2.  Participating schools enter bulk USDA Foods pound commitments on annual survey.

3. Eligible Processors Pounds

4.  Final bulk USDA Foods pounds after adjustments are available mid-May.

5. Adjusted Pounds

6.  Participating schools verify all final pound commitments against deposits made by each processor into the processor’s inventory management system.

10.  Basic areas to monthly monitoring: ◦ Verify number of cases ordered against what was received. ◦ Verify fee invoiced to ensure accuracy. ◦ Verify USDA pounds per case and that draw down happened.

11.  Monitoring varies according to which value pass through method used.  Value Pass Through Method available: ◦ Fee-for-Service—Processor ◦ Fee-for-Service—Distributor ◦ Rebates/Refunds ◦ Net Off Invoice (NOI)

12.  Using invoice from processor: ◦ Verify that the number of cases received match school’s order. ◦ Verify that the price per case on the invoice matches the bid price obtained by school.

13. Case Quantity Product Code Case Price

14.  Using the processor’s inventory management system (may be an electronic monitoring system or manual monitoring system) : ◦ Verify number of cases received matches processor invoice. ◦ Verify amount of pound draw down per case matches Summary End Product Data Schedule (SEPDS) for each product. ◦ Verify that pounds were draw down in inventory management system.

15. Total Lbs Drawdown Total Cases K-12 Inventory System

16. Total Cases Total LBs Drawdown Product Code K-12 Inventory System

17. Product CodeDrawdown/case

18.  Using invoice from distributor: ◦ Verify that the number of cases received match school’s order. ◦ Verify that the price per case on the invoice matches the bid price obtained by school. The bid price includes the fee for service price plus distributor’s delivery fee. Ensure that the invoice does not include a separate delivery fee.

19. Total Cases Product Code Price/Case

20.  Using the processor’s inventory management system (may be an electronic monitoring system or manual monitoring system) : ◦ Verify number of cases received matches distributor invoice. ◦ Verify amount of pound draw down per case matches Summary End Product Data Schedule (SEPDS) for each product. ◦ Verify that pounds were draw down in inventory management system.

21. ProcessorLink Inventory System

22. Product Code Drawdown/case

23.  Using invoice from distributor: ◦ Verify that the number of cases received match school’s order. ◦ Verify that the price per case on the invoice matches the commercial bid price obtained by school. ◦ File a rebate with the processor.

24. Total Cases Product Code Price/Case

25.  Using the processor’s inventory management system (may be an electronic monitoring system or manual monitoring system) : ◦ Verify number of cases received matches distributor invoice. ◦ Verify amount of pound draw down per case matches rebate form for each product. ◦ Verify that pounds were draw down in inventory management system.

26. Product Code Rebate amount

27. Cheese Rebate/case Tomato Rebate/case

28. Rebate/case

29.  Ensure that rebate funds are received from processor.

30.  Using invoice from distributor: ◦ Verify that the number of cases received match school’s order. ◦ Verify that the price per case and the USDA Foods value on the invoice matches the bid price obtained by school. With NOI there are two line items on the distributor’s invoice:  The commercial bid price (including the distributor’s delivery fee).  Credit for the value of USDA Foods per case.

31. Price/case

32.  Using the processor’s inventory management system (may be an electronic monitoring system or manual monitoring system) : ◦ Verify number of cases received matches processor invoice. ◦ Verify amount of pound draw down per case matches Summary End Product Data Schedule (SEPDS) for each product. ◦ Verify that pounds were draw down in inventory management system.

33. Total Cases Total LBs Drawdown Total Discount K-12 Inventory System

34. Product Code Drawdown/caseDiscount/case

35.  Throughout the school year, participating schools continue to monitor monthly activity for each designated processor.

36. 1.Schools participating in direct diversion processing will enter bulk pound commitments to designated processors on the annual order survey. 2.After annual order survey closes, DPI balances statewide commitments into full truck loads. Adjustments are made by DPI in the online system. Final, revised pound commitments are available for schools to view after mid-May. 3.After July, schools should verify all final pound commitments against deposits made by each processor into the processor’s inventory management system. 4.Throughout the school year, schools must monitor monthly activity for each designated processor.

37.  If distributor will allow several orders, place all of your monthly direct diversion products on one order. School will then have one invoice per month for all direct diversion products, making verification easier.  Electronic inventory management systems: both companies (K-12 and ProcessorLink) offer training to schools on their own system.

38. In accordance with Federal Law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. To file a complaint of discrimination, write USDA, Director, Office of Adjudication, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410 or call toll free (866) 632-9992 (Voice). Individuals who are hearing impaired or have speech disabilities may contact USDA through the Federal Relay Service at (800) 877-8339; or (800) 845-6136 (Spanish). USDA is an equal opportunity provider and employer. 38