[PAGE 4]
ATTENTION

SUBJECT

: MKULTRA-Subprojects-30 and 50

1. The report of audit dated 17 June 1955 prepared hy Mr. covering Project MKULTRA for the period 15 January 1954 through 30 April 1955, recommended in connection with subproject 30 as follows:

"It is suggested that this project be placed on a revolving fund basis, i. e., establish a fixed amount of-about \$500, 00 or any other amount that will meet the needs.of the project for a reasonable period-of time and reimburse-the\_fund on the basis of accountings submitted at-least quarterly.The fixed amount may be increased or.decreased as\_the need demands and will be recordcd on the books of the-Finance Division as an Imprest Fund. The same certification should be used for reimbursing the imprest fund as is now.authorized by the MKULTRA plan. Charges to expense would be made oniy on the-basis of an accounting properly approved and the accountings would remain in the MKULTRA files of TSS.This proposed\_revision\_will permit more accurate distribution of expenses to the proper fiscal year and will require approval by-operating officials.prior.to reimbursing the fund for expenditures made."

2. It is my understanding that correspondence with Deputy Chief, Finance Division,has led to-the-conclusion that any Imprest Fund reported on-the books of the Finance Division as such is subject to rules and regulations which are not compatible with the procedures approved by the DCI under which MKULTRA is handled, Imprest Fund regulations apparently tequire that expenses and accountings be forwarded to Finance Division when reimbursement is requested. The security maintained for MKULTRA is such that it is not feasible to forward to the Finance Division a list of items purchased under this project since the nature of these items and the reasons for their purchase (particularly the occasional destruction of what would normally be considered unexpendable equipment) would disclose too much of the nature of the sensitive work being handled under

MKULTRA.

50-4

26 September.195..

MEMORANDUM FOR: TSS/CD

[PAGE 5]
3. For this reason I believe it will be satisfactory to continue with subproject 30 and convert it to an Imprest Fund rather than terminate it and establish a new subproject 50 as an Imprest Fund. This will result in our following all of the recommendations in Mr. W report with the sole exception that subproject 30 will not be recorded on the books of the-Finance Division as an Imprest Fund.

A 4.I understand that Majorsr has'recently returned with a complete detailed list of recent expenditures under this subproject, It is my suggestion that these evidences of expenditures be placed in your files and that you determine the exact cash on hand. With this figure in mind, I suggest that you obligate under subproject 30 the exact sum required which, when added to the cash on hand will-bring your total cash funds to \$1, 000. One thousand dollars is \_the-sum whichI believe you have determined-to= be necessary under this project rather than the amount of \$500.00 mentioned as-an example by Mr. A

5. When this additional obligation is on hand and you have exactly \$1,000\_ in cash,'you should operate the project as an Imprest Fund, i, e., future reimbursements-should be made\_at least\_quarterly. andin an amount exactly equal to the new accumulation of-vouchers-which wili thus result in in the project's funds being brought back to precisely\_\$1.000 each time it is replenished. Care should be taken to replenish the fund and bring it back to \$i, 000 toward the end of each Fiscal Year so that expenses incurred during a particular Fiscal Year will be covered by that FYis funds, As mentioned in Mr. report, charges to expense would thus be made only on the basis of an accounting properly approved, and the accountings would remain in the MKULTRA files of TSS, If your quarterly accountings coincide with the end of a Fiscal Year, I believe that this will also satisfy Mr sin that reimbursements will-be made to the project with FY funds corresponding to the FY in which the expenses were incurred; and of course, approval of operating officials will have been obtained prior to reimbursement to the project for these expenditures. A

6. You might discuss this with Mr. the nèxt time he is in your office. Steps should also be taken if necessary to cancel subproject 50 and the sum of \$500.00 which Mr.may show on his books as obligated.

TSS/OC.(26 September 1955)

Distribution: Addressee - Orig. only TSS/OC - 1

50-4

.2.

