FNS Documents & Resources

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 has been superseded by the July 16, 2021 memo, FD-40: Inventory Drawdown in USDA Foods Processing (Revised).

The purpose of this memorandum is to clarify the recent regulatory changes, and to provide interim guidance for taking additional actions in advance of further regulatory amendments. 

State agencies apply for reimbursement using Form FSA-21, submitted to the appropriate FNS regional office for approval.