[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR250.16]



[Page 464-465]

 

                          TITLE 7--AGRICULTURE

 

    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 250_DONATION OF FOODS FOR USE IN THE UNITED STATES, ITS TERRITORIES 

AND POSSESSIONS AND AREAS UNDER ITS JURISDICTION--Table of Contents

 

                 Subpart B_General Operating Provisions

 

Sec. 250.16  Maintenance of records.



    (a) General requirements. (1) Accurate and complete records shall be 

maintained with respect to the receipt, distribution/use and inventory 

of donated foods including:

    (i) End products processed from donated foods and

    (ii) The determination made as to liability for any improper 

distribution, use of, loss of, or damage to, such foods and the results 

obtained from the pursuit of claims by the distributing agency.



Such records shall also be maintained with respect to the receipt and 

disbursement of funds arising from the operation of the distribution 

program, including the determination as to the amount of payments to be 

made by any processor, upon termination of processing contracts.

    (2) Distributing agencies shall require all subdistributing agencies 

to maintain accurate and complete records with respect to the receipt, 

distribution/disposal, and inventory of donated foods, including end 

products processed from donated foods. Subdistributing agencies and 

recipient agencies must document any funds that arise from the operation 

of the distribution program, including refunds made to recipient 

agencies by a processor in accordance with Sec. 250.30(k). Further, 

these documents should allow



[[Page 465]]



an independent determination of the specific accounts that benefit from 

these funds.

    (3) Unless a distributing agency maintains an offer-and-acceptance 

system in accordance with Sec. 250.48(e), the distributing agency shall 

maintain accurate and complete records with respect to amounts and value 

of commodities refused by school food authorities. School food 

authorities shall also be required to maintain such records of refusals.

    (4) Each processor, food service management company, warehouse, or 

other entity which contracts with a distributing agency, subdistributing 

agency or recipient agency shall be required to keep accurate and 

complete records with respect to the receipt, distribution/disposal, 

storage and inventory of such foods similar to those required of 

distributing agencies under this paragraph. Where donated foods have 

been commingled with commercial foods, the processor shall maintain 

records which permit an accurate determination of the donated-food 

inventory. The processor shall also be required to keep formula, 

recipes, daily or batch production records, loadout sheets, bills of 

lading, and other processing and shipping records to substantiate the 

use made of such foods and their subsequent redelivery, in whatever 

form, to any distributing agency, subdistributing agency or recipient 

agency. Processors must maintain records which will permit a 

determination regarding compliance with the contracting provisions 

required by Sec. 250.30(f) (3) and (4) as well as maintain records used 

as the basis for compiling the processor performance reports required by 

Sec. 250.30(m).

    (5) All recipient agencies shall be required to keep accurate and 

complete records showing the data and method used to determine the 

number of eligible persons served by that agency.

    (6) Failure by a distributing agency, subdistributing agency, 

recipient agency, processor, food service management company, warehouse 

or other entity to maintain records required by this Section shall be 

considered prima facie evidence of improper distribution or loss of 

donated foods and the agency, processor or entity shall be subject to 

the provisions of Sec. 250.13(e).

    (b) Length of maintenance. All records required by this Section 

shall be retained for a period of three years from the close of the 

fiscal year to which they pertain. However, in instances when claims 

action and/or audit findings have not been resolved, the records shall 

be retained as long as required for the resolution of such action or 

findings.



[53 FR 20426, June 3, 1988, as amended at 67 FR 65015, Oct. 23, 2002]