Admiralty references: C.E.60037/49, C.E.60038/49, C.E.60041/49, C.E.60049/49, C.E.60059/49, C.E.60060/49, C.E.60062/49, C.E.60066149, NL.203/52

SECTION I. WELFARE COMMITTEE AND WELFARE GENERALLY

1501. Object of Welfare Committee. The object of the Welfare Committee is to provide a means for free discussion between officers and ratings of items of welfare and general amenities within the ship or establishment that lie within the power of decision held by the Captain or his immediate Administrative Authority.

2. Subjects which the Welfare Committee may discuss include living conditions in the ship or establishment, messing arrangements, composition of meals, recreational activities, and any suggestions for the welfare of the ship's company.

3. Subjects outside the scope of the Welfare Committee are general conditions of naval service (e.g. discipline, working hours, pay and allowances, leave scales, etc.), cooking and serving food from the galleys, and questions of welfare and amenities not directly connected with the particular ship or establishment.

4. The Welfare Committee is responsible for the administration of the Ship's Fund.

5. The Welfare Committee is to administer the affairs of the canteen and is to investigate any questions and complaints that may arise about prices and quality of canteen goods, weights and measures, and the general working of the canteen. The Committee is also to elect representatives from among its members to the appropriate Squadron, Fleet, Port or Command Canteen Committee.

6. Nothing in this article is to interfere with or to prejudice the right of an individual rating to put forward suggestions through his Divisional Officer (1850), or to affect the responsibility of the Divisional Officer for looking after the interests of his men (3121).

1502. Formation of Committee. A Welfare Committee is to be formed in each ship or establishment with a complement of 50 or more. A Squadron Welfare Committee is to be formed for ships with complements of less than 50. A Welfare Committee is however to be formed for each submarine in full commission, whatever its complement, each such committee nominating one of its elected members to serve on the Squadron Welfare Committee with the elected representatives from the depot ship.

2. Suitable arrangements are to be made by Administrative Authorities for other detached ships and small establishments with complements of less than 50.

1503. Composition of Committee. The Committee is to consist of the following officers and ratings:

1. The Executive Officer, as ex-officio Chairman.
2. A Lieutenant-Commander or senior Lieutenant nominated by the Captain as ViceChairman.

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1504 WELFARE, CANTEENS AND NON-PUBLIC FUNDS
3. The Supply Officer or other commissioned officer as Honorary Treasurer.
4. Such other officers who may be detailed by the Captain, provided that the total number of officers, exclusive of the Executive Officer, is not to exceed one-third of the number of ratings on the committee.
5. Lower-deck representatives (including W.R.N.S. ratings when borne in sufficient numbers), elected in accordance with Article 1504.
6. A suitable rating to be selected by the committee as secretary, who may be paid for his services from the Ship's Fund.

2. A W.R.N.S. sub-committee is to be formed where appropriate to discuss welfare matters which concern exclusively the W.R.N.S. ratings of any establishment.

3. The affairs of the ship's canteen may be delegated to a small standing sub-committee appointed by the Welfare Committee from its members, but when this is done the sub-committee is to include an Executive officer and the Supply Officer or his representative.

4. The detailed composition of the Welfare Committee is left to the discretion of the Captain, subject to the following general principles and to the approval of the Administrative Authority where the officer in command is below the rank of Commander:-

1. Representation of leading ratings and below is to be by divisions, and of chief petty officers and petty officers by messes in cruisers and above, and by branches (again separating chief petty officers and petty officers from leading ratings and below) in smaller ships. Where this is not practicable, it should be by branches or messes, or in shore establishments by any groups into which the unit can most effectively be divided for the purpose of representation.
2. Every rating borne, other than boys under training, must be able to vote for a representative, but no rating can vote for the representative of a division, mess, branch or group other than his own.
3. Where the complement is less than 600, the number of ratings on the committee is to be not more than 10 or less than six. Where the complement is between 600 and 1,500, the number is to be not more than 15 or less than eight. An additional seat is to be allowed for every 250 in excess of a complement of 1,500.

