Request for Increase in Finance Division T/O

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03568A000200060020-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 19, 2016
• Document Release Date: October 12, 2005
• Sequence Number: 20
• Publication Date: October 27, 1951
• Content Type: MEMO

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STANDARD FOF:$ NO. 64 Approved For Relea /2 CIA-RDP78-03568A000200060020-1
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Now
Office Memorandum ? UNITED STATES GOVERNMENT
YGIl1
: Comptroller
DATE: 27 October 1951
eff-M
FROM : Finance Division
SUBJECT: Request for Increase in Finance Division T/0
1. In our last general request for increased T/O submitted 26 Febru-
ary 1951, we asked for employees to meet the estimated minimum need
based upon the work volume level as of January 1951. We did not re-
quest provision for future increases because it did not appear that
we could safely absorb more new employees at the time. We feel we
are now in a position to state more accurately the increased need at
this time and to give a reasonable estimate of future needs provided
there is no unforeseen major increase or decrease in operations.
2. The need for additional employees divides into four categories.
They are:
(a) To provide for normal expansion of the workload as a result
of increased operations in OSO, OPC and other offices ;
(b) To provide for expanded service and workload in the Mone-
tary Branch;
(c) To provide for the audit of Proprietary Projects;
(d) To provide for an increased current workload and anticipated
major expansion in the requirements for industrial audit (pro-
curement research and development contracts).
3. The following comments are submitted regarding requested inreases.
These comments are by organization unit in the order in which ?I)ey n
tr.
(a) Registry Unit. A minimum of Clerk-TypiA, G'~-4,
is required to process the present volume of documents which ale
received, logged, routed, dispatched and filed in this Unit.
For comparative purposes, this Unit processed approximates
2,993 items of correspondence, cables, memoranda, etc., i
September 1951, whereas at January 1951 the volume of suc
material was approximately 1,200. It is mandatory that such
documents receive prompt attention which is now being given at
the expense of proper indexing, cross-referencing and filing.
Another function which can be given more attention, after effect-
ing an increase in T/0, is the preparation of documents for micro-
filming and/or transferring to archives. This function is es-
pecially important in view of the scarcity of space. Based
upon volume alone we estimate a minimum of one additional clerk
will be'required by the beginning of fiscal year 1953.
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(b) Accounts Branch. The additional requirement of 25X1
GS -7.. in the Accounting Section of the Accounts B
by the opening of new field stations and the activation of many
major projects which for the purpose of accounting are the e
lent of a station. In January 1551 there were approximately eta- 25X1
tion and major project accountings which r ed reaonailia on and
processing in this Section. There are now such accounts. In 25X1
addition this Section performs a major s as in the issuance of
special reports and data to the various operating offices. Based
upon the present rate of increase in new accounts, we estimate 25X1
additional employees will be re aired by the beginning of fis
year 1953. Our request forditional employees Clerk, GS-4, 25X1
in the Records and Reports $ec on of the Accounts Branch is based
primarily upon the increase in the volume of work processed by this
Section. For example, in January 1951 we processed approximately
1,938 vouchers per month which required approximately 11,628 journal
entries. In September 1951 we processed 2,743 vouchers requiring
approximately 19,91,4 journal entries. In addition to the increase
in volume there is an imperative need to improve our books and
reports. Such reports must be expanded to include allotments,
advances, obligations and unliquidated obligations. We believe
that a major portion of the work increased by the improvement will
be offset by mechanized accounting. However, there will remain the
substantial increased requirement in the preparation of vouchers,
the verification of daily machine schedules and the prompt issuance
of reports to operations and management. We estimate that one addi-
tional employee will be required by the beginning of fiscal year
1953.
(e) OPC Certification and Laison Section. The requirement for 25X1
additional Certifying Officers, GS-12, and one Clerk-Stenogra er,
GS-4, in this Section is based partly upon the increase in docu-
ments as reflected by the increase in the number of station accounts,
together with a substantial increase in the number of small project
and agent accounts. However, there is another major need which is
not easily measured but which is of vital importance to both the
Finance Division and Operating Offices. This is the need for con-
sultation with regard to all manner of finance business, but es-
pecially with regard to complex project and agent accounts. At
present the limited number of Certifying Officers simply cannot dope
with the expanded volume of work consequently cannot be reached for
much necessary official business. Based upon present trends we
estimate that additional Certifying Officers and one additional
Clerk-Stenogra er will be required by the beginning of the fiscal
year 1953.
(d) OSO and Other Offices, Certifying and Laison Section. The need
for F__~additional Certifying Officers, GS 12 and one Clerk-Stenog-
grapierr,, GS-4, is for the same reason stated above. In this case,
the Office of Special Operations which has had much more time in
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1 SECURITY INFOOI4ATION
business than OPC is not, insofar as finance is concerned, ex-
panding so rapidly. However, the new offices of Communications,
Training, and Technical Services Staff are expanding rapidly and
require greatly increased service. We estimate that an additional
Certifying Officer and Clerk-Stenographer will be required by the
beginning of the fiscal year 1953.
