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Standard Processor Inventory Reconciliation Policy

Nutrition Services Division Management Bulletin

Purpose: Policy/Beneficial Information

To: Food Distribution Program Recipient Agencies and Processors

Attention: Program Operators

Number: FDP-02-2023

Date: August 7, 2023

Subject: Return to Standard Annual Processor Inventory Reconciliation

This management bulletin (MB) supersedes MBs FDP-01-2021 Processor Inventory Reconciliation Modification for School Year 2020–21 and MB FDP-02-2022 Annual Inventory Reconciliation (Sweep) Update and Change to Process and provides information and guidance to the October Processor Inventory Reconciliation (Sweeps) Policy established in MB FDP-05-2011, Carry-over Inventory at U.S. Department of Agriculture (USDA) Foods Processors. These MBs can be found on the California Department of Education (CDE) Food Distribution Program (FDP) MB web page at

Due to the Coronavirus pandemic and supply chain disruptions to the School Nutrition Programs (SNP), the Nutrition Services Division implemented temporary modifications to the FDP Sweeps policy in school year (SY) 2020–21 and SY 2022–23. With the end of the public health emergency, and nationwide SNP and FDP waivers, the CDE will resume the standard Sweep policy and process in October 2023, when carryover balances from SY 2022–23 are assessed. New allocations for SY 2023–24 are not affected.


As part of the standard Sweeps process, each processor submits a list to CDE at the end of the school year containing the balances of USDA Foods remaining in their respective Recipient Agency (RA) accounts. These pounds are defined as carryover inventory and, each RA has four additional months from July 1 through October 31, annually, to use all remaining carry-over pounds. Any unused carry-over pounds remaining after October 31, annually, are transferred into each processor’s California Excess Account (CAE) and are made available to all RAs on a first come-first serve basis.

If an RA wishes to request pounds from the CAE, a transfer request must be submitted through the appropriate processor and may require a justification such as a completed processor commodity calculator or identified plan of usage.

If an extenuating circumstance, including but not limited to a recall, school closure, natural disaster, and catastrophic event, occurred during the school year that prevented proper usage of inventory, RAs may work with their processor to request approval from the FDP to retain inventory past October 31. Each request will be assessed independently. Requests to retain carry-over inventory must be submitted by the appropriate processor on behalf of the RA prior to October 31, annually.

Recipient agencies participating in the processing program are encouraged to monitor their inventory usage and balances throughout the school year and especially in preparation for the Sweeps process. This may be accomplished by working directly with your partner processors or by contacting your FDP Order Coordinator or

Contact Information

If you have any questions regarding this subject, please contact the Food Distribution Program by email at

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Wednesday, August 16, 2023
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