REPORT OF AUDIT APPRAISAL: FINANCIAL RESOURCES SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00933R000100290003-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 11
• Document Creation Date: December 15, 2016
• Document Release Date: August 25, 2003
• Sequence Number: 3
• Publication Date: September 29, 1981
• Content Type: MF

Approved Fgr,Release 2003,3' lo M4-009%UR000100290003-9
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29 September 1981
MEMORANDUM FOR: Director of Finance
Director of Data Processing
VIA: Inspector General e_~!_
I I
iie Audit Staff
SUBJECT: Report of Audit Appraisal: Financial
Resources System
1. Attached is the subject report for your information.
2. This report summarizes the background, scope and
results of an audit appraisal of the Financial Resources
System. Please advise me of action taken on those recom-
mendations contained in the report which apply to your
office.
3. We wish to express our appreciation for the coopera-
tion and assistance provided by members of your offices during
the audit.
Attachment:
As stated
Distribution:
vRfig. - Addressees
1 - DDA
1 - O/Compt/BMG
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REPORT OF AUDIT APPRAISAL
Financial Resources System
31 August 1981
SUMMARY
1. The Financial Resources System (FRS) generally pro-
vides Agency managers with reliable and timely information.
Attention to opportunities to remove deficiencies and imple-
ment worthwhile enhancements has kept the FRS current in
changing technological and budgetary environments. However,
all of the necessary documentation has not been similiarly
kept current. This report therefore contains comments and
recommendations concerning the need to update the user's
manual and certain system documentation.
2. The audit was conducted to determine the effective-
ness of controls and procedures associated with the operation
and maintenance of the FRS to ensure the timely production of
reliable information. The data preparation, error correction,
and month-end processing procedures were observed and evaluated.
Users of the FRS were interviewed to determine their satisfac-
tion with the system. User and system documentation were re-
viewed for completeness and accuracy. FRS computer programs
were not reviewed.
3. The FRS is a sophisticated computer application
designed to provide Agency managers with timely and reliable
information to support their budgetary and fiscal respon-
sibilities. The Office of Finance (OF) coordinates and con-
trols all aspects of the system's operation. The Office of
Data Processing (ODP) programmed the FRS during the early
1970's and, as requested by the OF, provides continuing tech
nical support to the operation and maintenance of the system.
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CONFIDENTIAL
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DETAILED COMMENTS
User Documentation
4. The FRS user's manual is out of date. It has not
been updated since June 1976, even though there have been
many changes affecting FRS since then. The OF has issued
memoranda to users concerning changes to the FRS; however,
they do not include all changes and are not easily incor-
porated into the user's manual. As a result the OF/Data
Base Administrator has to counsel budget and fiscal officers
who have problems or questions concerning the changed uses
and capabilities of the FRS.
S. Although the OF is aware of the need to update the
user's manual and has been working on it intermittently, an
intensified effort is needed.
Recommendation #1 (For OF): Update
and reissue the FRS user's manual.
Recommendation #2 (For OF): Establish
procedures to keep the FRS user's
manual current.
System Documentation
6. A review of the ODP's technical documentation of
the FRS disclosed that production manuals are complete and
current, but that portions of the application and program
manuals are incomplete or out of date. Items requiring
revision include flow charts, data descriptions and data
cross-references. The programmers who maintain the FRS
rely on the application and program manuals to assess the
feasibility and impact of proposed changes and to identify
and resolve problems as they occur. Incomplete or out-of-
date documentation complicates the programming effort re-
quired to maintain the FRS.
Recommendation #3 (For ODP): Review
the application and program manuals
of the FRS and update as required.
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REPORT OF AUDIT APPRAISAL
Financial Resources System
DR i
31 August 1981
SUMMARY
1. The Financial Resources System (FRS) generally pro-
vides Agency managers with reliable and timely information.
Constant attention to opportunities to remove deficiencies
and implement worthwhile enhancements has kept the FRS cur-
rent in changing technological and budgetary environments.
However, all of the necessary documentation has not been simi-
liarly kept current. This report contains comments and recom-
mendations concerning the need to:
- update the user's manual.
- update system documentation.
SCOPE
2. The audit was conducted to determine whether controls
and procedures associated with the operation and maintenance
of the FRS are effective to ensure the timely production of
reliable information. The data preparation, error correction,
and month-end processing procedures were observed and evaluated.
Users of the FRS were interviewed to determine their satisfac-
tion with the system. User and system documentation were
reviewed to determine their completeness and accuracy. Computer
programs of the FRS were not reviewed.
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BACKGROUND
3. The FRS is a 'sophisticated computer application
designed to provide Agency managers with timely and reliable
information to support their budgetary and fiscal respon-
sibilities. The Office of Finance (OF) coordinates and con-
trols all aspects of the system's operation. The Office of
Data Processing (ODP) programmed the FRS during the early
1970's and, at the direction of the OF, provides continued
technical support to the operation and maintenance of the
system.