[PAGE 7]
Office Memorandum: UNITED STATES GOVERNMENT

Chief. TSS Chemical Division

DATB:. -20 September 1955

Acting Deputy Chief, Finance Division

suBJECT: Request for Imprest Fund MKULTRA

1. The request\_contained in your memoransum, dated. 14 September 1955,-establishing-an-imprest-fund for MKULTRA in the emount.of \$500.00 is returned without approvalby this office as not meeting the requirements of regulations establishing an imprest fund.

2. Regulation , dated 26 Narch 1955, governing imprest fund states-that-"A-complete-accounting will be submitted monthly," whereas paragraph 4-of your-request states that these funds will be accounted-for-in-accordance \_with MKULTRA procedures.

3. In the event-that accountings-can be submitted in accordance with this request should de re-submitted.

A FD/ADB/

50-6

STANCURO FORUH N1. 64

9

[PAGE 8]
FORM 51-10 PREVIOUS ÉUITIONS 1 HAY 54 MAY BE USED

CONFIDÉNTIAL

[PAGE 9]
: Request for Imprest Petty Cash Fund

1, At the-request-of-the-Chief, Audit-Staff, TSS is requesting the establishment of an imprest petty cash fund in connection with a-subproject of-MKULTRA.This petty cash fund is to-be-established with an -initial grant of \$500.00.- From tine to time as these funds are\_depleted, reimbursement will. be requested.

2. The-following-personnel of TSS/CD are appointed responsible-officers for the fund:

3.The money will be-kept-in-an-approved combination safe.

4. This imprest fund is being-set up-in connection-with a subprojeot of.MKULTRA-Therefore, -records and accountings will be maintained in accordance with regulations and procedures approved by the DCI in the memorandum dated-13 April 1953 to the DD/A and the extension of this authority in subsequent nemoranda. All records and accountings are kept in-the files of the Chemical Division where\_they are available for inspection by the auditor appointed by the DD/S to inspect and audit MKULTRA files.

Chief, TSS/Chemical Division

Research Director

Dator 16 Apt. 1955

Distribution: Orig & 2 - Addressee 1 - Comptroller

- SUBJECT

TSS/co (14 September 1955)

14 September 1955

MEMORANDUM FCR: CHIEF,FINANCE DIVISION

：r.

[PAGE 10]
Chief, TSS Chemical Division

Acting Deputy Chief, Financa Division

Request for Loprest Fund MXULTRA

i. The request contained in your nemorandun, dated 14 Septembor 1955, establishing on imprest fund for MKULTRA in the amount of \$50O.C0 is returned vithout approval by this offico as not weeting tho requiremants of regulations establishing an imprest fund.

2. Regulation dated 26 March 1955, governing imprest fund states-that "λ complote accounting vill be submitted moathly," whereas paragraph 4 of your requast states that these funds will be accounted for in accordance with MXULTRA procedures.

3. In the avent that accountings can bs subnitted in accordance with , this request should be re-subnitted.

A

FD/ADB/

50-9

H

0

20 September 2955

[PAGE 11]
Aoting Deputy Chiof, Finance Division

Requost for Lprest Pind MULTRA

i. The request contained in your memorandus, dated 14 Septembor 1955, astablishing an improst fund for WKOLTRA in the amount of \$500.co is returned vithout approval by this office as not mesting the requirements of regulatioas

2. Regulation dated 26 Maroh 1955, governing Lmprest fund states Wat, "à complete accouating will be submitted monthly," whereaa'paragraph  of your requsst states that theso funds will be accounted for in sccordanca with MXULTRA procedures.

3. Ia the event that accountings can be submitted in aocoriance vith , this roquest should bo ro-submitted.

Chief, TSS Chamical Division

20 September 2955

[PAGE 12]
APPROVAL INFORMATION SIGNATUREACTION DIRECT REPLY RETURNCOMMENT PREPARATION OF REPLY DISPATCH7 CONCURRENCE RECOMMENDATION FLE

[PAGE 13]
1. This memorandum is written to record the purpose of Subproject 50, the reasons for establishing it, and the mechanics by which it will be administered.

