(EST PUB DATE) SEMIANNUAL REPORT

• Document Type: FOIA
• Keywords: INSPECTOR GENERAL
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 0001311509
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 75
• Document Creation Date: June 24, 2015
• Document Release Date: April 14, 2011
• Case Number: F-2007-00194
• Publication Date: June 1, 2003

Central Intelligence Agency
Inspector General
SEMIANNUAL REPORT
TO THE DIRECTOR OF CENTRAL INTELLIGENCE
JANUARY - JUNE 2003
APPROVED FOR RELEASE DATE:
25-Feb-2010
John L. Helgerson
Inspector General
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TABLE OF CONTENTS
PAGE
(U) A MESSAGE FROM THE INSPECTOR GENERAL 1
(U) STATUTORY REQUIREMENTS 5
(U) AUDITS 7
(U) AUDIT STAFF OVERVIEW 7
(U) SIGNIFICANT COMPLETED AUDITS 7
(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS
OUTSTANDING FROM PREVIOUS SEMIANNUAL REPORTS 14
(U) SUMMARIES OF SELECTED CURRENT AUDITS 28
(U) INSPECTIONS 31
(U) INSPECTION STAFF OVERVIEW 31
(U) SIGNIFICANT COMPLETED INSPECTIONS 32
(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS
OUTSTANDING FROM PREVIOUS SEMIANNUAL REPORTS 40
(U) SUMMARIES OF SELECTED CURRENT INSPECTIONS 46
(U) INVESTIGATIONS 51
(U) INVESTIGATIONS STAFF OVERVIEW 51
(U) SIGNIFICANT COMPLETED INVESTIGATIONS 52
(U) STATUS OF SIGNIFICANT RECOMMENDED ACTIONS
OUTSTANDING FROM PREVIOUS SEMIANNUAL REPORTS 55
(U) SUMMARIES OF SELECTED CURRENT INVESTIGATIONS 57
(U) SPECIAL REVIEWS 61
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(U) ANNEX SECTION
(U) STATISTICAL OVERVIEW
(U) COMPLETED AUDITS
(U) CURRENT AUDITS
(U) COMPLETED INSPECTIONS
(U) CURRENT INSPECTIONS
(U) COMPLETED INVESTIGATIONS
(U) CURRENT INVESTIGATIONS
SECRET /
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(U) A Message from the
Inspector General
The heightened pace of Agency
operational, analytical, and support activity over
the past two years is having an increasing impact
on the pace and focus of work undertaken by the
Office of Inspector General (OIG). A significant
proportion of our workforce?sometimes operating
in teams drawn from all three Office staffs?is now
involved with projects that relate in one way or
another to the Agency's efforts on terrorism,
Afghanistan, and Iraq. Not surprisingly, these
priority missions have taxed all of the Agency
capabilities on which the OIG has been concentrating in its 2003 workplan.
These include covert action and other operations, as well as information,
communications, financial, procurement, and logistic support systems.
Inspection Staff has taken the lead in responding to two
Congressionally directed reviews. The more involved of these is the special
review of accountability issues regarding the Agency's handling of
developments related to the events of 9/11. The second is a review of Agency
actions concerning the reported effort by Iraq to secure uranium from Niger.
Work on both these projects is well underway. During this period, the Staff
completed inspections of two components that have contributed heavily and
successfully to the Agency's intensified operations:
Other major inspections
completed included those of the East Asia and Africa Divisions, both of
which have redirected their efforts to focus on terrorism, and of the Agency's
counterintelligence and counterespionage programs.
(LI) Audit Staff has continued its series of audits of covert action
programs, challenged by the increasing number and scope of such programs
but committed to look at each program, or one major aspect of each, no less
frequently than every third year. In addition, the Staff has undertaken a
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number of financial audits, almost all designed to help the Agency and the
OIG prepare for the Congressionally required audit of Agency financial
statements beginning with FY 2004. In the information technology area,
our audits have addressed the survivability and security from intrusion of
the Agency's systems. These audits provide a baseline of information that
will be of use in our upcoming independent audit of the Agency's
information security program and practices required by the Federal
Information Security Management Act (FISMA).
Investigations Staff is leading special reviews to determine
whether appropriate guidance was provided to field personnel in the
performance of their duties overseas in the aftermath of 9/11. An
investigation is also underway regarding the circumstances surrounding an
overseas training exercise in which a staff officer was killed. During this
period, the OIG received and forwarded to the DCI and the Congress a
"whistleblower" complaint related to alleged retaliation, which is under
investigation. The Staff continues to devote substantial resources to a joint
investigation with the Department of Justice
in a
longstanding case that has concluded, a former Agency officer was convicted
and sentenced to a 15-month prison term for accepting illegal gratuities
from a contractor. Finally, proactive anti-fraud efforts by the Staff have
identified misconduct and illegal activities associated with the receipt of
compensation payments.
Interagency efforts completed or underway during this period
include the previously mentioned project on Iraq and Niger, which is being
pursued with the Department of State. Also with State, we are concluding
one audit of the
With the Department of Defense OIG, we are co-chairing a
multi-agency peer review of the National Reconnaissance Office (NRO)
OIG. The Intelligence Community (IC) IG Forum is preparing for a
multi-agency review of the National HUMINT Requirements Tasking
Center. During this period, an inter-agency team completed and published
the audit of Federal export enforcement efforts.
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(U) In May 2003, the CIA and NRO IGs hosted the ninth annual IC
Audit Conference, attended by nearly 200 auditors from across the
Community. Speakers from the General Accounting Office, Department of
Homeland Security, and the Terrorist Threat Integration Center provided
unique insights into the challenges faced by the IC in meeting the nation's
security requirements.
(U) In addition to our substantive work, we continue efforts to
improve our management and operations. The OIG is working with senior
Agency management to formulate a multi-year budget that will ensure OIG
resources are sufficient to meet the Office's commitments to the DCI and the
Congress. Our rigorous effort to hire new auditors is continuing. All three
staffs have completed reviews of their production processes to enable us to
produce our reports in as expeditious a manner as possible. We are in the
midst of an office-wide upward feedback program to strengthen management
and leadership. Other efforts by individual staffs have improved our
oversight of the Agency's grievance process and our ability to track and
pursue compliance with outstanding OIG recommendations by Agency
components.
(U) We have no new legislative proposals. We understand action is
underway in the Congress to implement a technical correction to the
Homeland Security Act, as we requested in our last semiannual report. This
action will resolve any ambiguity about the role of the CIA IG in performing
independent evaluations of information security programs and practices,
making clear that the CIA's statutory IG has the same responsibilities under
the FISMA as do statutory IGs appointed under the 1978 IG Act.
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15 July 2003
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