28  MARCH  1986  UPDATE  •  AR  381-141
6-15.  (U)  U.S.  Army  Finance  and  Ac- 
counting Center  (USAFAC)  Network 
Quality  Teams  (NQTs) 
(U)  NQTs  may  be  requested  by  the  ACS!  to 
review  certain  ICF  accounts  if  the  results  of 
audit  findings  by  agencies  authorized  to  audit 
ICF  indicate  problem  areas  where  NQT  review 
might  be  beneficial. 
(U)  Chapter  7 
(U)  Accounting  Procedures  and 
Required  Forms 
7-1 .  (U)  General  instructions 
a.  (U)  Applicability.  Instructions  for  the  use 
of  the  forms  depicted  in  this  chapter  apply  to 
all  personnel  for  accounting  for  expenditures 
of  ICF.  Special  custodians  who  are  appointed 
as  such  directly  to  FAOs  will  follow  the  general 
instructions  for  class  B  agents  and  any  special 
instructions  received  at  the  time  of  their 
appointments. 
b.  (U)  Conflicting  instructions.  This  regula- 
tion prescribes  the  use  of  DA  Forms  703,  DA 
Forms  3697-R,  and  DA  Forms  2362-R  since 
these  forms  are  used  only  to  account  for  con- 
tingency funds.  The  other  accounting  forms 
depicted  in  subsequent  paragraphs  are  used  by 
several  activities  throughout  DOD  for  many  dif- 
ferent purposes.  Instructions  for  their  use  in 
accounting  for  ICF  have  been  modified  and, 
unless  otherwise  stated,  these  instructions  will 
be  followed  instead  of  those  contained  in  the 
respective  regulations. 
c.  (U)  Acquisition  of  forms.  With  the  excep- 
tion of  DA  Form  2362-R  and  DA  Form 
3697-R,  forms  will  be  requisitioned  through 
normal  publications  supply  channels.  DA  Form 
2362-R  and  DA  Form  3697-R  will  be  re- 
produced locally  on  8!£-by  11 -inch  paper. 
Copies  for  reproduction  purposes  are  located 
at  the  end  of  this  regulation. 
7-2.  (U)  Disposition  of  records 
(U)  ICF  records  and  accounts  will  be  main- 
tained according  to  AR  340-18,  Category  File 
302.  When  there  is  imminent  danger  of  a  secur- 
ity compromise,  commanders  may  authorize 
emergency  destruction.  If  possible,  such 
destruction  should  be  witnessed  by  a 
disinterested  person  who  will  certify  that  the 
emergency  destruction  was  accomplished.  As 
soon  as  possible,  a  complete  report  on  the 
destruction  will  be  forwarded  to  HQDA 
(DAMI-PBM),  WASH  DC  20310-1030. 
7-3  (U)  DA  Form  703  (Intelligence 
Contingency  Fund  Cash  Blotter) 
a.   (U)  Purpose  and  use. 
(1)  (U)  The  Cash  Blotter  (fig  7-1)  is  the  basic 
accounting  document  that  will  be  used  to  record 
all  receipts  and  disbursements  of  ICF.  A  Cash 
Blotter  will  be  maintained  in  ink  by  every  ICF 
class  B  and  A  agent,  class  A  custodian,  and 
special  custodian.  The  Cash  Blotter  will  be 
balanced  and  closed  at  the  end  of  every  account- 
ing period  (usually  1  month).  A  new  DA  Form 
703  (or  the  reverse  side)  will  be  used  for  each 
accounting  period.  Balances  will  be  carried  for- 
ward from  the  previous  period.  A  new  Cash 
Blotter  may  be  opened  quarterly,  instead  of 
monthly,  for  any  account  that  averages  less  than 
10  transactions  per  month.  In  this  case,  the  ac- 
counting period  will  be  one  fiscal  quarter  (e.g. , 
Oct-Nov-Dec)  instead  of  1  month. 
(2)  (U)  Except  in  rare  circumstances,  every 
line  entry  on  the  Cash  Blotter  will  be  supported 
by  one  or  more  of  the  various  accounting  forms 
described  in  subsequent  paragraphs.  Con- 
versely, each  time  one  of  these  forms  is 
prepared,  an  entry  will  be  recorded  on  the  Cash 
Blotter.  Line  entry  errors  will  be  corrected  by 
drawing  a  line  through  the  incorrect  figure,  in- 
itialing the  error,  and  then  entering  the  correct 
figure  in  ink.  The  use  of  opaque  fluid,  correc- 
tion tape,  and  similar  items  is  not  authorized. 
Illustrative  entries  are  depicted  on  the  sample 
Cash  Blotters  in  appendix  D. 
b.  (U)  Identifying  data.  In  addition  to  the 
proper  identifying  data  (fig  7-1,  items  1  through 
9),  each  Cash  Blotter  is  composed  of  one  con- 
trol account  entitled  "Total  Accountability" 
(TA),  and  four  subsidiary  accounts,  namely: 
"Cash  on  Hand  and  in  Bank"  (COH);  "Cash 
Advances"  (CA);  "Paid  Vouchers  on  Hand" 
(PVOH);  and  "Paid  Vouchers  in  Transit  to  Ap- 
proving Authority"  (PVIT).  An  explanation  of 
the  function  of  each  account  is  as  follows: 
(1)  (U)  Total  Accountability  (item  10).  This 
is  the  control  account;  its  components  are  the 
four  subsidiary  accounts.  The  balance  in  the  TA 
account  represents  the  total  amount  of  funds  for 
which  an  ICF  agent  officer  or  custodian  is  ac- 
countable. When  added  together,  the  balances 
in  the  subsidiary  accounts  must  always  equal 
the  balance  in  the  control  account.  This  means 
that  when  an  increase  is  made  in  a  subsidiary 
account,  a  corresponding  decrease  must  be 
made  in  one  or  more  of  the  other  subsidiary  ac- 
count. There  are  rare  occasions  when  the  cor- 
responding entry  would  be  delayed  and  the  ac- 
counts would  be  temporarily  out  of  balance  (see 
para  7-9).  Increases  and  decreases  are  recorded 
in  the  TA  account  only  to  reflect  those  trans- 
actions occurring  between  an  ICF  agent  or 
custodian  and  the  person  to  whom  he  or  she  is 
accountable.  These  increases  and  decreases  are 
posted  only  after  the  transaction  has  been  ap- 
proved and  recorded  at  the  higher  level  of  ac- 
countability (e.g.,  a  class  A  agent  would  post 
a  change  to  his  TA  account  only  after  having 
received  a  signed  DD  Form  1081  from  his  or 
her  class  B  agent).  (See  para  7-4.; 
(2)  (U)  Cash  on  Hand  and  in  Bank  (item  li  I. 
This  account  reflects  the  balance  of  currency, 
U.S.  and  foreign,  either  in  the  actual  posses- 
sion of  the  ICF  agent  or  custodian,  or  in 
authorized  checking  accounts.  If  Subsidiary 
Currency  Ledgers  are  maintained  (para  7-8), 
28  MARCH  1986  UPDATE  •  AR  381-141 
the  sum  of  the  balances  on  these  ledgers  must 
always  equal  the  balance  in  the  COH  account. 
(3)  (U)  Cash  Advances  (item  12).  Entries  are 
recorded  in  this  account  to  show  increases  or 
decreases  of  cash  made  by  the  ICF  agent  or 
custodian  maintaining  the  account.  Cash  ad- 
vances made  to  the  ICF  agent  or  custodian  are 
recorded  elsewhere. 
(4)  (U)  Paid  Vouchers  on  Hand  (item  13). 
The  balance  in  this  account  represents  the  total 
amount  of  subvouchers  (DA  Forms  3697-R)  in 
the  possession  of  the  ICF  agent  or  custodian  for 
which  funds  have  already  been  disbursed. 
(5)  (U)  Paid  Vouchers  in  Transit  to  Approv- 
ing Authority  (item  14).  This  account  is  nor- 
mally used  only  by  class  A  agents  and  custo- 
dians who  must  mail  their  subvouchers  to  the 
person  to  whom  they  are  accountable.  Class  B 
agents  will  use  this  account  only  when  they  must 
use  the  mail  to  forward  DD  Forms  281  to  the 
FAO. 
c.  (U)  Instructions  for  maintaining  a  Cash 
Blotter.  The  basic  instructions  apply  equally  to 
all  ICF  agents  and  custodians.  A  few  slightly 
different  procedures  at  the  various  levels  of  ac- 
countability are  illustrated  in  appendix  D. 
(1)  (U)  Item  1.  This  block  is  used  for  the 
name  of  the  class  A  agent  or  custodian  respon- 
sible for  maintaining  the  account.  Cross  out  the 
inapplicable  word.  Class  B  agents  and  special 
custodians  do  not  use. 
(2)  (U)  Item  2.  This  block  will  be  completed 
as  follows: 
Individual  responsible  for 
account:  Class  A  custodian 
Enter:  Designation  (A  or  B)  and  name,  etc.,  of  the 
ICF  agent  to  whom  appointed.  (See  fig  D-l.) 
Individual  responsible  for 
account:  Class  A  agent 
Enter:  Designation  (B)  and  name,  etc..  of  class  B 
agent  to  whom  appointed.  (See  fig  D-2.) 
Individual  responsible  for 
account:  Class  B  agent 
Enter:  Designation  (b)  and  own  name,  etc.  (See  fig 
D-3.) 
Individual  responsible  for 
account:  Special  cuiiodian 
Enter:  Enter  own  name, 
"Special." 
etc.,   and   the   word 
(3)  (U)  Item  3.  Self-explanatory.  Class  A 
custodians  do  not  use. 
(4)  (U)  Item  4.  Self-explanatory. 
(5)  (U)  Item  5.  A  posting  reference  (PR) 
number,  beginning  with  number  one  each  fiscal 
year,  will  be  assigned  to  each  separate  line  entry 
on  the  Cash  Blotter.  This  number  identifies  a 
particular  entry.  It  will  also  be  placed  on  every 
document  or  form  that  supports  or  explains  that 
entry. 
(6)  (U)  hem  6.  For  payment  of  subvouchers, 
enter  the  control  number  (if  a  class  A  custo- 
dian), the  register  number  (if  a  class  A  agent), 
or  the  subvoucher  number  (if  a  class  B  agent),  i
(See  paras  7-5c  (3),  (4),  and  (5).  For  submis-  ±
sion  of  vouchers  (e.g.,  DD  Form  281  or  DD  <
Form  1 131),  enter  the  class  B  agent's  voucher 
^_      number.) 
B       (7)  (U)  Item  7.  Enter  the  date  that  the  trans- 
it   action  is  posted  to  the  Cash  Blotter.  Entries 
should  be  posted  to  the  Cash  Blotter  on  the  date 
that  a  change  occurs  in  a  particular  account. 
(8)  (U)  Item  8.  Enter  the  name  of  the  payee 
(claimant)  on  DA  Form  3697-R;  the  name  of 
the  person  on  DD  Form  1081  receiving  or 
returning  a  cash  advance;  or  the  name  of  the 
class  B  agent  when  submitting  DD  Forms  281 
or  DD  Forms  1131. 
