GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS

APO 500
2 May 1950

AG 400.12 (2 May 50) COM-B
(SCAPIN-2093)

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 (3 May 49)OG SCAPIN 1999, 3 May 1949, subject same as above.
2. Reference Memorandum is hereby rescinded. The Japanese Government has instituted the procedures outlined herein which are designed to carry out the desires of the Supreme Commander for the Allied Powers that the control of the expenditure of funds appropriated by the Japanese Government for Occupation Force requirements be improved to provide more complete and accurate reporting, accounting and recording than has heretofore been accomplished by the Japanese Government.
3. a. The Japanese Government has inserted in the language of the Japanese Fiscal Year 1950 - 51 Budget a provision whereby funds for disbursement for any uncompleted contract entered into and for which funds are obligated during that fiscal year will be carried over into the ensuing fiscal year. All disbursements under such obligations will be charged to the Termination of War appropriation for JFY 1950-51.
b. The Japanese Government will instruct its officials entrusted with the disbursement of Termination of War (Works) funds (disbursing officers):
(1) To make payments from the TOW (Works) appropriation only upon instruments which contain a certificate of sufficiency (availability) of funds certified to by a fiscal or obligating officer of the Occupation Forces whose signature is on record in the office of the disbursing officer.
(2) To identify such certifying officers, (General Headquarters will furnish the disbursing officer with a specimen signature of such certifying officer on the form outlined in Incl. 1( War Dept. Signature Card)).
(3) To verify the signature of the fiscal or obligating officer appearing on each document with the signature of that officer on record in the disbursing office.
c. The Japanese Government will:
(1) Pay only the amounts shorn on the instruments certifying to the sufficiency of funds unless the payroll or the vendor's invoice is in an amount less than the amount stated in the instrument containing the certification, in which case the lesser amount will be paid.
(2) Verify receipts furnished by the representatives (receiving officers) of the Occupation Forces for supplies and/or services rendered with the vendor's invoice and, where the receipt for such supplies furnished or services rendered is in an amount less than the invoice, will pay an amount no greater than that contained in the receipt of the Occupation Forces.
(3) Make payment immediately upon receipt of the necessary instruments, i.e., acknowledgment of receipt, vendor's invoice, etc., which permit payment; will ascertain that all transactions which authorize discounts for prompt payment are paid within the discount period; and will submit to the Occupation Forces a statement as to the reason(s) for ▲▲oss of the discount when such discount is forfeited.
(4) Require its officials entrusted with the disbursement of TOW funds (disbursing officers) to furnish the Reconciliation Unit, Office of Comptroller, GHQ, a Schedule of Disbursements for Personal Services, SCAP, AGO Form n19(24 Apr 50), (Object class 01) (Incl. 2) and a Schedule of Disbursements for other than Personal Services (Incl. 3) immediately after the close of business on the day on which such disbursements occur. Likewise, upon the discharge or termination of any disbursing officer by the Japanese Government, a Schedule of Disbursements by such officer shall be furnished the 0ccupation Forces indicating thereon the reason for its submission.
(5) Require its disbursing officers to furnish a copy of each paid document to the fiscal or obligating officer of the Occupation Forces who certified that document for payment. Transmittal shall be accomplished immediately after payment has been made.
4. The Japanese Government has previously furnished the Occupation Forces with a list of the names and locations of the various disbursing officers making disbursements of TOW (Works) funds for the purpose of establishing a disbursing officers' station list. The Japanese Government will furnish any changes in locations, deletions or additions to the original submission as they occur.
5. The Japanese Government will report expenditures made from JFY 1949 - 50 TOW (Works) funds separately from those expended from JFY 1950 - 51 funds.

FOR THE SUPREME COMMANDER:

K.B.BUSH
Brigadier General, USA
Adjutant General

3 Incls
1. War Dept. Signature Card
2. Schedule of Disbursements 01
3. Schedule of Disbursements 99