ANNEX A GUIDELINES FOR REPORTING AND PROCESSING OF WRITE-OFFS


BASE FUND AND MESSES


1.   Inventory Stocktaking. The NPFAO:


     a.   determines the discrepancy between the inventory records (eg.
          Retail Accountability Report (RAR)) and the stocktaking report;
          and


     b.   advises the BAdmO and the appropriate PMC/Manager.


2.   Fixed Asset Verification. The NPFAO:


     a.   identifies losses disclosed by the fixed asset verification;
          and


     b.   advises the BAdmO and appropriate Manager.


3.   Other Losses. On receipt of information concerning other losses,
     NPFAO advises BAdmO and appropriate Manager.

INITIAL ACTION BY BADMO/MANAGER
4.   The BAdmO/Manager assesses the requirement for investigation and
     advises the BComd of action being taken.


5.   The BAdmO/Manager advises the NPFAO of the decision regarding
     investigation, second stocktaking, etc.

FINAL ACTION BY BCOMPT
6.   The NPFAO records the loss in the accounting records in the month of
     discovery.


7.   The NPFAO recovers losses from individuals as directed by the
     BAdmO/Manager.

FINAL ACTION BY BADMO/MANAGER
8.   Where the loss exceeds the BComd's powers of write-off, the
     BAdmO/Manager advises CHQ of the incident, including information
     concerning locally-directed investigations. This advice must be forwarded
     in sufficient time to reach CHQ within 30 days of the incident.


9.   Where write-off can be approved by the BComd, the BAdmO presents
     full particulars for the BComd's decision.


10.   The BAdmO takes action to have the details of the losses recorded in
      the minutes of the organization or entity.