The purpose of this memorandum is to clarify the required frequency of physical inventories, per the recently revised program regulations at 7 CFR Part 247.
This memorandum provides guidance on how to reconcile physical and book inventories as part of the required annual physical inventory of distributing agency and sub-distributing agency storage facilities, and provides guidance on offsetting inventory shortages and overages that are identified during the reconciliation process.
The recipes from the 1988 Quantity Recipes for School Food Service and the 1995 Tool Kit for Healthy School Meals were revised using updated yields from the Food Buying Guide for Child Nutrition Programs and using the 2005 Food Code for the Hazard Analysis Critical Control Points.
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 has been superseded by the July 16, 2021 memo, FD-40: Inventory Drawdown in USDA Foods Processing (Revised).