CHAPTER IIl, SECTION 2 tion and the on-continent accounts not applicable to the overseas operation. During the first part of 1955, a proposal to adopt standard labor rates for work performed under Jobs I, IJ and III of the next overseas test operation was forwarded to the Commission. Approval was received, and the use of standard labor rates for purposes of cost distribution was placed in effect on 27 June 1955. During the continuance of Operation REDWING, this method has been used to advantage; periodic reviews are made and necessary adjustments effected. On 15 September 1955, Revision No. 7 to the Chart of Accounts was issued. This issue included al} additions and changes in accordance with the latest policies and requirements under the Contract and completely replaced the prior Chart of Accounts. Pursuant to the request of the Commission to submit suggestions for a new format for Schedule B, Analysis of Organizational Costs, that applied to H&N’s particular accounting system, a new format was formalized and ap- proved. Commencing with the month of October 1955, distribution of indirect costs was deleted and only direct costs were reflected. Costs were segregated as to Expendable Construction and Maintenance, with Maintenance costs indicated in the eight prime accounts. Plant and Equipment costs were broken down by Project Budget numbers. The Scientific Program - Job I (Contract Identification Number 30,000 series and 50,000 series) Work in Process Subsidiary Accounts included a detailed account for each Scientific Station and/or Structure together with the ap- propriate Joint Task Force Seven Cost Code. The Incidental Support Construction, Job I, (Contract Identification Number 56,000 series) Subsidiary Accounts included a detailed account for support services rendered the Task Groups and Units. PAYROLLS AND TIMEKEEPING. Employee payrolls were prepared and distributed on a weekly basis. As under other ac- counting functions, payroll activities were di- vided into two groups- Home Office and Job- site. The Home Office payroll, prepared from individual employee time cards, was distributed on the second day after close of each work-week. As under prior Operations, the policy of processing off-continent payrolls and forwarding chec-s to the employee-designated allottee within five days after close of a work-week was con- tinuci, and the wage for the regularly scheduled work-week was paid currently. Upon receipt of the time cards in the Home Office (approximately ten days later) actual hours of work Page 3-8 were compared to hours previously paid for the period, and adjustments for irregular hours worked were effected on the current pay check. In order to eliminate the necessity of continuously checking the hours worked against hours paid, and effecting adjustment, a proposal was submitted to the Commission and approval was granted to advance each employee two successive weekly checks for the amount stated in the Employment Agreement. This method permitted the Payroll Section to com- plete final irregular hour adjustments and to process subsequent payrolls and pay checks in accordance with actual hours workedasreflected on the weekly summary card received from Jobsite. At time of termination, advance checks were deducted from the amount due for the last two work weeks. In accordance with Appendix “B” of the Supplemental Agreement to the Contract, Modi- fication 38, deductions were made from overseas employees’ earnings to cover the cost of return transportation in case of incompleted contracts due to discharge for cause or voluntary termination. These monies were placed in a “Trustee For Travel Fund” account and returned to employees upon satisfactory completion of Contract. In order to eliminate certain controversies and to comply with legal requirements, Appendix B was revised by Modification No. 41, whereby the Contractor could advance the employee’s cost of transportation to the Jobsite; deductions from the employee’s earnings were made until the advance amount was repaid. This method of handling costs of transportation permitted H&N to close the “Trustee For Travel Fund.” Use of new methods and procedures installed during this Operation enabled the Payroli Section to efficiently process weekly payrolis for a number of personnel far in excess of the number possible under prior procedures and methods. For the period from July 1954 through May 1956, a total of 143,287 checks, in the approximate amount of $24,600,000 was processed for Jobsite employees. As of April 1956, the payroll operation served a peak o! 2,852 overseas personnel. ACCOUNTS PAYABLE. The Accounts Payable Section processe: and was responsible for payment of all accounts, including travel expense statements, with the exception of travel expenses covering employer journeying to the Jobsite under Employmer Agreements. Although policies and procedures were predicated upon experience gained under prior Operations and compiled with the requir ments of the Commission’s General Accounti) Office in the post-audit of expenditure ot Government funds, review of methods used re-