2. The ,above subproject has been created to continue the C suoport to Division,  which was previously furnished by Subprojects 13 and 30. Such support will be over and above the yearly financial support.of Project MKNAOMI and will fall into two categories: (1) the purchase of-certain materials, supplies and equipment where the use of other-funds would cause either excessive delay in operations or undue security hazards; and (2) the support of activities in which-Agency-sponsorship makes it sources since those sources require an undesirable amount of justification.

of Mr. and with the approval of Generald in order to 3. The subproject has been created-at the specific request A correct undesirable administrative procedures evident in the handling of Subprojects 13 and 30.

4. This subproject will be handled as an imprest fund with an initial grant of \$500.00.-As expenses are incurred and upon presentation of vouchered proof of expenditure, subseqaent grants will be nade in the amounts exoended.The cash on hand and/or receipts of expenditure will total \$500.00 at all times. Instructions to the Fund Custodian are-attached.

5. This is a continuing project with no specific amount earmarked per unit time.-Budget-estimates will-be based on experience:in Subprojects 13.and-30.

6. Subproject 30 will be closed out and cash on hand will be returned to Finance on receipt of the initial \$500.00 grant.

Orig = TSS/CD 1 - Chrono (b)

TSS/CD (26 September 1955)

26 September 1955

50-12

MEMORANDUM FOR: THE RECORD

SUBJECT ; MKULTRA Subproject 50

[PAGE 14]
1. IT IS REQUESTEO THAT CONFIDENTTAL FUNDS BE ADVANCED TO:

IN THE AMOUNT OF Five Hundred

2. THESE FUNDS ARE REQUIRED FOR OFFICIAL BUSINESS OF A CONFIDENTIAL NATURE AND THEIR USE WILL BE CONFINED TO THE FOLLOWING GENERAL PURPOSE:

Imprest Petty Cash Fund (See attached memorandum)

3. THIS ADVANCE IS WITHIN THE SCOPE OF, ANO PROPERLY CHARGEABLE TO.

6-2502-10-001

AAPROVED FROJECT, ALLGTHENT. ETC.

4. THIS ADVARCE WILL BE ACCOUNTEO FOR FULLY, IN ACCORDANCE WITH CONFIDENTIAL FUNDS REGULATIONS, AND AEL UNEXPENDED FUNDS RETURNED, IN THE FOLLOWING MANNERE (COMPLETE AND/OR INITIAL APPLICABLE STATEMENT BELOW)

(A) WITHINOAYS, ACCOUNTING AND/OR REFUND WILL-BE-MADE TO CHIEF. CONFIDENTIAL FUNDS.

(B) WITHINOAYS AFTER ARRIVAL AT DESTINATION ACCOUNTING AND/OR REFUND WILL BE MADE TO CONFIDENTIAL FUNDS REPRESENTATIVE AT

OX A FULL ACCOUNTING WILL BE RENDERED AT THE ENO OF EACH MONTH UNTIL ALL FUNOS ARE ACCOUNTEO FOR, SUCH

S6839

FORM NO. 33.IS PREVIOUS ED:TIONS MAT OE USSD. JUN 1t4\$

file SR50

DATE 16 September 1955

[PAGE 15]
MEMCRANDUH FORI CHIEF, FINANCE DIVISION

AITETION Nr. OA

SUBJECr Request for Impreat Petty Caah Fund

1. At tho requeat of tue Chiaf, Audit Staff, Tss is roqueating the establishment of an imprest petty cach fund in conneotion with a subprojeot of MKULIRA, This potty cash fund is to be established with an initial grant of \$500.00. Fron time to time as these funds are depleted, reinbursement vill bo roquested,

2. The following personnel of TSS/CD are appointed responsible ofricers for the fundi

3. The money vill be kept in an approvod coobination Bafo.

4. This imprest fund is being set up in conneotion vith a subprojeet of MKULTRA, Therefore, reoords end acoountings will be maintained in acoordanos with regulations and procodures approved by the D0I in the mezorandum dated 13 April 1953 to the DD/à and the extension of this authority in subsoquent momoranda. All recorde and accountings are kopt in the files of the Chemical Division vhere they are avallable for inspeotion by the auditor appointed by the DD/ to inspeot and audit MULIRA files.