1504. Election of lower deck representatives. When the composition of the Welfare Com-mittee has been decided, a notice is to be exhibited showing the divisions, branches, messes or groups for each of which a representative is to be elected. Any rating in the ship's company may then offer himself for election to represent his division, branch, mess or group, and lie should submit his name to the Captain within four days of the notice appearing. It will also be open to each division, etc., to nominate a representative or representatives for election, subject to acceptance of nomination by the men concerned. The names of all candidates put forward are to be published on notice boards for a period of 10 days before the date of the election with an instruction that any candidate who has offered himself or had been nominated for election but whose name is not on the list should immediately report to his Divisional Officer.

2. Ballot papers are to be prepared for each of the several voting groups showing the names of candidates for election, with instructions on each ballot paper of the number of candidates for whom the rating may vote and a warning that to vote for more than this number will render the ballot paper void. The papers must not be marked in such a way that the voter can afterwards be identified.

3. The ballot is to take place on a pay day, the voting papers being issued at the same time as pay. The arrangements for recording the votes are to provide that the ballot is secret and takes place immediately after the issue of the ballot paper, and that no man can return more than one voting paper. Voting by proxy for men sick or on leave cannot be permitted.

4. The subsequent sorting and counting of the votes is to be carried out in the presence of an officer and representative ratings. The results should be published on notice boards as soon as possible thereafter.

5. Vacancies in the committee are to be filled as they occur by means of a by-election, and a re-election of the whole committee should normally be made every 12 months unless there is good reason for an earlier change, such as altered conditions under which the ship is serving or dissatisfaction on the part of the ship's company with their chosen representatives. In newly

I. WELFARE COMMITTEE AND WELFARE GENERALLY 1507

commissioned ships, however, a fresh ballot should be held after the ship has been three to six months in commission. By-elections will be necessary when any elected member of the committee leaves the ship for any reason for periods in excess of 28 days (except on leave). Ratings sentenced to imprisonment or detention are to be removed from the committee and their places filled at a by-election; those disrated for misconduct or reverted for unsuitability should be removed but not barred from re-election at the consequent by-election, those reduced to the second class for conduct should be removed from the committee and be ineligible for election while so classed.

6. In training establishments, in order to avoid the necessity for frequent by-elections, each class of trainees is to be represented by its class leader provided that courses are of sufficient duration; if not, the representation should be by suitable instructors. The arrangements in this clause do not apply to boys' training establishments.

7. Special organization will be necessary for carrying out elections in ships with complements of less than 50, but it should as far as possible follow the principles laid down above and should be approved by the Administrative Authority.

1505. Special arrangements for large establishments. At the Royal Naval Barracks at Portsmouth, Chatham, Devonport and Lee-on-Solent, and at the larger training establishments where conditions differ considerably from those in other establishments and in ships, such arrangements for the composition of the Welfare Committee and the election of representatives are to be made, subject to the approval of the Commander-in-Chief, as best suit the particular conditions. The arrangements should follow those for ships as far as possible and should not conflict with the general principles in these regulations without prior Admiralty approval.

2. Detailed instructions on the application of these regulations to Royal Marines establishments will be issued by the Commandant-General, Royal Marines, and to W.R.N.S. establishments by the Director of the Women's Royal Naval Service.

1506. Meetings of Committee. Meetings of the Welfare Committee are to be held as required, but not less frequently than once every two months.

2. Notice should be given to the Secretary of subjects which it is proposed to raise at the next meeting, and agenda should be circulated to members beforehand. Before circulation the agenda must be approved by the Chairman to ensure that the subjects for discussion are within the terms of reference of the committee. The lower deck representatives will be expected to ascertain the views of the ratings they represent.

3. The Chairman may arrange for the co-option of Divisional or other officers and also of ratings when specific questions arise in the discussions of which their experience would be of use.

4. No officers on the committee are eligible to vote at the meetings.

5. Minutes of the meetings are to be kept for record, and copies are to be exhibited on notice boards.

1507. Ship's Fund. The Ship's Fund, which is formed by payment of rebate by the Navy, Army and Air Force Institutes, is primarily intended to meet the cost of recreation for the ship's company and for benevolent purposes connected with the ship. See also Appendix 22.

