RECOVERY OF INDEBTEDNESS - (Classified)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05747A000200060022-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: August 2, 2000
• Sequence Number: 22
• Publication Date: May 22, 1953
• Content Type: MEMO

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$ANDARDFORAbbroved For Release 2 6-/0 9 : IA-RDP78-05747A000200060022-8 '..
Office Memoidtm ? UNITED STATES GOVERNMENT
TO : Deputy Comptroller
: Deputy Chief, Finance Division k~
SUBJECT: Recovery of Indebtedness --
DATE: 22 May 1953
25X1A9a
1. Reference is made our verbal inquiry relative to (a) the manner 25X1 Aga
in which the overpayment to was noted by this Division, and
(b) the probability of a recurrence of a similar type of overpayment to other
individuals.
2. - was employed by this Agency as a contract employee on 25X1 A9a
10 September 1951 at a basic sa of $10,000 per annum. On 12 December 1951
a me was written to Special Contracting Officer, 25X1A9a
25X1 AI'om Personnel Office (copy attached) giving notifica-
tion to the effect that would cease to perform the duties specified 25X1A9a
under the above cited contract, effective COB 6 January, and would be placed
under an "Expert" contract at G6-15, $10,800 per annum, effective 7 January,
This notificationas furnished the Finance Division, but a formal termination
of contract was never received,
3. Upon receipt of s memorandum,, the Payroll Section of the 25X1 A9a Finance Division did not terminate contract, bat increased his salary 25X1A9a
from $10,000 to $10,800 per annum. Concurrent with the issuance of the memo-
randum setting forth contract termination, this Agency entered into an overt 25X1A9a
personal service contract with effective 7 January 1952, and he was
entered on the rolls of the Fiscal Division as of that date at $10,800 per
This resulted in both the Finance and Fiscal Divisions carrying Mr. 25X1 A9a
annum.
on their respective payrolls from 7 January 1952 through 30 June 1952 at
a per annum rate of $10,800. The initial expiration date of both contracts was
30 dune 1952.
4. The Finance Division processed a payment for - beyond 30 June 25X1A9a
1952, and the payroll auditor picked up the overpayment and brought it to the
attention of the supervisor. This resulted in a review of the subject's entire 25X1A9a
file and a further study of memorandum of 12 December. The super-
visor noted that whereas the contract termination
amore d didinoedeclearly
25X1 A9a
set forth in the body that payments
vouchered Funds, it did indicate subject that a contract termination was to 25X1A9a
were to be paid at a GS
be effected and that subsequent services of -
grade level. This automatically alerted the supervisor to the fact that were 25X1 A9a
payments to from Unvouchered Funds subsequent to 7 January' 1952
in error and prompted him to check with the Fiscal Division to determine if
subject had been carried on their rolls. They advised that he had been carried
on their rolls since 7 January 1952.
Approved For Release 200O7Ot "%9V:18f1X- -05747A000200060022-8
 Approved For Release 2000/
78-05747A000200060022-8
5. This office will have no assurance that similar overpayments will
not occur until such time as contract employees are terminated from the
payrolls maintained in this Division with a formal contract termination.
The lack of receiving formal contract termination has improved considerably
over the past few months, but it is still felt that there is an area for fur-
ther improvement with regard to prompt and formal notification.
25X1A9a
eputly Chief, Finance Division
Attachment: Copy of Memorandum
FD/WTH:mgd
Approved For Release 2000/ /g, lp`%-P?~7n8-05747A000200060022-8