(9)  (U)  Item  9.  Briefly  explain  the  type  of 
transaction.  Note  that  the  first  item  in  this  col- 
umn is  the  "Balance  Brought  Forward"  in  each 
account;  enter  the  balance  from  the  Cash  Blot- 
ter on  the  previous  accounting  period. 
(10)  (U)  Item  10.  Total  Accountability.  In- 
creases or  decreases  to  the  TA  account  can  only 
occur  as  a  result  of  transaction  between  the 
agent  or  custodian  maintaining  the  Cash  Blot- 
ter and  the  person  to  whom  he  or  she  is  account- 
able. Actual  postings  to  the  TA  account  will  be 
made  only  after  the  transaction  has  been  ap- 
proved and  recorded  at  the  higher  level  of  ac- 
countability. (See  b(\)  above.) 
(a)  (U)  Increases  (item  10A).  Enter  the 
amount  of  funds  received  as  a  cash  advance  (or 
incorrect  subvouchers  returned)  from  the  per- 
son to  whom  the  agent  or  custodian  is  account- 
able. Record  the  acceptance  of  cash  collections 
and  net  gains  resulting  from  foreign  currency 
b.     conversion  transactions.  (Cash  collections  and 
B     net  gains  are  eventually  accounted  for  in  the 
same  way  as  funds  received  as  cash  advances. 
However,  postings  are  usually  delayed.  See 
para  7-9  and  app  D.) 
(b)  (U)  Decreases  (item  10B).  Record  the  ac- 
ceptance of  returns  of  funds,  subvouchers,  or 
vouchers.  Class  A  agents  and  class  A  custodians 
will  post  credits  for  currency  conversion  losses 
as  shown  on  figure  D-2  (PR  numbers  61,  62, 
and  64).  Class  B  agents  will  see  figure  D-3  (PR 
numbers  21,  23,  and  24). 
(c)  (U)  Balance  (item  IOC).  Self- 
explanatory. 
(11)  (U)  Item  1 1 ,  Cash  on  Hand  and  in  Bank. 
(a)  (U)  Increases  (item  11  A).  Post  increases 
when  funds  are  received  for  any  reason.  This 
includes  receipt  of  cash  advances  from  the  next 
higher  echelon,  the  receipt  of  cash  collections, 
and  the  return  of  cash  previously  advanced  to 
subordinate  agents  and  custodians  or  operational 
personnel. 
(b)  (Ul  Decreases  (item  UB).  Record 
disbursements  made  for  payment  of  approved 
subvouchers.  Record  advances  of  cash  made  to 
subordinate  ICF  agents  and  custodians,  or 
operational  pesonnel.  Record  actual  returns  of 
cash  (currency  or  check)  made  to  the  next 
higher  echelon. 
(c)  (U)  Balance  (item  UC).  Self- 
explanatory. 
fc  (12)  (U)  Item  12.  Cash  Advances. 
jp         (a)  (U)  Increases  (item  12A).  Post  increases 
whenever  funds  are  advanced  or  incorrect  sub- 
vouchers  are  returned  to  subordinate  ICF 
agents,  custodians,  or  operational  personnel. 
(b)  (U)  Decreases  (item  12B).  Post  decreases 
when  funds,  which  were  previously  posted  as 
increases  to  this  account,  are  returned;  or  when 
subvouchers  are  submitted  for  credit  against  ad- 
vances previously  made  from  this  account. 
(c)  (U)  Balance  (item  12C).  Self- 
explanatory. 
(13)  (U)  Item  13.  Paid  Vouchers  on  Hand. 
(a)  (U)  Increases  (item  13A).  Post  increases 
when  claimants  submit  approved  subvouchers 
that  are  paid  from  cash  on  hand  or  applied  for 
credit  against  a  previous  cash  advance;  or  when 
a  subvoucher  has  been  returned  by  the  next 
higher  echelon  because  of  an  error  in  prepara- 
tion or  an  improper  payment.  Also,  record  the 
receipt  of  subvouchers  returned  for  credit  by 
subordinate  ICF  agents  and  custodians. 
(b)  (U)  Decreases  (item  13B).  Class  A  agents 
and  custodians  will  record  decreases  when  sub- 
vouchers  (DA  Forms  3697-R)  are  submitted  to 
the  next  higher  echelon  for  credit.  Class  B 
agents  will  post  decreases  when  vouchers  (DD 
Forms  281)  are  submitted  to  the  FAO.  Also, 
they  will  post  decreases  when  subvouchers  that 
had  previously  been  recorded  as  increases  to 
PVOH  are  returned  to  subordinate  agents, 
custodians,  or  claimants  for  any  reason  (error, 
improper  claim,  etc.). 
(c)  (V)  Balance  (item  13C).  Self- 
explanatory. 
(14)  (U)  Item  14,  Paid  Vouchers  in  Transit 
to  Approving  Authority. 
(a)  (U)  Increases  (item  14A).  Class  A  agents 
and  custodians  record  increases  when  sub- 
vouchers  are  submitted  for  credit  to  the  next 
higher  echelon.  Class  B  agents  would  post  in- 
creases only  if  vouchers  (DD  Forms  281 )  must 
be  mailed  to  the  FAO  and  credit  for  the 
vouchers  is  not  received  on  the  day  of 
submission. 
(b)  (U)  Decreases  (item  14B).  Post  decreases 
when  credit  for  paid  subvouchers  (or  vouchers), 
previously  placed  in  transit,  has  been  received 
from  the  ICF  agent  (or  FAO)  to  whom  they 
were  sent. 
(c)  (U)  Balance  (item  14C).  Self- 
explanatory. 
d.  (U)  Security  classification.  DA  Forms  703 
will  be  classified  CONFIDENTIAL.  Care  will 
be  taken  to  ensure  that  information  placed  on 
the  Cash  Blotter  does  not  warrant  a  higher 
security  classification. 
e.  (U)  Downgrading  instructions.  Enter  "AR 
381-141"  in  the  "Classified  by"  space  and  also 
enter  Originating  Agency  Determination  Re- 
quired (OADR)  in  the  "declassify  on"  space. 
Refer  to  AR  380-5  for  further  guidance.  (DA 
Fonms  703  appear  at  figs  7-1,  D-l,  D-2,  and 
D-3.) 
7-4.  (U)  DD  Form  1081  (Statement  of 
Agent  Officer's  Account) 
a.  (U)  Purpose  and  use.  DD  Form  1081 
(figs  7-2  through  7-10)  contains  a  summary  of 
the  current  status  in  an  individual  account.  It 
accompanies  advances  and  returns  of  funds, 
subvouchers,  and  supporting  documents  made 
between— 
(1)  (U)  FAO;  and  class  B  or  class  A  agents, 
or  special  custodians. 
(2)  (U)  Class  B  agents;  and  class  A  agents 
(or  custodians),  or  operational  personnel. 
(3)  (U)  Class  A  agents;  and  class  A  custo- 
dians, or  operational  personnel. 
(4)  (U)  Class  A  custodians  and  operational 
personnel. 
b.  (U)  Accountability.  A  DD  Form  1081 
must  accompany  any  transaction  that  will  cause 
a  change  in  an  agent's  or  custodian's  Total  Ac- 
countability. Post  changes  to  Total  Account- 
ability according  to  the  instructions  contained 
in  paragraph  7-36(1). 
c.  (U)  Instructions  for  preparation.  The  in- 
structions contained  in  this  chapter  are  substan- 
tially the  same  as  those  contained  in  AR 
37-103.  However,  they  have  been  modified  to 
accommodate  the  unique  nature  of  the  ICF  ac- 
counting system.  The  basic  instructions  for 
completing  a  DD  Form  1081  are  the  same  in 
spite  of  whoever  initiates  the  transaction.  When 
DD  Form  1081  is  used  in  conjunction  with  an 
advance  of  funds,  the  person  making  the  ad- 
vance is  the  one  who  initiates  the  transaction. 
When  used  for  returns,  the  DD  Form  1081  is 
initiated  by  the  individual  making  the  return.) 
(1)  (U)  The  disbursing  officer's  side  of  the 
form  (left,  top,  and  bottom)  is  for  the  use  of 
the  person  who  makes  an  advance  of  funds, 
receives  returns  of  funds  or  subvouchers.  or 
returns  incorrect  subvouchers.  The  agent  of- 
ficer's side  of  the  form  (right,  top,  and  bottom) 
is  used  by  the  person  who  receives  an  advance 
of  funds,  makes  a  return  of  funds  or  sub- 
vouchers,  or  receives  incorrect  subvouchers  that 
have  been  returned. 
(2)  (U)  The  "Transactions"  section  is.  for 
the  most  part,  self-explanatory.  Columns  b  and 
c  are  used  when  making  advances.  Columns  d 
and  e  are  used  when  making  returns.  All 
amounts  will  be  expressed  in  terms  of  U.S. 
dollars.  Specific  instructions  for  certain  line  en- 
tries are  as  follows: 
(a)  (U)  Line  I.  Show  the  balance  in  the 
"Total  Accountability"  account  (ICF  agent  of- 
ficers or  custodians)  or  the  outstanding  balance 
of  cash  advances  (operational  personnel). 
(b)  (U)  Line  2.  Enter  only  currency  and  coin. 
(c)  (V)  Une  3.  Enter  the  U.S.  dollar 
equivalent  of  foreign  currency  and  coin. 
(d)  (V)  Line  4.  Self-explanatory. 
(e)  (U)  Line  5.  Enter  the  U.S.  dollar  amount 
of  any  cash  collections  made  on  either  DD  Form 
1131  or  DD  Form  634  (see  paras  7-9  and 
7-10). 
(f)  (U)  Line  6.  Do  not  use. 
28  MARCH  1986  UPDATE  •  AR  381-141
(g)  (U)  Line  7A.  Self-explanatory. 
(h)  (U)  Line  7B.  Do  not  use. 
(i)  (U)  Line  7C.  Enter  the  amount  of  non- 
17.  S.  Government  checks  (when  their  use  is 
authorized),  money  orders,  or  other  negotiable 
instruments. 
(j)  (V)  Lines  8  and  9.  Enter  the  total  amount 
of  the  attached  DA  Forms  3697-R  or  DD 
Forms  281. 
(k)  (U)  Lines  Wand  11.  These  lines  may  be 
used  to  enter  transactions  for  which  no  other 
space  has  been  provided  (e.g.,  net  gains  or 
losses  from  foreign  currency  conversion  trans- 
actions) or  to  explain  information  more  fully 
contained  on  lines  1-9,  if  required.  (See  figs 
7-8  and  7-9.) 
(I)  (U)  Line  12.  The  total  shown  here  should 
equal  the  amount  shown  on  line  1 ,  plus  amounts 
in  the  "Increase"  column  and  minus  amounts 
in  the  "Decrease"  column.  The  total  represents 
the  balance  in  the  account  after  the  advance  or 
return. 
(m)  (U)  Dates  and  signatures. 
1.  (U)  Agent  officer.  The  person  who  signs 
in  this  space  is  the  person  whose  name  appears 
in  the  upper  right-hand  corner  of  the  DD  Form 
1081 .  This  person  may  be  a  case  officer,  class 
A  custodian,  class  A  agent,  or  class  B  agent. 
