(SANITIZED) REPORT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85B00552R001100110012-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 21, 2016
• Sequence Number: 12
• Content Type: MF

' Approved For Release 2008/06/04: CIA-RDP85B00552R001100110012-7
^ UNCLASSIFILu U IICF nN1Y " LunrIYCnIuAL L] SECRET
ROUTING AND RECORD SHEET
SUBJECT: (Optional)
FROM:
Director of Finance EXTENSION
NO.
DATE
14 Mar 1974 2
TO: (Officer designation, room number, and
building)
DATE
OFFICER'S
COMMENTS (Number each comment to show from whom
RECEIVED
FORWARDED
INITIALS
to whom. Draw a line across column after each comment.)
1. Deputy Director for
Management E Services 7D26 HQS
2.
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FORM USE PREVIOUS INTERNAL
3-62 610 EDITIr"'? n cGrDGT t971 rnuGinGUTIAI I-1
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M purLASSIFIED
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TIAL
14 MAR 1974
MEMORANDUM FOR: Deputy Director for Management and Services
SUBJECT Report
1. We believe that the
Report on their review of Agency audit practices represents
an objective evaluation even though somewhat boilerplate
in reflecting GAO general positions.
2. Our comments on particular recommendations of
interest or relevant to the responsibilities of the
Office of Finance follow:
a. The suggestions relating to the Commercial
Systems and Audit Division have been carefully
reviewed. We have established an MBO objective
for FY 1975 for the purpose of fully exploring the
recommendation for shifting the emphasis of audits
to provide more useful information for procurement
personnel. The remaining suggestions for CSAD
activities relate principally to technical aspects
of audit operations. In such matters there are
typically as you know differences of view among
professionals on the details of techniques to be
applied in particular situations. In any event
we will give full consideration to each suggestion
and modify our practice whenever it would be
beneficial to do so.
b. We have some reservation about the
suggestion that three year audit cycles for
financial and compliance audits would adequately
satisfy Agency requirements. In view of the
uniqueness of Agency activities we believe the
annual concept for financial and compliance audits
should continue to be observed at field locations
operating under Class A Accounting and Reporting
E.d.IMPDET CL B
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SUBJECT: I I Report
Procedures. We believe further there is adequate
justification for continuing the biannual concept
for installations operating under Class B or C
Accounting and Reporting Procedures. We agree
there is merit in the suggestion that the so called
"component audits" at HQS could be performed less
often than annually.
c. We believe it is significant and worthy
of emphasis to note the conclusion on page 26 that
the Audit Staff function should remain separate
from the CSAD function, with the Audit Staff being
responsible for the review of CSAD activities in
the same manner as any other Agency activity.
d. The most substantive recommendation of
the report is, of course, the suggested shift in
emphasis from financial and compliance auditing
to audits of the economy, efficiency and effectiveness
of Agency programs. The extent to which such a
change should be implemented is a top management
policy decision which in our view should be
contingent in part on the degree to which it is
judged such evaluations could be effectively
accomplished by augmenting current Audit Staff
skills through identification and assignment of
highly qualified professionals of other disciplines.
Such assignments of Engineers, Intelligence Analysts,
Senior Case Officers, Computer Specialists, Finance
Officers, Planning Officers, etc., could be on a
rotational or permanent basis. Assuming that the
requisite degree of independence would be maintained,
the rotational basis of assignment would seemingly
be more attractive to highly qualified professionals
who might wish to avoid permanent assignments
outside their areas of primary professional competence.
omas e
Director ofJ1inance
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