Accounts

Title Z.-Conversion Accounts.

of (4) An indispensable adjunct of the "Account supplies" is the manufacturing conversion account, which shall embrace all articles manufactured department.

A distinct spe

manufacturing

and repaired by the Government for the naval establishment and delivered to general storekeepers for issue. Title Z shall be debited with all materials used in manufacture, and with the appraised value of all articles invoiced to this title for repairs, and with all labor applied thereto, together with such additional charge necessary to cover the general expense included under attendance, power, etc., which can not be charged directly to specific product; and it shall be credited with the ascertained cost of completed manufactures as invoiced to general storekeepers for issue. Material unavoidably wasted in manufacture shall be included in cost of product.

(a) While the debit items of material and labor will be exactly cial account to balanced in the long run by the credit items of completed products, be kept with each there will never be an exact balance at any given time owing to department. the unfinished work in hand for which debits have been made, but for which the final credits are not yet ascertained. In order to keep this general account satisfactorily in hand in the office of the Paymaster General, a distinct special account shall be kept with each bureau manufacturing establishment at each navy yard.

Invoices, how inscribed.

VOUCHER INSCRIPTIONS.

1529. (1) Invoices of supplies transferred from one station to another shall be inscribed under Title X, "Supplies in store," in the blank space to the left of the printed headings of the money columns.

(2) Invoices of supplies, except equipage, transferred by a general storekeeper to a ship in commission, or from a ship to a general storekeeper ashore, shall be inscribed, in like manner, "From Title X, Supplies in store, to Title Y, Supplies afloat," or the reverse, as the case may be.

(3) Invoices of outfit or equipment, included in the general heads named under Title B, delivered to a ship shall be inscribed "For Title B, U. S. S. ," and when returned into store shall be inscribed "From Title B, U. S. S. , to Title X. (4) Invoices of supplies transferred from one ship of the Navy to another shall be inscribed in like manner, "Under Title Y," or Under Title B," as the case may be.

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(5) Invoices of materials and supplies issued for use in building a ship shall be inscribed "For Title A, U. S. S. as demanded by the requisition that was the occasion of the invoice; if for use in repairing a ship the inscription shall be "For Title D, U. S. S.

(6) Invoices of supplies to be used for construction of new buildings or other property comprised under "Real estate and chattels,' shall be inscribed "For Title E, U. S. navy yard (or station)

if for new machinery, machine tools, etc., "For Title F, U. S. navy yard (or station) — -;" if for repairs to property embraced under either of the two above-named titles, "For Title E or F (as the case may be), U.S. navy yard (or station)

(7) Invoices relating to expenditure of material or supplies to be used in the manufacture or repair of any article, which, in its completed state, will be invoiced to the general storekeeper for issue, shall be inscribed "For Title Z, Conversion account.'

(8) All such manufactured and repaired articles, when issued by the general storekeeper, shall be invoiced as 'For Title B, U. S. S. if pertaining to the general heads named under Title B; "For Title E, U. S. navy yard (or station) ," if pertaining to real estate or chattels; For Title F, U. S. navy yard (or station) if pertaining to machinery plant; "For Title G, U. S. navy yard (or station) if pertaining to general maintenance, etc. (9) Invoices of unused material returned into store, which has been charged directly to objects under Titles A, D, E, F, and G, shall be inscribed in like manner, "Credit to Title A, U. S. S. or 'Credit to Title D, U. S. S. navy yard (or station)

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yard (or station)

(or station)

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"

or Credit to Title E, U.S. or Credit to Title F, U. S. navy or "Credit to Title G, U. S. navy yard as the case may be.

(10) Invoices of unused supplies returned into store, having previously been issued and charged to Title Z, "Conversion account,' shall be inscribed Credit to Title Z, Conversion account."

(11) Invoices of supplies for experimental purposes shall be inscribed, "For Title N," unless a finished product is to be turned over to the general storekeeper for issue, in which case they shall be inscribed, "For Title Z."

(12) Invoices of supplies for models of ships shall be inscribed, "For Title Z." When completed, the models shall be invoiced to the general storekeeper, by whom they shall be taken up in his books and expended "For use," the invoice thereof being inscribed, "For Title N."

(13) At shore stations vouchers for expenditures. of stores condemned as valueless shall be inscribed, “From Title X, Supplies in store, to Title W, Deterioration and waste." On board ships, like vouchers shall be inscribed, 'From Title Y," or "From Title B," as the case may be, to "Title C, Cost of commission."

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(14) If an invoice embraces supplies chargeable to more than one title, those to be debited to each must be clearly shown, either by grouping under the respective titles the issues to be charged severally thereto, or by a recapitulation by titles, the total of which shall agree with the total of the invoice.