2. The Captain is to satisfy himself that a sufficient allowance is made for these objects, due regard being had to the proportion of the ship's company who are able to take part in any particular form of recreation. In all other respects the Welfare Committee is to have full discretion as regards expenditure, subject only to the right of veto on the part of the Captain of any proposed expenditure which appears to him subversive of discipline or otherwise improper. The circumstances in which such veto is exercised are to be reported by the Captain to the Commander-in-Chief.

3. Except as provided for in Article 1508, the accumulation of a large surplus is not to be permitted, and any balance remaining after making allowance for probable current expenses should be disposed of as donations to charitable funds or institutions.

4. Loans from the Ship's Fund should be permitted only in very exceptional circumstances and should ordinarily be repaid while the borrower is serving in the ship in which the loan was made. If the loan is repayable by instalments, the borrower may declare a monthly allotment in favour of the Honorary Treasurer of the Ship's Fund.

5. The accounts of the Ship's Fund are to be kept and audited in accordance with instructions in Section V.

1508 WELFARE, CANTEENS AND NON-PUBLIC FUNDS

1508. Disposal of Ship's Fund on loss of ship. If it is desired to reserve the Ship's Fund in order to ensure that it will be available for benevolent purposes in the event of a casualty resulting in the loss or dispersal of the ship's company, the balance may be lodged in a bank ashore, either in a current or a deposit account, or taken on charge by the Supply Officer as public cash. If the balance is deposited in the Post Office Savings Bank, the deposit book should, when possible, be landed with the duplicate ledger in time of war.

2. The adoption of this procedure is optional, and the instructions given for disposing of the balance will be acted on only in the event of total loss or the dispersal of the crew.

3. The Director of Navy Accounts (Branch 5a) is to be informed at the earliest opportunity of all sums so deposited or taken on charge, and of all subsequent additions or withdrawals, the resulting balance as well as the amount of variation being stated in each case, except that where the balance is lodged in a bank in the British Isles, either in a current or a deposit account, or in the Post Office Savings Bank, variations in the balance need not be reported.

4. The Director of Navy Accounts (Branch 5a) is also to be furnished with definite information as to the wishes of the ship's company with regard to the disposal of the balance of the fund in the event of the loss or dispersal of the crew. In all cases of lodgment with a bank, the bank is also to be furnished with this information (the communication to the bank being identical in substance with that made to the Director of Navy Accounts), or, if preferred, the bank may be directed to apply to the Director of Navy Accounts for instructions. In either case the directions to the bank should be signed by the officer authorised to operate the banking account. A copy of the communication to the bank should be forwarded to the Director of Navy Accounts.

5. It would not be practicable for the Admiralty or the bank to investigate the circumstances of the relatives or friends of men lost, or to distinguish between dependent or other relatives and friends. Nor can it be expected that it would be practicable for the fund to be administered by a committee of survivors. In all cases, therefore, where it is the intention that in the event of a casualty the balance of the fund should be used for benevolent purposes, it is necessary that the instructions as to the disposal of the balance in that event should provide for its being handed over to a naval or other charity for administration; and, if any conditions are imposed, that it should be ascertained that they would be accepted and acted on by the charity selected. A copy of any correspondence relating to such conditions should be furnished to the Director of Navy Accounts (Branch 5a). The observance of these arrangements will be a condition of the relaxation of Article 1507, Clause 3.

6. The Royal Naval Benevolent Trust, which has amongst its objects the administration of minor trusts of a benevolent nature, with benefits restricted to past, present or future members of the Royal Navy and their families and dependants, will be glad to place its machinery at the disposal of any ship's company for the disposal of the balance of the ship's fund.

7. The equal distribution of the money among the next-of-kin of men lost is not to be allowed in view of the difficulty of distributing the comparatively small amounts payable to each person and of the probable existence of necessitous cases to the relief of which the sum available might more advantageously be devoted.

8. The balance of any rebate due from the Navy, Army and Air Force Institutes to ships lost will be paid by the Corporation to the Director of Navy Accounts, who will dispose of the money in accordance with the wishes of the ship's companies where known, or forward the money to the Royal Naval Benevolent Trust for inclusion in the Trust's General Fund.

SECTION II. CANTEENS-NAVY, ARMY AND AIR FORCE INSTITUTES

1521. Establishment of canteens. Canteens in Her Majesty's ships and establishments are to be conducted by the Navy, Army and Air Force Institutes (N.A.A.F.l.) except in special cases where they are conducted under the Service system as provided for in Article 1551.

