CONCUR - ACTION COMPLETED OR IN PROCESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A001600010003-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 17
• Document Creation Date: December 9, 2016
• Document Release Date: June 16, 2000
• Sequence Number: 3
• Publication Date: June 1, 1955
• Content Type: REPORT

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DRAFT * FPB aasr (1 June 1955)
Concur - Action Completed or in Process
25X1A
Conclusion and R oomaendation. No. 1
The Office of the Comptroller has been commended for the continuing progress
made in carrying out its responsibilities so efficiently.
Regulations and Notices.
Conclusion and Recommendation 10. 4
pursuant to the recommendation pertaining to the oontrol of advances, new
Office of the Comptroller and has been transmitted to the Regulations Control Staff
through Logistics Office. The revision of Confidential Funds Regulation XI provides
that delinquencies without positive corrective action.will be brought to the
attention of the Deputy Director (Support) at the expiration of four months
instead of six months as under previous procedures.
At the March DCI Staff Meeting the Comptroller presented and discussed the
problem with respect to delinquent advances thereby complying with the recommendation
of the Inspector General that the Director place on the agenda of his Staff Meeting
periodically the subject of delinquent advances,
"bw of Confidential Funds Reegulatio~ has been coordinated internally iu tl i
have been submitted to the
25X1A!
Regulations Control Staff. This will cover all provisions of Section XI of the
Confidential Funds Regulations except for CFR paragraph 11.0b. An additional
R. ,ulatioz - Advances of Funds for Travel - av :ich will rescind paragraph 25X1 A
Conclusion and l.commendatiorz No. 5
The recommendation that the DCI sh
between the Agency and private firms fr
\approval of the Deputy Director (Suppo
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is further recommended that w n research and development contracts be placed in
the same category. It is not believed necessary to write a specific regulation 25X1 A
covering this subject since CIA Regulation provides that the Agency will use
the Armed Services Procurement Regulations as a guide for the procurement of
supplies and services Insofar as practicable; and in our opinion, if such reu-
lation is adhered to without waivers, adequate audits will be performed in all
instances where appropriate. However, no regulation will prevent the DCI from
waiving an audit if he so desires since he is responsible for the regulations and
can always amend and/or make an exception.
Conclusion and Reconmendation No. 7
25X1P
Confidential Funds Regulations in current process of being revised
25X1 A th
uirestents
re
t
by Agency Regulation No.
e
e
q
which will more clearly delinea
and responsibilities of the various DD/P and DD/S components for the preparation
of Administrative ,'lane, and the management of proprietary projects . 25X1 C
2, Action has been taken to increase the T/O of the Proprietary Accounts
branch of the Comptroller's Office to provide necessary personnel to establish
and maintain adequate accounting systems and controls for proprietary and special
projects.
3. Quarterly Reports pertaining to the status of proprietary and special
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projects are being disseminated by the Comptroller to DD and 0
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Conclusion and Recommendation No. 9
The subject of integration of planning and pragr*mnLtug with the budget is a
term problem on which work has been progressing for over two years and one
which will require continuous work in the future, However, further progress he*
d as a result of a series of meetings which have been held
with the PPC representatives and FI representatives to further such integration
continue to be taken with regard to this problem.
'AN
.olusjog and 1eoos endaticm No 10
With respect to the obtaining of No-Year funds for the Agency, you are
the prior toy the House Appropriations Committee
hearing; this year resolved for the moment the problem of No-Year funds and no
further action is contemplated at this time,
25X1A
Conclusion and Rooo=mdation No. 11
The preparation and release of a Budget Manual is now in process. One section
of a Budget Manual has been. released to the Regulations Control Staff and two
additional sections are now in the process of preparation end will be cleared
through the Regulations Control Staff in the very near future,
Conclusion and Reoozu ondation No. 12
The operating budget procedure has been completely reworked and the revised
procedure is being used in connection with the operating budget for the fiscal year
1966. The Comptroller's, Office is now in the process of developing instructions
covering the definition of an obligation and the recording thereof as set forth in
Section 1311 of Public Lew 773, approved 26 August 1954. However, additional work
will be required in connection with the revision of the application of Section 1311
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cials as another effort\_on the part of the Comptroller
Conclusion and Recommendation No. 15
Regulation No. dated , which provides for a gold-
planning cycle one year in advance of the budget planning cycle, will in effect
pro
of Ague
Budget,
dget Pivision is now in proses of developing
e recording Thereof as
blio Law t3, approved 23 August 1954. I In addition; the
dministratil'e plans are
strengthsed
deviations i t budgets and project outlixsps to be repokted
proval. Th., action take to strengthen\administratite
,ad to' l rprove all phases of the dmfnistration o these pro jests
as which are the responsibility of to divisions but..is being
mechanism whereby the DCI may review preliminary plans and estimates
requirements before he discusses budget ceilings with the Bureau of the
Conclusion and Recommendation No. 16
a and b. A comprehensive analysis of the financial practices of all field
stations has ra.y been completed. This analysis used to prepare
Station Chief off- fl where there has been loose or
dispatches to *14
improper fiscal management. We would like to put across the thought that we do
not believe it to be appropriate to burden the Director with such details. The
Director, in matters of this nature, should only be called upon when those under
him cannot obtain proper action.
