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Software lets elevator operators self-inventory

By TIM ALEXANDER
Illinois Correspondent

SPRINGFIELD, Ill. — A pilot program that allows elevators to conduct their own monthly grain inventories is up and running on a voluntary basis and will likely become mandatory sometime in 2010, according to Stuart Selinger, chief of warehouses for the Illinois Department of Agriculture (IDOA).

The Grain Inventory Accountability Pilot Program – which is being utilized by some 50 Illinois elevators so far – is intended to produce a more accurate accounting of both the quality and quantity of stored grain.

“The majority of our licensees are already doing some kind of inventory on a regular basis, but this program makes the inventory process uniform statewide,” Selinger said.

“With this program, rather than having two inventories per year – one being the IDOA inventory and the other being the inventory performed by their CPAs at their fiscal year’s end – (operators) are going to have 12 or 13 data points to monitor not only their grain’s quantity, but quality. It provides them with a powerful tool.”

A close cousin of the software used for the program, called ExamNet, is being used to conduct grain inventories in about a dozen other states. IDOA’s program is unique, said Selinger, because it encompasses 20 years of hands-on experience amassed by the Bureau of Warehouses.

“All the expertise our examination staff has garnered over the years is built into this program,” Selinger said.

Three-hundred-twenty companies operate 1,042 elevators across Illinois with a total capacity of 1.286 billion bushels, exemplifying the need for uniform inventory measures to help determine the value of Illinois grain.

“That’s a lot of inventory for (IDOA) to track, and we believe a self-inventory program is a best-management practice for the industry,” Selinger explained.

Reaction to the new software has been mostly positive, he said, though some elevator operators have been hesitant to embrace change. The program is still in its development stage, and operators using it on a voluntary basis are encouraged to report any problems they encounter while entering measurements in the software program and maintaining a monthly inventory archive.
“Most (operators) have found the program is not nearly as taxing as they thought it would be,” Selinger said. “A bonus is that the program greatly reduces the need for individuals to have to enter the bins to measure the angles of repose, because the software takes care of that.

“There is a great benefit to the industry from a safety perspective.”
He was quick to point out the IDOA’s Bureau of Warehouses is not getting out of the grain inspection and inventory business.
“Everyone is still subject to our inventory anytime we choose to do so, but we are moving towards the monthly self-inventory.
“We will (occasionally) test their self-inventory to make sure they are doing it accurately,” he cautioned.

Meantime, the IDOA is conducting full inventory exams at elevators not enrolled in the program, as well as random spot checks at self-examining elevators to ensure the accuracy of their inventories.
For more information about the program, contact Selinger at 217-782-2172. Enrollment in the program and the ExamNet software is free of charge to licensed grain elevators.

10/14/2009