2. Details of the instructions and arrangements concerning Naval Canteens and the Naval Canteen Service of N.A.A.F.l. are given in Appendix 22.

II. CANTEENS-NAVY, ARMY-AND AIR FORCE INSTITUTES 1524

1522. Sale of beers, wines and spirits in shore canteens. In canteens and bars, excluding those in chief and petty officer's messes, operated by N.A.A.F.l. within the precincts of naval establishments the sale of liquor is normally to be restricted to beer.

2. The sale of wines may however, be permitted, at the discretion of the Commander-in-Chief, in those canteens which have a section set aside for the entertainment of visitors. The Commanderin-Chief may also authorise the temporary relaxation, either wholly or in part, of the restriction in Clause 1 when dances or similar entertainments are held, provided that the prior approval of the Captain of the establishment is obtained on each occasion.

3. The sale of wines and spirits is permitted in the canteens of R.N.V.R. Divisions and, subject to any directions by the Commander-in-Chief, in bars in chief and petty officers' messes and in those canteens which are situated outside the precincts of naval establishments and are used mainly by ratings on leave.

4. In shore establishments abroad, where the standard of local licensed premises makes this desirable, the restriction in Clause 1 may be waived with the specific approval of the Commander-in-Chief for each establishment concerned.

5. In all cases the Commander-in-Chief is to make the necessary rules to regulate the sale and consumption of liquor in naval establishments where this is permitted under this article, being guided therein by the policy communicated to him by the Admiralty.

6. In cases where a licence is required N.A.A.F.l. will make the necessary application to the Commander-in-Chief, Flag Officer Commanding or Major-General, Royal Marines, for the certificate authorising the holding of the canteen or beer bar (see 1552) and will thereafter arrange for the licence to be obtained and renewed as necessary.

1523. Accommodation for N.A.A.F.l. canteen stores and staff. In Her Majesty's ships accommodation for canteen stores will be specifically allocated and marked on the ship's drawings. Where necessary, the Captain may grant a further reasonable amount of accommodation if available.

2. In order to avoid duplication of stores onboard, articles forming part of the ship's official supply of victualling stores and available for purchase by officers and men are not normally to be stocked or sold in the canteen, but certain items of provisions may be sold by N.A.A.F.l. to meet individual requirements as laid down from time to time in Admiralty Fleet Orders.

3. N.A.A.F.l. canteen staff will be included in the numbers for whom sleeping and messing accommodation is provided in the design of H.M. ships. For messing purposes, the equivalent naval status of N.A.A.F.l. canteen staff is as follows:

4. IN CRUISERS AND ABOVE. The Manager is to mess in the chief petty officers' mess. A separate N.A.A.F.l. canteen mess, incorporating an office (with sleeping accommodation for the Manager if practicable) should be provided whenever possible; where this is not possible, the Manager should have office accommodation in the canteen and other canteen staff are to mess in the Cooks' mess.

5. IN SHIPS SMALLER THAN CRUISERS. The Manager is to mess in the petty officers' mess and other staff in the Cooks' mess; where possible the Manager should have office accommodation in the canteen.

6. MALTESE CANTEEN STAFF. Where Maltese canteen staff are borne separate messing arrangements are to be provided for Managers of equivalent chief or petty officer status. Other Maltese canteen staff are to form a separate mess of their own or mess with Maltese Cooks and Stewards.

7. The conditions under which N.A.A.F.l. canteen accommodation is provided in shore establishments are dealt with in Appendix 22.

1524. Canteen staff. Canteen Managers and Canteen Assistants will be provided and drafted by the Navy, Army and Air Force Institutes.

1525 WELFARE, CANTEENS AND NON-PUBLIC FUNDS

2. Members of the canteen staff are not subject to the Naval Discipline Act except in so far as that Act applies to passengers (1802 (1) (d)). They are to be entered on a separate section of List 20 of the ledger but are not to be borne for pay or victualling.

1525. Victualling of canteen staff. The canteen staff are to be victualled by, or at the expense of, the Navy, Army and Air Force Institutes.

2. In seagoing ships the Manager may take up reasonable quantities of Service provisions for the use of himself and his staff on board on repayment at the issuing prices in force for naval ratings.