Such procedures have been developed and distributed to field stations.
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Was are working constantly on the iaprovemaant and refinement of such procedures.
d. The Comptroller's Office has prepared an outline of a *Financial
nageteent Handbook for Case Officers", has assigned an individual on a full
time basis to develop this Handbook, and has established an ad hoc committee
consisting of 2 members each from the Office of the Comptroller, Office of
Training, and DD/P review the Handbook and insure that it is prepared along lines
which are responsive to operational and training requirements,
s recommendation was carried out last year. We have given specific
attention to the incorporation of fiscal subjects in operations courses and also
assigned an individual to the Office of Training who is working on a full-time
the developma nt of such material and the conduct of the Office of
courses involving financial subjects. Following is the lecture time,
exclusive of study, test, and critique time, allotted to financial subjects in
courses nemeda
Basic Orientation Course
Operation Support Course
Clandestine Operations Course
Clandestine Services Review Course
Administrative P scedures Course
Management Course
War Planning Course
Administrative Refresher Course
Maritime Course
alusiou
endation No. 27
The" is now in process of preparation M
such issuance to the field and which will also
advioes and project outlines or admin plans be
Time allotted to Budget
and Finance Subjects
1 hours
25 hours
9 hours
9 hours
16 hours
1 hour
1 hour
5 hours
I hour
which will require
directs (a) that initial allotment
forwarded to the field as one
package whenever possible and (b) that copies of pertinent portions of these
documents be madas available to field Finance Officers for attention,
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h this directive will obviate any necessity for making 45-day
allotments. Allotments are issued on a 90-day or quarterly basis at the present
time.
Conclusion and ' mendation No, 18
A system to insure prompt transmittal of field allotment advises has been
instituted beginning with FT 1965 and the system is working successfully in that
allotments for second, third, and fourth quarters will reach field stations by the
30th of September, Slat of December, and Slat of March. First quarter allotments
are issued at the earliest possible moment that funds become available but these
allotments, of course, do not reach the field prior to the beginning of the first
quarter. All stations are advised, however, by cable as to the approved level
operations for the first month or quarter, as the case may
Conclusion and Recommendation No, 20
1956 program and the FT 1957 budget calls to all field stations I LLEG I B
requiring submission of detailed estimates for annual and operating budgets were
issued during the first part of December which allowed sufficient time for,the
field to accomplish the task and return the data in January for compilation by
Divisions and Staffs in time for submission to the PRC. The Letter of Instruction
3
issued to each Senior Representative and each Chief of Station contained the
directive that he shall conduct budget reviews and in certain cases such reviews
rried on,\headquarters representatives visiting the field.
Conclusion and Recommendation No. 21
The Fierce Division has consistently endeavored to have its representative*
personally discuss pay and allowances with agents and contract employees assigned
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overseas. A special desk has been established in
Finance Division for the express purpose of briefing and discussing pay and
all ce problem with contract personnel.
Regulations to the effect tha
of the 25X1
agents going PCS overseas must be briefed and cleared by the Finance Division
should eliminate the majority of problems in this category.
Conclusion and Recommendation No, 22
r way for improving the flow of information to the
field regarding the administration of agents by use of a standard "dat& sheet"
procedure. It is expected that this procedure will help to eliminate confusion
at the field level which has in the past contributed to the problem concerning
:ts to covert agents. In addition, the Finance Division is exploring the
possibility of transferring the administration and payment of agent allowances
d wherever trained finance personnel are assigned, and the cover
status of the agent permits servicing by field stations,
and Recommendation No, 23
question of delay in forwarding travel data sheets to overseas stations.
has recently been carefully studied by the Comptroller's Office and corrective
ill insure submission of the travel data sheets to the
area divisions concerned for pouching to field stations within a maximum of
fifteen working days after the employee departs.
