PROPOSED HEADQUARTERS NOTICE-INTERNAL ACCOUNTING AND ADMINISTRATIVE CONTROL DIRECTIVE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85B01152R000400520044-1
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: December 21, 2016
• Document Release Date: May 27, 2008
• Sequence Number: 44
• Publication Date: October 4, 1983
• Content Type: MEMO

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'ROUTING AND TRANSM&L SLIP
Date 10/4/83
TO: (Name, office symbol, room number,
building, Agency/Post)
Harry E. Fitzwater
Initials
?
Date
3.
4.
IL
ction
File
Note and Return
pproval
For Clearance
Per Conversation
s Requested
For Correction
Prepare Reply
irculate
For Your Information
See Me
omment
Investigate
signature
Coordination
Justi
REMARKS
Harry:
The attached package has been revised to include
all of *e OGC's comments and recommendations.
Regarding the comment by
ICS certification, we feelC# ey should go through the
Executive Director-. Since the DCI heads both the
Agency and the community organization, they are subject
to the same internal procedures for IG inspections,
financial audits, and management controlls which any
component of the Agency is subject to. In the
management of the community--staffs this is properly
an item of common concern which the Congress has
approved and does not in any way impinge upon their
Cont'd on back
DO NOT use this form as a RECORD of approvals, concurrences, disposals,
clearances, and similar actions
5041-102 OPTIONAL FORM 41 (Rev. -76)
Prescribed by GSA
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independence from CIA. Therefore
the
,
certification should go through the Executive
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? ADMINISTRATIVE-INTERNAL LID ONLY DD,AA strtr
!3 -30 d
4 OCT ]983
ADPP 163-83-48
MEMORANDUM FOR: Director of Central Intelligence
Deputy Director of Central Intelligence
Executive Director
Inspector General
General Counsel
Deputy Director for Administration
FROM: Allen R. Elkins
Director of Finance
SUBJECT: Proposed Headquarters Notice - Internal
Accounting and Administrative Control Directive
1. Attached is a recommended Headquarters Notice which
would prescribe Agency policies and standards for internal
controls as required by the Federal Managers' Financial Integrity
Act of 1982 (PL 97-255, approved 8 September 1982). The intent
of internal controls is to reasonably ensure effective control
over, and accountability for, assets and make certain of the day-
to-day involvement of Agency chains of command in the process of
appropriate authorization and approval, consistent with standards
prescribed by the Comptroller General.
2. As further required by the Act, the Director of
Management and Budget has established guidelines that the head of
each executive agency shall follow in evaluating the internal
control systems of the Agency to decide whether the systems are
providing the necessary effective control and accountability for
assets. By 31 December of each year (beginning in 1983), the
head of each executive agency, based on the foregoing evaluation,
shall prepare a statement on whether the internal control systems
of the Agency are in compliance with the requirements of the Act.
If the head of an agency decides the systems are not in
compliance, the statement shall include a report identifying any
material weakness in the systems and describing the plans and
schedule for correcting the weakness. All statements and reports
will be signed by the head of each executive agency and submitted
to the President and Congress.
3. Essentially, the Federal Managers' Financial Integrity
Act is an expansion of the Budget and Accounting Procedures Act
of 1950. It is a positive effort to transform the expectations
of the 1950 Act into reality by a fixing of personal
responsibility and definition of requirements for reducing fraud,
improving management controls, and eliminating errors in the
administration of Government programs. This Agency is in
substantial compliance with the requirement for systems of
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internal controls through its organizational structure and
regulatory system. The assignment of individual authorities and
responsibilities to senior Agency officials for-activities within
their organizations provide the on-going planning, direction, and
control mechanisms for evaluation of the effectiveness of our
systems throughout the Agency.
4. The OMB guidelines require a periodic review of the
susceptibility of a program or function to the occurrence of
waste, loss, unauthorized use, or misappropriation. Such reviews
are known as vulnerability assessments and are the mechanism with
which an Agency can determine the relative potential for loss in
programs and functions and schedule internal control reviews and
related action. Although not specifically addressed in the
proposed notice, it is intended that these assessments be
accomplished by the Executive Committee based on their own
working knowledge of the programs and administrative functions,
their general impressions about the control environment, and the
effectiveness of existing controls. This can be done at periodic
sessions of the Committee called to review selected subjects such
as operational approval and regulatory systems, etc. The require-
ments for vulnerability assessments are that: (1) the process and
the major considerations in determining the relative rankings are
documented and (2) the Agency head will approve and defend their
rankings.
5. In sum, publication of the proposed notice will
formalize the structure and methods of the Agency's internal
control systems. It provides for annual statements, assessing
the operation of these controls, to be prepared by the Directors
of ICS and NIESO, Deputy Directors, Heads of Independent Offices,
and the Director of Finance. The statements will be submitted to
the Executive Director through the Inspector General and will
serve as the basis for your report to the President and Congress.
A proposed internal control statement has been prepared as an
attachment to the notice. As required by the Act, it includes a
statement concerning conformance of the Agency accounting system
to the principles, standards, and requirements of the Comptroller
General.
6. Given your approval of this document and any revisions
that may be required, I will forward the final version to
Regulations Control Division, OIS, for processing and publication
under your signature.
Attachments As Stated
ADMINISTRATIVE-INTERNAL USE ONLY
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SUBJECT: Proposed Headquarters Notice - Internal
Accounting and Administrative Control Directive
'Deputy! bi/rect6 for Administration
Date
2 3 SEP 1983
General Counsel
26 S .-"3
Insp.ec
d
Executive Director
Deputy Director of Central Intelligence Date
APPROVED:
Director of Central Intelligence
Distribution:
0 - Return to D/OF
1 - DCI
1 - DDCI
1 - EXDIR
1 - ER
1 - IG
1 - GC
- DDA
1 - D/OF
3
ADMINISTRATIVE-INTERNAL USE ONLY
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