REPORT ON FINAL AUDIT (SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00074R000500390003-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 21, 2016
• Document Release Date: December 11, 2008
• Sequence Number: 3
• Publication Date: August 31, 1964
• Content Type: MEMO

Approved For Release 2008/12/11: CIA-RDP67B00074R000500390003-8
084-3906-64
1 1353
BOLT TO:
Auditor General Representative (APL)
P. 0. Box R155
S . W. Station
Wsshingtcm, D. C.
31 August 1964
SUBJECT: Report on Final Audit of CM Subcontract
aexaeo Research and Development
A Division of Whittaker Corporation
San Diego, California
Subcontr*t no. 009 Issued by
TO : Contracting Officer
STAT
1. In accordance with a request from ~ , an examination has J r1
been made of costs under the subject subcontract to the extent deemed
appropriate. The period of performance was from 14 February 1963 through
30 June 1963.
2. The results of the examination are sloven an Exhibit A attached.
Related comments thereto are contained in the fo]loaing paragraphs.
3. The overhead and GBeA rates used by the auditor, 119% and 30%
audit agency (army
respectively, are those recommended by the cognisedt
apdi.t) for use until such time the fiscal year 1963 rates are negotiated.
The subcontractor's cctroller, indicated that STAT
these rates appear reasonable for use as final rates on this subcontract.
4. Included in the material costs is a chs ge for a variable speed
manor ~ in the amount of ~ sdvrm
STAT
drlr! with
that this item is considered to be government property mad, currently is i
being used an the full v-on work. The auditor has reclassified this item
from material cost and has excluded it from the lication of G&& and
STAT ~
profit. This is subject to a determination by~ as to etwtheer the
purchase of this itee, was approved in accordance with the terns of the
subcontract.
5. The smart of $87.57 for travel expense questioned by the auditor,
represents the difference betwen 'first-class" and "coach" fare costs in
April 1963. It is the subcontractor's stated policy that personnel are
to travel by something less than first-class. When this matter ms dis-
trac "r'E rep tentative . STAT
_
b
con
u
t the
he stated that he and others prefer the privacy of first-class travel in
Approved For Release 2008/12/11: CIA-RDP67B00074R000500390003-8
 Approved For Release 2008/12/11: CIA-RDP67B00074R000500390003-8
order to review their docu ts on route. Such a practice
ir"cun
re.
followed would r to represent a breach of security
6. The GM ewe q eationed by the auditor ccarprises the folloKin$=
Applicab3A to trt
s rt7 re-
t
pr
raraen
Applicable to done 51.00
classified ..__r._. ,.. 98.61
portion ewiCaDle w r.w ww-_-
Tatial
T. The results of audit Vera aiscusaed with on 20 /wgwt
19611. Kim reaction with ~~ o"rbeed and thatibtne questioned
Il~t
.
3
in P&rMV%*
jammified.
ramen
itgn or ip e
t P
MA the
STAT
STAT
Auditor deVe Representative (APL)
Approved For Release 2008/12/11: CIA-RDP67B00074R000500390003-8
 Approved For Release 2008/12/11: CIA-RDP67B00074R000500390003-8 _1 1n,ti315
EYE EASE +5.806 Prepared By i
9
6
0
~,.. .,, 0120 8UFF a5
Approved By
//Jr
A
s
_
T
T
11
F.
C~
i i/
~~ ! . C
' %
?
- .L1
~
-
y
l
A
l
1
I,
I
!
~
I
1
I
~
3
.4
6
7I
I
t
I
I
7
iC
1
40
I
r1
~-,?
41
13
I
_
13
---
--.
~ ~?
1:
i
~
I
ld
15
7!
~Ic~
y
~~i
15
16
16
17
1
1B
19
18
20
1
IL
LE
GIB-
21
JAG
!~ Q
0
11
22
1 +
77
-
22
23
23
24
24
15
?5
28;
JI
1!
1 3
26
21 :
17
28
28
1a1
,~
/N,
~~
,29
-
--
+?
I
3C
V
31
I
Approved For Release 2008/12/11: CIA-RDP67B00074R 000500390003-8
 Approved For Release 2008/12/11: CIA-RDP67B00074R000500390003-8
CONTRACTOR'S REMAW
Contract. NOAF33(600)-40274, Task 13
Pursuant to the terw, of (:o tx act NoP33 (600) -40274,T13 and in aonsid..
Brio of o S u m PneHundred ourteen T , six S e d Forty
" ..."` ,
Eig t ars and NTh t ? ,"'cent'g"=`= . 8 -
wo' c ox to dun a Ta contract to STAT
STATE'
matter called the Contractor or to its assigns , if any, the Contras (ST :.
upon pa ent of the said sum by the UNITED STATES Op NO RICA (hes?einatte ,
called the Oovermae-nt), doee remise, release, and disci a the Government,
its officers, ag t3, and em 1oyees, of and from all liabi.l.ities, obliga-
tions, claims and dwnand whatsoever under or arising from the said contract,.
except t
1. Specified zlaims -in atatod ounta or in eatirated amounts whero
the amounts are not aumceptiblc of ezact statement by the Contractor, as
follows:
2. Claim.3, tosether vsi.th reasonable expe n W incidental thereto, bated
upon the liabilities of the Contractor to third parties arising out of the
performance of the sa td contract,, which are not known to the Contractor on
the date of the exe2ution of this release and of which the Contractor given
notice In writing to the Contracting Officer within the period specified in
the said contract.
3. Claims for reimbur mt of costs (other than expenses of the
Contractor by reason of Its inde ideation of the Qoverrment against patent
liability), Including reasonable ex at a incidental thereto, incurred by
the Contractor under the provisions of the said contract relating to ; atentc.
The Contractor a veer, in connection with patent matters and with cl f.m
which are not released as set forth above, that it will comply with all of
the provisions of Vae said contract, including without limitation those ro~
visions relating to notification to the Contracting Officer and relating to
the defame or prosecution of litigation.
oINFe ESS WIQF, this raglease has bean executed this 17th
day
WI NZS$E3
M IOC+i~.Yw:~,a Waahis~tllawC,tl:Mwvl~ne~WLH~~ ~iLM*...arS .. 4lLtLWnY~w1~.1~MNW1ll1r',wY1iY~NYi~I~ItR'M~1.6iYCfP,YF 10i1011~IR~~~Y~T. iIYYtS41~~
Title
"'`gym ~eace@ o"s +coacg~os~ation,son are no
but the certificate below must be completed.)
STAT
Approved For Release 2008/12/11: CIA-RDP67B00074R000500390003-8
 Approved For Release 2008/12/11: CIA-RDP67B00074R000500390003-8
~ p?,r*tir . c, ,v.~- .> s r?- < r~ r ?~ Tj p~Y -ry CE ~y~y, ~gt~
0 l.
l.I...i?Y' u
....1. .~L- i7 .IIII, 1'1 Pli,. w k91 D ?L'.l/J:dr.ib
.
r... ..,.. .-.. ..>>..... .w s..?e.. ~,o:?w.
2 . A+rreti: t (?; ,a?y be a.. t ct ,, tic ; >y to etfeet; . prcuta t
collection of il:i met