(15) On board ships in commission the quarterly invoices of expenditures "For use" prepared by the respective bureau representatives shall be inscribed, "For Title C, U. S. S.

Naval supply

1530. (1) Invoices of all freight transferred by a general storekeeper to the pay officer of a supply steamer shall be inscribed under steamers. Title X.

(2) Invoices of supplies transferred from one supply steamer to another shall be inscribed under Title X.

(3) Invoices of supplies transferred by a pay officer of a supply steamer to a foreign station shall be inscribed under Title X.

(4) Invoices of all supplies, except equipage, transferred from a supply steamer to a ship in commission shall be inscribed, "From Title X to Title Y."

(5) Invoices of outfit or equipment included in the general heads named under Title B, delivered by a supply steamer to a regular ship in commission, shall be inscribed, "From Title X to Title B." (6) Invoices of freight taken for the use of a supply steamer shall be inscribed, "From Title X to Title Y" or "Title B," as the case may be.

1531. (1) Public bills for supplies delivered to general storekeepers shall be inscribed, "For Title X, Supplies in store."

Public bills, how inscribed.

Balance sheets

nied by a summary.

(2) Public bills for supplies purchased by and delivered directly to ships shall be inscribed, "For Title Y, Supplies afloat.' (3) Vouchers for transportation, freight, advertising, rent, express charges, mileage, etc., shall bear inscription in like manner, "For Title V, Miscellaneous.'

1532. Each balance sheet rendered by a general storekeeper shall to be accompa- be accompanied by a summary of the expenditures "For use,' showing the aggregate of issues for each title and subtitle to which issues have been made during the quarter, the total or the summary agreeing with the total of the "For use" column of the balance sheet.

Pay rolls to be summarized unproper titles.

der

Summary of

PAY-ROLL AND ACCOUNT-CURRENT SUMMARIES.

1533. Vouchers for pay and wages require careful consideration, as one roll may contain disbursements that are chargeable to many different titles. Attention to the following directions will secure proper data for writing up the accounts:

(a) The pay officer of a station will have the necessary informayard pay rolls, of- tion in his possession for dividing among the different titles the amounts disbursed on his rolls of officers and enlisted persons.

ficers and men.

Summary of ship's rolls.

(b) As these rolls do not reach the Bureau of Supplies and Accounts, a summary of each complete roll shall be made by the pay officer, showing the gross amount chargeable thereon to each title or subtitle embraced in the same, and showing separately the gross amounts paid under Title G to officers and enlisted persons.

(c) This summary shall be a complete epitome of all credits and debits entering into the quarterly roll, arranged for bookkeeping purposes. The second money column shall contain the various totals of the different columns composing the recapitulation of the roll, the first showing the separate amounts to be dispersed among the proper titles and subtitles.

(d) The pay officer shall certify that the summary is correct and that its total agrees with that of the roll, and the commandant shall transmit it, after approval, to the Paymaster General.

1534. (1) The pay officer of a ship shall prepare, in like manner, a summary of each completed pay roll, showing separately, the gross amounts chargeable under the several titles to officers, crew, and marines, which should be certified, approved, and transmitted with his account current for the Paymaster General.

(2) The summary of a ship's quarterly pay roll is identical in principle with that of a navy yard, embracing all of the debits and credits shown on the roll, and showing the requisite dispersion of the recapitulation totals among the various accounts. Ship's expenditures not embraced in the pay-roll summaries shall appear in the balance sheets and in the accounts current rendered by pay officers. Summary of 1535. (1) Purchasing pay officers shall transmit to the Paymaster purchasing pay General, quarterly, a summary of account current, embracing in an epitomized form all the debits and credits of the account current for the same period.

officer's account current.

(2) All vouchers transmitted by the Paymaster General for settlement, for which remittances are made, are classified in the Bureau of Supplies and Accounts under titles and subtitles, and should be reported on the "Summary of account current" in one Auditor's certificates included in remittances from the Paymaster General should be treated as vouchers, and included in this sum.

sum.

(3) Payments of auditor's certificates under the appropriations 'Pay of the Navy" and "Pay miscellaneous" for the current fiscal year should be reported under subtitles according to their special character.

(4) For all vouchers not requiring approval, the aggregate amount paid under each title must be shown.

1536. (1) A summary of the pay roll of each department of the Summary of several yards shall be made up, showing the gross amount charge- department rolls at navy yards. able to each title and subtitle. It shall be prepared in the respective department offices from the records of the time clerks, and based upon the charges for wages in the job-order accounts. The wages charged to the various jobs under Title Z shall be summed up, and reported in the summary of the department roll as "wages charged to conversion account. For expenditures under Titles A, D, and G, the subtitles shall be further divided into objects in accordance with a system of subdivision established by the bureau concerned. Stub requisitions for material and “ Summaries of expenditures of material for use" under above titles shall likewise indicate the objects in accordance with such subdivision.

