SEMIANNUAL REPORT

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 0005500023
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 49
• Document Creation Date: June 24, 2015
• Document Release Date: April 14, 2011
• Case Number: F-2007-00194
• Publication Date: June 1, 2007

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Central Intelligence Agency (b)(7)(a)
Inspector General
SEMIANNUAL REPORT
TO THE DIRECTOR, CENTRAL INTELLIGENCE AGENCY
JANUARY - JUNE 2007
John L. Helgerson
Inspector General
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APPROVED FOR RELEASE ^
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(U) A Message From the
Inspector General
During this semiannual reporting period,
the Office of Inspector General (OIG) completed an audit of
The OIG completed one audit related to covert action activities in keeping
with the standing request of the Congress that OIG audit each covert action program no
less frequently than every three years.
(NCS)I
Committee on Intelligence (SSCI).
anaged by the National Clandestine Service
ndertaken at the request of the Senate Select
The Office also published audits o the In ormation O erations Network,
unused airline tickets, and audits of
were completed, Audit reports during this
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Agency' ~
The Inspection Staff published a comprehensive report on the
(U During this reporting period, the Inspection Staff also completed
reviews of two Agency-wide issues, two major Agency components, and a review of several
sensitive programs in a third.
(U~~Investigations undertaken by the Office continued, in large measure,
to focus on fraud and corruption matters. Inquiries are underway involving cases of theft,
contract fraud, conflicts of interest, acceptance of gratuities, and conspiracy. One of these
investigations involves a former high-ranking official who, during the reporting period,
was indicted on 30 counts related to his handling of Agency contracts.
(U~= A number of investigations involve embezzlement of funds by Agency
officers. In one case, the now former employee pled guilty to theft o
end awaits sentencing. AO case involves a lesse mount
and is nearing resolution. =other cases are in the early stages of investigation.
(U) OIG also continues to devote investigative resources to reviewing the
Agency's
This work, in cooperation with the
Departments of Justice and Defense, as appropriate, is examining the circumstances
surrounding the movement, confinement, and, in some cases, alleged abuse of detainees.
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(U) In conducting its audits, inspections, and investigations, OIG collects very
large amounts of data. The storage, retrieval, and analysis of that information is becoming
increasingly difficult. The efficiency and effectiveness of the Workforce would be greatly
enhanced by updated in formation technology systems. During the past year, OIG
implemented several automated tools to assist with the management
of data, including a and
search tools. We will continue our efforts to identify and evaluate applications for future
use and seek solutions for managing the volumes of data collected in our work. In its mark
on the FY-08 Authorization Bill, the SSCI expressed support for this initiative and
recommended additional resources that would greatly facilitate these efforts.
(U) OIG officers continued the Office's outreach efforts in a variety of forms.
Audit Staff personnel played a significant role in planning and implementing the annual
IC Inspectors General Conference in May, which this year was hosted by the DNI/IG. In
February, seven inspectors from the Inspection Staffs of the OIGs of the National Security
Agency, the National Geospatial-Intelligence Agency, the Defense Intelligence Agency, the
ODNI, and the Department of State participated in OIG's New Inspector Training
Course. The IG in June addressed the International Symposium on the Accountability of
Intelligence and Security Agencies and Human Rights, held in The Hague and sponsored
by the Dutch Review Committee on the Intelligence and Security Services.
John L. Helgerson
13 July 2007
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(U) STATUTORY REQUIREMENTS
(U) This report is submitted pursuant to section 17 of the CIA Act of 1949,
as amended, which requires the Inspector General to provide to the Director,
Central Intelligence Agency (D/ CIA), not later than 31 January and 31 July of
each year, a semiannual report summarizing the activities of the OIG for the
immediately preceding six-month periods, ending 31 December and 30 June,
respectively.
(U) All audit activities of the OIG are carried out in accordance with
generally accepted government auditing standards. All OIG inspection and
investigation activities conform to standards promulgated by the President's
Council on Integrity and Efficiency.
(U) The OIG has had full and direct access to all Agency information
relevant to the performance of its duties.
(U) Subpoena Authority
(U& I During this reporting period, the IG did not issue any
subpoenas.
(U) Legislative Proposals
(U) OIG has no proposals for legislative changes.
