(Sanitized) AUDIT REPORT, 1 JANUARY 1956 - 29 FEBRUARY 1956, SHORTAGE IN GASOLINE FUND ($524.41)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A000200200088-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 12, 2016
• Document Release Date: March 26, 2001
• Sequence Number: 88
• Publication Date: February 29, 1956
• Content Type: MF

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OGC Has Reviewed
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y 1reetor (SUpport)LO--
1isdit eport, 1 %filen'airy 19% February 191?6,
age in ascIitte Fund 01;24.4
ould any one or all of the finance officers or Chiefs of tat ion
involved toe held pees:alertly liable for the shortage ofL2 4.4l
25X1A6a in the ogee ins fund or should the reetint be ar f ea o is
accordance with CF N 1.4 c.
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ILLEGIB
2. FAC1
S.
In the prang of 1961
bred the selling of G
station personnel.
l.f of ?)tation, anther
',line and kerosene to
)1 3.
U. Mr. I Inflame officer 3afth I%2
directed to collect for and amount for the sale o
patrolled's products. lab A, paragreph 44.
c. The 8310144ti received from the sale
not recorded in the 'official
March 1956 when the prectice was d
peracireph 1 C.
d. Xr.j
a
r. Iin Mare 9S2 and acted as filmset officer ontil I
the arrival ofI 6 the desigeoted finance office
in March 1%2. 4 that tiae, gir. was designated custod
of the gasoline feed an operatec in that capacity until Apri
19C4. labs -ii and t.,..
was
ese
of petroleum 0aodicts
loam:181 records *ntll
seentinned. 'lei) it ,
a finance clerk. tei over from
0. kr.succeeded 4r. as Chief of 3 a
19 .)
as aware that personnel
ti
J sonnel were permitted to
pore se petroleum products from AiAncy stocks and that this
continued until in More% 19St a local oil company permitted
personnel to perches, duty?free issoline. Be states that he
was unaware that the collections were net recorded in the
official ledgers of the Ageacy. lab C.
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In 4pr
office
by
1W4. Wr.I I assumed the duti
sad so operated aatil April
the present incumbent.
ing finance
he was relieved
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5. he feeds receIved from the sale of the petroleum
were ased as:
1 nteammodetion exchange for Ageocy employees.
4. tmergeacy payment of bills.
2. Mitieellenews parments to personnel such as for travel
advances. lab u. paragreph II C.
k. Us 31 Am,: 19f after the
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recorded the ram pt of
I. the present finance
1. lab
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practice was discontinued.
and on 17 *ay 1461.
?truer recorded the receipt of
paragraph F.
? 4 ? Isaeceeded ;tr. as Chief of
Statiee on 42 Joly 1965 sad was Chief of Stat.ion when the
aedit which developed the existeece of the shortage was made.
. This aedit of the records of the gasoline fund maintained at
the station indicated that petroleum products valued at
$9.176.94 were sold while only 37,dbf.d0 had been taken into
the official accounts. a difference of .310.11. he auditor
allowed credit for approved travel claims for ?1:7tt.7t/ which
had not bees reimborsed with official feeds, thvb redneieu the
set shortage to ebk, peleulreph
. pi:41,14SifiNt
a. k:overnment-owne *loom ?redact ere sold tol station
personnel and the aooats collected were not iwe1oeii La the
official station funds. Instead, the funds were osed to pro-
vide escommedatioe exchange facilities for station personnel,
for the emergency payment of bills with a later refund to the
gasoline OCCOUSt sad for miscellaneous payments to personnel
with subsequent reimbursement to the account. :lawyer, ode
vette contrel of the fund was not maintained as is evidenced
by the audit which revealed that the feed had not bwe
properly reimbersed for $7a6.70 sad an unexplained shortage of
$J44.41 exists.
b. Oho was responsible fee this s tostioe Should say one or all
of the station chiefs or finance officers involved he held
pecuniarily liable for this shortage?
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t. The record ad/cites that tr. Chief of StatIon,
approved the sale of ?overemeet?oseed geseline. He claims
25X1A9a that Mr. thee fie-ease officer, was directed to collect
for and *mount for the amomets collected. He also states that
25X1A9a 1--1,14* specifically directed to "account for such funds in
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the prescribed monner". Why did not follow prescribed
procedures conga be readily determined as he is as leaver in
the employ of the Ageacy.
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25X1A9a 4. er. Chief of Stotioe 19 y 1
1955, past ec tee vied !evolved, states he was *s inewer* th
li952 2 2 1
the proceeds from the sale of gasoline were sot recorded la
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succeeded by Iduring whose term the dis? 25X1A9a
crepancy was discovered and corrective action taken.
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1 finance officer Mush 1952 April 1954.
isdiestes Gab 3) the,. he breeght the getter to the attention
to change the !; sad after discussion,
procedures. No indiestioe wee given
of the Chief. on. It ass decided not
which Chief of Aistioe was made mere of the practice.
25X1A9a f. Mr. . who, ender the direction of gargy 25X1A9a
1962 April 1964 *ad as actieg name officer April 1954 ?
SI march 19&5 haedled the gasoline aceoent, knew that the
semis were not included in the official resold/ of the Agency.
tie states that his fellere to eeriest the situation was due
to:
"1. Ihe fast that the proced
to the statioe mod my seperiors
ceder, followed. Theo it 'ppm
effect epee my sasigemeet
trotted me in the pra?
te have official sanction.
. Lack of experience sod backgrovad in escessitiag and control
of cosh ;efficient to enable me to recogalao the procedure
as improper and insist ea the establishment of proper
acteeetability.
3. Limited training, supervisioe and IMISLIVOLi in proper
finalists! procedures from my seperiers.
4. Lack of kenwledge of end experieeee in the impiameatatto
of Agway regulations."
g. The present Chief of .itation
present Monte officer.' L arrived after the 25X1A9a
sale of petroleum prodects had been diaco*tinw.d, It was
daring this period that the sedit was made and the discrepan?
cies brought to light.
end the 25X1A9a
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4.
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h.r.I IPers to be prteeriiy responsUle for the d*volop-
atnt aei the lostallation of tire system of ateottating, but be
is e longer with the Agency. A1tb0h there is no evidence of
any n1suu of funds on their part. 4r. and AT.
could be chsred with inexperience end poor judgment in cos-
tinuieg the lead without inclosion in the allele' records.
also, it appears from the 'milt that the records were net
accurately malatained. Messrs.
the station chiefs daring the period involved, could be
charged with isadequate supervision, but it does
that they could be held pecuniarily liable since
class "A" station and the primary responsibility
custody and aceouatieg for the station feeds was vested in the
finance officer.
Slime it esnaet be determined when the shortpje occurred
such of the deficiency interred dur ag the stewardship of an
the finance officers and since neither of the finance officers
*oaf in oar employ was responsible for setting up the system sad
accoustiag for the fends at the time the sale of petroleum
products was instituted, the heard feels .bat there is insufficient
evidence to permit holdlog any one one in our employ primarily
responsible for the shertaele.
5. MIZ
Ite shortage of
off in occordaac
41 in the
h Crt 1.4 t.
gasoline fend should be written
iron,
Shortages
ex Lyn,
Office of tv 1 Cottasel
approved.
platy
kliF-FAG : sun (20 Februkir957)
Orig. & 1 - Chloard"' - LID/S 4 -1 - E h Board Member 1 - PAS
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