In school year 2013-14, FNS introduced the unified administrative review and a 3-year review cycle. Since then, FNS has received feedback about the difficulties of the shorter review cycle, both for the state agencies conducting the reviews, and for school food authorities preparing for and responding to reviews.
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.
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.