Resource | Policy Memos | FD-137
Alternative Value Pass-Through System Pilot Project under the Department of Defense Fresh (DoD Fresh) Program

The revised policy memo requires supplemental reporting from processors and requires state verification of credits provided by the processor to the SFA. Processors wishing to continue participation in the pilot will have to sign the attached revised NPA amendment to extend their participation in the pilot.

Resource | Policy Memos | FD-134
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.

Resource | Policy Memos | FD-127
Approval of End Products and Monitoring of End Product Sales

The purpose of this policy memorandum is to clarify a state distributing agency's (SDA) responsibilities regarding (1) the approval of end products for processing; and (2) monitoring of sales of such end products to school food authorities (SF A) in the National School Lunch Program (NSLP) by reviewing a processor's monthly performance report.

Resource | Policy Memos | FD-122
Substitution of Donated Foods in Advance of Purchase and Negative Inventories

In accordance with 7 CFR 250.30(1), a processor may. in most cases, substitute Department of Agriculture (USDA) donated foods with commercially purchased foods of U.S. origin, and of equal or better quality in all USDA purchase specifications than the donated food. The substitution option permits processors to conduct their business efficiently and provide finished end products to school food authorities (SFAs) and other recipient agencies in a timely manner.

Resource | Policy Memos | FD-007
Sales of End Products through Commercial Distributors Indirect Discount and Net Off Invoice

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).

Resource | Policy Memos | FD-061
Inbound Cheese to Further Processors (Revised)

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.

Resource | Policy Memos | FD-110; SP05-2011
Further Clarification in Crediting for, and Use of, Donated Foods in Contracts with Food Service Management Companies

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 (FSMCs), and provides guidance to ensure compliance with such requirements in the first and final years of such contracts.

Resource | Policy Memos | FD-054
Monthly Performance Report Correction

FD-054: State Processing - This memorandum is to clarify the appropriate actions a processor must take when errors are discovered on monthly performance reports.

Resource | Policy Memos | FD-040
Commodity Inventory Reduction at Further Processors

This policy memo addresses commodity book inventory reduction at further processors. 

Resource | Policy Memos | FD-039
Bonding in National Master Processing Agreements

Beginning in 2000, the Department of Agriculture (USDA) began conducting a demonstration project, known as the National Master Processing Agreements (NMPA), under which USDA Food and Nutrition Service arranges for national processing of federally donated foods (DF).