(2) Wages of superintendents, engineers, firemen, oilers, sweepers, Indirect charges. and other employees that can not be assigned to specific titles or subtitles, being for services of a general nature common to and shared in by all, shall, at the end of each month, be prorated and distributed among the several titles and subtitles benefited thereby during the month. The amounts thus assigned shall be added to the direct charges to the several titles and subtitles, to form the gross amounts chargeable. Indirect charges shall be made only when it is impossible to charge directly the labor and material concerned.

(3) Pay-roll summaries shall also show the appropriations under which the several expenditures are made.

(4) A statement of amounts expended for civilian expert aids, Statement draftsmen, writers, copyists, and model makers employed by the of additional draftsmen, etc. authority of the Secretary of the Navy, and paid out of appropriations for new ships, shall accompany the pay-roll summary, and shall designate the particular vessels or other items to which such expenditures are charged in the summary.

Labor fur

(5) The summaries of the pay rolls of the several departments and the pay-roll summaries forwarded to the Paymaster General nished to other shall show the amounts charged for labor furnished to other de- departments. partments, but not the labor performed by other departments. Labor performed by one department for another shall be summarized, by titles, subtitles, appropriations, and bureaus, on the payroll summary of the department upon whose rolls the labor is borne, and not upon that of the department for which it is performed.

and ap

(6) A summary must bear the certificate of the head of department Pay rolls certhat it is correct; and the commandant, after approval, shall trans- tified mit it to the Paymaster General within fifteen days after the completion of the rolls for each month.

proved.

CONSTRUCTION WORK ACCOUNT.

1537. (1) In order that the cost of products may be accurately System of acascertained, accounts in accordance with the following system shall counts.

be maintained in the constructive and manufacturing departments

of all navy yards and stations, except at the Washington navy yard,

12326-22

Foreman's

books.

and the Torpedo Station at Newport, R. I., where the methods now in use may be continued.

(2) In each department a book shall be kept, known as the joborder book, in which shall be recorded, under serial numbers, all jobs of work ordered. For each job order a record shall be kept of all labor and material, as described below.

(3) From the foreman's time books or character-of-work books, there shall be entered in the rough condensation sheet the time and cost daily for each class of labor upon the job. From the rough condensation sheets the job-order sheets shall be filled out and totaled daily. There shall be a book known as the daily-analysis-oflabor book, in which current jobs for each month shall be grouped in a suitable manner. In general, this grouping shall follow the subtitles and objects under which reports of cost of work are made to the bureaus of the Navy Department. The cost of labor shall be entered daily from the job-order sheets into the daily analysis book. Where the nature of the work done is such that the cost of each class of labor upon it need not be recorded, the job-order sheets need not be used, entries being made directly in the daily-analysis book. The daily-analysis book, however, must be kept in every case. The labor cost shall be summed semimonthly in the daily-analysis book for the summary sheets of pay rolls. From monthly summations of the daily-analysis book all routine reports to the Depart Record cards. ment, made monthly, shall be derived. When record cards for recording labor musters and charges thereunder can be utilized to advantage, their use in lieu of the books hereinbefore numerated is authorized.

(4) The stub requisitions received from the general storekeeper shall be kept separate for each month, suitably arranged. At the end of each month they shall be grouped in accordance with the grouping of job orders in the daily-analysis book, and the prices summed, in order that the total expenditures of labor and material on the various groups of job orders may be determined. In case a job is not completed in one month, the job-order sheet and material stubs for each month shall be kept until the completion of the job, when they shall be used to complete the records of cost of completed work. The sheets giving the cost of completed work shall be suitably grouped and bound, to form a complete and convenient record of work done.

(5) All charges that can not be made directly to an object or job order, whether of labor or material, such as wages for engineers, firemen, etc., fuel for power, oil, waste, etc., shall be charged to an expense account, the cost of which shall be determined in the same manner as if it were a job order. Material issued for the purposes entering into this account shall be expended by the general storekeeper under Title G, and the necessary adjustment made in the Bureau of Supplies and Accounts from a quarterly statement to be furnished by the respective heads of the departments, showing the portions of the account chargeable to each title and subtitle. Wherever possible, however, indirect charges shall be avoided. As each job is finished during a month there shall be added to the totals of direct charges, for labor and material respectively, from the opening of the job-order account of the job, a proportion of the balances of the expense account at the close of the preceding month. The percentages for indirect expenses to be thus applied to finished work shall be obtained upon closing each month's account, by dividing the respective balances for labor and material in the