State agencies must exercise diligence to ensure that TEFAP food inventories are managed effectively, efficiently, and without waste. The purpose of this policy memorandum is to provide state agencies with the direction and guidance necessary in maintaining proper inventory levels of USDA Foods for TEFAP, including the estimation of monthly utilization rates for new or bonus USDA Foods for which there are no historical usage records.
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.
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.
This memo, which addresses commodity book inventory reduction at further processors. has been superseded by the July 16, 2021 memo, FD-40: Inventory Drawdown in USDA Foods Processing (Revised).