Resource | Policy Memos | FD-049
Substitution and Valuation of USDA Cheese

In November 2005, the Food and Nutrition Service (FNS) issued Policy Memorandum FD-049 to assist school food authorities (SFAs) in providing healthier options and a wider variety of cheese products for students. The policy memorandum permits processors to substitute cheese donated by the Department of Agriculture (i.e., USDA cheese) with other varieties of cheese produced for the commercial market. The policy memorandum also allows processors to commingle USDA cheese varieties eligible for substitution into a single book inventory for each State agency, and establishes a single value for all such varieties, based on the 33-month average price for cheese from the Chicago Mercantile Exchange. 

Resource | Policy Memos | FD-127
Approval of End Products and Monitoring of End Product Sales

The purpose of this policy memorandum is to clarify a state distributing agency's (SDA) responsibilities regarding (1) the approval of end products for processing; and(2)monitoring of sales of such end products to school food authorities (SF A) in the National School Lunch Program (NSLP) by reviewing a processor's monthly performance report. Further guidance in monitoring a processor's USDA Food inventory is included in Policy Memoranda FD-064 and FD-122. These two memoranda relate specifically to reducing a processor's excessive inventory and tracking negative inventories.

Resource | Policy Memos | FD-125
Offering School Food Authorities the Required Value and Variety of USDA Foods, and Efficient and Cost-Effective Distribution

The purpose of this policy memorandum is to provide direction and guidance to State distributing agencies (SDAs) in order to ensure compliance with legislative and regulatory requirements, and to make certain that all school food authorities (SF As) receive their planned assistance level and maximize their use of USDA Foods to meet the nutrition standards in the National School Lunch Program (NSLP).

Resource | Policy Memos | FD-126
Review of Administrative Funds Provided to Eligible Recipient Agencies (ERA) in TEFAP

Policy Memorandum FD-126 provides clarification on 7 CFR 251.10(e)(2)(i). This memorandum outlines the method state agencies should use to monitor Eligible Recipient Agencies' expenditures of TEFAP administrative funds.  

Resource | Policy Memos | FD-122
Substitution of Donated Foods in Advance of Purchase and Negative Inventories

In accordance with 7 CFR 250.30(1), a processor may. in most cases, substitute Department of Agriculture (USDA) donated foods with commercially purchased foods of U.S. origin, and of equal or better quality in all USDA purchase specifications than the donated food. The substitution option permits processors to conduct their business efficiently and provide finished end products to school food authorities (SFAs) and other recipient agencies in a timely manner. Substitution of donated foods usually occurs after USDA purchase and delivery of the donated food to the processor, or after USDA purchase but before actual receipt of the donated food shipment In either case, the processor may sell commercial products or finished end products to any of its customers, while passing through the value of the donated food to SFAs.