« AnteriorContinuar »
pursuant to section 606 (5) of the Mer- 8 292.1 Annual and final accountings by chant Marine Act, 1936, as amended (46 operators under operating-differenU. S. C. 1176 (5)), as said section is con
tial subsidy agreements; procedure. strued by the Administration.
Every holder of an operating-differen(g) Effective date. The effective date
tial subsidy agreement executed with of this section, as amended, shall be as
the Maritime Commission or the Federal follows:
Maritime Board shall (a) within ninety (1) The day next following the ter
(90) days after publication of this part mination of the recapture period which
in the FEDERAL REGISTER, prepare and was current on December 31, 1946, with
submit to the Maritime Administration, respect to an operating-differential sub
in the form and manner prescribed in sidy resumption addendum executed
$$ 292.2 to 292.8, inclusive, a separate prior to May 1, 1951;
accounting of its operations for each (2) January 1, 1947, with respect to
accounting period commencing with the an operating-differential subsidy re
resumption or commencement of its sumption addendum executed after April
subsidized operations on or after Jan30, 1951; and
uary 1, 1947 through December 31, 1950: (3) The effective date of the contract,
Provided, That such accounting shall with respect to an operating-differential
not be required with respect to any acsubsidy contract executed after Decem
counting period included in a termi. ber 31, 1946.
nated “recapture period” (as defined in Effective as of January 1, 1958, the
$ 291.5(f) of this chapter (General Ordefinition in this part shall not be ap
der 71 of the United States Maritime plicable with respect to capital neces
Commission)) with respect to which all sarily employed determinations required
accrued operating-differential subsidy to be made for accounting periods com
was recaptured or is recapturable by the mencing on or after said date, but shall
Administration: Provided further, That be superseded by the definition con
upon application of the Operator the tained in Part 286 of this chapter.
Administration may extend, for such (Sec. 607, 49 Stat. 2005, as amended; 46 further period as in its judgment is warU. S. C. 1177) (G. O. 71, 14 F. R. 7936, Dec. ranted by the circumstances in any in81, 1949, as amended by Amdt. 1, 17 F. R.
stance, the time limit prescribed in this 8691, Oct. 1, 1952; Amdt. 2, 18 F. R. 8809, Dec.
section for the submission of such ac29, 1953; Amdt. 3, 23 F.R. 5308, July 12, 1958]
countings, and (b) within one hundred
and eighty (180) days after termination PART 292-PROCEDURE TO BE FOL
of each subsequent accounting period LOWED BY OPERATORS IN THE (as defined in the said annexed proRENDITION TO THE MARITIME AD- cedure) prepare and submit to the MariMINISTRATION OF ANNUAL AND time Administration a similar accountFINAL ACCOUNTINGS UNDER OP- ing for such accounting period: ERATING-DIFFERENTIAL SUBSIDY
Provided, however, That upon applicaAGREEMENTS
tion of the Operator the Administration
may extend, for such further period as Sec.
in its judgment is warranted by the cir292.1 Annual and final accounting by oper
cumstances in any instance, the time ators under operating-differential subsidy agreements; procedure.
limit prescribed in this section for the 292.2 Definitions.
submission of such accountings. 292.3 Accounting requirements. 292.4 "Capital necessarily employed."
§ 292.2 Definitions. 292.5 Net profit.
Except where the context clearly in292.6 Statements required by the Adminig. tration.
dicates otherwise, as used in this part: 292.7 Certifications and verifications.
(a) "Commission' or "Administra. 292.8 Statement of purposes and reserve- tion” refers to the United States of tions.
America acting by and through the Mar292.9 Applicability of procedure.
itime Administration, as successor to the AUTHORITY: The provisions of this part 292
United States Maritime Commission. Issued under sec. 204, 49 Stat. 1987, as amend
(b) "Operator" refers to the holder ed; 46 U.S.C. 1114.
of an Operating-Differential Subsidy SOURCE: The provisions of this part 292 contained in General Order 74, 16 F.R. 6716,
Agreement with the Federal Maritime July 11, 1951, unless otherwise noted.
