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December 9, 2016
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July 14, 2000
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January 7, 1976
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I D R A F T Approved For Release 2002/05/02 : CIA-RDP79-00498A0007/00JI2fl01 4 MEMORANDUM FOR: Deputy Director for Intelligence' Deputy Director for Operation '-W Deputy Director for Science end Technology Administrative Officer, O/D.CfI REFERENCE Memo to Multiple Adses/fr DDA dtd 29 Oct 74, same subject 1. Referent memorandum requested that first class travel STATINTL be authorized based on As you know, a standard format was followed this fiscal year for the Blanket Travel Order (BTO) covering Deputy Directors, Associate Deputy Directors and Office'Directors for first class travel. The legend in that BTO cites the authority simply asl Agency Auditors state that this is not sufficiently specific. 2. Rather than issue amendments to the existing BTO's, it is requested that appropriate travel vouchers include the basis for first class travel as 3. Blanket Travel Orders issued next fiscal year will contain the full citation, thus obviating the need for in- clusion on the travel voucher. John F. Blake Deputy Director for Administration cc: Mr. Ben Evans, Exec. Sec. , SSA-DD/A udit Staff * Same memo to be sent addressed to all DDA Office Directors 1ATINTL Approved For Release 2002/05/02 : CIA-RDP79-00498A000700120016-4 /602:~CIA RDP79-00498A000700120016-4 MEMORANDUM FOR: Deputy Director for Administration SUBJECT Documentation of First-Class Air Travel Requirements 9 D', r= f{ Y~y J iJ L. 'J J/ REFERENCE a. Report of Audit, Agency Travel System; 3 October 1973; (copy attached) b. Memo for Record written by IG; Subject: First-Class Air Travel; 14 August 1974; (copy attached) c. Memo to IG from the DDA; Subject: First- Class Air Travel; 7 October 1974; (copy attached) d. Memo to Acting Chief, Audit Staff from the IG; Subject: First-Class Air Travel; 25 October 1974; (copy attached) e. Memo to DDI, DDO, DDSEjT, AO/DCI from the DDA; Subject: First-Class Travel; 29 October 1974; (copy attached) 1. Reference a, contains an audit recommendation that travel orders and/or travel vouchers include the specific justification for use of first-class air accommodations. Subsequent discussion between the DDA and IG resulted in a policy statement by the DDA (Reference e) which contains the following paragraphs: STATINTL "l, I states, in part, that only Deputy Directors, plus one single senior subordinate, may approve the use of first class air accommodations. 2. When such authorizations are made will you please ensure that the travel order states that the determination to approve the first-class air STATINTL accommodation is based on Approve+ Fgr R4ease 2~007Q~ -'~ D ' J0 ,98A100700120016-4 RI.s"ii~r~d ku _1r iiL l~iJ3.i43'911 .77 Pit- Approved Flee 2Q/(}~5a 9f 41a$A000700120016-4 2. Contrary to this instruction by the DDA, the specific justification for the use of first-class air accommodations is rarely cited on the travel orders or travel claims. The current blanket travel orders simply refer to as theSTATINTL authority without citing one of the specific justifications authorized by this regulation. First-class travel performed by Agency officials, therefore, is not being appropriately documented. Government-wide standards as prescribed by the US General Accounting Office require that first-class travel be supported with the specific justification for such travel either in advance on the travel order or subsequent to the travel on the travel accounting. 3. The Agency has historically restricted the use of first-class travel by requiring approval at the Deputy Director level. We recognize that this level of approval has had the desired effect of limiting the amount of first-class travel. However, such travel performed should be documented in accordance with Agency as well as Government-wide standards. 4. We recommend that the DDA enforce the policy directive issued by his office (reference e above) to require that the justification for first-class travel be documented for specific trips. 5. Please advise the Chief, Audit Staff of the action taken on this matter. Chief, Audit Staff Office of Inspector General Attachment Distribution: vOrig & 1 - DDA Approved F eater~ 057192!'flA+R 9 98aa0700120016-4 C~.Pu~sltit+run.a ii it 6 Ciw .