Food Distribution Division

NCDA&CS Food Distribution
Redistribution of USDA Foods Processing Pounds Policy

The purpose of this policy is to eliminate in excess of six months of inventory sitting with a manufacturer as well as districts not utilizing pounds within a timely manner.

Policy:

On the 15th day in July all pounds sitting in a districts account will be transferred to the state. Unallocated pounds will be added to Tysha’s List; this is an ordering tool created to inform districts of the raw pounds available in the state account for processing USDA commodities. These pounds will remain with the state until one of the following occurs:

1. District wants additional pounds.

District sends request to manufacturer.
Manufacturer will review request and forward to the state for approval. State must receive notification from the manufacturer asking for additional pounds on the Recipient Agency’s behalf. The state will assume the manufacturer has reviewed the request and has determined the desired quantity is reasonable and should be used by the end of the current school year or beforehand.
State will approve or deny request.

2. Manufacturer ask to cover failed transactions.

State coverage of failed transactions are not guaranteed. Manufacturers processing a transaction without district availability is at their own risk. Therefore, it is both the manufacturer and recipient agency’s responsibility to make sure there are enough pounds before a transaction takes place.
Due to the timing of the sweep the state is aware that some transactions may not have gone through. Therefore, consideration will be given to cover those failed transactions that occurred. State must give approval however if the request is denied the district must pay commercial price for the items.
Manufacturer should make districts aware they are out of pounds to avoid any future failed transactions.

3. State will use pounds for next school year’s orders.

Any pounds remaining in the state account during the ordering period will be used whenever possible.

4. Pounds are transferred to another state.

Pounds that have been sitting in the state account that aren’t showing any signs of utilization can be transferred to another state. However, both states must approve of the transfer before the transaction takes place.