GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
3 May 1949

AG 400.12 (3 May 49) OGA
(SCAPIN-1999)

MEMORANDUM FOR	JAPANESE GOVERNMENT.
SUBJECT	Adoption of a Procurement Account Code to Control Funds Appropriated for Occupation Force Requirements

1. Reference is made to Memorandum for the Japanese Government, AG 400.12 (31 Mar 48) CE-GD, SCAPIN 1872, 31 March 1948, subject, "Expenditures from Funds Appropriated for Occupation Force Requirements," as amended.
2. It is the desire of the Supreme Commander for the Allied Powers that the control of expenditure of funds appropriated by the Japanese Government for Occupation Force requirements be improved to provide for a more complete and accurate reporting, accounting and recording than has heretofore been accomplished by the Japanese Government. To accomplish this control, it is necessary that an adequate system be adopted, based on uniformity of obligating, expending, reporting and recording of financial transactions.
3. In order to accomplish the objectives outlined in paragraph 2 above, the Occupation Forces have adopted a procurement account code to include:
a. Requesting agency code-consisting of the first three digits.
b. A using organization code-consisting of two digits and which follows a above.
c. A project account classification code-consisting of three digits and which follows b above.
d. An object classification code-consisting of two digits which is the last group of the code,
Example:
Requesting Agency Using Organization Project Code Object Code
121 20 123 09
A copy of the definitions and outline of the coding system will be furnished the Japanese Government.
4. a. The Commanding General, Eighth Army has been directed to enter the appropriate procurement account code on each procurement instrument and receipt which authorizes the Japanese Government to disburse funds appropriated for support of the Occupation Forces during JFY 1949.
b. Procurement instruments issued prior to 1 April 1949 which have been renewed or extended by letter directive of the Commanding General, Eighth Army do not contain the account code. However, each receipt issued against such renewed or extended procurement instruments for services or supplies demanded after 1 April 1949 will bear the appropriate account code and will be paid from funds appropriated for the support of the Occupation Forces during the Japanese Fiscal Year 1949.
c. Particular attention is directed to procurement instruments issued either prior to or after 1 April 1949 which direct construction or similar activities planned and approved for payment as a part of the Occupation Force requirements for JFY 1948. Procurement instruments so issued will not bear a procurement code, but will clearly indicate that the requirements stated therein relate to JFY 1948 and will authorize payment from that portion of the current budget appropriated for payment of "carry-over" items. In no case will such expenditures be paid from funds appropriated for JFY 1949 Occupation Forces' requirements.
5. For the Japanese Fiscal Year, 1 April 1949-31 March 1950, the Japanese Government will take the necessary action to:
a. Record on each paying instrument the code assigned by the Commanding General, Eighth Army to the procurement instrument and receipt to which the payment applies.
b. Record each expenditure under the appropriate general division of the Termination of War Appropriation.
c. Restrict obligations and payments to the yen amount shown on each procurement instrument and related receipts issued by the Occupation Forces except when otherwise specifically authorized by the Supreme Commander for the Allied Powers.
d. Assure that only those payments which relate to requirements of the Occupation Forces which have been procured under procurement instruments dated on or after 1 April 1949 and those renewed by letter directive of Commanding General, Eighth Army are paid from funds appropriated for support of the Occupation Forces during the Japanese Fiscal Year 1949. All payments relating to procurement instruments issued for projects or activities approved prior to 1 April 1949 will be paid from that portion of the current budget established for that specific "carry-over" purpose.
6. Direct communication between the interested agencies of General Headquarters, Supreme Commander for the Allied Powers and representatives of the Japanese Government is authorized to facilitate the implementation of this directive.

FOR THE SUPREME COMMANDER:

R.M. LEVY,
Colonel, AGD,
Adjutant General.