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-

Select target paragraph3