HOUSE COMMITTEE ON ARMED SERVICES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01240A000100140089-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: July 24, 2000
• Sequence Number: 89
• Publication Date: May 15, 1959
• Content Type: MFR

Approved For Release 2001/09/04: CIA-RDP80-01240A000100140089-0
:4'59
Vol.= Comailtao en Prose 8erriees
In complies.e with the requeat oamonsicated to ma br Mr. John
nartigy, I want to the office of the committee on Armed Services,
Souse Offiee Building? Room 3.11,, to meet with Mr. Hobert ?.;. 8:art,
Chief Counsel, on our audit activities at the Ceatral IntsIligoebe
Ammer. Ibis stestias had bees broadeeed to an emsoutive *teflon of
%be debeennittee as Central IntalLigeses Agesoi, of Which i'sul J.
Maw is Chairman. Othorumeteru of the Committee in atteedance
ware Messrs. Charles R. Densett, Florida, Geoige Iluddlestoo, Jr.,
Alsitnea, A. Paul Gitebia, Berth Carolina, sad Freak C. Ossacos, Jr.,
Mew Jersey. Mr. Smart intemmatam that James I. Vas zandt, Paomsylvani
end ob Wilma, California, art mIso 8ubsommittee eambers but mull mt
&that/bagasse of abeam. from tbe city.
At the cutest Mr. Smart read a statement en his 1,10411111411 with
me
on Memuh mad with Mr.Mdmerd Cheepall =Merely 1.2, mad he also
enmeinMWAlwiefly ankle meeting* with sins:tale of CIA. Fc
these eesmeets he summarised, his oeselweiems MkLidttmeedly were (1) that
OW wee net waking a "'omelet* audit" of Central Intelligence Agleam
and Ott the two auditors st tbs eit: had someWhat limited capabilities
Ar diode end experi i
ences for the broader type audit, and (2) that Contr.:11
Intel/tomes Agony Lid sot have an iateraal review star for the review
of vealhered sioneditures, and pleeed ratanss on the GAO auditors at the
With rawest to his meeting with Mr. 1happs11? Mr. teart attributed
comments by Chappell that be regarded the personae' at CIA the best
qualifisigmeip that he had dealt with in his years with the Glovers.
memt end the* they were doing an woollen% adatictstrative ,leb. Mr. Chappell
wee also said to have stated that exespt for a relieve ar6 *valuation of
the CIA eropsnisatioa the present audit, insofar as reviaw of administrative
prosaism applleable to vesehered expenditures Is teneerned, conformed
1paeral.411th thoes perfOrmed at other swedes by the Geo.
YoLUndeqg Mr. Smart's atatemeat the Chairama sad each of the Rub.
eammittimpannhers intim reiseteanelbertaripmmideme at our audit
reegassittlities endow audit eetivities. The larger mulber of these
qusettess van rased by the Chaim& mad by Messrs. ditehia and earners.
In ecuiesse, the Subeemmittes members were tell the* our milt at CIA
denelete priserily attest, of vendors* expenditures and that mey
expeediturea de met seem to seaters with legal requirements
er to the GAO desisione applisable to empeediteres by ether agonies
rederenee of them are mede to the Comptroller orgmnisatioa at CIA
Itormsnot Es*
olw tt hi bw CIA haS
:b to dechessi
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eres
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ger oath eorreetive elation as thev may Choose to take. Geacrally it
hale be our experienee that this aremminstiam to ?erre:attys.* action
ribut we did net knew Whether expenditures removed free the Yaw:bared
',Gisesifisation were subsseuently reimbursed from tho unvomobered fteds.
(Me difference between our audit at CIA sot at ot4er ameates was
desewlhed to the Subeemalttec itud it UAW stated tkat mt CIA ve had mot
Nods a review and evaluation oa the adaimititrative procedures and
yeastieee and their comfereseee with agemey poii, inclAirg not
only the voudhered but also tto unvoueherat sapemdituree. 7e:zither,
the view woe expremood that unless our sudit le broadened by &snide.
seat of staff of hieher grade end experience we acraceed t, diamatieme
hewing agy staff =fibers at ti CI! alto.
Conaittee emnbars iodinated .tility VOTO reeeptive to a broademed
audit co that they would be ieferes4 by an outilde group no Anther or
Lot the adminietrative pelt:dee, prostleos sad proeedures art adeemet,
sad that they Mad =east the tireeter of the ageney to be litevise
interested in having similar reviews by a irony outside kis immediate
osgenizetion. The Chairman, and eartioularly bleare. Mob/a and
Ossers, stated specifically that thoy would like to be aneqrsd en how
wall the snow is doiag its jet, administratively sad that tne ftbeenlittee
to furaiebsd vith Ubatever raccerrentiallone se Nov have !Pm- eIrreetive
cation on deficiencies and vealstiess. Als4, vhether or notaneedment
Booties 10(e) cdrCeateal Ietiiis kat of 1949 eucuyrsItten froc
? GAG audit email& be considered.
. %ha meeting eemoluded with a re:oust trf. the Chairman that the matter
bs diesaseod b7 me with the Comptroller Cameral mod that thweafter to
nad the Chief Camel vould either mime to he Gencrel fficeaunting Office
to see the Comptroller General or 'Ile wati.14. Iv invited to see the Chairmen_
.rollowing the aseting? however, Hr. Snort emossted 'Ott after talking
to the Comptroller General a letter be drafled to Chaireen Kildey over
the signature of the_Comptroller General brIefly conntsting on the INSVArb
al: ear audit at CIA at the present tins end our recommendations vith
waved to our Mere aMit..xr seek u latter a reply oculi be gives
by the Chairmes emi thereby previiirg m roma reamed on tho matter.
Aseoustinr
LttnrforilliCa
to: Ur. Nero% dAPO
Approved For Release 2001/09/04: CIA-RDP80-01240A000100140089-0