(g) A summary of efforts made by the applicant to determine a foreign flag rate which would be charged for the transportation of the lumber involved, including all of the items listed in paragraph (f) of this section.

(49 Stat. 422, 46 U.S.C. 383 note) [G.O. 98, 28 F.R. 1151, Feb. 6, 1963]

Subpart C-Records Retention
Schedule

AUTHORITY: The provisions of this Subpart C issued under secs. 204, 207, 49 Stat. 1987, as amended, 1988, as amended; 46 U.S.C. 1114, 1117; sec. 801, 49 Stat. 2011, 46 U.S.C. 1211.

SOURCE: The provisions of this Subpart C contained in General Order 101, 30 F.R. 12356, Sept. 28, 1965, unless otherwise noted. § 380.20

Purpose.

The purpose of this subpart is to prescribe the procedure to be followed by contractors for the retention and disposal of books, records, and accounts created and maintained by them under operating-differential subsidy contracts with the Maritime Administration/Maritime Subsidy Board (hereinafter referred to as the "Administration"). The minimum retention periods prescribed herein govern only the Administration's requirements for the preservation of the hereinafter specified books, records, and accounts but the failure to describe a particular book, record, or account shall not exempt a contractor from retaining the particular book, record, or account, unless expressly so authorized by the Administration. § 380.21

Reproduction.

(a) The following bulk records may be microfilmed or otherwise reproduced in lieu of their retention in original form: Provided, That such reproductions shall not be made prior to completion of the final audit of such records and approval of annual accountings by the Administration.

(1) Cancelled checks;

(2) Dray tickets;

(3) Bills of lading;

(4) Proxies;

(5) Vessel itineraries and position reports;

(6) And such other records specifically approved by the Administration upon application made therefor.

(b) The following standards are established for reproduction processes:

(1) Microfilm. The film stock used in making photographic or microphotographic copies shall comply with Interim Federal Standard No. 125 covering photographic film and processed photographic film. The microfilm shall be regularly inspected for aging in accordance with Handbook 96, entitled, "Inspection of Processed Photographic Record Films for Aging Blemishes", published by the U.S. Department of Commerce, National Bureau of Standards. If blemishes are detected, a duplicate copy of the roll or print shall be made immediately.

(2) Photocopy. Electrostatic or wet processes only.

§ 380.22 Responsibility.

(a) Notwithstanding the minimum retention periods hereinafter set forth, it shall be the sole responsibility of any party subject to the provisions of this subpart to retain such books, records, and accounts:

(1) For the periods specifically provided by any statutory, regulatory, and contractual requirements of the Administration, or

(2) Pertaining to or related to matters in litigation, to matters which knowingly may become involved in litigation, to unsettled claims of whatsoever nature, and to all unsettled matters specifically reserved by the parties at the time of any final accounting as may be required under statute, contract and/or agreement.

(b) With respect to books, records, and accounts which, subject to the provision of paragraph (a) of this section, are to be disposed of upon the expiration of the minimum retention period prescribed herein, there shall be filed with the Records Officer, Maritime Administration, Washington, D.C., 20235, written notification, in triplicate, via registered mail at least thirty (30) days prior to the contemplated, disposal requesting permission to dispose of records. The request shall be in such form that the books, records, and accounts can be readily identified. Within thirty (30) days after receipt of such notification the Records Officer shall grant approval for disposal, or advise the necessity for continued retention of all or any specified portion thereof. Failure of the Record Officer to reply within the thirty (30) days period following receipt by the Administration of such request shall constitute approval.

(c) Applications for special authority to dispose of certain books, records, and

accounts prior to the expiration of prescribed minimum retention periods, and any inquiries as to the interpretation or applicability of this subpart to specific items shall be submitted to the Records Officer, Maritime Administration. The applicant shall describe in detail the items to be disposed of and explain why continued retention is unnecessary. $380.23 Supervision of records.

