(Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01240A000100140055-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 9, 2016
• Document Release Date: July 24, 2000
• Sequence Number: 55
• Publication Date: June 28, 1962
• Content Type: LETTER

Approved For Release 2001/09/04: CIA-RDP80-01240A000100140055-7
CIVIL ACCOUNTING AND
AUDITING DIVISION
UNITED STATES GENERAL ACCOUNTING OFFICE
WASHINGTON 25, D.C.
Deputy Comptroler, CIA
Subject;
Reference is made to your letter dated March 1+, 1962, to
the Director, Civil Accounting and Auditing Division on the
subject contract. As requested by you, our New York Regional
Office audit staff ceased pursuing their examinations into the
details of cost under the subject contract on or about
March 9, 1.962. Prior to this date, however, preliminar in-
formation had been developed which indicates that may
25X1A summarized below information obtained from contractor's records
shows that profits may have been as high as 57 percent
of cost rather than the estimated 10 percent of cost used in
contract negotiations.
Ested Actual
Cost
Prof i t
Contract price
Ratio of profit to cost
Our staff was advised by a Mthat late
billings might add a few hundred o Wars o the actual costs
set forth above.
The limitations on the GAO audits of CIA activities preclude
us from any examinations into this contract because it is fin-
anced from unvouchered funds, and therefore the matter is re-
ferred to you in accordance with our telephone conversation
today, so that the Agency may make appropriate foilow-up.
We would appreciate being advised of any actions you might
take on this matter.
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E. L. Pahl
Supervisory Accountant