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December 9, 2016
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July 14, 2000
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December 12, 1975
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Approved ?F. r-Release 2-N2105lQ1-;-CIA,RDPrZ.9 0( 98A000700120017-3 [)fir ;-:47 12 MEMORANDUM FOR: Deputy Director for Administration SUBJECT Documentation of First-Class Air Travel Requirements 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 19.74; (copy attached) e. Memo to DDI, DDO, DDSJT, AO/DCI from the I)DA; 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: Directors, plus approve the use "1. states, in part, that only Deputy _ one single senior subordinate, may 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 Approved For Release 2002/05/01 : CIA-RDP79-00498A000700120017-3 -.Approved For Release 2002/05/01 : CIA-RDP79-00498A000700120017-3 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 authority without citing one of the specific as the STATINTL ustitications authorized by this regulation. First-class tra vel 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 Doputy 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. 1e , A dit Staff Office of Inspector General Attachment Distribution: Orig & x - DDA Approve `For Flefease' 11662/5/01: CIA-RDP79-00498A000700120017-3 Approved Fc t elease 2002/05/01 : CIA-RDP79-00498A000700120017-3 SLC ET REPORT OP AUDIT Agency Travel System REFERENCE a Por the Period 1 January 1972 - 31 May 1973 1. The Central Travel Branch (CTB), Certification and Liaison Division, Office of Finance is the central point where travel claims and related expenses are uniformly re- viewed and processed for all staff and contract ezmiployees. 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, OD&EE, OEL, and SPS are re- viewed and processed by OSA. These components are the subject of separate reports of audit. AUDIT OIIa1:RVN'I`TONS AND RFCOl~qMENDATIONS . 3. Travel vouchers processed by CTB 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 use of first-class air accommodations and the rate of per diem for extended temporary duty (TDY) need to be strengthened. Also, Approved For Release 2002/05/01 : CIA-RDP79-00498A000700120017-3 Approved Fo elease 2002/05/01 :. CIA-RDP79-00498A000700120017-3 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 Off ice of Finance are discussed and enumerated below. Pirst-Glass Air Accommodations 4. In many instances the necessity for the use of first- eddoraeither class air accommodations was not adequately justified 25X1A the travel order or travel voucher. 1 :1 Travel Regulations allow for the use of first-class air ac- coxmnoda'-ions 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 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 (OHMS). These authorizations should be ap- proved by OMS. Recommendations for the Agency 't'ravel Po] icv C 12iittcc a. Amend Agency travel regulations to require that specific justification for the use of first-class air accommodations, as stated in 1 :1 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 2002/05/01 : CIA-RDP79-00498A000700120017-3 SECRET Approved For Release 2002/05/01 : CIA-RDP79-00498A000700120017-3 c. Reemphasize to the appropriate officials the need for compliance with regulations concerning the justification and approval of first-class air accom- modations. Rates of Pe 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 c.ctended periods of TTY. 7. CT13 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 TOY 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. The lack of explanation on the remaining 31 vouchers precluded an effective review. by either the certifying officer or the auditor. Recommendation for the Agency, Travel Policy- Committee Amend Agency travel regulations to require that the travel order or travel voucher related to an extended period of TDY 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 8. CTB is responsible for the administrative control and safekeeping of GTR's issued to the Agency. Manual records Approved For Release 2002/05/01 CIA-RDP79-00498A000700120017-3 Approved For Release 2002/05/01 : CIA-RDP79-00498A000700120017-3 nrrrnETTCE b 14 August 1974 MEMORANDUM FOR THE RECORD SUBJECT: First Class Air Travel ility to Dir the with dis ect 1. In line with my res owhb h have notcbeen acc pted by Cher any Audit Staff recommendations 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. Z. 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 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 F `FZelbasp Q2/05/d1 ClA R0P79-S(Y4 8 ,'Q700120017-3 t,,. 1.urW a. v. w, a, yl? Appro l R&ezi9e 4042/0Sdd'i4 C4 DPJ-9-0Q49M000700120017-3 (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. (c) He favored a change of regulation to require that the individual approving first class air travel under 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. (d) He agreed that a First Class Blanket Air Travel Authorization seemed incompatible with the objectives of Donald F. Chamberlain Inspector General 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. cc: DDM&'S Jiector of Finance Chief, Audit Staff (~ r - t .~ 1 ' 1 1 t `1 Approved,,FgX,Rel se>.20a2/.85/{31-,; CIA=RDP79 OO498A0~0700120017-3 d J WO i. I li~W r+., CY y.h.Li YJ.?v wJ,. Approved Fort Release 2002/05/01 : CIA-RDP79-00498A00879 1?qQ ggl REFERENCE c ', OCT- 4 x ''NIORANi?UM FOR: Inspector General SUBJECT : First Class Air Travel REFERENCES . (a) Memo for the Record by the IG dated 14 August 1974 (b) Report of Auclit, Agency Travel System 1 January 1972 - 31 May 1973 1. l;`,'hile I appreciate receiving a copy of your h+scrnoran-dun, for the Record of 14 August 1974 concerning your discussions with. the DGI on the subject of first class air travel, I feel strongly that this subject warrants further attention prior to any action being tall cn on the recommendations made by the Audit Staff in the referenced Report of Audit. 2. Before going into the specifiers relatin to the. audit recorin- iiien4l.ations, I think it is important for us to divorce from our consideration of their recommendations the subject of the DGI'SS ,spacial authorities and abuses thereof. Whilo there may indeed do a residual feeling among some officers in the A ;ency that we need not follow some Government rules and regulations to absolute con . pliance, there is no evidence that this feeling has been a pplic..d in any si nificant degree to the subject of authorizing or approva l first class air travel. Ca the contrary, the A ency's record in the c;:atahlishment and implementeetion of policy and procedures r elatin to this specific subject can best be described as conservative. 3. Addressing the subject of first class travel in terms of normal Government policies, procedures and implementation, one finds that there are, in ee ence, only three basic requirements for permitting first class travel: Approved For Release 2002/05/01 : CIA-RDP79-00498A000700120017-3 Approved F1i Release 2002/05/01 : CIA-RDP79-00498A000700120017-3 a. le irst 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 accommoda- tions must indicate what these circumstances were on their travel voucher; and c. Authorizing officials or the traveler must restrict the use o rf first class travel to five specified instances. 4. When e.tistin9 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 r ecog n .ition. on the part of management. of its responsibility for precludin abuses. In the ensuing years the r eg.ulatory 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 adequa.t(.ly noted on his voucher the reason therefor). 5. As regards the specific recommendation of the Audit E'taff that the senior officials designated to authorize first class travel be required to stipulate specifically why they are so doin, we believe this requirement is not. only demeaning but also would result in little of an real significance as regards either certification or audit. These officers authorize and approve financial transactions of far greater significance throughout their vtorhing clay 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 jud grnent. 6. The recommendation that any first class travel authorized because of the physical condition of the traveler be coordinated with f7} is, in our opinion, both unnecessary and infeasible. Once