The purpose of this policy memorandum is to clarify the options available to state distributing agencies or recipient agencies in assigning value to USDA donated foods for audit purposes.
The attached memorandum is Food Distribution Policy Memo FD-110, which clarifies requirements in crediting for, and use of, USDA donated foods in contracts with food service management companies, and provides guidance to ensure compliance with such requirements in the first and final years of such contracts.
The Child Nutrition and WIC Reauthorization Act authorizes FNS to award $9,000,000 in FY 2006 to be used to assist states in implementing mandatory direct certification and other provisions related to certification and verification of students’ eligibility to receive free and reduced price meal benefits in the school nutrition programs.