CHAPTER Ill, SECTIONS 1 and 2 appropriate purchase orders to determine which items would require special handling to meet completion dates. Inventories and long supply reports were checked for the possible substitution or interchangeability of items, or for determining the need for a change in stock levels. The Chief of Operations was also responsible for the issuance of all requisitions based on advance material estimates and bills of materials as furnished by Engineering, plus those items ordered by the field forces. All requisitions were checked to ascertain that the materials on order were justifiable and that such items were being purchased in accordance with Commission and Contractor policies. The Project Engineer was in charge of all engineering phases of the project, such as funneling the engineering requirements into the proper channels within the H&N organization, and acting as final source of engineering information for both AEC and H&N management personnel. He specified the materials and equipment to be incorporated into structures and systems, except minor items normally carried in stock or items required for construction which were designed and built in thefield. The Project Manager, assisted by the Resident Manager, supervised operationsin thefield, including the maintenance of all PPG facilities. Since this entailed a busy schedule for these two men, and due to concurrent operations being performed on two widely-separated atolls, an Assistant Resident Manager was assigned for Bikini Atoll. The supervision for all this activity was controlled through six division heads, shown in the Jobsite Organization Chart, Figure 3-2. Detailed description of the mechanics of administrative control covering the Accounting, Estimating, Industrial Relations, Procurement, Security, and Office Service Departmentsis re- lated in succeeding sections of this chapter. SECTION 2 ACCOUNTING For accounting purposes, Operation IVY ended on 31 December 1952, and Operation CASTLEwasinitiated on 1 January 1953. The terms and conditions of Contract AT(29-2)-20, Article VIII, detailed the Accounting Department’s requirements and responsibilities. Briefly, these terms and conditions decreed that accounting records, books of account, system of accounting, internal control, and auditing were to conform to generally accepted principles which were satisfactory to the Commission, and that the Contractor would furnish reports and financial statements as the Commission required. Due to geographic separation, it was neces- sary to divide the Accounting Section into two groups - Home Office and Jobsite. Jobsite ac- counting operations were administered by the Resident Controller, who reported to the Project Manager, but were carried out in accordance with the basic accounting policies established and issued by the Home Office Controller. The field office prepared and audited all basic timekeeping, cost distribution data, materiai issues, token payments, travel advances, cashiering, inventory records, etc., for transmittal to the HomeOffice. Except for revisions and additional reports required by the Commission, the accounting statements and reports were submitted and records were maintained throughout Operation CASTLE in accordance with the applicable rePage 3-2 quirements of the USAEC Controller’s Manual. Functional accounting activities in the Home Office were segregated as shown by the following headings. BUDGETS. Fiscal-year budgeting operations commenced approximately sixteen months prior to the beginning of the fiscal year when a general scope of operations and the estimated costs were outlined. As various budget factors became more firm, changes were written into the original outline. Refinement of plans, based on decisions of the Commission, were forwarded to the Budget Section for recording and coordination. Approximately three months prior to the beginning of a fiscal year, the AEC Field Manager’s office requested detailed explanations of the intended application of funds estimated for each operational phase. Approximately fifty individual items were involved, each covering a particular scope. At this time, the needs and requests of Holmes & Narver divisions responsible for Contract performance were correlated and interpolated into the respective monetary requirements of the AEC budget format. After being reviewed by the Commission, the Holmes & Narver budget presentation became an ap- proved finance plan. This plan constituted the monetary framework within which operational costs had to be contained, and the Budget Section reviewed constantly all costs to ascertain that budgeted amounts were not being exceeded. In the event costs approached budgeted max-