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connection with the construction of permanent buildings and similar improvements such special accounts to be closed out upon completion of the work which they were designed to cover, or in any event at the end of the fiscal year.
(a) At agencies and nonreservation schools having agency activities the cost ledger should reflect a very simple division of the unit's activities into features; in no case need more than four or five permanent cost accounts be maintained. They will include the agency, the boarding school, the day school, the hospital (when separate from the boarding school), and any other principal function or activity. At small agencies a single permanent-cost account will suffice. Special accounts will invariably be opened to assemble the expenses of construction and improvement work of a permanent nature.
463. Subclassification of operating expense.—To obtain data for comparing the costs of similar projects or operations or for other administrative purposes, operating expenses will be subclassified under each cost account as follows:
(a) “Salaries and wages” (account 1) will include all salary payments to officers and employees, whether regular or irregular.
(6) “Materials and supplies" (account 5) will include the value of all materials consumed in operation or in construction and repair work, whether issued from "Stores” or expended direct from disbursement vouchers.
(c) “Repairs and preservation of property" (account 6) will include contract payments for the repair, maintenance, and upkeep of permanent property of the unit. The expenditures made under this account will be limited to the fixed assets and will usually be applied to the repairs of buildings and equipment. Payment for the maintenance and upkeep of temporary buildings and stores, repairs of rented or leased property, gratis repairs of individual Indian property, etc., will be included under “Expenses not otherwise classified.”
(d) “Traveling expenses, including per diem” (account 7) will include the payment of transportation and other traveling expenses, or any allowances granted to employees of the service in lieu of actual expenses of travel. This expense will include railroad transportation, water transportation, automobile, delivery, and similar transfer charges, freight and express on personal baggage, per diem bills, hotel bills, etc.
(e) “Expenses not otherwise classified” (account 8) as the title of the account indicates, is designed to include payments for other purposes than those discussed above. Among the principal items that will be included are rents, expenses of upkeep of rented buildings, telephones, light, electric current, subscriptions, advertisements, freight and transportation of supplies, printing and binding, and postal, telegraph, and telephone service.
(f) In addition to the charges made currently to the account “Operating expense" under the subclassifications indicated above, this account under the proper subclassifications will be charged at the close of each fiscal year with all unpaid obligations of the unit for services actually received, At the beginning of the succeeding fiscal year, however, the account will be credited under the same subclassifications in the same amount. These entries are required in order to bring into the accounts of a given fiscal year all items of expense actually accruing during that year, without, however, disturbing the general practice of charging the account “Operating expense” solely on the basis of disbursements actually made, except for storehouse issues.
464. Subclassification of operating income.-"Operating income" will be subclassified under eight captions, as follows:
(a) “Rental of buildings" (account 10) is designed to record amounts collected as rental on buildings owned by the Government or by the tribes.
(6) “Water rentals" (account 11) is designed to record amounts collected on account of the sale of water from irrigation and water-supply systems whose cost of operation is paid from funds of the unit.
(c) “Heirship fees” (account 12) is designed to record fees collected from heirship proceedings, as provided for by act of Congress dated June 30, 1913.
(d) “Tuition fees” (account 13) is designed to record fees collected from students who are required to pay tuition at a school whose cost of operation is chargeable to the unit.
(e) "School products" (account 14) is designed to record amounts collected on account of the sale of school products.
(A) "Advertising fees” (account 15) is designed to record collections on account of advertising the sale of individual Indian property.
(g) “Farm products" (account 16) is designed to record amounts collected on account of the sale of farm or garden products (other than the products of gardens at school).
(h) “Miscellaneous" (account 17) is designed to record the total operating income collected from other sources than the seven above indicated.
465. Subclassification of other income.—"Other income” will be subclassified under five captions, as follows:
(a) “Leases, grazing, and pasturage” is designed to record amounts collected on account of agricultural leases, grazing, and pasturage permits, trespass fees, and similar items.
(6) "Royalties” is designed to record amounts collected from mineral leases, including both advance and production royalty.
(c) “Sale of unappraised lands” is designed to record income collected, or accruing (in the case of installment sales only), on account of the sale of unappraised lands.
(d) “Sale of unappraised timber" is designed to record income collected on account of the sale of standing timber.
(e) “Miscellaneous" is designed to record all non-operating income collected from sources other than those above indicated. It will include contractors' fines and forfeitures, fines in Indian courts, profit on sales of appraised assets, damages, sales of rights of way, etc.
REGISTERS 466. Transactions affecting the general accounts will be recorded in four journals, or registers, denominated as follows:
Register No. 1, register of storehouse issues.
Register No. 4, register of miscellaneous transactions. These registers will be loose leaf and will be bound in a single binder. Entries will be made in ink.
467. Register No. I (Form 5–741).—The register of storehouse issues will be used to record the issues of expendable property made during the month. Entries will be from numerically arranged requisitions, by number and amount only. Amounts will be distributed in the proper cost account columns. This distribution will be unnecessary at units maintaining but one permanent cost account, except where special construction or other production features are involved.