He  or  she  is  the  one  who  receives  a  cash  ad- 
vance or  an  incorrect  subvoucher  that  has  been 
returned  or  submits  approved  subvouchers  (or 
returns  cash)  for  credit  against  a  previous  cash 
advance,  or  is  the  ICF  agent  or  custodian  who 
returns  paid  subvouchers  (or  vouchers)  to  the 
ICF  agent  (or  FAO)  to  whom  he  or  she  is  ac- 
countable. This  person  will  sign  and  date  the 
DD  Form  1081  on  the  date  that  he  or  she  re- 
ceived the  cash  advance,  returned  the  sub- 
vouchers,  etc. 
2.  (U)  Disbursing  officer.  The  person  who 
signs  in  this  space  is  the  person  whose  name 
appears  in  the  upper  left-hand  comer  of  the  DD 
Form  1081 .  This  person  may  be  a  class  A  custo- 
dian, class  A  agent,  class  B  agent,  or  FAO.  He 
or  she  is  the  individual  who  makes  a  cash  ad- 
vance or  returns  an  incorrect  subvoucher.  or 
receives  subvouchers  that  have  been  submitted 
by  case  officers,  subordinate  ICF  agents  or 
custodians,  etc.  He  or  she  will  sign  and  date 
the  DD  Form  1081  on  the  date  that  he  or  she 
advanced  the  cash,  received  the  subvoucher, 
etc. 
d.   (U)  Number  of  copies  and  distribution. 
(1)  (U)  DD  Forms  1081  will  be  prepared  in 
duplicate.  The  original  will  be  retained  by  (or 
eventually  returned  to)  the  person  who  initiated 
the  transaction.  When  the  signed  original  can- 
not be  returned  on  the  same  day  (i.e.,  when  the 
mails,  courier,  etc.,  must  be  used),  a  third 
(suspense)  copy  will  be  retained  by  the  prepar- 
ing person  until  the  signed  original  is  returned. 
At  that  time  the  suspense  copy  will  be 
destroyed.  However,  in  the  case  of  the  submis- 
sion of  subvouchers  (or  vouchers)  transmitted 
through  the  mails,  the  suspense  copy  will  re- 
main as  a  permanent  document  in  the  files.  It 
will  bear  the  PR  number  on  the  submission  of 
the  subvouchers.  When  the  signed  original  is 
returned,  it  will  contain  a  separate  PR  number, 
namely,  the  one  for  the  decrease  of  "Total  Ac- 
countability." 
(2)  (U)  A  return  of  funds  or  vouchers  for 
'  credit  against  a  previous  advance  will  not  be 
accomplished  using  the  same  DD  Form  1018 
on  which  the  advance  was  made.  Separate 
forms  must  be  used  for  each  separate  trans- 
action. Each  transaction  wll  bear  a  unique 
posting  reference  number.  The  instructions  con- 
tained in  AR  37-103,  paragraph  13-36,  do  not 
apply  to  ICF. 
e.  (U)  Security  classification.  Care  will  be 
taken  to  insure  that  DD  Forms  1081  contain  no 
classified  information.  However,  when  used  in 
conjunction  with  the  transmission  of  other 
documents  that  are  classified  (e.g.,  sub- 
vouchers),  DD  Forms  1081  will  bear  the  same 
security  classification  as  the  most  highly 
classified  subvoucher  attached;  they  will  be 
properly  downgraded  when  subvouchers  are 
removed. 
/  (Uf  Sample  statements  of  agent  officer's 
accounts.  Figures  7-2  through  7-10  illustrate 
the  most  common  types  of  transactions  for 
which  a  DD  Form  1081  is  used. 
(1)  (U)  Figure  7-2  shows  a  "cash"  advance 
from  an  FAO  to  a  class  B  agent.  The  advance 
was  in  the  form  of  a  U.S.  Treasury  check. 
(2)  (U)  Figures  7-3  illustrates  a  cash  advance 
from  the  class  B  agent  to  one  of  his  or  her  class 
A  agents.  (Note:  Class  A  agents  and  custodians 
do  not  deal  directly  with  FAOs.) 
(3)  (U)  Figure  7-4  illustrates  an  advance 
made  by  a  class  A  agent  to  one  of  his  or  her 
custodians.  This  statement  shows  an  advance 
of  foreign  currency,  U.S.  currency  (in  the  form 
of  a  postal  money  order),  and  the  return  of  an 
incorrect  subvoucher. 
(4)  (U)  Figure  7-5  shows  an  advance  of 
foreign  currency,  U.S.  currency,  and  military 
payment  certificates  to  a  case  officer. 
(5)  (U)  Figure  7-6  shows  the  return  by  a  case 
officer  of  a  previous  cash  advance.  The  case 
officer  submitted  a  subvoucher  of  unexpended 
funds. 
(6)  (U)  Figure  7-7  illustrates  the  way  in 
which  a  DD  Form  1081  would  be  prepared  to 
accompany  a  return  of  subvouchers  and  to 
report  a  currency  conversion  gain.  The  sam- 
ple shows  a  class  A  agent  making  returns  to  a 
class  B  agent.  Except  for  the  headings  at  the 
top  of  the  form,  the  procedures  would  be  the 
same  at  every  echelon.  Class  B  agents  would 
submit  vouchers  (DD  Forms  281)  to  the  FAO 
instead  of  subvouchers.  but  the  same  type  of 
entry  would  appear  on  line  8. 
(7)  (U)  Figures  7-8  and  7-9  illustrate  the 
type  of  entries  that  would  be  made  on  DD 
Forms  1081  at  the  time  of  a  changeover  of  ICF 
agents  or  custodians.  The  new  agent  (fig  7-9) 
is  signing  for  the  "Total  Accountability"  of  the 
old  agent  (fig  7-8).  The  sum  of  the  amounts 
on  lines  2,  3,  and  4  represents  the  balance  in 
Cash  on  Hand  account  (DA  Form  703)  at  the 
time  of  the  changeover.  The  amounts  shown  on 
lnes  8, 10,  and  1 1  represent  the  other  account 
balances  from  the  Cash  Blotter.  (Disregard  the 
shaded  block  on  line  8,  column  b.) 
(8)  (U)  Figure  7-10  illustrates  a  return  of 
paid  subvouchers  and  a  currency  conversion 
loss.  (Note:  This  is  a  sample  of  a  suspense  copy 
referred  to  in  c(l)  above.) 
(9)  (U)  For  sample  DD  Forms  1081  illus- 
trating the  procedures  to  be  used  when  making 
cash  collections,  see  figures  7-23.  7-24.  and 
7-25. 
7-5.  (U)  DA  Form  3697-R  (Subvoucher 
for  Disbursement  from  Confidential 
Funds) 
a.  (U)  Purpose  and  use.  DA  Form  3697-R 
(fig  7-11)  is  the  document  that  will  be  used  to 
explain  and  account  for— 
(1)  (U)  All  disbursements  of  ICF  made  by 
ICF  agent  officers  or  custodians  to  settle  claims. 
(2)  (U)  Actual  losses  of  funds  (see  para  4-2). 
(3)  (U)  Losses  due  to  currency  conversion 
transactions  (at  the  class  B  agent  level  only:  see 
para  4-7). 
b.  (U)  General  instructions  for  preparations. 
Except  for  signatures  and  posting  reference 
numbers,  all  items  should  be  typed  whenever 
possible. 
(1)  (U)  Procedures.  The  following  indi- 
viduals will  complete  the  indicated  items  of  sub- 
vouchers  (see  fig.  7-1 1): 
(a)  (U)  ICF  agent  officer  or  custodian.  Items 
1  through  6;  items  25  and  26;  item  27,  if  a  check 
or  money  order  is  used;  and  item  28. 
(b)  (U)  Claimant.  Items  7  through  19;  and 
item  27  (if  signature  is  required).  Claimants  will 
attach  required  receipts  (see  para  2-2). 
(c)  (U)  Approving  officer.  Items  20  through 
24. 
(2)  (U)  Security  classification.  Subvouchers 
will  be  classified  according  to  their  content; 
however,  in  no  case  will  the  classification  be 
less  than  CONFIDENTIAL. 
(3)  (U)  Number  of  copies  and  distribution. 
Each  ICF  agent  or  custodian  who  makes 
payments  to  claimants  will  retain  one  copy  of  ■ 
each  paid  subvoucher  for  his  or  her  files.  Class 
A  custodians  will  forward  the  original  and  one 
copy  of  each  paid  subvoucher  to  their  respec- 
tive class  A  agents;  class  A  agents  will  retain 
a  copy  and  forward  the  originals  to  their  class 
B  agents.  No  subvouchers  will  be  forwarded 
to  the  FAO. 
(4)  (U)  Number  of  pages.  Whenever  more 
than  1  page  of  a  subvoucher  is  required,  the  cer- 
tificate portion  of  the  form  will  be  removed 
from  all  pages  except  the  last  page.  Pages  will 
be  numbered  in  the  following  way:  1  of  4,  2 
of  4,  etc. 
(5)  (U)  Overprinting.  The  overprinting  of  a 
standard  description  in  the '  'Itemization  of  Ex-     | 
penses' '  column  is  authorized  for  common  types 
of  expenditures;  e.g.,  see  paragraph  2-25. 
28  MARCH  1986  UPDATE  •  AR  381-141
(6)  (U)  Number  of  claimants.  A  single  sub- 
^    voucher  may  be  submitted  for  more  than  one 
B   claimant  if  a  DD  Fonn  1  IS  (Military  Payroll 
™    Money  List),  showing  the  names  of  the  in- 
dividual claimants  and  the  amount  claimed  by 
each,  is  attached.  (For  use  of  DD  Form  I  IS, 
see  AR  37-107.) 
c.  (U)  Detailed  instructions  for  preparation. 
The  following  paragraphs  refer  to  the  numbered 
items  on  figure  7-11: 
( 1 )  (U)  Paid  by.  Grade  and  name  of  the  ICF 
agent  or  custodian  who  will  pay  the  claim. 
(2)  (U)  Title.  Title  of  individual  named  in 
item  1  (e.g.,  class  A  agent,  class  A  custodian, 
etc.). 
(3)  (U)  Class  A  custodian  control  number. 
Enter  the  letter  C;  then  the  number  of  the  sub- 
voucher,  beginning  with  number  one  each  fiscal 
year,  then  the  fiscal  year.  For  example, 
C-22-77  identifies  the  22d  subvoucher  paid  by 
a  class  A  custodian  in  fiscal  year  (FY)  1977. 
If  a  class  B  or  class  A  agent  pays  a  claim,  this 
block  will  not  be  used.  If  a  class  A  or  B  agent 
has  several  custodians,  an  additional  letter  or 
number  may  be  used  to  identify  a  particular 
custodian;  e.g.,  C-22-77(X). 
(4)  (U)  Class  A  agent  register  number.  Enter 
the  letter  A;  the  number  of  the  subvoucher, 
beginning  with  number  one  each  Fiscal  year, 
then  the  fiscal  year.  For  example,  A- 10-78 
identifies  the  10th  FY  78  subvoucher  received 
by  a  class  A  agent.  This  subvoucher  may  have 
Ik  been  paid  by  the  class  A  agent  (in  which  case 
p  it  would  have  no  class  A  custodian  control 
number);  or  it  may  have  been  paid  by  one  of 
the  class  A  agent's  subordinate  custodians  and 
forwarded  to  the  class  A  agent  who  entered  a 
register  number  without  regard  to  the  class  A 
custodian's  control  number.  Additional  identi- 
fying letters  or  numbers  may  be  required  at  the 
discretion  of  the  class  B  agent;  e.g., 
A- 10-78(501). 
