4000 Record Keeping/Reporting

USDA-donated 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 products received through TEFAP. This accountability begins with the acceptance of commodities by the state and continues through the time recipients receive the commodities.

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

4100 Inventory Records

At each level of the distribution process, it is necessary to keep adequate inventory records.

4101 SRS - The Food Distribution Unit is responsible for establishing and maintaining inventory records for all commodities received by the state and distributed to TEFAP participating organizations.

4102 Participating Organizations - Once a TEFAP participating organization has signed a manifest and takes possession of the commodities, the organization must keep adequate records. These records must (at a minimum) include:

4102.1 A record of the receipt date and amount of commodities received each time a commodity is given to the organization through the TEFAP program. This includes TEFAP products transferred from or through other agencies.

4102.2 An on-going inventory record showing the amount of products distributed and the amount on hand at any time.

The signed Declaratory Statement forms may be used to acquire distribution amounts. An inventory record column has been incorporated in the sample Declaratory Statement form (See Exhibit E).

4102.3 Any loss that occurs as a result of damage, spoilage and/or unaccounted for products must also be shown on the inventory records. See Section 3300 for the proper disposition of unuseable food and Section 5000 for actions regarding food which is unaccounted for.

NOTE: The total sum of commodities distributed to needy persons, plus the total commodities on hand, plus the commodities lost must be accounted for in agency records and always equal the total number of cases received by the participating organization.