Because Jobsite personnel apparently did not attach sufficient inportance to Property and Material Accounting Procedures to notify on- continent adminsitrative and fiscal authorities, and because of normal time lag from the time of on-continent receiving until issuance frou Jobsite inventories (60 to 90 days), this violation of Fiscal Procedures was not ascertainable from the on-continent records until late January 1950. By this time it became evident that the monthly Summary of Stores Issues was not being received on a current basis. It was considered possible that Jobsite warehousing or fiscal personnel were dilatory in processing and recording the Stores Issues as required by the established procedure. In early February, the On-Continent Assistant Controller was instructed to proceed to Jobsite for a few weeks to survey the situation, as well as to review other routine fiscal matters. From his reports to the Chief Fiscal Officer and Controller and from oral information obtained by questioning returning Jobsite employees, the seriousness of the actual situation became obvious. The Assistant Controller, on temporary duty at the Jobsite, was instructed by teletype to remain at Jobsite pending the arrival of senior management officials of the Corporation, early in March 1950, and to place himself at the disposal of such officials for the length of time necessary to resolve the situation. Conferences were held with Jobsite management, warehouse, and fiscal personnel and the On-Continent Assistant Controller, for the purpose of determining the extent of defection in accountability control and for the purpose of devising remedial action. The Assistant Controller was assigned the administrative responsibility for rectifying the condition, and Jobsite personnel were directed to assist and cooperate in every way possible in reestablishing adequate accountability records and controls. Complete physical inventories were taken. However, because of the inadequacy of warehousing space, the difficulty of ready accessibility to materials stored in open storage areas, and the lack of erderly arrangement of many stores items, the result of the physical inventories taken at this time was not conclusive. These inventories were used, however, as a basis for establishing decentralized stock record cards at various warehouse locations; and the difference between the total dollar amounts of the physical inventories, plus the Stores Issues processed prior thereto, and the total dollar amount of materials receipts to the date of the physical inventories were recorded in a suspense account "Inventory Variance Account." By means of subsequent analyses performed by a special group of en- gineers and accountants under the direction of the Jobsite Controller, and by means of subsequent complete and accurate physical inventories, the Inventory Variance Account was reduced to a negligible amount, and Jobsite Materials and Equipment Receipts were satisfactorily accounted for, and the costs properly distributed. Shortly after the dismantling of shot island construction camps and facilities and their return to salvage inventories, all materials and 11-23