NEW TRANSACTION CODES FOR THE INVENTORY CONTROL SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP93-00229R000100090001-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 14, 2016
• Document Release Date: March 31, 2003
• Sequence Number: 1
• Publication Date: March 1, 1981
• Content Type: REGULATION

AppGroved.,Eor Release 2003/05/28 CIA-RDP93-00229R000100090001-5
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Supply Division is activati.ng.a.new series of transact on
codes .in the Inventory Control System (ICS) to accotmodate urchascs
t h t f. were previously coded "NAR" and not entered in ICS pro s c r,si_n
?These new codes have a first digit of "3" and will not upda..e the
Office of Finance (OF) General Accounting System-(GAS).
These new codes are:
,
a. 8A: Al! requests for material that were formerly coded
"'AR" with the exception of SPB act:iQns.
63: Ali requests for "Repair and Return.'.
c. SC: All requests for material that, is being purchased
by SPB. (All of the ICS input for this transaction
code will be the responsibility of SPB~
d.. 8D: For future use for "Shipping Purposes Only" trans-
actions .
STATINTL
Chief, Supply Division, OL
- 9i3
ADMINISTRATIVE INTERNAI. USE ONLY.
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Distribution D
 C0MPT'_1 ~f ~:
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1)1 )/ S&'T# :735- 7-71'
MEMORANDUM FOR: Deputy Director for Administration
FROM: Thomas B. Yale
Director of Finance
3 1 MAY 1978
James H. McDonald
Director of Logistics
James H. Taylor
Comptroller
SUBJECT: Agency MPA/PRA System for Funding Property
Procurement by Office of Logistics
1. Action Requested: This memorandum requests your approval
for continuation of the existing MPA/PRA System for funding property
procurement by the Office of Logistics.
2. Basic Data:
a. MBO OF-28-78, joint with the Office of Logistics and in
coordination with the Office of the Comptroller, required a review
of findings of previous PPA/PRA studies as basis for decision
respecting possible conversion to a direct funding approach for
all materiel procurement. A working group of representatives of
the Office of the Comptroller, the Office of Logistics, and the
Office of Finance conducted the review. Working group members
STATINTL were Logistics, andiI
STATINTL inance. This memorandum is ased upon the findings o
e working group. STATINTL
b. The Office of Logistics prepared a report in May 1974
based on an extensive review of the PPA/PRA (now MPA/PRA) System
and alternative systems in 1974. That report suggested that
the Agency consider direct funding or some other alternative to
MPA/PRA for funding and control of personal property. The prin-
cipal advantages and disadvantages of the MPA/PRA System were
cited as follows:
Approved For Release 2003/05/28 : CIA-RDP93-00229R000100090001-5
 SUS` Upyech5@n&legAVMQQ3Wg&nI gWRW93,q2M 00+190l390QQt ment
by Off'e of Logistics %
(1) Advantages
(a) The system had been successful in meeting
the requirements of Agency budget policy for centralized
procurement of inventory with funds budgeted by the
user.
(b) Transfer of total funding authority for
materiel procurement to the Office of Logistics
permitted: 1) flexibility in adding or dropping items
from the common stocks inventory based upon current
experience and projected needs, 2) flexibility in
timing of inventory procurement, and 3) centralized
tracking of inventory purchases made by cognizant
components.
(c) The system provided highly centralized
appropriation controls over procurement which pro-
vided for less time-consuming and better coordination
of activities among the Office of Comptroller, the
office maintaining obligation controls (Budget and
Fiscal Branch/OL in this case), the procurement
element, and the component of the Office of Finance
concerned with payment of invoices.
(d) Uniformity of procedures for initiating and
processing requisitions through the supply system
increased efficiency.
(2) Disadvantages
(a) Redundancy of financial and budgetary controls
over the acquisition of property procured specifically
for user office.
(b) Resulted in budget presentations that did
not clearly differentiate between inventory and use
requirements.
(c) The system was oversimplified in contrast
with the unique characteristics of the Agency's materiel
requirements and inhibited efforts to streamline pro-
cedures or to reduce workload of the several systems
contributing to the Agency's materiel program.
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SUBJECT: Agency MPA/PRA System for Funding Prorty Procurement
by Office of Logistics
c. At the time of the 1974 review, PRA records were main-
tained manually and the automated Inventory Control System (ICS)
was not yet operational. Duplication of control required
extensive labor to reconcile amounts recorded in different
systems. In the manual system, such duplication was very
burdensome and its cost effectiveness was questionable.
d. The successful development of major automated systems
such as GAS/FRS and ICS has significantly changed the day-to-
day operation of MPA/PRA. The manual records have been replaced
by a highly sophisticated integrated accounting/budget system
that interfaces with the Logistics ICS system in a timely
fashion. The ICS/GAS systems have been developed for the present
PRA System with the end product being a report (Open Encumbrance
Activity Report) that when combined with the Open Obligations
Activity Report presents the financial position as of a specified
date for each component. The end product of ICS also automatically
updates various general ledger accounts which provide financial
control over property. Automated systems also have reduced
redundancy to a minimum and permit tracking and control of
PRA and MPA. Every line item of every requisition is tracked
from the ICS system to the accounting system. Edit and vali=
dation routines have been established to minimize errors.
Additionally, separate automated tracking systems have been
established for PRA and MPA (PRATS and MPATS). These systems
are based on ICS "spin-offs" and can provide current reports
on PRA and MPA status whenever required. It is the consensus
of concerned officials that the system is working well and
represents a great improvement over the system as it was
operating at the time of the 1974 review.
3, Staff Position: Analysis by the working group supports the
fpllowing conc usions:
a. The MPA/PRA environment has substantially changed from
that of the date of the original study. This is due mainly
to the automation of the PRA which eliminated the manual effort
previously required by component Budget and Fiscal Officers to
record encumbrances and then identify the liquidation of PRA
encumbrances by matching issues listings against the encumbrances.
b, The MPA/PRA System is now working better than at any time
in the past because of the implementation of automated tracking
systems,
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SUBJECT: Agency MPA/PRA System for Funding Property Procurement
by Office of Logistics
c. Any change from the present system would have a major
impact on and require major and time consuming changes in the
procedures which support the procurement process in the user
offices and in the Office of Logistics. The change could also
be expected to have major impact on the computer programming
for the Inventory Control System and, depending upon the
procedures, on the General Accounting System and the Financial
Resources System.
d. Adoption of the direct funding approach discussed in
the May 1974 report would also increase the general support
category of the Agency budget by the amount of procurement
dollars used for Logistics cognizant property. Most of the
funds involved are now budgeted by non-DDA components and thus
are reflected in other Agency budget categories.
4. Recommendation: It is recommended that the present MPA/PRA
System be retained.
James H. McDonald
STATINTL
Date-_
rectorate of Operations
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