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Expenditures - 14237_92
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Navy Stock Fund - 14237_94
nearly at the low limit, you must determine the time frame within which you could replenish your stock. Are there any outstanding requisitions for brand X cigarettes? Are you scheduled for under- way replenishment by an AFS in the near future? You must take all these things into consideration before  completing  a  transfer. Your  ship  might  also  be  overstocked  with some merchandise. You should advise the ship’s store  officer  to  place  the  overstocked  merchan- dise on an excess stock list. As a result, another ship  may  agree  to  relieve  you  of  some  of  the excess  stock.  This  transaction  would  be  done  by a  transfer  at  cost  price. In  addition  to  the  usual  transfer  to  other supply  officers,  you  may  have  the  occasion  to transfer  ship’s  store  stock  to  the  Marine  Corps, to  other  government  departments  such  as  the Army  and  Air  Force,  to  ships  operated  by  the Maritime  Administration,  or  even  to  foreign governments or vessels. In each of these cases, you should try to negotiate a cash sale rather than a transfer.   However,   if   a   transfer   is   the   only alternative,  you  should  carefully  follow  the  pro- cedures  detailed  in  the  NAVSUP  P-487. Issues According  to  the  NAVSUP  P-487,  there  are eight  individual  types  of  issues  you  may  use  to expend  stock.  By  far,  the  most  frequent  type  of issue  you  will  make  is  an  issue  for  use  to  a service  activity.  For  example,  an  issue  for  use occurs   whenever   you   issue   operating   supplies (such   as   bleach   or   combs)   to   the   laundry   or barbershop,  display  articles  for  the  ship’s  store, or  repair  parts  for  vending  machines. An  issue  for  use  takes  place  as  a  transfer  of stock  from  a  responsible  custodian  to  the  operator of   another   ship’s   store   facility   whenever   the stock  is  intended  for  use  and  there  is  no reimbursement   for   the   value   of   the   issued stock.   In   other   words,   only   stock   that   you issue   for   use   in   a   service   activity   should   be expended from the operation at the time of issue. Since you will not receive cash in reimbursement for  the  issued  stock,  you  should  consider  any  issue for use as a cost of operations transaction. At the end of the accounting period, you must use your profits  from  the  ship’s  store  to  reimburse  the  Navy Stock Fund for the value of the issued materials. As  a  supervisor,  you  should  make  certain  your ship’s  store  personnel  recognize  the  difference between an issue for use and a breakout. Errors in  these  two  categories  are  easy  to  make  as  a NAVSUP 973 (Intrastore Transfer Data) is used for  both  transactions.  In  considering  whether  a breakout  or  issue  for  use  is  required,  you  need only  consider  the  purpose  of  the  transfer.  If  the item  is  going  to  be  sold  either  directly  or  after further  processing,  then  a  breakout  is  called  for (when a separate operation exists). If the item is going  to  be  consumed  or  used  in  the  operation of a ship’s store facility, then an issue for use is called for and the item should be expended as a cost   of   operation. Another  type  of  issue  that  your  ship’s  store personnel can confuse with an issue for use to a service activity is an issue for ship’s use. You can make  an  issue  for  ship’s  use  to  any  department aboard ship and this issue will have nothing what- soever to do with costs of operation. Reimburse- ment for an issue for ship’s use should be made from  the  operating  target  (OPTAR)  of  the  ship and  not  from  ship’s  store  profits.  An  example  of an issue for ship’s use is when you issue clothing items to the ship’s electricians to be worn by the electricians  when  they  are  handling  batteries. Perhaps the biggest problem you will have in the area of issues for ship’s use is controlling the number  of  these  issues.  Once  the  other  depart- ments of your ship discover that they can obtain certain  stock  from  the  ship’s  store,  they  may depend  on  the  ship’s  store  too  much.  For  example, other  departments  might  try  to  obtain  issues  of clothing for all sorts of jobs. You should be able to  help  the  ship’s  store  officer  in  reminding  the other  departments  that  all  issues  are  charged against  their  share  of  the  OPTAR.  The  letter  or instruction   that   grants   the   supply   officer   the authority to issue ship’s store stock for ship’s use should outline clearly under what circumstances this  type  of  issue  will  take  place. Other types of issue are those you will make for   health   and   comfort   items   to   survivors   of marine and aircraft disasters, to merchant ships in  distress,  for  burial  of  the  dead,  to  Marine  Corps personnel, to the general mess, and to first enlist- ment  personnel.  These  will  occur  much  less  fre- quently.  You  should  know  the  procedures  you must use for each type of issue. You can find the details   for   these   procedures   in   the   NAVSUP P-487. Make certain your personnel follow these procedures  exactly. Surveys In  spite  of  all  your  efforts  to  run  a  perfect operation, there will be times when accidents or events  will  result  in  loss  of  or  damage  to  your 5-9

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