ACCOUNTING FOR CONFIDENTIAL FUNDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A001900290006-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: June 18, 2001
• Sequence Number: 6
• Publication Date: May 14, 1956
• Content Type: MEMO

Approved For Release 2001/08/07: CIA`-RDP78-04718AO01900290006-6 (r~
TO Comptroller
FROM L)hie;, Finance Division
SUBJECT: Accounting for Confidential Funds
DATE 14 2 1956
1. In the administration of accounting requirements and controls,
confusion occasionally arises because there is no clear definition of
nnormal Agency accounting requirements". This problem arises not because
of lack of understanding and agreement with respect to the substance of
accountings but rather with respect to depth to which detailed documenta-
tion is required.
2. 'T'here seems to be little basis for objection to the principle
that detailed documentation of the use of funds (i.e., the who, what,
when, where and why) is normally required as long as the funds remain in
control of persons or projects under Agency control. Conversely, there
can be little quarrel with the principle that it is unrealistic and
impractical to endeavor to insist upon detail documentation of the use
of funds from persons or activities not controlled by this Agency.
3. While the above stated policies represent accepted operational
as well as sound accounting and funds control, in the absence of clear
determinations as to the point at which funds pass from Agency control
it is often difficult, if not impossible, to clearly establish whether
normal Agency accounting requirements :,,ave or have not been satisfied.
As a result, accounting requirements as set forth in many Administrative
Plans or as interpreted by Certifying Officers and others, have tended
to reach further and further beyond tie point where realistic control
and proper documentation can be expected. On the other hand, Case Officers
and other operational personnel, not having a clear concept or guide as to
what constitutes acceptable accounting documentation and policy, tend to
agree tc whatever requirements are suggested, even though in substance the
requirements may be unrealistic and may not truly reflect operational
circumstances and relationships.
4. In recent discussions with representatives of operational elements,
?.t was proposed that approved project outlines be utilized to establish
agency-project relationships for the purpose of fixing the point where
funds are passed beyond effective detail control. It was further proposed
that project procedures be revised to provide that Case Officers would
required to develop the financial aspects (other than budgetary) i:.
coordination with the ,';ertif-.ink; Officer in order that the project outline
may reflect accountir., requirements determined by the Certifyint O icer
Is conformin` with normal accounting; conc,eWts as defined aboveA010 practical
Approved For Releas' 01/08/07 ,;,
P78-04718A001900290006-6
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