COMMENTS RE MONETARY OPERATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01370R000300040028-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: November 17, 2016
• Document Release Date: July 26, 2000
• Sequence Number: 28
• Publication Date: October 22, 1959
• Content Type: MF

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EZMORMUM FOR: Comptroller
SUBJECT: Comments re Monetary Branch Operations
1J59
1. This memorandum is the result of observations made while
being oriented to the operations of the Monetary Branch, Finance
Division.
2. The first effort was to become familiar with the organi-
zation of the Monetary Branch. As you are aware, the Monetary
Branch is operating as outlined in a memorandum on the subject
"Monetary Branch - Organization," which was submitted in February
1959. The proposed organizational structure is in line with current
operating procedures which are, in my opinion, efficiently meeting
all the demands placed on the Branch. Formal reorganization, along
the lines proposed, appears desirable.
3. A review of Audit Staff reports on Monetary Branch
operations was helpful. Current Audit Staff recommendations and
actions thereon are as follows:
Recomme ,tion:
Limit normal access to the Finance Duty Officer
Fund to the custodian.
Acton:
Proper safekeeping equipment has been ordered and
access thereto will be limited as proposed by Audit Staff.
Recommendation:
Continue efforts to deliver statements from covert
bank accounts directly to Industrial Contract Audit Division
for reconciliation.
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Act on:
Arrangements are being made for direct delivery to
Industrial Contract Audit Division of most of these bank
statements. The objective will be to make such arrangements
for all these statements.
Recommendation:
Expedite the study of means of reconciling amounts
certified as expended by the Director with actual expendi-
tures.
As you are aware, a draft of an "alternative procedure
for financing confidential funds operations" was prepared
by the Technical Accounting Staff in April 1959. If a new
procedure is to be adopted.. I believe the Technical
Accounting Staff proposal, together with the faster reim-
bursement procedure suggested in paragraph 4a, below, can
be the basis for a practical solution to this perennial
problem. However, as the Chief, Finance Division indicated
in routing the TAS memo to you, a decision to change the
present procedure can be made only after full consideration
of the legal aspects of the problem, as well as the practical
dangers of too closely restricting the disbursing and funding
of confidential funds activities.
4. Additional observations:
a. Regardless of whether there is a major change (such
as proposed by TAS) in the current procedure for financing
confidential funds operations, it appears feasible and
practical to have the Director's certification appear on only
a monthly summary voucher. This would eliminate his certi-
fying each time an agent cashier is reimbursed. An agent
cashier could be reimbursed on the signature of a certifying
officer of the Finance Division or the Fiscal Division.
- has some reservations about adopting this suggestion
unless it is a part of a major change in the procedure for
financing confidential funds operations.
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rrrMl.
b. The Treasury Disbursing Officer has suggested
that the receipt of agent cashier reimbursement checks
by Monetary Branch can be expedited by one or two days
by the use of a Finance Division certifying officer
instead of a certifying officer from the Fiscal Division.
This suggestion could be effected separately or as an
extension of the suggestion in paragraph 4a, above,
c. Payment to the Treasury Department for certain
income and payroll taxes withheld is now accomplished by
the use of an agent cashierts check. This necessitates
retaining a bank balance large enough to cover this check.
This transfer of funds can be accomplished with a journal
entry. The Monetary Branch has prepared a staff study in
which it is proposed that TAS develop the procedure which
will effect this change.
f. As you are aware, an emergency fund of- is 25X1A1a
held by the Monetary Branch Custodian. We should explore
the possibility of storing, at or near our Relocation
Center, a sizeable advance of currency and/or Treasury checks
which-'will be useable only in case of emergency.
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the possibility of further reducing the amount of the
advance. However, a careful review showed that such a
further reduction would involve the risk of being unable
to meet certain funding requirements. A small reduction
may be made possible by a faster reimbursement procedure
(as discussed in paragraph 4a) and the elimination of
the cash payment of income and payroll tax withholdings
(as discussed in paragraph 4c).
5. Monetary Branch personnel are constantly searching for im-
proved methods. This alertness and progressiveness is evidenced by
recent organizational and procedural changes which, in my opinion,
have resulted in improved disbursing and funding services and tech-
niques.
6. I was pleased to be allowed to become familiar with the
Monetary Br
and na
titularly appreciated the help 25X1A9a
given me by and the other employees of the
Monetary Brant .
Chief,
Industrial Contract Audit Division
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