Resource | Policy Memos | FD-023
Accounting for Donated Foods in Cost-Reimbursable Contracts Between School Food Authorities and Food Service Management Companies

Federal regulations implementing the Department’s domestic commodity donation program at 7 CFR 250.12(d), allow school food authorities (SFAs) and other recipient agencies to contract with food service management companies (FSMCs) to conduct their food service operations.  In contracting with an FSMC, the recipient agency must ensure that the full value of donated foods is used to its benefit.