(c) “Agreement” refers to an Agree- required to be kept in some other form ment providing for the payment of an by the Interstate Commerce Commission; operating-differential subsidy pursuant and (b) shall file, upon notice from the to Title VI or to section 708 of Title Commission, balance sheets, profit and VII of the Merchant Marine Act, 1936, loss statements, and such other stateas amended. (References in this part ments of financial operations, special reto particular articles of the Agreement ports, memoranda of any facts and relate to such articles of Part II-Gen- transactions, as in the opinion of the eral Provisions of the standard form Commission affect the financial results of Operating-Differential Subsidy Agree- in, the performance of, or transactions ment adopted by the United States or operations under, the Agreement. Maritime Commission on December 21, The Commission reserves the right to re1949.)
quire that all or any of such statements, (d) "Uniform System of Accounts" reports and memoranda shall be certified refers to the “Uniform System of AC- by independent certified public accountcounts for Operating-Differential Sub- ants acceptable to the Commission. sidy Contractors" (1) prescribed by the
(ii) The Commission is authorized to United States Maritime Commission in examine and audit the books, records, General Order No. 22, January 1, 1938, and accounts of all persons referred to as supplemented, with respect to ac
above in this Article whenever it may countings for periods through December deem it necessary or desirable, including 31, 1950, and (2) prescribed by the but without limitation an analysis of the Maritime Administration in Part 282 of surplus and all supporting accounts. this chapter (General Order 22, revised The Operator agrees that any and all October 16, 1950), with respect to ac- auditors, inspectors, attorneys, and other countings for periods commencing on or employees designated by the Commission, after January 1, 1951.
shall have full, free and complete access (e) “Accounting period” refers to the at all reasonable times to all vessels calendar year, or applicable portion
owned by the Operator when in port or thereof, with respect to which a separate
undergoing repairs and to all books, recdetermination of "capital necessarily ords, papers, memoranda or other docuemployed in the business" is required to ments of the Operator wherever located be made.
or of any holding company, subsidiary
company or affiliated company of the § 292.3 Accounting requirements.
Operator pertaining to any activities re(a) Contract provisions. (1) Article lating in any way to the vessel(s), sery[1-24 of the Agreement provides, among ice(s), route(s), or line(s) covered by other things, that there shall be a final the agreement, and further agrees to accounting thereunder between the Op- permit the making of photostatic or erator and the Commission as soon as other copies of any such books, records, practicable after the end of each calen- papers, memoranda or other documents dar year and upon termination of the and to furnish without charge adequate Agreement (whether such termination office space and other facilities reason. shall occur by expiration of the stated ably required by such auditors, inspecperiod thereof or otherwise).
tors, attorneys and other employees in (2) Article II-20 of the Agreement the performance of their duties. provides, among other things, that:
(b) Annual and final accountings. (1) The Operator and every afiliate, Pursuant to the applicable provisions of domestic agent, subsidiary, or holding
the Agreement, the Administration herecompany connected with, or directly or
by requires that each Operator submit a indirectly controlling or controlled by, separate accounting of its operations for the Operator (a) shall keep its books,
each accounting period commencing records, and accounts relating to the
with the resumption or commencement property and to the maintenance, oper
of its subsidized operations on or after ation, and servicing of the vessel(s),
January 1, 1947, including, but not limservice(s), route(s), and line(s) covered
ited to, the Operator's determinations by the Agreement in such form and un
of: der such rules and regulations as may
(1) Profits in excess of ten percentum be prescribed by the Commission, but the per annum on "capital necessarily emCommission shall not require the dupli. ployed" which are subject to recapture cation of books, records, and accounts
by the Administration;
(2) Requirements with respect to de- period or periods, operate to increase or posits in the statutory Capital and Spe- decrease to the extent of $10,000 or cial Reserve Funds of the Operator; more, (i) the amount otherwise recap
(3) The amount, if any, of unpaid turable and/or (ii) the amount othersubsidy accrued with respect to opera- wise required to be deposited in the Spetions after December 31, 1946, during cial Reserve Fund and, if so, the Operator the then current recapture period in shall either (a) submit a revised acexcess of any amount of the recapture counting for such preceding accounting accrual required by law to be withheld period or periods taking such adjustby the Administration;
ments into account or (b) include in the (4) The amount, if any, of subsidy current accounting an adjustment of payments theretofore made to the Op- amounts recapturable and/or required erator with respect to operations under to be deposited in the Special Reserve the Agreement after December 31, 1946, Fund with respect to such prior period during the then current recapture pe- or periods that will produce the same riod (and not previously repaid) in ex- result as though a revised accounting cess of the sum by which the cumulative were submitted for such prior period amount of subsidy then estimated to or periods: Provided, That, except as have accrued to the Operator on account otherwise provided herein, adj nents of such operations is greater than any applicable to a preceding accounting peamount of the then estimated recapture riod shall be taken into account in the accrual required by law to be withheld year in which recorded; And provided by the Administration;
further, That, notwithstanding the fore
going, any subsidy payable must be calProvided, That, such accounting shall
culated at the rates established for the not be required with respect to any ac
voyages on which the subsidizable excounting period included in a terminated
pense involved was incurred. "recapture period” (as defined in § 291.5
(2) If, in any instance, at the time (f) of this chapter (General Order 71
of the submission of an accounting, no of the United States Maritime Commis
such adjustment affecting any preceding sion)) with respect to which all accrued
accounting period has occurred suboperating-differential subsidy was re
sequent to the submission of the accaptured or is recapturable by the Ad
counting for such period, the Operator ministration.
