FNS Documents & Resources
The purpose of this policy memorandum is to clarify state distributing agency (SDA) requirements related to approval of end product data schedules (EPDS) and summary end product data schedules (SEPDS) and provide an explanation for the removal of signature blocks from the SEPDS A and B templates.
Policy Memorandum FD-085, Nonfat Dry Milk Processing (dated March 27, 2009) is cancelled.
Minimum Inventory Protection Requirements for Processors Participating in the National Processing Program
FNS is committed to rigorous oversight and controls over USDA Foods processing to ensure that State agencies and school food authorities (SF As) receive the full benefit of the USDA Foods entitled to them, consistent with 7 CFR Part 250. As such, the National Processing Agreement requires that participating processors must furnish to USDA inventory protection in the form of a surety bond, an irrevocable letter of credit, or an escrow account in order to guarantee that the processor will account for, return, or pay for all of the USDA Foods received or carried forward, either as physical or book inventory. The purpose of this memorandum is to inform processors of minimum inventory protection requirements effective beginning in School Year 2014-2015.
Issue: USDA purchases a number of commodities such as cheddar cheese, mozzarella cheese, and turkeys in random weight units. These items can be identified in the Food Distribution Commodity file by the absence of numbers under the heading "average gross pack weight.” or with a “1.00” under the heading "net pack weight."
In this policy memorandum, the USDA's Food and Nutrition Service (FNS), in coordination with the Agricultural Marketing Service (AMS), is conducting a demonstration project in which processors operating an approved Processor Control Certification Program (PCCP) plan are permitted to submit a substitution plan that, if approved, would provide for substitution of USDA beef and pork with commercial beef and pork of U.S. origin, and of equal or better quality in all USDA purchase specifications that the USDA beef and pork.