There are ONLY 4 types of Company (Flag) Bills which are paid locally by FBOs:

1. COMPANY (FLAG) LOGISTIC PURCHASES - Due to better local prices, quality or availability of certain items required by Central Management, these are ordered by Flag from FOLOs, and occasionally from orgs. This would include such items as fuel and insurance bills of Flag but nut such bills of stationships or orgs. It could include promotional items ordered for local printing, manufacturing or distribution, where these are specifically designated by Flag as Flag expense.

All such logistic purchases must bear the authorization of one of the following terminals: the Founder, the Controller or their Personal Communicators on their behalf, or the Flag Purser. An external purchase order form or at times a telex authorizes the expense.

2. COMPANY (FLAG) LOGISTIC ITEMS SHIPPING COSTS - This is defined as the cost of shipping to Flag items purchased in (1) above. Such items are shipped overland unless an ok to send by airfreight has been received from one of the above terminals.

3. TRANSPOR T OF COMPANY (FLAG) PERSONNEL - This is defined as the cost of transporting Flag personnel to be stationed at Flag. These are either (a) recruits, (b) veterans called for Flag duty or (e) specialized personnel called for Flag duty such as Translators.

This does not include org or FOLO or Stationship personnel sent to Flag for training, processing or briefing.

A telex or written order signed by the Flag Personnel Procurement Officer (FPPO) and Purser Flag authorizes the expense as Flag expense, and the FPPO is the only terminal who may authorize such an order.

4. COMPANY (FLAG) MISSION AIRE EXPENSES PAID - This is defined as funds given to Flag or FOLO missionaires on Flag Mission Orders to carry out their mission purpose or targets. Sometimes a mission stays longer than was intended or for other reasons requires additional funds.

The FBO must see the Mission Orders and determine that the required sum does forward the mission targets. The FBO must then telex the Flag Mission Ops and request Flag authorization for specific items and amounts. He is to demand standard mission accounting per FO 2412 from all missionaires to whom funds have been issued. (Msn Ops receives approval from the Flag Purser on the expense.)

All missions operating on Flag Mission Orders (FMOs) arc considered Flag missions and their expense is considered Flag expense regardless of whether the Missionaires themselves originated from Flag or from a FOLO. This does not include Garrison missions where a person is appointed to a duty post and given mission orders as these carry no authority for purchases or expenses, and the Missionaire is supported by the unit where he is stationed. (The sole exception is where a Flag Representative may request and obtain from Flag permission fora specific local purchase as a Flag expense where his org has failed to provide him with necessities to operate his post.)

Mission bonuses for a Flag Mission (any mission operated on Flag Mission Orders) are a Flag expense: paid against the most recently issued Flag Mission bonus system after authorization from Flag. This bonus is transferred from the FBO No. 2 Account to the Org Main Account, so that proper records are kept for Payroll taxes.

Flag solvency and credit reputation in local areas is the responsibility of the FBO.

The FBO must have to hand all valid and verified Flag Bills owing and adequate No. 2 Account cash to cover.

The FBO must be cognizant of purchases for Flag committed by Div III Logistics.

Flag purchases committed but for which no bill has yet been received are kept on file until Div III can attest goods received in good order and bill correct. The bill then passes to the FBO and is promptly paid.

Flag Bills not involving Div 111 (such as Flag’s fuel and insurance) do not pass via Div III but go directly to the FBO for verification and payment.

Flag Bills described in 1, 2, 3 and 4 above are paid from the FBO’s No. 2 Account. The org is repaid by Flag for the payment upon receipt at Flag of a completed Flag Bills Paid Statement, a sample of which is attached, together with copies of the relevant hills, receipts and vouchers and PO’s or telexes authorizing the expense attached to it.

Any amount appearing on the statement for which there is no bill, receipt or voucher or PO will be deducted from the statement and org will not be paid for any amount so deducted. (Every business firm, no matter how small, is happy to give a receipt if one is asked for. Even cab drivers will sign a piece of paper tom from a missionaire’s notebook as a receipt for payment.)

Flag Bills Paid Statements are forwarded weekly to Flag Disbursement Officer via Finance Aide on Finance traffic lines. A copy of the Statement, minus attachments, is sent to Finance Aide.

The administrative orderliness and correctness of this procedure and rapid payment of verified Flag Bills and financial good repute and credit of the Company (Flag) in local areas is entirely the FBO’s responsibility. On Flag it is the responsibility of the Purser to ensure bills are speedily reimbursed.

The rapid and effective procurement of Company logistic needs and the verification of delivery in good order and the certification of correctness of bills for same and prompt relay of such verified bills to the FBO for payment is the responsibility of Div III Logistics.

FBO responsibility includes an alertness for and rapid remedy of any possible breakdown of these lines or actions, even those remote from his own duties.