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Claim for Losses of USDA Foods in the CSFP


Nutrition Services Division Management Bulletin

Purpose: Policy

To: Commodity Supplemental Food Program Local Agencies

Number: NSD-CSFP-02-2013

Attention: Commodity Supplemental Food Program Administrator

Date: July 2013

Subject: Claim for Losses of U.S. Department of Agriculture Foods in the Commodity Supplemental Food Program

Reference: Food and Nutrition Service Instruction 410-1 Rev 2, Section VI and Title 7, Code of Federal Regulations, Section 247.29(b)(2)

This Management Bulletin (MB) clarifies the procedures for accurately reporting losses of U.S. Department of Agriculture (USDA) Foods in the Commodity Supplemental Food Program (CSFP) using the Food and Nutrition Service 153 Monthly Inventory Report (FNS 153), and the CSFP Foods Loss Report form (CSFP 002).

In accordance with the Food and Nutrition Service Instruction 410-1, Rev 2, USDA Foods losses are donated foods that are no longer fit for human consumption as a result of spoilage, contamination, infestation, or damage, and therefore cannot be utilized in a monthly food package.

This MB also establishes the procedures that the California Department of Education (CDE) will use to determine if the Local Agency (LA) will be financially responsible for the USDA Foods loss.

Types of USDA Foods Losses

As determined by the CDE, a USDA Foods loss can be categorized as either:

  • A cumulative loss of different types of USDA Foods with a collective value of over $500, as reported on the FNS 153
  • An individual immediate loss of one type of USDA Foods with a total value of over $500, to be reported on the monthly FNS 153 and form CSFP 002
Reporting USDA Foods Losses

The FNS 153 is a report used to track inventory of USDA donated foods on a monthly basis. According to Title 7, Code of Federal Regulations, Section 247.29(b)(2), LAs must report all USDA Foods losses on the FNS 153 monthly inventory report.

Form CSFP 002 is used to gather pertinent information regarding the cause of a USDA Foods loss. The CDE requires LAs to submit this report for all individual immediate losses with a total value of over $500, or as needed to determine financial responsibility of a USDA Foods loss. Form CSFP 002 can be found on the CDE CSFP Web page at http://www.cde.ca.gov/ls/nu/fd/csfp.asp.

As determined by the CDE, a USDA Foods loss is to be reported as follows:

  • All cumulative losses must be reported to the CDE on the FNS 153 in concurrence with the regular reporting structure. The cumulative losses on the FNS 153 should account for any food loss within that reporting period.
  • All individual immediate losses of USDA Foods with a total value of more than $500 must be reported to the CDE within 48 hours of the loss by submitting the form CSFP 002. The USDA Foods loss reported on form CSFP 002 must also be reported on the FNS 153 for the month the loss occurred.

All USDA Foods losses listed in column “M” on the FNS 153 must include a reason as to why the loss occurred.

In column “S” of the FNS 153, please enter the appropriate Loss Code below to explain the reason for the loss.

LOSS CODE

EXPLANATION

1

Loss caused by warehouse damage

1(a)

Loss during package assembly

1(b)

Loss caused by equipment (i.e. fork-lift or pallet jack)

2

Loss caused by food spoilage

3

Loss caused by food expiration

4

Loss due to known theft

5

Unaccounted inventory (to be explained in detail on FNS 153 report attachment)

6

Other Loss (to be explained in detail on FNS 153 report attachment)

Financial Responsibility for USDA Foods Losses

In the event that individual or cumulative USDA Foods losses are reported, the CDE will use the following procedures to determine if the LA will be held financially responsible. The CDE will:

  • Investigate the loss within 30 days of being notified
  • Verify the value of the USDA Foods loss
  • Determine if there is a responsible party
  • Coordinate with the USDA’s Western Region Office (if applicable)

If the LA’s neglect, carelessness, and/or willful mishandling cause damage to or loss of USDA Foods, or if USDA Foods are used or distributed improperly, the LA may be held liable for the loss.

If the CDE determines that the LA is liable for the loss, the CDE will seek reimbursement for the loss in one of the following three ways:

  • Payment to the CDE for the fair market value of the loss
  • Deduct the fair market value of USDA Foods loss from the LA’s monthly/quarterly reimbursement claim
  • Require the LA to replace the USDA Foods with a like product, of equal or better value, utilizing the commercial market, at the expense of the LA
Preventing Losses of USDA Foods

The CDE recommends LAs take the following steps to prevent loss of USDA Foods:

  • Examine incoming shipments for potential tampering
  • Monitor loading and unloading of trucks carrying USDA Foods
  • Perform periodic examinations of stored inventory for potential tampering
  • Restrict access to storage areas
  • Train staff/volunteers on how to minimize damage when building CSFP food packages
  • Practice stock rotation (first in, first out)
  • Verify that the security seals on inbound USDA Foods shipments are intact

The CSFP USDA Foods Loss Report Form (CSFP 002) is available on the CDE CSFP Web page at http://www.cde.ca.gov/ls/nu/fd/csfp.asp.

If you have any questions regarding this MB, please contact Irene Boubalos, CSFP Coordinator, by phone at 916‑323-7181 or by e-mail at iboubalos@cde.ca.gov.

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Monday, March 14, 2016

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