ships store stock. At such times, you should be
able to determine if, when, and how you can use
a survey. You will use the survey method to
expend stock from your records and accounts
when stock items have been lost or damaged, have
deteriorated, or are otherwise unsuitable for use
or sale. This section deals with several of the
alternatives you should consider when you must
survey for losses in the value of your stock.
Under certain circumstances, such as loss of
stock by evident theft, you must immediately
prepare a survey request. These circumstances are
discussed in detail in NAVSUP P-487. Under
other conditions, however, you are not required
to prepare a survey request at the time of survey.
The ships store officer initiates a survey by
requesting that an immediate inspection of the
stock involved be made by the formal surveying
Ships store surveys are distinct in several
ways. The most important distinctionalso the
most frequently abusedis that the value of a
ships store survey should be charged to one of
three different appropriations: the Navy Stock
Fund (17X491 1.23 10); Ships Store Profits, Navy
(General Fund) (17X8723.23 10); or Ships Store
Profits, Navy (own ship) (17X8723.2301). Since
charging a survey to the correct appropriation is
so important and easy to foul up, what guidelines
should you follow? The key to your selection of
the correct appropriation is the manner in which
the stock was lost or damaged.
Before you charge a survey to an appropria-
tion, you must know what the appropriation
covers. The information below examines the three
appropriations, discusses the types of damage or
loss each one is designed to absorb, and explains
some procedures you can follow.
NAVY STOCK FUND. The NAVSUP
P-487 is quite specific concerning the types of
losses you can survey to the Navy Stock Fund.
In general, this appropriation covers any loss or
damage that does not result from negligence or
misappropriation on the part of shipboard
Specifically, the Navy Stock Fund pays for any
loss or damage in shipment including underway
replenishment, except for concealed losses. The
Navy Stock Fund also covers act of God losses
or damages by fire, water, or oil. You should
generally interpret these disasters to mean large-
scale fire, water, or oil damage that was not
incurred by negligence or willful destruction on
the part of a human being. For example, a fire
caused by faulty wiring would be properly
chargeable to the Navy Stock Fund, even if
proper electrical procedures had not been
followed. However, if the store operator drops
a cigarette and burns a hole in a billfold, the Navy
Stock Fund will not cover the damages. You can
charge all clothing losses to the Navy Stock Fund,
regardless of cause. This is because the handling
of clothing cannot affect ships store profits.
SHIPS STORE PROFITS, NAVY (GEN-
ERAL FUND). The Navy Resale and Services
Support Office (NAVRESSO) maintains a fund
to cover various expenses for ships stores in the
fleet. This fund is financed by part of the assess-
ment of sales paid every accounting period by each
ships store afloat. Some of the expenses the
General Fund covers are certain types of surveys.
Actually, you will rarely ever use the General
Fund for a survey of ships store stock. You must
be aware, however, of the specific circumstances
under which you can charge a survey to this
appropriation. By using this fund correctly, you
can prevent losses to your own ships store profits.
There are two instances when you can properly
charge a survey to the General Fund (GF). First
of all, you can charge any survey of $25 or more
covering concealed losses or damage upon receipt
of stock from a Navy transshipping activity.
Losses and damage to goods are considered to be
concealed when there are no visible signs of
damage upon arrival of the shipping container.
However, before initiating a General Fund survey,
you should send a letter to the responsible
vendor explaining all the facts about the loss or
damage and requesting replacement or reimburse-
ment. If you receive a replacement of the lost or
damaged merchandise, you can cancel the survey.
If the vendor reimburses you, you should go
ahead and process the survey and charge it to your
own ships store profits. As explained in NAV-
SUP P-487, you should report the amount of the
reimbursement as a contribution to your own
ships store profits.
If the vendor does not replace the merchan-
dise or does not agree to a reimbursement, you
should forward the survey to NAVRESSO along
with copies of the correspondence with the
vendor. If the survey in this situation amounts
to less than $25, you should charge it to your own
ships store profits. You can charge any losses or
damage upon receipt of merchandise directly from
Navy activities to the Navy Stock Fund. Do not
accept any damaged articles that you receive
directly from a vendor.