The purpose of this instruction is to establish the general standards and procedures that the state distributing agency must follow in order to ensure that restitution is made for the loss of donated foods, or for the loss or improper use of funds provided for, or accruing from, the distribution of donated foods.
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.
This rule makes administrative corrections to a final rule published in the Federal Register on Oct. 8, 2009, entitled "Special Supplemental Nutrition Program for Women, Infants and Children (WIC): Vendor Cost Containment.''
The purpose of the study was to learn the extent to which retail grocers, defined as "vendors" in the WIC Program, authorized to provide food to WIC participants, were violating program rules and procedures, and to determine which programmatic and/or demographic variables could be associated with vendor violations.