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(U) AUDITS
(U) AUDIT STAFF OVERVIEW
(UThe Audit Staff conducts performance and financial audits
of CIA programs and activities. During this period, the Audit Staff completed 10
audits that addressed program management, covert action, financial
management, information technology, an
The Audit Staff continues to pursue its program, as requested by
the Congress, to audit each covert action program (or an aspect of each program)
at least every third year and to provide the results of each audit to the Congress.
This reporting period, the Staff completed a covert action audit involving
(U) This reporting period, Audit Staff members served on the committee
responsible for arranging the Intelligence Community Inspectors General
Conference. The conference, which traditionally has been hosted by the CIA
Office of Inspector General, was held on 10 May 2007 and was hosted by the
Office of the Director of National Intelligence (ODNI) OIG. CIA Audit Staff
members were recognized by the ODNI IG for their significant contributions to
the success of the conference.
(U) COMPLETED AUDITS
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(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS OUTSTANDING FROM
PREVIOUS SEMIANNUAL REPORTS
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(U) SUMMARIES OF SELECTED CURRENT AUDITS
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(U) INSPECTIONS
(U) INSPECTION STAFF OVERVIEW
(U/) The Inspection Staff is responsible for conducting
inspections of CIA programs and operations to evaluate their efficiency and
effectiveness and their compliance with law, Executive orders, and regulations.
(U/~ During the current reporting period, the Staff completed
inspections of the Counterintelligence Center (CIC) in the National Clandestine
Service (NCS),
the Office of the Associate Director for Military Affairs (ADMA) in
the Director's Area,
and Human
Resources (HR). In addition, the Staff commenced inspections of the Near East
and South Asia Division in the NCS, the Office of Russian and European
Analysis in the Directorate of Intelligence (DI), Applications Services in the
Office of the Chief Information Officer (CIO), the Agency's Performance orf
and Training of New DI and NCS Officers, as well as a
follow-up inspection on Agency Targeting.
(U/~ The Inspection Staff continues to conduct a two-week course
for new inspectors and a seminar for team leaders before the start of each
inspection cycle. The Staff also provides instructional seminars for OIG
inspectors and research assistants during the course of each cycle.
(U/L
Performance
b In addition, the Staff closed five inspections - the Agency's
the Leadership Analysis Follow-Up,
Retention in the Agency, and the Directorate of Science and Technology's
(DS&T's) In the case of
the relevant stakeholders have satisfied the remaining
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(U) COMPLETED INSPECTIONS
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(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS OUTSTANDING FROM
PREVIOUS SEMIANNUAL REPORTS
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(U) SUMMARIES OF CURRENT INSPECTIONS
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(U) INVESTIGATIONS
(LI) INVESTIGATIONS STAFF OVERVIEW
(U~ The Investigations Staff is statutorily authorized to receive
and investigate complaints from any person concerning possible violations of
laws, regulations, policies, and procedures, as well as allegations of waste, fraud,
mismanagement, abuse of authority, and substantial dangers to public health
and safety related to Agency programs and operations. Investigations are
normally conducted unilaterally by OIG Special Agents, but other Federal
investigative elements can be called upon when law enforcement authorities are
necessary. The Staff also oversees the Agency's grievance system and conducts
proactive initiatives aimed at detecting and preventing fraud, waste, and abuse.
(U/~ The Staff conducted a range of other investigations,
including allegations of fraud by employees and contractors, possession of child
pornography, theft of US Government property, misappropriation of funds, and
false statements and claims.
(U/ As a result of Staff investigations matters previously
referred to the Department of Justice (DoJ) for potential prosecution have been
resolved. In one matter, OIG Special Agents developed information that a now-
former employee may have embezzled in cash from the
Agency. The former employee has entered a guilty plea in US District Court in
the Eastern District of Virginia and awaits sentencing. In another matter, OIG
Special Agents developed information regarding theft of government property
by an Agency contractor. The now-former contractor
has entered a guilty plea in the Northern District of Florida and awaits
sentencing. Finally, a former independent contractor entered a guilty plea in the
Northern District of California for falsifying background investigation reports on
potential employees. He also awaits sentencing.
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Finally, a former Agency
contractor was sentenced to over eight years in prison following his conviction
Congressional oversight
committees are regularly informed of progress in these investigations.
(U~ The Staff's workload continues to grow. The Staff's
remaining investigative vacancies will be filled in the coming months with the
addition of three individuals who have substantial Federal law enforcement
experience.
