The KANSAS AGING PROJECTS COMMODITY MANUAL (KAPCM)

6000  RECORD KEEPING/REPORTING

Commodities are valuable. The value of each product depends upon the purchase price at the time the Federal government acquires them. Ordinarily the value of goods is consistent with similar products sold on the open market.

Since commodities are valuable, and since federal money has been spent to purchase these foods, accountability for these products is of utmost importance.

USDA requires that states be able to account for all USDA products received through NPE. This accountability begins with the acceptance of commodities by SRS and continues through the time recipients receive the commodities.

In order to assure that adequate accountability for commodities is maintained, it is necessary for certain records to be kept and for certain reports to be completed as follows:

6100  INVENTORY RECORDS - At each level of the distribution process it is necessary to keep adequate inventory records.

6101  SRS - SRS Food Distribution Unit is responsible for establishing and maintaining inventory records for all commodities received by the state and distributed to NPE participating facilities.

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6102  Participating Facilities - Once an NPE Facility signs a Delivery Receipt (See Exhibit B) and takes possession of the commodities, the facility must keep adequate inventory and usage records. These records shall (at a minimum) include:

6102.1 A record of the receipt date and amount of commodities received each time any commodity is given to the Facility through NPE. The Delivery Receipt (Exhibit B) can be used for this purpose.

6102.2 Ongoing inventory records must be maintained for each food item received by the facility. Exhibit E, Inventory of Commodities in Storage, provides an example of the minimum acceptable inventory record which must be maintained. Exhibit E may be used by participating facilities, or facilities may develop their own inventory records as long as the following information is included:

1. Type of food received (i.e., butter, flour, honey),

2. pack size/type container (i.e., 36/1# blocks, 1/50# bag),

3. quantity of food on hand (beginning/ending inventory),

4. quantity of food received,

5. quantity of food used, and

6. any loss that occurred as a result of damage, spoilage and/or products which are unaccounted for.

NOTE: Inventory records must reflect full case quantities. A facility may choose to keep additional records by the individual package unit (i.e., can or bag).

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6200  PARTICIPATION RECORDS - SRS and all facilities are required to maintain accurate and complete participation records. These records document and reflect the activity generated in the implementation of the commodity program.

6201  SRS - SRS Food Distribution Unit is responsible to establish and maintain statewide participation summary records including:

1. Number of facilities participating,

2. total number of all persons served in participating facilities,

3. number of meals served at all NPE participating facilities,

4. other documents and correspondence as specified in Section 6400.

6202  Participating Facilities - Each participating facility shall maintain documents and correspondence as specified in Section 6400.

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6300  REPORTING - Since accountability is important in the administration of the commodity program, USDA requires participating states to monitor the activity of participating facilities. Certain reports are necessary in order to fulfill the monitoring requirements. Accurate information must be received from participating facilities through reports or certification forms, etc. SRS and participating facilities must report as follows:

6301  Food Distribution Unit - Food Distribution Unit shall obtain information as necessary in order to fulfill USDA or SRS reporting requirements.

6302  Participating Facilities - Participating facilities shall be required to supply any reports necessary to fulfill SRS, USDA, or other reporting requirements regarding the operations of the commodity program. At a minimum, facilities must provide:

6302.1 Every year a commodity recertification form will be sent to the facility to update SRS records. Items to keep record of along with the recertification form include, but are not restricted to:

1. update in number of meals served;

2. major changes in policies affecting eligibility to receive commodities; and

3. update of food handling and record keeping policies/procedures.

6302.2 Records of the required annual inventory must be kept on site. A monthly inventory of quantities on hand must also be kept on site. The inventory is used by the Food Distribution Unit and the participating facility to monitor the amount of product on hand. Orders may be limited by the Food Distribution Unit if it appears a facility has an excess inventory of any item ordered. Federal Regulations mandate that inventory quantities of any item cannot exceed a six (6) month supply, and inventory must be taken annually (See 1203.14).

Failure (on the part of the facility) to maintain an inventory report according to SRS instructions will result in the suspension of food orders/deliveries to that facility.

6302.3 Any loss of commodities which exceeds one case or bale must be reported to SRS.

6302.4 Any quantity of commodities that is determined to be unaccounted for (while in the care and responsibility of the facility) must be reported to SRS within three (3) working days from the date of discovery.

6302.5 Any changes (from what is listed on the current application) of 30% or more in the total number of persons served by participating facilities must be reported to SRS within thirty (30) days.

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6400  RECORD RETENTION - USDA requires that ALL records related to the administration, distribution, storage, and receiving of commodities must be retained for a period of three years from the close of the Federal fiscal year to which they apply. Federal fiscal years extend from October 1st of one calendar year through September 30th of the following calendar year.

Records to be kept include, but are not limited, to the following:

1. NPE Commodity Application/Agreement;

2. commodity receipt, inventory, and usage records;

3. all statements, bills, and payment records which pertain to commodities;

4. claim/repayment records (documentation & records regarding claim establishment and collections/repayment activities); and

5. correspondence (any and all letters), reports, and other written information regarding commodities.

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This page was last updated:  02/16/2001 01:33 PM