STOCKPILE OF MEDICAL SUPPLIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05256A000100040005-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: November 11, 2016
• Document Release Date: October 26, 1998
• Sequence Number: 5
• Publication Date: November 24, 1952
• Content Type: MEMO

Approved For Release 1999/08/30 : CIA-RDP78-05256A000100040005-5
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CONFIDENTIAL
Deputy Coptro1i.r 24 November 1952
Chief, Toehnioal Ac QuntnK Staff
Stockp- le of kedical Supplies
1. The subject of funding of, an accounting for, inventories
of medial supplies 11%8 discuesed by TAS representatives with the
Chiefs of the Iludget Division, Fiscal Division and the Finanoe
Division and certain of their staff employees. Spsoific consideration
was given to the PRC action taken 28 May 1952 establishing a
stockpile of medical supplies, subjeot to replenishment within
a $600,000 limitation with provision for operation on a revolviw
fund basis.
2. .Tiased on initial discussions held with V)e f, nudgot
Division, three alternative plans for accomplishing the objectivo
wore submitted to to Chief, Finance?Division for his oonsideration,
comments and suggestions, for ourposelSof meeting clivious
procedural requirements or both disiona. Tho plans were- discussed
with interested Vinanee Division employees and documented by
work papers indioating the account* affteted, baste budgetary and
accounting teohniques awl Vele effect thereof in the accounts under
each plan.
3. All three p1ns call for the estab1is1 of inventory
accounts in the Finance Division general ledger for tho purposee of
controlling aoquisitions, issues, inventories on hand, and
costing to projeots. offices, or division*,
4. The respective clans are as follows;
Project costs mould be controlled bysk.general-
ledger cost acoount(s) refleating&ireaDooste.
resulting from the expenditure of Peds allotted
directly to the project plus Wireci\.cests
resulting from the trensfer of inventories from
stock to projects. Subsidiary accounts 'timid be,
maintained on a project code basis.
Expenditures recorded against the project-
allotments would represent only ?barges for direet
costs or expenses resulting from theweppOiditure
of funds allotted to end remfivin.With the ,projects
Amounts equal to the: costr4fluvento; eve god
to a projeot would not be ?ede.an expenditure
atainst the allotment mad
10
,Pe teeny (each month)
C VI b u be equal to the
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et to the project.
? ot-P
ausiecia-' -of allotments in
inventories issued
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Plan 2
to projects would be ef tod thro h decrease in
project see lotments Ise office or division
ellotments) and increase to the stookpile
allotment.
( San* as Plan 1
expenditures recorded against the project
allotments 'mould represent an amount equal to direct
Costs resulting from the expenditure of funds
allotted to the projects plus the cost of
inventoriee issued to projects. This results
in a duplicate expenditure being recorded in
the accounts for the cost of the inventories
issued to projects.
(a) Because of the transactions d as
duplicate expenditures, offsottin correction
mould be effected by obarging an account similar in
nature to ?Reimbursements to Apprepriations? and
creditine ?Ueobligated Allotments?, SuLeidiary
accounts 'would be maintained in support of
?Reimbursement to Appropriations? ceded by
project codes. An amount equal to the credit to
allnetligated Alletmente mould be recorded in the
stockpile allotment account as an increase alletment.
0,e1igations and expenditures epelicable to
the repIenisement of stock mould be recorded in the
stockpile allotment accounts
(b)
VP 1
Witt* tranasetjns being recorded as
totes
It is C terpjated that under the roee4uros beL
devoloend to imelemont the DDAallot procurement funds directly to P.!-
issues or stook to projects Der atsriel other
than medioaI suli
ppes will no be recorded as
allotment expenditurese however such charges will
be coded on a sub4diary cost account basis by
project code and must support an indirect projectpost control account,
Same sa Plan 1 an4 2
Sumo as Plan 2
to oopooaturoo
ffgetting correction
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would be effected by ording a reveree
expenditure in a separate al/otment account,
thus making funds availeble for dbligetion
purposes, supported by subsidiary accounts
indicating projeot codes against which application
of indirect costs have been recorded as expenditures.
