GENERAL - 10900

(Reviewed: 03/1974)

Farming and processing operations are conducted at institutions to (1) produce commodities at less than market prices and (2) provide healthful and beneficial employment for inmates.

Procedures contained in SAM Sections 10900–10999 are to be used only by those institutions with farming and processing units that are financed by the General Fund.

Instead of keeping separate Allotment-Expenditure Ledger cards for each farming and processing unit, institutions may maintain allotments as follows:

 

Salaries and Wages	Quarterly for all units combined
Operating Expenses	Annual for all units combined
Equipment	Annual for all units combined

If this procedure is followed:

1. Data will be reported for all units combined on Monthly Budget Report, Std. Form 584.
2. Expenditure postings to the Allotment-Expenditure Ledger will be coded to permit reporting these expenditures by farming or processing unit on the Report of Farming Operations, Form BD–59. (See SAM Section 10990.) Also, the value of (1) purchased stores and produced stores issued to each farming or processing unit and (2) the local production of each farming and processing unit will be reported in this report. Forms BD–59 can be obtained by contacting the Budget Division, Department of Finance.

Department of Finance approval is not required to transfer between operating expense allotments of farming and processing units.

The accounts for farming and processing operations are maintained to (1) furnish information as to the value of products and direct costs of production, (2) provide a custody control over the commodities produced and (3) account for the use of the commodities as an element of the cost of operating the institution.