VISITS TO WE FIELD STATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05551A000100090024-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 12, 2016
• Document Release Date: November 29, 2001
• Sequence Number: 24
• Publication Date: June 21, 1956
• Content Type: MEMO

sTANUARO FORM NO.,Approved For Release 2002/05/
D 78 05551A0010990024"-~
maw
Office Memorandum -? UN ITED STATES GOVERNMENT
TO :
suBJL.CT:
Acting Comptroller
Chief, Technical Accounting Staff
Visits to WE Field Stations
DAB 21 JUN 1956
1. Visits to five field stations in the WE area were made during
the period 23 May through 7 June 1956 to review finance operations as
performed at both Class A and Class B stations in the area. At each
station visited a complete review was made of all finance activities
performed. The detailed procedures and forms utilized in the stations
for documenting and recording financial transactions were given particular
attention as well as the cash and allotment control techniques in effect.
General comments relative to the individual stations are set forth in
this memorandum.
25X1A
25X1A
a. Review at this station disclosed that the finance activi-
ties are well performed under the Chief, Finance Officer and one
assistant although considerable overtime is required to keep the
station records and reports current. It appears that with the
volume of activity performed at this station an additional finance
employee should be provided. The view was expressed by the Chief,
Finance Officer that a clerk-typist employee in addition to the
present staff would provide an adequate finance staff based upon
present workload requirements. For the current fiscal year the
station has 44 allotments and disburses very substantial amounts
of funds.
b. Funds are acquired at the official ratel
25X1 A from the at a
current rate of approximate) . For the period
February through April 1956 more than half of currency acquired
was obtained from The Finance Officer indicated that
from the station v ewpoint there is no objection to larger amounts
being provided by the 0 Station. This matter may warrant
further attention by the Finance Division.
25X1 A
DLN-1 L
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SECRET
a. Review of station finance activities disclosed that the rec-
ords and reports are well maintained and prepared and that good
practices are in effect relative to controls of cash funds. There
has been, however, no effort to maintain control over obligations
incurred prior to the actual expenditure of funds. This matter
was the subject of a recommendation to the station that the proce-
dures prescribed for Class B stations under be fol-
b. It was noted in this connection that practically all dis-
bursements are made inrr land that maintenance of the Allotment
Control Record in this currency instead of the dollar equivalent
would be more simple. It is recommended that this be considered for
optional treatment in the next revision of without
change, however, in the present requirement that for reporting purposes
the dollar equivalent be shown in the monthly status of allotments
schedule.
c. The allotments for the fourth quarter of the current fiscal
year had not been received by the station on 28 May 1956 with the
result that several allotments had been over-obligated at the time
of my visit. This matter should have the attention of the Area
Division.
d. It was recommended by station personnel that the Allotment
Control Record be provided by headquarters on a ruled form in order
to facilitate maintenance by Field stations.
of transmittal. In a recent instance funds were brought to the
station by covert means, thus incurring a risk of their being dis-
e. It was recommended by station personnel that currencies be
sent to the station in
order to avoid possible questions which may develop from other means
covered
f. The station has been following the practice of preparing a
disbursement voucher (Form 33-57) to cover each disbursement trans-
action, including those where other voucher forms support the dis-
bursements, such as Form 33-12 and 33-58. It is recommended that
the Finance Division advise the station that this practice may be
discontinued and the original documents may be treated as the dis-
bursement vouchers.
i SECREr
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2.5X1 A
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a. This station is now staffed with a Chief, Finance Officer and
two other finance employees. The finance activities were reviewed
and are being performed in a competent manner with proper records and
reports and satisfactory control techniques over cash available and
allotted funds. The recent additional finance employee should enable
the finance operations to be performed currently at all times based
2. 1A upon present workload requirements.
b. The station conforms more nearly with the accounting procedure
prescribed for Class A stations in than any other station
visited. It finds the prescribed forms gene-r-a-ITy adequate for all pur-
poses, but made several recommendations as to detailed provisions. The
station posts each individual disbursement document in its General
Journal, Cash Subsidiary Record, and Allotment Control Record and be-
lieves this method preferable to recapitulating disbursement documents
for posting purposes. It recommends (1) rulings on accounting forms,
(2) printing the General Journal on two sides, and (3) providing on
the Advances subsidiary ledger for separate columns for debits, credits,
and balances of indigenous currencies.
