PROCEDURE FOR PROCUREMENT AND REPLENISHMENT OF CONFIDENTIAL FUNDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A000300210010-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: June 26, 2001
• Sequence Number: 10
• Publication Date: October 21, 1950
• Content Type: MEMO

21 October 1950
MEMORANDUM FOR: The Executive
FROM: Deputy executive
SUBJECT: Procedure for Procurement and Replenishment
of Confidential Funds
"Sec. 10.(b) The sums made available to the Agency may be ex-
pended without regard to the provisions of law and regulations
relating to the expenditure of Government funds; and for objects
of a confidential, extraordinary, or emergency nature, such
expenditures to be accounted for solely on the certificate of
the Director and every such certificate shall be deemed a suf-
ficient voucher for the amount therein certified."
2. Procedure for procurement and replenishment of funds required
to meet the confidential expenses of the Agency:
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a. Agent cashiers are designated by the Chief Disbursing Officer
of the Treasury Department upon the recommendation of the Director.
Current designations are:
Name
Assignment
Maximum Authorization
Chief, Finance Division,
Special Support Staff
$1,000,000
Deputy Chief, Finance Div.,
Special Support Staff
$1,000,000
Chief, Monetary Branch,
Finance Div., SSS
(Primarily concerned with
foreign exchange transactions)
$1,000,000
Disbursing Officer,
Finance Div., SSS
$ 500,000
b. Each Agent Cashier is bonded for $200,000. Treasury Depart-
ment has concurred in amount of the bond. Bond premium costs are
paid by CIA under authority of Public Law no.
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c. Agent Cashier obtains an advance from the Chief Disbursing
Officer to the maximum amount authorized, and, in effect, acts as
agent of the Chief Disbursing Officer in expending these funds.
Expenditures must be accounted for to the Chief Disbursing officer
as indicated in paragraph 1 above, at least once each month, at
which time the advance to the Agent Cashier is replenished to the
maximum authorized amount.
3. All expenditures by Agent Cashiers are made in accordance with
Agency Confidential Funds Regulations. Control measures are indicated
below:
a. Basic authorizations:
(1) Projects approved by Assistant Directors within overall
budget allocations to the Offices concerned.
(2) Special projects approved by the Director.
(3) Normal operating requirements within available funds.
b. Approving Officers designated by Assistant Directors concerned
certify as to the propriety of requested expenditures,
c. Vouchers are audited by auditors in the Finance Division,
Special Support Staff, and reviewed and certified for payment by
Certifying Officers of the Finance Division. Certifying Officers
are legally responsible for accuracy and propriety of expenditures.
d. Final review and payments are made by Agent Cashiers,
e. Questions of legality which arise are resolved by the
General Counsel.
f. A separate, independent audit by the Audit Division of the
Inspection and Security Staff is constantly in process, and periodic
reports of audit results are submitted to the Executive for the
information of the Director, and any corrective or improvement
measures which may be indicated.
4. Vouchers, such as those attached, representing the total of all
expenditures (including operational advances and foreign exchange tran-
sactions not yet accounted for in detail) made during the period covered,
are prepared for the signature of the Director and comprise the only
accounting required by law for CIA to render to the General Accounting
Office and the Treasury Department.
5. The whole problem of the utilization of confidential funds in
such manner as to ensure efficiency and flexibility in covert operations
and at the same time to provide adequate protection to the Director and
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the United States Government against possible misuse or actual malfeasance
is a difficult one. This problem is under constant review both within the
Agency and with appropriate officials of the General Accounting Office and
the Treasury Department. A conviction of good faith and reasonable con-
trols has been established in our relations with the General Accounting
Office which has resulted in the sympathetic support of that Office.
Attach.
2 Vouchers
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-8-04718A000300210010-6
MWPfD
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