(5)  (U)  Class  B  agent  subvoucher  number. 
Enter  the  letter  B;  then  the  number  of  the  sub- 
voucher,  beginning  with  number  one  each  fiscal 
year;  then  the  fiscal  year.  For  example, 
B-106-81  identifies  the  106th  subvoucher 
received  by  a  class  B  agent  in  FY  81 .  This  sub- 
voucher  may  have  been  paid  by  the  class  B 
agent  (in  which  case  it  would  have  neither  a 
register  number  nor  a  control  number);  or  it 
may  have  been  paid  by  a  subordinate  ICF  agent 
and  forwarded  to  the  class  B  agent,  who  entered 
the  subvoucher  number  without  regard  to  either 
the  control  number  or  the  register  number. 
(6)  (U)  Posting  reference  number.  This 
number  corresponds  to  the  PR  number  on  DA 
Form  703  that  identifies  the  line  item  entry  on 
the  Cash  Blotter.  Block  6  is  used  only  by  the 
agent  or  custodian  whose  name  appears  in  item 
1 .  Since  the  custodian  is  the  one  who  actually 
paid  the  claim,  the  PR  number  refers  to  a 
specific  line  entry  on  only  his  or  her  Cash  Blot- 
ter. (When  subvouchers  are  forwarded  to  the 
k      class  A  or  B  agent,  the  accompanying  DD  Form 
1081  will  have  a  separate  PR  number.) 
(7)  (U)  Date  of  expenditure.  Enter  the  date 
on  which  the«circumstances  described  in  item 
10  occurred.  This  date  should  coincide  with  the 
actual  date  the  funds  were  expended  by  the 
claimant.  In  the  case  of  claims  submitted  under 
paragraph  2-25,  enter  the  last  day  of  the  month 
for  which  the  claim  is  made,  regardless  of  the 
submission  date. 
(8)  (U)  Project  identification.  Enter  the  proj- 
ect name,  operations  plan  number,  case  num- 
ber, or  other  appropriate  identifying  data  for 
each  item  of  expense. 
(9)  (if)  Expense  code.  Enter  the  applicable 
item  of  expense  code  number  according  to  the 
instructions  in  appendix  C. 
(10)  (U)  Itemization  of  expenses.  Fully  ex- 
plain each  item  of  expense.  If  required,  refer 
to  any  document  that  contains  authority  for  a 
particular  expenditure.  Security  considerations 
will  not  bar  inclusion  of  complete  detail. 
(11)  (V)  Foreign  currency.  Enter  the  amount 
of  foreign  currency  expended  for  each  item. 
(12)  (U)  U.S.  dollars.  Enter  the  amount  of 
U.S.  currency  expended  for  each  item;  or  the 
U.S.  dollar  equivalents  of  foreign  currency  ex- 
penditures. Military  Payment  Certificates 
(MPCs)  will  be  treated  as  U.S.  dollars. 
(13)  (U)  Conversion  rate  used  in  foreign  cur- 
rency transactions.  Show  each  conversion  rate 
used  to  make  required  computations. 
(14)  (U)  Total.  Enter  the  total  of  the  foreign 
currency  and  U.S.  dollar  columns.  (See  para 
4-6fc(2).) 
(15)  (U)  Typed  name  of  claimant.  Enter  the 
true  name  of  claimant  or  registered  pseudonym 
according  to  AR  381-102. 
(16)  (U)  Title.  Enter  the  appropriate  title  (not 
grade);  e.g.,  case  officer,  special  agent,  sup- 
ply officer,  class  A  custodian,  etc. 
(17)  (U)  Unit  assignment.  Self-explanatory. 
(18)  (U)  Signature.  Self-explanatory.  Sign 
original  only. 
(19)  (U)  Dale  of  submission.  Self-explan- 
atory. 
(20)  (U)  Typed  name  of  approving  officer. 
Self-explanatory  (see  para  l-5g). 
(21)  (U)  Grade.  Self-explanatory. 
(22)  (U)  Duty  position.  Self-explanatory. 
(23)  (U)  Signature.  Self-explanatory.  Sign 
original  only. 
(24)  (U)  Date  of  approval.  Self-explanatory. 
(25)  (U)  Amount.  Enter  the  amount  of  funds 
paid  to  the  claimant.  Claimants  should  be  paid 
in  the  type  of  currency  expended  when  possi- 
ble. If  paid  in  a  foreign  currency,  enter  the 
amount  of  foreign  currency  and  the  U.S.  dollar 
equivalent.  This  amount  will  normally  be  the 
same  as  the  amount  shown  in  item  14;  however, 
it  may  be  smaller  if  the  approving  officer  has 
disapproved  a  portion  of  the  claim. 
(26)  (U)  Date  of  payment.  Self-explanatory. 
(27)  (U)  Signature  or  check  number.  Signa- 
ture is  required  when  the  claimant  is  paid  in 
cash  or  when  the  amount  of  the  claim  is  being 
deducted  from  a  previous  cash  advance. 
(28)  (U)  Downgrading  instructions.  Sub- 
vouchers  are  subject  to  the  General  Declassi- 
fication Schedule  of  Executive  Order  1 16S2.  If 
the  subvoucher  has  been  classified  CON- 
FIDENTIAL, enter  "AR  381-141"  in  the 
"classified  by"  space  and  "OADR"  in  the 
"declassify  on  '  space  (see  fig  7-12  through 
7-17).  If  a  subv-Hicher  warrants  a  higher 
classification,  then  enter  the  title  of  the  in- 
dividual who  has  original  authority  to  grant  the 
applicable  security  classification.  Regardless  of 
the  classification,  the  individual  with  original 
classification  authority  will  determine  the 
declassification  date.  A  specific  date  must  be 
entered  when  one  can  be  determined. 
d.  (U)  Examples.  The  various  examples 
shown  on  the  figures  listed  below  illustrate  cor- 
rectly prepared  subvouchers  for  several  com- 
mon types  of  expenditures.  Samples  of  receipts 
and  other  attachments  are  not  included;  how- 
ever, typical  references  are  made  to  them  on 
the  sample  subvouchers. 
(1)  {U)  Figure  7-12.  This  subvoucher  illus- 
trates claims  for  expenditures  for  contact  ex- 
penses, agent  pay,  a  gift,  a  transcript  fee,  and 
minor  operational  expenditures  (see  para  2-25). 
Payment  was  made  by  a  class  A  custodian. 
(2)  {U)  Figure  7-13.  This  figure  illustrates 
acceptable  methods  for  claiming  expenditures 
for  an  overt  official  contact  and  a  bilateral  pay- 
ment. Payment  was  made  by  a  class  A  agent. 
(3)  (U)  Figure  7-14.  This  subvoucher  con- 
tains sample  entries  showing  the  purchase  of 
incentives  and  intelligence  property;  note  the 
Intelligence  Property  Book  Officer's  Certificate 
(per  AR  381-143).  Payment  was  made  by  a 
class  B  agent.  The  incentives  were  paid  for  with 
a  check;  the  supply  officer  was  reimbursed  in 
cash  for  the_ radio. 
(5)  (U)  Figure  7-16.  This  subvoucher  il- 
lustrates the  proper  way  to  account  for  an  ac- 
tual loss  of  funds  (see  para  4-2).  No  other 
claims  will  be  submitted  on  any  subvoucher 
used  to  report  an  actual  loss  of  funds. 
(6)  (U)  Figure  7-17.  This  figure  is  an  ex- 
ample of  the  way  in  which  class  B  agents  would 
account  for  foreign  currency  conversion  losses 
(see  para  4-7).  No  other  expenditures  will  be 
accepted. 
7-6.  (U)SF  11 64  (Claim  for  Reimburse- 
ment for  Expenditures  on  Official 
Business) 
a.  (U)  Purpose  and  use.  SF  1164  (fig  7-18) 
will  be  used  to  support  claims  for  reimburse- 
28  MARCH  1986  UPDATE  •  AR  381-141
ment  for  local  travel  expenses  authorized  under 
provisions  of  paragraph  2-9  that  cannot  be  ex- 
plained in  detail  on  the  face  of  the  subvoucher 
(DA  Form  3697-R);  it  will  be  attached  to  the 
subvoucher  (DA  Form  3697-R)  claiming  reim- 
bursement. An  SF  1164  will  not  be  used  to 
claim  telephone  or  telegraph  charges  payable 
from  ICF  (sec  paras  2-15  and  2-25). 
b.  (U)  Instructions  for  preparation.  When  SF 
1 164  is  used,  the  DA  Form  3697-R,  to  which 
it  is  attached,  need  contain  no  further  informa- 
tion in  the  "Itemization  of  Expenses"  column, 
other  than  a  reference  to  the  SF  1 164;  only  the 
total  amount  from  the  SF  1 164  will  be  shown 
on  the  subvoucher.  (See  fig  7-15  for  an  exam- 
ple of  a  subvoucher  to  which  an  SF  1 164  would 
be  attached.)  The  SF  1 164  may  be  handwrit- 
ten if  completely  legible  and  will  be  completed 
in  the  following  way: 
(1)  (U)heml.  Enter  the  ICF  custodian's  or 
agent's  control  number,  register  number,  or 
subvoucher  number.  This  number  appears  on 
the  front  of  the  DA  Form  3697-R. 
(2)  (U)  hem  2.  Enter  the  applicable  posting 
reference  number  (same  PR  number  as  DA 
Form  3697-R  to  which  attached). 
(3)  (U)  Item  3.  Do  not  use. 
(4)  (V)  Item  4.  Enter  the  unit  to  which  the 
claimant  is  assigned. 
(5)  (U)  Item  5.  Self-explanatory. 
(6)  (U)  Item  6.  Disregard  instructions  on  the 
use  of  letter  codes  (a)  or  (b).  Use  descriptive 
entries  showing  the  mode  of  travel  as  shown 
in  items  7  through  10. 
(7)  (U)  Item  7.  This  is  an  example  of  the  type 
of  entry  required  to  claim  reimbursement  for 
expenses  incurred  in  the  official  use  of  a  pri- 
vately owned  vehicle  (POV).  The  $2.40  was 
computed  by  multiplying  the  number  of  miles 
(20)  by  the  mileage  rate  (12c).  Note:  Consult 
the  JTR  for  currently  authorized  rates.  The  15 
cents  is  for  an  authorized  toll;  e.g.,  highway, 
bridge,  runnel,  etc. 
(8)  (U)  Item  8.  This  expenditure  is  for  the 
return  trip  (see  item  7). 
(9)  (V)  hem  9.  Self-explanatory. 
(10)  (U)  hem  10.  Self-explanatory. 
(U)  Note:  If  an  expenditure  was  made  in  a  foreign 
currency,  show  the  U.S.  dollar  equivalent  of  the  ex- 
penditure in  the  "Amount  Claimed"  column.  Show- 
currency  conversions  in  item  17.  Reimbursement  may 
be  made  in  U.S.  currency  for  minor  travel  expen- 
ditures even  though  foreign  currency  was  actually 
spent  by  the  claimant.  However,  if  foreign  currency 
is  used  to  pay  the  claim,  then  conversions  will  be  made 
on  the  DA  Form  3697-R  in  the  usual  way  (see  para 
7-5c(!3)). 
