to investigating differences between the bulk
storeroom count and the actual card balances.
Extending and Summarizing
The office recordskeeper must now extend the
inventory at cost and retail (where applicable) on
the working (yellow) copy of the NAVSUP 238.
The original (white copy) will be extended by
another qualified person. Neither the responsible
custodian whose space is being inventoried nor
the recordskeeper can be designated to extend the
original inventory. Using the original inventory,
the ships store officer (or the designated person)
will verify the extensions on the working copy for
accuracy. Using the same reconciliation pro-
cedures mentioned earlier in this chapter, the
ships store officer will reconcile any differences
and will make all the necessary changes.
Most type commanders require taking surprise
mid-accounting period inventories. This pro-
cedure is highly recommended for all ships store
divisions regardless of requirements. The mid-
accounting period inventory allows an interim
cheek to be performed on the store operation. The
stock position of the store can then be reviewed.
More importantly, however, the financial condi-
tion of the store can be determined. Is the store
operator accurately caring for stocks entrusted to
him or her by producing money or material for
the full value? The element of surprise is the most
important aspect of this type of inventory.
Precautions should be taken so the store operator
is completely unaware of any preparations for a
mid-accounting period inventory.
Auditing is one the most important and fre-
quently neglected functions of ships store supervi-
sion. Proper records are absolutely essential to an
effective ships store operation. As a leading
Ships Serviceman, you will very likely have some
responsibility for auditing ships store records and
Auditing is the regular systematic checking of
the stock and financial records in a ships store.
The main purpose of an audit is to discover errors
and irregularities. Discovery of these errors should
lead to correction of all the affected records.
Ultimately, discovery of errors should lead to the
prevention of their reoccurrence.
As mentioned frequently in this training
manual, it is wise for you to perform the audit
steps periodically rather than to wait until the end
of the accounting period. In this way, errors are
generally restricted to shorter periods. Also, more
time for auditing is available if auditing is done
throughout the accounting period. Errors can be
detected earlier and stopped promptly. Also, by
detecting these errors early, you can make cor-
rections and adjustments to personnel and to pro-
cedures at the time. Consequently, you can avoid
the detailed investigations that become necessary
when errors are discovered at the end of the ac-
counting period. Finally, you can complete the
closeout of the records and the preparation of the
returns in less time.
In each of the chapters on procurement,
receipts, and expenditures, a section has been
included on auditing procedures. Now, suggested
procedures will be described for the auditing of
closeout and the preparation of returns.
The ships store records are not difficult to
close out. No magic is required for you to com-
plete this job. However, closing out the ships
store records is a necessary task you must perform
to obtain the information you need to prepare the
returns required by your appropriate fleet ac-
counting and disbursing center (FAADC).
Closeout should follow this sequence of events:
1. Stock Record
2. Ships Store Afloat Financial Control
3. Journal of Receipts
4. Journal of Expenditures
Why is this order important? As mentioned
earlier, by closing out the Stock Record first, you
can compare the quantities inventoried with the
card balances, and you can correct any errors.
Second, the Ships Store Afloat Financial Control
Record should be closed out, as the store can be
reopened once a satisfactory balance is obtained.
Third, the Journal of Receipts must be closed out.
Last, you must close out the Journal of Expendi-
tures. You will need information from the Ships
Store Afloat Financial Control Record and the
Journal of Receipts before you can close out the
Journal of Expenditures. The audit procedures
for each of these areas will now be discussed.
Stock Record Cards
First, you must check over the information on
the stock record cards. See figure 7-1. Throughout