This policy memorandum is being issued in response to the fiscal year 2013 audit by USDA’s Office of Inspector General, state agencies’ Food Costs for the FNS WIC Program.
The purpose of this memorandum is to provide guidance on the vendor-related WIC provision reflected in PL 109-97, which provides WIC funding for FY 2006.
FDD has received several complaints recently about dried fruit and grain products that became infested in storage. Therefore, it is imperative that dried fruit and grain products are distributed to the end user as soon as possible after receipt from the vendor to avoid problems with infestation.
This policy memorandum clarifies and updates current policy on price adjustments, vendor, participant, and local agency collections, fines, civil money penalties, and program income to reflect amendments to WIC program legislation and regulations since the issuance of WIC Policy Memorandum #96-3.
This memo, which addresses commodity book inventory reduction at further processors. has been superseded by the July 16, 2021 memo, FD-40: Inventory Drawdown in USDA Foods Processing (Revised).