(11)  (U)  Item  II.  Enter  the  column  totals  and 
the  "Grand  Total."  The  "Grand  Total"  is  the 
only  amount  that  will  be  placed  on  the  sub- 
voucher  unless  both  U.S.  and  foreign  currency 
are  used  to  pay  the  claim.  In  that  case,  the 
amount  i>f  each  type  of  currency  must  be  shown 
on  the  subvoucher. 
(12)  (V)  hem  12.  Do  not  use. 
(13)  (U)  Item  13.  Do  not  use. 
(14)  (V)  Item  14.  Enter  the  same  date  used 
in  item  19  of  the  DA  Form  3697-R  (see  fig 
7-11).  The  claimant  will  sign  in  the  space 
provided. 
(15)  (U)  Item  15.  Date  and  sign  if  the  trans- 
action is  reducing  a  cash  advance,  otherwise, 
leave  blank. 
(16)  (U)  Item  16.  Do  not  use. 
(17)  (U)  Item  17.  Accounting  classifications 
are  not  used  on  SF  1 164  for  ICF  expenditures. 
Use  this  space  to  compute  currency  conversions 
or  to  explain  any  item  requiring  clarification. 
c.  (U)  Number  of  copies.  SF  1164  will  be 
prepared  in  one  copy. 
d.  (U)  Security  classification.  Classify  SF 
1 164  according  to  content.  Place  applicable 
downgrading  instructions. 
7-7.  (U)  DD  Form  281  (Voucher  for 
Emergency  or  Extraordinary  Expense 
Expenditures) 
a.  (U)  Purpose  and  use.  DD  Form  28 1  (figs 
7-19  and  7-20)  will  be  used  by  ICF  class  B 
agents  (and  certain  special  custodians)  to 
account  for  all  expenditures  of  class  A  agents 
and  custodians.  When  properly  certified,  FAOs 
will  accept  DD  Forms  281  as  evidence  of  valid 
expenditures  made  by  their  appointed  ICF  class 
B  and  A  agents. 
b.  (U)  General  instructions.  The  instructions 
contained  in  this  chapter  pertain  to  all  ICF  class 
B  agents  and  to  the  FAOs  to  whom  they  are 
appointed. 
(1)  (U)  Number  of  copies.  An  original  will 
be  prepared  on  DD  Form  28 1 ;  four  copies  will 
be  prepared  on  DD  Form  281a  (Memorandum 
Copy).  Additional  copies  may  be  required  by 
local  FAOs. 
(2)  (U)  Object  class  code.  To  preserve 
secrecy,  all  expenditures  of  ICF  paid  on  DD 
Form  281  will  be  charged  to  object  class  2570. 
With  the  exception  of  the  appropriate  account- 
ing classification  (fund  cite),  no  details  or  ex- 
planation of  expenditures,  or  object  class  codes 
other  than  2570.  will  be  shown  on  either  trie 
front  or  reverse  of  DD  Forms  281  or  281a. 
(3)  (U)  Security  classification.  Vouchers  will 
be  prepared  in  such  a  way  that  they  do  not  con- 
tain information  requiring  a  security  classifica- 
tion. The  copy  retained  in  the  ICF  class  B  agent 
(or  special  custodian)  files  will  bear  the  same 
security  classification  as  the  most  highly 
classified  subvoucher  attached. 
(4)  (V)  Supporting  documents. 
(a)  (U)  COA  letter.  The  initial  voucher  for 
each  fiscal  year  will  have  attached  to  it  two 
photostatic  copies  of  the  annual  COA  letter 
referred  to  in  paragraph  1-5a.  Subsequent 
vouchers  citing  ICF  will  refer  to  the  first 
voucher  to  which  these  copies  are  attached  in 
the  following  way: 
Authority  for  expenditure  of  contingency 
funds  under  operation  and  maintenance.  Army 
FY   is  filed  with  disbursing  officer 
voucher  (DOV). 
28  MARCH  1986  UPDATE  •  AR  381-141 
Number  _ 
accounts  of . 
.dated. 
in  the 
.,  symbol . 
(bi  (U)  Subvouchers  (DA  Forms  3697-R). 
The  original  copies  of  all  subvouchers,  along 
with  all  required  receipts,  certificates,  and  any 
other  information  necessary  to  explain  fully  the 
expenditures  will  be  forwarded  along  with  all 
copies  of  the  voucher  (DD  Forms  281  and  281a) 
to  the  C&AO.  After  he  or  she  has  reviewed  the 
subvouchers,  the' C&AO  will  certify  that— 
expenditures  were  necessary  for  confidential 
military  purposes:  the  voucher  is  correct  and 
properly  substantiated;  the  payment  itself  is 
proper;  and  the  funds  charged  are  applicable. 
(5)  (U)  Certification  required.  Only  the  CAO 
(or  alternate)  may  certify  DD  Forms  281  and 
DD  Forms  281a  (see  paras  l-5e  (2),  «3>.  and 
(4),  and  1-50-  The  certification  will  not  be  ac- 
complished until  the  CAO  (or  alternate)  has 
determined  that  ICF  is  appropriate  in  accor- 
dance with  paragraphs  1-4  and  2-1.  In  addition 
to  the  completion  of  items  16,  17,  and  18  on 
DD  Form  281 ,  the  following  certificate  will  be 
placed  on  all  copies  of  DD  Forms  281a  (see  fig. 
7-20):  "I  certify  that  the  expenditures  shown 
on  this  voucher  were  necessary  for  confiden- 
tial military  purposes,  that  the  voucher  is  cor- 
rect and  properly  substantiated,  that  the  pay- 
ment itself  is  proper,  and  the  funds  charged  are 
applicable." 
(Signature  required  on  all  copies)  A 
Typed  Grade  and  Name  of  C&AO  ^ 
(6)  (V)  Distribution.  The  class  B  agent  will 
forward  the  original  (with  the  accompanying 
DD  Form  1081)  and  all  copies  to  the  FAO.  DA 
Forms  3697-R  will  not  be  forwarded  to  the 
FAO.  The  class  B  agent  may  retain  a  suspense 
copy.  After  completion  of  items  1  and  3  on  all 
copies,  the  FAO  will  make  the  following 
distribution: 
(a)  (U)  The  original  (DD  Form  28 1 )  will  be 
sent  by  the  FAO,  with  his  or  her  accounts,  to 
his  or  her  serving  accounts  office  (e.g..  U.S. 
Army  Finance  Support  Agency).  SF  1034  will 
no  longer  be  used  to  account  for  ICF. 
(b)  (U)  One  copy  (DD  Form  281a)  will  be 
returned  in  the  FAO  files. 
(c)  (U)  One  copy  will  be  used  by  the  FAO 
for  processing  "Transactions  for  Others." 
(d)  (U)  One  copy  will  be  sent  to  HQDA 
(DAMI-PBM),  WASH  DC  20310-1030. 
(e)  (U)  One  copy  will  be  returned  to  the  class 
B  agent.  All  applicable  subvouchers  (DA  Forms 
3697-R)  will  then  be  attached  to  this  copy  of 
the  DD  Form  281a  for  retention  in  the  ICF  class 
B  agent  (or  special  custodian)  files. 
(c)  (U)  Specific  instructions  for  preparation 
ofDD  Form  281  (fig  7-19). 
(1)  (U)  Item  /..  Disbursing  Officer  Voucher 
(DOV)  numbers  are  assigned  by  the  FAO. 
(2)  (U)  Item  2.  The  bureau  voucher  number 
will  be  assigned  by  the  class  B  agent.  He  or  she     d 
will  number  vouchers  sequentially  beginning     ^ 
with  number  one  each  fiscal  year;  e.g.,  1-83.
2-83,  etc.  Posting  reference  numbers  may  also 
1^^  be  placed  in  this  space. 
B     (3)  (U)  Item  3.  This  item  will  be  completed 
^^  by  the  paying  FAO;  this  space  is  often  called 
the  "Brief  Block," 
(4)  (U)  Item  4.  Enter  the  location  of  the  unit 
to  which  the  class  B  agent  is  assigned. 
(5)  (U)  Item  5.  Enter  the  date  the  voucher 
was  prepared. 
(6)  (U)  Item  6.  Enter  the  name  and  grade  of 
the  class  B  agent. 
(7)  (U)  Item  7.  Enter  the  class  B  agent's  unit 
and  address. 
(8)  (U)  Item  8.  Self-explanatory. 
(9)  (U)  Item  9.  Enter  the  amount,  in  U.S. 
dollars  only,  of  each  appropriation  charged  in 
item  10. 
(10)  (U)  Item  10.  Enter  the  applicable  ac- 
counting classification(s)  (fund  cite)  and  the 
required  reference  to  the  annual  letter  of  author- 
ity. On  the  first  voucher  for  each  fiscal  year, 
instead  of  referring  to  the  letter  of  authority, 
enter  the  following  statement: 
"Letter  of  authority  for  expenditure 
of  contingency  funds  under  opera- 
tions and  maintenance,  Army,  FY  is 
attached." 
(11)  (U)  Item  11.  Enter  the  total  of  all 
amounts  in  item  9.  This  total  must  include  the 
total  amount  of  all  attached  subvouchers. 
»(12)  (U)  Item  12.  Enter  the  date  the  voucher 
was  signed  by  the  class  B  agent. 
(13)  (U)  Item  13.  Enter  the  class  B  agent's 
name,  etc. 
(14)  (U)  Item  14.  The  class  B  agent  will  sign 
in  this  space. 
(15)  (U)  Item  15.  The  certifying  and  approv- 
ing officer  (or  alternate)  will  enter  the  amount 
of  funds  he  or  she  has  approved  for  payment 
after  having  reviewed  all  pertinent  subvouchers. 
In  no  instance  may  this  amount  exceed  the 
amount  shown  in  item  1 1 . 
(16)  (U)  Item  16.  Enter  the  date  the  certify- 
ing and  approving  officer  signs  the  voucher. 
(17)  (U)  Item  17.  Self-explanatory. 
(18)  (U)  Item  18.  Self-explanatory.  Note: 
The  CAO  may  not  be  the  payee. 
(19)  (U)  Item  19.  Not  used. 
(20)  (U)  Item  20.  Not  used. 
(21)  (U)  Item  21.  Self-explanatory. 
(22)  (U)  Item  22.  Self-explanatory. 
(23)  (U)  Item  23.  Self-explanatory. 
(24)  (U)  Item  24.  Self-explanatory. 
(25)  (U)  Item  25.  Self-explanatory. 
(26)  (U)  Item  26.  Self-explanatory.  Note:  All 
copies  will  be  signed. 
d.  (U)  Instructions  for  preparing  ofDD  Form 
281a,  Memorandum  Copy  (fig  7-20). 
(1)  (U)  Items  1  through  11  and  21  through 
26  are  carbon  copies  of  DD  Form  28 1 .  The  cer- 
^^    tificate  required  by  6(5)  above  will  be  added 
m  to  item  10  on  all  copies  of  DD  Form  281a. 
^^     (2)  (U)  Items  12  through  20  are  omitted. 
Preassembled  manifold  carbon  sets  make  this 
procedure  easier.  If  manifold  sets  cannot  be  ob- 
tained, separate  forms  and  regular  carbons  will 
be  used.. 