3. In General Mess ships, the Manager may arrange with the Supply Officer for himself and his staff to be messed in the General Mess on repayment, the amount paid being calculated on the zonal rate of victualling allowance.

4. If the canteen staff are included in any of the ship's company messes in ships on the victualling allowance system of messing, the Canteen Manager should settle with the messes for the full cost of the victualling of the canteen staff.

5. Except in seagoing ships, the spirit ration is not to be drawn by canteen staff. In seagoing ships United Kingdom and Maltese canteen staff who have attained the age of 20 years may be permitted to draw the spirit ration on repayment if they so desire.

6. Canteen Managers may draw the neat issue (4922 (2) ) but other canteen staff are to receive spirit mixed with two parts of water. Issue of the spirit ration is to be made preferably in the evening, but it may be made at another time at the discretion of the Commanding Officer with due regard to the proper performance of canteen duties during the busy hours.

7. Payment at the rate of 3d. per ration per day is to be made monthly by the Canteen Manager to the Supply Officer of the ship or parent ship.

1526. Dress of canteen staff. In time of peace, canteen staff are to be dressed neatly and suitably as civilians, and in conformity with any instructions on the subject laid down by the Commander-in-Chief.

2. The canteen staff may be allowed to take up non-uniform articles of clothing from Service stocks on repayment provided that the quantities drawn are not in excess of their immediate needs.

1527. Medical treatment of canteen staff is dealt with in Article 4283.

1528. Canteen bills. Credit is not to be given to individuals, and private bills, when included in the mess bill, are not to be recognised officially as such, but the mess is to be held responsible for all debts contracted in its name.

2. Canteen bills are to be paid by messes as soon as possible after the end of each month. Instructions regarding payment of canteen bills out of mess savings in ships victualled on the credit system of victualling allowance messing are contained in B.R. 93 Victualling Manual.

3. In ships about to pay off, or in which the crew are to be transferred to another vessel, the Captain is to ensure that all canteen bills are settled before the crew leave the ship; rebate will then be paid by N.A.A.F.l. up to the date of paying off or transfer of the crew. Clearance of ship accounts and payments of rebate will be facilitated if arrangements are made locally for all dealings with the N.A.A.F.l. for the last seven days of the commission to be conducted on a cash basis. Where this is done the depot ship or base should make local arrangements within the regulations to ensure that no hardship through lack of cash is occasioned, advances of pay, within the amount of the balances due to the ratings concerned, being made where necessary. See also Appendix 22.

1529. Complaints. All complaints by individuals about goods sold in the canteen whether in respect of quality, weight, price, or any other particular, are to be made at once to the Canteen Manager or to the senior Canteen Assistant on duty. If the Canteen Manager or Canteen Assistant is unable, or unwilling, to remedy the complaint it should be reported by the individual to his representative on the Welfare Committee. This does not debar an individual from taking a complaint of an immediate nature before the Officer of the Watch in accordance with Article 1850.

III. CANTEENS-SERVICE SYSTEM 1553

SECTION III. CANTEENS-SERVICE SYSTEM

1551. Service system. A canteen may be established on the Service system where, owing to the absence of a properly fitted canteen or for any other special reason, it is not possible for the canteen to be conducted by the Navy, Army and Air Force Institutes. Special arrangements are made by N.A.A.F.I. for supplies to canteens conducted on the Service system, both afloat and ashore.

2. Under the Service system goods required for resale in the canteen are obtained by direct purchase and the general administration of the canteen is undertaken by the Welfare Committee or, in the absence of a Welfare Committee, by the Captain.

3. The Captain is to exercise careful supervision over the working of the canteen and, where no Supply Officer is borne, is to nominate an officer, or a senior rating if no officer is available, as business manager and accountant, who is to be responsible for all purchases, custody of cash and cash transactions in connection with the canteen.

4. The rules as to subsidiary and non-public funds given in Section V of this chapter are to be strictly applied to the administration of canteens run on the Service system.

5. To enable payment to be made for initial supplies advances of public money may be made to the Captain on commissioning under the arrangements laid down in B.R. 1950 Naval Pay Regulations.

