Account 5140 Subsistence and Travel Expense will be supported by listings giving the pilot's name and amount. The travel expenses recorded in this account are only those provided for under paragraph 4(c) of the Canada-United States Memorandum of Arrangements and which are recoverable from operators of vessels.

Account 5415 Employees' Salaries and Wages, Payroll Taxes Etc. will be supported by list showing employees' name, title and salary. (Only employees directly engaged in dispatching and accounting activities are included.)

Account 5420 Rents and Leases will include agreed amount of rental for office space and necessary equipment.

Account 5430 Heat, Light, and Power will be supported by listing of utilities and amounts.

Account 5465 Telephone, Telegraph, and Teletype will be supported by listing of supplier and amounts.

Accounts 5445, 5450, 5460, 5470, 5475, 5490, 5495, and 5540 do not require supporting data.

The following entries will be made upon receipt of settlement statement:

To record payment to Canadian Pilots' Pool.

[28 F.R. 6644, June 27, 1963, as amended at 30 F.R. 12680, Oct. 5, 1965; 32 F.R. 14223, Oct. 13, 1967]

Financial Reporting

11. REPORTING REQUIREMENTS

1. Each Association holding a Certificate of Authorization shall file quarterly with the Director the following financial statements:

a. Balance Sheet

b. Profit and Loss Statement

2. The financial statements will list each active account, including subsidiary accounts, prescribed in the Uniform System of Accounts.

3. The financial statements will be prepared for the calendar quarters ending March 31, June 30, September 30, and December 31, unless otherwise authorized in writing by the Director.

4. Each Association will furnish Director with one copy of all settlement statements whether issued or received.

5. The financial statements, together with any other required statistical data, shall be submitted to the Director within 30 days unless otherwise approved by the Director.

6. The financial statements at the end of each fiscal year will be audited by independent Certified Public Accountants and will bear a short form certificate. [27 F.R. 8617, Aug. 29, 1962, as amended at 32 F.R. 14223, Oct. 13, 1967]

Bonds

12. FIDELITY BONDS

Each association holding a Certificate of Authorization is required to maintain a fidelity bond to indemnify against loss of money or other property through fraudulent or dishonest acts by employees.

The board of directors of each association shall annually fix the amount and character of fidelity bonds required of those persons handling or having custody of funds or other liquid assets.

The Director shall be advised of the amount and period of coverage.

[27 F.R. 8617, Aug. 29, 1962, as amended at 32 F.R. 14223, Oct. 13, 1967]

Budgets

13. OPERATING BUDGETS

Each association holding a Certificate of Authorization is required to prepare and submit to the Director, by the 31st day of January of each year, an estimated operating budget for the forthand submit to the Administrator, by the 31st day of January of each year, an estimated operating budget for the forthcoming operating season.

Estimates of revenue shall be itemized to reflect the principal sources of income, with pilotage income segregated from other classes of income.

Estimates of expenses shall be on a calendar year basis, with adequate explanation of any unusual or nonrecurring item.

Those items of expense includable in Inter-Association settlement statements as outlined in section 10 of the Uniform Accounting System Manual shall be

segregated and supported by required detail.

Estimates submitted shall be approved by the Association's Board of Directors. [27 F.R. 8617, Aug. 29, 1962, as amended at 32 F.R. 14223, Oct. 13, 1967]

Accounting Records

14. UNIFORM PILOTS SOURCE FORM

The "Pilot's Source Form-Great Lakes Pilotage" is approved for use by pilots in Great Lakes Districts Nos. 1, 2, and 3. This form is to be issued to pilots by authorized United States pilotage pools and changes shall not be made in the format thereof unless authorized by the Director.

Pilots shall complete forms in detail as soon as possible after completion of assignment and return entire set to dispatching office, together with adequate support for reimbursable travel expense.

Upon receipt by the pilot association the forms shall be completed by insertion of rates and charges as specified in the Great Lakes Pilotage Regulations (46 CFR Part 401). The discount for Canadian pilots due to exchange differential shall be reflected as a separate item. The amount of discount shall be based on the United States dollar parity rate as may be established from time to time by the Minister of Finance of Canada.

Copies of the form shall be distributed as follows:

Original to accompany invoice;

First carbon to Director for statistical purposes;

Second carbon to billing office for accounting record;

Third carbon to pilot's own Association for pilot's personal record;

Fourth carbon to corresponding Canadian Association or agency for office use.

Associations shall account by number for all pilot source forms issued.

[28 F.R. 6645, June 27, 1963; 32 F.R. 14223, Oct. 13, 1967]