AUDIT REPORT - PROJECT MKULTRA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A000100220078-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: April 11, 2000
• Sequence Number: 78
• Publication Date: April 5, 1954
• Content Type: MF

Approved For Release 2002/05/01 : CIA-RDP78fi+C118A000100220078-3
25X1A
25X1A
5 April 1954
6)
GZL
1. The attached Audit Report rentals that the project has
been administered in general compliance with the requirements
stipulated in the Director's approval.
2. The =mate of $1,021.75 and $4401.23 brought out in
Paragraphs 12 and 13 (Items 1 and 2) did not to be properly
accounted for. I discussed these itsee with to
at grant
length, and the following additional information is submitted:
A. $1,021.75 -
This amount represents sspenditurn not properly accounted
for. Periodically the individual at the project site (an employee
obtained cash from his official bank 25X1 C
account by awing checks. ens cash was spent for various adtmn
istratiw, housekeeping and other official pnwase. Over 150
cash memoranda were submitted to in- the rem of salsa
slips, cash register slips and notations signed by the individual
that sums 'mre spent. These numerous cash amsoranda wars listed
by II and applied to the total cash he received. At the
tires of the audit therm vas no cash on band, cad, accordingly, C
D had to assume that all of the cash bad bean spent, though
the cash memoranda did not equal the cash be had received. There
tams no record maintained of mash exper8iiturss, so that the dis-
bursements soda for thick no receipts were obtainable appears to
cause the unaccounted for balances. The individual bas bean in-
structed by T8B to keep a cosgrlete record of all such payments and
submit a detailed listing In the future to TOO, shoring the amounts,
pass, and purpose of all cash disbursements., and supported by
documentation vhsn available. I do not believe it will serve say
useful pugpoas to pursue this item any further, since the deficiency
vas due In great part to inadequate instructions to the individual
by TBS. 0 is satisfied that proper instructions have now
been given and there vill be no recurrence of this type of accounting
deficiency.
1. $1,401.23 -
The Audit Report is not clear on exactly abet the deficiency
was on this amount. These funds me fully accounted for, evidence
 of payment existing in the form of cancelled checks, and an itemiza-
tion of each a penditurs was reodered by the accountable individual.
The ^ajor deficiency is in the lack of receipts and detailed explana-
tions of the purpose of the expenditures. However, the sketchy
explanations contained in the itemisation of expenditures was suffi-
cient for 0 audit and, altboufl documentation should bats
been obtained, the cancelled checks appear to be adequate support
in proof of all payments.
3. Z do not roecwsnd any further action be takes by you, since:
a. The project is of an extremely sensitive nature.
b. The individual is not usdsr the direct control
of this Agency.
c. Inadsquate accounting instructions have been
corrected and it is believed that past deficiencies will
not reoccur.