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. 2. 3. 4. Total unmatched expenditures and dollar values Number of overaged expenditures and dollar values Total unmatched receipts and dollar values 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. 6-15