APPROVEDI

Research Direotor

Diatributiont Orig & 2 - Addressee 1 - Comptroller

Chiof, TSS/Chemieal Diviaion

14 September 1955

183/cD (14 3eptember 1955)

A

[PAGE 16]
REQUEST FOR ADVANCE

1. ITLIS REQUESTED THAT CONF IDENTIAL FUNOS BE ADVANCED TO: RAME 500,00 Five Hundred DOLLARS S
IN THE AMOUNT OF
2. THESE FUNDS ARE REQUIRED FOR OFFICIAL BUSINESS OF A CONFIDENTIAL NATURE AND THEIR USE WILL BE CONFINEO TO THE
FOLLOWING GENERAL PURPOSE: Improst Potty Cash Fund (Ses attached memorandua)

3. THIS ADVANCE IS WITHIN THE SCOPE OF AND PROPERLY CHARGEABLE TO6-2502-10-001

4. THIS ADVANCE WILL BE ACCOUNTED FCR FULLY; IN ACCCROANCEWITH.CONFIDENTIAL FUNOS REGULATIONS, AND ALL UNEXPENDED FUNOS RETURNEO, IN THE FOLLOWING MANNER: (COMPLETE AND/OR (NITIAL APPLICASLE STATEMENT BELOW)

(A) WITHINDAYS, ACCOUNTING AND/OR REFUND WILL BE MADE TO CHIEF.CONFIDENTIAL FUNDS

(8) WITHINDAYS AFTER ARRIVAL AT DESTINATION ACCOUNTING ANO/OR REFUND WILL BE MADE TO CONFIDENTIAL FUNDS REPRESENTATIVE AT

A FULL ACCOUNING WILL-BE-RENDEREO AT THE END QE.EACH MONTH UNTIL ALL FUNOS ARE ACCOUNTED FOR, SUCH ACCOUNTING WILL BE MADE TO THE CHIEF CONEIDENTIAL FUNDS. OR TO HIS DESIGNATED REPRESENTATIVE A

S. APPROVED: Chief,TSS/D SIDNEY COTTLIEB 16 Soptember 1955 SIGNATURE DATE TITLE

VALE 6. 1 cERtify that this request for advance is in accordance with existing regulations; has been approved by proper authoritx; and that furds areavauaalesindse aooroossation and allotment jndicated. authoritx; and that furds arehay iation and allotment jndicateo dt 100.0 500.02

570- FFICER APPRUPRIATION ALLOTHENT 500.00 Finance

LIN THE FORM UP FOR THE PURPOSE STATED, AND WILL BE ACCOUNTED FOR FULLY BY ME IN ACCORDANCE WIEC BAR

FORM HO. 31 IE BOEYIONE EDLJLOHS HAN A5 UASD

SIGNATURE

[PAGE 17]
14 Septanber 1955

MOIRANDUM FCR: CUIEY, FLUAXCE DIVISIOX

ATTION.

SUBJscr Requeet for Iapregt Potty Cash Fund

1. At the roquoat of the Chief, Audit Staff, TSS ie requeating tho eatablishent of an iapreat patty caeh fund in coonootion vith a eaborojeot of Mulira. This petty canh fund is to te established vith an initial grsat of \$500.00. Pro tioo to tine as thoge fands are depleted, reinturcenont vill be requostal.

2. The folloudng paraonnal of Tss/0 are appolnted respongible offioera for the fundi

3. The mooey will be kept in an approved combioation safo.

4. This ixpreat fund is boing get up in coonootian vith a muborojoot of ikuLiRA. Therolore, records andaccountings will. te naintained in accordanco vith regulatiocs and procedures approved by tho DCI in the masorandua dated 13 April-1953 to the Do/a and the extansioa of this authority in subsequent zemoranda. All rocords and socountings are kept in the files of the Chenical Division vhere they are available for inapoction by tho auditor appointed by tho DD/3 to inspoot and nudit MULTRA files.

