MEETING OF THE PPA/PRA STUDY WORKING GROUP WITH DIRECTORATE REPRESENTATIVES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP93-00229R000100060010-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: April 7, 2003
• Sequence Number: 10
• Publication Date: May 27, 1975
• Content Type: MFR

Aptod_For'lI,!g~-29 /05/28L RDP93-0022900100060010-8
27 May 1975
STAT
SUBJECT: Meeting of the PPA/PRA Study Working Group with
Directorate Representatives
1. The PPA/PRA Study Working Group met on 21 May 1975 with representatives
of the directorates to apprise them of the findings of the group to date and of
the proposed course of action. Representing the directorates were:
Mr.
Mr.
Mr.
Mr.
STAT 2. Mr. 0 opened the meeting with a description of the work of the
Working Group to date, winding up with a statement of what the Working Group
proposes as its next action; that is, a recommendation to the Director of
Logistics that a simulation of direct funding be undertaken preparatory to a
formal recommendation to the DDA and the DCI later in FY 1976 for formal
adoption of direct funding as a substitute for PRA. Mr. 0 emphasized
that before we made this recommendation we wished to be sure that the repre-
sentatives of the four directorate Planning Staffs had no further unanswered
questions about the conversion of PRA to direct funding.
3. In the spirited discussion which followed, a number of questions were
STAT raised and answered. I was asked whether the simulation which she
proposed would involve the fan accounts of the directorates. She replied that
the only fans which would be changed for the simulation would be those of the
Office of Logistics, and that the changes would be designed to make it possible
for OL to attribute procurement to the customer office as would be the case
under direct procurement. She gave as an example that a fan would be established,
for example, to cover the materiel controlled under allocation 21 which primarily
supports OC.
4. In response to another question regarding Common Stocks, Ms.
possible that subcategories reflecting materiel groups would be the basis for
subdivision.
said that she believed that some subcategories would be needed to make the
large number of line items under allocation 00 more manageable. It is
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 STAT
STAT
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SU&JBCF: Meeting of the PPA/PRA Study Working Group with
Directorate Representatives
5. At several points during the discussion the importance of effective
forecasting of materiel requirements was emphasized, both by members of the
Working Group and by representatives of the directorates.
6. Mr. consultant to the Office of Finance on the General
Accounting System (GAS), offered some suggestions involving the possibility
that under direct funding procurement for inventory, as well as for immediate
use, might be charged as a direct cost (General Ledger Account 4241) with
financial property accountability at the depots handled as if the property
were "in use" i.e. Type II financial property reporting procedures. He saw
certain advantages in a system which made no formal provision for inventory
in the Agency's financial accounts although, of course, the stock records
maintained by OL would ensure that inventory controls were in fact maintained.
This subject was seen as one which required further investigation by the
Office of Finance and the Office of Logistics.
7. Mr. representing DDO, made a strong play for early
division of the categories of materiel to be controlled under various
allocations. He sees the need for an effective educational program so that
the widely scattered officers of the Operations Directorate could be properly
instructed in the procedures to be followed when the PRA system is supplanted
with a direct funding system. He also had several questions about how non-
expendables would be handled and these were seen as examples of the need for
precise definitions before the property system is revised.
8. At the close of the meeting all of the directorate representatives
agreed that the course of action which the Working Group proposed made good
sense, that a year of simulation should assess any significant "bugs" in the
system, and that the time would provide the necessary opportunity to develop
careful definitions and ground rules so that if direct funding is adopted in
FY 1977, its chances for success will be enhanced.
VVPRA Study Working Group
cc:
STAT Ms.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
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