INVENTORY VALIDITY.- This term refers to the accuracy between the quantity of material posted in stock records and quantity in the storage location. Financial processing can affect the inventory validity in an activity. For example, a receipt document was processed to reconcile the unmatched expenditures or receipts appearing on the SAC 207 exception feedback listing without performing a spot inventory. This process may lower the number of unmatched expenditures or receipts; however, the inventory validity can be significantly affected. Improperly processed receipt documents, after the spot inventory, can also affect inventory validity.

SUPPLY EFFECTIVENESS.- The supply effectiveness reflects the activity's ability to fill customer requirements. The customer requirements filled by the activity (net) and from other sources (gross) are used to measure the supply effectiveness, Financial processing directly affects supply effectiveness. For example, when stock receipt documentation is reconciled against the unmatched expenditures erroneous y appearing on the SAC 207 unmatched expenditure listing without proper spot inventory verification. The stock records could reflect a quantity of material greater than that of the quantity actually in the storage location. This situation will result in processing a warehouse refusal thereby lowering the supply effectiveness.

GROSS INVENTORY ADJUSTMENTS (GIA).- The GIA is calculated by totaling the monthly gross adjustments (gains by inventory, losses by inventory, and surveys) and dividing the result by the monthly throughput. The throughput refers to the value of specific categories of throughput identified by certain FIR codes. An improperly processed exception feedback listing can affect the GIA. For example, a stock document is reconciled against the unmatched expenditure or receipt erroneously appearing in the SAC 207 feedback exception listing without conducting a spot inventory. The quantity in the stock records shows more than the actual quantity in the storage location. This situation will result in a warehouse refusal and a loss by inventory (LBI) will be processed that increases the GIA.

DEFICIENCIES TO SHIP AUTHORIZED LEVEL (SAL).- The stores account material management afloat/ship authorized levels (SAMMA/SAL) is a management report. The intent of the SAMMA/SAL is to maximize the amount of authorized material on hand and minimize financial investment in unauthorized material. The accuracy of the SAMMA/SAL computation relies upon the inventory validity. Improper financial processing can contribute to the deficiency of SAL. For example, a stock receipt documentation is reconciled against the unmatched expenditure that is erroneous] y appearing on the SAC 207 exception feedback listing. This results in an inaccurate reflection of inventory validity. Therefore, the amount of on-hand stock material as a percentage of the SAL is incorrectly computed. If this is a significant problem, the impact on supply readiness can be critical.

UNMATCHED EXPENDITURES AND RECEIPTS.- The SAC 207 activities monitor the percentage and number of unmatched expenditures and receipts. The listings are monitored to ensure compliance of the standards and goals set by NAVSUP and TYCOMs. The standards and goals are generally established for the following categories:

1. Total unmatched expenditures and dollar values

2. Number of overaged expenditures and dollar values

3. Total unmatched receipts and dollar values

4. Number of overaged receipts and dollar values

The last page of unmatched listings for captions C&H and A&G provides summaries by record counts and total money values of all listed and unlisted transactions. These values will be used by supply and the financial managers to evaluate the activity's performance in relation to receipts and SAC 207 exception processing.

REDISTRIBUTABLE ASSETS ON ORDER (RAO).- The term redistributable assets on order is also known as unauthorized on order (UOO). The RAO is the material on order that is above the requisitioning objective (RO).

REDISTRIBUTABLE ASSETS ON BOARD (RAB).- The term redistributable assets on board

refers to the level of stock on hand that exceeds the sum of the SAL and the authorized retention (AR). The AR is a long-supply asset that is authorized for retention. The RAB is also known as unauthorized long supply (ULS).

SHIP'S OPERATING TARGET (OPTAR) FUNDS

The term operating target is defined as an estimate of the amount of money that will be required by an operating ship, staff, squadron, or other unit to perform assigned tasks and functions.

Budgeting

Each year Congress enacts an O&MN appropriation that authorizes the Navy to buy needed material and services. A portion of this appropriation is passed down through the chain of command to the activity in the form of an OPTAR grant.

Type commanders require that the supply officers develop an annual management plan for supplies and equipage (S&E) OPTAR dollars. The participation of other departments in the activity is essential in developing the annual management plan. Accordingly, department heads must determine their annual funding requirements prioritized according to the type commander's direction, then submit them to the supply office. When the annual planning figure has been promulgated by the type commander, the supply officer develops a recommended allocation of funds. The allocation of funds is developed in coordination with all the departments based on their requirements. The recommended allocation of funds and the entire financial plan must be submitted to the commanding officer for approval. The number and type of OPTAR grants provided these activities depend on the mission of the activity. All SUADPS-RT activities (except MAGs) receive Supplies and Equipage (S&E) OPTAR grants to cover the operation and maintenance of the activity. They may also receive a reimbursable OPTAR when a requirement exists to provide work or services to another TYCOM or government department as directed by the activity's TYCOM. Tenders and repair ships receive a Repair of Other Vessels OPTAR to finance the material or services used in the repair of other ships. Aircraft carriers, amphibious assault ships, and MAGs receive Aviation Fleet Maintenance (AFM) OPTARs to cover the cost of aircraft maintenance. Aviation squadrons receive Flight Operations (FLTOPs) OPTARs to cover the cost of flight operations maintenance.