(a) At the close of the month's business the columns on this register will be totaled. The total of the column headed “Amount" will be entered in the recapitulation as a debit to “Operating expense” and a credit to "Stores.” The totals of the distribution columns will be charged in the cost ledger to the proper features under subclassification 5. Care should be taken that all items in this register have been properly entered upon the stores cards. .
468. Register No. 2 (Form 5–742).-The register of disbursement vouchers will be used to record all payments made during the month by the unit. (All bills received by the unit for supplies or services procured should be verified and paid with the utmost promptness. Pending such payment no record of bills need be made, but they should, however, be carefully filed separately from all other office records.) All disbursement vouchers, with the exception of those covering individual Indian money payments, will be entered in this register to show for each item the date, voucher number, payee, and the amount in the column headed “Disbursement vouchers." Entry will be also made in the column reserved for the account chargeable with the disbursement, viz: “Equipment,” “Livestock," "Stores,” or “Operating expense." Should the charge pertain to some other account, entry will be made in the “Sundry” debit column, and the recapitulation number of the account chargeable indicated. Entry of any credit amount required by way of adjustment (as in the case of penalty deductions for delayed performance of contract, when a credit would be made to "Other income") will be effected in the “Sundry" credit column.
(a) No entries will be made in the general accounts for bills of lading accomplished for incoming freight or prepared for outgoing shipments, or for transportation requests issued. Such transportation accounts (freight or personal) as are paid by field disbursing officers will be given expression by proper entry.
(6) At the close of the month's business the column headed “Disbursement vouchers” will be footed and the total entered in the recapitulation as a credit to “Disbursement vouchers.” The debits will be ascertained by footing the distribution columns headed "Equipment," "Livestock," "Stores,” and “Operating expense,” and totaling and analyzing by recapitulation accounts the “Sundry” debit column. Debit postings to the recapitulation will be made accordingly. The “Sundry” credit column will be similarly analyzed and posted. Details of the account "Operating expense" will be posted to the cost ledger under the subclassifications indicated on the register. Care should be taken that all items in this register affecting “Stores" or fixed asset accounts have been properly entered from the vouchers upon the property cards.
469. Register No. 3 (Form 5-743).-The register of collection vouchers will be used to record all cash collections made during the month by the unit. All official receipts, with the exception of those issued to cover collections of individual Indian money, will be entered in this register to show for each item the date, official receipt number, remitter, and the amount in the column headed "Collection vouchers.” Entry will also be made in the column reserved for the account entitled to credit by reason of the collection: Viz, "Accounts receivable, installment sales," “Stores,” “Operating income,” or “Other income." Should the credit be due some other account, entry will be made in the "Sundry” credit column and the recapitulation number of the account entitled to credit indicated. Entry of any debit amount required by way of adjustment as in the case of sales of property at less than book value, when a charge would be made to "Contingencies and losses" will be effected in the “Sundry" debit column. Bills rendered to sundry persons for supplies furnished or services rendered will not, however, be recorded in the general accounts. The record of such transactions will be in Register 3, solely on the basis of collections made. Duplicates of all bills rendered will be preserved in the files until paid. -. (a) At the close of the month's business the column headed “Collection vouchers" will be footed and the total entered in the recapitulation as a debit to “Collection vouchers." The “Sundry" debit column will be footed and analyzed by recapitulation accounts and the entries made accordingly in the recapitulation. The corresponding credits will be ascertained by footing the distribution columns headed "Accounts receivable, installment sales," "Stores," "Operating income,” and “Other income" and totaling and analyzing by recapitulation accounts the "Sundry” credit column. Credit postings to the recapitulation will be made accordingly. Details of the account “Operating income" will be posted to the cost ledger under the subclassifications indicated on the register. . Care should be taken that all items in this register affecting “Stores", or fixed asset accounts have been properly entered from the vouchers upon the property cards.
470. Register No. 4 (Form 5-744).—The register of miscellaneous transactions will be used to record all transactions which may not properly be recorded on any of the registers referred to above. Entries on this register will be made from miscellaneous detail memoranda, to which proper file reference should be made.
(a) When property of any kind which is carried in the accounts of the unit becomes worn out or for other reasons becomes useless for further service and is destroyed; when animals are slaughtered or die from natural causes; or when property is stolen or lost, a brief statement of the facts will be made on Register No. 4. It should be noted in this connection that no credit may be taken for property lost or destroyed in any manner except upon the presentation of duly prepared affidavits (in the case of unusual losses, such as complete destruction of equipment by accident, the loss of animals by disease or straying, etc.) or certificates (in the case of animals slaughtered for meat) or upon the formal findings of a board of survey (for property to be dropped as unserviceable). Entries on the register will invariably contain a reference to the general office file numbers of the affidavits, certificates, or condemnation reports. The book value of all property lost will be charged to “Contingencies and losses" and credit will be given to the proper asset accounts. The book value of animals slaughtered, however, will be charged to “Operating expense,” or “Stores” if the meat is taken into the warehouse pending issue. Allowance should be made in this connection for the appraised value of the hides, which should be taken into “Stores” account.
