Annual Physical Inventory-Reconciliation of Book Inventory to Physical Inventory
This memorandum provides instructions on how to reconcile the physical inventory conducted at a distributing agency- or subdistributing agency-level storage facility with the book inventory required to be maintained for that facility. This memorandum does not provide instructions on how to conduct the physical inventory, and presumes that the physical inventory is proper and complete. This memorandum also does not provide instructions on how to maintain the book inventory for the storage facility, and presumes that the proper controls are in place.
The Food Distribution regulations require an annual physical inventory be conducted at all storage facilities at the distributing agency or subdistributing agency level. The regulations also require that complete inventory records be maintained by all such storage facilities. When the required physical inventory is completed, the book inventory must be reconciled to the physical inventory. The following is a method that can be used to reconcile: