AUDIT OF SPECIAL FUNDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00709R000400070024-6
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: June 6, 2001
• Sequence Number: 24
• Publication Date: April 4, 1947
• Content Type: MF

Approved For Release 2001/09/03 : CIA-RDP84-00709R000400070024-6
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Approved For Release 2001/09/03 : CIA-RDP84-00709R000400070024-6
Approved Wkelease 2001/09/03 : CIA-RDP84-00709000070024-6
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SUbjecti Audit cr :pscial pmnde C
1. ,As return hoTeitith memorandum of 10 kArch 19,(1
from the x/w4LIVi, for A. *nit tho drart weraorantitin or 19
eiLreb 1)47 Irom the ciAcro gmoial Funds, with our comments.
me, audit .flf :tpeclal :onAo does to tne heart or WA, *lois uno,
vouchored unde problem, snd eeannli attempt briorly to stets
c?4Lr. analysis.
S. e cannot state too IstroAga/ our opinion tit,
unvoiaahore),i fAnds nava unllm OrtOtUS in our 40tornagealt11s
tumlt of %litooutive Acsneloa or* subloct tm the complotay
Andependont ^Alt by t%m Tene7al Accounting 011100.1 ConArov;
kls seen fit by law to relives 1A0 of thls function *n$ Oatoo
sntive an,thfly upon Vle head of the department concePnod.
can,lrassioncl hearin4se the r!otoptroner levoralts decisions and
own .!itonds bh*ft conalatoritill 11i Met this relmOisibility
esr,not he 144a,2.attlia*Th irecto7 may estnblish daritrOlg
1),nlish controls in 41,4 diacrittieflo but hi nay not divest
_Impalf 01 rwesnelhility tor the proper, dE44urssmont of
Mix unlriAlia stator). tkereiCore. neistiSearllf tfikeo
Lho .440elnl iunds problem cat or normal cossical and gamin etre=
ti ve eitanntle, itsx1 renders the Urostorte appointee kor dont:eta
Ipeols1 eurvic directly rtsponsiblii to the :4recter,
spoolal chAnuol in tvrn necessarily separates 4poolal Ptadt
ilium all vocb*red runi14) inc Char Administration. In *Ur
inion, It is proper thct thlo s*Daration be kept eompltite,
dOt 14.0 tjc coutUsion as to thtt glands and thii methods Olt
mancrainas NW1 to preserve tbs eso4irity Ossontiel to 4p0010.
Ammig operation, A. feel that all 0010r01 or the !'cresomiel
and dolnistratIon VranoL oror unIouohorod tunds *eases sod
should mosso qpon Oudot aNlociitlon rri2m bsSio appropriations
to this 3paelea Anode i-A-anah, 111 otcordicaos tint the decisLirns
of %he millets Review com'Atteci Thia ovisation of' control,
or opqraap In nO *ay *troate the routtno extbarastvoilon 4, nit
of personnel s:thin tho 5pecia3 Yunds nrimou
ThAr is no question a* to doetrability
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en auditor eeje1 /undo,. It lo necessary to maintain tbit truo0
Approved For Release 2001/09/03 : CIA-RDP84-00709R000400070024-6
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Approved Fo. -elease 2001/09/03 : CIA-RDP84-00709R0 00700
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4 April 1947
.cr Amrreas and 140 in t49 tolitrol of unvoushsred-exper.diturepi.
as a protection ror those disbursing officers who mi0ht incur
pacr4onal liability by impropcer eApendltvres ands vost .isepOrt4ntig
tor the 7.).Yttect1On or the Direotor. An independent atadit is
patently Lospostliblep nude oinea the molar to audit nomossarlly
Involves thn suditirc oftico in ths operations of th, *Moe
audIted, se believe that or should rot to given to tries MI
branch. In our opinion, it ia ti a oonclusion that
trie auiLturm swat be specifically nods respOnsible to the ?
-Aro/clamp sma0, render teir riciAtino reklefortg W htill office, loud-
must ncve a4thoritx te approaelo hin dIrestly on kny point tivily
believe reopaires his attention', ?hey aholabi not be put un4or
tne ventral or ano Assistant DIrestorip sr *X the 4xeloutiv,s f4tr
Personusl aad 4dninistration, all or Whelk WIWO KillrOU certain
mutnoritise to commit MpeelaX tumta by CIO megu1stiona. :Woolly&
the auditors should be m part of the Direnterve orrloo, and aot
in Is name. It is our understanding that it Is desired not -to
attach additional )ersenuel to that office. Is vie's of t410
desire, es cellos* the seaa_purpose_taa b. .aehloved bi placing
the auditor, in 5pecial kunds ror TO and normal administrativo
W*rsea a., UOMbOre Or Whill Starr or %he culla of Ppeclal Fun4s,
and viith the &boy...mentioned written aaiihority.te have arse%
assocs to the Areetorls ?Mom' Ws aftknowledge that this
proposal Is an exosotion to normal admtnistrative shannelm,
o4t 114 feel that this Is neeeastry in Ades of the .tonlqus sitluty
tion crestvd j ststots1 snd that it would f4Ifill the legal.
requires:I-luta :n.o:. atftey CM be clot without intepandent
r..utside audit.
cos Director's Offise
A:150
TAOS.
for P&A
Chief, 811,6141 Funds
-Prmirmnrin7.77,717--,
Nik.oge re 1 1! elm"
Approved For Release 2001/09/03 : CIA-RDP84-00709R000400070024-6
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