7-8.  (U)  DA  Form  2362-R  (Subsidiary 
Currency  Ledger) 
a.  (U)  Purpose  and  use.  Subsidiary  Currency 
Ledgers  (fig  7-21)  are  used  to  record  currency 
transactions  when  more  than  one  type  of  cur- 
rency is  kept  on  hand  or  when  only  foreign  cur- 
rency is  kept.  A  separate  ledger  will  be  main- 
tained, on  a  fiscal  year  basis,  for  each  type  of 
currency  used,  and  for  each  different  exchange 
rate  of  a  particular  foreign  currency  (see  also 
par  4-4). 
b.  (U)  Instructions  for  completion.  An  ex- 
planation of  the  sample  entries  shown  on  figure 
7-21  is  as  follows: 
(1)  (U)  Items  1-5.  Self-explanatory. 
(2)  (U)  Item  6.  This  entry  shows  the  balance 
brought  forward  from  a  previous  page. 
(3)  (U)  Item  7.  T  is  entry  indicates  that  5, 125 
pesos  were  paid  to  claimant  Jones,  using  a  DA 
Form  3697-R  (subvoucher),  on  5  October;  the 
posting  reference  (PR)  number  for  this  payment 
is  PR  126.  (The  entry  on  the  Cash  Blotter  for 
PR  126  would  be  as  follows:  Decrease  Cash 
on  Hand  $1,281.25  (the  U.S.  dollar  value  of 
5,125  pesos);  increase  Paid  Vouchers  on  Hand 
$1,281.25.) 
(4)  (U)  Item  8.  This  entry  indicates  that  1 ,000 
pesos  were  advanced  to  Lopez,  using  DD  Form 
1081 ,  on  12  October.  (The  corresponding  Cash 
Blotter  entry  would  be  as  follows:  Decrease 
Cash  on  Hand  $250;  increase  Cash  Advances 
$250.) 
(5)  (U)  Item  9.  This  entry  indicates  that  the 
ICF  agent  or  custodian  purchased  10,000  pesos 
at  an  exchange  rate  of  4  pesos  equal  $1  in  U.S. 
currency.  No  PR  number  exists  because  no  ac- 
counts on  the  Cash  Blotter  were  changed  by  this 
transaction.  (U.S.  currency  was  exchanged  for 
foreign  currency,  but  the  total  U.S.  dollar 
balance  in  the  "Cash  on  Hand"  account  re- 
mained unchanged.) 
(6)  (U)  Item  10.  This  entry  shows  that  Lopez 
returned  374  pesos  ($93.50  U.S.)  of  the  1,000 
pesos  previously  advanced  to  him.  (PR  150  on 
the  Cash  Blotter  would  be  as  follows:  Increase 
Cash  on  Hand  $93.50;  decrease  Cash  Advances 
$93.50.  If,  at  the  same  time  Lopez  also  turned 
in  a  subvoucher  for  the  balance  of  his  or  her 
cash  advance,  i.e.,  for  626  pesos  ($156.50 
U.S.),  the  entry  for  PR  150  would  be  as 
follows:  increase  Cash  on  Hand  $90.50;  in- 
crease Paid  Vouchers  on  Hand  $156.50; 
decrease  Cash  Advances  $350.00.  These  entries 
would  all  be  made  on  the  same  line  on  the  Cash 
Blotter  and,  therefore,  they  would  all  have  the 
same  PR  number.) 
c.  (U)  Security  classification.  Subsidiary  cur- 
rency ledgers  will  be  classified  according  to  the 
information  contained  on  them.  Appropriate 
downgrading  instructions  will  be  placed  on  the 
ledgers. 
28  MARCH  1986  UPDATE  •  AR  381-141 
7-9  (U)  DD  Form  1131  (Cash  Collection 
Voucher) 
a.  (U)  Purpose.  The  Cash  Collection 
Voucher  (fig  7-22)  establishes  formal  account- 
ability for  all  cash  collections  resulting  from 
one  or  more  of  the  following  transactions: 
(1)  (U)  Overpayment  of  claims.  These 
usually  result  from  computation  errors  made  on 
sub-vouchers  (DA  Forms  3697-R)  that  were 
not  corrected  before  payment  and  submission 
of  vouchers  (DD  Forms  281).  (An  incorrect 
subvoucher  discovered  before  submission  of  the 
DD  Form  281  should  be  returned  for  correc- 
tion of  the  error.  A  formal  cash  collection  will 
not  be  made  in  this  case.)  (See  also  para 
B-2eQ)(b).) 
(2)  (U)  Ultimate  disapproval  of  previously 
paid  claims.  Again,  a  formal  cash  collection- 
would  be  made  only  if  payment  were  disap- 
proved after  the  DD  Form  281  had  been  sub- 
mitted. Such  situations  usually  occur  as  the 
result  of  a  recommendation  made  by  an  auditor 
Or  insnectino  nffirir       ^ 
\ccumulated  net  gains  resulting  from 
foreign  currency  conversion  transactions.  (See 
para  4-7.) 
b.  (U)  Use.  A  Cash  Collection  Voucher  (DD 
Form  1131)  will  be  used  only  at  the  ICF  class 
B  agent  level.  The  class  B  agent  will  prepare 
DD  Forms  1 131  for  those  cash  collections  made 
either  by  himself  or  herself  or  by  any  of  his  or 
her  subordinate  class  A  agents  or  custodians. 
Methods  of  accounting  for  all  types  of  cash  col- 
lections below  the  class  B  agent  level,  along 
with  procedures  for  reporting  them,  are  con- 
tained in  g  below. 
c.  (U)  Number  of  copies  and  distribution.  An 
original  and  three  copies  will  be  prepared  and 
forwarded  to  the  FAO.  After  the  FAO  has 
assigned  the  disbursing  office  voucher  number, 
a  copy  will  be  returned  to  the  class  B  agent  for 
his  or  her  files.  The  orginal  and  remaining  two 
copies  are  for  use  by  the  FAO. 
d.  (U)  Security  classification.  DD  Forms 
1 131  will  be  prepared  in  such  a  way  that  they 
do  not  require  a  security  classification  (see  e(12) 
below).  Details  concerning  cash  collections,  in- 
cluding classified  date,  will  not  be  forwarded 
to  the  FAO  but  will  be  filed  with  the  class  B 
agent's  copy  of  the  voucher. 
e.  (U)  Instructions  for  preparation  (see  fig 
7-22). 
(1)  (U)  Item  1.  For  use  by  the  FAO. 
(2)  (U)  Item  2.  Enter  the  cash  collection 
voucher  beginning  with  one,  each  fiscal  year;
e.g.,  CCV-t-79,  CCV-2-79,  etc.  PR  numbers 
may  also  be  entered  in  this  space. 
(3)  (U)  Item  3.  Enter  the  class  B  agent's  unit 
of  assignment  and  its  location. 
(4)  (U)  Item  4.  Enter  the  name,  title,  and 
signature  of  class  B  agent. 
(5)  (U)  Item  5.  Enter  the  date  the  voucher 
is  submitted  to  the  FAO. 
(6)  (U)  Item  6.  Enter  the  name  and  location 
of  the  finance  officer  to  which  the*  voucher  is 
being  submitted. 
(7)  (U)  Item  7.  Enter  the  name,  grade,  and 
title  of  the  FAO;  the  FAO  will  sign  in  this 
space. 
(8)  (U)  Item  8.  Enter  the  FAO  Disbursing 
Station  Symbol  Number  (DSSN). 
(9)  (U)  Item  9.  For  use  by  the  FAO. 
(10)  (U)  Item  10.  Enter  the  inclusive  dates 
of  the  period  for  which  collections  are  being 
submitted. 
(11)  (U)  Item  II.  Enter  the  date  each  collec- 
tion was  received  at  the  class  B  agent  level. 
(12)  (V)  Items  12  and  14.  Disregarding  co- 
lumnar lines,  enter  a  description  of  each  col- 
lection in  the  following  way  only: 
(a)  (U)  For  overpayment  or  disallowance  of 
claims,  or  refunds  of  deposits,  enter:  Overpay- 
ment on  DOV  number   ,  (date  of 
DD  Form  281),  in  the  accounts  of  (Name  and 
grade  of  FAO),  (DSSN).  In  item  14,  enter  the 
original  accounting  classification  (fund  cite). 
The  DOV  Number  and  accounting  classifica- 
tion will  be  taken  from  the  DD  Form  281  that 
included  the  overpaid  or  disallowed  subvoucher 
or  the  subvoucher  on  which  the  original  pay- 
ment of  the  recovered  security  deposit  was 
*5»fade. 
r  proceeds  derived  from  the  sale  of  in- 
telligence property  orginally  purchased  with 
ICF,  enter:  Income  derived  from  the  sale  of 
surplus  property  used  in  classified  activities.  In 
item  14,  enter:  RAN  212649  US. 
(d)  (U)  For  accumulated  net  gains  resulting 
from  foreign  currency  conversion  transactions, 
enter:  Net  gains  on  transactions  in  foreign  cur- 
rency during  the  period   to 
— _   
In  item   14,  enter  RAN 
a  corresponding  increase  must  also  occur  in  the 
"Total  Accountability"  account  of  the  ICF 
agent  (or  FAO)  to  whom  he  or  she  is  account- 
able. For  this  reason,  actual  collections  should 
be  reported  immediately.  (Currency  conversion 
gains  or  losses  should  be  reported  by  class  A 
agents  and  custodians  along  with  regular  sub- 
voucher  submissions.)  The  following 
paragraphs  explain  the  way  in  which  collections 
should  be  reported  and  the  correct  method  of 
increasing  Total  Accountability. 
g.  (U)  Illustrations  of  cash  collections  pro- 
cedures. The  sequence  of  events  portrayed  in 
the  following  examples  traces  each  collection 
from  the  point  of  collection  (which  can  actually 
occur  at  any  custodian  or  agent  level)  to  the 
FAO.  Illustrated  are  Cash  Blotter  entries  and 
sample  DD  Forms  1081.  (All  Cash  Blotter 
postings  have  actually  been  made  on  the  sam- 
ple Cash  Blotters  in  app  D.)  Frequent  references 
are  made  to  DD  Form  634;  this  is  the  form  that 
will  be  used  instead  of  DD  Form  1 13 1  to  report 
cash  collections  below  the  class  B  agent  level. 
Specific  instructions  for  the  use  and  prepara- 
tion of  DD  Form  634  are  contained  in 
paragraph  7-10. 
crease  of  $450  to  his  or  her  "Cash  on  Hand" 
account.  The  custodian  would  also  post  an  in- 
crease to  the  proper  Subsidiary  Currency 
Ledger.  The  Cash  Blotter  is  now  temporarily 
out  of  balance;  the  "Total  Accountability"  is 
understated  by  $450.  It  will  be  corrected  later. 
(3)  (U)  The  custodian  would  then  forward 
the  DD  Form  634  to  his  or  her  class  A  agent. 
