MISAPPROPRIATION AND MISUSE OF FUNDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05747A000200070003-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: May 22, 2001
• Sequence Number: 3
• Content Type: DISP

1. I am disturbed by the number of cases involving misappropriation
or other misuse of funds which have come to my attention, and by the lack
of proper control of public funds which is apparent in many of them. It
is clear to me that most of these unfortunate incidents could have been
prev'toted or at least detected more quickly had supervisory personnel and
approving officers been more alert to their responsibilities. A listing
of some of these cases is attached for your personal information.
2. I would like to emphasize the responsibility which each of you,
as a Chief of Station or Base, has for safeguarding funds and ensuring
that they are used only for authorized purposes. The proper administra-
tion of funds is a function of command. It is a fundamental duty; one
which must be considered seriously and performed carefully. You are
responsible for assuring that adequate facilities are provided for the
maximum safekeeping and contrpl of funds; you are responsible for seeing
that sufficient records are maintained at the station to provide all
necessary information for proper accounting and reporting for funds; you
are responsible for ensuring that expenditures, advances, claims, vouchers
are not approved perfuxictorily but only after you have fully considered
them and satisfied yourself as to their necessity, propriety, truth and
accuracy. You, and you alone, as Chief of Station or Base, are the
approving officer for all financial documents, and all transactions
involving the advance or expenditure of funds. Although you may, if
necessary, in your discretion designate personnel in a senior supervisory
r!apacity to authorize individual disbursements, vouchers and accountings
Involving their specific functional areas of responsibility, your own
responsibility is not thereby diminished. Authorizations by such
designees are subject to your approval of the monthly accounting.
Moreover, you should continually assure yourself that, in their
authorization of transactions, any such designees are acting in a
careful, conscientious manner on your behalf, and in fulL compliance
with Organization regulations.
 Approved For Releas 2001/07/30 : C
3. I enjoin you to display a constant curios concern
regarding the handling of funds. Our financial administration must be
of the highest order, and we must not invite dishonesty by laxity in
our control of funds. You must keep yourselves continually aware of your
responsibilities ss custodians of public funds, and be alert, objective,
and conscientious in compliance with established procedures for their
safeguarding. In so doing, you will prevent or keep to a minimum
instance% of misappropriation or misuse of funds. You will also be
instrumental in preventing the harm vhich the individuals concerned do
to themselves and their families since termination and perhaps imprisonment
follow when dishonesty is detected.
4. In order that I may be alerted at the earliest practical date
of misappropriation and misuse eases, please see that a cable report of
any such case is furnished immediately. The cable report should not be
held pending completion of your.' investigation necessary to a full report.
Although you are rVaponsible for furnishing a complete report, in some
instances it may be necessary that representatives of the Inspector
General (Inspection and Audit Staffs) make a detailed investigation. at
the station or base concerned.
5. I am sure I can expect your full cooperation in this matter.
Attachment