~~5'a 5a~ar ~. Approved Fo elease 2002/05/02 : CIA-RDP79-00498A000700120016-4 SECRET REFERENCE a :tBPOWf OF AUDIT Agency Travel System For the Period 1 January 1972 - 31 May 1973 1. The Central Travel Branch (CTB), Certification and Liaison Division, Office of Pinance is the central point where travel claims and related expenses are uniformly re- viewed and processed for all staff and contract employees. Commuted travel expenses and agent travel claims are reviewed and processed by the traveler's component. Effective 1 August 1973 the Agency instituted commuted. travel rates for travel from the field to Headquarters; previously, commuted rates covered only travel from Headquarters to the field. Travel claims for DDS&T components OSA, OD4cL, OEL, and SPS are re- viewed and processed by OSA. These components are the subject of separate reports of audit. AUDIT OBS1 RVAT IONS AND- RECO114MY-NDATIONS 3. Travel vouchers processed by CTI3 were reviewed on a random test basis to determine uniform compliance with the policies, procedures, and controls, applicable to Agency travel. CTB is generally effective in performing its function; however, Agency administrative procedures which govern the u3 c of first-class air accommodations and the rate of per diem for extended temporary duty (TDY) need to be strengthened. Also, Approved For Release 2002/05/02 CIA-RDP79-00498A000700120016-4 Approved F ro]Felease 2002/05/02 CIA-RDP79-00498A000700120016-4 E_ T there is no general ledger control account for Government Transportation Requests (GTR's) on hand. Minor observations were discussed with officials concerned and satisfactorily resolved during the. audit. Our recommendations for the Agency Travel Policy Committee and the Office of Finance are discussed and enumerated below. First-Class Air Accommoda Qns 4. In many instances the necessity for the use of first- eddoraeither class air accommodations was not adequate l. justified 25X1A the travel. order or travel voucher. Travel Regulations allow for the use of first-class air ac- commodations under certain circumstances; however, if an ad- equate explanation of the circumstances necessitating the use of first-class air accommodations is not included on the travel order and/or travel voucher, certifying officers and auditors are precluded from effectively reviewing the voucher. 25X1A In this connection II requires that financial trans- actions be documented in a manner which will satisfy certifying officers and generally accepted accounting practices. 5. In several instances first-class accommodations were authorized because of the physical condition of the traveler, but there was no evidence of coordination with the Office of Medical Services (OMS). These authorizations should be ap- proved by OHMS. Recommendations for the A encv Travel Policy m'It tee a. Amend Agency travel regulations to require that specific justification for the use of first-class 25X1A air accommodations, as stated in be in- cluded on the travel order and/or travel voucher. b. Amend Agency travel regulations to require that justification for the use of first-class ac- commodations because of the traveler's physical condition be approved by OMS. Approved For Release 2002/05/02 : CIA-RDP79-00498A000700120016-4 S ECRET Approved Fo1F' elease 2002/05/02 : CIA-RDP79-0.0498A000700120016-4 c. Reemphasize to the appropriate officials the need for compliance with regulations concerning the justification and approval of first-class air accom- modations. 32ates of Per Diem for Extended Foreign TDY 6. In connection with a travel order for an extended. period of TDY, Agency regulation requires the authorizing official to consider whether circumstances war- rant a reduction in the rate of per diem after a two month stay at a TDY location. Federal Travel Regulations, from which our regulation is derived, state that per diem rates Should be reduced when employees incur lower costs due to extended periods of TOY. 7. CTB officials indicated there have been very few instances of reductions in per diem for extended periods of foreign TDY in the past year. Our review of 34 travel vouchers for extended periods of foreign TDY disclosed only one instance of a reduction in the rate of per diem and in only two instances was there an indication that a reduction in the rate of per diem was considered. vouchers precluded an officer or the auditor. Recommendation for the Agency Travel Policy Conimitte Amend Agency travel regulations to require that the travel order or travel voucher related to an extended period of TOY provide for a reduction of the rate of per diem after the first two months or contain a state- ment by the authorizing official explaining why a re- duction is not considered appropriate. Administrative Control of GTR's ?g. CTD is responsible for the administrative control and safekeeping of GTR's issued to the Agency. Manual records Approved For Release 2002/05/02 : CIA-RDP79-00498A000700120016-4 Approved F,ofTl e~ealppse;$1Q C05~b :, :lA- DP 9 ~0498AQ00700120016-4 EI4.b V , 6 u.i Y 1! Y b !r'] Lr tl ~ l .......... :: ,1 ~r 6: REFERENCE b 14 August 1974 MEMORANDUM FOR THE RECORD SUBJECT: First Class Air Travel 1. In line with my responsibility to discuss with the Director any Audit Staff recommendations which have not been accepted by the component concerned, I raised with the DCI this morning the above subject, referring specifically to three documents: (a) Audit Report, Agency Travel System, 3 October 1973; (b) Memo to Chief, Audit Staff, Same Subject, from Director of Finance, 2 November 1973; (c) Memo to Chief, Audit Staff, Same Subject, from Chairman, Travel Policy Committee, 11 April 1974. 