(4)  (U)  When  the  class  A  agent  receives  the 
DD  Form  634,  the  agent  will  post  an  increase 
of  $450  to  the  "Cash  Advances"  account  on 
his  or  her  own  Cash  Blotter.  (The  agent  will 
not  increase  "Cash  on  Hand"  since  he  or  she 
does  not  have  the  cash.)  The  agent  will  then 
prepare  a  DD  Form  1081  increasing  the  custo- 
dian's Total  Accountability  by  $450  (see  fig 
7-23).  The  agent  will  forward  the  original  and 
one  copy  of  the  DD  Form  1081  to  the  custo- 
dian without  delay. 
(5)  (U)  When  the  custodian  receives  the  DD 
Form  1081  from  the  class  A  agent,  the  custo- 
dian will  balance  his  or  her  Cash  Blotter  by  in- 
creasing his  or  her  "Total  Accountability"  ac- 
count by  $450.  The  custodian  will  sign  both 
copies  of  the  DD  Form  1081  and  return  the 
21R1680  U.S. 
(13)  (U)  Items  13  and  15  are  self- 
explanatory;  however,  only  US  dollar  values 
will  be  used. 
f.  (U)  Effect  on  Total  Accountability.  The^original  to  the  class  A  agent 
tum-in  of  a  cash  collection  is  actually  a  paperC  " 
transaction.  An  ICF  agent  or  custodian  whogi 
received  a  collection  will  not  turn  in  the  cash.  J? 
The  agent  or  custodian  will  retain  it  and  account  g 
for  it  in  the  same  way  as  the  receipt  of  a  cash  O I 
advance  from  the  individual  to  whom  he  or  she  Sg  (7)  (U)  The  A  agent  woukf  then  post  an  in- 
is  accountable.  Since  cash  collections  eventually  M  crease  of  $364. 11  to  his  or  her  "Cash  on  Hand" 
increase  the  "Total  Accountability"  account  of  account.  The  agent  would  also  post  an  increase 
the  agent  or  custodian  making  the  collection,      to  the  appropriate  Subsidiary  Currency  Ledger. 
The  class  A  agent's  Cash  Blotter  is  tempora- 
rily out  of  balance;  his  or  her  "Total  Account-  ^ 
ability"  account  is  understated  by  $814.11  B 
($450  resulting  from  the  increase  to  "Cash  Ad-  ^ 
vances,"  and  $364.11  resulting  from  the  in- 
crease to  "Cash  on  Hand").  It  will  be  corrected 
later. 
(8)  (U)  The  class  A  agent  would  then  for- 
ward the  DD  Forms  634  (both  the  one  he  or 
she  prepared,  and  a  copy  of  the  one  he  or  she 
received  from  his  or  her  custodian),  to  the  class 
B  agent.  If  the  class  A  agent  had  made  no  col- 
lections at  his  or  her  own  level,  the  class  A 
agent  would  report  to  the  class  B  agent  only 
those  collections  forwarded  by  the  custodian. 
(9)  (U)  When  the  class  B  agent  receives  DD 
Forms  634  from  the  class  A  agent,  the  class  B 
agent  will  post  an  increase  of  $814. 11  to  the 
"Cash  Advances"  account  on  his  or  her  Cash 
Blotter.  (The  class  B  agent  will  not  increase 
"Cash  on  Hand"  since  he  or  she  does  not  have 
the  cash.)  The  class  B  agent  will  then  prepare 
a  DD  Form  1081  increasing  the  class  A  agent's 
total  accountability  by  $814. 1 1  (see  fig  7-24). 
The  class  B  agent  will  foward  the  original  and 
one  copy  of  the  DD  Form  1081  to  the  class  A 
agent  without  delay. 
(10)  (U)  When  the  class  A  agent  receives  the 
DD  Form  1081  from  the  class  B  agent,  the  class 
A  agent  would  balance  his  or  her  Cash  Blotter 
by  increasing  the  "Total  Accountability"  ac- 
count by  $814. 1 1 .  The  class  A  agent  will  sign 
both  copies  of  the  DD  Form  1081  and  return  A 
the  original  to  the  class  B  agent.  ^ 
(1 1)  (U)  Assume  the  class  B  agent  also  made 
a  collection  of  $8. 10  at  his  or  her  own  level  as 
a  result  of  the  ACSI's  ultimate  disapproval  of 
a  previously  paid  claim.  The  class  B  agent 
would  prepare  the  required  DD  Form  634. 
Assume  the  class  B  agent  also  accumulated 
$0.06  in  net  gains  as  a  result  of  foreign  cur- 
rency conversion  transactions. 
(12)  (U)  The  class  B  agent  would  post  an  in- 
crease of  $8. 10  to  his  "Cash  on  Hand"  account. 
The  accumulated  net  gains  already  appear  in  the 
various  subsidiary  accounts,  hence  the  only 
posting  pertaining  to  the  gains  will  be  included 
in  the  increase  to  "Total  Accountability"  when 
the  Cash  Blotter  is  eventually  balanced.  An  in- 
crease would  also  be  posted  to  the  proper  sub- 
sidiary currency  ledger  if  required.  The  class 
B  agent's  Cash  Blotter  is  now  temporarily  out 
of  balance;  his  or  her  "Total  Accountability" 
account  is  understated  by  $822.27  ($814. 1 1  as 
the  result  of  the  increase  to  "Cash  Advances," 
$8. 10  as  the  result  of  the  increase  to  "Cash  on 
Hand,"  and  $0.06  resulting  from  net  gains). 
(13)  (U)  Next,  the  class  B  agent  would 
prepare  the  cash  collection  voucher  (Fig  7-22) 
based  upon  the  information  contained  on  all  DD 
Forms  634.  The  class  B  agent  will  also  add  the 
currency  conversion  gains. 
(14)  (U)  The  class  B  agent  would  also 
prepare  a  DD  Form  1081  (fig  7-25)  to  accom-  A 
pany  the  DD  Form  1131,  which  will  be  sub-  w 
mined  to  the  FAO.  No  DD  Forms  634  will  be 
28  MARCH  1986  UPDATE  •  AR  381-141
'^_       sent  to  the  FAO.  If  the  class  B  agent  had  made 
■a     no  collections  at  his  or  her  own  level ,  the  agent 
B^     would  have  listed  on  the  DD  Form  1131  oniy 
those  collections  forwarded  by  the  class  A  agent 
and  custodian,  and  any  accumulated  net  gains. 
(15)  (U)  When  the  FAO  accepts  the  cash  col- 
lection voucher,  and  signs  the  class  B  agent's 
DD  Form  1081,  the  class  B  agent  would  then 
balance  his  Cash  Blotter  by  posting  an  increase 
of  $822.27  to  his  "Total  Accountability"  ac- 
count. (Note:  The  PR  numbers  in  the  upper 
righthand  comer  of  the  sample  DD  Forms  1081 
refer  to  the  postings  of  the  increases  to  the 
"Total  Accountability"  accounts  of  the  persons 
who  received  the  DD  Forms  1081.) 
(16)  (U)  A  number  of  the  steps  illustrated  in 
(I)  through  (IS)  above  would  be  omitted 
depending  upon  the  level  at  which  the  collec- 
tion was  made.  However.the  following  axioms 
will  remain  constant: 
(a)  (U)  The  "Cash  on  Hand"  account  will 
be  increased  only  by  the  agent  or  custodian  who 
actually  made  the  cash  collection  and  has  the 
cash  in  his  or  her  possession. 
(b)  (U)  Every  other  account  through  which 
the  cash  collection  passes  will  show  the  cash 
collection  as  a  cash  advance  to  the  agent  or 
custodian  who  reported  it. 
(c)  (U)  Only  class  B  agents  will  prepare  DD 
Forms  1131. 
(d)  (U)  DD  Forms  634  will  never  be  for- 
j^k       warded  to  FAOs. 
B  (e)  (U)  ICF  agents  and  custodians  will  in- 
^^      crease  their  "Total  Accountability"  accounts 
only  after  they  have  received  signed  DD  Forms 
1081  from  the  persons  to  whom  they  are 
accountable. 
7-10  (U)  DD  Form  634  (Receipt  for 
Miscellaneous  Collections) 
a.  (U)  Use.  DD  Form  634  (figs  7-26  and 
7-27)  will  be  used  by- 
CD  fU)  Class  A  agents  and  custodians  (in  lieu 
of  DD  Form  1 13 1)  to  account  for  all  casn  col- 
lections (excluding  currency  conversions);  and 
(2)  (U)  Class  B  and  A  agents  and  class  A 
custodians  to  acknowledge  receipt  of  cash 
remittance  for  any  of  the  reasons  enumerated 
in  paragraph  7-9a  (1)  through  (6). 
b.  (U)  Number  of  copies  and  distribution. 
(1)  (U)  The  original  will  be  given  to  the  per- 
son who  turns  in  the  cash  to  the  ICF  agent  or 
custodian.  It  serves  as  a  personal  receipt. 
(2)  (U)  One  copy  will  be  retained  in  the  files 
of  the  class  B  or  A  agent  or  class  A  custodian 
making  the  collection. 
(3)  (U)  If  the  collection  resulted  from  the  sale 
of  intelligence  property,  a  copy  will  be  for- 
warded to  the  intelligence  property  book 
officer. 
(4)  (U)  Additional  copies  will  be  prepared 
so  that  each  agent  whose  account  is  affected  by 
the  transaction  may  retain  a  copy.  Copies  of  DD 
Forms  634  will  not  be  forwarded  to  FAOs. 
c.  (U)  Security  classification.  The  original 
will  contain  no  classified  information.  After  the 
required  explanation  has  been  added  to  the  other 
copies  (see  d  below),  they  will  be  classified  (or 
not)  according  to  their  content;  appropriate 
downgrading  instructions  will  be  placed 
thereon. 
d.  (U)  Instructions  for  preparation  (see  fig 
7-26  and  7-27). 
(1)  (U)  Item  1.  Enter  a  brief  description  of 
the  transaction;  enter  the  posting  reference 
number  on  all  copies. 
(2)  (U)  Item  2.  Enter  the  date  the  funds  were 
received  by  the  ICF  agent  or  custodian. 
(3)  (U)  Item  3.  Enter  the  amount,  in  U.S. 
dollars  only.  If  foreign  currency  was  actually 
collected,  show  conversions  in  item  9. 
(4)  (U)  Item  4.  Enter  the  unit  or  organiza- 
tion of  the  ICF  agent  or  custodian  making  the 
collection.  If  this  information  is  classified,  it 
should  be  omitted  from  the  original. 
(5)  (U)  Item  S.  Check  the  block  marked 
"Received  in  Cash  of  in  all  instances,  even 
if  the  remittance  was  made  by  check.  Do  not 
use  the  other  block. 
(6)  (U)  Item  6.  On  the  original  and  all  copies, 
enter  the  name  only  of  the  case  officer,  special 
agent,  or  other  member  of  the  unit  who  turned 
in  the  cash  to  the  ICF  agent  or  custodian.  On 
the  copies  only,  add  the  name  of  the  individual 
(or  firm)  from  whom  the  cash  was  received, 
and  the  title  of  the  person  who  turned  in  the 
cash.  If  a  bill  of  sale  or  other  evidence  of  the 
transaction  was  used,  attach  one  copy  to  each 
copy  of  the  DD  Form  634. 
(7)  (U)  Item  7.  Self-explanatory. 
