Private Cooperatives as Single Entities

This Management Bulletin establishes each privately managed cooperative (co-op) as a single entity for the purposes of accountability for and reporting of U.S. Department of Agriculture (USDA) Foods activity.

As stated in the Assignment of USDA Donated Food agreement, the lead district for each private co-op is responsible for the ordering, receiving, storing, and distribution of all USDA Foods on behalf of the school food authorities (SFAs).

According to USDA Food Distribution Policy Memorandum FD-067, USDA Foods requirements that apply to a single SFA also apply to a privately managed co-op of SFAs. Food Distribution Program (FDP) policies, such as policies regarding USDA Foods inventory at processors, apply to individual SFAs and to privately managed co-ops.

The USDA requires the FDP to oversee USDA Foods inventory with processors. In order for the FDP to effectively monitor USDA Foods inventory with processors, processors must report USDA Foods activity occurring within a privately managed co-op as a single entity to the FDP. For example, on Monthly Performance Reports, processors must report all activity and inventory involving a privately managed co-op’s SFAs in one account identified with the privately managed co-op’s name.

If you have any questions regarding this subject, please contact Jeanette Lund, Processing Consultant, by phone at 916-324-6150 or by e-mail at jlund@cde.ca.gov.