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RECORDS AND
At the end of an accounting period or at other
required times, you, as a leading petty officer, will
have an important responsibility for supervising
inventory procedures, auditing the closeout of
records and the preparation of returns, and
analyzing the operation of the ship’s store. In each
of these areas, you will be assisting the ship’s store
officer in maintaining effective control of the
ship’s store operation. First, however, you should
be aware of the significance of the ship’s store
profits that appear on the returns: how profits are
generated by sales and used by the Navy Resale
and Services Support Office (NAVRESSO) and
by your own ship to improve the welfare and
morale of shipboard personnel. As you read the
information in the chapter, keep in mind the
importance of accurate ship’s store returns.
Remember, your returns document the financial
operation of your ship’s store.
SHIP’S STORE PROFITS
In chapter 6, the various types of sales from
the ship’s store, vending machines, and fountain
operation were discussed from the supervisory
point of view. As you learned in chapter 4, sales
are required to replenish working capital (Navy
Stock Fund). You saw how sales also generate
profit, the value of which is determined by the
amount of markup applied to the various items.
Profits derived from sales in the ship’s stores are
held by the Treasury Department in a trust fund,
Ship’s Store Profits, Navy. In this section, you
will read how ship’s store profits are transferred
to the General Fund and the Recreation Fund.
You will also learn how certain charges are made
against ship’s store profits,
GENERAL FUND
The General Fund is maintained by the Naval
Supply Systems Command (NAVSUP) through
the Navy Resale and Services Support Office
Chapter 7
RETURNS
(NAVRESSO). The General Fund accrues from
an assessment that is made on the net cash
generated from sales in each ship’s store. The
exact percentage of the General Fund assessment
is dependent upon the size of the individual ship’s
allowance,
In addition, the General Fund takes in all
excess profits that are reported by certain ships.
The net ship’s store profits that are generated
during a single accounting period should not
exceed 15 percent of the cost of retail sales.
Profits that are greater than the 15 percent figure
are considered to be “in excess” and are accrued
into the General Fund. Finally, the General Fund
accrues from the balance of any ship’s store pro-
fits that remain after a ship is lost or decommis-
sioned.
A large percentage of the money that accrues
to the General Fund is paid to the Chief of Naval
Personnel for the recreation of Navy personnel.
A large part of this money is used to finance the
Navy motion picture program that is so greatly
appreciated by the fleet, Expenses covering the
purchase and maintenance of athletic equipment
are also among the many benefits supported by
the General Fund. After entertainment and recrea-
tion expenses are covered, any remaining money
in the General Fund is used for the benefit of
individual ships.
In the case of new ships, the General Fund
provides grants for the initial installation of
ship’s store facilities. Existing ships that are
modernizing their ship’s store facilities may
apply for loans from the General Fund to cover
the costs of improvements. Losses that occur
when a ship closes the ship’s store to enter a
rehabilitation program can be properly charged
to the General Fund. Other types of losses that
are not chargeable to the Navy Stock Fund (NSF)
are also absorbed by the General Fund whenever
these losses are too great for the individual ship’s
store profits to offset. In fact, many surveys that
cannot be absorbed by local profits are paid off
by the General Fund.
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