This memorandum addresses inventory limitations and requirements that USDA Foods processors must follow when manufacturing processed end products for use in child nutrition programs.
The purpose of this policy memorandum is to clarify requirements in the sale of processed end products through a commercial distributor under an "indirect discount" or "hybrid" sales system, in accordance with 7 CFR 250.30(e)(1)(ii), and in a modified form of such sales system previously approved by the Food and Nutrition Service (FNS), in accordance with 7 CFR 250.30(e)(1)(iii).
On July 1, 2006, FNS implemented Policy Memorandum FD-061: Inbound Cheese to Further Processors, in order to alleviate the administrative burden on processors and state distributing agencies (SDAs) in continually reallocating pounds to individual recipient agencies (RAs) based on the variation between the published target truck weight and the actual pounds delivered by the USDA vendor. This policy memorandum revises the original FD-061.
Guidance in Crediting for, and Use of Donated Foods in Contracts with Food Service Management Companies
The purpose of this policy memorandum is to provide guidance in ensuring compliance with requirements in Subpart D of 7 CFR Part 250 with respect to crediting for, and use of donated foods in contracts with food service management companies (FSMCs).
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 is to clarify the appropriate actions a processor must take when errors are discovered on monthly performance reports.
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.