2. Although not necessarily in this order we discussed: (a) Use of DCI's special authority for administrative purposes; (b) DCI's view on a tight audit and tight certifying policy; (c) Change of regulation to require that those approving first class air travel specify the basis for the authorization STATINTL under (d) Use of blanket first class orders. 3. His reactions clearly were these: (a) He is aware of a residual feeling in the Agency, especially among older officers, that we need not follow government rules and regulations (and our own) to a T, often relying rather vaguely on the DCIs special authority, and said very pointedly that such authority was not to be used for, administrative matters but only for clearly defined operational purposes. Approved For Release 2QQ,~(0 / ~;~Q-RD 0 00700120016-4 r ~ Approu Re&ebl&e 2& 15iQ24sC:JA-JRDF?7~a 0 9; 000700120016-4 (b) He is a strong supporter of the view that certifying officers and auditors should insist on running a tight ship, with the objective of establishing a CIA record in these respects equal to that of the best in the government. specify the bases. He first questioned whether a change in regulation was necessary but then agreed when I pointed out that in my view: (1) the past record showed that the approving officer would not do it -unless required to do so and (2) it was not the certifying officer's responsibility to provide the basis for the authorization and being junior to the approving officer he usually was reluctant to question the omission. individual approving first class air travel under (c) He favored a change of regulation to require that the (d) He agreed that a First Class Blanket Air Travel Authorization seemed incompatible with the objectives of STATINTL I 4 I did not raise the question of OMS certification, feeling that in those cases where health was a problem, an approving officer might reasonably be expected to ask the advice of OMS, particularly when he now had to specify a basis for authorizing the travel. Donald F. Chamberlain Inspector General cc: DDMtS irector of Finance Chief, Audit Staff Approved For Release Q /651 ; t1A-RDP? -i049'8'A0P0700120016-4 Approved Fot Fjelease 2002/05/02 : CIA-RDP79-00498AOOS 1 1D 41 REFERENCE c 7 OCT '9I4 MEMORANDUM FOR: Inspector General SUBJECT : First Class Air Travel REFERENCES : (a) Memo for the Record by the IG dated 14 August 1974 (b) Report of. Audit, Agency Travel Systen5 I January 1972 - 31 May 1973 1. While I appreciate receiving, a copy of your Mee-noranduxr- for the Record of 14 August 1974 concerning your discussions with the DC:I on the 'subject of first class air travel, I feel strongly that this subject warrants further attention prior to any action being taken on the recommendations made by the Audit Staff in the referenced Report of Audit. 2. Before going into the specifics relating, to the audit rx oendations, I thinly. it is important for us to divorce from our consideration of their recommendations the subject of the DCI's special authorities and abuses tlsereof. While there xx-may indeed 1 a residual feeling ar.,"Ion g some officers in the Agency ency that we need not follow some Government rules and regulations to absolute corr:.pliance, there is no evidence that thi: feeling has been applied in any significant degree to the subject of authorizing or approviav first class air travel. On the contrary, the Agency's record in the establishment and implementation of policy and procedures r elatinv to this specific subject can best be described as conservative. 3. Addressinj the s-ohject of first class travel in terms of n?oi nal Governn-meat policies, procedures a n3 iinplementa.tiore, (-ix.; finds that there are, in essence, only three basic reguiremeutu iclr ermittin first class travel: Approved For Release 2002/05/02 : CIA-RDP79-00498A000700120016-4 Approved Folease 2002/05/02 : CIA-RDP79-00498A000700120016-4 a. First class travel must be authorized in advance by a duly appointed travel authorizing official; or b. Travelers who in the course of their journey encounter circumstances which necessitate use of first class accomsn.oda- tions must indicate what these circumstances were on their travel voucher; and c. Authorizing officials or the traveler must restrict the use of first class travel to five specified instances. 4. When eseioting Agency travel regulations pertaining to first class travel were promulgated, management was well aware that this might be an area which could lead to abuse. Therefore, in CIA the authorizing level for first class travel was placed at the unusually high level of a Deputy Director or. a single senior subordinate. Clearly, this was a recognition on the part of mana ernent of its responsibility for precluding abuses. In the ensuing years the regulatory requirements have been strictly followed (although there undoubtedly have been some instances where the traveler who changes to first class in the course of his journey has not initially adequately noted on his voucher the reason therefor). An regards the specific recommendation of the Audit 'Staff that the senior officials dctai ;noted to authorize first class travel r:e required to stipulate specifically why they are so doing, we believe this requirement is not only demeaning but also would result in little of any real significance as regards either certification or audit. T].ieso officers authorize and approve financial transactions of far ,.,seater significance throughout their working day for which no written justification-is required. The determination if first class travel is necessary is purely judgmental, and we have placed the decision in the hands of those best qualified to render such a Jr-1.