DEAR MR. CHAIRMAN:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64B00346R000300380006-6
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 15, 2016
• Document Release Date: January 2, 2004
• Sequence Number: 6
• Publication Date: June 21, 1962
• Content Type: LETTER

Approved For Release 2004/02/03 : CIA-RDP64B00346R000300380006-6
COMPTROLLM gam, c ma utui 5TATQ
wme+OasroNa
Sonorable Carl Vinson, Chairman
Committee on Armed Services
House of Representatives
r in
JUN 2. 1 1962
By letter dated May 16, 1961, to Honorable Paul J. Rilday,
Chairman, special Subcommittee, Central Intelligence Agency,
Committee on Armed Services, House of Representatives, we reported
upon our review of selected activities of Central Intelligence
Agency (CIA) for the purpose of determining whether the scope of
the audit of the General Accounting Office could be expanded
sufficiently to make reasonably comprehensive evaluations of CIA
activities. In this letter we stated that under the existing
security restrictions on our audit of CIA activities we did not
have sufficient access to sake comprehensive reviews an a eestiuat?-
ing basis that would be productive of evaluations helpful to the
Congress and that we planned to discontinue the w ark.
Your letter to us dated May 18, 1961, recommended that the
audit not be discontinued at that time and accordingly we have
contiumd our work at CIA despite the severe linitatioas placed
upon us. Our further reviews, confined wholly to certain units
in the Intelligence Component, have net resulted in any chsags is
our views that under existing security restrictions on Our audit
of CIA activities we do sot have sufficient access to effectively
accomplish any worthwhile audit objectives at CIA an a continuing
basis. We are submitting this letter so that you may consider
further our views as this matter at this time.
The limitations placed upon our audit activities at CIA are
severe. Following several meetings with the Director, Central
Intelligence Agency, and members of his staff, we exchanged
correspondence in October 1959. which in essence recognized that es
audit of CIA would have to be limited to reviews outside the areas
of sensitive security operations one
(1) Dapessditures certified by the Director under
Section 8 of Central Intelligence Act of 1949,
as amended.
(2) Certain activities in support of confidential
operations protected by the authority to the
Director under Section S.
Approved For Release 2004/02/03 : CIA-RDP64B00346R000300380006-6
 All r
Approved For Rele~s'e~20Q4/ 12~ ~~ 'If ~20904`~ 0346R000300380006-6
We agreed that to the extent expenditures were certified by the
Director as being of a confidential, extraordinary, or emergency
nature, such expenditures were not subject to examination by the
General Accounting Office without the concurrence of the Director.
The activities in support of the confidential operations embraced
practically all of the administrative operations. Nonetheless, we
were willing to attempt to make an audit at CIA within the principles
stated by the Director in his letter of October 16, 1959, but in our
reply dated October 21, 1959, we stated that in the event it appeared
after a trial period our reviews were limited to such an extent that
we could not effectively and constructively accomplish any worthwhile
objectives we would consider whether or not the audit should be
continued.
During the ensuing 30 months we undertook to sake reviews of
selected overt activities as access to the covert activities was not
made available to us. In this connection, access to the activities
of the Support Component in which we could be expected to be most
effective in our reviews was significantly limited because covert
and overt activities of this component are integrated. We were not
able to review sufficiently financial management, property management,
contracting, procurement, and similar activities for any effective
appraisal of the administration of these activities. Our access for
a review of the internal audit program and reports was very limited
and we had no access whatever to the work of the Inspector General;
therefore, we were not able to appraise the internal review mechanisms
within the Agency. We have had rather complete access to the activities
of the Intelligence Component, but the nature of these activities and
the lack of complete access to internal review programs and reports
has significantly limited our effectiveness in this area.
In undertaking to make reviews at the Central Intelligence Agency,
we recognized that the nature of the activities of this Agency pre-
sented problems on sufficient breadth of coverage and review of detail
for the purpose of reaching sound conclusions. We have made every
effort to broaden our review of the activities of the Agency within
the limitations which were placed on us, and we wish to assure you
that our conclusion that we could not effectively accomplish any
worthwhile audit objectives at CIA on a continuing basis was reached
only after considering all the factors as we saw them.
To obtain the maximum effectiveness of a General Accounting Office
audit of CIA activities, it would be necessary for our audit staff to
have nearly complete access to CIA activities. However, we believe it
to be pQssible to perform reasonably comprehensive reviews of CIA
activities if we were permitted complete access to the administrative
activities, such as financial, procurement, property, and personnel
Approved For Release 2004/02/03 : CIA-RDP64B00346R000300380006-6
 Approved For Release 2004/0 ?7
msxasc ? mrt av_' t;'r -aaI - view activities that are perfumed in
support of botc. 6iizis1U%e and aonsensitive operations of CIA.
We appreciate your interest in air mark at CIA and the
expression of your views on the discontiwuance of our work there
is invited. We are prepared to discuss these matters further with
you.
Sieerely yours,
Comptroller General
of the United States
Approved For Release 2004/02/03 : CIA-RDP64B00346R000300380006-6