3. Army Supply System Inventories (Table 33)

The total value of Army supply system inventories on 30 June 1966 was reported to be $11.9 billion, of which inventories of the Army Stock Fund accounted for 20 percent, and appropriated fund inventories for 80 percent. The $11.9 billion represents a net increase of $713 million, or about 6 percent, in the total of Army supply inventories, during the fiscal year, but on the prior basis, i.e., excluding the increased coverage, the total increase, for both appropriation-financed and stock fund inventories was only $33 million. This Army total represents $8,311 million of principal items financed from the Procurement of Equipment and Missiles, Army (PEMA) appropriation; $1,114 million of secondary items, also financed from the PEMA appropriation; $28 million of secondary item inventories financed by the Operation and Maintenance, Army (O&MA) appropriation; $18 million of inventories held at overseas posts, camps, and stations not covered by the Army's financial inventory accounting (FIA) system; $25 million of secondary stocks in the hands of U.S. Property and Fiscal Officers for the National Guard Bureau, making a total of $9,496 of appropriation-financed stocks; and $2,444 million of stock-funded inventories.

Table 33 presents a stratification of these inventories, which, for appropriation-financed inventories are also presented by materiel category. The stock-funded inventories are included as a one-line entry, being presented in detail in the table following.

This

The foregoing inventories, as stated, do not include complete aircraft, although they do include aircraft parts and components. procedure is adopted, although the Army actually has $171 million of

Table 33 Supply System Inventories (Including Stock Punds) by Inventory Strata and Category

as of 30 June 1966

complete aircraft in store, to follow Navy and Air Force practice which is to issue all complete aircraft to units of the operating forces rather than to retain them in the supply system. Accordingly, to permit comparison with Navy and Air Force, Army stocks of these weapons are reported with other weapons and military equipment in use in Section B of Part II of this report and as appropriate in Table 1.

Army supply system stocks are stratified as follows: 81 percent of the stratified stocks are allocated to Approved Forces, both Acquisition and Retention, as opposed to 69 percent a year ago, 13 percent is in the Economic, Contingency, and Allied Force Retention stocks, and

6 percent is Potential DOD Excess, about the same level for excess as that recorded a year earlier. Army Undelivered MAP stocks exceed $500 million as compared with $272 million last year.

Army Stock Fund Inventories (Table 34)

Included in the Army supply system inventories shown in Table 33 are more than $2.4 billion in the Army Stock Fund, over 20 percent of the total. Inventories under stock fund increased $433 million during the fiscal year. A comparison of the present inventories with those of a year ago, by category, shows that every category except Weapons and Fire Control materiel increased in value of inventory, largest gains being registered in the Air, Electronics, and Ground Forces Support materiel categories. Stocks owned by the Command Channel stock fund divisions, CONARC, USARPAC, USARAL, USAREUR, and USARSO, have been distributed into the 13 materiel categories shown, which are standard for all stock fund divisions.

At the end of the year, 72 percent of the stratified stocks were