LEGISLATIVE AND ADMINISTRATIVE AUTHORITY FOR PAYMENT OF TRAVEL EXPENSES, ALLOWANCES, AND OTHER FRINGE BENEFITS TO AGENCY EMPLOYEES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000500100001-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 15, 2016
• Document Release Date: September 27, 2002
• Sequence Number: 1
• Publication Date: August 23, 1967
• Content Type: MF

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Executive Registry
OLC 67-0175
23 AUG 196T
MEMORANDUM OR: Director of Central IxiteUience
SLIBJILCT: l_egislative and Administrative Authority for
Payment of Travel Lapenees. Allowances,
and Other }"riage Benefits to Agency E2nployeed
I. This memorandum contains a recommiendation submitted for
approval by the D4rector of Central Intelligence. Such recommendation
I. contained in paragraph 16.
Z. Subsequent to the demise f OSS as a leant entity by virtue of
Executive Order 94Z1 in late Il45 and prior to the period when the Agency
was established by statute, the procedures for financing' the interim.
activities of the SSU aid CIG resulted from agreements by the principal
agencies of Government concerned. 'These included the Bureau of the
Budget, War Department. State Department. and the General Accounting
Office. 3ince the funds were hidden in appropriations of other depart/Lents.
the General Accouating Office approved auditing arrangements while at the
IMMO time urging that appropriate law be passed so that the General
Accounting Office would have legal standards against which to measure
expenses.
3. During this period, as during 055 days a portion of the funds
were .e-called ocivouchered funds which were accounted for solely bs
certificate of the Director. However, a goodly portion of the funds were
voschered funds for normal administrative expenses and were subject to
audit. Consequently. the General Accounting Office 14.ainta1sed audit of
the vouchered funds in much the same fashion as they did for other agencies
of the Government. It was for these vouchered funds that the General
Accounting Office pressed for a legislative standard.
4. In the proposed bill to establish CIA there wa, included
laseuage which amounted to permanent appropriation language. This
provided for the concept of vouchered and unvouchered funds. Provisiond
0Gc Has Reviewed
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ware also made for prDcLzre.eAt authorities and for travel *ad overseas
allowances for Agency personnel. These specific and detailed authorities
ware later dropped froa the proposed bill and the Agency thereafter was
nstahlished and Avon its mission in the National Security Act of 1947.
b. In 19? the General Accounting Office advised the Congress
that it did not believe the existing audit by the General Accounting Office
of CIA's veuchered funds was adequate since they were unable to apply
the broadened concepts of cou.prehensive audit which they were applying
to other agencies. The Congress requested that the General Accounting
Office and the Agency re-examine this problem most carefully to see if
some satisfactory solution could be reached within the security require -
inmate of the Agency. Eventually, after thorough review of this. the
General Accounting Office reported again to the Congress that it believee
that it could net conduct an appropriate coxr,prehensive audit progrart_ in
the Agency within the security tilts set by the Agency and, therefore,
they proposed to discontinue all audit. The Congress approved this action
In. 1962.
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Since the question of travel and allowances and other fringe D2fl5
is a dynamic subject. the Foreign Service has continuously updated
their authority, proposin. amendments in every session of Congress
and gaining approval of Congress in almost every 11.111161011. Certain
specific improvements by Foreign Service. such as leave for rest and
rehabilitation purposes. slightly more liberal payment of medical
expenses for employees, and a linlited medical care program for
dependents of enp&oyees oversee
OGC
S. b the current Congress there are a number of improvements
Service authorities which have been passed by the Senate.
s were explained as being essential fob. loreign Service
ng in Vietnan, and other hostile areas. As in the case
of the other improvernenti rnade in the Foreign Service Act these will
be available not only to Foreign Service personnel but also to AID end
USIA personnel. As a matter of fact, similar authorities were approved
by both Houses in the previous Congress but for other reasons the law
ia which these provisions were contained could not be settled in conference
and the hills died with that Congress.
9. On four separate occasion.'iu 1954,1962. i%3, and 1966-*
attempted an over-all updating of section 4 with no SIACC011*.
ameadmenta proposed in 1966 were approved by the House but received
a in the Senate, In ILO effort to secure early action on these
as. the Agency reintroduced in the current Congress the exact
h had passed the House lest year. Therefore, the Agency is in
the position of asking for approval of some updating airownehrients which
are new some two years old and in view of the so-called Vietnam srriiknd-
moat* will soon be out of date.
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CALCLISib : kw (17 July 67)
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FORM NO.
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I AUG 54 WHICH MAY EE USED.
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T-UNCLASSIFIED
CONFIDENTIAL
SECRET
CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
D/PPB
0
P
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks:
I concur in I Eecommendation
and also recommend that the Bureau of the
Budget be advised before the fact.
It should be noted that implementation
of this proposal will involve major revisions
of our regulations.
/s/ J. S. Earman
FOLD HERE TO RETURN TO SENDER
FROM: NAME, ADDRESS AND PHONE NO.
DATE
Inspector General
)1. ? : - -- - II
I i - ti - : 9 : e -
7/27/67
: : :.: -.:.: :
UNCLASSIFIED
. .
CONFIDE ?
1,1111
FORM NO. 037 Use previous editions
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