INSPECTOR GENERAL'S SURVEY OF THE AUDIT STAFF

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-01094R000400060001-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 21, 2016
• Document Release Date: August 8, 2006
• Sequence Number: 1
• Publication Date: May 1, 1955
• Content Type: REPORT

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INSPECTOR GENERAL'S SURVEY
of the
AUDIT STAFF
May 1955
Officers Distribution
#1 - DCI
#2 - DDCI (destroyed 5/15/58)
#3 - DD/S
#4 - C/Audit staff
#5 - IG (destroyed 3/12/51)
ORIICDF Pages
5.
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--~ 1~ AY 2 3 1956
MEMORANDUM FOR: Director of Central Intelligence
SUBJECT : Inspector Generalts Survey of the Audit Staff
REFERENCES : (a) Memo dtd 27 May 1955 to DCI fr IG, subj: "Survey
of the Audit Staff"
(b) Memo dtd 5 Aug 1955 to DCI fr ADD/S, subj: "Inspec-
tor Generaltis Survey of the Audit Staff"
1. This memorandum is for your information. Particular attention is
invited to paragraph 5.
2. On 5 August 1955 an interim report (Reference (b)) was furnished
you, which outlined the steps taken up to that time to study and put into
effect the recommendations resulting from the Survey of the Audit Staff by
the Inspector General. The interim report advised that on nine recommenda-
tions action was completed; on two, action was partially completed; and seven
were being studied with a view toward subsequent implementation.
3. Action has continued on the two recommendations which were partially
completed at the time of the previous report:
Recommendations
Page 7, Recommendation #7: "The Chief of the Audit Staff
should review the coverage and requirements of overseas audits
and inspections and determine the necessity for assignment of
additional Field Audit Units and personnel to cover stations
in[ Africa and Latin America."
Action :
M overseas activities are now being audited or inspected
by Field Audit Units except the WH Area and a few small stations.
It is considered inadvisable to visit the latter, due to their
small size or the security hazards involved in arranging an
audit. The Chief of the Audit Staff completed on 5 December 1955
a review of all financial operations in South America, and during
April 19% made a similar inspection of all stations in Central
Amex-lea, It is lammed to
station a Field. Auditor in early in FY 1957 to provide
audit and inspection service To the WH field stations.
Recommendation:
Page 7, Recommendation #9: "The Chief of the Audit Staff should
give priority attention to the development of adequate records
management, particularly from the security standpoint . . . ."
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Actions
An employee, grade GS>12, has been designated as Records
Officer, and the files have been studied in conjunction with
the Office of Security, RI/FI, and the Records Management
Staff, in an attempt to improve the records control program
and afford better sterilization of files.
ii. Action has been taken on the seven reccnmendations which were pre-
viously under study:
Reco mendationt
image 7, Recommendation #5t "The Chief of the Audit Staff should
investigate the type of control being exercised over Agency funds
by subsidies, determine whether more effective audits can be made,
and submit appropriate recommendations to the Director."
Action:
This problem was studied by the Committee which reported on the
"Blanket Waiver" question. Consideration of means for providing
more effective audits for subsidy projects continues, not only
within the Audit Staff but also within DD/P and other elements
of DD/S.
Recommendations
Page f, Recommendation #$s "Field Audit Units should be on the
Table of Organization of the Audit Staff and not on DD/P over-
seas Tables of Organization."
Action:
Meld Audit Units have been transferred to the Table of Organi-
zation of the Audit Staff.
.Recommendation:
age 27-
., commendation #1)4: ". . . Chief of the Audit Staff
take such stern easures as may be necessary . . .
Senior Auditor, field Unit . . . .~'
Actions
The Senior Auditor referred to has been returned to headquarters
and reduced in grade,
-Recommendation:
Page 32, Scomnendation #(l): "The Chief of the Audit Staff
be given a full-time Deputy . . . ."
Actions
Further study has led to the appointment of an Assistant to the
Chief, Audit Staff in order to insure continuity. A full-time
Deputy is not required at this time.
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.Recommendations
Page '2, Recommendation ##(2)s The Property and Contracts
Audit Branch be . . . placed under the immediate supervision
of the Chief of the Audit Staff . . . until . . . work . . .
is on a current basis and adequate attention is being given
to audit of property accounts and industrial contracts."
Action:
As previously reported, the staff of this Branch was strength-
ened and as a result, great progress has been made in bringing
the work up to a current status. In addition, a new Chief for
the Industrial Contracts Audit Branch (Finance Division) with
extensive experience in the Department of Defense was employed
last Fall. Since his arrival many of the problems among the
Finance Division, the suppliers, the Office of Logistics and
the Audit Staff have been resolved, resulting in better rela-
tions inside and outside the Agency and more expeditious and
effective processing of documents. In view of the above, it
is believed that the need no longer exists to remove the
Property and Contracts Audit Branch from the supervision of
the Chief of the Headquarters Audit Division.
Recommendation-
Page 36, Recommendation #10: "It is recommended that the
monthly report of the Audit Staff to the Deputy Director
(Support) be revised . . . .e
Actions
Agreement has been reached with the Deputy Director (Support)
as to the type of report to be submitted to him by the Audit
Staff.
Recosnmendation-
Page commendation #2- "It is recommended that the Direc-
tor of Personnel, in conjunction with the Chief of the Audit
Staff and the Comptroller, establish a formal mechanism to insure
that members of both headquarters and Field Audit Units are con-
sidered for vacancies in budget-finance positions and vice versa."
Action:
This matter has been reviewed by the Director of Personnel and
the Support Career Board and it has been agreed that it is not
advisable to provide a formal mechanism to fill vacancies exist-
ing in the Audit Staff and the Office of the Comptroller by trans-
fer. The Audit Staff is now below its authorized strength and
opportunities for promotion are still available within the Staff.
However, in an exceptional case transfer may be authorized, and
one such transfer has been made since the Inspector General com-
pleted his Survey.
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Recommendation:
Page ~.tE ecommendation #7: "The Chief of the Audit Staff
review his decision that the Audit Staff does not have any
vital material for storage in the Agency repository and deter-
mine whether or not audit reports should be submitted to the
Agency Records Officer for microfilming and permanent storage."
Action :
The Chief of the Management Staff has reviewed the present
vital materials program of the Audit Staff and has agreed that
it is adequate.
5. Inasmuch as the major recommendations submitted by the Inspector
General have been accepted and action is completed or well along in most
instances, I am submitting this as a final report and will consider it as
such unless specific instructions to the contrary are received from you.
H. GAMS LLOYD
Acting Deputy Director
(support)
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