CENTRAL INTELLIGENCE AGENCY AUDIT -- JUNE 20, 1962, MEETING WITH MR. ROBERT W. SMART OF THE HOUSE ARMED SERVICES COMMITTEE STAFF

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01240A000100140057-5
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: July 24, 2000
• Sequence Number: 57
• Publication Date: June 22, 1962
• Content Type: MF

Approved For Release 2001/09/04: CIA-RDP80-0124OA000100140057-5
UNITED STATES GENERAL ACCOUNTING OFFICE
WASHINGTON 25, D. C.
CIVIL ACCOUNTING AND
AUDITING DIVISION
YEANORANDUM TO THE FILES
Subject: Central Intelligence Agency audit--
June 20, 1962, meeting with Mr- Robert W.
Smart of the House Armed Services Committee
staff
Messrs. A. T. Samuelson, Director, CAAD, and E. L. Pahl, met
with Mr. Robert W. Smart (Room 313, Old House Office Building) to
discuss the General Accounting Office's limited audit of the
activities of the Central Intelligence Agency. The discussions
are summarized below.
Mr. Samuelson stated that subsequent to the exchange of
correspondence in May 1961 between the Comptroller General and
Chairman Vinson, of the House Armed Services Committee, the GAO
audit staff had continued to review those activities of the
Intelligence Component of CIA to which we are permitted access.
Reviews now have been completed in all organizational units of the
Intelligence Component excepting the photographic unit to which we
have no access whatsoever and the current unit which is an extremely
sensitive operation. On the basis of our reviews of the Intelligence
Component and of previous reviews of the administrative activities
to which we are permitted access be in the Support Component, it is
our opinion that, under the limitations on our audit, we cannot make
an effective audit contribution to the Congress on a continuing
basis that would be commensurate with the effort involved. This
opinion is based on the following factors: (1) we have had no access
whatsoever to the Plans Component, (2) the administrative activities
performed in the Support Component in support of both sensitive and
nonsensitive operations are so intermingled that we do not have
sufficient access to these administrative activities, including
internal review mechanisms, to evaluate them, and (3) the activities
of the Intelligence Component are of such a nature that they are not
readily susceptible to audit evaluation. Accordingly, we believe
that the limited audit of CIA activities should be discontinued until
such time as it is feasible to permit GAO sufficient access to make
reasonably comprehensive audits.
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Mr. Smart stated that Mr. Vinson had taken over the chairmanship
of the House Subcommittee on CIA vacated by Mr. Paul J. Kild*y, that
the Subcommittee meets periodically with Mr.. McCone and other CIA
officials, and that the Subcommittee might be interested in resolving
the audit problem existing between GAO and CIA. He stated the opinion
that this problem was significant because it involved two Gdvernment
agencies each of which are attempting to effectively carry ouj-a very
important mission. He advised that the Subcommittee was meeting with
CIA officials on the morning of Friday, June 22, 1962, and that this
meeting might be an opportune time to consider the problem if the
Comptroller General could get an appropriate letter to Mr. Vinson
before this meeting took place.' Mr. Smart suggested that the letter
set forth the status of our audit and that it set forth as specifically
as possible the access to CIA activities that would be necessary to
permit GAO to perform a reasonably effective audit.
Mr. Samuelson advised Mr. Smart that he had discussed with
Mr Bross, Comptroller of CIA, the propoeal to discontinu* our limited
audits of CIA Mr Samuelson also advised Mr. Smart theta meeting
with Mr. McCone had been planned in view of a May 17, 1961, letter
from Mr. Dulles, former Director of :IA, which letter requested an
opportunity to further discuss the audits before decision is reached
to entirely discontinue the audits. However, GAO officials were
advised by CIA officials that Mr. McCone was briefed on the matter
and was fully cognizant of the limitations on and the problems in-
volved in the audit, and, therefore, the planned meeting with Mr. McCone
was not held.
Note 1 A letter, B-133200, dated June 21, 1:962, from the
Comptroller General to Honorable Carl Vinson,
Chairman, Armed Services Committee, House cif Repre-
sentatives, was personally delivered to Mr. Robert W.
Smart in doom 313, Old House Office Building, at
2:40 p.m., June 21, 1962.
E. L. Pahl
Supervisory Accountant
Approved For Release 2001/09/04: CIA-RDP80-01240A000100140057-5