6. The Captain should satisfy himself that proper arrangements are made for the safe custody of all canteen stores and that all possible precautions are taken to avoid losses. Frequent careful musters of stock are among the more important precautions necessary.

7. Before stocks are received it is very important that the Captain should obtain from the suppliers precise information concerning the liability of the ship or establishment in the event of loss or damage, either of stock supplied on credit or of stocks paid for but not consumed. In the light of this information, the Captain should make arrangements, by way of an agreement or by effecting an insurance, to ensure that the ship or establishment is relieved of any liabilities arising from loss or damage that would be beyond its capacity to meet.

1552. Sale of beer. Beer may be sold in canteens in naval establishments, or in bars in chief and petty officers' messes, which are conducted on the Service system, subject to the prior approval of the Admiralty at home or the Commander-in-Chief abroad.

2. In Great Britain it is essential that all such cases are covered by an Excise Licence for which application should be made to the Inland Revenue Officer for the district. When applying for an Excise Licence it is not necessary for any licence from the Justices to be obtained but the person making the application must produce to the Inland Revenue Officer a certificate of his authority from the Admiralty to hold the canteen or bar. The certificate should be issued in favour of the person concerned by reference to his official appointment and should be expressed to include his successors in that appointment to avoid the necessity of renewing the certificate on the relief of the holder. The certificate should also give the situation of the canteen or bar and a description of the intoxicating liquor to be sold.

3. No new wet canteen is to be started without Admiralty sanction. The certificate referred to in Clause 2 will therefore be issued from the Admiralty in the first instance. Excise licences are renewed annually and in Great Britain authority to issue on behalf of the Admiralty any further certificates required by the Inland Revenue Officer is vested in all Commanders-in-Chief and Flag Officers Commanding within the limits of their respective commands, and in Major-Generals, Royal Marines, in respect of Royal Marines establishments under their command.

4. Commanders-in-Chief abroad should consult the appropriate authorities to ensure that the requirements of the local laws and Customs regulations are duly met.

1553. Beer bars in Chief and Petty Officers' messes. The Navy, Army and Air Force Institutes will normally conduct beer bars in chief and petty officers' messes. Special alternative arrangements have been permitted in certain shore establishments in the United Kingdom and in those cases, which will not be added to, the purchasing of beer and other requirements from the Navy, Army and Air Force Institutes is to be encouraged.

1554 WELFARE, CANTEENS AND NON-PUBLIC FUNDS

1554. Sale of wines and spirits. The regulations restricting the sale of wines and spirits in canteens operated by N.A.A.F.l. (see 1522 (1) to (4) ) apply also to Service canteens. Wines and spirits may be sold in chief and petty officers' messes only where the bars are conducted by the Navy, Army and Air Force Institutes; exemption from this rule may, however, be granted by the Commander-in-Chief in special cases.

1555. Benevolent funds. The procedure for the remittance of a proportion of the canteen profits to the Royal Naval Benevolent Trust and the W.R.N.S. Benevolent Trust is given in Appendix 22, paragraph 55.

SECTION IV. BOOKSTALLS, HAIRDRESSING, BOOT REPAIRS, TAILORING AND PRIVATE TRADING GENERALLY

1561. Bookstalls. Bookstalls may be under the management of N.A.A.F.l. or they may be conducted by officers and ratings of the ship or by private traders. Proposals to allow private traders to manage bookstalls should be forwarded through the Administrative Authority to the Admiralty for approval, full particulars of the terms of the proposed tenancy being given. The method to be adopted should be carefully considered and settled on commissioning so that changes during the commission may be avoided if possible.

2. Should special circumstances make a change of management desirable during a commission, the approval of the Commander-in-Chief is to be obtained to give appropriate notice of termination to the existing management and to make other arrangements. Arrangements are to be made for the remaining stock of crested goods peculiar to the ship, provided that they have proved saleable in the ship, and such other stock as may be agreed upon, to be taken over by the new management at cost price or at an agreed valuation. Where bookstalls are not already under their management, N.A.A.F.I. are prepared to take them over if desired.

3. The following rules are to be observed:-

1. No articles stocked by the ship's canteen are to be sold in the bookstall.
2. Subject to (a), trading is to be confined to the following articles:-

Papers, periodicals and books
Stationery, i.e. notepaper, envelopes, postcards, pens, pencils, inks
Photographs of ships
Mementoes bearing ships' crests
Indoor games, gramophone records and camera films.

