FOM-2.8 Fleet Operations Manual
Shipboard Admin
Accounting
 Doc No.: FOM-2.8
Revision: 01
Date: 15 Oct 2024
Issued by: DPA
Approved by: MD

2.8 Accounting

2.8.1 Current Account and Cash Statement

The Master is responsible for this process.

  1. Record on form ADM 10 - Vessel’s Cash Account all cash and credit transactions including:
    • Accounts of purchases:
      • Ensure on-board purchases are supported by valid vendor invoices.
    • Consumption
    • Advances of cash to Master:
      • The crew cash advances total amount must correspond with the total amount stated in the vessel’s wages message, and as shown in the payroll deductions.
  2. Make sure that the beginning balance of the current ADM 10 – Vessel’s Cash Account matches prior report’s ending balance.
  3. Company supplies all cash to the Master in USD.

    4. Note:

    If cash is supplied in a different currency, the amounts received, paid in foreign currencies, must be incorporated into the cash statement at the same exchange rate relative to USD in order to avoid differences due to fluctuations of the exchange rates.

  4. Prepare form ADM 10 – Vessel’s Cash Account:
    • At the end of each month or as agreed deadline
    • Change of command
    • Change of management
  5. Send ADM 10 to Crew Department’s email address together with supporting vouchers, receipts etc.

Caution:

Send to office within the deadline stated but not later than the 5th of the following month.

Note:

A copy must be retained permanently onboard.

2.8.2 Payment of Wages

It is Company policy that all crew members shall be paid for their work regularly and in full, without any deductions.

Send one copy each of ADM 13 and ADM 14 to the office for food or potable drinking water provided onboard, at no greater than monthly intervals and in accordance with any applicable Collective Agreement (or the standard Conditions of Service). Bottled water is excluded unless the ships supply runs out or is contaminated.

Depending on the terms and conditions of employment, two distinct methods of payment apply:

Note:

Charges related to the payment of wages into the seafarers nominated bank account will be borne by the Shipowner.

Note:

The prevailing market rate or the exchange rate provided by the company will be used where payment has been made in a currency or at a rate different from the one to which agreed. The exchange rates provided by the company are updated each month from the Financial Times or similar source.

Note:

Instructions and guidelines for the wages administration and payment of the Offices and Crew will be sent onboard directly from the relevant Crew Management Office.

Note:

If the off-signing seafarer is Master, the embarking Master will settle the sign-off cash advances or final wage account of disembarking Master based on the final wage confirmed to Crew Payroll. This will form part of the hand-over being done by off-signing Master.

Excess Overtime

Overtime is to be claimed in half hours on vessels where it is applicable. Time claimed shall be rounded up to the nearest half hour. Master shall seek approval of additional overtime hours and shall seek approval of additional overtime hours from the Technical Superintendent and must attach approval when sending to Finance department for inclusion in the wage account.

Note:

For example; 4.9 hours to 5.0 or 7.1 hours to 7.5.

MLC Amendments - Changes required to SEA's clauses

2018 amendments to MLC, 2006 enter into force on 26 December, 2020. Owners, Operators, and Masters must ensure on and after 26th December, 2020 that:

  1. Seafarers’ employment agreements continue to have effect while a seafarer is held captive on or off the ship as a result of acts of piracy or armed robbery against ships, regardless of whether the date fixed for its expiry has passed or either party has given notice to suspend or terminate it;
  2. Wages and other entitlements under the seafarers’ employment agreement, relevant collective bargaining agreement or applicable national laws, including the remittance of any allotments to be continued to be paid during the entire period of captivity and until the seafarer is released and duly repatriated in accordance with Standard A2.5.1 or, where the seafarer dies while in captivity, until the date of death as determined in accordance with applicable national laws or regulations.

Note:

Please note that shortly after the ILO deliberations which approved this amendment in June 2018, the IBF CBAs which came into force on 1st January 2019, were examined for compliance with this requirement.

2.8.3 Allotments and Extra Allotments

Allotment is a portion of a salary of the crew at the time of employment, to allot, if they so desire, a proportion of their wages for remittance at regular intervals to their families by bank transfers or similar means.

The contract of employment will specify the amount of an allotment, and when the first allotment is to be deducted. Any crew member may cancel this in the month of signing off.

Any crew member requiring an extra allotment must advise the Master.

Extra Allotments Process

The Master is responsible for this process.

  1. Ensure crew member has sufficient credit onboard.
  2. Inform the office including:

Note:

Any crew member may cancel their allotment in the month of signing off.

2.8.4 Canteen Account (If Applicable)

The Master is not allowed to carry an inventory of more than 1,000 USD bonded canteen onboard. Depending on the vessel's trade, at the Master's discretion, the canteen quantity can be minimized. Items not normally used by the majority of the crew are not to be bought.

A monthly Canteen Account Form ADM 12 – Vessel’s Slop Chest Account form must be completed in duplicate, and the original, together with supporting vouchers for purchases and an inventory listing, must be sent to the Office. A copy must be retained in the Master’s files.

The amount of crewmembers' private consumption stated in the Canteen Account must correspond to the amount of canteen deducted in the monthly payroll sheet.

