CHAPTER Ill, SECTION 2
SECTION 2
ACCOUNTING
GENERAL.
basis for FY 1957 Financial Plan, which covered
For accounting purposes, Operation HARDTACK,Phase I, covered the period from 1 September 1956 through 30 September 1958.
HARDTACK. Progressively refined budget esti-
Modification No. 55 to Contract AT (29-2)-
20, dated 29 June 1956 andeffective 1 July 1956,
established the Commission’s accounting requirements under Article IX, Section 1, Accounts;
Section 4, Reports; and Section 8, Internal
Audit. Accounting records, books of account,
systems of accounting, internal control, auditing,
etc., were to conform to generally accepted accounting principles satisfactory to the Commission. Accounting records under the Contract
were maintained as a separate and distinct set
of accounts which supported all costs incurred,
revenues
earned,
fixed-fee accruals,
and
the
receipt, use, and disposition of all Governmentowned property under the management of H&N.
Accounting statements and reports required
by the Commission were prepared and submitted
in accordance with the applicable provisions of
the AEC manual. Additional and special reports
for the Commission were prepared and submitted
when requested.
The Jobsite accounting offices maintained
all basic records of time-keeping and payroll,
cost accounting, property and material inventory
accounting, token payments, travel advances,
revenue accounts, etc., and transmitted this in-
formation to the Home Office monthly for con-
solidation with the firm’s records. Except for
an Interim Special Test Cost Report initiated
during Operation HARDTACK, all financial
statements and cost reports required by the
Commission were released by the AEC Project
Home Office Accounting Departments.
first budget
relative to
FY 1958 was devoted entirely to Operation
mates for the year were prepared in October
1956 and April 1957. The April estimate was
applicable as of 1 July 1957, the start of FY
1958, but detailed operational plans werestill
subject to change. Accordingly, decisions of the
Commission were translated promptly by H&N
into plans, which were steadily furnished to the
Budget Section. This enabled the Budget Section to interpret the plans into monetary requirements and to issue semi-monthly recapitulations giving the status of known criteria
and the estimated result of cumulative changes
on total year costs. After several months, the
operational program became sufficiently stabilized to permit AEC/ALO, to formulate a Financial Plan, which served as the framework
for FY 1958 cost limitations. Concurrently, the
Budget Section went to a monthly basis for
issuing recapitulations and year-end forecasts.
Each monthly forecast was compared with
the existing Financial Plan, and an explanation
was submitted as to why each item in the Plan
was at that time considered satisfactory or
inadequate. These monthly forecasts served the
purpose of notifying all concerned of the cur-
rent financial picture and were used by ALO
as the basis for revising the Financial Plan,
when advisable.
The final phase of Operation HARDTACK,
falling within the first several months of FY
1959, was included within the structure of the
total estimated cost for that year.
GENERAL AND COST ACCOUNTING.
Three additional monthly reports were pre-
pared by Jobsite during this Operation, primarily
BUDGETS, FINANCIAL PLAN,
MID-YEAR REVIEW.
The
the initial stages of Operation HARDTACK.
for the use of the JTF-7 Controller, AEC, and
the User personnel. These reports were:
Operation
HARDTACK was submitted in April 1955,
covering FY 1956, 1957, 1958, and a portion of
FY 1959. In October 1955 and April 1956, revised budgets were submitted, each one giving
effect to progressively refined plans based on
decisions of the Commission. Experience gained
during previous Operations permitted H&N to
estimate more closely the budgetary requirements involved as plans became more definitive.
The April 1956 budget estimate became the
1.
The Estimate Report, which compared
the latest working estimates to the
Official Estimates of Expendable Con-
struction, showing percentage of completion in the following categories:
Scientific - Zero Stations
Scientific - Numbered Stations
Scientific - Other
Stations
Than
Numbered
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