Food Distribution Division
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:Every 15th day in July all pounds sitting in a districts account will be transferred to the state. These pounds will sit with the state until one of the following occurs:
- District ask to receive additional pounds.
- State must receive notification from the manufacturer asking for additional pounds on the Recipient Agency’s behalf. The manufacturer should have actual documentation from the Recipient Agency regarding orders before sending a request. Pounds should be used within a timely manner.
- 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 for the month of July to cover those failed transactions that occurred in the month of June. State must give approval.
- Manufacturer must notify and get approval from the state in hopes to cover any failed transaction. If the approval is denied the district must pay commercial price for the items therefore;
- Manufacturer should make districts aware that they are out of pounds to avoid any failed transactions.
- 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.
- 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.