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Accountability & Expensing of OM&S

Accountability & Expensing of OM&S. The Department’s policy is that OM&S be expensed in the period they are issued to an end user for consumption in normal operations

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Accountability & Expensing of OM&S

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  1. Accountability & Expensing of OM&S • The Department’s policy is that OM&S be expensed in the period they are issued to an end user for consumption in normal operations • An alternative is to use the purchases method, which provides that operating materials and supplies can be expensed when purchased • Use of the purchases method is limited: • operating materials and supplies are not significant amounts, • they are in the hands of the end user for use in normal operations, OR • it is not cost-beneficial to apply the consumption method

  2. Accountability & Expensing of OM&S (cont) • Use of the purchases method would solve at least two challenges • Who is the end user? • Was the OM&S actually consumed by the end user during the accounting period? • Questions for today’s discussion are: • Who is the last purchaser? • When is OM&S no longer included in an accountability system?

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