State of Montana, Eastmont Human Services Center Examination of Financial Statements : Fiscal Years Ended June 30, 1981 And 1982 : Report to the Legislature 1982
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The business manager and the clerk assigned to account for fixed asset transactions should be trained in the methods of accounting for fixed assets which are recognized by generally accepted accounting principles. D. Review and evaluate the possiblity of utilizing the PAMS system available from the State of Montana. INVENTORIES The Center maintains inventories of food and maintenance supplies. Physical inventories are taken monthly of food stores, and annually of maintenance supplies. A monthly... usage report of food is generated based on purchases and the change in inventory for the month. The usage report is reviewed to control food quantities consumed each month. A perpetual inventory system is utilized for the maintenance supplies with actual purchases and issues from inventory reported to a clerk responsible for updating the perpetual records. The annual physical inventory is taken on June 30. Our review of controls and accounting practices for inventories revealed that the major portion of inventory, food stores, has adequate controls, but for convenience, some controls are occasionally circumvented.
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