(8)  (U)  Item  &  On  the  original  and  all  copies, 
enter  a  brief,  unclassified  description  of  the 
reason  for  the  collection.  On  the  copies  only, 
add  a  complete  description  of  the  transaction; 
identify  operational  plans  (OPLAN),  projects, 
original  subvouchers  (if  any),  etc.,  as  shown 
on  figure  7-27.  If  more  space  is  required,  con- 
tinue in  item  9  or  on  the  reverse. 
(9)  (U)  Item  9.  Show  currency  conversions 
if  foreign  currency  is  involved.  Class  B  agents 
will  enter  corresponding  cash  collection 
voucher  numbers  in  this  space.  Show  in- 
telligence property  book  postings. 
(10)  (U)  Item  10.  Enter  the  name  and  title 
of  the  ICF  agent  or  custodian  making  the  col- 
lection. If  the  title  "ICF  class  B  or  class  A  agent 
or  class  A  custodian"  would  create  a  security 
problem,  omit  it  from  the  original. 
(1 1)  (U)  Item  11.  The  ICF  class  B  or  A  agent 
or  class  A  custodian  making  the  collection  will 
sign  in  this  space. 
28  MARCH  1986  UPDATE  •  AR  381-141
UNCLASSIFIED 
CONFIDENTIAL 
(Not  Clauifitd  Vnttm  Otis  Ennn4) 
DA.fr»H„703 
F«r  vn  •<  tht*  *•*««.  at* 
INTELLIGENCE  CONTINGENCY  FUND  CASH  BLOTTER 
AH  M1-141;  trw  p»«oon«*t  oemcy  N  IK»  OHk*  •*  lh>  Am«1*«m  Chief  •!  Sl««l  !•»  Iftvltfeaaaft. 
CLASS  A  CUSTODIAN  li/ACCNTI  GAAOt.  NAME.  UNIT  AND  STATION 
CLASS             ACINI'S  GftAD£,  NAME.  UNIT  ANO  STATION 
© 
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OATE 
EXPLANATION 
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MO           CASH  ON  HAND  ANO 
©       *ATU 
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REPLACES  ACLACCS  COITION  of  t  SI*  *0.  WHICH  MAY  BE  UIEO. 
Classified  by 
Figure  7-1.  (U)  Sample  of  a  OA  Form  703  (Cash  Blotter) 
28  MARCH  1986  UPDATE  •  AR  381-141 
UNCLASSIFIED
UNCLASSIFIED 
*  IN* IN 
L 
CC  AND  ACCOUNTING  QrflCCfCS  CNAOI . MAMC.  ANO  STATION 
MONTH  AND  YtA* 
IN  BANK 
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PAID  VOUCHERS  ON  HAND 
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Declassify  on       OADR 
(.Vol  Clainfitd  t/nfcu  Dolt  Enfn4) 
CONFIDENTIAL 
Figure  7-1.  (U)  Sample  of  DA  Form  703  (Cash  Blotter)— Continued 
28  MARCH  1986  UPDATE  •  AR  381-141 
UNCLASSIFIED
UNCLASSIFIED 
STATEMENT  OF  AGENT  OFFICER'S  ACCOUNT                   CP£-  l°*2."> 
DISBURSING  OFFICCO'S  W«Mf .   ADOBE 55.  OISBUKSING  STATION  SYMBOL  HO. 
F.A.    OLSEN,    LTC,    FC 
USARNORTH   Finance   (,  Accounting  Officer 
APO  New  York   07307 
DSSN  2242 
AGENT  OFFICERS  NAME.  GRADE.  SSN, UNIT  ADDRESS 
(Include  ZIP  Code/  APO  number)  and  Telephone  number.) 
BART  B.    BEAN,    MAJ,    GS 
051-03-3336 
ICF  Class  B  Agent  Officer 
OACofS,   G-2,   HQ  USARNORTH 
APO  07307 
Phone:      2-7466 
TRANSACTIONS  AFFECTING  AGENT  OFFICER'S  ACCOUNT 
TRANSACTIONS 
a 
INCREASE 
(Received  by  Agent) 
b 
BEGINNING  BALANCE 
(In  Agent  t  Account) 
C 
DECREASE 
(Turned  in  by-Agent) 
d 
ENDING  BALANCE 
(In  Agenft Account) 
e 
1.  BALANCE  FORWARD 
$36,812.98 
2.  U.S.  OOLLARS 
3   FOREIGN  CURRENCY 
4.  MtHTARY  PAYMENT  CERTIFICATES 
S.  COLLECTIONS 
6.  DEPOSITS 
7.  NEGOTIABLE  INSTRUMENTS: 
A.  TREASURY  CHECKS  (#3  ,662.005) 
$10,000.00 
8.  MILITARY  PAYMENT  ORDERS 
C.  OTHER  (Specify) 
e    PAID  VOUCHERS 
9    INCORRECT  VOUCHERS  RETURNED 
12   TOTAL  FUNDU  IN  HANDS  OF  AGENT  OFFICtR 
$46,812.98 
STATEMENTS 
DISBURSING  OFFICER 
AGENT  OFFICER 
£]  ON  ADVANCE;   1  HAVE    INTRUSTED  FUNDS  AND/  OR 
OTHER  ITEMS  AS  INDICATED  IN  THIS  STATEMENT  TO  THE 
ABOVE  NAMED  AS  MY  AGENT  OFFICER 
[x]0N  ADVANCE:    1  .  AS  AGENT  OFFICER  .HAVE  RECEIVED 
FUNDS  ANO/  OR  OTHER  ITEMS  AS  INDICATED  ABOVE.   1 
HAVE  ASSUMED  PECUNIARY  RESPONSIBILITY  THEREFOR 
1  WILL  NOTIFY  THE  DISBURSING  OFFICER  IMMEDIATELY    _ 
UPON  DISCOVERY  OF  ANY  LOSS  OR  SHORTAGE  .AND  1 
HJ"":  RECEIVED  ANO  UNDERSTAND  WRITTEN  INSTRUCTIONS 
CONCERNING  MY  DUTIES  AND  RESPONSIBILITIES  ASAN 
AGENT  OFFICER. 
DATE 
20   Jan   78 
SIGNATURE  OF  DISBURSING  OFFICER 
OATE 
20  Jan  78 
SIGNATURE  OF  AGENT  OFFICER 
□  ON  RETURN:   1  HAVE  RECEIVED  FUNDS  AND/ OR  OTHER 
11  EMS  AS  INDICATED  ON  THIS  STATEMENT  FROM  THE  ABOVE 
NAMED  AGENT  OFFICER. 
QON  RETURN:  THE  ABOVE  STATEMENT  OF  ACCOUNT  IS 
CORRECT. 
DATE 
SIGNATURE  OF  DISBURSING  OFFICER 
OATE 
SIGNATURE  OF  AGENT  OFFICER 
—.—.  FORM  ..._._.. 
DD1MAV7S  1081 
REPLACES  EDITION  OF  1  DEC  57  WHICH  IS  OBSOLETE. 
Figure  7-2.  (U)  Sample  of  a  completed  OD  Form  1081,  cash  advance  to  class  B  agent 
28  MARCH  1986  UPDATE  •  AR  381-141 
UNCLASSIFIED
UNCLASSIFIED 
STATEMENT  OF  AGENT  OFFICER'S  ACCOUNT                     (  
Pfc.  Z7.6) 
oiskmsinc  officio's  «amc.  »owess.  ois*u*simg  station  svMaa.  mo. 
F.A.   OLSEN,    LTC,   FC 
USARNORTH  Finance  6  Accounting  Officer 
APO  New  York  07307 
S/N   2242 
BY: 
BART  B.    BEAN,    MAJ,    CS 
ICF  Class   B  Agent 
OACofS,    G-2,   HQ  USARNORTH 
APO  New  York  07307 
AGENT  OFFICERS  NAME.  GRADE.  SSN.  UNIT  ADDRESS 
(Include  Zlf  Code/  AfO  number)  and  Telephone  nuntber.l 
AMOS  A.    AVERY,    CPT,   MI 
662-99-7787 
ICF  Class    A  Agent   Officer 
HQ  63d  MI   Group 
APO  07305 
Phone:      772-6600 
TRANSACTIONS  AFFECTING  AGENT  OFFICER'S  ACCOUNT 
TRANSACTIONS 
a 
INCREASE 
(Received  by  Agent) 
b 
BEGINNING  BALANCE 
(In  Agent  t  Account) 
C 
DECREASE 
(Turned  m  by  Agent) 
d 
ENDING  BALANCE 
(In  Agenfi  Account) 
e 
1    BALANCE  FOOWARO 
$11,041.88 
2   U.S.  DOLLARS 
3   FOREICN  CURRENCV 
«    MILITARY  PAVMENT  CERTIFICATES 
S.  COLLECTIONS 
6   OEPOSITS 
)    NEGOTIABLE   INSTRUMENTS 
A  TREASURV CHECKS     (#3,662,116) 
S2.500.00 
B   MILITARV  PAVMENT  ORDERS 
C.  OTHER  iSpttityl 
1   PAIO  VOUCHERS 
9   INCORRECT  VOUCHERS  HETURNEO 
1  J.  TOTAL  funoe;  in  HANDS  OF  AGENT  Of  FlCE  R 
$13,541.88 
STATEMENTS 
DISBURSING  OFFICER 
AGENT  OFFICER 
Q ON  ADVANCE :    1  HAVE    INTRUSTED  FUNDS  AND/  OH 
OTHER  ITEMS  AS  INDICATED  IN  THIS  STATEMENT  TO  THE 
ABOVE  NAMED  AS  MV  AGENT  OFFICER 
£3 ON  ADVANCE:   1  .  AS  AGENT  OFFICER  .HAVE  RECEIVED- 
FUNDS  ANO/ OR  OTHfH  ITEMS  AS  INDICATED  ABOVE     1 
HAVE  ASSUMEO  PECUNIARY  RESPONSlBILIT  Y  THEREFOR 
1  MILL  NOTIFY  THE  DISBURSING  OFF  ICER  IMMEDIATELY 
UPON  DISCOVERY  OF  ANY  LOSS  OR  SHORTAGE  .AND  1 
HAVE  RECEIVED  AND  UNDERSTAND  WRITTEN  INSTRUCTIONS 
CONCERNING  MY  DUTIES  AND  RESPONSIBILITIES  AS  AN 
AGENT  OFFICER. 
DATE 
26  Jan    78 
SIGNATURE  OF  DISBURSING  OFFICER 
DATE 
28  Jan    78 
SIGNATURE  OF  AGENT  OFFICER 
QON  RETURN:   1  HAVE  RECEIVEO  FUNDS  AND/ OR  OTHER 
ITEMS  AS  INDICATED  ON  THIS  STATEMENT  FROM  THE  ABOVE 
NAMED  AGENT  OFFICER 
Don  RETURN:   THE  ABOVE  STATEMENT  OF  ACCOUNT  IS 
CORRECT 
DATE 
SIGNATURE  OF  DISBURSING  OFTICER 
DATE 
SIGNATURE  OF  AGENT  OFFICER 
_  _   FORM  .  _   _.. 
DD,   1081 
REPLACES  EDITION  OF  I  ^'iC  'il  WHICH  IS  OBSOLETE. 
Figure  7-3.  (U)  Sample  of  a  completed  OD  Form  1081,  cash  advance  to  class  A  agent 
28  MARCH  1986  UPDATE  •  AR  381-141 
UNCLASSIFIED