Information Alert: New Reporting Requirements
Nutrition Services Division Information Alert
To: Food Distribution Program Commodity Processors
Attention: Commodity Manager/Specialist
|Date: August 2010|
|Subject: New Reporting Requirements (Refund Requests)|
|Reference: U.S. Department of Agriculture Policy Memorandum FD-103|
This Information Alert (IA) notifies commodity processors of a change in the requirements for reporting refund requests to the State distributing agency. The U.S. Department of Agriculture (USDA) Policy Memorandum FD-103 instituted this change on February 4, 2010. The memorandum can be read in full on the USDA Web site at http://www.fns.usda.gov/sites/default/files/pmfd103_PROC-WaiverRequirement_Copies_MPR.pdf.
Currently, processors must submit copies of recipient agency requests for refunds, along with monthly performance reports (MPR), to the State distributing agency. With the USDA Policy Memorandum FD-103, that requirement is waived; therefore, processors are no longer required to provide the following to the State distributing agency:
- Copies of recipient agency (or distributor, as applicable) requests for refunds for the value of donated foods in end products
- Documentation of payments to such recipient agencies
In lieu of submitting the above listed documentation, the processor MUST submit to the State distributing agency the following, along with MPRs:
- A list of all recipient agencies requesting refunds
- Check numbers
- Total amounts refunded
- Dates the refunds were issued
This change in requirements will be in effect beginning June 2010 with the submission of the MPRs.
Processors are required to maintain records of all refund requests and payments of refunds in accordance with Title 7, Code of Federal Regulations, Section 250.16(a)(4). Processors using the Net Off Invoice Value Pass Through System are still required to submit sales verification reports to the Commodity Processing Consultants with the June and December MPRs. Sales verification reports verify that a random sample of recipient agencies received the correct amounts of end products at the discounted prices.
If you have questions regarding this IA or need additional guidance, please contact Commodity Processing Consultant Jeanette Lund at 916-324-6150 or firstname.lastname@example.org.