This memorandum should define the documentation which is required to establish custodial responsibility for inmates and define the information exchange procedures necessary to protect the positions of each part. Each agency should designate a senior official with authority to settle the current dispute over the more than $20 million allegedly owed by the District of Columbia Department of Corrections to the Federal Bureau of Prisons for the housing of District prisoners in Federal penal institutions. Staff auditors from both agencies should process and review the information. Currently the parties to the dispute lack a contract or written procedure and have not been actively seeking to resolve the dispute. Although each agency has established improved accounting systems, which should prevent most future disputed charges, these improvements will not resolve the conflicts of the previous 7 years. A discussion of the nature of the disputed billings is included.