AUDIT OF ENTERTAINMENT ACCOUNTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00755R000100080030-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: July 12, 2000
• Sequence Number: 30
• Publication Date: November 16, 1949
• Content Type: MEMO

~87'ANDAnL`FORM NO. 80. rT
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U,ffice Memorandum ? UNITED `'"gas ~?.'
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DATE: 16 November 1949
FROM : Budget Officer
SUBJECT: Audit of Entertainment Accounts
1. A review of the report submitted 28 October 1949 by the
Chief, Audit Division, Inspection and Security, with respect to
entertainment accounts applicable to the period 1 January through
8 September 1949 reflects that there is in general a prudent use
of confidential funds for entertainment purposes. The aggregate
amounts involved appear to be relatively small compared with the
potentialities as to the possible intelligence value acquired by
such expenditures.
2. On the basis of the report this office is basically in
accord with the conclusions of the Chief, Audit Division, I&S, as
set forth in paragraph 9 of his report. However, in order to be
in a better position to recommend or take action with respect to
specific items or categories covered in the report, it is suggested
that a request be made to the Acting Chief, Finance Division through
the Acting Chief, Special Support Staff, for specific comments as
to the circumstances and any further facts relating to those items
in the report 7nElch may appear to be unusual or somewhat out of
line. This is especially desirable with respect to sub-paragraphs
6 (a)(c), 7 (a)(b)(c), and 8 (b)(d)(e) and (f) of the report in
order to permit more firm recommendations or take action in coordina-
tion with the Acting Chief, Finance Division.
3. It is the definite opinion of this office that all CIA
officials utilizing entertainment funds should be required to deduct
from the total amount expended the sum which they would normally
spend for each meal in the same manner as is being done by the
representatives of the Contact Branch. When individuals are in a
travel status and drawing per diem, a reduction of 1/5th of the per
diem should be made for each meal taken during the course of enter-
tainment at CIA expense.
4. The chart presented under sub-paragraph 8 (a) of the report
and Table #1 attached to the report indicates that the expense per
individual is not abnormal although the fact that deductions are
made for the normal cost of the meals of Contact Branch personnel
apparently, in large part, occasions the average cost per person of
that Branch to be lower than those applicable to OSO and OPC.
5. The information set forth in sub-paragraph 8 (c) of the
report should. probably be directed to the attention of the Assistant
Director, Office of Operations, for information and guidance purposes.
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6. Based on infornal discussions with the Acting Chief,
Finance Division, and in view of the comments of the Chief,
Audit Division, IRKS, we wish to refrain from making specific
comments on some of the items covered by the report such as
the delay in submitting accounts referred to in sub-paragraph
7 (c) of the report. It is believed that the matter of amending
the regulations should be given additional consideration since
some improvement has recently been made by the Finance Division
with respect to compliance with technical requirements of the
regulations and inasmuch as the regulations permit a certain
amount of discretion on the part of the Certifying officer as
indicated in that portion of the regulations which states "or
other data acceptable to the Certifying officer".
7. It will be appreciated if comments are obtained from the
Acting Chief, Finance Division and forwarded to this office in
order that we may make more concrete comments for your considera-
tion.
E. R. SAUNDERS
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