DETAILED COMMENTS
User Documentation
4. The FRS user's manual is out-of-date. The manual has
not been updated since it's issuance in 1974 even though many
changes affecting use of the FRS have been made. The OF has
issued memorandums to users concerning changes to the FRS;
however, the memoranda do not include all changes and are not
easily incorporated into the user's manual. This situation
has necessitated the OF/Data Base Administrator to devote time
to counseling budget and fiscal officers who have problems or
questions concerning the changed uses and capabilities of the
FRS.
The OF is aware of the need to update the user's
manual and has been working intermittently to do so. However,
an intensified effort is required.
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Recommendation #1 (For OF): Update and
reissue the FRS user's manual.
Recommendation #2 (For OF): Formalize
procedures to keep the FRS user's manual
current.
System Documentation
6. A review of the ODP's technical documentation of
the FRS disclosed that production manuals are complete and
current but that portions of the application and program
manuals are incomplete or out-of-date. Items requiring
revision include flow charts, data descriptions and data
cross-references. The programmers who maintain the FRS rely
on the application and program manuals to assess the feasi-
bility and impact of proposed changes and to identify and
resolve problems as they occur. Incomplete or out-of-date
documentation complicates the programming effort required.
to maintain the FRS.
Recommendation #3 (For ODP): Review
the application and program manuals
of the FRS and update as required.
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 ADMI[~ISTRA` IV I TER AL USL WVV.Y
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14 August 1981
MEMORANDUM FOR: Director of Logistics
VIA: Inspector General
FROM:
ie u it Staff
SUBJECT: Report of Audit, Executive Dining Room,
For the Period 1 December 1979 - 30 June 1981
1. Attached is a copy of subject report.
2. We appreciate the cooperation and assistance
extended to the auditor.
Attachment:
As Stated
Distribution:
Orig. - D/LOG
1 - DDA
1 - D/Fin
0 D P
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 AMININIRAIIVHNJLRNAL USE ONLY
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REPORT OF AUDIT
Executive Dining Room
For the Period
1 December 1979 - 30 June 1981
BACKGROUND
1. The Executive Dining Room (EDR) provides a private
dining area for senior Agency officials where classified
discussions may be held. In addition, EDR caters official
and nonofficial Agency functions. The Office of Logistics/
Logistics Services Division is responsible for EDR finan-
cial and personnel administration. A cleared manager, who
is an independent contractor, and eight Agency staff employees
operate the EDR.
SCOPE AND OPINION
2. We have examined the statement of financial posi-
tion of EDR at 30 June 1981 and the related statements of
operations and changes in financial position for the nineteen-
month period then ended. Our examination was made in accord-
ance with generally accepted auditing standards and included
such tests of the accounting records and other auditing pro-
cedures as we considered necessary under the circumstances.
3. In our opinion the accompanying financial statements
present fairly the financial position of EDR at 30 June 1981
and the results of operations and changes in financial position
for the 19 months then ended in conformity with generally
accepted accounting principles applied on a consistent basis.
AUDIT COMMENTS
4. The Executive Dining Room continues to be administered
in an effective manner, with financial records maintained in
accordance with acceptable commercial practices. Observations
pertaining to various administrative matters, such as taking
inventory, maintaining subsidiary ledgers, and preparation of
financial. statements, were discussed with responsible individuals
and resolved during the audit.
5. This report contains no recommendations.
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 ADMINISTRATIVE-INTERNAL USt UNLY
Exhibit A
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Executive Dining Room
Statement of Financial Position
30 June 1981
ASSETS
Cash on Hand $ 200
Cash in Bank 15,979
Accounts Receivable 8,617
Food and Commodity Inventory 7,089
Furniture and Equipment $26,325
Less: Accumulated Depreciation 26,325 -0-
LIABILITIES AND FUND BALANCE
Accounts Payable
Fund Balance
$31,885
$11,166
a/ 20,719
Total Liabilities and Fund Balance $31,885
a/ Fund Balance at 1 December 1979
Add: Net Income (Exhibit B)
Fund Balance at 30 June 1981
Approved For;R4W .
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011003-9
$19,450
1,269
$20,719
 ADMINISTRATIVE- INTERNAL USE ON'"Y
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Executive Dining Room
Statement of Income and Expense
1 December 1979 - 30 June 1981
Income:
$ 96,081
Meals
859
42
Special Functions
,
9,775
Meals Surcharge
10,122
Coffee Sales
224
1
Miscellaneous
,
304
$160,365
on Overdue Accounts
Finance Charges
Cost of Food and Commodities:
Opening Inventory, 1 December 1979
6,782
118,798
Purchases
125, 50
30 June 1981
ventory
I
i
7,089
118,491
,
n
ng
Less: Clos
41,874
Gross Profit
Less Operating Expenses:
Special Function Overtime Re-
18,036
imbursement
Miscellaneous Supplies and
13,266
-Services
8,226
Laundry
077
1
40,605
Equipment Repairs
,
$1,269
Net Income (Exhibit A)
$278,293
Paid by the Agency:
t
C
s
os
Salary
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ROUTING AND RECORD SHEET
SUBJECT: (Optional)
Report of Audit Appraisal: Financial Resources System
FROM:
Audit Staff
EXTENSION
NO.
----
12 01 Key Y
29 Sept 1981
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.)
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FORM 61 O USE PREVIOUS
1-79 EDITIONS
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