This memorandum provides guidance to state distributing agencies and recipient agencies on the use of market basket analysis in procuring processed end products for USDA Foods in Schools and commercial goods for the National School Lunch Program, School Breakfast Program, Summer Food Service Program, and Child and Adult Care Food Program.
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.
This memorandum clarifies how school food authorities may use funds provided under Sections 4 and 11 or 19 of the National School Lunch Act to purchase fresh fruits and vegetables from DoD Fresh Fruit and Vegetable Program vendors.
Today’s unpredictable economy has made it important to consider accounting for the fluctuating costs of goods and services that are beyond the control of either the school food authority or the vendor.