AUDIT EXCEPTION B-181(Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A000600210139-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: September 7, 2000
• Sequence Number: 139
• Publication Date: November 20, 1953
• Content Type: MF

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Approved For ReleaigWY/09 1RSP78-04718A000600210139-1
20 November 1953
MEMORANDUM FOR: Executive Officer, DD/A
SUBJECT : Audit Exception B-181 -
1. Mr. Houston has referred to me your request for a reexam-
ination of our memorandum of 30 October 1953, same subject, with a
view to providing more guidance.
2. This office has been unable to discover any statutory pro-
cedure or theory under which the Agency could proceed for financial
recoupment against the officer responsible for the "personnel gamble"
in this case. If it were decided by appropriate officials of the
Agency that the responsible person had been guilty of negligence,
discipline could be administered. This could range from reprimand,
through suspension up to 90 days, to termination depending on the
degree of negligence. The Agency cannot, however, require the re-
sponsible person to repay to the Agency the loss caused by his neg-
ligence unless the responsible person volunteers to do so.
3. Determination of negligence and the degree thereof must be
based on the facts and circumstances at the time of action viewed
in the light of reason and not on assumption from a review after the
fact. It is easy to assume from an unsatisfactory outcome that there
must have been negligence. It is very difficult to determine what
the mythical reasonable and prudent man would have done in the same
circumstances. In this case, the jury is the DD/A.
As - 4001
Approved For Rel$ggigg(*/Q? f'MWI46WP78-04718A000600210139-1
 Approved For Release 2002/06/26 : CIA-RDP78-04718A000600210139-1
TRANSMITTAL SLIP
3December l95
(Date)
Colonel White
BUILDING
I ROO_MN 0.
As you point out, it is impos-
sible to make the responsible indivi-
dual pay, in view of General Counsel's
opinion. Therefore, recommend
approval of the Write-off and signa-
ture on the attached memorandum.
SEP 1946 36-8
EXTENSION