A canteen price list, in USD, is to be posted in a conspicuous position and kept up to date.

Note:

A copy of the completed Canteen Account Form must be retained in the Master’s files.

Caution:

The Master is not allowed to carry an inventory of more than 1,000 USD bonded canteen onboard. Please ensure compliance with this regulation to avoid discrepancies.

2.8.5 Catering Handled by the Master (If Applicable)

Responsibility

The Master is responsible to the Owners for compliance with these food instructions. He is to act under any ship-specific instructions from the Ship Management Office.

Catering Handled by Master Process

The Master is responsible for this process.

  1. Ensure food is:

Note:

Give consideration to the crew’s religious requirements and cultural practices when planning the food provisions.

Note:

"Food" must include tea/coffee/juices but exclude other non-alcoholic drinks such as Pepsi-Cola, etc.

Caution:

The value of the Provisions Stock onboard must not exceed US$ 10,000 or 3 months’ stock, whichever is the greater.

  1. Catering provisions budget runs quarterly. Vessel is supposed to be equipped with 2 months of provisions, and fresh provisions are to be provided every 25 days.
  2. Master receives various quotes from ship chandlers via agent and forwards them to the Company. The Company decides on the selection of Ship Chandler, and the value of the order is settled by the agent and charged to the vessel’s PDA.

Note:

Amount must correspond to the amount shown on the food account.

Sign and attach a copy of all chandlers’ invoices to the food account.

Monthly and Change of Command Reports

Complete the following reports monthly and upon change of command:

  1. Detailed physical food stock listing priced in US$. This stock is to include all food received.

    2. Note:

    This stock listing must include all food received.

  2. Vessel Victualling Account Form ADM 11.

    3. Note:

    Extra meals on Charterer’s account should be included in the report.

2.8.6 Feeding Rate

The food stock is the property of the Owners, and is under the direct responsibility of the Master.

Warning:

Neither the Master nor other ship’s colleagues are entitled to receive commissions, nor other forms of rewards.

Feeding Rate Process

The Master is responsible for this process.

  1. Include in the calculations:
  2. Show meals provided on charterer's account separately:
  3. If the ship is feeding above or substantially below the Standard Rate:

2.8.7 The Company Catering (If Applicable)

This process is not applicable.

2.8.8 Cash

The Company will supply cash in USD.

As a guideline, Masters should avoid receipt of cash in one of the following continents/countries below:

Exchange Rates

The Management Office will supply the exchange rates for the cash account.

Note:

For cash requests under the minimum of USD$500 or equivalent, apply the exchange rate given by the agents, if not provided by the Company.

Cash On Board / Cash to Master Process

The Master is responsible for this process.

  1. Cash to Master request should be at least 10 days before estimated time of arrival (ETA) to a port. Initial message of CTM request should include the following:
  2. Request cash at least 10 days in advance including:

Warning:

Cash carried in the ship’s safe is not to exceed USD 10,000 or equivalent or other pre-set limit as advised by management office at any time. If circumstances require that larger sums be carried, then authorization is to be sought from the Finance Manager.

Note:

Encourage crew members to remit funds to a nominated bank account in order to reduce cash requirements to a minimum.

Further Steps

  1. Request authorization from Finance Manager for amount larger than $10,000.

    2. Warning:

    Do not arrange cash deliveries on open channels e.g. VHF.

  2. If arranging for cash to be delivered onboard, use secure means.
  3. Check total cash delivered before signing receipt:
  4. Pay cash advances to the crew immediately.

Warning:

Do not retain cash belonging to crew in the ship’s safe.

Send confirmation of receipt of CTM to Finance Manager.

Note:

CTM requests should be reflected in Vessel Cash Statement on the month CTM has been arranged.

2.8.9 Change of Command

At any change of command, the incoming and outgoing Masters are to agree and sign for cash on board, canteen, and provisions.

At change of command, the outgoing Master must advise the new Master of the safe combination and enter in the protocol that this information has been passed on. The Management Office will keep a record of each ship's safe combination.

Change of Command Process

The outgoing Master is responsible for this process.

  1. Agree and sign off on the following totals with the incoming Master:
  2. Advise incoming Master of safe combination

Note:

Management Office keeps a record of each ship's safe combination.

2.8.10 Control of Port Disbursements

Hotel Charges

As far as practicable:

Shore Launches

At the Master's discretion, a shore launch may be arranged to allow crew members to go ashore. The Master should consider the following:

Control of Port Disbursement Process

The Master is responsible for this process.

  1. Maintain control of services provided to the vessel

    2. Warning:

    If cost control is not exercised by the Master, disciplinary action may be taken by the Company.

  2. Inform Technical Superintendent of any unusual costs incurred
  3. Obtain breakdown of services provided to individual crew, including personal calls
  4. If necessary to accommodate crew members ashore at crew changes:

    5. Note:

    Agent to instruct hotel that charges for alcohol, telephone calls, newspapers, etc., are to be settled by the individual crew members.

  5. If shore launch is required:
  6. If medical treatment is required that may result in a claim:

Warning:

Access to essential medical treatment ashore should never be denied to a crew member.