(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01240A000100140065-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: July 24, 2000
• Sequence Number: 65
• Publication Date: June 21, 1961
• Content Type: MEMO

Approved For Release 2001/09/04: CIA-RDP80-0124OA000100140065-6
UNITED STATES GENERAL ACCOUNTING OFFICE
WASHINGTON 25, D. C.
0qr41f~ June 2-, 1961
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ITI? DIVISION +V" trfftilist 04AJ
4 c~hiyi~s E oVNOMA it 0A ,
MEMORANDUM TO THE FILES In%tr. T Ik
A. T. Samuelson, Dir `cwt,-tA7ll,TM."' `""met with
Central Intelligence Agency Support officials at 2:30 p.m. on
June 13, 1961, .`or the purpose of discussing further reviews of
CIA activities by the General Accountin Office. Colonel L. K. White,
Deputy Director (Support), and , Deputy Comptroller, 25X1A
represented CIA in the meeting. The following summarizes the matters
discussed.
Colonel White advised that the letter from the Director of
Central Intelligence to the Comptroller General, dated Junn 7, 1961,
did not contemplate any preliminary meetings between officials of
CIA, GAO, and the Kilday Subcommittee. It did contemplate, however,
that CIA would be available for any meetings with GAO officials that
would be helpful in fully developing any audit matters prior to the
further consideration by the Subcommittee of the GAO limited audit of
CIA activities.
Mr. Samuelson stated that our plans for further reviews of CIA
activities have not been finalized, but we presently plan to continue
reviews of Intelligence Component activities with the staff presently
assigned. We do not presently plan to undertake reviews of Support
activities, because the limitations on our work there do not permit
effective evaluations of these activities.
Colonel White suggested that we might want to consider reviews of
the Offices of Research and Reports (ORR), Scientific Intelligence
(0SI), and Current Intelligence (0CI), in our plans. He indicated
that there should be no access problems in the review of ORR activi-
ties. In OSI, and OCI, however, he stated that there might be some
areas where we would have access problems, but that, in his opinion,
these problems should not preclude us from making effective reviews
and evaluations. Mr. Pahl stated that ORR was under consideration
for review as a logical follow through of our reviews of the Office
of Operations and the Office of Central Reference. He stated also
that we have been considering a review of OSI, because of the sub-
stantial expenditures by OSI under vouchered funds research and
development contracts, in fiscal year 1960, but that fiscal year 1961
expenditures by OSI for contractual services has been relatively
small. Colonel White stated OSI had entered into vouchered funds
research and development contracts prior to fiscal year 1961 that
led into very sensitive covert activities. Subsequent to the change
Approved For Release 2001/09/04: CIA-RDP80-0124OA000100140065-6
 Approved For Release 2001/09/04: CIA-RDP80-01240A000100140065-6
of scope of the GAO audit of CIA activities, however, OCI has classified
such contracts for financing from unvouchered funds. Colonel White
further stated that where such contracts involved covert operations,
GAO would not be permitted to go behind the financial and contractual
documents regardless of funds classifications.
Colonel White suggested also, that we might want to consider the
review of transactions paid from vouchered funds that are chargeable
to confidential funds allotments (137 account transactions). Mr. Samuel-
son, advised that we had this-under consideration, but that such an audit
would be limited to a compliance review, because we would be precluded
from a review of the related operations and, therefore, would not lead
to the evaluation of the effectiveness, efficiency, or economy of the
operations involved.
Colonel White stated that he could not change the ground rules
limiting our audit of CIA activities, but that he would welcome any
suggestions from us concerning areas where it appeared that agency
personnel or methods did not appear to permit the access contemplated
under the-limitations established by the Director of Central Intelli-
gence.
Mr. Samuelson stated that although the limitations on our work
generally precluded us from making effective evaluations of CIA
activities, we were not suggesting that CIA change its organizations
or methods in order to permit audits to be performed.
E. L. Pahl
Supervisory Accountant
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Approved For Release 2001/09/04: (M-RQ-,Q,124