13
and supporting all costs incurred, revenues
earned, fixed-fee accruals, and the receipt, use,
and disposition of all Government-owned property coming into the possession of the Contractor under this Contract. The Contractor
would also furnish to the Commission financial,
cost, and other reports with respect to activities
under the Contract, as prescribed.

Due to the geographic location of the site
of work, it was tiecessary that the Accounting
Department be divided into two groups - Home
Office and Jobsite. The Jobsite Controller, re-

porting to the Resident Manager as a staff
officer, administered and controlled the various
accounting operations in accordance with the
standard operating procedures and basic accounting policies established and issued through
the office of the Home Office Controller. The
field office prepared and audited all basic timekeeping records, cost accounting data, material

accounts, token payments, travel advances, cashier records, inventory records, etc., for transmittal to the Home Office.

Except for revisions and additional reports
required by the Commission, accounting state-

ments and reports were submitted and records

were maintained throughout Operation RED-

WING in accordance with the applicable requirements of the USAEC Controller's Manual,
now incorporated into the AEC Manual. Functional accounting activities in the Home Office
were segregated as indicated under the following headings:
BUDGETS, FINANCIAL PLAN, MID-YEAR
REVIEW.
Budgeting

for

a

fiscal

year’s

operation

commences approximately sixteen months prior
to the beginning of the actual fiscal year; at
the same time, a general scope of operations and
estimated costs are prepared. During the month
of April 1953, pursuant to instructions and
information received from the Commission, a

revised Budget reflecting changes in scope of
work for fiscal years 1953 and 1954 and in-

cluding estimated operating costs for Operation
REDWING during fiscal year 1955 was completed and submitted. Refinement of plans,
based on decisions of the Commission, were for-

warded to the Budget Section for recording and
coordination. Experience accumulated during
prior Operations led to close approximation of

funds required for construction and other phases

of Jobsite operations. Using the Budget, antici-

pated cost schedules were established for Operation REDWINGand costs were recorded in the
same pattern, permitting proper comparisons
of budgets to actual costs.
Approximately three months prior to the
beginning of each fiscal year, a request is received from the Commission for detailed expla-

CHAPTER i1i, SECTION 2

nations of the intended application of funds
estimated for each operational phase. At this

time, the needs and requests of H&N Divisions
responsible for Contract performance are correlated and interpolated into the respective monetary requirements of the AEC budget format.
After review by the Commission, the H&N
budget presentation became an approved financial plan. This plan constituted the monetary
framework within which operational costs had

to be contained, and the Budget Section periodically reviewed costs to ascertain that budgeted
amounts were not being exceeded. In the event

costs approached budgeted maximums, H&N
Management was notified by the Controller; if
additional amounts were required, the Commission was notified. Due to the nature of contractual operations during REDWING, requirements
frequently changed as work progressed, and
these changes had to be recognized and reflected
within the budget. Semi-annually, a thorough re-

appraisal was made of forecast requirements.

Necessary adjustments were reflected and the
budget was resubmitted in a formalized “MidYear Review.” After review by the Commission,

the H&N Mid-Year budget presentation became

a revised financial plan for that fiscal year.

GENERAL COST ACCOUNTING. |
This Section is responsible for the maintenance of complete accounting records required
by the Commission and H&N Management. Cost

accounting procedures were established to cover
cost distribution of contractual expenditures for
preparation of AEC cost-budget reports and
Management cost reports. During the month of
August 1954, a new format, Schedule A, Organizational Cost-Budget Report, replaced the prior
Cost-Budget Report as part of the monthly
Financial Statement. The new Financial Statement format, Schedule B, Analysis of Organizational Costs, was initiated at the same time.
New schedules were prepared for Fiscal
Year 1954, and direct comparisons were made
between actual costs and the Financial Plan by
category level and/or account number. Comparisons were also prepared on Job 1 by item
number between estimated labor and material
and actual labor and material. These new schedules provided H&N Management with pertinent
information for maintenance of continuous cost

controls. For the month of March 1955, certain
Cost Report Schedules were revised toward sim-

plification. Schedules E-12, E-13, and E-17 were

revised to facilitate comparison between actual
costs and current estimates. Schedules E-2 and
E-3 covering labor and material comparisons

were discontinued. Format for Schedules E-4
and E-5 were revised to appear on the same
format as Schedule E-17. Format for Schedule
E-10 was revised to eliminate the overseas accounts not applicable to the on-continent operaPage 3-7

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