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Food Distribution


USDA commodities, at the discretion of the vendor, may have a commercial label which means USDA commodities are no longer distinguishable and easily recognizable from purchased product.

  1. Food Transfers Schools are no longer required to receive permission/ transfer number(s) from NCDA & CS Food Distribution to transfer USDA foods to another school system. However, a transfer form and identifying number is available if documentation is needed.
  2. Food Losses A commodity loss will be treated as a purchased food loss. It is no longer a requirement to report USDA commodity food losses to NCDA & CS Food Distribution Division. (Special Note: As always, USDA Federal Regulations require USDA commodity losses with a value totaling $2500 or more be reported to USDA. In the event this occurs, please notify your NCDA&CS Field Representative.)
  3. Food Accountability It is no longer a requirement to record USDA commodities on a daily production record or to maintain a perpetual inventory.

1. USDA commodities may be co-mingled with purchased foods. It is no longer a requirement to store USDA commodities separately.

2. A monthly, physical inventory of all food (including USDA commodities and purchased product) in inventory is still required.

3. A June 30th year-end inventory is no longer required.


1. A commodity loss will be treated as a purchased food loss.

2. Commodities can be used in disaster feeding. The number of meals served and the dollar value of foods used in the shelter that are like commodity items must be reported to NCDA&CS Food Distribution Division (Butner office).

3. It is no longer a requirement to record USDA commodities on a daily production record.

4. A single audit concerning usage of USDA commodities is no longer required.

5. A June 30th year-end inventory is no longer required.

6. If a school system chooses to continue to store USDA commodities separately and record them on a daily production record, NCDA&CS Field Representatives will track food when conducting an administrative review.

7. Agencies that use a commercial warehouse can co-mingle USDA commodities with purchased foods.

8. NCDA&CS Food Distribution Field Representatives will continue to review schools. If a schools system is co-mingling USDA commodities with purchased foods, USDA commodities will not be tracked in your system. In cases where field reps find commodities that are out-of-date, or if the product's shelf life has expired, it will be recommended that those foods be disposed of properly. A letter of corrective action will be required (addressed to the Butner office), explaining the situation and what measures will be taken to solve the problem and prevent it from occurring again.

9. NCDA&CS Food Distribution Division highly recommends that schools write the received date, in the event there is no pack date, on all USDA commodities to help with first in, first out.

10. A monthly, physical inventory will still be required for all foods (USDA commodities and purchased food).

NCDA&CS Food Distribution Division, Gary Gay, Director
Mailing Address: P. O. Box 659, Butner, North Carolina 27509-0659
Physical Address: 2582 W. Lyon Station Road, Creedmoor, North Carolina 27522
Phone: (919) 575-4490 FAX: (919) 575-4143

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