Obligations and expenditures applicable to the
replenishment of stook would be coded to the
separate allotment account. Assuming obligations
for replenishment purposes were equal to the
cost of inventories issued to projects, the
balance of this allotment account would be zero.
The plane aid related procedures were discuseed in detail
at a lo nt meeting of representatives of the TAB, Budget Division,
and Finanee Division, on 19 November 19$2? at *doh time the
merits and shortcomings of each plan were presented. It was
determined that the plan most acoeptable for overall operations
was the one designsted as Plan 2. Those present at the meeting
were Messrs. 25X1A9a
sad
8. it alao was date nod thst the silo
covering the purohase of 'basic stockpile re
recorded as "Urereuchered Funds" in the *coo=
of funds
te should be
ained by
the Vinare? Division, even though it is eAtieipated that a substantial
portion of the item prooured will be tome U*111111111111111
with cash disbursements being effected by the Fiscal Dion. ,;25X1A1d
To StibiseVent to the oonolusionreaobedt *a indicated in
paragraph above, an additional plan designated hereafter as
Plan 4 was considered by TAB and discussed sith Messrs.
. a fellows*
of thorium:um Division. The prinoiples
vesinthisplan re as
Plan 4 . (a) Same as Plan 1
(b) Amounts applicable to the **time projeots
equal to charge* for direst sesta for goods
and materials reeetved or servioes rendered
will be recorded as an empenditure.of4inds
allotted to the project.
0; 1,
Amounts equal to the oe4o eluipmentsind
supplies issued from stereS to "the pro jeots
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3
will be reoorded in the 8 ent records
ae a "transfer* rather than es expenditure*
The amount of the "transfeet,however, will
operate in the same manner as an expenditure in
the sense that it mill reduce the "Unobligated
Balance of Allotment" aveilable to the project
or activity to which issued*
An amount equal to the total cost of equipment
and supplies issued frog stores to the respective
projects will be recorded as a *reverse transfer*
in the IRY allotment recorde maintained for the
Medical Supply allotment and it will increase
the "Unobligated Balance of Allotment" available
to the Medical Supply operation*
From an allotment standpoint, the net effect of
such a prooedure results in the esteblishment
of an "Unobligated Balance of Allotment" against
which additional procurement aotions can be
obligated without the neoessity of transferring
or otherwiee increasing aliotmente to the Medical
Supply operation* It liminates the need of
effecting entries in the general ledger fnnd
account intained by the Fisoal Division and
retaint control over Unobligated Allotments -
Account 91.2*
S, It is believed by TAS and the Finance ptviin that Flan 4
(1) satisfies the requirements of the budget and incoonnting divisions,
(2) is conaiatent with the intent of the FRC action, (3) ie easily
administered, and (.0 is the most acceptable from en overall
standfloint. Accordingly, it is requested that you concur in the
adoption of Plan 4 as a means of funding end accounting for the
Stockpile of Medical Supplies needed for operation"' purposes and
in the transfer of the entire alloteent for the medical supply
stockpile from the Fiscal Diviaion records to the Finance Division
reoords
9, AS will prepare a memorandum fbr your signeture
outlining the steps to be taken in adjusting the accounts affected
in the general and allotment ledgers maintained in thet_!iPiei and
Finanoe Divisions, and the accounting meohanioaAolmo'foilelved
in the application of the recommended proce440* TASleill'elio
144.,
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CONFIDENTIAL
take stein to initiate the developne d itapi
detailed proaedures, subject to elearance by al
Concurred:
? Deput y damp e
TABADBad (17 Deaner-or 1962)
Distributiont
Orig. Addressee
1 - Budget Division i
1 Finance Division V
Fiscal Division
TAB
U. ?
of
ed offices*
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