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WASHINGTON 25, D. C., 1 June 1944. TM 14–1005, Termination Accounting Manual for Fixed-Price Supply Contracts, is published for the information and guidance of all concerned.
(A. G. 300.7 (29 May 44).) BY ORDER OF THE SECRETARY OF WAR:
G. C. MARSHALL,
Chief of Staff. OFFICIAL:
J. A. ULIO,
The Adjutant General.
1st thru 9th Sy C (100). No oversea distribution,
Changes to this manual will be supplied on a page basis, and will be published as required. As change pages are received they will be inserted in their proper places and the replaced pages destroyed.
Each page of the manual bears a date in its upper inside corner. This date is the date of the publication. Pages which represent changes will carry the date and number of the change.
Paragraphs are numbered consecutively throughout the entire book. Paragraphs with decimal suffixes indicate added paragraphs. For example, a paragraph numbered 34.1 represents the first main paragraph following paragraph 34.
Pages are numbered consecutively throughout the book. If new pages are added within the book, the added pages will carry alphabetical suffixes-A, B, C, and so on. For example, if a new page is added between 31 and 32, the page will be numbered 31A. A second additional page in the same place would be numbered 31B, and so on.
References will be found in this manual to War Department Procurement Regulations relating to terminations. This manual is not directed to contracting officers but is designed solely to give accounting and auditing instructions consistent with Procurement Regulations. In the event of revisions of the Procurement Regulations, appropriate revisions will be made herein.
When a settlement is to be arrived at by negotiation, reports by personnel making the accounting review or the audit of the contractor's proposed settlement are in the nature of a guide to the contracting officer. Such reports and the procedures set forth in this manual will not limit or restrict the ultimate legal authority of the contracting officer to effect negotiated settlements. In
any accounting review, or in the preparation of accounting reports for the information and guidance of the contracting officer, the “Statement of Principles for Determination of Costs Upon Termination of Government Fixed Price Supply Contracts,” issued by the Joint Contract Termination Board, will be followed.
When a settlement is not to be effected by negotiation but by the application of a specific formula provided in the contract, an audit of the contractor's claim will be made in each instance in accordance with specific instructions issued by the Chief of the Technical Service concerned or the Commanding General, Army Air Forces. These instructions will be consistent with Procurement Regulation 15 and with accounting methods prescribed by the Office of the Fiscal Director, Headquarters, Army Service Forces.
Further accounting instructions in the form of Termination Cost Memorandums for the information and guidance of War Department personnel in dealing with the determination of costs and related matters will be issued as chapter 5 of this manual.
Chapter 6 of this manual, to be issued at a later date, will deal with the accounting problems and procedures peculiar to the Field Accounting Representative program for the review of termination settlements.
In addition, accounting instructions consistent with those prescribed in this manual may be issued by each of the Chiefs of the Technical Services and the Commanding General, Army Air Forces. Such instructions will relate to the administration of the audit staffs, and due to varying procedural requirements in the Technical Services and Army Air Forces, some variation in content may exist, but uniformity should be an objective. Copies of all such instructions will be submitted to the Fiscal Director, Army Service Forces, for ratification by that office.
VI. Settlement expenses and costs of protection and disposition of Gov-