(e) Current Audit Section. An increase ofIluditors, GS-9, and 25X1
one Clerk-Stenographer, GS-4, is, we believe, the minimum which
will permit acceptable administrative audit of the various field
stations and projects, since this Section was recently activated,
there is little data fo parative purposes. However, it must
now audit approximately station and major project accounts
per month and is oblig furnish special audit assistance in
the settlement of numerous complicated agent accounts, which,
because of the lack of communications, or the nature of the
agent's assignment, become in many oases exceedingly difficult
and time consuming. At the present time a backlog of approxi-
mately_ ccounts is being steadily increased at the rate of
approx Y accounts per month. Since the activation of
this Audit Sewn we have been successful in greatly reducing ~is
the audit time required in the servicing of these accounts. has been done through the issuance of'improved procedures and by
regular correspondence with the various field stations presenting
constructive criticism and recommendations. We are continuing in
such efforts but because of the uncertainties involved, especially
the slow and difficult communications, it is not possible to
accurately estimate further results at this time. We now estimate
that- dditianal Auditor and Clerk-Stenopher will be required
by t-Beginning of the fiscal year 1953 but wish to point out
that unless there is a decline in the time required to service
each account this estimate must be revised upward.
(f) Propriety Accounts Audit Unit. We base our estimate of II 25X1
required positions in this new Unit on the fact that there e
now a backlog of work covering the period of approximately 18
months. Until this function was recently assigned to the Finance
Division, it had received no attention with the exception of a
few audits conducted on a ad hoc basis by var~ang members of the
Finance Division. There are now in excess of such accounts, 25X1
some covering extended periods of activity which require audit
attention. Actual audit must be conducted.by members of the
Finance Division or by audit firms under contract whose audit
work as such must be supervised by the Finance Division. After
experience data is gathered it will be possible to submit request
for adjustment in the T/O of this Unit, if appropriate. However,
for the purpose of activating this audit and to eliminate the
present backlog, we believe that a minimum of the 25X1
requested is now required.
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(g) Payroll Section. The request for additional employees in
this Section is based solely upon the increase in Agency em-
ployees. Our Payroll Section is concerned more with the vari-
ous types of allowances than with salary. The processing of
such allowances is considerably more complex than normal pay-
roll. Based upon experience with our resent IBM Payroll Sys-
tem, an average of 'I on the rolls
is required. We now have approximately employees on the
rolls. At the present rate of increase s ditional Clerks
will be required for the fiscal year 1952, and, based u n
budget estimates of an increase of approximately ployees
on the Confidential Funds rolls in the fiscal year ,
or more additional Clerks will be required in the fiscal year
1953.
(h) Agent Pay and Allowance Unit. We have not requested an
adjustment in the Agent Pay and Allowance Unit pending more
experience in this work which is now being supervised by higher
grade Auditors. However, it will be of interest to note that
there are now approximately agents serviced b this Unit and
the number is increasing at a rate of Per month. As
opposed to ordinary business which generally can be handled more
efficiently in volume, the processing of agent accounts becomes
more difficult as the volume increases. This is especially true
in connection with the secret transmittal of funds to the agent,
his bank account, or his representative. Both OSO and OPC are
assisting the F e D is on in establishing secure agent pay-
ment mechanics The organization and personnel of
this Unit will e -Lae subject of a separate memorandum when
more facts are available.
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(i) Travel Section. The need for an increase ofL_J Travel Audi- 25X1
tors, GS-5, in this Section is occasioned solely vy the increase
in volume of accounts. In January 1951 we were servicing approxi-
mately 800 travel accounts per month whereas in Septem a J 951
this number was increased to 1,400. We estimate that addi- 2 5X1
tional Clerks will be required by the beginning of fisca year
1953.
(j) Monetary Branch. The need for additional employees in the
Monetary Branch is occasioned by requirement for expanded service
as well as by the general increase in activity. The total work-
load of the Monetary Branch cannot accurately be measured by
either volume of documents or in the amount of funds and other
valuables handled. However, the general increase in the number
of field stations and projects which must be funded, special
banking transactions which must be effected, and material increase
in the dollar amount involved generally indicates the need for
additional employees. Another important function of this Branch
is the advanced planning for monetary operations. This is especially
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significant in view of the scarcity of iron curtain currencies
&M ether items of monetary value required in agent operations.
(k) Disbursing Section. This Section must now service approxi-
mately twenty bank accounts each of which requires special atten-
tion because of the nature of the accounts, and is now paying by
(1) The Insurance'and Service Unit, which conducts special acti-
vities for the benefit of CIA employees in general, will be
made the subject of a separate memorandum.
