TERMINATION OF SERVICE AGREEMENT UNDER WHICH CIA ASSUMED FOR NATIONAL SECURITY COUNCIL (NSC) CERTAIN ACCOUNTING AND RELATED FUNCTIONS.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01240A000100140066-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: July 24, 2000
• Sequence Number: 66
• Publication Date: June 5, 1961
• Content Type: MEMO

Approved For Release 2001/09/04: CIA-RDP80-01240A000100140066-5
June 5, 1961
Subject: Termination of service agreement under which CIA
assumed for l ational :security Council (N3C) certain
accounting and relfited functions.
tj'M Is na fb tio$ fe deafest
P .M.1810* xh:o~mef n of CIA
At the request of the CIS Comptroller, Messrs Keithline and Williams,
GAO, met with the comptroller and. with , Sleoial Assistant to the
Comptroller, at 1:00 F on June 5, 1961,
stated that ii service agreement with the 1.SC, under which CIA
has for a number of years erformed certain accounting end_ disbursing functions
with respect to funds arpropria.ted to the NSC, was to be terminated effective
June 30, 1961. - further stated that under a proposed arrangement
worked out between CIA and NSC, it was contemplated that RISC would assume full
responsibility with respect to accounting for and disba.rsing funds appropriated
to NSC for fiscal year 196 and subsequent fiscal years, and that CIA would
continue to l rocess ex1 enditsares and maintain all fiscal documents and records
pertaining to fiscal year 1961 and prior fiscal year app opriations of NSG
until the appropriations lapsed? ants the records were disj-osed of,
The CIA Comptroller stated that he would prefer to i-elieve CIA of all
responsibility with respect to the I'30 funds but that he had certain reser-
vations regarding the administrative feasibility of transferring to PJSC
at this time full responsibility for both the fiscal year 196.: and the
prior year appropriations. He asked., therefore, whether,GAO would have any
objection to the arrangement proposed oy
Messrs Pahl and,,,.eithline, GAO, discussed the arrangement proposed by
with [?1r, S. H. Savage, txAO Accounting; and Auaiting Policy Staff.
He advised that the arranger;.ent arrearea to oe an administrative rather than
a. policy matter, since there is no specific realignment o` functions l ursuant
to legislation or e.,ecutive order, and that an objection 2)y GAO, therefore,
would not be pertinent at this time, Mr. Savage stated, however, that the
proposed oivision of resi,onsibil.ity with respect to accounting for fiscal
year 1962 and. prior year appropriations is not a normal practice and may
present certain administrative problems, He suggested, therefore, that CIA
be advised to clear the procedure with the Bureau of the budget if it has
not already done so. Mr. Savage also su4gested that the matter be discussed
with the GAO Program ana Review Staff to ascertain whether GAO has been
ref-uested to assist the NSt; in establishing its accounting system.
In answer to Mr. Keithline's inquiry, Mr. W.N. Rowell of the Program
and. Review Staff stated that assistance had. been requested by ISC and that
Mr. A. Cromwell, a member of the program and tdeview Staff, had been assigned
to assist MSC, Mr. Howell stated that as of June 5, 1961, however, Hr.
Cromwell has been unsuccessful in obtaining from NSC a definite commitment
for a ineeting with ar?rro-i riate NSC personnel, ReM ffe. _._ ~.`
Review of Rids d recheet by RiA has
defermtnid that
 Approved For Release 2001/09/04: CIA-RDP80-0124OA000100140066-5
The above information was ; assed on to - who stated that he
would suggest the CIA Comptroller go forward with the Troposed arrangement,
with the understanding that MSC could and would. assume at some future date
the responsibility for processi tg exx.enditures and maintaining all fiscal
documents and records pertaining to the fiscal year 1961 and prior fiscal
year apx ropriations to NSC.
S. J. eithline
Supervisory Accountant
Approved For Release 2001/09/04: CIA-RDP80-0124OA000100140066-5