APPROVEDI

K

Chief, TSs/Cheaical Diviaion

Diatributiont

Orig a 2 - Addressco

1-TSS/FASB

tsa/co (14 Soptober 1955)

[PAGE 19]
STANDAPO FORN HO BA FRE ST Office Memorandum • UNITED STATES GOVERNMENT DATB:

Mmoandum foroffa chiyd Einance SUBJECT : attn M.
1. whysont fnd? d 7ss prot)nlaMxuLs
2. Custrdein A Dipsty
3. mMony soill  etin a conbitin caft

[PAGE 20]
SUBET: 4. This viprest Hund in fing cet upnis consectis Aih an MKuLTR) subpirict. Aeense and acemntiigs woll be meintrind inseendrne sosd prredone sstidtiehd fa proedt InkuLTRA and esill  wosilit for sompiction and Oudt, Int only in aecodine wid prredre rstebtibd fr prieet MKuLIRA.

, STANDARO PORM NO, H

[PAGE 21]
MEMORANDUM FOR: COMPTROLLER

ATTENTION : Finance Diviilon

SUBJECT : MKULTRA, Subproject 50

1. Under the authority granted in the memorandum dated 13 April 1953. from the DCI to the DD/A and extenalon of thie authority in subsequent memoranda, subproject 50 has been approved.

2. At the auggeetion of Chief, Audit Stalf, this project is being set up as an imprest petty cash fund in the amount of \$500. 00. It ls requested that \$500.00 in cash be forwarded to Chief, TSS/CD through TSS Budget Olllcer.

3. Periodic relmbursements of thia imprest fund will be requested as expenses are incurred, Funda provided for this project are to be charged to allotment 6-2302-10-001.

SIDNEY GOTTLIEB Chief, TSS/Chemical Diviiion

Research Director

TSS/CD:(15 August 1955)

Distribution:
Addressee- Orig. & 2 TSS/OC-1
PSS/FASB-1 TSS/SRB - 1 TSS/CD-2

50-20

15 August 1955

[PAGE 22]
1. The purpose of subproject 50 is to continue to provide the
support previously furnished to the ed under sub
project 30. Support will be furnished to certain-TSS/CD activities carried C

2. In accordance with the suggestion made by Mr. in his memorandum dated 17 June 1955 which was approved by Gen.  this project is being set up as an imprest petty cash fund with an initial grant of \$500. 00.From time to time as these funds are depleted, reimbursementwill be requested, acc ompanied by vouchered proof of expenditures by the using agency in accordance with the: written agreement between that agency and TSS/CD.

3. The support will primarily fall in two general categories:one. the purchase of certain materials, supplies and equipment where the use by thes of other funds would either delay operations excessively or result in security problems in view of the peculiar nature of the items to be G purchased; and two, activities where the unusual security considerations/ surrounding Agency sponsorship of the make it difficult for theer to obtain financial support from customary sources since such scurces would require an undesirable-amount of written or oral justification.. Subproject 50 funds will thus be used to pay for purchase-of-unusual supplies, materials and equipment a.well as for occasional unusual services, travet, expenses and honoraria.

4. .As soon as.the initial \$500.00 under\_subproject 50 has been made available to tse SO Division, subproject 30 will be closed out and any unspent balance returned to the Agency. Dnrtt

APPROVED FOR OBLIGATION

SIDNEY COTTLIEB Chief, TSS/Chémical Division

Date: 17Aarn 1955

Research Directot

50-3

15 August 1955-

MEMORANDUM FOR THE RECORD

SUBJECT

: MKULTRA, Subproject 50

!(15 August 1955)

A

TSS/CD - 2 (subprojects 30 and 50)