(a) Contractors and others subject to the provisions of this subpart shall designate, through formal action, the official company position by title, the incumbent of which shall be responsible for supervision of its document retention and disposal program. Immediately upon designation of the position, a copy of the formal action and name of the incumbent shall be filed with the Records Officer, Maritime Administration.

(b) The person in charge of the retention and disposal program shall maintain a record of all books, records, and accounts held in storage, and in such form that the items and their location are readily identifiable. A copy of the written notification requesting permission to dispose of any books, records, and accounts, and the original approval from the Administration, as required in § 380.22(b), together with a statement showing date, place and method of disposal will suffice as a record of such disposed items. These retention and disposal records shall be available at all times for inspection by Administration officials and auditors.

§ 380.24

Schedule of retention periods and description of records.

(a) The following records shall be retained for not less than six (6) years after final release agreement or settlement agreement is completed between the Administration and contractors under operating-differential subsidy contracts.

(1) Official company or corporate records such as certificates or articles of incorporation, minute books, stock ledgers, bond registers, merger or acquisition records, patents, and copyrights;

(2) Books of account such as general and subsidiary ledgers, journals, cash books, and check registers;

(3) Financial statements and reports such as annual reports to stockholders and audit reports by independent public accountants;

(4) Personnel records and supplementary records such as union agreements, retirement plans, group insurance coverages, and profit sharing plans;

(5) Insurance records such as policies, underwriters' audit reports, indemnity bonds, salvage data, and claim files;

(6) Contracts, agreements, franchises, licenses, etc., such as subsidy, charter, ship construction, pooling agreements, tax closing agreements, and any other contracts with Federal, State, local and foreign governments, and with independent or related companies or parties;

(7) Vessel inventories, on-subsidy, offsubsidy covering expendables and spare parts.

(b) The following records shall be retained for not less than six (6) years after audit and approval by the Administration of a final accounting for the last year of a recapture period and settlement of such recapture period:

(1) Debt records such as mortgages and loan agreements;

(2) Investment records such as stocks, bonds, and property;

(3) Freight and passenger conference records;

(4) Tax records-Federal, State, local and foreign governments, such as income, property, franchise, and payroll;

(5) Vessel operating records such as log books, surveys, position reports, and vessel itineraries;

(6) Financial records such as subsidy accrual computations, voucher billings and payments, statutory reserve fund statements, and audit appeals and rulings;

(7) Real property and equipment records such as costs, depreciation, sales, etc., on land, buildings, equipment, and vessels;

(8) Property records such as titles, deeds, and leases;

(9) Vessel inventories taken at termination of the last voyage of each vessel at end of each recapture period.

(c) The following records shall be retained for six (6) years after final audit and approval of annual accountings by the Administration:

(1) Ship construction or reconversion records such as bids, plans, progress payments, and construction-differential subsidy data;

(2) Canceled checks;

(3) Miscellaneous documents and work papers such as correspondence, operating and construction-differential

subsidy rate data, subsidy adjustments pursuant to 46 CFR Part 276 (General Order 50), exemptions under section 803 of the Merchant Marine Act, 1936, and approvals pursuant to Article II-10 (c) of operating-differential subsidy contracts when no longer effective;

(4) Any document generated under the provisions of the Shipping Act, 1916. (d) The following records shall be retained for two (2) years after final audit and approval of annual accountings by the Administration:

(1) Voyage account items such as manifests, bills of lading, disbursement vouchers, master's accounts, ship's payrolls, and vessel inventories other than those listed in paragraphs (a) and (b) of this section; and

(2) Underlying traffic records pertaining to tariffs, dray tickets, pooling agreements, and passenger reports.

(e) Reports prepared by Federal, State, local or foreign governments pertaining to any documents referred to in this 380.24, shall be retained for the same period as prescribed herein for the retention of the documents to which they apply.

(f) If identical copies of the same document serve more than one purpose, only the original copy is required to be retained.

NOTE: The record-keeping and reporting requirements contained herein have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942.

Part

401

Great Lakes Pilotage Regulations.