Conclusion and Recommendation No. 24
The Finance Division of the Comptroller's Office has issued a division
operating procedure which formalised its "on the job" training program for
division administrative personnel. This procedure establishes specific
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- or,
responsibility for the various phases of "on the job" training to be given by the
Finance Division and requires the completion of a Trainee Check list at the
completion of training to assure that training appropriate to the assignment has
been given and to provide an evaluation of the aptitude and interest of the trainee.
2, The training given each employee is "tailored" to fit the responsibilities
.s assignment. For example, a typist whose contact with finance matters will
ad to typing travel vouchers, is given "on the Job" experience only in the
Travel Section; an employee, or senior administrative officer, who will have
general, broad responsibility for finance, receives general orientation in pro-
cedures and policies of the Finance Division, and an administrative employee who
will assume full responsibility for control and reporting on use of funds at a
ion, is given intensive, broad training in all phases of finance
bility, with special emphasis on specific problems and procedures of the
tation to which he is being assigned.
Fallowing completion of "on the job" training by an employee, a gran
~5X1A
have indicated that they are pleased with the program.
'ereonnel officer of the Division which has furnished over half the trainees,
given and the evaluation of the employee** apparent ability. to discharge finance
responsibility of the type contemplated. To date, in no instance has an Area
Division indicated dissatisfaction with the "on the Job" training given its
employees by Finance Division. On the contrary, the Chief of Administration and
is directed to the Area Division concerned indicating the scope of the training
fusion and Roca endation go. 28
The Chief, Regulations Control staff has prepared a completed index of all
with a cut-off date as of 1 Larch 1955 which will be
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the Inspector General's recommendation.
but will not be limited to, finance regulatory issuances, will
~5XM identify all
, and will
provide for classifications of issuances by issuance number and alphabetically..
This index is to be released on a semi-annual basis with monthly charges whenever
Therefore, it appears that this procedure complies with
Oacluei
field stations after clearance is obtained from DD/P. This index
and Recom chation No. 27
A long-range, and flexible career plan for Comptroller personnel is being -
developed but cannot be fully implemented until the Agency's Career Program is
further advanced and a selection of those individuals who will comprise the Career
Corps is determined. The Comptroller's Office is proceeding on such selections
in accordance with Agency Regulations. In the meanwhile, the Comptroller is
developing general long-range plans which will be consistent with the Agena:cy Career
Service Program, and he does have realistic plans for the replacement and
rc tion of individual employees between headquarters and overseas stations and the
development and utilization of the talents and skills of all of his employees
through job rotation and training.
Conctluaion and Recommendation No. 28
The Comptroller has arranged for security checks on all U.B. Treasury officials
with which this Agency maintains liaison. A continuous survey and review of CIA
fiscal relationships with Treasury. GAO and other government agencies in being
maintained to confine knowledge of Agency activities on a `pod to know" basis.
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r r
Conclusion and Recoamaendat ion No. 30
_ _ rY~rY-Yy W
Current arrangements for obtaining timely information on foreign exchange
ilities from the operational components of the Agency are considered
In additions, information on this subject is received from many
outside sources. We are constantly striving to increase the sources from which
we can secure additional monetary and foreign exchange data.
Conclusion and Reeoommendaation No. 31
Appropriate action has been initiated by the Comptroller's Office to
implement the recommendations contained in the "Discussion'` section of the
Inspector General's report concerning fiscal management procedures and administration
of the Office of the Comptroller. The DD/S is maintaining a follow-up on these
items to insure that proper action is taken.
LINT
qT-IDVqTUL
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~ aiid,i:fs~
Concur - Joint % LaElamentation Re ired and in Process
25X1A
.delegating and defining fiscal responsibilities and establishing procedures and
criteria for the allotaneer t, accounting, and custody of official funds. We are
Conclusion and Recommendation No. 2
1. A comprehensive set of regulations (see Agency Regulations)
has been released to field stations and Agency Headquarters cemtpc'nents specifically
constantly to impdrve and refine these procedures in the light of
experieexoe. The Survey Team suggested that a directive be released by the DC1
emphasizing the need for additional improvements in the enforcement of fiscal
responsibilities at field stations. Such a directive has been prepared for
this subject in line with -the -"Inspector ral'a roeo zendat on will be drafted.
