(Sanitized)CONTRACT [OVER COSTS]

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01240A000100140038-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 9, 2016
• Document Release Date: July 24, 2000
• Sequence Number: 38
• Publication Date: June 28, 1962
• Content Type: REPORT

Approved For Release 2001/09/04: CIA-RDP80-0124OA000100140038-6
UNITED STATES GENERAL ACCOUNTING OFFICE
CIVIL ACCOUNTING AND
AUDITING DIVISION
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25X1A9a Deputy Comptroiler, CIA
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Reference is made to your letter dated March 11+, I o
the Director, Civil Accounting and Auditing Division on the
subject contract. As requested by you, our ~_25X1A
Office audit staff ceased pursuing their examinations n o e
details of cost under the subject contract on or about /
March 9, 1962, Prior to this date, however, preliminary in-
25X1A5a1
formation had been developed which indicates that _ may 4/i
have realized excessive profits under contract No.
summarized. below information obtained from contractor's records
25X1A5a1 shows- that profits may have been as high as 57 percent
of cost rather than the estimated 10 percent of cost used in
contract negotiations.
Cost
Profit
Contract price
Ratio of profit to cos
25X1A5a1 Our staff was advised by a
Estimated
billings might add a few hundred dollar
set forth aaove.
Actual
that late
actual costs
The limitations on the GAO audits of CIA activities preclude
us from any examinations into this contract because it. is fin-
anced from unvouchered funds, and therefore the matter is re-
ferred to you in accordance with our telephone conversation
today, so that the Agency may make appropriate fos.low-up.
We would appreciate being advised of any actions you might
take on this matter.
E. L. Pahl
Supervisory Accountant
N
O
For Releas/
9/04 : CIA-RDP80-01240A000100140038-6
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