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 policy memorandum consolidates requirements for the SDA when reporting the distribution of donated foods, and when requesting the replacement of such foods, in disasters, emergencies and situations of distress.
This memorandum clarifies the requirements and options for school food authorities acting as a collective unit in performing activities relating to donated foods. It also clarifies the requirements for the distributing agency with respect to such SFAs.
Please note that on May 14, 2007, FNS issued the attached Federal Register notice announcing a correction in the national average value of donated foods or, where applicable, cash in lieu of donated foods for school year 2007, which began on July 1, 2006 and runs through June 30, 2007.