Accounting Procedures Handbook

CAFETERIA INVENTORY 16.2 FOOD SERVICE FUND I. OVERVIEW The Food Service Department is responsible for maintaining accurate inventory records for all Commodities provided by the USDA. These commodities consist of items such as cheese, poultry, beef, pork, fruits and vegetables. The Board does not have to purchase these items but they must report the dollar value of commodities received and used. These commodities are currently stored at the Lankford/Sysco warehouse in Pocomoke, MD and PFG/Carroll County Foods in New Windsor, MD. Commodities are ordered using the Electronic Commodity Ordering System. The procedures for using this system are outlined in the ECOS manual. II. CONTROL OBJECTIVES • To ensure USDA Commodities are reported in accordance with generally accepted accounting principles. • To ensure that all commodities are properly received and stored. • To ensure compliance with applicable laws and regulations. III. PROCEDURES • Food Service Field Manager prepares spreadsheet weekly showing order of Commodity product. This shows item and quantity to be ordered by site from each warehouse. • Food Service Accounting Associate creates orders in BusinessPlus Stores Inventory. • Accounting Associate fills orders on date of delivery for orders entered in Stores Inventory. • When invoices are received from Cafeteria Managers, the product received is checked against product ordered and filled. Any adjustments are noted by Accounting Associate. • The warehouses send Commodity inventories each week usually on Thursday. These are compared to Stores Inventory totals. Adjustments from invoices are noted by Accounting Associate. • The inventory received for the last Thursday of the month is reviewed and adjustments noted by Accounting Associate. It is signed by Food Service Director and forwarded to Finance. • At the end of the fiscal year, commodity balances on the Inventory History report must match the balances on the Commodity Product Review form closest to the June 30th year end date.