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.
As a result of the recently enacted Deficit Reduction Act of 2005 there is a requirement that a Medicaid client present documentary evidence of citizenship. The provision does not expand or restrict eligibility for Medicaid, but simply imposes the requirement that a Medicaid client present documentary evidence of citizenship.
The purpose of this memorandum is to clarify the required frequency of physical inventories, per the recently revised program regulations at 7 CFR Part 247.
This memorandum provides guidance on how to reconcile physical and book inventories as part of the required annual physical inventory of distributing agency and sub-distributing agency storage facilities, and provides guidance on offsetting inventory shortages and overages that are identified during the reconciliation process.