-, 6. The recommendation that any first class travel a.uthoz?i ci1 because of the physical condition of the traveler be coordinated with OP,, 15 in our opinion, both unnecessary and infeasible. Once again the judgment of the authorizing official should prevail and we feel confident that in those instances where the physical condition of 2 Approved For Release 2002/05/02 CIA-RDP79-00498A000700120016-4 Approved Fo elease 2002/05/02 : CIA-RDP79-00498A000700120016-4 the traveler might be questionable that these officers would seek professional advice in the normal course of their decision making. 7. In sum, it is my opinion that the existin regulations per- taining to first class travel are entirely consistent with the letter and intent of standard Government policy and procedures and do not require the changes recommended by the Audit Staff. S. Speaking to a broader issue, I believe that this particular problem of first class travel and the discussions and papers which have resulted point out a procedure which I find bothersome. Be- cause of the nature of the issue, it is of primary concern to the DI-)A; yet I feel that the manner in which it has been handled escalatr.d it to the highest management levels of the ., gency before the DDA had an opportunity to present his case thoroughly. I would hope that you and I could discuss this matter at an early date so as to agree on procedures for the future which would preclude such matters being presented to the DCI prior to full exchanges bonsnicen the IG and the deputy director concerned. John )F. Make Deputy Director for Administration cc: .i_}rector of Finance hief, Audit Staff Approved For Release 2002/05/02 CIA-RDP79-00498A000700120016-4 Approved Fo/- Ftlease2002/05/02 GIA.RLJ.P.7.9-(0 2 5 OCT 1974 MEMORANDUM FOR: Acting Chief, Audit Staff SUBJECT : First Class Air Travel In a discussion today, 24 October 1974, with the DDA we agreed on the following: a. The DDA will. respond to my Memo for the Record of 14 August 1974 by agreeing that individuals approving First Class Air Travel will specify STATINTL I Ion the travel order and/or travel voucher where t. ese apply. This will be done without changing the regulation. b. The use of first class travel because of traveler's physical condition will not formally require OMS approval (infeasible when away from Hdgs.) but it is expected that responsible officers will seek professional advice in the normal course of their decision making. c. On the basis that blanket first class travel orders have been used only to a very limited extent but are of considerable value in emergencies away from headquarters, no change will be Made in their usage. Donald F. Chamberlain Inspector General Approved For Release 2002/05/02 CIA-RDP79-00498A000700120016-4 Approved Foelease 2002/05/02 : CIA-RDP79-004gggggqpp~pp~~QQ 0016-4 REF W9 29 to r 1914 :UX, " kN1-Xk t R X; Deputy Director for Intelligonce Deputy Director for t arati .a oeqvty Director for Scioi o ad Tectavlo y mministrativ Officer, Office of the I)CI Whim First Class Travel STATINTL I , II states, in part, that ealy Deputy l it tos, plus one Sin. 1o senior subonUmate. -y a re the use of first CUSS air acc;oc:x o&tations. 2. W'en, such aut aorizationss are =do will yes ploaco CMA" that the travel order states that the deteraixation to rp rio the first class air acccmmiation is bamd on STATINTL 3. C xr-re ntly issmW blanket travel ord will not vo to be av4mided to irc1 the above rogulatory citat r, but It should be cm aired in future autlu sati . 4. In those cases where individual travel orders a boiAg is; u&:! a ut orizi first class air acc r: o t.ion h R c of .yolmI condition of the traveler, it is eiq~xrtod that the cxpmiina s ot'ifiy will, if.' appropriate, seek an epi oo. frm the Office of YUdlcal Services. Jo.? F. a Deputy Director for AdmWstratio Approved For Release 2002/05/02 : CIA-RDP79-00498A000700120016-4 SEN ~iV ? L Ch~EC fjhtM4MTWU AND BOTTOM i OFFICIAL ROUTING SLIP TO NAME AND ADDRESS DATE INITIALS 1 Plans St aff Rm. 7D-02 Has. 2 3 4 5 6 ACTION DIRECT REPLY PREPARE REPLY APPROVAL DISPATCH RECOMMENDATION COMMENT FILE RETURN CONCURRENCE INFORMATION SIGNATURE Remarks : Bill, Sorry this took so long; hope something like this takes care of it. Any changes you want to make, please do. Att: Draft Memo dtd 7 Jan 76 to Multiple Adses fr DDA, subj: First Class Travel. FOLD HERE TO RETURN TO SENDER "- OM: NAME:, ADDRESS AND PHONE NO. DATE E0-DDA 7D-26 Has. 1/8/76 FI