The statutory and budgetary considerations in connection with the employment of personnel and rates of compensation have been described in Subpart 1640-9. See also paragraph (5) of subdivision (c) of section 1642-2.4. The procedure, in general outline, is to prepare the payroll on the basis of attendance reports, and to distribute the payrolls over the cost and expense accounts, in accordance with the account definitions, on the basis of a payroll summary analysis (see Exhibit 32, Appendix S-8) prepared from daily time reports and summaries thereof.