formerly possible. Such analyses and interpretations can significantly help the CO make decisions about funding shifts and program trade-offs. The staff continually performs an obligation and expenditure review to help headquarters components control the obligation and expenditure of funds under their administration. This review permits continuing comparisons of obligations and expenditures with authorized funds. In comparing the rate of obligation with the budget plan, the staff investigates the reasons for any variations. With the knowledge obtained from such reviews, those responsible can better anticipate future fund requirements. They can also avoid overobligation and overexpenditure by making needed adjustments or, when necessary, by placing timely requests for reallocation or reapportionment. PROPERTY ACCOUNTING Operation of the naval establishment requires many categories  of  material–aeronautical,  electronic, ordnance, ship’s parts, and subsistence items, to name a few. These categories are inventory segments of our Navy’s equipment and material system. Managing this inventory and protecting the investment of the government requires strict accountability. The Navy accounts for property through the use of custody cards, inventories, and plant and minor property accounting systems. Custody Cards For each item of controlled equipment requiring custody signature, you must have a Controlled-Equipage  Custody  Record  (4442).  Use either the NAVSUP Form 306 or 460 (figs. 6-4 and 6-5). Both cards are generally referred to as custody cards. After sighting the item identified on the card, an appropriate authority, usually the division officer or the department head, signs the card to acknowledge custody of the item. NAVSUP Form 306 fits into a three-ring binder. NAVSUP Form 460 fits into the pocket of a cardex file. The original and at least one copy of the custody card should be prepared for each item of equipment requiring custody signature. The original should be maintained by the suppl y officer or the department head. If the supply officer maintains the original, it is generally signed by the department head. Inmost units, however, the department head maintains the original custody cards, and the division officer signs them. For plant property  (plant  account)  items  requiring  custody signature, the administrative branch or the comptroller usually keeps the original. Duplicate copies of custody cards are usually maintained by the division supply petty officer for subcustody purposes. When an item of equipment requiring custody signature is issued to a member of the crew, it is signed for on the duplicate copy of the custody card. The person receiving the item is, therefore, acknowledging subcustody of the item. Permanently installed items should be subcustodied to the petty officer in charge of the workcenter where the equipment is located. The duplicate or subcustody card is also used to make periodic and required sight inventories of the items. The card is signed (on the back) by the person conducting the inventory. The original custody card need only be signed once by the person having custody of the item. It need not be signed each time an inventory is conducted. The original custody card is signed by the relieving authority when he or she initially sights the custody item. Inventory of Controlled (Custody) Equipage All items of controlled equipage, including items requiring a custody signature and plant property items, must be inventoried at least annually during the period 15 February to 15 March. Inventories of controlled equipage are also required when any of the following situations occur: A The ship, station, or unit is commissioned, inactivated, or reactivated. Upon relief of the department head. Upon change of command at the discretion of the relieving CO. Although not specifically required an inventory should also be conducted whenever the division officer or division supply petty officer is relieved of his or her duties. Controlled-Equipage Custody Record (4442), NAVSUP Form 306 or 460, is usually used to conduct the controlled equipage inventory. Each article is sighted and inspected for serviceability by the person making the inventory. Articles identified by serial number are checked by those numbers when inventories are taken. As the inventory progresses, the person conducting the inventory signs the custody record, acknowledging custody or inventory, as appropriate, of all the items sighted. All controlled equipage inventories must be completed within 30 days after the date of commencement. When taken jointly by the relieved and 6-15