The supervision and engineering includible in the operating expense accounts must consist of the pay and expenses of superintendents, engineers, clerks, other employees and consultants engaged in supervising and directing the operation and maintenance of each service company function. Wherever allocations are necessary in order to arrive at the amount to be included in any account, the method and basis of allocation must be reflected by underlying records.

This account must include the following labor items:

Special tests to determine efficiency of equipment operation.

Preparing or reviewing budgets, estimates, and drawings relating to operation or maintenance for departmental approval.

Preparing instructions for operations and maintenance activities.

Reviewing and analyzing operating results.

Establishing organizational setup of departments and executing related changes.

Formulating and reviewing routines of departments and executing related changes.

General training and instruction of employees by supervisors whose pay is chargeable to the training and instruction. Specific instruction and training in a particular type of work is chargeable to the appropriate functional expense account (See Service Company Property in § 367.51(a)(19)).

Secretarial work for supervisory personnel, but not general clerical and stenographic work chargeable to other accounts.

This account must include the following expense items:

Consultants' fees and expenses.

Meals, traveling and incidental expenses.