Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 9, 2016
Document Release Date: 
July 24, 2000
Sequence Number: 
Case Number: 
Publication Date: 
June 5, 1961
Content Type: 
PDF icon CIA-RDP80-01240A000100140066-5.pdf129.5 KB
Approved For Release 2001/09/04: CIA-RDP80-01240A000100140066-5 June 5, 1961 Subject: Termination of service agreement under which CIA assumed for l ational :security Council (N3C) certain accounting and relfited functions. tj'M Is na fb tio$ fe deafest P .M.1810* xh:o~mef n of CIA At the request of the CIS Comptroller, Messrs Keithline and Williams, GAO, met with the comptroller and. with , Sleoial Assistant to the Comptroller, at 1:00 F on June 5, 1961, stated that ii service agreement with the 1.SC, under which CIA has for a number of years erformed certain accounting end_ disbursing functions with respect to funds arpropria.ted to the NSC, was to be terminated effective June 30, 1961. - further stated that under a proposed arrangement worked out between CIA and NSC, it was contemplated that RISC would assume full responsibility with respect to accounting for and disba.rsing funds appropriated to NSC for fiscal year 196 and subsequent fiscal years, and that CIA would continue to l rocess ex1 enditsares and maintain all fiscal documents and records pertaining to fiscal year 1961 and prior fiscal year app opriations of NSG until the appropriations lapsed? ants the records were disj-osed of, The CIA Comptroller stated that he would prefer to i-elieve CIA of all responsibility with respect to the I'30 funds but that he had certain reser- vations regarding the administrative feasibility of transferring to PJSC at this time full responsibility for both the fiscal year 196.: and the prior year appropriations. He asked., therefore, whether,GAO would have any objection to the arrangement proposed oy Messrs Pahl and,,,.eithline, GAO, discussed the arrangement proposed by with [?1r, S. H. Savage, txAO Accounting; and Auaiting Policy Staff. He advised that the arranger;.ent arrearea to oe an administrative rather than a. policy matter, since there is no specific realignment o` functions l ursuant to legislation or e.,ecutive order, and that an objection 2)y GAO, therefore, would not be pertinent at this time, Mr. Savage stated, however, that the proposed oivision of resi,onsibil.ity with respect to accounting for fiscal year 1962 and. prior year appropriations is not a normal practice and may present certain administrative problems, He suggested, therefore, that CIA be advised to clear the procedure with the Bureau of the budget if it has not already done so. Mr. Savage also su4gested that the matter be discussed with the GAO Program ana Review Staff to ascertain whether GAO has been ref-uested to assist the NSt; in establishing its accounting system. In answer to Mr. Keithline's inquiry, Mr. W.N. Rowell of the Program and. Review Staff stated that assistance had. been requested by ISC and that Mr. A. Cromwell, a member of the program and tdeview Staff, had been assigned to assist MSC, Mr. Howell stated that as of June 5, 1961, however, Hr. Cromwell has been unsuccessful in obtaining from NSC a definite commitment for a ineeting with ar?rro-i riate NSC personnel, ReM ffe. _._ ~.` Review of Rids d recheet by RiA has defermtnid that Approved For Release 2001/09/04: CIA-RDP80-0124OA000100140066-5 The above information was ; assed on to - who stated that he would suggest the CIA Comptroller go forward with the Troposed arrangement, with the understanding that MSC could and would. assume at some future date the responsibility for processi tg exx.enditures and maintaining all fiscal documents and records pertaining to the fiscal year 1961 and prior fiscal year apx ropriations to NSC. S. J. eithline Supervisory Accountant Approved For Release 2001/09/04: CIA-RDP80-0124OA000100140066-5