MANAGING PROCESSING INVENTORY - SquareMeals.org · Elizabeth Gonzales . Commodity Operations...

Elizabeth Gonzales Commodity Operations Director

Texas Department of Agriculture

TASN – June 2015 Grapevine, Texas

MANAGING PROCESSING INVENTORY

Who’s In Charge?

•Food the children aren’t eating

•Vulnerable to losses

•Liability for the processor

•Un-utilized asset/$ for the district

Why is Excess Inventory Bad?

USDA Guidance

Policy Memo FD-064 “Management of Donated Food Inventories at Processors”

• Donated foods must be requested and distributed only in quantities that can be consumed without waste during the school year

• No more than six-month supply without written justification from the processor

• SDA must work with SFAs and processors to ensure efficient ordering and processing of donated foods and timely sale of end products

• State Transfers to other districts at the same processor

• State Transfers to another processor

• State Transfers to another state

• Carry Over Sweeps

Inventory Reduction Options

TDA Responsibility • Commodity Processing:

• Monthly Performance Reports

• Monitor Tracking Systems

• Managing Transfer Requests

• Reviewing Annual Requests

• ANNUAL CARRY OVER SWEEPS

TDA Responsibility

•Regular USDA Foods

•Private Storage Inventory

•Guidance

National Sweep?

National Sweep Policy? Under Consideration

• Would be for gross excess inventories

with little or no usage

• Would take into account any special procurement circumstances that may have occurred to cause inventory spikes

• State would not be credited for the entitlement for inventory swept

Carole Erb School Business Operations Director, JTM

MANAGING PROCESSING INVENTORY

Who’s In Charge?

We’re all in this together!

Processor

Recipient Agency

Co-op Distributor

Broker

State

Divert What You Need

• Reviewing history is a great idea

• Diverting to fill the menu makes $ense

• Processors are not storage centers

• They are called to live by the “6 month rule”

• All inventory contributes to the cost of their Bond

Use What You Divert

• Monitoring your balances

• Plays an important role in helping the Processor manage rising costs.

• Working with your Distributor is critical.

• You want the Distributor to have available what you want. They are not mind readers.

• Menu changes?

• Keep in mind who else needs to know…

Next Steps: Preventing Excess Inventories

• Schools collaborate with Processors/Brokers to determine amounts to divert.

• Ensure school menus utilize diverted USDA Foods.

• Use delivery schedules in working with Distributors to keep product flowing through the system.

• Validate pass through values for commercial end products containing USDA Foods are received. WATCH your balances!

The Texas Department of Agriculture’s Food and Nutrition Division is funded by the U.S. Department of Agriculture, Food and Nutrition Service.

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, sex, disability, age, or reprisal or retaliation for prior civil rights activity in any program or activity conducted or funded by USDA.

Persons with disabilities who require alternative means of communication for program information (e.g. Braille, large print, audiotape, American Sign Language, etc.), should contact the Agency (State or local) where they applied for benefits. Individuals who are deaf, hard of hearing or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English.

To file a program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, (AD-3027) found online at: http://www.ascr.usda.gov/complaint_filing_cust.html, and at any USDA office, or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by:

(1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410;

(2) fax: (202) 690-7442; or

(3) email: program.intake@usda.gov.

This institution is an equal opportunity provider.