(U/ The nature of investigations faced by the Investigations Staff
has broadened dramatically in the past several years. The Staff has conducted
investigations of deaths, child pornography, significant thefts of money and
property, and numerous firearms-related matters. At the same time, the Staff has
had to become less reliant on assistance from the FBI and other traditional law
enforcement agencies,
(U/L____] The Staff continues to oversee the Agency-wide grievance
system, which seeks to resolve grievances at the lowest possible level in the
organization. In addition to sponsoring a yearly grievance counselor workshop
for component and directorate grievance officers, the Staff hosts regular meetings
of grievance officers to share issues of common interest, and it conducts
mandatory training for all new grievance officers. This training, together with
the emphasis on resolution at the lowest possible level, continues to contribute to
effective and timely grievance resolution.
(U) COMPLETED INVESTIGATIONS
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(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS OUTSTANDING FROM
PREVIOUS SEMIANNUAL REPORTS
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(U) STATISTICAL OVERVIEW
(U) Audit Staff
(U/~ During the period 1 January to 30 June 2007 the Audit Staff
issued 10 reports and made 36 recommendations to strengthen internal controls
over program management, covert actions, financial management, information
technology, and field station administration.
(U/ p The Audit Staff had 31 audits ongoing at the end of the
reporting perio
(U) Inspection Staff
(U/J During the first six months of 2007, the Inspection Staff
completed seven inspections. At the end of the reporting period, the Staff also
had six ongoing inspections. In addition, the Staff closed five inspections.
(U) Investigations Staff
(U/The Investigations Staff completed work on 100 matters of
various types during this reporting period. Of this number,=cases were of
sufficient significance to be the subject of a final report.
(U/ During this period, the IG formally referred eight matters to
DoJ based upon a reasonable belief that violations of Federal criminal law may
have been committed.
(U~ As of 30 June 2007, 153 matters were in various stages of
review by the Investigations Staff.
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(U) COMPLETED AUDITS
1 January - 30 June 2007
(U) Financial Management
(U) Information Technology
(U) Information Operations Network
(U) Operations
(U) Procurement
(U) (Activities
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(U) CURRENT AUDITS
30 June 2007
(U) Financial Management
(U) Independent Audit of the Central Intelligence Agency Fiscal Year 2007
Financial Statement
(U) Information Technology
g 2007 Independent Evaluation of the CIA's Information Security
Program and Practices Required by the Federal Information Security
Management Act (FISMA)
(U) Operations
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(U) Procurement
(U) (Activities
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'-rc
(U) COMPLETED INSPECTIONS
1 January - 30 June 2007
(U/~
(U/~
(U/
CIA Counterintelligence Center
Office of the Associate Director for Military Affairs
(U) CURRENT INSPECTIONS
30 June 2007
(U/
(U/
Near East and South Asia Division
Office of Russian and European Analysi~
Application Service
(U//FOUO) Training of New DI and NCS Officers
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(U) COMPLETED INVESTIGATIONS
1 January - 30 June 2007
(U/
Allegation of Misconduct by Senior Official
Allegation of Waste
(U) Alleged Conflict of Interest
(U/
(U/
(U/
Alleged Disclosure of Confidential Information
Alleged Medical Leave Bank Abuse
I)
Alleged Misuse of Authority
Conflict of Interest and Inappropriate Assignment
* (U) These investigations resulted in a Disposition Memorandum rather than a Report of
Investigation.
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(U) CURRENT INVESTIGATIONS
As of 30 June 2007
(U) Category
Number of cases
(U
)
Grievances
1VI anage
ment and Supervision - Grievance
Other - Grievance
General Investigations
Criminal and Prohibited Acts
Conflicts of Interest
13
Embezzlement
3
False Claims - Other
8
False Claims/Statements/Vouchers
6
False Claims - Time & Attendance
24
False Claims - TBD
2
Firearms
4
Management and Supervision - Administrative
1
Megaprojects
3
Misconduct - Employee
4
Misconduct - Management
5
Procurement Fraud
19
Regulatory Violations
1
Retaliation
1
Theft/ Misuse of Government Property
5
Other - Administrative/ Criminal
35
Unauthorized Operation
1
Unsubstantiated Allegations
14
(4 I Total Ongoing Cases
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