Help for Schedule C3 - Expenditures School Food Service Programs

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School Districts Accounting and Reporting Manual

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(ENTRY 6) 2860.41

Net cost of food used reflects beginning inventory plus purchases minus ending inventory as defined below.


a.Food Purchases (Total) - Calculate the total dollar figure expended on food purchases only. Do not include Donated (Surplus) Foods received. This figure should reflect both expenditures and any outstanding obligations owed.

b.Plus Beginning Purchased Inventory - Calculate the dollar value of purchased food on hand at the beginning of the school year. Do not include any Donated (Surplus) Food received in this figure. This figure should equal the ending inventory (for Purchased food only) at the close of the prior school year.

c.Warehousing - This figure should be restricted to the once-a-year charge by the Bureau of Donated Foods (usually deducted from the March claim(s) for reimbursement) for the storage of Government Donated (Surplus) Foods. Do not include local storage charges for food in this item. Those charges should be included under C2860.4-Other.

d.Plus Surplus (Donated) Food Used - Calculate this figure by taking the dollar value of the beginning inventory for Government Donated (Surplus) Foods Only. Add the Value of Government Donated Foods Received during the school year and deduct the value of the ending inventory for Government Donated (Surplus) Food Only.

e.Less Rebates Received - Rebates are being treated as an adjustment to expenditures. Calculate the dollar value of all rebates received on a school year basis from food distributors, brokers, or manufacturers as related to processed government donated commodities. Do not use the value of any rebates not yet received. Rebates received on expenditures made prior to the current school year are not recorded here. Record these as revenue under C2770 Miscellaneous Revenues from Local Sources.

f.Less Ending Purchased Inventory - Calculate the dollar value of Purchased Food only on hand at the close of the school year. Do not include any Donated (Surplus) Food Received.

g.Net Cost of Food Used - Net cost of Food used is calculated by adding a, b, c, d and subtracting e and f.



(ENTRY 19) CT9999.0

This item is moved to Statement C1, line 7.