BREAKIN TO A SHIP'S STORE SPACE
When a space is broken into, the space involved will have to first be sealed using a serialized seal. The incident and circumstances will be reported to the commanding officer. The commanding officer will conduct an informal examination to reveal the extent of the loss. All spaces will be inventoried; all financial control records or stock records closed to determine the actual dollar value of the loss. If the informal examination reveals no loss, then no further action is required. If the examination reveals a loss due to the breakin, then the commanding officer must do the following:

. Relieve the accountable officer or agent if the examination indicates his or her negligence
. Request the assistance of the local Naval Investigative Service (NIS) for losses in excess of $2,250
. Take disciplinary action according to the UCMJ, if necessary
. Reopen the space after inventory and when accountability is reestablished
. Report findings and action taken by letter to the type commander with a copy to the fleet commander, NAVSUP, Navy Accounting and Finance Center, NAVRESSO, and Naval Supply Corps School, Athens

FRAUD
Fraud in the ship's store operation refers to theft of funds or merchandise or changing official records by the accountable officer or responsible individual. Any person suspecting fraud in the ship's store operation should report it to the commanding officer. The commanding officer will direct an informal examination by someone other than the accountable officer. Any space affected and all ROM backup tapes and transac-tions on the ROM microcomputer will be secured and the ship's store operation will be inventoried and closed out. If no loss is discovered after the informal examination, no further action is re-quired and the ship's store operation may resume. However, if a loss is discovered, the accountable officer or agent will be relieved if found to be responsible. The commanding officer will request assistance from the local NIS and will establish a formal fact-finding body according to the JAG Manual, par. 0909. Once inventory is completed and accountability reestablished, the ship's store operation will resume. The commanding officer will report findings and actions taken in the same manner as if a breakin had occurred.

INVENTORY
Physical inventory is the process by which you identify, count, and evaluate all stock on hand. Inventory is conducted in the sales outlets at the end of each accounting period (31 Jan, 31 May, and 30 Sept), on relief of the ship's store officer or sales outlet operator, and when directed by higher authority. The ship's store officer is responsible overall for an accurate and complete inventory. Just before inventory, a two-count system will be employed and, therefore, a minimum of two inventory teams is required. Normally, inventory teams consist of two persons; however, if sufficient personnel are not available, teams may be composed of one person. The office records-keeper may not be assigned to an inventory team. The first team should consist of the ship's store officer or other commissioned officer and one enlisted person, while the second team will consist of one enlisted person in the supply rating E-6 or above and one other enlisted person. Since each sales outlet differs in size, volume, layout, and so forth, specific instructions will be prepared locally and distributed to personnel well in advance of the inventory to cover such topics as assignment of personnel, cutoff times, stock arrangements, and so forth. A layout sketch of the sales outlet will also be prepared showing each fixture, bin, shelf, and showcase with a number identifying each one. These layouts are prepared by the ship's store officer in advance of the inventory. An identical number to the one shown on the layout sketch will be attached to each fix-ture by the sales outlet operator in the sales outlet. As the sales outlet operator, you should make sure your space is ready for inventory. First, you should arrange all merchandise in the sales outlet, so similar items are together and stacked neatly. Second, you will prelist the space by putting the information, as shown in figure 2-11, on the Inventory Count Sheet, NAVSUP Form 238. The NAVSUP Form 238 is used to record the

Figure 2-11.- Prelisting for inventory.

inventory; you may obtain the forms from the ship's store officer. You do not need to worry about retail or cost prices on the prelisting; however, be sure you follow the inventory pattern. Prelist from left to right and finish prelisting one fixture before moving onto the next. If your ship uses the ROM system, you may be required to generate or update the inventory prelisting by identifying ship's store stock numbers in the same order as they will be inventoried. During inventory when the actual physical inventory is not in progress, and on completion of the inventory, the retail store must remain closed until it has been determined that there is no excessive shortage or overage. The ship's store officer secures the space with a numbered lead or car seal. A log of these numbered lead or car seals is maintained. After it has been determined that there is no excessive shortage or overage, the lead seal is broken and the store is reopened for business.