(m) Planning and Field Audit Branch. One of the major functions
of this Branch is the audit of firms engaged under contract by
this Agency to furnish goods or services. During the period
19 December 1950 through 10 September 1951, final audit action
has been taken on forty-one (41) contracts and twelve (12) pur-.
abase orders. These figures are not included in the active con-
tract figures appearing below.
-5-
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NUMBER OF CONTRACTS
S JET TO FIELD AUDIT ASSAT MONETARY CONSIDERATION
23
41
55
2-26-51
6-17-51
10-28-51
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#e Included in the actual count on the "Number of Contracts"
are two large agreements where commitments are made on a task
order basis and the monetary consideration figures are not
available. From information gained through discussions with the
Contract Branch, it is estimated that one of the contracts will
reach approximately nnuall , whereas the other
contract is expected to exceed the figure. We are
aware that other contracts have been awarded where copies have
not reached this office) and that other contracts are in the
process of award; which will change the picture shown above within
a short period of time.
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Active contracts, even with some having been consunmaated,
as shown above, have more than doubled in number; whereas the mone-
tary consideration has increased by nearly five times during a
period of approximately eight months. Also, for consideration,
is the fact that the above figures represent only the contracts
where audit is required to be made in the contractor's plant.
We have approximately n price contracts requiring payment admin-
istration and desk audi . In this connection, it is interesting
to note that there has not been a corresponding increase in the
fixed price business during the past eight months. The reason
for this has been studied and questions have been asked both the
Contracting Branch and several contractors. The employees in the
Contract Branch are quick to reply that contractors are reluctant
to bid on a fixed price basis without having the protection of a
cost escape or price redetermination article. The contractors are
just as quick to respond with information to the affect that the
,emergency has created a fast changing market price for supplies
and equipment which forces them to either project the unit price
upward to the extent that, in many cases, an unrealistic price
would be established, or for its protection they have to insist
on a contract with some type of a cost escape article which re-
quires audit at the contractor's plant. The consensus is that
this situation of fast changing market prices will result in more
and more contracts being awarded on a basis that will require plant
audit.' Even when the emergency is over we should experience the
reverse of the above, which will result in a situation where the
Government can ill-afford to award contracts on a fixed price basis
until the conditions again return to a stable basis.
We are not in a position to definitely determine the number of
contracts that will eventually be awarded on a basis requiring
audit, but we have been informed by the Purchase Office alone
that their best estimate will be 200 during the year. It may be
that we will never have 200 contracts active at any one time because
we expect to be performing audits and recommending settlement
amounts, eventually on a current basis contingent upon the con-
tractor's ability to manufacture and deliver we may reach a point
where the Agency can make final settlement under contracts about
as fast as other contracts are being written.
There are other offices preparing contracts requiring audit by
the Planning and Field Audit Branch that were not previously con-
templated. Some of these contracts which are currently scheduled
for audit are of such nature and magnitude that protection of the
Governmaent's interests demands a full time audit staff to be as-
signed to the job sites, or contractor's establishments, on a
residency basis. The following examples are citedr
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There are a few other functions currently active in the
Planning and Field Audit Branch where a reasonably accurate
time allocation can be made, which data has not previously
been furnished, such as the control of and follow-up on ex-
ceptions taken by the audit office, as well as the prepara-
tion of reports inherent thereto (approximately 1/4 man year)
and the reconciliation of bank statements and executing the
audit certifications required (approximately 3/4 man year plus
supervisory time and stenographic time in preparing the re-
quired certifications). In addition there are other major
functions which this Branch should perform but has been unable
to do due to the lack of personnel. Such functions include
the inspection of field stations and installations and an
internal procedural audit of the Finance Division, especially
with respect to cash accounts. These functions were believed
to be provided for in our present T/O but have been neglected
as a result of the major increase in requirements for indus-
trial audits of procurement and services contracts.
It has been imperative that we give priority attention to
this latter function. Experience which we have recently
gained in this field, especially when we are dealing with
contractors who are performing under other work, including
fixed price orders, along with CIA cost-plus-fixed-fee con-
tracts, leads us to believe much more attention must be given
to this audit function. In addition to the substantial amount
of money involved there is for consideration the matter of
Agency security in the event of serious dispute with the con-
tractor, since most of the items being procurred are considered
classified. Preventative measures such as a sytem survey at
the time of issuance of the contract and periodic floor checks
and audits are profitable to the Agency in terms of dollars
and in addition provide insurance against possible undesirable
pubticity- We believe that our asttimqt of the immediate need
for the beginning of the
fiscal year 195.3 is conservative should be reviewed when
the number of additional contracts can be more accurately deter-
mined.
4. In view of the unavoidable delay in obtaining clearance for new
employees and the urgent need which now exists for such employees
favorable consideration at your earliest convenience is requested.
Acting , vinance son
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