EMPLOYEE ACTIVITY ASSOCIATION PLANS FOR MERCHANDISE SALES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00688R000200160010-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 12, 2016
• Document Release Date: February 25, 2002
• Sequence Number: 10
• Publication Date: February 13, 1967
• Content Type: MF

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:-...3E.:.101-(ANDUNi FOR : Deputy Director for Support
.315:73,Te:CT : Employee- Acavity Association Plans for
Merchandise Sales
REFFR.ENCE : Memo for F.seDireCorepte fr ODS, Subj: 'Employee
" Activity Association, -dtd 20 Jun 66. .?
I. This memorandum is for your Information.
2. On 13 July 1966 the Executive DirectoreComptr4:311er approved
referent memorandum authorizing the use of Roorn 1/37 In Headqearters
Building as an Employee Activity Association (EAA) "Store" and the initiation
of an expanded EfAA merchandiee sales program. Our plans for the "Store"
and expanded sales program have now progressed to the point where we can
soon initiate this further step in the developneent of the EAA concept in CIA;
the purpose of this memorandum is to summarize our plans and to review
seme of the 2nanagenient considerations that influence this phase of the FAA
program.
-4 The EAA staff has already rneved into Room 1337 where it has been
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conducting a limited sales program and those club, cultural, and athletic
activities that have been in existence for sometime. (In addition, EAA has
retained the ticket booth in the North? Cafeteria COTICOUrSe. ) The planned
expansion of FAA's merchandise sales program will be modest, in good taste,
and will include items that we feel will appeal to EAA members, such as
luggage, 'watches, wallets, seasonal sporting equipment, camping equipment,
first aid kits (household and automobile), pen and pencil sets, and a limited
aseortment of greeting cards and paper good*. Only first line merchandise
with discounts wherever possible will be offered, e.g., Samsonite luggage,
Hamilton watches, Cross pens and pencils, and Hallmark cards: At least
Lnitially, only a Uelited inventory of these items Neill be maintained so that
no large commitment of EAA funds will be made until such time as it is
certain that Agency employees are purchasing'these items in quantitiee
justifying larger inventories.
4. .We are in the.erocess of obtaining-an architectural design, and
related cost estimates for converting Room 1-737 into en attractive area that
would provide office space for the FAA staff to =11 FAA's club and cultural
activities and to orovide appropriate co-enters and 5b.eiNmat, for display of the
-.11-..erchandise offered for sale.. Appropriated funds will not be expended for
this renovation. Instead, a non-interest bearing loan will be requested from
tl",:e. Central Club :fund `7=, th the. clear endersta_eding that it is for renovation
and is to be reeaid as soon as -possible from ji.A.A income.
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5.. Durin-g our planning for expa.nding our merchaodise sales program,
we have reviewed the entire .f...AA program and its staffing requirements. .It
important te note that this Agency, as weli as .other Government agencies,
anti other employers, has historically offered employees certain recreationat
Rorrunitie* 1 a club, athletic, and cultural nature. One reason for close
Agency review and support ef such a program stereened Irene the seeurity
implications crf participation by Agency personnel in these activities in. non-.
Agency groups. It became necessary for the Agency to develop a means for
monitoring and coordirating. theee activities to ensure no compromise el,
A gericy personnel er interests. ri`ollowing the move to the Headquarters
Building, a modest ticket service for athletic and celtairal events was..
instituted; EAA's ticket aervice made it possible for Agency employees to
enjoy opportunides eizeilar to those available to employees in ether Federal
aeencles in such a way as to avoid disclosure of Agency affiliation or compro-
mise of Agency interests. An EAA program of this scope and nature has long
been eonsid.ered to be an Agency activity. comparable to that afforded by other
Federal agencies and, to this extent, it appears appropriate that the Agency
support these activities from appropriated funds. The matter of a merchan-
dise sales program le somewhet differ.ent.. Itenay be argued that the ene.? -
isolation of the He quarters Building has created a unique- problem for
Agency employees and that this convenience at their place of employment can
actually result in a aaving of Agency time and money, but we believe that the
salaries- anti related peraonal services costs for personnel associated with
the EAA merchandise sales pro;.,1ram should be borne by EAA.
6. The present EAA staff consists of eix staff persoonel who are being
paid from appropriated funds and one part-time contract accountant whose
salary is fully paid by EAA. Of the six staff employees, three spend the
majority of their time on clubs, en/hazel activities, athletic programs, and
the limitedticket service, all of -which we feel to be a part of the Agency's
ereployee relations program. The reir_aining three employees are more
directly connected with the merchandise sales program; FAA must absorb
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dee cost of their salaries and related pereonal services costs as soon as
possible.
7. No increase in EAA. aff is contemplated for the expanded rnerchan-
diee ea.les eroz?earn. Should this new phase of LAA's development prove .
successful and profible, and ehould we embark on an enlarged sales program
tE:orete future time, additional personnel =tight be needed?hut only if EAA
can surepoet each additional ebtfin,e from current income after F..ay-in. g the
perisontiel costs, for employees already e.n.gaged in the bales program.
The e_xpandecl merehara:lise sales program presumes a euhetanteelly
ierne.ased incmeor EAA from such snhs. Lased on eur fow exneriznenta, .
T"-ene
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particularly Christmas sales, we believe that a significa.nt potential. exists
for 7.:A.A to realize income from such aala to support such a program- It is,.
Of course, difficult to estimate the actual Income that might be earned, ? but
vrc.? expect to. know after six to twelve months if our eeUxnate of this potential
has been overly oparnistic. You can be sure that as soon as we are able to
evaluate this fully, we will do so. If we conclude that income from sales will.
not be sufficient to make the program self-sustaining, we will propose
immediate curtailment of this- part of the EAA program.
9. There is atta.ched EA.Pssa balance sheet as of 31 December 1966, a
statement of income and expenses for Calendar Year 1966, and some additional.
financial inforination which may be of interest?
Atts
Distribution:
& 1. - Addressee
1, - D/Pers
BSD Chrono
EAA Policy
25X1A OP/BSD/
mnett D. Echols
Director of Personnel
:bhd (13 February 1967)
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