To determine the authorized charges to each of the above mentioned OPTARs, refer to NAVSO P-3013.

Reporting Time Frames

OPTAR grants are available for obligations only during the fiscal year in which they are granted (1 October through 30 September). However, OPTAR for each fiscal year must be accounted for over a full 36-month cycle. During this period and for 24 months after the end of the fiscal year, activities submit budget/ OPTAR reports as required by NAVSO P-3013-2. These reports are discussed later in this chapter.

Unfilled Orders

Automated activities process all material receipts and issues through the computer. The reconciliation of unfilled orders (obligations) and expenditures for material is performed internally by the SUADPS-RT system for the S&E OPTAR. If the activity holds a Reimbursable OPTAR, unfilled orders are submitted for all transactions (both material and services). When a SAC 207 activity does the accounting for a squadron's FLTOPs OPTAR, unfilled orders are submitted for all transactions (both material and services) for the squadron.

Records/Logs and Files

The procedures for keeping and maintaining financial record/logs and files are automated and manual.

AUTOMATED.- Automation such as SUADPS-RT has eliminated the need for manual records at the command level. Large ships such as aircraft carriers use the Shipboard Nontactical ADP Program (SNAP) I or III (new version) system. The OPTAR holders do not need to maintain a manual NAVCOMPT Form 2155 because the computer systems accomplish what the manual procedures do as part of its system design. In managing the direct program funds, the SUADPS-RT OPTAR holders submit the following data once a month on the last day of the month:

l Detail unfilled order (obligation) documents in mechanized form for Cognizance Code 99 (services)

l Flight operations (excluding aviation fuel) via an unfilled order summary report (Report 20)

l Automated document transmittal report (NAVCOMPT Form 2156)

Various versions of SNAP I or III have completely automated the receipt of reimbursable OPTAR and the processing of their transactions. Under SUADPS, the procedures for ordering material for use on a reimbursable funding are basically the same as ordering material for the OPTAR funding the direct operations. However, the fund code used has an A in the second character and the reimbursable control code is assigned as the first two characters of the document serial number. The detail unfilled orders (obligations) established for reimbursable OPTAR are automatically y prepared for submission to DAO when the monthly financial report is processed. Refer to paragraph 4200 of NAVSO P-3013-2 for detailed information about reimbursable operating targets.

To guarantee the accuracy of the automated records, all transactions affecting financial files including issues from stock, DTO requisitions, open purchase transactions, and transactions for supported units must be posted into the system. The SUADPS-RT contains program and quality assurance checks that validate input transactions during computer processing.

MANUAL.- Activities using the manual procedures must establish a Requisition/OPTAR Log (NAVCOMPT Form 2155). This log is used to record OPTAR grants and the value of all transactions incurred as chargeable to the type commander's operating budget. A separate requisition/OPTAR log is established for each OPTAR received.

The financial files must be established for each fiscal year for each OPTAR received. These files are labeled file 1 and file 2. The Unfilled Order Chargeable Documents for Transmittal, File 1, contains the accounting copy of documents chargeable to the OPTAR. All the documents must have the price, price extension, and entered in the estimated cost chargeable section of the appropriate NAVCOMPT Form 2155. The documents in this are transmitted to the DAO for matching with expenditure documents from supplying or paying activities. The Unfilled Order Cancellation Documents/Lists for Transmittal, File 2, contains the following documents:

l Lists of confirmed cancellations or copies of individual cancellation documents

l Advance downward price adjustments

l Copies or lists of administrative cancellations of above threshold unfilled orders and optionally administrative cancellations of below threshold unfilled orders that decrease the estimated cost chargeable (credit adjustments).

All the documents in file 2 must be priced, extended, and entered in the appropriate NAVCOMPT

Form 2155. The documents in file 2 are transmitted to the DAO.

Requisition/OPTAR Log Posting and Maintenance

The requisition/OPTAR log (NAVCOMPT Form 2155) must be maintained in ink by OPTAR holders using manual procedures. Activities using the automated procedures use the computer programs to maintain the logs and files. Refer to NAVSO P-3013-2 for the breakdown and uses of each column in NAVCOMPT Form 2155.