MISAPPROPRIATION AND MISUSE OF FUNDS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04914A000200140001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: February 14, 2003
• Sequence Number: 1
• Content Type: DISP

Misappropriation and Misuse of Funds
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
prevented 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 control 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 perfunctorily 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
lavo_.ving the advance or expenditure of funds. Although you may, if
necessary., in your discretion designate personnel in a senior supervisory
capacity to authorize individual disbursements, vouchers and accountings
involving their specific functional areas of responsibility, your own
-esponsibility is not thereby diminished. Authorizations by such
,eeignees are subject to your approval of the monthly accounting.
~areover?, 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 Organiz*tion replations.
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ou to display a constant cunrios(ty and concern
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3. I enjo
regarding the handling of funds. our financial administration wart be
rdar and we otust not invite dishonesty by Utty in
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our control of funds. You must keep yourselves continually ads of, your
responsibilities as custodians of public funds, and be alert, -objective,
and conscientious in co p):iewe with established procedures for their
safeguarding. In so doing, you vill prevent or keep to a minimum
instances of misappropriation or misuse of funds. You will also.be
inst umental in preventing the barn Which the individuals concerned do
to themselves and their families since termination and perhaps imprisonment
follow vbm dishonesty to. detected.
4. In order that I may be alerted at the earliest practical date
of misappropriation and misuse cases, 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 responsible for furnishing 4 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 as sure I can expect your full cooperation in this matter.
I
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