CIA-RDP78-04718A000100220078-3__CIA-RDP78-04718A000100220078-3.pdf

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Title

AUDIT REPORT - PROJECT MKULTRA

ModDate

D:20161210010030Z

Subject

AUDIT REPORT - PROJECT MKULTRA

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Approved For Release 2002/05/01 : CIA-RDP78fi+C118A000100220078-3 25X1A 25X1A 5 April 1954 6) GZL 1. The attached Audit Report rentals that the project has been administered in general compliance with the requirements stipulated in the Director's approval. 2. The =mate of $1,021.75 and $4401.23 brought out in Paragraphs 12 and 13 (Items 1 and 2) did not to be properly accounted for. I discussed these itsee with to at grant length, and the following additional information is submitted: A. $1,021.75 - This amount represents sspenditurn not properly accounted for. Periodically the individual at the project site (an employee obtained cash from his official bank 25X1 C account by awing checks. ens cash was spent for various adtmn istratiw, housekeeping and other official pnwase. Over 150 cash memoranda were submitted to in- the rem of salsa slips, cash register slips and notations signed by the individual that sums 'mre spent. These numerous cash amsoranda wars listed by II and applied to the total cash he received. At the tires of the audit therm vas no cash on band, cad, accordingly, C D had to assume that all of the cash bad bean spent, though the cash memoranda did not equal the cash be had received. There tams no record maintained of mash exper8iiturss, so that the dis- bursements soda for thick no receipts were obtainable appears to cause the unaccounted for balances. The individual bas bean in- structed by T8B to keep a cosgrlete record of all such payments and submit a detailed listing In the future to TOO, shoring the amounts, pass, and purpose of all cash disbursements., and supported by documentation vhsn available. I do not believe it will serve say useful pugpoas to pursue this item any further, since the deficiency vas due In great part to inadequate instructions to the individual by TBS. 0 is satisfied that proper instructions have now been given and there vill be no recurrence of this type of accounting deficiency. 1. $1,401.23 - The Audit Report is not clear on exactly abet the deficiency was on this amount. These funds me fully accounted for, evidence  of payment existing in the form of cancelled checks, and an itemiza- tion of each a penditurs was reodered by the accountable individual. The ^ajor deficiency is in the lack of receipts and detailed explana- tions of the purpose of the expenditures. However, the sketchy explanations contained in the itemisation of expenditures was suffi- cient for 0 audit and, altboufl documentation should bats been obtained, the cancelled checks appear to be adequate support in proof of all payments. 3. Z do not roecwsnd any further action be takes by you, since: a. The project is of an extremely sensitive nature. b. The individual is not usdsr the direct control of this Agency. c. Inadsquate accounting instructions have been corrected and it is believed that past deficiencies will not reoccur.

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D:20161210010030Z