shall submit to the Administration an The accounting comprising the state
appropriate certification to that effect ments prescribed in § 292.6 (Statements
over the signature of a duly authorized required by the Administration) shall be
officer. The books, records and accounts submitted in sextuplicate to the Admin
referred to in this section shall be reistration through the local District
tained in accordance with the provisions Comptroller, or Area or Port Auditor in
of § 380.24 of this chapter. the district, area, or port in which the
(G.O. 74, 16 F.R. 6716, July 11, 1961, as home office of the Operator is located, or
amended at 21 F.R. 9408, Dec. 1, 1956; 30 F.R. (if there be no such Comptroller, or
12356, Sept. 28, 1965) Auditor of the Administration in the district, area, or port in which the home § 292.4. “Capital necessarily employed." ofice of the Operator is located) to the (a) Article II-29 of the Agreement Comptroller, Maritime Administration, provides that, for the purposes thereof: Washington 25, D.C. While it is prefer- (1) Capital necessarily employed in able that the required statements be the business” and “capital investment typewritten, completely legible original necessarily employed in the operation of handwritten statements accompanied by the subsidized vessel(s), service(s), five photostatic copies thereof (which route(s), and line(s)” shall, with respect likewise must be completely legible) will to all annual or other accounting periods be acceptable.
which terminated concurrently with or (c) Subsequent adjustments. (1) At prior to the termination of the recapture the time of the submission of the ac- period which was current on December counting for each accounting period as 31, 1946, be determined as provided in required under this part, the Operator the applicable rules and regulations as shall determine whether adjustments adopted and prescribed by the United during such period affecting any pre- States Maritime Commission in Part 286 ceding accounting period or periods of this chapter (General Order 31, as would, if carried back to such preceding amended), exclusive, however, of the
provisions of Part 291 of this chapter (General Order 71);
(2) With respect to all annual or other accounting periods terminating subsequent to the annual or other accounting periods mentioned in subparagraph (1) of this paragraph and in the case of contracts taking effect on or after January 1, 1947, the provisions of Part 291 of this chapter (General Order 71, as amended from time to time), defining the terms “capital necessarily employed in the business” and “capital investment necessarily employed in the operation of the subsidized vessel(s), service(s), route(s), and line(s)”, shall be controlling, and the provisions of Part 286 of this chapter (General Order 31, as amended from time to time), shall be applicable only to the extent that such provisions are consistent with the provisions of Part 291 of this chapter (General Order 71, as amended from time to time).
(b) Should any change be made in the provisions of the Agreement or in Part 291 of this chapter (General Order 71), with respect to the effective date of that part, this procedure will be deemed to be automatically modified to correspond with such change. § 292.5 Net profit.
Article II-29 of the Agreement provides that, for the purposes thereof, “net earnings" or "net profit” shall be determined as provided in the applicable rules and regulations adopted and prescribed by the United States Maritime Commission in Part 286 of this chapter (General Order 31, as amended from time to time). $ 292.6 Statements required by the Ad
ministration. The accountings required under this part, as referred to in paragraph (b) of § 292.3, shall include the following statements (Illustrative examples of such statements, based on hypothetical figures, will be supplied by the Comptroller. The Operator may change or vary the design of any of these statements: Provided, That the statements substituted will produce the same results and reflect all of the information required. And provided further, That no substantial change or variation in the design of such statements shall be made without the prior concurrence of the local District Comptroller, or Area or Port Auditor of the Administration or, if there be no such Comptroller or auditor
of the Administration in the District,
WORTH, ALLOCATION OF "CAPITAL NECES-
The procedure for the preparation of this statement contemplates that “capital necessarily employed in the business", with respect to all annual or other accounting periods which terminated concurrently with or prior to the termination of the recapture period which was current on December 31, 1946, shall be determined as provided in the applicable rules and regulations as adopted and prescribed by the Commission in Part 286 of this chapter (General Order 31, es amended). EXHIBIT A-ALLOCATION OF "CAPITAL NECES
SARILY EMPLOYED" AND DISTRIBUTION OF
The procedure for the preparation of this statement contemplates that "capital necessarily employed in the business", with respect to all annual or other accounting periods terminating subsequent to the termination of the recapture period which was current on December 31, 1946 and in instances of agreements taking effect on or after January 1, 1947, shall be determined as provided in Part 291 of this chapter (General Order 71, as amended from time to time).
