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 and in a modified form of such sales system previously approved by FNS.
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.
This memorandum is to clarify the appropriate actions a processor must take when errors are discovered on monthly performance reports.