2. It is noted that the Inspector General recommends that the Comptroller be
live in recommending policies for improving fiscal management and
initiating action to expose inadequate fiscal management. We have attempted to
aaggressiveiy utilize the resources and manpower of the Comptroller*s Office to
financial management in the Agency to the maximum extent possible. It has
been necessary of course to give proper recognition to the problems and prerogatives
of the operating offices which we serve and the opinions of other senior Agency
officials respecting operating factors, which sometimes limit or 11DW the
type of financial controls which may be exercised. For example, the maintenance
of aggressive financial wanagement at overseas# field installations is primarily
dependent upon our ability to assign persons trained in financial management to
these field stations. We have made repeat -j- een trio ewer -a w qua to
for the assignment of Finance Officers to $r `*". rs`eas installations; and t to
eas Finance l has increased
25X 1 A January 1951 and
n 25X1A
camber 1954 is I 25X1 A
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evidence that we have achieved a large measure of success.. However, there are
certain overseas areas where we still do not have Yinance Officers although we
have repeatedly pointed out that financial management and controls are inadequate
at these posts and have requested the assignment of trained Finance Officers. The
ID/P operating divisions agree in principle that Finance Officers should be
assigned to these areas and state that they are endeavoring to overcome the lade:
of appropriate positions and the cover problem. This is only one example of the
type of situation which prevents effective financial management, where aggressiveness
part of the Agency as a whole, rather than just the Comptroller's Office,
is necessary for the Solution of financial management and related problems.
5 A careful review of past aooomplishments and present financial management
objectives will reveal that the Comptroller has taken positive and aggressive
action in the application of financial controls in conformance with Agency policy
and objectives. While the Comptroller must be aggressive indesigning, proposing,
and enforcing financial measures which will counterbalance the spending
proclivities of operating officials, be must cultivate a. breadth of outlook and
a knowledge of the over-all operations and objectives of the Agency which will
recognize the security, clover, and operating factors which eometim*S
limit, qualify, or dictate the type of financial ccatrols which best serve the
Agency
interest. It is our considered opinion, based upon past history an
experience# that an overly aggressive or dictatorial attitude on the part of the
C ptr lier, whereby he attempts to 'oom and" the adoption of financial policies
without due regard to operating problems and prerogatives, would do more harm than
good, We believe that more progressive one enduring results will be obtained by
mutually working together with the operating offices in a manner which will solve
problems involving both operating and budget and finance problems, since these
probl r a 1 en ed and no lasting solution of one is possible
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without a solution of the other.
Conclusion and Reoommendation No. 3
Representatives of the staff's of DD/rP and I /S I va Lo will be)- designated
to review the problems and requirements of projects ,which need blenkest waivers of?
fiscal accounting requir
It is believed that measures can be established
Which will provide at least some minimal financial controls of such projects
without jeopardizing the security and cover of such aotivities.-
lusion and P-00 dation No. 6
The DD/ S and the Office of the Comptroller have felt for some time that
the full potential of program anal Mis. was not being utilized, and this point was
emphasised at the time the Program Analysis Staff was established in
We believe that a comprehensive system of program analysis
requires the integration and combination of quantitative data which can be
compiled by the Comptroller's Office with the qualitative data which should be
oonpiled by the Operating offices.
establiebment of a program for the analysis of activities-financial
v.*.-on an Agency-wide basis has the unqualified support of this Office.
We are more then willies, to asgist in any program for the integration of the
financial and statistical analyzes with the operational analyses of Agency
aubstentive operations so that an effective Program Analysis may be instituted
145
cluaion and Recommendation N.
A d.tailed study concerning the use of allotment advices as a control of
property purchases and issues is now being conducted. This question involves
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basic policy issues pertaining to the establishment of logistics requir ents&
the maintenance of stock levels, and an integrated reporting system on budgetary,,
d logistics activities. It in expected that a completed staff study,
containing appropriate recommendations for remedial action, will be completed
Conclusion and Recommendation No. 14
The necessity for and advantages of handling of Fl projects on a fiscal year
basis ispreoogniaed by the PI Staff and that Staff has in conjunction with the
Comptroller's Office drafted procedures placing all of its projects on a fiscal
year basis. However, no attention has#-been given to the problem of further grouping
of small FI projects so that PI group allotments can be made to each field station.
Further work on this problem is not contemplated until certain problem in
connection with the integration of FI planning and the budget can be completed.
Conclusion and Recommendation No
The Comptroller'. Office keeps the DDft operating components apprised on a
current basis of the need for professional finance personnel at overseas stations,
ties are filled on a priority basis, except in those instances where cover or
security conditions are such that assignments must be delayed pending the
availability of cover positions.
Conclusion and Recommendation No, 25
25X1A dated 4 June 1953, which gives the Comptroller action responsibility
on all non-operational type finance communications, has proved to be only partially
effective. Generally, cables are properly identified for action by the Office of
the Comptroller; however, dispatches are often delayed in receipt or transmission,
This problem could be overcome by the release of the revised. Clandestine Services
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 25X1A
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