c. Discussion developed relative to headquarterb intention con-
cerning adjustments to memorandum control accounts in cases where trans-
fers are made to the station of disbursements to projects. A question
arises as to the basis of write-off, where transfers do not reflect
the applicable currency acquisition rates and where the accountings of
the project are in terms of a foreign currency. References were made
25X1A to dispatches relative tol dated 26 October 1955 (No. 16985),
18 February 1956 (No. 19204), and 29 May 1956 (No. 12298). The station
requested in the 18 February 1956 dispatch as to whether it should use
the legal rate in adjusting the memorandum control account; however,
the reply dated 29 May 1956 did not include an answer on this point.
This matter should be the subject of further advice to the station.
25X1A 5.
a. The finance records at this station are at present maintained
by an employee recently transferred from headquarters who had no
previous experience in finance work. The records were found to be
carefully maintained and reflected a good understanding of prescribed
procedures.
b. The station does not record obligations against allotments
except when actual expenditure documents are processed. This matter
was reviewed with the employee maintaining the finance records and
was made the subject of comment in a discussion with the DeFputy Chief
of Station. The station does not receive allotments currently in
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some cases and operates against either no actual allotment or an
insufficient allotment pending receipt of allotment advices from
headquarters. It is recommended that this matter have the attention
of the Area Division.
c. In the most recent audit report comment was made that ad-
vances are not approved in writing before funds are disbursed. A
simple form of request for advance was developed and provided to the
employee who maintains the finance records so that the necessary
approvals may be obtained. In discussing this matter with the
Deputy Chief of Station he expressed concern that this requirement
may prove burdensome and result in retarding operations in the absence
of the Chief of Station. It was indicated that approval authority can
be delegated in writing by the Chief of Station to the extent deemed
appropriate and, if desired, a standing authorization could be provided
permitting advances within set limitations to specific officials or
employees.
d. A number of suggestions were made to improve and simplify the
records as maintained at the station, including (1) the maintenance
of a continuous record of allotments and obligations for each allot-
ment symbol instead of initiating a new allotment control record each
month, (2) the merging of numerous payments to the same individual on
a single disbursement voucher, and (3) the use of an improved form of
subsidiary record of advances to provide a "balance" column.
a. The finance records at this station were found to be generally
well maintained. The employee assigned to this activity has a good
understanding of the requirements except that no effort is made to
record obligations in advance of the recording of the actual expendi-
tures. Where most activities do not involve the incurrence of obliga-
tions prior to the expenditure of funds the importance of :recognizing
obligations is minimized; however, for certain types of obligations
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such as those involving extended travel or purchases of substantial
items of equipment and supplies, the obligations should be recorded
before expenditure occurs. It was recommended to the employee assigned
to Finance that the procedure prescribed i for Class B
stations be studied and applied.
b. All finance transactions are recorded currently in the Cash
Journal and periodic cash counts are made, usually weekly, to assure
that funds are in balance with the records. At the end of each
month summary vouchers are prepared for blocking individual transac-
tions by projects and activities to facilitate postings to the
Summary Accounting and Allotment Control Record; at this point the
vouchers are assigned sequence numbers which are then cross-referenced
in the Cash Journal to the individual transactions. It was pointed
out that this method of posting the Allotment Control Record :fails to
identify instances of over-obligation of allotments and it was recom-
mended that this record be posted for detailed transactions at least
whenever the allotment balances may be over-obligated by current trans-
actions.
c. At this station no procedure is in effect to provide approvals
of individual disbursements prior to the outlay of funds. The indi-
vidual staff members work closely with the Chief and the employee as-
signed to maintain finance records as a matter of precedent usually is
knowledgeable of the authorities for disbursing funds. Whenever any
unusual expenditures are required, the Chief so advises the employee
assigned to maintain the finance records or adequate documentation in
the form of dispatches or cables are available to support the disburse-
ment action. At the end of the month the entire documentation of dis-
bursement activities is referred to the Chief and he signs each summary
disbursement voucher and the Summary Accounting.
d. A suggestion was made by the employee assigned to maintain
finance records that the Disbursement Voucher form provide a column
for showing object classifications so that this identification can be
shown on these vouchers instead of on the Summary Accounting 1n cases
where there are several object classifications affected by the same
voucher.
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