EXHIBIT AA-REVISED ANALYSIS OF ADJUSTED of the Merchant Marine Act, 1936, as amend
NET WORTH, ALLOCATION OF "CAPITAL NEC- ed, or Section 5 of the Merchant Ship Sales
EXHIBIT D-STATEMENT OF OPERATING-DIFFERDIFFERENTIAL SUBSIDY AGREEMENT, AS DE
ENTIAL SUBSIDITY ACCRUED DURING THE TERMINED IN ACCORDANCE WITH PART 286 OF
PERIOD THIS CHAPTER (GENERAL ORDER 31) (FOR There shall be submitted for each calenPERIOD, IF ANY, PRIOR TO EFFECTIVE DATE OF
dar year or other accounting period with PART 291 OF THIS CHAPTER (GENERAL ORDER
respect to which a separate income sheet 18 71))
required hereunder a statement reflecting the The procedure for the preparation of this
accrual of operating-differential subsidy (in statement contemplates the revision of the
such detail as is reflected in the illustrative statement for the preceding year simulta
example included among those to be supplied neously with the preparation of the cur
by the Comptroller): Provided, That, until rent year's statement to give effect to subse
Anal operating-differential subsidy rates are
established, the submission of this statement quent adjustments.
may be postponed upon the understanding EXHIBIT B-COMPARATIVE BALANCE SHEET that when, at that time, revised accountings
are submitted they will be accompanied by The procedure for the preparation of this
this statement. statement contemplates: 1. That for each annual or other account
EXHIBIT E-WORKING TRIAL BALANCE ing period there shall be submitted in com
The procedure for the preparation of this parative form a balance sheet as at the end
statement contemplates: of the month immediately preceding the date
1. That there shall be prepared a workof the beginning of such accounting period
ing trial balance as at each date with reand as at the end of the last month within
spect to which a separate balance sheet is such accounting period;
required bereunder; 2. That the accounts reflected in each
2. That the balances reflected in the gensuch balance sheet shall be those prescribed eral ledger at the respective dates shall be in the Uniform System of Accounts and none listed by accounts and distributed to the other; and
appropriate columns provided therefor in the 3. That the assets reflected in each such illustrative example included among those balance sheet shall be stated in conformity to be supplied by the Comptroller; with generally accepted accounting princi- 3. That the Operator shall determine that ples applied on a consistent basis; that ade- all items included in each asset and liability quate reserves shall be shown for accounts account have been properly classified and receivable doubtful of collection and for adjusted, that the balances are correct, and such other items as require valuation re- do not contain items of income or expense serves to reflect their true value; and that applicable to either a prior or current acthere shall be included an adequate state- counting period (Schedules reflecting the ment of all known and ascertainable liabil- extent of the analysis of such accounts shali ities.
be included among the working papers availEXHIBIT C-INCOME SHEET
able for examination by the Administration's
auditors); The procedure for the preparation of this
4. That the Operator shall determine that statement contemplates:
the items included in each income and ex1. That there shall be submitted income pense account have been properly classified sheets which accurately reflect the results and adjusted, that the balances are correct, of all operations for each applicable calendar and that such balances are entirely applie year or other accounting period;
cable to the accounting period involved 2. That the income and expenses reflected (Schedules reflecting the extent of the analyon such income sheets shall be allocated on
sis of such accounts shall be included among the bases prescribed in Part 286 of this chap
the working papers available for examinater (General Order 31);
tion by the Administration's auditors); 3. That the items of income and expense
5. That the Operator shall determine that reflected in each such income sheet shall proper accounting disposition has been mado be those prescribed in the Uniform System
of the balance in each clearance account; of Accounts and none other; and
and 4. That such income sheets shall include, 6. That all adjustments to the accounts with respect to each applicable calendar year listed in the working trial balance shall be or other accounting period, distribution of accomplished by posting thereto journal enany "additional charter hire" accrued to the tries, prepared in numerical sequence and Administration in instances where the oper- containing a complete description as to the ations of the Operator include vessels char- reasons for the adjustment, copies of such tered from the Commission under bareboat journal entries to be made avallable to the charters entered into pursuant to Title VII Administration upon request.