S. 653 - GAO AUDIT OF CIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP77M00144R000800140008-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: December 18, 2001
• Sequence Number: 8
• Publication Date: July 11, 1975
• Content Type: MF

Approved For Release 2002/01/10 : CIA-RDP77M00144R000800140008-4
11 JUL 1975
19~y~=/s9a
MEMORANDUM FOR: Legislative Counsel
SUBJECT: S.653 - GAO Audit of CIA
1. We have reviewed S.653 and your draft comment about it
and have only a few suggestions to offer.
2. In the second paragraph on page 2 of your letter we
suggest that the period after the words "wherever possible" be
changed to a comma and there be inserted "and to subject confidential
as well as vouchered funds to an internal audit which complies with
the same principles and standards as are applied by the Comptroller
General in auditing other agencies of the Government." The definition
of vouchered funds in the parenthesis could be deleted but if retained
should be restated as follows: "Vouchered funds are defined within CIA
as those which are accounted for, and could be audited by external auditors,
in conformance with the laws that apply to ... and procedures."
3. We suggest that the first line at the top of page 3 be changed
to read: "the revelation that non-Agency auditors over whom the Director
exercises no administrative authority or direction could gain access to their
names. . . " To make this point more explicitly we suggest the insertion of
an additional paragraph immediately after the paragraph at the top of the
page which ends with the words "and allegations about CIA activities."
The new paragraph would say: "GAO auditors can be presumed to be
just as loyal and trustworthy as CIA auditors, and can be granted security
clearances with equal facility but they have no administrative or security
responsibility to the Director of Central Intelligence. The DCI exercises no
control over them which would permit him to meet his responsibility to
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protect sources and methods. To the extent that external auditors,
or any other persons not under the direction of the DCI, are granted
unrestricted access to documents containing information about sources
and methods, the Director will have lost control and his responsibility
will have been abrogated. Preservation of that responsibility and the
authority to meet it is vital to the effective performance of an
intelligence organization."
4. Addition of the language suggested in paragraph 2 above
makes unnecessary the last sentence of the penultimate paragraph of
your draft memorandum, and we suggest it be deleted.
5. In the second sentence of the final paragraph at the end of
the third line we suggest that the word "comply" be substituted for
"comport." Finally, we suggest that the last sentence be reworded
to say: "I must oppose any legislation, however, including 5.653,
which would open our most sensitive records to any additional unrestricted
access not subject to the direct administrative control necessary to permit
anyone holding the Office of Director Central Intelligence to meet his
responsibility to protect intelligence sources and methods, a responsibility
created by Congress to enable us to carry our basic mission."
JOHN D. IAMS
Comptroller
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