(6) When supplies are sold or services are rendered, the cost of which is to be collected, a bill for money due will be prepared on Form 5–711 and sent to the debtor, except in the case of reimbursable agreement sales. These bills will not be recorded in the books of the unit, but a copy should be preserved on file until payment is received. When a reimbursable agreement is executed with an Indian or tribe, however, entry thereof will be made in Register No. 4, debiting “Accounts receivable, installment sales,” and crediting the proper asset accounts.
(c) When property is transferred from one unit to another, in accordance with paragraphs 211-213 hereof, the forwarding officer will debit transfer vouchers issued and credit the proper asset account on Register No. 4. The receiving officer will debit stores or other asset accounts and credit transfer vouchers received. These entries will be made whether or not payment for the property is ordered by the central office. If and when payment is required, the receiving officer, in addition to the necessary entry in his appropriation ledger, will debit transfer vouchers received and credit disbursement vouchers on Register No. 2.
(d) When property is only transferred from one activity to another at the same unit, no entries in the general account records are required.
(e) Any difference in values between the amounts taken up on the books from the original transfer voucher and the notification of the charge to the appropriation or fund from the central office should be adjusted.
a) At nonreservation boarding schools and at small agencies where no division of the activities of the unit into features is maintained production reports (Form 5-731) will be employed to record the construction or production of materials or articles (e. g., garden and farm products, furniture, livestock, etc.) to be taken up as fixed assets or stores. At units employing two or more cost accounts, production reports will be used also to record the value of services performed or materials supplied by one feature for the benefit of another. The value of items covered by production reports will be determined by appraisal, if no details of cost are available. Production reports will be numbered in series by the bookkeeper and entry thereof made in Register No. 4, charging the proper asset accounts or “Operating expense!' (for a transfer between features) and crediting “Operating expense.” Entry will be made accordingly under the subclassification “Transfers (credit)" in the cost sheet for the feature furnishing the service or supplies.
. (9) Railroad freight charges and the handling charge of 5 per cent accruing in connection with reimbursable property will be recorded in Register No. 4. The estimated cost of railroad transportation will be brought into account by entry charging “Live stock," "Equipment,” or “Stores," as the case may be, and crediting “Operating expense,” under subclassification “Expenses pot otherwise classified.” The 5 per cent handling charge will be recorded by entry charging the proper asset accounts and crediting “Contingencies and losses.”
471. Settlements made through the Washington office for the account of field units will be covered by journal vouchers prepared in the central office to show in full the required entries. Such vouchers will be transmitted to the field units concerned where they will be entered on Register No. 2.
472. When a shipment of freight is made a sufficient number of copies of the bill of lading should be provided to permit one copy to be retained by the shipping office for its files. The original and two copies will be sent to the consignee. The carrier will require one copy (the shipping order).
473. When bills of lading covering incoming shipments are accomplished and delivered to the carrier the corresponding duplicates will be noted accordingly and filed in proper order, but no entry will be made therefor in the general accounts. Settlement of transportation accounts will ordinarily be made through the Washington office, and general account entries for transportation will be made solely on the basis of such settlements. Advices (journal vouchers) will be sent to the field monthly for settlements made from other funds than “Purchase and transportation of Indian supplies.” In the case of payments from “Purchase and transportation of Indian supplies," journal vouchers will be sent to the field at the end of the fiscal year for the entire year's business.
474. These monthly advices will be recorded in both fund and general accounts with references to both Washington and field journal voucher numbers, the latter being assigned by the field office from its regular series, and the annual advices will be recorded in the general accounts only. General-account entries from the advices will be made in Register No. 4, to debit operating expense and credit disbursement vouchers with the total amount reported paid.
475. Deductions for loss or damage will be given effect in the accounts of field units at the time bills of lading are accomplished and notation of shortage made, the entry (Register No. 4) being to debit operating expense and credit stores or fixed property as the case may be. Advices to field units will contain memorandum notations of these deductions for the information of field officers, but no entry need be made therefor except in case the entry clearing the property account was omitted at the time the bill of lading was accomplished.
476. Any debits involved in transfers of funds made by the General Accounting Office on account of damage or shortage will be included in the amounts reported in these notices as paid, and a separate report of the credit to the general fund or other fund on the books of the Treasury will be recorded in the general accounts only, Register No. 4, by debiting collection vouchers and crediting operating expense.
477. At units where more than one permanent-cost account is maintained, a rate of distribution of transportation expense must be determined as carefully as possible on the basis of the value of annual estimate supplies purchased for the benefit of the respective features, and payments from “Purchase and transportation of Indian supplies” will be distributed accordingly. For example, at a unit maintaining separate cost accounts for the agency proper, the boarding school, and the day schools, the annual estimate was divided as follows: Feature
Value Per cent
$19, 498. 67
3. 212. 19 34, 007. 46