to installation or erection at Jobsite. Without exception these claims (ineluding the item cost, on-continent freight, Jobsite direct labor, and a reasonable allowance for supervision and overhead) were settled in a satisfactory manner, adequately protecting the government from financial loss by reason of established negligence on the part of the vendors. Materials and equipment expended at Jobsite by loss, destruction, or normal wear and tear were cleared from accountability records by means of reports of survey containing full information as to the circumstances under which expended. These were adequately documented and certified by responsible Contractor personnel and authorized representatives of the various government agencies, all in accordance with established formal procedure, as approved by the AEC Chief of Supply at Los Alamos. Hecause many of the surveyed items of major equipment had been almost or entirely depreciated scut prior to the date of survey, it was possible to charge appreciable amounts to the General Ledger Account, "Reserve for Depreciation." Until approximately November 1949, Property and Materials Account- ing Procedures were generally adhered to in a satisfactory manner, and the Jobsite and On-Continent Fiscal Offices were able to maintain ade- quate accountability control. During late 1949, Jobsite Stores Issue Procedures were abandoned or disregarded in practically all the construction materials warehouses. In a concerted effort to regain pro- jected construction schedules which were some 60 days behind by reason of the shortage of funds in May and June of 1949, and by reason of the inadequacy of govermment furnished shipping, it was erroneously concluded at Jobsite that materials accountability should te sacrificed to construction speed. Without the knowledge of on-continent administrative and fiscal or- ganizations, the Jobsite Superintendent of Warehouses was instructed by Jobsite Management to relinquish his administration of practically all the construction materials warehouses to the various craft superinten- dents. This arrangement precluded any possibility of the maintenance of accountability controls by the Jobsite Warehouse Superintendent and the overseas and on-continent fiscal personnel. As was to be expected, the customary disinelination of construction or operating personnel to be hindered in their work by “non-essential paper work,” resulted in a complete breakdown in accountability records because large quantities 3 construction materials were used without the preparation of Stores 28ues. Some effort was made to retain accountability by means of charging shipments, as received, directly to the Jobs in Progress, in most instances based on the end-usage indicated by the applicable Field Requisition. Ever changing priorities of the many features of work and the normal inclination of construction superintendents to meet their individual construction schedules without due regard for the propriety of their methods resulted in major diversions of materials in the field. In many instances large quantities of materials charged directly from the Inventory in Transit Account to specific Jobs in Progress reappeared on subsequent physical warehouse inventories. 11-22