There is no objection to the bookstall acting as an agency for orders in connection with Christmas presents and similar schemes organised by reputable firms.

4. SUPERVISION OF BOOKSTALLS CONDUCTED BY OFFICERS AND MEN. Attention is drawn to the necessity for strict supervision of bookstalls conducted by officers and men of the ship, as laxity in this respect may result in serious loss to ships' funds. The Captain is responsible that adequate precautions are taken to prevent irregularities, that the bookstall and the keeping of accounts are conducted on proper lines and that the rules relating to non-public funds in Section V of this chapter are strictly observed.

1562. Hairdressing. Barbers' shops are installed in the larger H.M. ships when space permits. Where there is sufficient business to justify the employment of a full time barber, and there is suitable living accommodation on board, the business should normally be conducted by N.A.A.F.l. (See Appendix 22, para. 82.)

2. In ships where the business is not conducted by N.A.A.F.l. arrangements should be made by the Captain, in conjunction with the Welfare Committee, for the work to be carried out by volunteers from the ship's company outside normal working hours and subject to the following Aft conditions:-

1. that an agreed scale of charges is approved by the Captain on the recommendation of the Welfare Committee; and
2. that loose tools and materials are provided by individuals doing the work or by ship's funds. Certain loose tools, etc., are obtainable from the N.A.A.F.l.

V. SUBSIDIARY AND NON-PUBLIC FUNDS 1583

SECTION V. SUBSIDIARY AND NON-PUBLIC FUNDS

1581. Subsidiary and non-public funds. No subsidiary or non-public fund, other than officers' mess and wine funds and the ship's fund, is to be opened without the written approval of the Captain. In ships where the total number of officers borne does not exceed four, the opening of any such fund (including officers' mess and wine funds and the ship's fund) is to be reported to the Administrative Authority for approval.

2. The officer approving the opening of a fund is to issue instructions for:

1. the supervision of the fund;
2. keeping the accounts;
3. custody of cash;
4. auditing accounts;
5. fixing prices, where sales take place;
6. insurance (see 1582 (2)) ;

indicating who is responsible in each case.

3. The officer supervising the fund is responsible that the cash in hand and stock, if held, never exceed actual requirements. Where no suitable arrangements exist for the safe custody of nonpublic funds in shore establishments a money chest may be demanded.

4. No person having the custody of cash being or forming part of a subsidiary or non-public fund is permitted to cash his own cheque or I.O.U. from the money in his charge or otherwise to use such money for his own purpose. See also 1412 (1).

5. Where no special account book is otherwise provided, accounts of subsidiary and non-public funds are to be kept in Form 5.1007, Miscellaneous Funds Account Book.

1582. Where stocks of goods are held. The following rules are to be observed in connection with funds, such as bookstalls, or canteens run on the Service system, which involve the purchase of goods for re-sale:

1. A price list of all articles sold is to be prominently displayed.
2. A " Sales Book " is to be kept in which all articles sold and their selling price are to be recorded. The money realised from sales is to be handed over daily to the officer in charge of the fund; the amount so received is to be compared with that shown in the sales book, which is to be signed daily by the officer in acknowledgement of receipt of the money.
3. The accumulation of large sums of money is not to be permitted. Cash should be placed with the Supply Officer for safe custody pending an opportunity of remitting it.
4. A " Stock Book " (see Appendix 20) is to be used and an accurate account kept of all goods received, together with cost prices. Stocktaking should be held at least once a month. (But see Appendix 20, paragraph 6 (i) ).
5. A " Cash Book " (see Appendix 20) is to be kept by the officer in charge of the fund and is to contain a daily record of monies received for sales and all other cash transactions. It is to be balanced at least once a week, to check possible errors or irregularities, and is then to be initialled by the Captain.

2. The Captain's approval under Article 1581 for the establishment of any fund carrying stock is in every case to be conditional on insurance being effected, and instructions issued in accordance with Article 1581, Clause 2, are to include one that no order for stock is to be placed unless that stock is effectively covered by insurance from the date of placing the order. Stock which is carried at the supplier's risk need not be insured by the ship (see also 1551 (7)).

