Approved For Release 2003/04/18 CIA-RDP96-00787ROO0200160001-4
CONFIDENTIAL
24 July 1974
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NOTE FOR : OTS/D&E
SUBJECT : SRI's Financial Expenditures through 29 June 74
This is simply to confirm and elaborate upon our telecon of this date.
On 23 July I received from you copies of SRI's financial statements for the
periods 27 April-1 June and 1 June-29 June. There are a couple of aspects
which are disturbing:
(1) the last previous financial statement we have (for the period
1 March to 1 April,, appended to their 2nd progress report) shows $9460
having been expended on our (Part 2) portion of the project; as of 29
June they show $38,981 expended on Part 2 and (on the basis of what we've
seen from them) I find it hard to account for expenditures of about $10@000
each of
for/the last three months;
(2) as of 29 June they claim to be 55.8Zo completed with Part 2 of
the project; since, as far as we yet know,, they've only selected 5 of the
9 subjects and none of them have been put through the batteries of Part 2
examinations this also seems to be out,.of line.
There may, of course@ be rational explanations for these apparent incon-
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sistencies. Having discussed the matter with and partic-
ularly in view of your note to the effect that their quarterly report is expected
by about 1 August, it seems best not to further confuse matters by making an issue
of it at this time. Hopefully, the quarterly report will provide the substantiating
data. If it does not, I will. certainly suggest that 'we consider asking for an
audit. e 2003/04/18: CIA-RDP9 -00787ROO0200160001-4
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