1583. Balance sheets. At the end of each four-monthly period (28th February, 30th June, and 31st October) accounts are to be closed and balance sheets prepared by the mess or welfare committee, or, for other non-public funds, by the officer responsible for the accounts, showing the whole of the assets and liabilities of the funds for which they are responsible.

2. The assets should show the money in hand to meet the liabilities, the amounts owing by members or subscribers, and the value of the stock in hand. Where stocks are held, a stocktaking

1584 WELFARE, CANTEENS AND NON-PUBLIC FUNDS

by two officers of the committee of the fund is to take place immediately preceding the preparation of the balance sheet, and a signed statement of stocks held, certified by these two officers, is to be handed to the auditing officers.

3. The balance sheet for wine accounts is to be prepared in the appropriate section of the Wine Book (Form S.253) and for other accounts on Form 5.256, Balance Sheet and Audit. Duplicate and triplicate copies, including those of wine accounts, are also to be made on Form 5.256.

4. Separate balance sheets may be prepared for subsidiary mess funds, e.g. tobacco account, catering account, etc., but where this is done a final balance sheet is also to be prepared by the mess committee to include all the mess funds, other than the wine fund, for which the members of the mess as a body are liable.

5. The balance sheets of mess and wine accounts and of the ship's fund, including all subsidiary funds in connection with the ship's fund, and all local service sports clubs and associations, are to be signed by all the members of the respective committees. Where a committee consists of more than six members it will suffice for the balance sheet to be signed by the President (or Chairman), Secretary and Treasurer, and also by all members of the finance committee, or if there be none, by three other members of the general committee. The balance sheets of other non-public funds are to be signed by the persons responsible for keeping the accounts.

6. The balance sheet for the ship's fund should be accompanied by a statement of receipts and expenditure grouped under headings covering the period of the audit. Such headings would include N.A.A.F.I. rebate, compassionate grants (without names), grants to football and cricket funds, wages, film hire and the like. This statement, signed by the members of the committee as in Clause 5, and approved by the Captain, should be displayed on the ship's company notice board.

1584. Audit. Accounts are to be audited not later than the 15th of the first month of each four-monthly period (1583 (1) ) and whenever the accounts are transferred from one officer to another or are finally closed.

2. The auditing officers are to be three officers selected by the Captain and, subject to the proviso that no officer should be selected to audit his own accounts, should include, when available, one Executive officer not below the rank of Lieutenant, and one Supply officer or Instructor officer. When four officers or less, including the Captain, are borne in the ship, the auditing officers are to be three officers detailed by the Administrative Authority, who is to ensure, when any accounts are kept personally by the Captain, that at least one of the auditors is an officer of another ship.

3. In ships in reserve, the auditing officers are to be appointed by the Senior Officer of the Reserve Fleet Division.

4. Auditing officers are to follow the procedure laid down in Appendix 20.

5. Commanders-in-Chief are authorised to approve the employment of qualified civilian auditors for the audit of mess, wine and other non-public funds in establishments where in their opinion the volume of business warrants it, the cost being borne by the fund concerned. Where civilian auditors are employed the procedure given in Appendix 20, Part 3 is to be followed.

1585. Ratings' messes. The instructions in this section are to be applied to all ratings' messes which have permanent mess funds or are permitted to obtain supplies other than those dealt with on Form S.73.

2. Such messes are always to have a mess committee, all members of which are to sign the periodical statements and balance sheets, and it is important that the Captain should make adequate arrangements to ensure continuous compliance with Article 1581 (3).

3. When the accounts of a ratings' mess are audited the Captain should appoint a rating who is not a member of the mess committee to be an auditor in addition to the officers prescribed in Article 1584 (2).

1586. Inspection of accounts. A list of all subsidiary and non-public funds authorised by the Captain or Administrative Authority under Article 1581 is to be kept on board. At inspections this list is to be produced for the scrutiny of the inspecting officer, together with the accounts of the funds listed and of the officers' mess and wine funds and of the ship's fund.

1587. Non-public funds on paying off. On paying off the Captain is to take steps to ensure that all non-public accounts are closed and audited, and that proper arrangements are made for the disposal of the balances of such funds, receipts for such balances being produced to and approved by the auditors.

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